Document:

Exhibit 4.51

DATED 31 MARCH 2009

MARINDOU SHIPPING CORPORATION

(as borrower)

-and-

DnB NOR BANK ASA

(as lender)

-and-

SAFE BULKERS INC.

(as corporate guarantor)

-and-

PELEA SHIPPING LTD.

EFRAGEL SHIPPING CORPORATION

AVSTES SHIPPING CORPORATION

ENIAPROHI SHIPPING CORPORATION

ENIADEFHI SHIPPING CORPORATION

(as group guarantors)

SECOND SUPPLEMENTAL AGREEMENT TO

SECURED MULTI-CURRENCY REDUCING REVOLVING CREDIT FACILITY

AGREEMENT DATED 11 JANUARY 2008 AS AMENDED AND

SUPPLEMENTED BY A FIRST SUPPLEMENTAL AGREEMENT

DATED 22 MAY 2008

STEPHENSON HARWOOD

One, St. Paul’s Churchyard

London EC4M 8SH

Tel: +44 (0)20 7329 4422

Fax: +44 (0)20 7329 7100

Ref: F04.157

CONTENTS

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
1

	
Interpretation

	
2

	
 

	
 

	
 

	
2

	
Conditions

	
3

	
 

	
 

	
 

	
3

	
Additional
 Prepayments during the Waiver Period

	
5

	
 

	
 

	
 

	
4

	
Covenants

	
6

	
 

	
 

	
 

	
5

	
Representations
 and Warranties

	
7

	
 

	
 

	
 

	
6

	
Amendments
 to Original Facility Agreement and Corporate Guarantee

	
8

	
 

	
 

	
 

	
7

	
Confirmation
 and Undertaking

	
10

	
 

	
 

	
 

	
8

	
Notices, Law
 and Jurisdiction

	
11

	
 

	
 

	
 

	
9

	
Costs and
 Expenses

	
11

SECOND SUPPLEMENTAL AGREEMENT

Dated: 31 March 2009

BETWEEN:

	
 

	
 

	
(1)

	
MARINDOU SHIPPING CORPORATION, a company
 incorporated under the laws of the Republic of Liberia whose registered
 office is at 80 Broad Street, Monrovia, Liberia (the “Borrower”); and

	
 

	
 

	
(2)

	
SAFE BULKERS INC., a company incorporated
 according to the laws of the Republic of Marshall Islands whose registered
 office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
 Marshall Islands MH 96960, Republic of Marshall Islands (the “Corporate Guarantor”); and

	
 

	
 

	
(3)

	
PELEA SHIPPING LTD., EFRAGEL SHIPPING CORPORATION AVSTES SHIPPING
 CORPORATION, ENIAPROHI SHIPPING CORPORATION, and ENIADEFHI SHIPPING CORPORATION, each a
 company incorporated according to the laws of the Republic of Liberia whose
 registered office is at 80 Broad Street, Monrovia, Republic of Liberia
 (together, the “Group Guarantors”
 and each a “Group Guarantor” and
 together with the Corporate Guarantor, the “Guarantors”
 and each a “Guarantor”); and

	
 

	
 

	
(4)

	
DnB NOR BANK ASA, acting through its office
at 20 St. Dunstan’s Hill, London EC3R 8HY, England (in that capacity, the
“Lender”). 

SUPPLEMENTAL TO a
secured multi-currency reducing revolving credit facility agreement dated 11
January 2008 as amended and supplemented by a first supplemental agreement
dated 22 May 2008 each made between the Borrower and the Lender (together, the
“Original Facility Agreement” and
together with this Second Supplemental Agreement (hereinafter defined) as the
same may be further amended, supplemented and/or novated from time to time, the
“Facility Agreement”), on the
terms and subject to the conditions of which the Lender has agreed to advance
to the Borrower an aggregate amount not exceeding forty two million Dollars
($42,000,000) (the “Loan”) for the
purposes described therein.

WHEREAS:

	
 

	
 

	
(A)

	
The Corporate Guarantor has agreed to comply with the financial
 covenants in accordance with the terms and conditions as set out in clause
 6.10 of the Corporate Guarantee, including the Consolidated Group Leverage,
 Debt to EBITDA ratio and Net Worth, and the Borrower has agreed to procure
 that the Corporate Guarantor complies with such financial covenants pursuant
 to clause 13.2.22 of the Original Facility Agreement.

	
 

	
 

	
(B)

	
(i) The Corporate Guarantor is currently in breach of the financial
 covenants as set out in clause 6.10.1 and 6.10.3 of the Corporate Guarantee
 and (ii) the Borrower is currently in breach of clause 11.14 (Additional
 security) of the Original Facility Agreement, accordingly, an
 Event of Default has been triggered pursuant to Clause 14.1.2 of the Original
 Facility Agreement.

	
 

	
 

	
(C)

	
The Borrower and the Corporate Guarantor have requested that the
 Lender agree to waive the requirements in clauses 13.2.22(a) (Consolidated
 Group Leverage), 13.2.22(b) (Debt to EBITDA ratio) and 13.2.22(c) (Net
 Worth) of the Original Facility Agreement and clauses 6.10.1 (Consolidated
 Group Leverage), 6.10.2 (Debt to EBITDA ratio) and 6.10.3 (Net
 Worth) of the Corporate Guarantee respectively during the Waiver
 Period.

	
 

	
 

	
(D)

	
The Borrower has requested that the Lender agree to waive the
 requirements in clause 11.14 (Additional security) of the Original
 Facility Agreement from the Effective Date until the Next Rollover Date.

	
 

	
 

	
(E)

	
The Lender is willing to agree to all the foregoing subject to the
 terms and conditions set forth in this Second Supplemental Agreement,
 including, but not limited to, (i) the amendments to be made to the Original
 Facility Agreement and the Corporate Guarantee and (ii) the payment of any
 and all Additional Prepayments (as may be required during the Waiver Period)
 to be initially credited to the Cash Collateral

	
 

	
 

	
 

	
Account and subsequently applied in satisfaction of the Indebtedness
 on the relevant Additional Prepayment Application Date in accordance with the
 terms and conditions contained herein.

IT IS AGREED THAT:

	
 

	
 

	
 

	
 

	
 

	
1

	
Interpretation

	
 

	
 

	
 

	
 

	
 

	
 

	
1.1

	
In this
 Second Supplemental Agreement:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Additional Prepayments” means any
 prepayment made during the Waiver Period in the amount necessary in order to
 ensure that the market value of the Vessel shall be no less than the
 requisite percentage of the amount of the Loan (as stated in Clause 11.14 of
 the Facility Agreement) during the relevant time of the Waiver Period.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Additional Prepayment Application Date”
 means, in respect of the first Additional Prepayment to be made during the
 Waiver Period, on the Next Rollover Date and, in respect of all subsequent
 Additional Prepayments, on the last day of the next relevant Interest Period.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Cash Flow Budget” means the cash flow
 budget demonstrating that the Group has the necessary cash resources to meet
 its Newbuilding commitments (such cash flow budget to assume no more than
 fifteen million Dollars ($15,000,000) of bank financing in respect of any
 Newbuilding that does not have committed financing in place as at the date of
 providing such cash flow budget) while at all times maintaining a Minimum
 Cash Balance.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Effective Date” means the date on which
 the Lender confirms to the Borrower that all of the conditions referred to in
 Clause 2.1 have been satisfied, which confirmation the Lender shall be under
 no obligation to give if an Event of Default or a Default shall have
 occurred.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Group Charter” means any charter or other
 contract of employment in respect of a vessel of the Group.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Minimum Cash Balance” means in respect of
 the Group a cash amount of not less than twenty five million Dollars
 ($25,000,000).

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Newbuilding” means each newbuilding that
 has been, or will be, ordered or that is in the process of being constructed
 for any member of the Group during the Facility Period.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Next Rollover Date” means 14 July 2009.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Second Supplemental Agreement” means the
 agreement contained herein.

	
 

	
 

	
 

	
 

	
 

	
“Supplemental Signing Date” means the
 date, falling no later than 31 March 2009, on which this Second Supplemental
 Agreement has been duly executed by all parties hereto.

2

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Waiver Period” the period commencing on
 the Supplemental Signing Date and expiring on 31 March 2010 (inclusive).

	
 

	
 

	
 

	
 

	
 

	
 

	
1.2

	
In this
Second Supplemental Agreement “Security Parties” means all parties to this
Second Supplemental Agreement other than the Lender. 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3

	
Unless
 otherwise defined, all words and expressions defined in the Original Facility
 Agreement shall have the same meaning when used in this Second Supplemental
 Agreement unless the context otherwise requires, and clause 1.2 of the
 Original Facility Agreement shall apply to the interpretation of this Second
 Supplemental Agreement as if it was set out in full.

	
 

	
 

	
 

	
 

	
 

	
2

	
Conditions

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1

	
As
 conditions for the agreement of the Lender to the requests specified in
 Recitals (C) and (D) above and for the effectiveness of Clause 6, the Borrowers
 shall deliver or cause to be delivered to or to the order of the Lender the
 following documents and evidence:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.1

	
Officer’s certificates

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
A
 certificate of a duly authorised officer of each Security Party confirming
 that none of the documents delivered to the Lender pursuant to Schedule 1
 Part I, 1(a), (b), (c) and (e) of the Original Facility Agreement have been
 amended, modified or revoked in any way since the date of their delivery to
 the Lender; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
A certificate
 of a duly authorised officer of each Security Party certifying that each copy
 document relating to it specified in this Clause 2.1.2 is correct, complete
 and in full force and effect as at a date no earlier than the date of this
 Second Supplemental Agreement and setting out the names of the directors,
 officers and, other than in respect of the Corporate Guarantor, the names of
 the shareholders of that Security Party and the proportion of shares held by
 each shareholder;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.2

	
Board and Shareholders Resolutions the
 original resolution of the directors and the shareholders of each Security
 Party (other than a resolution of the shareholders in respect of the
 Corporate Guarantor) (together, where appropriate, with signed waivers of
 notice of any directors’ or shareholders’ meetings) approving, and
 authorising or ratifying the execution of, this Second Supplemental Agreement
 and any document to be executed by that Security Party pursuant to this
 Second Supplemental Agreement;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.3

	
Powers of attorney A notarially attested and
 legalised (as applicable) power of attorney of each of the Security Parties
 under which this Second Supplemental Agreement and any documents required
 pursuant to it are to be executed by that Security Party;

3

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.4

	
Certificates of goodstanding A certificate
 of good standing in respect of each Security Party;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.5

	
Second Supplemental Agreement The Second
 Supplemental Agreement duly executed by all parties thereto, together with
 all other documents required by any of them;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.6

	
Additional Prepayment Evidence to the
 absolute satisfaction of the Lender that the amount of the Additional
 Prepayment (such amount to be calculated utilising the valuation obtained in
 December 2008 in accordance with Clause 2.1.7 and mutually agreed to between
 the Borrower and the Lender) has been transferred by the Borrower to the Cash
 Collateral Account (reducing the requisite amount of the Additional
 Prepayment by any amount that has already been prepaid by the Borrower to the
 Lender);

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.7

	
Valuation The latest valuation of the market
 value of the Vessel which was provided by the Borrower to the Lender in
 December 2008 in accordance with clauses 11.11 and 11.12 of the Original
 Facility Agreement;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.8

	
Legal opinions Confirmation satisfactory to
 the Lender that all legal opinions required by the Lender will be given
 substantially in the form required by the Lender;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.9

	
Process agent Evidence that the process
 agent referred to in clause 22.5 of the Original Facility Agreement has
 accepted it appointment in respect of this Second Supplemental Agreement;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.10

	
Restructuring fee Evidence that the fee in
 the amount of fifteen thousand Dollars ($15,000) and any other costs and
 expenses due and payable pursuant to the Facility Agreement have been paid by
 the Supplemental Signing Date; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.11

	
Other authorisations a copy of any other
 consent, licence, approval, authorisation or other document, opinion or
 assurance which the Agent considers to be necessary or desirable (if it has
 notified the relevant Security Party accordingly) in connection with the
 entry into and performance of the transactions contemplated by this Second
 Supplemental Agreement or for the validity and enforceability of this Second
 Supplemental Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
2.2

	
Conditions subsequent The Borrower shall
 deliver or cause to be delivered to or to the order of the Lender on, or as
 soon as practicable after the Supplemental Signing Date, the following
 documents and evidence:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.2.1

	
Legal opinions Such of the legal opinions
 specified in Clause 2.1.8 as have not already been provided to the Lender.

	
 

	
 

	
 

	
 

	
 

	
 

	
2.3

	
All
 documents and evidence delivered to the Lender pursuant to this Clause shall:

4

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.3.1

	
be in form
 and substance acceptable to the Lender;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.3.2

	
be
 accompanied, if required by the Lender, by translations into the English
 language, certified in a manner acceptable to the Lender; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2.3.3

	
if required
 by the Lender, be certified, notarised, legalised or attested in a manner
 acceptable to the Lender.

	
 

	
 

	
 

	
 

	
 

	
3

	
Additional Prepayments during the Waiver Period

	
 

	
 

	
 

	
 

	
 

	
 

	
3.1

	
Amount of the first Additional Prepayment In
 the event that the amount of the Additional Prepayment made in accordance
 with Clause 2.1.6 (such amount calculated utilising the valuation obtained in
 December 2008 pursuant to Clause 2.1.7) is less than the amount of the
 Additional Prepayment required (such amount calculated utilising the
 valuations obtained pursuant to Clause 3.8), the Borrower shall credit the
 amount of the shortfall to the Cash Collateral Account on demand.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.2

	
Release of surplus In the event that the
 amount of the Additional Prepayment made in accordance with Clause 2.1.6
 (such amount calculated utilising the valuation already obtained in December
 2008 pursuant to Clause 2.1.7) is greater than the amount of the Additional
 Prepayment required (such amount calculated utilising the valuations obtained
 pursuant to Clause 3.8), any amount remaining to the credit of the Cash
 Collateral Account following the making of any transfer required by Clause
 3.6 shall (unless a Default or an Event of Default shall have occurred and be
 continuing) be released to or to the order of the Borrower.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.3

	
Further Additional Prepayments Subsequent to
 the first Additional Prepayment to be made pursuant to Clause 2.1.7 and 3.1
 of this Second Supplemental Agreement, if, semi-annually thereafter during
 the Waiver Period, the market value of the Vessel (based on the relevant
 valuation obtained pursuant to Clause 3.8) is less than the requisite
 percentage of the amount of the Loan (as stated in Clause 11.14 of the
 Facility Agreement), the Borrower shall forthwith make an Additional
 Prepayment in the requisite amount in accordance to the provisions of Clause
 11.14 of the Facility Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.4

	
No reborrowing Any Additional Prepayments
 made during the Waiver Period may not be redrawn.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.5

	
Transfers to Cash Collateral Account In the
 event that an Additional Prepayment is made pursuant to the terms and
 conditions of this Second Supplemental Agreement on a day other than on the
 relevant Additional Prepayment Application Date, the Borrower shall forthwith
 credit the amount of the Additional Prepayment to the Cash Collateral
 Account.

5

	
 

	
 

	
 

	
 

	
 

	
 

	
3.6

	
Transfers from Cash Collateral Account On
 the relevant Additional Prepayment Application Date, the Borrower shall
 procure that there is transferred from the Cash Collateral Account to the
 Lender, the amount of the Additional Prepayment and irrevocably authorises
 the Lender to make those transfers.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.7

	
Application The Borrower irrevocably
 authorises the Lender to apply any Additional Prepayments in satisfaction of
 the next three (3) repayments/reductions of the Loan in the order of maturity
 and pro-rata against all remaining repayments/reductions (including the
 balloon) (all pro-rata calculations shall be rounded up to the next thousand)
 of the Loan each due in accordance with Clause 3.4 of the Facility Agreement,
 such application to be made until the amount of such Additional Prepayment
 has been fully depleted and shall reduce the Maximum Amount accordingly.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.8

	
Valuations during the Waiver Period All
 valuations during the Waiver Period (other than the valuation already
 obtained in December 2008 pursuant to Clause 2.1.7) shall be provided by an
 independent broker mutually acceptable to the Borrowers, the Corporate
 Guarantor and the Lender, who shall report directly to the Lender. All
 valuations pursuant to this Clause shall be made on the basis of a sale of
 the Vessel for prompt delivery for cash at arm’s length on normal commercial
 terms by a willing seller to a willing buyer and free of any existing charter
 or other contract of employment. The Borrower and the Lender agree to accept
 each valuation obtained pursuant to this Clause as conclusive evidence of the
 Vessel’s market value at the date of such valuation.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.9

	
Cost of valuation In addition to any
 valuations required pursuant to the terms and conditions of the Original Loan
 Agreement, the Borrower shall be liable for all costs and expenses incurred
 by the Lender in respect of obtaining two (2) additional valuations during
 the Waiver Period, one valuation prior to each Additional Prepayment
 Application Date (each such valuation to be dated within fifteen (15) days
 Additional Prepayment Application Date.

	
 

	
 

	
 

	
 

	
 

	
 

	
3.10

	
Blocked Cash Collateral Account
 Nothwithstanding any provision in the Facility Agreement, the Borrower will
 not be entitled to withdraw all or any part of the account balance of the
 Cash Collateral Account without the prior written consent of the Lender.

	
 

	
 

	
 

	
 

	
 

	
4

	
Covenants

	
 

	
 

	
 

	
 

	
 

	
 

	
4.1

	
Dividends and free cash If, during the
 Waiver Period, any Group Charter has been cancelled and/or terminated or any
 of its terms have been waived or if (in the opinion of the Lender in its
 absolute discretion) any of the Group Charters have been deteriorated (such
 event or circumstance to be notified to the Lender pursuant to the terms and
 conditions of Clause 4.4), the Borrower shall procure that the Corporate
 Guarantor does not and the Corporate Guarantor shall not be permitted

6

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
to issue any
 dividends or make any distributions to shareholders unless the Corporate
 Guarantor can demonstrate that the Group maintains a Cash Flow Budget to the
 absolute satisfaction of the Lender.

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2

	
Assessment of the Cash Flow Budget If,
 during the Waiver Period, any Group Charter has been cancelled and/or
 terminated or any of its terms have been waived or if (in the opinion of the
 Lender in its absolute discretion) any term of a Group Charter has been
 deteriorated, the Corporate Guarantor shall provide a Cash Flow Budget to be
 assessed utilising the Accounting Information to be issued by Corporate Guarantor
 in accordance with Clause 13.1.4 of the Loan Agreement and on any other
 information required by the Lender (which shall be provided by the Group on
 demand upon request of the Lender) in order to make such assessment.

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3

	
Further Group Charter cancellation and/or termination, waiver of
 terms or deterioration Once the Corporate Guarantor
 has demonstrated that the Group maintains a Cash Flow Budget to the absolute
 satisfaction of the Lender in accordance with Clause 4.1, then, if
 subsequently during the Waiver Period, any of the events or circumstances set
 out in Clause 4.1 reoccurs in respect of any Group Charter, then the Borrower
 shall procure that the Corporate Guarantor does not and the Corporate
 Guarantor shall not be permitted to continue issuing any dividends or making
 any distributions to shareholders unless the Corporate Guarantor can again
 demonstrate that the Group maintains a Cash Flow Budget (to be assessed in
 accordance with Clause 4.2) to the absolute satisfaction of the Lender.

	
 

	
 

	
 

	
 

	
 

	
 

	
4.4

	
Notification of Group Charter cancellation and/or termination, waiver
 of terms or deterioration If, during the Waiver
 Period, any of the events or circumstances set out in Clause 4.1 occurs in
 respect of any Group Charter, then the Borrower shall procure that the
 Corporate Guarantor gives and the Corporate Guarantor shall give notice to
 the Lender of such event or circumstance, at least two (2) Business Days
 prior to the provision by the Corporate Guarantor of the interim financial
 statements set out in clause 13.1.4 of the Loan Agreement.

	
 

	
 

	
 

	
 

	
 

	
5

	
Representations and Warranties

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Each of the
 representations and warranties contained in clause 12 of the Original
 Facility Agreement, clause 2 of the Corporate Guarantee and clause 2 of each
 Group Guarantee shall be deemed repeated by the Borrower, the Corporate
 Guarantor and the relevant Group Guarantor respectively on the Supplemental
 Signing Date and at the Effective Date, by reference to the facts and
 circumstances then pertaining, as if references to the Finance Documents
 included this Second Supplemental Agreement.

7

	
 

	
 

	
 

	
 

	
 

	
6

	
Amendments to Original Facility Agreement and Corporate Guarantee

	
 

	
 

	
 

	
 

	
 

	
 

	
With effect
 from the Effective Date:

	
 

	
 

	
 

	
 

	
 

	
 

	
6.1

	
the
 following additional definitions shall be inserted in clause 1.1 of the
 Original Facility Agreement and the alphabetical order of the remaining
 definitions in such clause shall be amended accordingly

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Eniadefhi” means Eniadfhi Shipping
 Corporation, a company incorporated according to the laws of the Republic of
 Liberia or such other company which shall be its successor in title.”

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Eniadfhi Guarantee’ means the guarantee
 of Eniadefhi referred to in Clause 11.1.10.”

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Eniaprohi” means Eniaprohi Shipping
 Corporation, a company incorporated according to the laws of the Republic of
 Liberia or such other company which shall be its successor in title.”

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Eniaprohi Guarantee’ means the guarantee
 of Eniaprohi referred to in Clause 11.1.9.”

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Next Rollover Date’ means 14 July 2009.”;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.2

	
The
 definitions of Group Guarantees set out in clause 1.1 of the Original
 Facility Agreement shall be deleted and replaced by the following new
 definition:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“‘Group Guarantees’ means the Pelea
Guarantee, the Efragel Guarantee, the Avstes Guarantee, the Eniaprohi
Guarantee and the Eniadefhi Guarantee and “Group Guarantee” means any one of
them.” 

	
 

	
 

	
 

	
 

	
 

	
 

	
6.3

	
The
 definitions of Group Guarantors set out in clause 1.1 of the Original
 Facility Agreement shall be deleted and replaced by the following new
 definition:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“‘Group Guarantors’ means Pelea, Efragel,
 Avstes, Eniaprohi and Eniadefhi and “Group
 Guarantor” means any one of them.”

	
 

	
 

	
 

	
 

	
 

	
 

	
6.4

	
the words
 “or any other amount acceptable to the Lender in its absolute discretion” in
 Clause 6.1 of the Original Facility Agreement shall be inserted after the
 words “one million Dollars ($1,000,000)” and the words “and any repaid amount
 shall be available for reborrowing.” shall be added at the end of Clause 6.1
 of the Original Facility Agreement;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.5

	
Clause 6.2
 of the Original Facility Agreement shall be deleted.

	
 

	
 

	
 

	
 

	
 

	
 

	
6.6

	
An
 additional clause 11.1.9 shall be added to the Original Facility Agreement
 which shall be read and construed as follows:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“11.1.9

	
a guarantee
 and indemnity from Eniaprohi dated 25 September 2008; and”

8

	
 

	
 

	
 

	
 

	
 

	
 

	
6.7

	
An
 additional clause 11.1.10 shall be added to the Original Facility Agreement
 which shall be read and construed as follows:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“11.1.10

	
a guarantee
 and indemnity from Eniadefhi dated 25 September 2008.”

	
 

	
 

	
 

	
 

	
 

	
 

	
6.8

	
clause 11.12
 of the Original Facility Agreement shall be deleted and replaced as follows:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Cost of valuation The Borrower shall be
 liable for all costs and expenses incurred by the Lender in obtaining all
 valuations to be provided pursuant to this Clause, such valuations to be
 provided by the Borrower (i) semi-annually throughout the Facility Period at
 a time which shall coincide with the provision of the Compliance Certificate
 in accordance with Clause 13.1.4 and 13.1.2 (the first such valuation to be
 provided within six (6) months after the Signing Date) and (ii) if requested
 by the Lender, semi-annually throughout the Facility Period commencing six
 (6) months after the Next Rollover Date, unless there is an Event of Default
 in which case the Borrower shall be liable for all costs and expenses
 incurred by the Lender in obtaining any number of valuations required by it
 pursuant to Clause 11.11 and shall reimburse the Lender in respect of all such
 costs and expenses on demand.”;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.9

	
the word
 “repay” in the first sentence of clause 11.14 (c) of the Original Facility
 Agreement shall be deleted and replaced by the word “prepay”;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.10

	
an
 additional provision shall be inserted at the end of clause 11.14 of the
 Original Facility Agreement which shall be read and construed as follows:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“Any amount
 prepaid pursuant to this Clause shall not be available for reborrowing.”;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.11

	
an
 additional clause 6.11 shall be incorporated into the Corporate Guarantee
 which shall be read and construed as follows:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
“6.11

	
In the event
 that the Borrower is not in compliance with the terms and conditions of
 clause 11.14 of the Facility Agreement and the amount of the shortfall
 thereunder is equal to or greater than one million Dollars ($1,000,000), the
 Guarantor shall make a prepayment in the requisite amount to ensure
 compliance to the absolute satisfaction of the Lender with such clause.
 Clauses 7.2, 7.3 and 7.4 of the Facility Agreement shall apply, mutatis
 mutandis, to any repayment made pursuant to this Clause as if references to
 the Borrower were references to the Guarantor.”;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.12

	
all
 references to “this Agreement” in the Original Facility Agreement shall be
 references to the Original Facility Agreement as amended and/or supplemented
 by this Second Supplemental

9

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Agreement
 and as further amended and/or supplemented and/or varied and/or novated from
 time to time;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.13

	
all
 references in all other Finance Documents to the Agreement (however it may be
 defined) shall be read and construed as the Original Facility Agreement as
 supplemented and amended by this Second Supplemental Agreement; and

	
 

	
 

	
 

	
 

	
 

	
 

	
6.14

	
all other
 terms and conditions of the Original Facility Agreement and the other Finance
 Documents shall remain unaltered and in full force and effect.

	
 

	
 

	
 

	
 

	
 

	
7

	
Confirmation and Undertaking

	
 

	
 

	
 

	
 

	
 

	
 

	
7.1

	
Each of the
 Security Parties confirms that all of its respective obligations under or
 pursuant to each of the Security Documents to which it is a party remain in
 full force and effect, despite the amendments to the Original Facility
 Agreement made in this Second Supplemental Agreement, as if all references in
 any of the Security Documents to the Original Facility Agreement (however
 described) were references to the Original Facility Agreement as amended and
 supplemented by this Second Supplemental Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
7.2

	
The
 definition of any term defined in any of the Finance Documents shall, to the
 extent necessary, be modified to reflect the amendments to the Original
 Facility Agreement made in this Second Supplemental Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
7.3

	
For the
 avoidance of doubt, each of the Security Parties confirms that, if the
 Borrower and/or the Corporate Guarantor do not comply with any provision of
 this Second Supplemental Agreement, such event or circumstance shall
 constitute an Event of Default under clause 14.1.2 of the Facility Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
7.4

	
With effect
 from 31 December 2008, the Lender waives all Events of Default that may have
 occurred between 31 December 2008 and 30 March 2009 (inclusive) under any of
 the Security Documents relating to:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7.4.1

	
any breach
 of clause 11.14 (Additional Security) of the Facility Agreement;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7.4.2

	
any breach
 of clause 13.2.22 (Financial Covenants) of the Facility Agreement; or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7.4.3

	
any breach
 of clause 6.10 of the Corporate Guarantee; or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
7.4.4

	
the payment
 of any dividend prior to the date of this First Supplemental Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
This Clause
 does not affect any right of the Lender in relation to (i) any Default or
 Event of Default that occurs from and including 31 March 2009 and is not
 covered by this First

10

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Supplemental
 Agreement and (ii) any Default or Event of Default which occurs after 31
 March 2010.

	
 

	
 

	
 

	
 

	
 

	
8

	
Notices, Law and Jurisdiction

	
 

	
 

	
 

	
 

	
 

	
 

	
The
 provisions of clauses 18 and 22 of the Original Facility Agreement shall
 apply to this Second Supplemental Agreement as if they were set out in full
 and as if references to the Original Facility Agreement were references to
 this Second Supplemental Agreement and references to the Borrower were
 references to the Security Parties.

	
 

	
 

	
 

	
 

	
 

	
9

	
Costs and Expenses

	
 

	
 

	
 

	
 

	
 

	
 

	
The Security
 Parties shall, on demand of the Lender and upon a full indemnity basis,
 reimburse the Lender for all costs and expenses (including legal fees and
 disbursements plus any value added tax payable thereon) incurred by the
 Lender in connection with the preparation, negotiation and execution of this
 Second Supplemental Agreement and any other documents required.

11

IN WITNESS of which
the parties to this Second Supplemental Agreement have executed this Second
Supplemental Agreement as a deed the day and year first before written.

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 MARINDOU SHIPPING CORPORATION

 (as borrower)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 SAFE BULKERS INC.

 (as corporate guarantor)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 PELEA SHIPPING LTD.

 (as group guarantor)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 EFRAGEL SHIPPING CORPORATION

 (as group guarantor)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 AVSTES SHIPPING CORPORATION

 (as group guarantor)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

12

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 ENIAPROHI SHIPPING CORPORATION

 (as group guarantor)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 ENIADEFHI SHIPPING CORPORATION

 (as group guarantor)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

 DnB NOR BANK ASA

 (as lender)

 acting by Konstantinos Adamopolous

 its duly authorized attorney-in-fact

 in the presence of:

 Christodoulous Vartzis

	
)

 )

 )

 )

 )

 )

 )

	

 

 
/s/ Konstantinos Adamopolous

 

 

 /s/ Christodoulous Vartzis

13Exhibit 4.54

	
 

	
 

	
DATED 

	
2008

	

SAFE BULKERS INC.

- to -

DnB NOR BANK ASA

	
 

	

	
 

	
GUARANTEE AND INDEMNITY

	
 

	

STEPHENSON HARWOOD

One, St Paul’s Churchyard

London EC4M 8SH

Tel: +44 020 7329 4422

Fax: +44 020 7329 7100

(Ref: 04.142)

CONTENTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
1

	
Definitions
 and Interpretation

	
 

	
2

	
 

	
2

	
Representations
 and Warranties

	
 

	
4

	
 

	
3

	
Guarantee
 and Indemnity

	
 

	
5

	
 

	
4

	
Preservation
 of Guarantor’s Liability

	
 

	
6

	
 

	
5

	
Preservation
 of Lender’s Rights

	
 

	
8

	
 

	
6

	
Undertakings

	
 

	
10

	
 

	
7

	
Payments

	
 

	
12

	
 

	
8

	
Currency

	
 

	
14

	
 

	
9

	
Set-Off

	
 

	
15

	
 

	
10

	
Application
 of Moneys

	
 

	
15

	
 

	
11

	
Partial
 Invalidity

	
 

	
16

	
 

	
12

	
Further
 Assurance

	
 

	
16

	
 

	
13

	
Miscellaneous

	
 

	
16

	
 

	
14

	
Notices

	
 

	
16

	
 

	
15

	
Counterparts

	
 

	
17

	
 

	
16

	
Law and
 Jurisdiction

	
 

	
17

GUARANTEE AND INDEMNITY

Dated:                    2008

BY:

	
 

	
 

	
(1)

	
SAFE BULKERS INC., a company incorporated according to the law of the Republic of
Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (the “Guarantor”) 

	
 

	
 

	
IN FAVOUR OF:

	
 

	
(2)

	
DnB NOR BANK ASA, acting through its office at 20 St.
 Dunstan’s Hill, London EC3R 8HY,
 England (the “Lender”).

	
 

	
 

	
WHEREAS:

	
 

	
 

	
(A)

	
The Lender
has agreed to lend to Efragel Shipping Corporation (the “Borrower”) an amount not exceeding forty two
million Dollars ($42,000,000) (the “Loan”)
on the terms and subject to the conditions set out in a secured
multi-currency reducing revolving credit facility agreement dated 11 January
2008 made between the Lender (as lender) and the Borrower (as borrower) (the “Original Facility Agreement”) as
amended and supplemented by a
supplemental agreement dated 22 May 2008 (the “Supplemental Agreement” and together with the Original
Facility Agreement as the same may be further amended, supplemented, replaced
and/or novated from time to time, the “Facility
Agreement”). 

	
 

	
 

	
(B)

	
The Borrower
 and the Lender have also entered into, an ISDA Master Agreement together with
 the Schedule thereto, each dated 11 January 2008, pursuant to which the
 Borrower may enter into one or more Transactions the terms and conditions of
 which shall be specified in a Confirmation sent or to be sent by the Lender
 to the Borrower.

	
 

	
 

	
(C)

	
The Borrower
 has informed the Lender that it wishes to enter into a series of transactions
 (the “Reorganisation”) as a result of which (a) the
 Borrower’s shares will cease to be wholly owned by its present shareholders;
 (b) the Guarantor will own 100% of the Borrower’s shares; and (c) the
 Borrower’s ownership structure will change following the 

	
 

	
 

	
 

	
initial
 public offering of the common stock of the Guarantor on the New York Stock
 Exchange (the “Offering”).

	
 

	
 

	
(D)

	
The Borrower
 has requested the Lender to proceed in amending, inter alia, clauses 13.2.17
 and 14.1.8 of the Original Facility Agreement, which would otherwise be
 breached upon the occurrence of the Reorganisation and the Offering, and to
 delete, inter alia, clause 13.2.14 and to amend, inter alia, clause 13.2.13
 of the Original Facility Agreement.

	
 

	
 

	
(E)

	
The Lender
 is willing to accede to such requests as listed in Recital D above and has
 agreed to amend the Original Facility Agreement and the Security Documents
 (as applicable) on the terms and conditions contained in the Supplemental
 Agreement.

	
 

	
 

	
(F)

	
Pursuant to
 the Facility Agreement, and as a condition precedent to the obligation of the
 Lender to make the Loan available to the Borrower, the Borrower has, amongst
 other things, agreed to procure that the Guarantor execute and deliver this
 Guarantee and Indemnity in favour of the Lender.

THIS DEED WITNESSES
as follows:

	
 

	
 

	
 

	
 

	
1

	
Definitions and Interpretation

	
 

	
 

	
 

	
 

	
 

	
1.1

	
In this
 Guarantee and Indemnity:

	
 

	
 

	
 

	
 

	
 

	
 

	
“Default Rate” means interest at the rate
 calculated in accordance with clause 8.8 of the Facility Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
“GAAP” means generally accepted accounting
 principles in the United States of America.

	
 

	
 

	
 

	
 

	
 

	
 

	
“Guarantor’s Liabilities” means all of the
 liabilities and obligations of the Guarantor to the Lender under or pursuant
 to this Guarantee and Indemnity, from time to time, whether in respect of
 principal, interest, costs or otherwise and whether present, future, actual
 or contingent.

	
 

	
 

	
 

	
 

	
 

	
 

	
“Indebtedness” means the aggregate from
 time to time of: the amount of the Loan outstanding; all accrued and unpaid
 interest on the Loan; and all other sums of any nature (together with all
 accrued and unpaid interest on any of those sums)

2

	
 

	
 

	
 

	
 

	
 

	
 

	
payable by the Borrower to
 the Lender under all or any of the Finance Documents.

	
 

	
 

	
 

	
 

	
 

	
1.2

	
Unless
 otherwise specified in this Guarantee and Indemnity, or unless the context
 otherwise requires, all words and expressions defined in the Facility
 Agreement shall have the same meaning when used in this Guarantee and
 Indemnity.

	
 

	
 

	
 

	
 

	
 

	
1.3

	
In this
 Guarantee and Indemnity:

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.1

	
words
 denoting the plural number include the singular and vice versa;

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.2

	
words
 denoting persons include corporations, partnerships, associations of persons
 (whether incorporated or not) or governmental or quasi-governmental bodies or
 authorities and vice versa;

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.3

	
references
 to Clauses are references to clauses of this Guarantee and Indemnity;

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.4

	
references
 to this Guarantee and Indemnity include the recitals to this Guarantee and
 Indemnity;

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.5

	
the headings
 and contents page(s) are for the purpose of reference only, have no legal or
 other significance, and shall be ignored in the interpretation of this
 Guarantee and Indemnity;

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.6

	
references
 to any document (including, without limitation, to any of the Finance
 Documents) are, unless the context otherwise requires, references to that
 document as amended, supplemented, novated or replaced from time to time;

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.7

	
references
 to statutes or provisions of statutes are references to those statutes, or
 those provisions, as from time to time amended, replaced or re-enacted;

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.8

	
references
 to the Lender include its successors, transferees and assignees; and

3

	
 

	
 

	
 

	
 

	
 

	
 

	
1.3.9

	
words and
 expressions defined in the Master Agreement, unless the context otherwise
 requires, have the same meaning.

	
 

	
 

	
 

	
 

	
2

	
Representations and Warranties

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor represents and warrants to the Lender at the date of this Guarantee
 and Indemnity and, save for Clauses 2.4, 2.9 and 2.13, (by reference to the
 facts and circumstances then pertaining) on each day throughout the Facility
 Period that:

	
 

	
 

	
 

	
 

	
 

	
2.1

	
all
 representations and warranties given by the Borrower in the Facility
 Agreement in respect of the Guarantor and/or this Guarantee and Indemnity are
 and will remain correct and none of them is or will become misleading; and

	
 

	
 

	
 

	
 

	
 

	
2.2

	
the
 Guarantor is a corporation, duly incorporated and validly existing under the
 law of its jurisdiction of incorporation and has the power to own its assets
 and to carry on its business as it is being conducted; and

	
 

	
 

	
 

	
 

	
 

	
2.3

	
the
 Guarantor has the power to enter into and perform this Guarantee and
 Indemnity and has taken all necessary action to authorise its entry into and
 performance of this Guarantee and Indemnity; and

	
 

	
 

	
 

	
 

	
 

	
2.4

	
the
 Guarantor is not insolvent or in liquidation or administration or subject to
 any other formal or informal insolvency procedure, and no receiver,
 administrative receiver, administrator, liquidator, trustee or analogous
 officer has been appointed in respect of the Guarantor or all or any part of
 its assets; and

	
 

	
 

	
 

	
 

	
 

	
2.5

	
this
 Guarantee and Indemnity constitutes legal, valid, binding and enforceable obligations of the Guarantor; and

	
 

	
 

	
 

	
 

	
 

	
2.6

	
all
 consents, licences, approvals and authorisations of, or registrations with or
 declarations to, any governmental authority, bureau or agency which may be
 required in connection with the entry into, performance, validity or
 enforceability of this Guarantee and Indemnity have been obtained or made and
 remain in full force and effect and the Guarantor is not aware of any event
 or circumstance which could reasonably be expected adversely to affect the
 right of the Guarantor to hold and/or obtain renewal of any such consents,
 licences, approvals or authorisations; and

4

	
 

	
 

	
 

	
 

	
 

	
2.7

	
no litigation,
 arbitration or administrative proceeding of or before any court, arbitral
 body or agency which if adversely determined, might reasonably be expected to
 have a material adverse effect on the business or financial condition of the Guarantor have (to the best of the
 Guarantor’s knowledge and belief) been started or threatened against the
 Guarantor; and

	
 

	
 

	
 

	
 

	
 

	
2.8

	
the entry
 into and performance of this Guarantee and Indemnity will not conflict with
 the constitutional documents of the Guarantor or any law or regulation or
 document applicable to, or binding on, the Guarantor or any of its assets;
 and

	
 

	
 

	
 

	
 

	
 

	
2.9

	
the
 Guarantor is not required to make any deduction or withholding from any
 payment which it may be obliged to make to the Lender under or pursuant to
 this Guarantee and Indemnity; and

	
 

	
 

	
 

	
 

	
 

	
2.10

	
it is not
 necessary to ensure the legality, validity, enforceability or admissibility
 in evidence of this Guarantee and Indemnity that it be filed, recorded or
 enrolled with any court or other authority in any country or that any stamp,
 registration or similar tax be paid on or in relation to this Guarantee and
 Indemnity; and

	
 

	
 

	
 

	
 

	
 

	
2.11

	
the
 Guarantor is not in breach of, or default under, any agreement of any sort
 binding on it or on all or any part of its assets; and

	
 

	
 

	
 

	
 

	
 

	
2.12

	
the
 Guarantor is not aware of any material facts or circumstances which have not
 been disclosed to the Lender and which might, if disclosed, have adversely
 affected the decision of a person considering whether or not to make loan facilities
 of the nature contemplated by the Facility Agreement available to the
 Borrower; and

	
 

	
 

	
 

	
 

	
 

	
2.13

	
the
 Guarantor has received a copy of the Facility Agreement and approves of, and
 agrees to, the terms and conditions of the Facility Agreement.

	
 

	
 

	
 

	
 

	
3

	
Guarantee and Indemnity

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor:

	
 

	
 

	
 

	
 

	
 

	
3.1

	
irrevocably
 and unconditionally guarantees the due and punctual payment of each and every
 part of the Indebtedness in accordance with the terms of the Finance 

5

	
 

	
 

	
 

	
 

	
 

	
 

	
Documents so
 that, if any of the Indebtedness is not paid when it is due and payable,
 whether on maturity or otherwise, the Guarantor will, immediately on demand,
 make such payment to the Lender in the manner specified by the Lender,
 together with interest on the amount demanded at the rate accruing on the
 same under the Facility Agreement from the date of demand until the date of
 payment, both before and after judgment; and

	
 

	
 

	
 

	
 

	
 

	
3.2

	
agrees, as a
 separate and independent obligation, that, if any of the Indebtedness is not
 recoverable from the Guarantor under Clause 3.1 for any reason, the Guarantor
 will be liable as a principal debtor by way of indemnity for the same amount
 as that for which the Guarantor would have been liable had that Indebtedness
 been recoverable, and agrees to discharge its liability under this Clause 3.2
 by making payment to the Lender immediately on demand together with interest
 on the amount demanded at the rate accruing on the same under the Facility
 Agreement from the date of demand until the date of payment, both before and
 after judgment.

	
 

	
 

	
 

	
 

	
4

	
Preservation of Guarantor’s Liability

	
 

	
 

	
 

	
 

	
 

	
4.1

	
This
 Guarantee and Indemnity is a continuing security for the full amount of the Indebtedness from time to time until the
 expiry of the Facility Period.

	
 

	
 

	
 

	
 

	
 

	
4.2

	
The Lender
 may without the Guarantor’s consent and without notice to the Guarantor and
 without in any way releasing or reducing the Guarantor’s Liabilities:

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2.1

	
amend, vary,
 novate, or replace any of the Finance Documents (other than this Guarantee
 and Indemnity); and/or

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2.2

	
agree with
 the Borrower to increase or reduce the amount of the Loan, or vary the terms
 and conditions for its repayment or prepayment (including, without
 limitation, the rate and/or method of calculation of interest payable on the
 Loan); and/or

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2.3

	
allow any
 time or other indulgence to any of the other Security Parties under or in
 connection with any of the Finance Documents; and/or

6

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2.4

	
renew, vary,
 release or refrain from enforcing any of the Finance Documents (other than
 this Guarantee and Indemnity); and/or

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2.5

	
compound
 with any of the other Security Parties; and/or

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2.6

	
enter into,
 renew, vary or terminate any other agreement or arrangement with any of the
 other Security Parties; and/or

	
 

	
 

	
 

	
 

	
 

	
 

	
4.2.7

	
do or omit
 or neglect to do anything which might, but for this provision, operate to
 release or reduce the liability of the Guarantor under this Guarantee and
 Indemnity.

	
 

	
 

	
 

	
 

	
 

	
4.3

	
The
 Guarantor’s Liabilities shall not be affected by:

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3.1

	
the absence
 of, or any defective, excessive or irregular exercise of, any of the powers
 of any of the other Security Parties; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3.2

	
any security
 given or payment made to the Lender by any of the other Security Parties being
 avoided or reduced under any law (whether English or foreign) relating to
 bankruptcy or insolvency or analogous circumstance in force from time to
 time; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3.3

	
any change
 in the constitution of the Guarantor or of any of the other Security Parties
 or of the Lender or the absorption of or amalgamation by the Lender in or
 with any other entity or the acquisition of all or any part of the assets or
 undertaking of the Lender by any other entity; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3.4

	
the
 liquidation, administration, receivership, bankruptcy or insolvency of the
 Guarantor or any of the other Security Parties; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3.5

	
any of the
 Finance Documents (other than this Guarantee and Indemnity) being defective,
 void or unenforceable, or the failure of any other person to provide the
 Lender with any security, guarantee or indemnity envisaged by the Facility
 Agreement; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3.6

	
any
 composition, assignment or arrangement being made by any of the other
 Security Parties with any of its creditors; nor

7

	
 

	
 

	
 

	
 

	
 

	
 

	
4.3.7

	
anything
 which would, but for this provision, have released or reduced the liability
 of the Guarantor to the Lender.

	
 

	
 

	
 

	
 

	
 

	
4.4

	
The Lender
 may continue the account(s) of the Borrower or open one or more new accounts
 for the Borrower notwithstanding any demand under this Guarantee and
 Indemnity, and the Guarantor’s liability at the date of demand shall not be
 released or affected by any subsequent payment into or out of any of the
 Borrower’s accounts with the Lender.

	
 

	
 

	
 

	
 

	
5

	
Preservation of Lender’s Rights

	
 

	
 

	
 

	
 

	
 

	
5.1

	
This
 Guarantee and Indemnity is in addition to any other security, guarantee or
 indemnity now or in the future held by the Lender in respect of the
 Indebtedness, whether from the Borrower, the Guarantor or any other person,
 and shall not merge with, prejudice or be prejudiced by, any such security,
 guarantee or indemnity or any contractual or legal right of the Lender.

	
 

	
 

	
 

	
 

	
 

	
5.2

	
Any release,
 settlement, discharge or arrangement relating to the Guarantor’s Liabilities
 shall be conditional on no payment, assurance or security received by the
 Lender in respect of the Indebtedness being avoided or reduced under any law
 (whether English or foreign) in force from time to time relating to
 bankruptcy, insolvency or any (in the opinion of the Lender) analogous
 circumstance, and, after any such avoidance or reduction, the Lender shall be
 entitled to exercise all of its rights, powers, discretions and remedies
 under or pursuant to this Guarantee and Indemnity and/or any other rights,
 powers, discretions or remedies which it would otherwise have been entitled
 to exercise, as if no release, settlement, discharge or arrangement had taken
 place.

	
 

	
 

	
 

	
 

	
 

	
5.3

	
Following
 the full payment of the Indebtedness, the Lender shall be entitled to retain
 this Guarantee and Indemnity and any security which it may hold for the
 Guarantor’s Liabilities until the Lender is satisfied in its discretion that
 it will not have to make any payment under any law referred to in Clause 5.2.

	
 

	
 

	
 

	
 

	
 

	
5.4

	
Until the
 expiry of the Facility Period the Guarantor shall not:

8

	
 

	
 

	
 

	
 

	
 

	
 

	
5.4.1

	
be entitled
 to participate in any sums received by the Lender in respect of any of the
 Indebtedness; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
5.4.2

	
be entitled
 to participate in any security held by the Lender in respect of any of the
 Indebtedness nor stand in the place of, or be subrogated for, the Lender in
 respect of any such security; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
5.4.3

	
take any
 step to enforce any claim against any of the other Security Parties (or their
 respective estates or effects), nor claim or exercise any right of set off or
 counterclaim against any of the other Security Parties, nor make any claim in
 the bankruptcy or liquidation of any of the other Security Parties, in
 respect of any sums paid by the Guarantor to the Lender or in respect of any sum
 which includes the proceeds of realisation of any security at any time held
 by the Lender in respect of any of the Guarantor’s Liabilities; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
5.4.4

	
take any
 steps to enforce any other claim which it may have against any of the other
 Security Parties without the prior written consent of the Lender, and then
 only on such terms and subject to such conditions as the Lender may impose.

	
 

	
 

	
 

	
 

	
 

	
5.5

	
The Lender
 may, but shall not be obliged to, resort for its own benefit to any other
 means of payment at any time and in any order it thinks fit without releasing
 or reducing the Guarantor’s Liabilities.

	
 

	
 

	
 

	
 

	
 

	
5.6

	
The Lender
 may enforce this Guarantee and Indemnity either before or after resorting to
 any other means of payment without entitling the Guarantor to any benefit
 from or share in any such other means of payment until the expiry of the
 Facility Period.

	
 

	
 

	
 

	
 

	
 

	
5.7

	
The
 Guarantor agrees that it is, and will throughout the Facility Period remain,
 a principal
 debtor in respect of the Guarantor’s Liabilities.

	
 

	
 

	
 

	
 

	
 

	
5.8

	
No failure
 to exercise, nor any delay in exercising, on the part of the Lender, any
 right or remedy under this Guarantee and Indemnity shall operate as a waiver,
 nor shall any single or partial exercise of any right or remedy prevent any further

9

	
 

	
 

	
 

	
 

	
 

	
 

	
or other
 exercise or the exercise of any other right or remedy. The rights and
 remedies provided in this Guarantee and Indemnity are cumulative and not
 exclusive of any rights or remedies provided by law.

	
 

	
 

	
 

	
 

	
6

	
Undertakings

	
 

	
 

	
 

	
 

	
 

	
6.1

	
The Guarantor
 shall pay to the Lender on demand on a full indemnity basis all documented
 costs and expenses incurred by the Lender in or about or incidental to the
 exercise by it of its rights under this Guarantee and Indemnity, together
 with interest at the Default Rate on the amount demanded from the date of
 demand until the date of payment, both before and after judgment, which
 interest shall be compounded with the amount demanded at the end of such
 periods as the Lender may reasonably select.

	
 

	
 

	
 

	
 

	
 

	
6.2

	
The Guarantor
 has not taken, and will not take without the prior written consent of the
 Lender (and then only on such terms and subject to such conditions as the
 Lender may impose), any security from any of the other Security Parties in
 connection with this Guarantee and Indemnity, and any security taken by the Guarantor notwithstanding this Clause shall
 be held by the Guarantor in trust for the Lender absolutely as a continuing
 security for the Guarantor’s Liabilities.

	
 

	
 

	
 

	
 

	
 

	
6.3

	
The
 Guarantor will observe and perform any and all covenants and undertakings in
 the Facility Agreement whose observance and performance by the Guarantor the
 Borrower has undertaken to procure.

	
 

	
 

	
 

	
 

	
 

	
6.4

	
The
 Guarantor will not without the Lender’s prior written consent:

	
 

	
 

	
 

	
 

	
 

	
 

	
6.4.1

	
create nor
 permit to arise any Encumbrance or other third party rights over any of its
 shares in the Borrower other than in favour of the Lender; nor

	
 

	
 

	
 

	
 

	
 

	
 

	
6.4.2

	
permit the
 Borrower to acquire any new vessels nor permit the Borrower to create or
 permit to arise or continue any Encumbrance or other third party right on or
 over all or any part of its present or future assets or undertakings.

10

	
 

	
 

	
 

	
 

	
 

	
6.5

	
The
 Guarantor shall supply to the Lender as soon as the same become available,
 but in any event within one hundred and eighty (180) days after the end of
 each of its financial years, its audited consolidated financial statements
 for that financial year, together with a Compliance Certificate, signed by
 two directors of the Guarantor, setting out (in reasonable detail)
 computations as to compliance with clause 13.2.22 of the Facility Agreement
 as at the date at which those financial statements were drawn up. Each set of
 financial statements shall be:-

	
 

	
 

	
 

	
 

	
 

	
 

	
6.5.1

	
prepared
 using GAAP; and

	
 

	
 

	
 

	
 

	
 

	
 

	
6.5.2

	
certified by
 a director of the Guarantor as fairly representing its financial condition as
 at the date at which those financial statements were drawn up; and

	
 

	
 

	
 

	
 

	
 

	
6.6

	
The
 Guarantor shall supply to the Lender as soon as the same become available,
 but in any event within ninety (90) days after the end of each quarter during
 each of the Guarantor’s financial years, its unaudited consolidated quarterly
 financial statements for that quarter, together with a Compliance Certificate
 to be provided on a semi-annual basis, signed by two directors of the
 Guarantor, setting out (in reasonable detail) computations as to compliance
 with clause 13.2.22 of Facility Agreement as at the date at which those
 financial statements were drawn up.

	
 

	
 

	
 

	
 

	
 

	
6.7

	
The
 Guarantor shall supply to the Lender:

	
 

	
 

	
 

	
 

	
 

	
 

	
6.7.1

	
all
 documents dispatched by the Guarantor to its shareholders (or any class of
 them) or its creditors generally at the same time as they are dispatched
 other than any documents that are subject to any confidentiality restrictions
 pursuant to the New York Stock Exchange regulations that may prohibit such
 dissemination;

	
 

	
 

	
 

	
 

	
 

	
 

	
6.7.2

	
promptly
 upon becoming aware of them, details of any litigation, arbitration or
 administrative proceedings which are current, threatened or pending against
 any Security Party, and which might, if adversely determined, have a
 materially adverse effect on the business, assets, financial condition or
 creditworthiness of that Security Party; and

11

	
 

	
 

	
 

	
 

	
 

	
 

	
6.7.3

	
promptly,
 such further information regarding the financial condition, business and
 operations of any Security Party as the Lender may reasonably request.

	
 

	
 

	
 

	
 

	
 

	
6.8

	
The
 Guarantor shall permit the inspection of its financial records and accounts
 from time to
 time by the Lender or its nominee.

	
 

	
 

	
 

	
 

	
 

	
6.9

	
The
 Guarantor shall remain directly or indirectly beneficially owned at a minimum
 of fifty one per cent (51%) by its Current Shareholders as of the date of the
 Side Letter.

	
 

	
 

	
 

	
 

	
 

	
6.10

	
The
 Guarantor shall on a consolidated basis comply with the following financial
 covenants to be assessed on a semi-annual basis based on the Accounting
 Information received by the Lender in accordance with clauses 13.1.1 and
 13.1.4 of the Facility Agreement:-

	
 

	
 

	
 

	
 

	
 

	
 

	
6.10.1

	
Consolidated Group Leverage The Consolidated Group Leverage shall be equal to or less than
seventy per cent (70%). 

	
 

	
 

	
 

	
 

	
 

	
 

	
6.10.2

	
Debt to EBITDA ratio The ratio of Debt to EBITDA on a trailing twelve (12) month’s
basis shall not at any time exceed 5,5:1. 

	
 

	
 

	
 

	
 

	
 

	
 

	
6.10.3

	
Net Worth The Net Worth shall not at any time be less than one hundred and seventy five
million Dollars ($175,000,000).” 

	
 

	
 

	
 

	
 

	
7

	
Payments

	
 

	
 

	
 

	
 

	
 

	
7.1

	
All amounts
 payable by the Guarantor under or pursuant to this Guarantee and Indemnity
 shall be paid to such accounts at such banks as the Lender may from time to
 time direct to the Guarantor in the relevant currency in same day funds for
 immediate value. Payment shall be deemed to have been received on the date on
 which the Lender receives authenticated advice of receipt, unless that advice
 is received by the Lender on a day other than a Business Day or at a time of
 day (whether on a Business Day or not) when the Lender in its discretion
 considers that it is impossible or impracticable to utilise the amount
 received for value that same day, in which event the payment in question
 shall be deemed to have been 

12

	
 

	
 

	
 

	
 

	
 

	
 

	
received on
 the Business Day next following the date of receipt of advice by the Lender.

	
 

	
 

	
 

	
 

	
 

	
7.2

	
All payments
 to be made by the Guarantor pursuant to this Guarantee and Indemnity shall,
 subject only to Clause 7.3, be made free and clear of and without deduction
 for or on account of any taxes or other deductions, withholdings,
 restrictions, conditions or counterclaims of any nature, and the Guarantor
 will not claim any equity in respect of any payment due from it to the Lender
 under or in relation to this Guarantee and Indemnity.

	
 

	
 

	
 

	
 

	
 

	
7.3

	
If at any
 time any law requires (or is interpreted to require) the Guarantor to make
 any deduction or withholding from any payment, or to change the rate or
 manner in which any required deduction or withholding is made, the Guarantor
 will promptly notify the Lender and, simultaneously with making that payment,
 will pay whatever additional amount (after taking into account any additional
 taxes on, or deductions or withholdings from, or restrictions or conditions
 on, that additional amount) is necessary to ensure that, after making the
 deduction or withholding, the Lender receives a net sum equal to the sum
 which it would have received had no deduction or withholding been made.

	
 

	
 

	
 

	
 

	
 

	
7.4

	
If at any
 time the Guarantor is required by law to make any deduction or withholding
 from any payment to be made by it pursuant to this Guarantee and Indemnity,
 the Guarantor will pay the amount required to be deducted or withheld to the
 relevant authority within the time allowed under the applicable law and will,
 no later than thirty days after making that payment, deliver to the Lender an
 original receipt issued by the relevant authority, or other evidence acceptable
 to the Lender, evidencing the payment to that authority of all amounts
 required to be deducted or withheld.

	
 

	
 

	
 

	
 

	
 

	
7.5

	
If the
 Guarantor pays any additional amount under Clause 7.3, and the Lender
 subsequently receives a refund or allowance from any tax authority which the
 Lender identifies as being referable to that increased amount so paid by the
 Guarantor, the Lender shall, as soon as reasonably practicable, pay to the
 Guarantor an amount equal to the amount of the refund or allowance received,
 if and to the extent that it may do so without prejudicing its right to
 retain that 

13

	
 

	
 

	
 

	
 

	
 

	
 

	
refund or
 allowance and without putting itself in any worse financial position than
 that in which it would have been had the relevant deduction or withholding
 not been required to have been made. Nothing in this Clause 7.5 shall be
 interpreted as imposing any obligation on the Lender to apply for any refund
 or allowance nor as restricting in any way the manner in which the Lender
 organises its tax affairs, nor as imposing on the Lender any obligation to
 disclose to the Guarantor any information regarding its tax affairs or tax
 computations.

	
 

	
 

	
 

	
 

	
 

	
7.6

	
Any
 certificate or statement signed by an authorised signatory of the Lender
 purporting to show the amount of the Indebtedness or of the Guarantor’s
 Liabilities (or any part of any of them) or any other amount referred to in
 any of the Finance Documents shall, save for manifest error or on any
 question of law, be conclusive evidence as against the Guarantor of that
 amount.

	
 

	
 

	
 

	
 

	
8

	
Currency

	
 

	
 

	
 

	
 

	
 

	
8.1

	
The
 Guarantor’s liability under this Guarantee and Indemnity is to discharge the
 Indebtedness in the currency in which it is expressed to be payable (the
 “Agreed Currency”).

	
 

	
 

	
 

	
 

	
 

	
8.2

	
If at any
 time the Lender receives (including by way of set off) any payment by or on
 behalf of the Guarantor in a currency other than the Agreed Currency, that
 payment shall take effect as a payment to the Lender of the amount in the
 Agreed Currency which the Lender is able to purchase (after deduction of any
 relevant costs)
 with the amount of the payment so received in accordance with its usual
 practice.

	
 

	
 

	
 

	
 

	
 

	
8.3

	
To the
 extent that any payment to the Lender (whether by the Guarantor or any other
 person and whether under any judgment or court order or otherwise) in a
 currency other than the Agreed Currency shall on actual conversion into the
 Agreed Currency fall short of the relevant amount of the Indebtedness
 expressed in the Agreed Currency, then the Guarantor as a separate and
 independent obligation will indemnify the Lender against the shortfall.

14

	
 

	
 

	
 

	
 

	
9

	
Set-Off

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor irrevocably authorises the Lender at any time to set off without
 notice any sums then due and payable by the Guarantor to the Lender under
 this Guarantee and Indemnity (irrespective of the branch or office, currency
 or place of payment) against any credit balance from time to time standing on
 any account of the Guarantor (whether current or otherwise, whether or not
 subject to notice and whether or not that credit balance is then due to the
 Guarantor) with any branch of the Lender in or towards satisfaction of the
 Guarantor’s Liabilities and, in the name of the Lender or the Guarantor, to
 do all acts (including, without limitation, purchasing or converting or
 exchanging any currency) which may be required to effect such set-off. Notice
 of such set-off shall be given to the Guarantor after such set-off has taken
 place.

	
 

	
 

	
 

	
 

	
10

	
Application of Moneys

	
 

	
 

	
 

	
 

	
 

	
10.1

	
All sums
 which the Lender receives under or in connection with this Guarantee and
 Indemnity shall, unless otherwise agreed by the Lender or otherwise provided
 in the Facility Agreement, be applied by the Lender in or towards
 satisfaction, or by way of retention on account, of the Guarantor’s
 Liabilities, in such manner as the Lender may in its discretion determine.

	
 

	
 

	
 

	
 

	
 

	
10.2

	
The Lender
 may place any money received by it under or in connection with this Guarantee
 and Indemnity to the credit of a suspense account on such terms and subject
 to such conditions as the Lender may in its discretion determine for so long
 as the Lender thinks fit without any obligation in the meantime to apply that
 money in or towards discharge of the Indebtedness, and, despite such payment,
 the Lender may
 claim against any of the other Security Parties or prove in the bankruptcy,
 liquidation or insolvency of any of the other Security Parties for the whole
 of the Indebtedness at the date of the Lender’s demand for payment pursuant
 to this Guarantee and Indemnity, together with all interest, commission,
 charges and expenses accruing subsequently.

15

	
 

	
 

	
 

	
 

	
11

	
Partial Invalidity

	
 

	
 

	
 

	
 

	
 

	
If, at any
 time, any provision of this Guarantee and Indemnity is or becomes illegal,
 invalid or unenforceable in any respect under any law of any jurisdiction, neither
 the legality, validity or enforceability of the remaining provisions nor the
 legality, validity or enforceability of such provision under the law of any
 other jurisdiction will in any way be affected or impaired.

	
 

	
 

	
 

	
 

	
12

	
Further Assurance

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor agrees that from time to time on the written request of the Lender
 it will immediately execute and deliver to the Lender all further documents
 which the Lender may require for the purpose of perfecting or protecting the
 security intended to be created by this Guarantee and Indemnity.

	
 

	
 

	
 

	
 

	
13

	
Miscellaneous

	
 

	
 

	
 

	
 

	
 

	
13.1

	
All the
 covenants and agreements of the Guarantor in this Guarantee and Indemnity
 shall bind the Guarantor and its successors and permitted assignees and shall
 inure to the benefit of the Lender and its successors, transferees and
 assignees.

	
 

	
 

	
 

	
 

	
 

	
13.2

	
The
 representations and warranties on the part of the Guarantor contained in this
 Guarantee and Indemnity shall survive the execution of this Guarantee and
 Indemnity.

	
 

	
 

	
 

	
 

	
 

	
13.3

	
No variation
 or amendment of this Guarantee and Indemnity shall be valid unless in writing
 and signed on behalf of the Guarantor and the Lender.

	
 

	
 

	
 

	
 

	
 

	
13.4

	
A person who
 is not a party to this Guarantee and Indemnity has no right under the
 Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the
 benefit of any term of this Guarantee and Indemnity.

	
 

	
 

	
 

	
 

	
14

	
Notices

	
 

	
 

	
 

	
 

	
 

	
The
 provisions of clause 18 of the Facility Agreement shall apply (mutatis
 mutandis) to this Guarantee and Indemnity as if it were set out in full with
 references to this Guarantee 

16

	
 

	
 

	
 

	
 

	
 

	
and
 Indemnity substituted for references to the Facility Agreement and with
 references to the Guarantor substituted for references to the Borrower.

	
 

	
 

	
15

	
Counterparts

	
 

	
 

	
 

	
 

	
 

	
This Guarantee
 and Indemnity may be executed in any number of counterparts, and this has the
 same effect as if the signatures on the counterparts were on a single copy of
 this Guarantee and Indemnity.

	
 

	
 

	
 

	
 

	
16

	
Law and Jurisdiction

	
 

	
 

	
 

	
 

	
 

	
16.1

	
This
 Guarantee and Indemnity shall in all respects be governed by and interpreted in accordance with English law.

	
 

	
 

	
 

	
 

	
 

	
16.2

	
For the
 exclusive benefit of the Lender, the Guarantor irrevocably agrees that the
 courts of England are to have jurisdiction to settle any disputes which may
 arise out of or in connection with this Guarantee and Indemnity and that any
 proceedings may be brought in those courts.

	
 

	
 

	
 

	
 

	
 

	
16.3

	
Nothing
 contained in this Clause shall limit the right of the Lender to commence any
 proceedings against the Guarantor in any other court of competent
 jurisdiction nor shall the commencement of any proceedings against the
 Guarantor in one or more jurisdictions preclude the commencement of any
 proceedings in any other jurisdiction, whether concurrently or not.

	
 

	
 

	
 

	
 

	
 

	
16.4

	
The
 Guarantor irrevocably waives any objection which it may now or in the future
 have to the laying of the venue of any proceedings in any court referred to
 in this Clause and any claim that those proceedings have been brought in an
 inconvenient or inappropriate forum, and irrevocably agrees that a judgment
 in any proceedings commenced in any such court shall be conclusive and
 binding on it and may be enforced in the courts of any other jurisdiction.

	
 

	
 

	
 

	
 

	
 

	
16.5

	
Without
 prejudice to any other mode of service allowed under any relevant law, the
 Guarantor:

17

	
 

	
 

	
 

	
 

	
 

	
 

	
16.5.1

	
irrevocably
 appoints Mr. Savvas Savvides, 24 Exeter Road, London N14 5JY, England
 (tel/fax: +44 208 361 2606) as its agent for service of process in relation
 to any proceedings before the English courts; and

	
 

	
 

	
 

	
 

	
 

	
 

	
16.5.2

	
agrees that
 failure by a process agent to notify the Guarantor of the process will not
 invalidate the proceedings concerned.

IN WITNESS of which
this Guarantee and Indemnity has been duly executed and delivered as a deed the
day and year first before written.

	
 

	
 

	
SIGNED and DELIVERED

	
)

	
as a DEED

	
)

	
by SAFE BULKERS INC.

	
)

	
acting by
 IOANNIS FOTEINOS

	
)

	
 

	
)

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
)

	
in the
 presence of: Nigel Bowen-Morris

	
)

	
 

	
 

	
 

	
 

	
STEPHENSON HARWOOD

	
 

	
ARISTON BUILDING

	
 

	
2 FILELLINON STR.& AKTI MIAOULI

	
 

	
PIRAEUS 185 36

	
 

	
VAT. NO. 9 9 8 7 1 1 1 5 6

	
 

	
TEL 210 42 95 160

	
 

18

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