Document:

Exhibit 4.37

F04.159

	
 

	
 

	
 

	
  

	
DATED 31 MARCH 2009  

	
  

	
  

	

	
  

PELEA SHIPPING LTD.

(as borrower)

-and-

DnB NOR BANK ASA

(as lender)

-and-

SAFE BULKERS INC.

(as corporate guarantor)

-and-

EFRAGEL SHIPPING CORPORATION

MARINDOU SHIPPING CORPORATION

AVSTES SHIPPING CORPORATION

ENIAPROHI SHIPPING CORPORATION

ENIADEFHI SHIPPING CORPORATION

(as group guarantors)

	
 

	

THIRD SUPPLEMENTAL AGREEMENT TO

SECURED MULTI-CURRENCY REDUCING REVOLVING CREDIT FACILITY

AGREEMENT DATED 12 JUNE 2007 AS AMENDED AND SUPPLEMENTED BY A

FIRST SUPPLEMENTAL AGREEMENT DATED 22 MAY 2008 AND AS FURTHER

AMENDED AND SUPPLEMENTED BY A SECOND SUPPLEMENTAL AGREEMENT

DATED 25 SEPTEMBER 2008

	
 

	

STEPHENSON HARWOOD

One, St. Paul’s Churchyard

London EC4M 8SH

Tel: +44 (0)20 7329 4422

Fax: +44 (0)20 7329 7100

Ref: F04.159

CONTENTS

Page

	
 

	
 

	
 

	
1

	
Interpretation

	
2

	
 

	
 

	
 

	
2

	
Conditions

	
3

	
 

	
 

	
 

	
3

	
Additional
 Prepayments during the Waiver Period

	
6

	
 

	
 

	
 

	
4

	
Covenants

	
7

	
 

	
 

	
 

	
5

	
Representations
 and Warranties

	
8

	
 

	
 

	
 

	
6

	
Amendments
 to Original Facility Agreement and Corporate Guarantee

	
9

	
 

	
 

	
 

	
7

	
Confirmation
 and Undertaking

	
11

	
 

	
 

	
 

	
8

	
Notices, Law
 and Jurisdiction

	
12

	
 

	
 

	
 

	
9

	
Costs and
 Expenses

	
12

Exhibit 4.37

THIRD SUPPLEMENTAL AGREEMENT

Dated: 31 March 2009

BETWEEN:

	
 

	
 

	
(1)

	
PELEA SHIPPING LTD., 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)

	
EFRAGEL SHIPPING CORPORATION, MARINDOU 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 17
June 2007 as amended and supplemented by a first supplemental agreement dated
22 May 2008 and as further amended and supplemented by a second supplemental
agreement dated 25 September 2008 each made between the Borrower and the Lender
(together, the “Original Facility Agreement”
and together with this Third 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 Third 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
 Third 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

2

	
 

	
 

	
 

	
 

	
 

	
 

	
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 15 June 2009.

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
“Third
Supplemental Agreement” means the agreement contained herein. 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
1.2

	
In this Third
 Supplemental Agreement “Security Parties” means all parties to this Third
 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 Third Supplemental
 Agreement unless the context otherwise requires, and clause 1.2 of the
 Original Facility Agreement shall apply to the interpretation of this Third
 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:

3

	
 

	
 

	
 

	
 

	
 

	
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 Third 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 Third Supplemental Agreement
 and any document to be executed by that Security Party pursuant to this Third
 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 Third Supplemental Agreement and any documents required pursuant
 to it are to be executed by that Security Party;

	
 

	
 

	
 

	
 

	
2.1.4

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

	
 

	
 

	
 

	
 

	
2.1.5

	
Third Supplemental Agreement The Third
 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 

4

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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 Third Supplemental Agreement;

	
 

	
 

	
 

	
 

	
 

	
 

	
2.1.10

	
Restructuring fee Evidence that the fee in
 the amount of twenty five thousand Dollars ($25,000) 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 Third
 Supplemental Agreement or for the validity and enforceability of this Third
 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:

	
 

	
 

	
 

	
 

	
 

	
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.

5

	
 

	
 

	
 

	
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 Third 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 Third 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.

	
 

	
 

	
 

	
 

	
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.

6

	
 

	
 

	
 

	
 

	
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 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.

7

	
 

	
 

	
 

	
 

	
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 Third Supplemental Agreement.

8

	
 

	
 

	
 

	
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 15 June 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 Efragel
 Guarantee, the Marindou 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 Efragel, Marindou,
 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.

9

	
 

	
 

	
 

	
 

	
 

	
 

	
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”

	
 

	
 

	
 

	
 

	
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) semiannually throughout the Facility Period at
 a time which shall coincide with the provision of the Compliance Certificate
 in accordance with Clause 13.1.14 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, semiannually 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 

10

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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 Third Supplemental 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 Third 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 Third 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 Third 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 Third 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 Third 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;

11

	
 

	
 

	
 

	
 

	
 

	
 

	
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 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 Third Supplemental Agreement as if they were set out in full
 and as if references to the Original Facility Agreement were references to
 this Third 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
 Third Supplemental Agreement and any other documents required.

12

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

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
PELEA SHIPPING LTD.

	
)

	
 

	
(as borrower)

	
)

	
 

	
acting by Konstantinos Adamopoulos

	
)

	
/s/
 Konstantinos Adamopoulos

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Christodoulos Vartzis

	
 

	
/s/
 Christodoulos Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
SAFE BULKERS INC.

	
)

	
 

	
(as
 corporate guarantor)

	
)

	
 

	
acting by Konstantinos Adamopoulos

	
)

	
/s/
 Konstantinos Adamopoulos

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Christodoulos Vartzis

	
 

	
/s/
 Christodoulos Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
EFRAGEL SHIPPING CORPORATION

	
)

	
 

	
(as a group
 guarantor)

	
)

	
 

	
acting by Konstantinos Adamopoulos

	
)

	
/s/
 Konstantinos Adamopoulos

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Christodoulos Vartzis

	
 

	
/s/
 Christodoulos Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
MARINDOU SHIPPING CORPORATION

	
)

	
 

	
(as a group
 guarantor)

	
)

	
 

	
acting by Konstantinos Adamopoulos

	
)

	
/s/
 Konstantinos Adamopoulos

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Christodoulos Vartzis

	
 

	
/s/ Christodoulos
 Vartzis

13

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
AVSTES SHIPPING CORPORATION

	
)

	
 

	
(as a group
 guarantor)

	
)

	
 

	
acting by Konstantinos Adamopoulos

	
)

	
/s/
 Konstantinos Adamopoulos

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Christodoulos Vartzis

	
 

	
/s/
 Christodoulos Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
ENIAPROHI SHIPPING CORPORATION

	
)

	
 

	
(as a group
 guarantor)

	
)

	
 

	
acting by Konstantinos Adamopoulos

	
)

	
/s/
 Konstantinos Adamopoulos

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Christodoulos Vartzis

	
 

	
/s/
 Christodoulos Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
ENIADEFHI SHIPPING CORPORATION

	
)

	
 

	
(as a group
 guarantor)

	
)

	
 

	
acting by Konstantinos Adamopoulos

	
)

	
/s/
 Konstantinos Adamopoulos

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Christodoulos Vartzis

	
 

	
/s/
 Christodoulos Vartzis

	
 

	
 

	
 

	
SIGNED and DELIVERED as a DEED by

	
)

	
 

	
DnB NOR BANK ASA

	
)

	
 

	
(as lender)

	
)

	
 

	
acting by Christodoulos Vartzis

	
)

	
/s/
 Christodoulos Vartzis

	
its duly
 authorised attorney-in-fact

	
)

	
 

	
in the
 presence of:

	
)

	
 

	
Konstantinos Karachaous

	
 

	
/s/
 Konstantinos Karachaous

14Exhibit 4.42

Private & Confidential

	
 

	
 

	
 

	
 

	
Dated as of 6 April 2009

	
 

	
 

	

	
 

SECOND SUPPLEMENTAL AGREEMENT

relating to a

loan of (originally) US$45,000,000

to

SOFFIVE SHIPPING CORPORATION

provided by

THE ROYAL BANK OF SCOTLAND PLC

Contents

	
 

	
 

	
 

	
 

	
Clause

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
1

	
 

	
Definitions

	
1

	
 

	
 

	
 

	
 

	
2

	
 

	
Agreement of the
 Bank

	
2

	
 

	
 

	
 

	
 

	
3

	
 

	
Amendments to
 Principal Agreement

	
3

	
 

	
 

	
 

	
 

	
4

	
 

	
Amendment to
 Principal Master Agreement

	
5

	
 

	
 

	
 

	
 

	
5

	
 

	
Representations
 and warranties

	
5

	
 

	
 

	
 

	
 

	
6

	
 

	
Conditions

	
6

	
 

	
 

	
 

	
 

	
7

	
 

	
Relevant Parties’
 Confirmation

	
6

	
 

	
 

	
 

	
 

	
8

	
 

	
Expenses

	
7

	
 

	
 

	
 

	
 

	
9

	
 

	
Miscellaneous and
 notices

	
7

	
 

	
 

	
 

	
 

	
10

	
 

	
Applicable law

	
8

	
 

	
 

	
 

	
 

	
Schedule 1
 Documents and evidence required as conditions precedent

	
9

	
 

	
 

	
 

	
THIS SECOND SUPPLEMENTAL AGREEMENT is dated as of 6 April 2009 and
 made BETWEEN:

	
 

	
 

	
 

	
(1)

	
SOFFIVE SHIPPING CORPORATION, a corporation incorporated in
 the Republic of Liberia with its registered office at 80 Broad Street,
 Monrovia, Liberia (the “Borrower”);

	
 

	
 

	
(2)

	
SAFETY MANAGEMENT OVERSEAS S.A., a corporation incorporated in
 the Republic of Panama with its registered office at Edificio Torre
 Universal, Piso 12, Avenida Federico Boyd, P.O. Box 8807, Panama, Republic of
 Panama (the “Manager”);

	
 

	
 

	
(3)

	
SAFE BULKERS, INC., a corporation incorporated in
 The Republic of the Marshall Islands with its registered office at Trust
 Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
 MH96960 (the “Guarantor”); and

	
 

	
 

	
(4)

	
THE ROYAL BANK OF SCOTLAND PLC of 5-10 Great Tower Street,
 London EC3P 3HX, England (the “Bank”).

	
 

	
 

	
WHEREAS:

	
 

	
(A)

	
this Agreement is
 supplemental to a loan agreement dated 19 November 2007 made between (1) the
 Borrower and (2) the Bank (the “Original Agreement”) as supplemented by a
 first supplemental agreement dated 23 May 2008 made between the Borrower, the
 Bank and the Manager (the “First Supplemental Agreement” and,
 together with the Original Agreement, the “Principal Agreement”)
 relating to a multi-currency loan of (originally) Forty five million Dollars
 ($45,000,000), advanced by the Bank to the Borrower, of which the principal
 amount outstanding at the date hereof is $43,200,000;

	
 

	
 

	
(B)

	
this Agreement is
 also supplemental to a 1992 Principal Master Agreement dated 19 November 2007
 (the “Principal
 Master Agreement”) made between the Borrower and the Bank; and

	
 

	
 

	
(C)

	
this Agreement
 sets out the terms and conditions upon which the Bank provides, at the
 request of the Borrower, its consent to

	
 

	
 

	
 

	
(a)

	
certain amendments
 to the terms and conditions applicable to the Loan and the Principal
 Agreement agreed to by the Borrower and the Bank; and

	
 

	
 

	
 

	
 

	
(b)

	
certain
 consequential changes to the Principal Agreement and the Principal Master
 Agreement required in connection with the above and agreed to by the Borrower
 and the Bank.

	
 

	
 

	
 

	
NOW IT IS HEREBY AGREED as follows:

	
 

	
 

	
 

	
      1

	
Definitions

	
 

	
 

	
 

	
   1.1

	
Defined
 expressions

	
 

	
 

	
 

	
 

	
Words and
 expressions defined in the Principal Agreement shall unless the context
 otherwise requires or unless otherwise defined herein, have the same meanings
 when used in this Agreement.

	
 

	
 

	
 

	
   1.2

	
Definitions

	
 

	
 

	
 

	
 

	
In this Agreement,
 unless the context otherwise requires:

	
 

	
 

	
 

	
 

	
“Borrower’s
 Account” means an interest bearing Dollar account of the Borrower
 opened with the Bank designated RBSPASOF-USDA and includes any other account
 designated in writing by the Bank to be a Borrower’s Account for the purposes
 of this Agreement;

	
 

	
 

	
 

	
 

	
“Borrower’s
 Account Pledge” means the first priority pledge executed or (as
 the context may require) to be executed by the Borrower in favour of the Bank
 in respect of the Borrower’s Account in such form as the Bank may in its
 absolute discretion require;

	
 

	
 

	
 

	
 

	
“Effective
 Date” means the date, no later than 27 April 2009, on which the
 Bank has received the documents and evidence specified in clause 6 and
 schedule 1 in a form and substance satisfactory to it;

1

	
 

	
 

	
 

	
“Government
 Entity” means and includes (whether having a distinct legal
 personality or not) any national or local government authority, board,
 commission, department, division, organ, instrumentality, court or agency and
 any association, organisation or institution of which any of the foregoing is
 a member or to whose jurisdiction any of the foregoing is subject or in whose
 activities any of the foregoing is a participant;

	
 

	
 

	
 

	
“Indebtedness”
 means any obligation for the payment or repayment of money, whether as
 principal or as surety and whether present or future, actual or contingent;

	
 

	
 

	
 

	
“Loan
 Agreement” means the Principal Agreement as amended by this
 Agreement; and

	
 

	
 

	
 

	
“Relevant
 Parties” means, together, the Borrower, the Manager and the
 Corporate Guarantor or, where the context so requires or permits, means any
 of them.

	
 

	
 

	
   1.3

	
Principal
 Agreement and Principal Master Agreement

	
 

	
 

	
 

	
References in the
 Principal Agreement and in the Principal Master Agreement to “this Agreement”
 shall, with effect from the Effective Date and unless the context otherwise
 requires, be references to the Principal Agreement and the Principal Master
 Agreement in either case as amended by this Agreement and words such as “herein”,
 “hereof, “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear
 in the Principal Agreement or, as the case may be, in the Principal Master
 Agreement, shall be construed accordingly.

	
 

	
 

	
   1.4

	
Headings

	
 

	
 

	
 

	
Clause headings
 and the table of contents are inserted for convenience of reference only and
 shall be ignored in the interpretation of this Agreement.

	
 

	
 

	
   1.5

	
Construction
 of certain terms

	
 

	
 

	
 

	
In this Agreement,
 unless the context otherwise requires:

	
 

	
 

	
1.5.1

	
references to
 clauses and schedules are to be construed as references to clauses of, and
 schedules to, this Agreement and references to this Agreement includes its
 schedules;

	
 

	
 

	
1.5.2

	
references to (or
 to any specified provision of) this Agreement or any other document shall be
 construed as references to this Agreement, that provision or that document as
 in force for the time being and as amended in accordance with terms thereof,
 or, as the case may be, with the agreement of the relevant parties;

	
 

	
 

	
1.5.3

	
references to a “regulation”
 include any present or future regulation, rule, directive, requirement,
 request or guideline (whether or not having the force of law) of any agency,
 authority, central bank or government department or any self-regulatory or
 other national or supra-national authority;

	
 

	
 

	
1.5.4

	
words importing
 the plural shall include the singular and vice versa;

	
 

	
 

	
1.5.5

	
references to a
 time of day are to London time;

	
 

	
 

	
1.5.6

	
references to a
 person shall be construed as references to an individual, firm, company, corporation,
 unincorporated body of persons or any Government Entity; 

	
 

	
 

	
1.5.7

	
references to a “guarantee”
 include references to an indemnity or other assurance against financial loss
 including, without limitation, an obligation to purchase assets or services
 as a consequence of a default by any other person to pay any Indebtedness and
 “guaranteed”
 shall be construed accordingly; and

	
 

	
 

	
1.5.8

	
references to any
 enactment shall be deemed to include references to such enactment as
 re-enacted, amended or extended.

	
 

	
 

	
      2

	
Agreement
 of the Bank

	
 

	
 

	
 

	
The Bank, relying
 upon the representations and warranties on the part of the Borrower contained
 in clause 5, agrees with the Borrower that, subject to the terms and
 conditions of this Agreement and with effect on the Effective Date, the Bank
 consents and agrees to the amendment of (a) the Principal Agreement on the
 terms set out in clause 3 and (b) the Principal Master Agreement on the terms
 set out in clause 4.

2

	
 

	
 

	
 

	
      3

	
Amendments
 to Principal Agreement

	
 

	
 

	
   3.1

	
Amendments
 to Principal Agreement

	
 

	
 

	
 

	
The Principal
 Agreement shall, with effect on and from the Effective Date, be deemed (and
 is hereby deemed) to have been amended as of 13 March 2009 in accordance with
 the following provisions (and the Principal Agreement (as so deemed to have
 been amended) will continue to be binding upon each of the parties hereto
 upon such terms as so deemed to have been amended):

	
 

	
 

	
3.1.1

	
by deleting in
 clause 1.2 of the Principal Agreement the definitions of “Margin”
 and “Supplemental
 Agreement”;

	
 

	
 

	
3.1.2

	
by inserting in
 clause 1.2 of the Principal Agreement the following new definitions of “Approved
 Charter”, “Borrower’s Account”, “Borrower’s
 Account Pledge”, “First Supplemental Agreement”, “Margin”,
 “Second
 Supplemental Agreement”, “Supplemental Agreements” and “Suspension
 Notice” in the correct alphabetical order:

	
 

	
 

	
 

	
““Approved
 Charter” means, at any relevant time, any charter or other
 contract of employment entered into by the Borrower in respect of the Ship,
 which:

	
 

	
 

	
 

	
(a)

	
is entered into
 with a charterer which, is at the time of execution thereof as well as at
 such relevant time, acceptable to the Bank in its sole discretion; and

	
 

	
 

	
 

	
 

	
(b)

	
has such other
 terms and conditions which, at the time of execution thereof as well as at
 such relevant time, are in all respects acceptable to the Bank in its sole
 discretion;

	
 

	
 

	
 

	
 

	
“Borrower’s
 Account” means an interest bearing Dollar account of the Borrower
 opened with the Bank designated RBSPASOF-USDA and includes any other account
 designated in writing by the Bank to be a Borrower’s Account for the purposes
 of this Agreement;

	
 

	
 

	
 

	
“Borrower’s
 Account Pledge” means the first priority pledge executed or (as
 the context may require) to be executed by the Borrower in favour of the Bank
 in respect of the Borrower’s Account in such form as the Bank may in its
 absolute discretion require;

	
 

	
 

	
 

	
“First
 Supplemental Agreement” means the agreement dated 23 May 2008 made
 between the Borrower, the Manager and the Bank supplemental to this
 Agreement;

	
 

	
 

	
 

	
“Margin”
 means:

	
 

	
 

	
(a)

	
subject to
 paragraph (b) below, one point two five per cent (1.25%) per annum;

	
 

	
 

	
 

	
 

	
(b)

	
if on the first
 day of an Interest Period (i) there is a credit balance in the Borrower’s
 Account which is a minimum amount of $1,000,000 and an integral multiple of
 $1,000,000 or any other amount agreed between the Borrower and the Bank,
 placed on deposit for a period equal to that Interest Period but in any case
 not less than three (3) months and (ii) no Suspension Notice has been given
 under clause 3.7 that remains effective on any day of such Interest Period,
 the Margin applicable for such Interest Period to a part of the Loan equal to
 such credit balance shall be one point one five per cent (1.15%) per annum
 and that applicable to the balance of the Loan shall be one point two five
 per cent (1.25%) per annum;

	
 

	
 

	
 

	
 

	
“Second
 Supplemental Agreement” means the agreement dated as of 6 April
 2009 made between the Borrower, the Manager, the Corporate Guarantor and the
 Bank supplemental to this Agreement;

	
 

	
 

	
 

	
“Supplemental
 Agreements” means, together, the First Supplemental Agreement and
 the Second Supplemental Agreement; and

	
 

	
 

	
 

	
“Suspension
Notice” has the meaning ascribed thereto in clause 3.7;”; 

	
 

	
 

	
3.1.3

	
by deleting in the
 definition of “Security Documents” in clause 1.2 of the Principal Agreement
 the words “Supplemental Agreement” and by inserting in their place the words
 “Supplemental Agreements, the Borrower’s Account Pledge”; and

3

	
 

	
 

	
 

	
3.1.4

	
by inserting at
 the end of the definition of “Security Value” in clause 1.2 of the
 Principal Agreement the words “or the Borrower’s Account”;

	
 

	
 

	
3.1.5

	
by inserting the
 following new clause 3.7:

	
 

	
 

	
 

	
“3.7
 Suspension of reduced Margin

	
 

	
 

	
 

	
If: 

	
 

	
 

	
 

	
 

	
 

	
3.7.1.

	
the result of any
 change in, or in the interpretation or application of, or the introduction
 of, any law or any regulation, request or requirement (whether or not having
 the force of law, but, if not having the force of law, with which the Bank
 or, as the case may be, its holding company habitually complies), is to
 change the capital adequacy treatment of the Borrower’s Account Pledge from
 that applicable on the date of this Agreement in a manner which the Bank
 considers detrimental for the Bank; or

	
 

	
 

	
 

	
 

	
3.7.2.

	
it is determined
 by a Government Entity or banking supervisory authority, that the capital
 adequacy treatment of the Borrower’s Account Pledge is not the one that the
 Bank was of the view it was on the date of this Agreement and such
 determination is in the Bank’s opinion detrimental for the Bank,

	
 

	
 

	
 

	
 

	
 

	
the Bank shall
 forthwith give notice (the “Suspension Notice”) to the Borrower that
 the reduced Margin to be made available to the Borrower under certain
 conditions in respect to a part of the Loan equal to the moneys standing to the
 credit of the Borrower’s Account at any relevant point of time, shall not be
 available to the Borrower under this Agreement from the date specified in the
 Suspension Notice until such time as the Bank notifies the Borrower that none
 of the circumstances specified in sub-clauses 3.7.1 or 3.7.2 above continues
 to exist, whereupon the reduced Margin shall be again available to the
 Borrower always on the terms provided in this Agreement.”;

	
 

	
 

	
 

	
3.1.6

	
by deleting in the
 fifth line of clause 9.2.2 of the Principal Agreement the words “without
 taking into account the benefit of any charterparty or other engagement
 concerning the Ship” and by inserting in their place the words “by taking
 into account the benefit or detriment of any Approved Charter Provided
 however that the benefit of such Approved Charter shall not be
 taken into account if a breach of a term of such Approved Charter has
 occurred allowing the charterer to terminate the Approved Charter and such
 breach is subsisting on the date of such valuation”;

	
 

	
 

	
3.1.7

	
by inserting in
 the second line of clause 15.3 after the words “to the credit of the Cash
 Collateral Account” the words “or the Borrower’s Account”; and

	
 

	
 

	
3.1.8

	
by inserting the
 following new clauses 15.5 and 15.6:

	
 

	
 

	
 

	
“15.5

	
Borrower’s Account:
 withdrawals

	
 

	
 

	
 

	
 

	
 

	
Unless the Bank
 otherwise agrees
 in writing, the Borrower shall not be entitled to withdraw any moneys from
 the Borrower’s Account at any time from 13 March 2009 and so long as any
 moneys are owing under the Security Documents save that, unless and until a
 Default shall occur and the Bank shall direct to the contrary, the Borrower
 may request that moneys are released from the Borrower’s Account subject
 always to the provisions of clause 9.2.7.

	
 

	
 

	
 

	
 

	
15.6

	
Charging of
 Borrower’s Account

	
 

	
 

	
 

	
 

	
 

	
The Borrower’s
 Account 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
 Borrower’s Account Pledge.”.

	
 

	
 

	
 

	
3.2

	
Continued
 force and effect

	
 

	
 

	
 

	
Save as amended by
 this Agreement, the provisions of the Principal Agreement and the other
 Security Documents shall continue in full force and effect and the Principal
 Agreement and this Agreement shall be read and construed as one instrument.

4

	
 

	
 

	
      4

	
Amendment
 to Principal Master Agreement

	
 

	
 

	
   4.1

	
Amendment
 to Principal Master Agreement

	
 

	
 

	
 

	
The Principal
 Master Agreement shall, with effect from the Effective Date, be deemed (and
 is hereby deemed) to have been amended as of 13 March 2009 (and the Principal
 Master Agreement (as so deemed to have been amended) will continue to be
 binding upon the Bank and the Borrower upon such terms as so deemed to have
 been amended) by inserting at the end of the definition of “Loan Facility” in
 Part 5, paragraph (e) of the Schedule to the Principal Master Agreement the
 words “as amended, supplemented and/or novated from time to time”.

	
 

	
 

	
   4.2

	
Continued
 force and effect

	
 

	
 

	
 

	
Save as amended by
 this Agreement the provisions of the Principal Master Agreement shall
 continue in full force and effect and the Principal Master Agreement and this
 Agreement shall be read and construed as one document.

	
 

	
 

	
      5

	
Representations
 and warranties

	
 

	
 

	
   5.1

	
Primary
 representations and warranties

	
 

	
 

	
 

	
The Borrower
 represents and warrants to the Bank that:

	
 

	
 

	
5.1.1

	
Existing
 representations and warranties

	
 

	
 

	
 

	
the
 representations and warranties set out in clause 8 of the Principal Agreement
 were true and correct on the date of the Principal Agreement and are true and
 correct, including to the extent that they may have been or shall be amended
 by this Agreement, as if made at the date of this Agreement with reference to
 the facts and circumstances existing at such date;

	
 

	
 

	
5.1.2

	
Corporate power

	
 

	
 

	
 

	
each of the
 Relevant Parties has power to execute, deliver and perform its obligations
 under this Agreement; all necessary corporate, shareholder and other action
 has been taken by each of the Relevant Parties to authorise Ithe execution,
 delivery and performance of this Agreement;

	
 

	
 

	
5.1.3

	
Binding
 obligations

	
 

	
 

	
 

	
this Agreement
 constitutes valid and legally binding obligations of each of the Relevant
 Parties enforceable in accordance with its terms;

	
 

	
 

	
5.1.4

	
No conflict with
 other obligations

	
 

	
 

	
 

	
the execution,
 delivery and performance of this Agreement by each of the Relevant Parties
 will not (i) contravene any existing law, statute, rule or regulation or any
 judgment, decree or permit to which any of the Relevant Parties is subject,
 (ii) conflict with, or result in any breach of any of the terms of, or
 constitute a default under, any agreement or other instrument to which any of
 the Relevant Parties is a party or is subject or by which any of the Relevant
 Parties or any of its property is bound or (iii) contravene or conflict with
 any provision of the constitutional documents of any of the Relevant Parties
 or (iv) result in the creation or imposition of or oblige any of the Relevant
 Parties to create any Encumbrance on any of their undertakings, assets,
 rights or revenues of any of the Relevant Parties;

	
 

	
 

	
5.1.5

	
No filings
 required

	
 

	
 

	
 

	
it is not
 necessary to ensure the legality, validity, enforceability or admissibility
 in evidence of this Agreement that it or any other instrument be notarised,
 filed, recorded, registered or enrolled in any court, public office or
 elsewhere in any Relevant Jurisdiction or that any stamp, registration or
 similar tax or charge be paid in any Relevant Jurisdiction on or in relation
 to this Agreement and this Agreement is in proper form for its enforcement in
 the courts of the Relevant Jurisdiction;

5

	
 

	
 

	
5.1.6

	
Choice of law

	
 

	
 

	
 

	
the choice of
 English law to govern this Agreement and the submissions by the Relevant
 Parties to the non-exclusive jurisdiction of the English courts are valid and
 binding; and

	
 

	
 

	
5.1.7

	
Consents obtained

	
 

	
 

	
 

	
every consent,
 authorisation, licence or approval of, or registration or declaration to,
 governmental or public bodies or authorities or courts required by any of the
 Relevant Parties in connection with the execution, delivery, validity,
 enforceability or admissibility in evidence of this Agreement or the
 performance by each Relevant Party of its obligations under this Agreement
 has been obtained or made and is in full force and effect and there has been
 no default in the observance of any conditions or restrictions (if any)
 imposed in, or in connection with, any of the same.

	
 

	
 

	
   5.2

	
Repetition
 of representations and warranties

	
 

	
 

	
 

	
Each of the
 representations and warranties contained in clause 5.1 of this Agreement and
 clause 8 of the Principal Agreement (as amended by this Agreement) shall be
 deemed to be repeated by the Borrower on the Effective Date as if made with
 reference to the facts and circumstances existing on such day.

	
 

	
 

	
      6

	
Conditions

	
 

	
 

	
   6.1

	
Documents
 and evidence

	
 

	
 

	
 

	
The agreement of
 the Bank referred to in clause 2 shall be subject to the receipt by the
 Bank or its duly authorised representative of the documents and evidence
 specified in schedule 1 in form and substance satisfactory to the Bank.

	
 

	
 

	
   6.2

	
General
 conditions precedent

	
 

	
 

	
 

	
The agreement of
 the Bank referred to in clause 2 shall be further subject to:

	
 

	
 

	
6.2.1

	
the
 representations and warranties in clause 5 being true and correct on the
 Effective Date as if each was made with respect to the facts and
 circumstances existing at such time; and

	
 

	
 

	
6.2.2

	
no Default having
 occurred and continuing at the time of the Effective Date.

	
 

	
 

	
   6.3

	
Waiver
 of conditions precedent

	
 

	
 

	
 

	
The conditions
 specified in this clause 6 are inserted solely for the benefit of the Bank
 and may be waived by the Bank in whole or in part with or without conditions.

	
 

	
 

	
      7

	
Relevant
 Parties’ Confirmation

	
 

	
 

	
 

	
Each of the
 Relevant Parties acknowledges and agrees, for the avoidance of doubt, that:

	
 

	
 

	
   7.1

	
each of the Security Documents to which it is a party, and its
 obligations thereunder, shall remain in full force and effect notwithstanding
 the amendments made to the Principal Agreement and the Principal Master
 Agreement by this Agreement; and

	
 

	
 

	
   7.2

	
with effect from the Effective Date, references to “the Agreement” or
 “the Loan Agreement” in any of the other Security Documents to which it is a
 party shall henceforth be references to the Principal Agreement as amended by
 this Agreement and as from time to time hereafter amended and references to
 the “Master Swap Agreement” in any of the other Security Documents shall
 henceforth be references to the Principal Master Agreement as amended by this
 Agreement and as from time to time hereafter amended and shall also be deemed
 to include the obligations of the Borrower hereunder.

6

	
 

	
 

	
 

	
      8

	
Expenses

	
 

	
 

	
   8.1

	
Expenses

	
 

	
 

	
 

	
The Borrower
 agrees to pay to the Bank on a full indemnity basis on demand all expenses
 (including legal and out-of-pocket expenses) incurred by the Bank:

	
 

	
 

	
8.1.1

	
in connection with
 the negotiation, preparation, execution and, where relevant, registration of
 this Agreement and of any amendment or extension of, or the granting of any
 waiver or consent under, this Agreement;

	
 

	
 

	
8.1.2

	
in contemplation
 of, or otherwise in connection with, the enforcement of, or preservation of
 any rights under this Agreement or otherwise in respect of the monies owing
 and obligations incurred under this Agreement,

	
 

	
 

	
 

	
together with
 interest at the rate referred to in clause 3.4 of the Principal Agreement
 from the date on which such expenses were incurred to the date of payment (as
 well after as before judgement).

	
 

	
 

	
   8.2

	
Value
 Added Tax

	
 

	
 

	
 

	
All expenses
 payable pursuant to this clause 8 shall be paid together with value added tax
 or any similar tax (if any) properly chargeable thereon.

	
 

	
 

	
   8.3

	
Stamp
 and other duties

	
 

	
 

	
 

	
The Borrower
 agrees to pay to the Bank on demand all stamp, documentary, registration or
 other like duties or taxes (including any duties or taxes payable by the
 Bank) imposed on or in connection with this Agreement and shall indemnify the
 Bank against any liability arising by reason of any delay or omission by the
 Borrower to pay such duties or taxes.

	
 

	
 

	
      9

	
Miscellaneous
 and notices

	
 

	
 

	
   9.1

	
Notices

	
 

	
 

	
 

	
Every notice,
 request, demand or other communication under this Agreement shall:

	
 

	
 

	
9.1.1

	
be in writing,
 delivered personally or by first-class prepaid letter (airmail if available)
 or telefax or other means of telecommunication in permanent written form;

	
 

	
 

	
9.1.2

	
be deemed to have
 been received, subject as otherwise provided in the relevant Security
 Document, in the case of a letter, when delivered personally or three (3)
 days after it has been put into the post and, in the case of a facsimile
 transmission or other means of telecommunication in permanent written form,
 at the time of despatch (provided that if the date of despatch is not a
 business day in the country of the addressee or, if the time of despatch is
 after the close of business in the country of the addressee, it shall be
 deemed to have been received at the opening of business on the next such
 business day); and

	
 

	
 

	
9.1.3

	
be sent:

	
 

	
 

	
 

	
(a)

	
if to the Relevant
 Parties or any of them:

	
 

	
 

	
 

	
 

	
 

	
Karamanli Avenue

	
 

	
 

	
166 05 Voula

	
 

	
 

	
Greece

	
 

	
 

	
 

	
 

	
 

	
Fax
 No:             +30
 210 8956900

	
 

	
 

	
Attention:          Constantine
 Adamopoulos

	
 

	
 

	
 

	
 

	
(b)

	
if to the Bank at:

	
 

	
 

	
The Shipping
 Business Centre 5-10 Great Tower Street

	
 

	
 

	
London, EC3P 3HX

	
 

	
 

	
England

	
 

	
 

	
 

	
 

	
 

	
Fax:                   +44
 207 085 7132

	
 

	
 

	
Attention:          Shipping
 Business Centre

7

	
 

	
 

	
   9.2

	
Counterparts

	
 

	
 

	
 

	
This Agreement may
 be executed in any number of counterparts and by the different parties on
 separate counterparts, each of which when so executed and delivered shall be
 an original but all counterparts shall together constitute one and the same
 instrument.

	
 

	
 

	
     10

	
Applicable
 law

	
 

	
 

	
  10.1

	
Law

	
 

	
 

	
 

	
This Agreement
 (and any non-contractual obligations connected with it) is governed by, and
 shall be construed in accordance with, English law.

	
 

	
 

	
  10.2

	
Submission
 to jurisdiction

	
 

	
 

	
 

	
Each of the
 Relevant Parties agrees, for the benefit of the Bank, that any legal action
 or proceedings arising out of or in connection with this Agreement (including
 any legal action or proceedings arising out of or in connection with any
 non-contractual obligations connected with it) against any of their assets
 may be brought in the English courts. Each of the Relevant Parties
 irrevocably and unconditionally submits to the jurisdiction of such courts
 and irrevocably designates, appoints and empowers Mr. Savvas Savvides at
 present of 24 Exeter Road, London N14 5JY England to receive for it and on
 its behalf, service of process issued out of the English courts in any such
 legal action or proceedings and each of the Relevant Parties further
 undertakes that, in the event that such individual passes away or cannot be
 found, each of the Relevant Parties hereby irrevocably and unconditionally
 authorises the Bank to designate, appoint and empower, on each of the
 Relevant Parties’ behalf, Messrs Cheeswrights or Messrs Saville & Co. at
 their then principal place of business in London, as substitute process
 agents of Mr. Savvas Savvides for the purposes of this clause. The submission
 to such jurisdiction shall not (and shall not be construed so as to) limit
 the right of the Bank to take proceedings against any of the Relevant Parties
 in the courts of any other competent jurisdiction nor shall the taking of
 proceedings in any one or more jurisdictions preclude the taking of
 proceedings in any other jurisdiction, whether concurrently or not. Each of
 the Relevant Parties further agrees that only the courts of England and not
 those of any other state shall have jurisdiction to determine any claim which
 any of the Relevant Parties may have against the Bank arising out of or in
 connection with this Agreement (including any claim arising out of or in
 connection with any non- contractual obligations connected with it).

	
 

	
 

	
  10.3

	
Contracts
 (Rights of Third Parties) Act 1999

	
 

	
 

	
 

	
No term of this
 Agreement is enforceable under the Contracts (Rights of Third Parties) Act
 1999 by a person who is not a party to this Agreement.

	
 

	
 

	
IN WITNESS whereof the parties hereto have
 caused this Agreement to be duly executed as a deed on the date first above
 written.

8

Schedule 1

Documents and evidence required as conditions precedent

(referred to in clause 6,1)

	
 

	
 

	
 

	
 

	
1

	
Corporate authorisations

	
 

	
 

	
 

	
In relation to
 each of the Relevant Parties:

	
 

	
 

	
 

	
(a)

	
Constitutional documents

	
 

	
 

	
 

	
 

	
 

	
 

	
copies certified
 by an officer of each of the Relevant Parties, as a true, complete and up to
 date copies, of all documents which contain or establish or relate to the
 constitution of that party or a secretary’s certificate confirming that there
 have been no changes or amendments to the constitutional documents certified
 copies of which were previously delivered to the Bank pursuant to the
 Principal Agreement;

	
 

	
 

	
 

	
 

	
(b)

	
Resolutions

	
 

	
 

	
 

	
 

	
 

	
copies of
 resolutions of each of its board of directors and, if required following
 advice by the Bank’s counsel, its shareholders approving this Agreement and
 the terms and conditions hereof and authorising the signature, delivery and
 performance of each such party’s obligations thereunder, certified (in a
 certificate dated no earlier than five (5) Banking Days prior to the date of
 this Agreement) by an officer of such Relevant Party as:

	
 

	
 

	
 

	
 

	
 

	
(1)

	
being true and
 correct;

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
being duly passed
 at meetings of the directors of such Relevant Party and, as the case may be,
 of the shareholders of such Relevant Party each duly convened and held;

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

	
not having been
 amended, modified or revoked; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
being in full
 force and effect,

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
together with
 originals or certified copies of any powers of attorney issued by any party
 pursuant to such resolutions; and

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Certificate of incumbency

	
 

	
 

	
 

	
 

	
 

	
a list of
 directors and officers of each Relevant Party specifying the names and
 positions of such persons, certified (in a certificate dated no earlier than
 five (5) Banking Days prior to the date of this Agreement) by an officer of
 such Relevant Party to be true, complete and up to date;

	
 

	
 

	
 

	
2

	
Consents

	
 

	
 

	
 

	
a certificate
 (dated no earlier than five (5) Banking Days prior to the date of this
 Agreement) from an officer of each of the Relevant Parties stating that no
 consents, authorisations, licences or approvals are necessary for such
 Relevant Party to authorise, or are required by each of the Relevant Parties
 or any other party (other than the Bank) in connection with, the execution,
 delivery, and performance of this Agreement;

	
 

	
 

	
3

	
Legal opinions

	
 

	
 

	
 

	
such legal
 opinions in relation to the laws of the Republic of Liberia, the Republic of
 the Marshall Islands and the Republic of Panama and any other legal opinions
 as the Bank shall in its absolute discretion require;

	
 

	
 

	
4

	
Borrower’s Account Pledge

	
 

	
 

	
 

	
the Borrower’s
 Account Pledge duly executed; and

	
 

	
 

	
5

	
Process agent

	
 

	
 

	
 

	
a letter from each
 Relevant Party’s agent for receipt of service of proceedings accepting its
 appointment under this Agreement as such Relevant Party’s process agent.

9

	
 

	
 

	
 

	
EXECUTED as a DEED

	
)

	
 

	
by Konstantinos
 Adamopoulos

	
)

	

	
for and on behalf
 of

	
)

	
Attorney-in-fact

	
SOFFIVE SHIPPING CORPORATION

	
)

	
 

	
as Borrower

	
)

	
 

	
in the presence
 of:

	
)

	
 

	
 

	
 

	
 

	

	
 

	
Witness:

	
Pinelopi - Anna
 Miliou

	
 

	
Name:

	
Norton Rose LLP,
 Athens

	
 

	
Address:

	
 

	
 

	
Occupation:

	
Trainee Solicitor

	
 

	
 

	
 

	
 

	
EXECUTED as a DEED

	
)

	
 

	
by Antonios
 Prigkis

	
)

	

	
for and on behalf
 of

	
)

	
Attorney-in-fact

	
SAFETY MANAGEMENT OVERSEAS S.A.

	
)

	
 

	
as Manager

	
)

	
 

	
in the presence
 of:

	
)

	
 

	
 

	
 

	
 

	
 

	

	
 

	
Witness:

	
Pinelopi - Anna
 Miliou

	
 

	
Name:

	
Norton Rose LLP,
 Athens

	
 

	
Address:

	
 

	
 

	
Occupation:

	
Trainee Solicitor

	
 

	
 

	
 

	
 

	
EXECUTED as a DEED

	
)

	
 

	
by Konstantinos
 Adamopoulos

	
)

	

	
for and on behalf
 of

	
)

	
Attorney-in-fact

	
SAFE BULKERS, INC.

	
)

	
 

	
as Corporate
 Guarantor

	
)

	
 

	
in the presence
 of:

	
)

	
 

	
 

	
 

	
 

	
 

	

	
 

	
Witness:

	
Pinelopi - Anna
 Miliou

	
 

	
Name:

	
Norton Rose LLP,
 Athens

	
 

	
Address:

	
 

	
 

	
Occupation:

	
Trainee Solicitor

	
 

10

	
 

	
 

	
 

	
EXECUTED as a DEED

	
)

	
 

	
by Fotis Bratimos

	
)

	

	
for and on behalf
 of

	
)

	
Attorney-in-fact

	
THE ROYAL BANK OF SCOTLAND plc

	
)

	
 

	
as Bank

	
)

	
 

	
in the presence
 of:

	
)

	
 

	
 

	
 

	
 

	
 

	

	
 

	
Witness:

	
Pinelopi - Anna
 Miliou

	
 

	
Name:

	
Norton Rose LLP,
 Athens

	
 

	
Address:

	
 

	
 

	
Occupation:

	
Trainee Solicitor

	
 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]