Document:

Exhibit 10.49

	
Private &
 Confidential

	
 

	
 

	

	
 

	
 

Dated 23 May 2008

	
 

	
 

	
 

	
 

	
SAFE BULKERS, INC.

	
(1)

	
 

	
 

	
 

	
 

	
and

	
 

	
 

	
 

	
 

	
 

	
THE ROYAL BANK OF SCOTLAND PLC

	
(2)
 

	
 

	
 

	

	
CORPORATE GUARANTEE

	

	
 

	
 

	
 

	

Contents

	
 

	
 

	
 

	
 

	
Clause

	
 

	
Page

	
 

	
 

	
 

	
 

	
1

	
Interpretation

	
 

	
1

	
 

	
 

	
 

	
 

	
2

	
Guarantee

	
 

	
5

	
 

	
 

	
 

	
 

	
3

	
Payments and Taxes

	
 

	
8

	
 

	
 

	
 

	
 

	
4

	
Representations and warranties

	
 

	
9

	
 

	
 

	
 

	
 

	
5

	
Undertakings

	
 

	
12

	
 

	
 

	
 

	
 

	
6

	
Set-off

	
 

	
15

	
 

	
 

	
 

	
 

	
7

	
Benefit of this Guarantee

	
 

	
15

	
 

	
 

	
 

	
 

	
8

	
Notices and other matters

	
 

	
15

	
 

	
 

	
 

	
 

	
9

	
Law and jurisdiction

	
 

	
17

	
 

	
 

	
 

	
 

	
Schedule 1 Form of Compliance
 Certificate

	
 

	
18

	
 

	
 

	
 

	
THIS GUARANTEE is dated 23 May 2008 and made BETWEEN:

	
 

	
 

	
 

	
 

	
(1)

	
SAFE
 BULKERS, INC. of Trust Company Complex, Ajeltake Road, Ajeltake
 Island, Majuro, Marshall Islands MH96960 (the “Guarantor”); and 

	
 

	
 

	
 

	
 

	
(2)

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

	
 

	
 

	
 

	
WHEREAS:

	
 

	
 

	
    (A)

	
by a loan
 agreement dated 1 March 2006 as amended and supplemented by a supplemental
 letter dated 24 April 2008 and a supplemental agreement dated 23 May 2008
 (together the “Agreement”) each
 made between (1) Marinouki Shipping Corporation as borrower (the “Borrower”) and (2) the Bank, the Bank has
 agreed, upon and subject to the terms and conditions of the Agreement, to
 make (and has made) available to the Borrower, a multi-currency loan facility
 of up to (originally) US$30,400,000, which was subsequently increased by
 $4,000,000 pursuant to the supplemental letter referred to above; 

	
 

	
 

	
    (B)

	
by a 1992 ISDA
 master agreement (including a schedule thereto) dated as of 1 March 2006 (the
 “Master Swap Agreement”) and
 made between the Borrower and the Bank, the Bank agreed the terms and
 conditions upon which it would enter into interest rate swap or other
 derivative transactions with the Borrower in respect of the Loan, whether in
 whole or in part (as the case may be) from time to time; and 

	
 

	
 

	
    (C)

	
the execution and
 delivery of this Guarantee is one of the conditions subsequent to the Bank
 continuing to make the said loan facility available under the Agreement and
 this Guarantee is the Corporate Guarantee referred to in the Agreement and it
 constitutes a Security Document.

             IT IS AGREED as follows: 

	
 

	
 

	
 

	
1

	
 

	
Interpretation
 

	
 

	
 

	
 

	
1.1

	
 

	
Defined
 expressions 

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee, unless the
 context otherwise requires or unless otherwise defined in this Guarantee,
 words and expressions defined in the Agreement and used in this Guarantee
 shall have the same meanings when used in this Guarantee. 

	
 

	
 

	
 

	
1.2

	
 

	
Definitions 

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee, unless the
 context otherwise requires: 

	
 

	
 

	
 

	
 

	
 

	
“Accounting Information” means (a) the annual audited
 consolidated financial statements of the Group and (b) the quarterly
 unaudited consolidated financial statements of the Group, each as provided or
 (as the context may require) to be provided to the Bank in accordance with
 clause 5.1.4; 

	
 

	
 

	
 

	
 

	
 

	
“Accounting Period” means (a) each financial year of the
 Guarantor and (b) each financial quarter of each financial year of the
 Guarantor, for which Accounting Information is required to be delivered
 pursuant to this Guarantee; 

	
 

	
 

	
 

	
 

	
 

	
“Applicable Accounting Principles” means the most recent and
 up-to-date US GAAP applicable at any relevant time; 

	
 

	
 

	
 

	
 

	
 

	
“Bank” includes the successors in title, Assignees and
 Transferees of the Bank; 

	
 

	
 

	
 

	
 

	
 

	
“Collateral Instruments” means notes, bills of exchange,
 certificates of deposit and other negotiable and non-negotiable instruments,
 guarantees, indemnities and other assurances

1

	
 

	
 

	
 

	
against financial loss and any
 other documents or instruments which contain or evidence an obligation (with
 or without security) to pay, discharge or be responsible directly or
 indirectly for, any indebtedness or liabilities of the Borrower or any other
 person liable and includes any documents or instruments creating or evidencing
 a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation,
 assignment, trust arrangement or security interest of any kind; 

	
 

	
 

	
 

	
“Compliance Certificate” means a certificate in the form set
 out in schedule 1; 

	
 

	
 

	
 

	
“Consolidated Adjusted Leverage Ratio” means, as of the last
 day of an Accounting Period or on any other day, the ratio of (a) the
 Consolidated Debt to (b) the Consolidated Total Assets, as stated in the then
 most recent and relevant Accounting Information; 

	
 

	
 

	
 

	
“Consolidated Adjusted Net
 Worth” means the aggregate of the amounts paid-up or credited as
 paid-up on the Guarantor’s issued share capital and the amount of the
 consolidated capital and revenue reserves of the Group (including any share
 premium account, capital redemption reserve fund and any credit balance on
 the consolidated profit and loss account of the Group) all as shown by the
 latest consolidated balance sheet and profit and loss account of the Group
 delivered under this Guarantee but after: 

	
 

	
 

	
 

	
 

	
(a)

	
deducting any debit balance on
 such consolidated profit and loss account; 

	
 

	
 

	
 

	
 

	
(b)

	
deducting any amount shown in
 such consolidated balance sheet in respect of goodwill (including goodwill
 arising on consolidation) and other intangible assets; 

	
 

	
 

	
 

	
 

	
(c)

	
deducting (so far as not
 otherwise excluded as attributable to minority interests) a sum equal to the
 aggregate of the amount by which the book value of any fixed assets of any
 member of the Group has been written up after 31 December 2007 (or, in the
 case of a company becoming a subsidiary after that date, the date on which
 that company became a subsidiary) by way of revaluation. For the purposes of
 this paragraph (c) any increase in the book value of any fixed asset
 resulting from its transfer by one member of the Group to another member of
 the Group shall be deemed to result from a writing up of its book value by
 way of revaluation; 

	
 

	
 

	
 

	
 

	
(d)

	
excluding amounts set aside for
 taxation as at the date of such balance sheet and making such adjustments as
 may be appropriate in respect of any significant additional taxation expected
 to result from transactions carried out by any member of the Group after such
 date and not reflected in that balance sheet; 

	
 

	
 

	
 

	
 

	
(e)

	
deducting all amounts
 attributable to minority interests in Subsidiaries; 

	
 

	
 

	
 

	
 

	
(f)

	
making such adjustments as may
 be appropriate in respect of any variation in the amount of such paid up
 share capital or any such reserves after the date of the relevant balance
 sheet (but so that no such adjustment shall be made in respect of any
 variation in profit and loss account except to the extent of any profit or
 loss, calculated on a cumulative basis, recorded in the consolidated profit
 and loss account of the Group delivered to the Bank before the date of this Guarantee,
 or under clause 5.1.4 in respect of any subsequent period); 

	
 

	
 

	
 

	
 

	
(g)

	
making such adjustments as may
 be appropriate in respect of any distribution declared, recommended or made
 by any member of the Group (otherwise than attributable directly or indirectly
 to the Guarantor) out of profits earned up to and including the date of the
 latest audited balance sheet of that member of the Group to the extent that
 such distribution is not provided for in that balance sheet; 

	
 

	
 

	
 

	
 

	
(h)

	
making such adjustments as may
 be appropriate in respect of any variation in the interests of the Guarantor
 in its Subsidiaries since the date of the latest consolidated balance sheet
 of the Group; 

2

	
 

	
 

	
 

	
 

	
(i)

	
if the calculation is required
 for the purpose of or in connection with a transaction under or in connection
 with which any company is to become or cease to be a Subsidiary of the
 Guarantor, making all such adjustments as would be appropriate if that
 transaction had been carried into effect; 

	
 

	
 

	
 

	
 

	
(j)

	
adding the relevant excess in
 the event that the Fleet Market Value exceeds the book values of the Fleet
 Vessels as shown in the then most recent and relevant Accounting Information;
 

	
 

	
 

	
 

	
 

	
(k)

	
deducting the relevant shortfall
 in the event that the Fleet Market Value is less than the book values of the
 Fleet Vessels as shown in the then most recent and relevant Accounting
 Information; and 

	
 

	
 

	
 

	
 

	
(l)

	
making such adjustments as may
 be appropriate in the opinion of the Bank in order that the above amounts are
 calculated in accordance with the Applicable Accounting Principles;

	
 

	
 

	
 

	
“Consolidated Current Assets” means, as of the last day of an
 Accounting Period or on any other day, the aggregate of the cash and
 marketable securities, trade and other receivables from persons other than a
 member of the Group realisable within one (1) year, inventories and prepaid
 expenses which are to be charged to income within one (1) year less any
 doubtful debts and any discounts or allowances given, in each case in
 relation to the Group, as stated in the then most recent and relevant
 Accounting Information; 

	
 

	
 

	
 

	
“Consolidated Debt” means, as of the last day of an
 Accounting Period or on any other day, the aggregate amount of Debt owed by
 the members of the Group (other than any Debt owing by any member of the
 Group to another member of the Group), as stated in the then most recent and
 relevant Accounting Information; 

	
 

	
 

	
 

	
“Consolidated Debt Service
 Ratio” means, as of the last day of an Accounting Period or on any
 other day, the ratio of Consolidated Debt to Consolidated EBITDA in respect
 of the Rolling Four Quarter Period ending on such day, each as stated in the
 then most recent and relevant Accounting Information; 

	
 

	
 

	
 

	
“Consolidated EBITDA” means, as of the last day of an
 Accounting Period or on any other day, the consolidated net pre-taxation
 profits of the Group in respect of the Rolling Four Quarter Period ending on
 such day, as stated in the then most recent and relevant Accounting
 Information, 

	
 

	
 

	
 

	
 

	
(a)

	
including the net pre-taxation profits
 of a member of the Group or business or assets acquired during that Rolling
 Four Quarter Period for the part of that Rolling Four Quarter Period when it
 was not a member of the Group and/or the business or assets were not owned by
 a member of the Group; but 

	
 

	
 

	
 

	
 

	
(b)

	
excluding the net pre-taxation
 profits attributable to any member of the Group or to any business or assets
 sold during that Rolling Four Quarter Period:

	
 

	
 

	
 

	
and all as adjusted by:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
adding back Consolidated Net
 Interest Expense;

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
taking no account of any
 exceptional or extraordinary item;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
adding back depreciation and
 amortisation; and 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
taking no account
 of any revaluation of an asset or any loss or gain over book value arising on
 the disposal of an asset (otherwise than in the ordinary course of trading)
 by a member of the Group during that Rolling Four Quarter Period;

3

	
 

	
 

	
 

	
“Consolidated Net Interest Expense”
  means, as of the last day of an Accounting Period or on any other day, all
  interest and other financing charges incurred or paid by the Group minus all
  interest income received by the Group in respect of the Rolling Four Quarter
  Period ending on such day, as stated in the then most recent and relevant
  Accounting Information; 

	
 

	
 

	
 

	
“Consolidated Tangible Fixed Assets”
  means, as of the last day of an Accounting Period or on any other day, the
  aggregate of (a) the Fleet Market Value and (b) the book value (less
  depreciation computed in accordance with the Applicable Accounting Principles
  consistently applied) on a consolidated basis of all other tangible fixed
  assets of the Group (i.e. excluding Fleet Vessels), as stated in the then
  most recent and relevant Accounting Information; 

	
 

	
 

	
 

	
“Consolidated Total Assets”
  means, at any relevant time, the aggregate of Consolidated Current Assets and
  Consolidated Tangible Fixed Assets; 

	
 

	
 

	
 

	
“Debt”
  means, in relation to any member of the Group (the “debtor”):

	
 

	
 

	
 

	
 

	
(a)

	
Borrowed Money of the debtor; 

	
 

	
 

	
 

	
 

	
(b)

	
liability for any credit to the debtor from
  a supplier of goods or services or under any instalment purchase or payment
  plan or other similar arrangement; 

	
 

	
 

	
 

	
 

	
(c)

	
contingent liabilities of the debtor
  (including without limitation any taxes or other payments under dispute)
  which have been or, under the Applicable Accounting Principles consistently
  applied, should be recorded in the notes to the Accounting Information; 

	
 

	
 

	
 

	
 

	
(d)

	
deferred tax of the debtor; and 

	
 

	
 

	
 

	
 

	
(e)

	
liability under a guarantee, indemnity or
  similar obligation entered into by the debtor in respect of a liability of
  another person who is not a member of the Group which would fall within (a)
  to (d) above if the references to the debtor referred to the other person; 

	
 

	
 

	
 

	
“Fleet Market Value”
  means, as of the date of calculation, the aggregate market value of the Fleet
  Vessels as most recently determined pursuant to valuations obtained and made
  in accordance with clause 5.1.5 of this Guarantee and the provisions of
  clause 9.2.2 of the Agreement (at the cost of the Guarantor) (and for the
  purposes of this Guarantee and the calculation of Fleet Market Value, such
  clause 9.2.2 shall apply to this Guarantee mutatis mutandis); 

	
 

	
 

	
 

	
“Fleet Vessels”
  means the vessels (including, but not limited to, the Ship) from time to time
  owned by the members of the Group and “Fleet
  Vessel” means any of them; 

	
 

	
 

	
 

	
“Group”
  means, together, the Guarantor and its Subsidiaries from time to time
  (including, for the avoidance of doubt, the Borrower) and “member of the Group” shall be construed
  accordingly; 

	
 

	
 

	
 

	
“Guarantee”
  includes each separate or independent stipulation or agreement by the
  Guarantor contained in this Guarantee; 

	
 

	
 

	
 

	
“Guaranteed Liabilities”
  means all moneys, obligations and liabilities expressed to be guaranteed by
  the Guarantor in clause 2.1; 

	
 

	
 

	
 

	
“Guarantor”
  includes the Guarantor’s successors in title; 

	
 

	
 

	
 

	
“Incapacity”
  means, in relation to a person, the death, bankruptcy, unsoundness of mind,
  insolvency, liquidation, dissolution, winding-up, administration,
  receivership, amalgamation, reconstruction or other incapacity of that person
  whatsoever (and, in the case of a partnership, includes the termination or
  change in the composition of the partnership); 

4

	
 

	
 

	
 

	
 

	
 

	
“Listing”
  means the successful completion of the initial public offering of
  approximately 20% of the shares of the Guarantor, and the listing of the
  shares of the Guarantor on the New York Stock Exchange;

	
 

	
 

	
 

	
 

	
 

	
“Relevant Jurisdiction”
  means any jurisdiction in which or where the Guarantor is incorporated,
  resident, domiciled, has a permanent establishment, carries on or has a place
  of business or is otherwise effectively connected; and

	
 

	
 

	
 

	
 

	
 

	
“Rolling Four Quarter Period”
  means, as of the last day of an Accounting Period or on any other day, the
  twelve-month period ending on such day.

	
 

	
 

	
 

	
1.3

	
 

	
Headings 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
1.4

	
 

	
Construction of certain terms

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee, unless the context
  otherwise requires:

	
 

	
 

	
 

	
1.4.1

	
 

	
references to clauses are to be construed
  as references to the clauses of this Guarantee; 

	
 

	
 

	
 

	
1.4.2

	
 

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

	
 

	
 

	
 

	
1.4.3

	
 

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

	
 

	
 

	
 

	
1.4.4

	
 

	
references to a time of day are to London
  time; 

	
 

	
 

	
 

	
1.4.5

	
 

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

	
 

	
 

	
 

	
1.4.6

	
 

	
references to a “guarantee” include references to an indemnity or other
assurance against financial loss including, without limitation, any
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  

	
 

	
 

	
 

	
1.4.7

	
 

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

	
 

	
 

	
 

	
2

	
 

	
Guarantee

	
 

	
 

	
 

	
2.1

	
 

	
Covenant to pay

	
 

	
 

	
 

	
 

	
 

	
In consideration of the Bank making or
  continuing loans or advances to, or otherwise giving credit or granting
  banking facilities or accommodation or granting time to, the Borrower
  pursuant to the Agreement and/or the Master Swap Agreement, the Guarantor
  hereby guarantees to pay to the Bank, on demand by the Bank all moneys and
  discharge all obligations and liabilities now or hereafter due, owing or
  incurred by the Borrower to the Bank under or pursuant to the Agreement, the
  Master Swap Agreement and the other Security Documents when the same become
  due for payment or discharge whether by acceleration or otherwise, and
  whether such moneys, obligations or liabilities are express or implied,
  present, future or contingent, joint or several, incurred as principal or
  surety, originally owing to the Bank or purchased or otherwise acquired by
  it, denominated in Dollars or in any other currency, or incurred on any
  banking account or in any other manner whatsoever. 

5

	
 

	
 

	
 

	
 

	
 

	
Such liabilities shall, without limitation,
  include interest (as well after as before judgment) to date of payment at
  such rates and upon such terms as may from time to time be agreed,
  commission, fees and other charges and all legal and other costs, charges and
  expenses on a full and unqualified indemnity basis which may be incurred by
  the Bank in relation to any such moneys, obligations or liabilities or
  generally in respect of the Borrower, the Guarantor or any Collateral
  Instrument.

	
 

	
 

	
 

	
2.2

	
 

	
Guarantor as principal debtor; indemnity 

	
 

	
 

	
 

	
 

	
 

	
As a separate and independent stipulation,
  the Guarantor agrees that if any purported obligation or liability of the
  Borrower which would have been the subject of this Guarantee had it been
  valid and enforceable is not or ceases to be valid or enforceable against the
  Borrower on any ground whatsoever whether or not known to the Bank (including,
  without limitation, any irregular exercise or absence of any corporate power
  or lack of authority of, or breach of duty by, any person purporting to act
  on behalf of the Borrower or any legal or other limitation, whether under the
  Limitation Acts or otherwise or any disability or Incapacity or any change in
  the constitution of the Borrower) the Guarantor shall nevertheless be liable
  to the Bank in respect of that purported obligation or liability as if the
  same were fully valid and enforceable and the Guarantor were the principal
  debtor in respect thereof. The Guarantor hereby agrees to keep the Bank fully
  indemnified on demand against all damages, losses, costs and expenses arising
  from any failure of the Borrowers or either of them to perform or discharge
  any such purported obligation or liability. 

	
 

	
 

	
 

	
2.3

	
 

	
Statements of account conclusive 

	
 

	
 

	
 

	
 

	
 

	
Any statement of account, signed as correct
  by an officer of the Bank, showing the amount of the Guaranteed Liabilities
  shall, in the absence of manifest error, be binding and conclusive on and
  against the Guarantor. 

	
 

	
 

	
 

	
2.4

	
 

	
No security taken by Guarantor 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor warrants that it has not
  taken or received, and undertakes that until all the Guaranteed Liabilities
  of the Borrower have been paid or discharged in full, it will not take or
  receive, the benefit of any security from the Borrowers or either of them or
  any other person in respect of its obligations under this Guarantee. 

	
 

	
 

	
 

	
2.5

	
 

	
Interest 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor agrees to pay interest on each
  amount demanded of it under this Guarantee from the date of such demand until
  payment (as well after as before judgment) at the rate specified in clause
  3.4 of the Agreement which shall apply to this Guarantee mutatis mutandis.
  Such interest shall be compounded at the end of each period determined for
  this purpose by the Bank in the event of it not being paid when demanded but
  without prejudice to the Bank’s right to require payment of such interest. 

	
 

	
 

	
 

	
2.6

	
 

	
Continuing security and other matters

	
 

	
 

	
 

	
 

	
 

	
This Guarantee shall:

	
 

	
 

	
 

	
2.6.1

	
 

	
secure the ultimate balance from time to
  time owing to the Bank by the Borrower and shall be a continuing security,
  notwithstanding any settlement of account or other matter whatsoever; 

	
 

	
 

	
 

	
2.6.2

	
 

	
be in addition to any present or future
  Collateral Instrument, right or remedy held by or available to the Bank; and 

	
 

	
 

	
 

	
2.6.3

	
 

	
not be in any way prejudiced or affected by
  the existence of any such Collateral Instrument, rights or remedies or by the
  same becoming wholly or in part void, voidable or unenforceable on any ground
  whatsoever or by the Bank dealing with, exchanging, varying or failing to
  perfect or 

6

	
 

	
 

	
 

	
 

	
 

	
enforce any of the same or giving time for
  payment or indulgence or compounding with any other person liable.

	
 

	
 

	
 

	
2.7

	
 

	
Liability unconditional

	
 

	
 

	
 

	
 

	
 

	
The liability of the Guarantor shall not
  be affected nor shall this Guarantee be discharged or reduced by reason of:

	
 

	
 

	
 

	
2.7.1

	
 

	
the Incapacity or any change in the name,
  style or constitution of the Borrower or any other person liable;

	
 

	
 

	
 

	
2.7.2

	
 

	
the Bank granting any time, indulgence or
  concession to, or compounding with, discharging, releasing or varying the
  liability of, the Borrower or any other person liable or renewing,
  determining, varying or increasing any accommodation, facility or transaction
  or otherwise dealing with the same in any manner whatsoever or concurring in,
  accepting or varying any compromise, arrangement or settlement or omitting to
  claim or enforce payment from the Borrower or any other person liable; or

	
 

	
 

	
 

	
2.7.3

	
 

	
any act or omission which would not have
  discharged or affected the liability of the Guarantor had it been a principal
  debtor instead of a guarantor or by anything done or omitted which but for
  this provision might operate to exonerate the Guarantor.

	
 

	
 

	
 

	
2.8

	
 

	
Collateral Instruments

	
 

	
 

	
 

	
 

	
 

	
The Bank shall not be obliged to make any
  claim or demand on the Borrower or to resort to any Collateral Instrument or
  other means of payment now or hereafter held by or available to it before
  enforcing this Guarantee and no action taken or omitted by the Bank in
  connection with any such Collateral Instrument or other means of payment
  shall discharge, reduce, prejudice or affect the liability of the Guarantor
  under this Guarantee nor shall the Bank be obliged to apply any money or
  other property received or recovered in consequence of any enforcement or
  realisation of any such Collateral Instrument or other means of payment in
  reduction of the Guaranteed Liabilities.

	
 

	
 

	
 

	
2.9

	
 

	
Waiver of Guarantor’s rights

	
 

	
 

	
 

	
 

	
 

	
Until all the Guaranteed Liabilities have
  been paid, discharged or satisfied in full (and notwithstanding payment of a
  dividend in any liquidation or under any compromise or arrangement) the
  Guarantor agrees that, without the prior written consent of the Bank, it will
  not:

	
 

	
 

	
 

	
2.9.1

	
 

	
exercise its rights of subrogation,
  reimbursement and indemnity against the Borrower or any other person liable;

	
 

	
 

	
 

	
2.9.2

	
 

	
demand or accept repayment in whole or in
  part of any indebtedness now or hereafter due to the Guarantor from the
  Borrower or from any other person liable or demand or accept any Collateral
  Instrument in respect of the same or dispose of the same;

	

2.9.3

	
 

	

take any step to enforce any right against
  the Borrower or any other person liable in respect of any Guaranteed
  Liabilities; or

	
 

	
 

	
 

	
2.9.4

	
 

	
claim any set-off or counterclaim against
  the Borrower or any other person liable or claim or prove in competition with
  the Bank in the liquidation of the Borrower or any other person liable or have
  the benefit of, or share in, any payment from or composition with, the
  Borrower or any other person liable or any other Collateral Instrument now or
  hereafter held by the Bank for any Guaranteed Liabilities or for the
  obligations or liabilities of any other person liable but so that, if so
  directed by the Bank, it will prove for the whole or any part of its claim in
  the liquidation of the Borrower or any other person liable on terms that the
  benefit of such proof and of all money received by it in respect thereof
  shall be held on trust for the Bank and applied in or towards discharge of
  the Guaranteed Liabilities in such manner as the Bank shall deem appropriate.

7

	
 

	
 

	
 

	
2.10

	
 

	
Suspense accounts

	
 

	
 

	

Any money received in connection with this
  Guarantee (whether before or after any Incapacity of the Borrower or the
  Guarantor) may be placed to the credit of a suspense account with a view to
  preserving the rights of the Bank to prove for the whole of its claims
  against the Borrower or any other person liable or may be applied in or
  towards satisfaction of such of the Guaranteed Liabilities as the Bank may
  from time to time conclusively determine in its absolute discretion. 

	
 

	
 

	
 

	
2.11

	
 

	
Settlements conditional

	
 

	
 

	
 

	
 

	
 

	
Any release, discharge or settlement
  between the Guarantor and the Bank shall be conditional upon no security,
  disposition or payment to the Bank by the Borrower or any other person liable
  being void, set aside or ordered to be refunded pursuant to any enactment or
  law relating to bankruptcy, liquidation, administration or insolvency or for
  any other reason whatsoever and if such condition shall not be fulfilled the
  Bank shall be entitled to enforce this Guarantee subsequently as if such
  release, discharge or settlement had not occurred and any such payment had
  not been made. 

	
 

	
 

	
 

	
2.12

	
 

	
Guarantor to deliver up certain property 

	
 

	
 

	
 

	
 

	
 

	
If, contrary to clauses 2.4 or 2.9 the
  Guarantor takes or receives the benefit of any security or receives or
  recovers any money or other property, such security, money or other property
  shall be held on trust for the Bank and shall be delivered to the Bank on
  demand. 

	
 

	
 

	
 

	
2.13

	
 

	
Retention of this Guarantee

	
 

	
 

	
 

	
 

	
 

	
The Bank shall be entitled to retain this
  Guarantee after as well as before the payment or discharge of all the Guaranteed
  Liabilities for such period as the Bank may determine whereupon the Bank
  shall return this Guarantee to the Guarantor. 

	
 

	
 

	
 

	
3

	
 

	
Payments and Taxes

	
 

	
 

	
 

	
3.1

	
 

	
No set off or counterclaim 

	
 

	
 

	
All payments to be made by the Guarantor
  under this Guarantee shall be made in full, without any set-off or
  counterclaim whatsoever and, subject as provided in clause 3.2, free and
  clear of any deductions or withholdings, in Dollars or (if applicable) in the
  relevant Optional Currency in which they are denominated (except for charges
  or expenses which shall be paid in the currency in which they are incurred)
  on the due date to such account of the Bank as it may specify in writing to
  the Guarantor from time to time. 

	
 

	
 

	
 

	
3.2

	
 

	
Grossing up for Taxes

	
 

	
 

	
 

	
 

	
 

	
If at any time the Guarantor is required to
  make any deduction or withholding in respect of Taxes from any payment due
  under this Guarantee for the account of the Bank, the sum due from the
  Guarantor in respect of such payment shall be increased to the extent necessary
  to ensure that, after the making of such deduction or withholding, the Bank
  receives on the due date for such payment (and retains, free from any
  liability in respect of such deduction or withholding) a net sum equal to the
  sum which it would have received had no such deduction or withholding been
  required to be made and the Guarantor shall indemnify the Bank against any
  losses or costs incurred by it by reason of any failure of the Guarantor to
  make any such deduction or withholding or by reason of any increased payment
  not being made on the due date for such payment. The Guarantor shall promptly
  deliver to the Bank any receipts, certificates or other proof evidencing the
  amounts (if any) paid or payable in respect of any deduction or withholding
  as aforesaid. 

8

	
 

	
 

	
 

	
3.3

	
 

	
Currency indemnity 

	
 

	
 

	
 

	
 

	
 

	
If any sum
due from the Guarantor under this Guarantee or any order or judgment given or
made in relation hereto has to be converted from the currency (the “first
currency”) in which the same is payable under this Guarantee or under such
order or judgment into another currency (the “second currency”) for the
purpose of (a) making or filing a claim or proof against the Guarantor, (b)
obtaining an order or judgment in any court or other tribunal or (c)
enforcing any order or judgment given or made in relation to this Guarantee,
the Guarantor shall indemnify and hold harmless the Bank from and against any
loss suffered as a result of any difference between (i) the rate of exchange
used for such purpose to convert the sum in question from the first currency
into the second currency and (ii) the rate or rates of exchange at which the
Bank may in the ordinary course of business purchase the first currency with
the second currency upon receipt of a sum paid to it in satisfaction, in
whole or in part, of any such order, judgment, claim or proof. Any amount due
from the Guarantor under this clause 3.3 shall be due as a separate debt and
shall not be affected by judgment being obtained for any other sums due under
or in respect of this Guarantee and the term “rate of exchange” includes any
premium and costs of exchange payable in connection with the purchase of the
first currency with the second currency.  

	
 

	
 

	
 

	
4

	
 

	
Representations
 and warranties 

	
 

	
 

	
 

	
4.1

	
 

	
Continuing representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor represents and warrants that:

	
 

	
 

	
 

	
4.1.1

	
 

	
Due
 incorporation

	
 

	
 

	
 

	
 

	
 

	
the
 Guarantor is duly incorporated and validly existing under the laws of the
 Marshall Islands as a Marshall Islands corporation and has power to carry on its
 business as it is now being conducted and to own its property and other
 assets;

	
 

	
 

	
 

	
4.1.2

	
 

	
Corporate
 power to guarantee

	
 

	
 

	
 

	
 

	
 

	
the
 Guarantor has power to execute, deliver and perform its obligations under
 this Guarantee and under the other Security Documents and the Underlying
 Documents to which it is or is to be a party; all necessary corporate,
 shareholder and other action has been taken to authorise the execution,
 delivery and performance of the same and no limitation on the powers of the
 Guarantor to borrow or give guarantees will be exceeded as a result of this
 Guarantee;

	
 

	
 

	
 

	
4.1.3

	
 

	
Binding
 obligations

	
 

	
 

	
 

	
 

	
 

	
this
 Guarantee and each of the other Security Documents and the Underlying
 Documents to which it is or is to be a party constitutes valid and legally
 binding obligations of the Guarantor enforceable in accordance with its
 terms;

	
 

	
 

	
 

	
4.1.4

	
 

	
No conflict
 with other obligations

	
 

	
 

	
 

	
 

	
 

	
the
 execution and delivery of, the performance of its obligations under, and
 compliance with the provisions of, this Guarantee and each of the other
 Security Documents and the Underlying Documents to which it is or is to be a
 party, by the Guarantor will not (i) contravene any existing applicable law,
 statute, rule or regulation or any judgment, decree or permit to which the
 Guarantor 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 the Guarantor is a party or is subject or by which it or
 any of its property is bound, (iii) contravene or conflict with any provision
 of the Guarantor’s constitutional documents or (iv) result in the creation or
 imposition of or oblige the Guarantor to create any Encumbrance on any of the
 Guarantor’s undertakings, assets, rights or revenues;

9

	
 

	
 

	
 

	
4.1.5

	
 

	
No
 litigation

	
 

	
 

	
 

	
 

	
 

	
no
 litigation, arbitration or administrative proceeding is taking place, pending
 or, to the knowledge of the officers of the Guarantor, threatened against the
 Guarantor or any of its Subsidiaries which could have a material adverse
 effect on the business, assets or financial condition of the Guarantor;

	
 

	
 

	
 

	
4.1.6

	
 

	
No filings
 required

	
 

	
 

	
 

	
 

	
 

	
it is not
 necessary to ensure the legality, validity, enforceability or admissibility
 in evidence of this Guarantee or any of the other Security Documents and the
 Underlying Documents to which the Guarantor is or is to be a party, 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 Guarantee or any of the other Security
 Documents and the Underlying Documents to which the Guarantor is or is to be
 a party and this Guarantee is in proper form for its enforcement in the
 courts of each Relevant Jurisdiction;

	
 

	
 

	
 

	
4.1.7

	
 

	
Choice of
 law

	
 

	
 

	
 

	
 

	
 

	
the choice
 by the Guarantor of English law to govern this Guarantee or any of the other
 Security Documents and the Underlying Documents to which the Guarantor is or
 is to be a party and the submission by the Guarantor to the non-exclusive
 jurisdiction of the English courts are valid and binding;

	
 

	
 

	
 

	
4.1.8 

	
 

	
No immunity

	
 

	
 

	
 

	
 

	
 

	
neither the
 Guarantor nor any of its assets is entitled to immunity on the grounds of
 sovereignty or otherwise from any legal action or proceeding (which shall
 include, without limitation, suit, attachment prior to judgment, execution or
 other enforcement);

	
 

	
 

	
 

	
4.1.9

	
 

	
Consents
 obtained

	
 

	
 

	
 

	
 

	
 

	
every
 consent, authorisation, licence or approval of, or registration with or
 declaration to, governmental or public bodies or authorities or courts
 required by the Guarantor to authorise, or required by the Guarantor in
 connection with, the execution, delivery, validity, enforceability or
 admissibility in evidence of this Guarantee or any of the other Security
 Documents and the Underlying Documents to which the Guarantor is or is to be
 a party, or the performance by the Guarantor of its obligations under this
 Guarantee or any of the other Security Documents and the Underlying Documents
 to which the Guarantor is or is to be a party, has been obtained or made and
 is in full force and effect and there has been no default in the observance
 of the conditions or restrictions (if any) imposed in, or in connection with,
 any of the same; and

	
 

	
 

	
 

	
4.1.10

	
 

	
No material
 adverse change

	
 

	
 

	
 

	
 

	
 

	
there has
 been no material adverse change in the financial position of the Guarantor or
 the consolidated financial position of the Group from that described by or on
 behalf of the Borrowers and/or the Guarantor to the Bank in the negotiation
 of the Agreement and this Guarantee.

	
 

	
 

	
 

	
4.2

	
 

	
Initial representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor further represents and warrants that as of the date of the Listing:

	
 

	
 

	
 

	
4.2.1

	
 

	
Pari passu

	
 

	
 

	
 

	
 

	
 

	
the
 obligations of the Guarantor under this Guarantee are direct, general and
 unconditional obligations of the Guarantor and rank at least pari passu with
 all other present and future

10

	
 

	
 

	
 

	
 

	
 

	
unsecured
 and unsubordinated Indebtedness of the Guarantor with the exception of any
 obligations which are mandatorily preferred by law and not by contract;

	
 

	
 

	
 

	
4.2.2

	
 

	
No default
 under other Indebtedness

	
 

	
 

	
 

	
 

	
 

	
the
 Guarantor is not (nor would with the giving of notice or lapse of time or the
 satisfaction of any other condition or any combination thereof be) in breach
 of or in default under any agreement relating to Indebtedness to which it is
 a party or by which it may be bound;

	
 

	
 

	
 

	
4.2.3

	
 

	
Information

	
 

	
 

	
 

	
 

	
 

	
the information,
 exhibits and reports furnished by the Guarantor to the Bank in connection or
 with the negotiation and preparation of this Guarantee are true and accurate
 in all material respects and not misleading, do not omit material facts and
 all reasonable enquiries have been made to verify the facts and statements
 contained therein; there are no other facts the omission of which would make
 any fact or statement therein misleading;

	
 

	
 

	
 

	
4.2.4

	
 

	
No
 withholding Taxes

	
 

	
 

	
 

	
 

	
 

	
no Taxes are
 imposed by withholding or otherwise on any payment to be made by the
 Guarantor under this Guarantee or any of the other Security Documents and the
 Underlying Documents to which the Guarantor is or is to be a party, or are
 imposed on or by virtue of the execution or delivery by the Guarantor of this
 Guarantee or any of the other Security Documents and the Underlying Documents
 to which the Guarantor is or is to be a party or any document or instrument
 to be executed or delivered under this Guarantee or such Security Documents;

	
 

	
 

	
 

	
4.2.5

	
 

	
No Default 

	
 

	
 

	
 

	
 

	
 

	
no Default
 has occurred and is continuing; and

	
 

	
 

	
 

	
4.2.6 

	
 

	
Shareholdings

	
 

	
 

	
 

	
 

	
 

	
the Borrower
 is a wholly-owned direct Subsidiary of the Guarantor and no less than 75% of
 all the issued share capital of the Guarantor are ultimately beneficially
 owned by the Hadjioannou Family.

	
 

	
 

	
 

	
4.3

	
 

	
Repetition of representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
On and as of
 each day from the date of this Guarantee until all moneys due or owing,
 whether actually or contingently, under the Agreement and/or the other Security
 Documents (including this Guarantee) have been paid in full and while all or
 any part of the Commitment remains outstanding, the Guarantor shall:

	
 

	
 

	
 

	
4.3.1

	
 

	
be deemed to
 repeat the representations and warranties in clause 4.1 as if made with reference
 to the facts and circumstances existing on such day; and

	
 

	
 

	
 

	
4.3.2

	
 

	
be deemed to
 further represent and warrant to the Bank that the then latest audited
 financial statements delivered to the Bank under this Guarantee (if any) have
 been prepared in accordance with the Applicable Accounting Principles which
 have been consistently applied and present fairly and accurately the
 consolidated financial position of the Group as at the end of the financial
 period to which the same relate and the consolidated results of the
 operations of the Group for the financial period to which the same relate
 and, as at the end of such financial period, neither the Guarantor nor any
 other member of the Group had any significant liabilities (contingent or
 otherwise) or any unrealised or anticipated losses which are not disclosed
 by, or reserved against or provided for in, such financial statements.

11

	
 

	
 

	
 

	
5

	
 

	
Undertakings
 

	
 

	
 

	
 

	
5.1

	
 

	
General 

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor undertakes that, from the date of this Guarantee and so long as any
 moneys are owing, whether actually or contingently, under the Agreement or
 the other Security Documents (including this Guarantee) and while all or any
 part of the Commitment remains outstanding, it will:

	
 

	
 

	
 

	
5.1.1

	
 

	
Notice of
 default 

	
 

	
 

	
 

	
 

	
 

	
promptly inform
 the Bank of any occurrence of which it becomes aware which might adversely
 affect its ability to perform its obligations under this Guarantee and each
 of the other Security Documents and the Underlying Documents to which the
 Guarantor is or is to be a party, and of any Default forthwith upon becoming
 aware thereof and will from time to time, if so requested by the Bank,
 confirm to the Bank in writing that, save as otherwise stated in such
 confirmation, no Default has occurred and is continuing;

	
 

	
 

	
 

	
5.1.2

	
 

	
Consents and
 licences 

	
 

	
 

	
 

	
 

	
 

	
without
 prejudice to clause 4.1, obtain or cause to be obtained, maintain in full
 force and effect and comply in all material respects with the conditions and
 restrictions (if any) imposed in, or in connection with, every consent,
 authorisation, licence or approval of governmental or public bodies or
 authorities or courts and do, or cause to be done, all other acts and things
 which may from time to time be necessary or desirable under applicable law
 for the continued due performance of all its obligations under this
 Guarantee;

	
 

	
 

	
 

	
5.1.3

	
 

	
Pari passu 

	
 

	
 

	
 

	
 

	
 

	
ensure that
 its obligations under this Guarantee shall, without prejudice to the
 provisions of clause 5.2, at all times rank at least pari passu with all its
 other present and future unsecured and unsubordinated Indebtedness with the
 exception of any obligations which are mandatorily preferred by law and not
 by contract;

	
 

	
 

	
 

	
5.1.4

	
 

	
Financial
 statements 

	
 

	
 

	
 

	
 

	
 

	
prepare or
 cause to be prepared:

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
audited
 consolidated financial statements of the Group in accordance with the
 Applicable Accounting Principles consistently applied in respect of each
 financial year; and 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
unaudited
 consolidated financial statements of the Group in accordance with the Applicable
 Accounting Principles consistently applied in respect of each financial
 quarter of each financial year, 

	
 

	
 

	
 

	
 

	
 

	
and, in each
 case, deliver as many copies of the same as the Bank may reasonably require
 as soon as practicable but not later than one hundred and eighty (180) days
 (in the case of audited statements) and sixty (60) days (in the case of
 unaudited statements) after the end of the financial period to which they
 relate; 

	
 

	
 

	
 

	
5.1.5

	
 

	
Valuations
 and Compliance Certificate

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
deliver or
 cause to be delivered to the Bank valuations (dated not earlier than 30 days
 previously) of each Fleet Vessel prepared in accordance with, and in the
 manner specified in, clause 9.2.2 of the Agreement (at the cost of the
 Guarantor) at the time when any annual or semi-annual consolidated financial
 statements of the Group are delivered to the Bank in accordance with clause
 5.1.4 (and clause 9.2.2 of the 

12

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Agreement
 shall apply mutatis mutandis hereto for the purpose of the valuation of Fleet
 Vessels); and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
deliver to
 the Bank, a Compliance Certificate for the relevant period executed by the
 Guarantor and counter-signed by the Chief Financial Officer of the Guarantor
 at the time when any consolidated financial statements of the Group are
 delivered to the Bank in accordance with clause 5.1.4;

	
 

	
 

	
 

	
 

	
 

	
5.1.6

	
 

	
Liquidity 

	
 

	
 

	
 

	
 

	
 

	
maintain at
 all times in bank accounts held with the Bank and which are free from
 Encumbrances (other than Permitted Encumbrances) minimum cash balances of no
 less than $500,000, without taking into account any part of such cash
 balances already taken into account by the Guarantor and/or any other member
 of the Group and the Bank for the purposes of compliance with minimum
 liquidity requirements under, or in connection with, other loan agreements
 (i.e. excluding the Agreement) made available by the Bank to members of the
 Group or any relevant guarantees given by the Guarantor in favour of the
 Bank; 

	
 

	
 

	
 

	
5.1.7

	
 

	
Delivery of
 reports 

	
 

	
 

	
 

	
 

	
 

	
deliver to
 the Bank copies of every report, circular, notice or like document issued by
 the Guarantor to its shareholders or creditors generally subject to
 applicable obligations of confidentiality or rules of the New York Stock
 Exchange; and 

	
 

	
 

	
 

	
5.1.8

	
 

	
Provision of
 further information 

	
 

	
 

	
 

	
 

	
 

	
provide the
 Bank with such financial or other information concerning the Group, the
 Borrower, the Guarantor, the other Security Parties, the other members of the
 Group and their respective affairs as the Bank may from time to time reasonably
 require, including, without limitation, any management information,
 information relating to the position, trading and/or employment of the Ship
 and any actual or proposed purchase of vessels by any member of the Group,
 copies of all documents required of the Guarantor or its board of directors
 to disclose or certify or to file with the Securities and Exchange Commission
 of the U.S.A. or pursuant to the Sarbanes-Oxley Act of the U.S.A. and any
 other documents or information as may be reasonably required by the Bank. 

	
 

	
 

	
 

	
5.2 

	
 

	
Negative
undertakings  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The
 Guarantor undertakes that, from the date of this Guarantee and so long as any
 moneys are owing under the Agreement or the other Security Documents
 (including this Guarantee) and while all or any part of the Commitment
 remains outstanding, it will not, without the prior written consent of the
 Bank: 

	
 

	
 

	
 

	
5.2.1  

	
   

	
Negative pledge  

	
 

	
 

	
 

	
 

	
 

	
permit any
 Encumbrance (other than a Permitted Encumbrance) to subsist, arise or be
 created or extended over all or any of the shares of the Borrower to secure
 or prefer any present or future Indebtedness of the Guarantor or any other
 person; 

	
 

	
 

	
 

	
5.2.2

	
 

	
No merger 

	
 

	
 

	
 

	
 

	
 

	
merge or
 consolidate with any other person or enter into any demerger, amalgamation or
 any corporate reconstruction or redomiciliation of any kind; 

	
 

	
 

	
 

	
5.2.3

	
 

	
Other
 business 

	
 

	
 

	
 

	
 

	
 

	
undertake
 any business other than that conducted by it at the date of this Guarantee; 

13

	
 

	
 

	
 

	
 

	
5.2.4

	
 

	
Distributions
 

	
 

	
 

	
 

	
 

	
 

	
declare or
 pay any dividends or make any other distributions to any of its shareholders
 if an Event of Default has occurred or will or, in the opinion of the Bank,
 is likely to occur as a result of, or following, the declaration or payment
 of such dividends or other distributions; 

	
 

	
 

	
 

	
5.2.5

	
 

	
Shareholdings
 

	
 

	
 

	
 

	
 

	
 

	
change,
 cause or permit any change in, the legal and/or beneficial ownership of any
 of the shares in the Borrower which would result in the Borrower ceasing to
 be a wholly-owned direct Subsidiary of the Guarantor; or 

	
 

	
 

	
 

	
5.2.6

	
 

	
Financial
 year 

	
 

	
 

	
 

	
 

	
 

	
change the
 computation of its financial year from that existing on the date of this
 Guarantee (i.e. with financial year-end on 31 December). 

	
 

	
 

	
 

	
5.3

	
 

	
Financial undertakings 

	
 

	
 

	
 

	
5.3.1

	
 

	
The
 Guarantor undertakes with the Bank that, from the date of this Guarantee and
 so long as any moneys are owing under the Security Documents (including this
 Guarantee) and while all or any part of the Commitment remains outstanding,
 it will ensure that: 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Consolidated
 Adjusted Net Worth 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the
 Consolidated Adjusted Net Worth shall not be less than Two hundred million
 Dollars ($200,000,000) at any time; 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Consolidated
 Adjusted Leverage Ratio 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the
 Consolidated Adjusted Leverage Ratio shall not be higher than 0.70:1.0 at any
 time; and 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Consolidated
 Debt Service Ratio 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
the
 Consolidated Debt Service Ratio shall not be higher than 5.5:1.0 at any time.
 

	
 

	
 

	
 

	
 

	
5.3.2

	
 

	
All the
 terms defined in clause 1.2 and used in this clause 5.3, and other accounting
 terms used in this clause 5.3, are to be determined by the Bank on a
 consolidated basis and (except as items are expressly included or excluded in
 the relevant definition or provision) are used and shall be construed in
 accordance with the Applicable Accounting Principles consistently applied and
 as determined from any relevant Accounting Information and any valuations of
 the Fleet Vessels and also by reference to any other information available to
 the Bank at any relevant time.

	
 

	
 

	
 

	
5.3.3

	
 

	
Subject to
 clause 5.3.4, the compliance of the Guarantor with the undertakings set out
 in clause 5.3.1 shall be determined and tested by the Bank in its sole
 discretion on the basis of calculations made by the Bank at the end of each
 Accounting Period at the time when the relevant Accounting Information and,
 where applicable, valuations of the Fleet Vessels have been delivered to the
 Bank pursuant to clause 5.1.4 and clause 5.1.5. 

	
 

	
 

	
 

	
 

	
5.3.4

	
 

	
Notwithstanding
 the other terms of this clause 5.3 and, in particular, the time when
 compliance with the financial undertakings of clause 5.3.1 is to be tested by
 the Bank pursuant to clause 5.3.3, the Guarantor hereby undertakes that the
 financial undertakings of clause 5.3.1 will be complied with at all times
 during the whole term of each Accounting Period.

	
 

	
 

	
 

	
5.3.5

	
 

	
For the
 purposes of this clause 5.3: (i) no item shall be deducted or credited more
 than once in any calculation; and (ii) any amount expressed in a currency
 other than Dollars shall be 

14

	
 

	
 

	
 

	
 

	
 

	
converted into
  Dollars in accordance with the Applicable Accounting Principles consistently
  applied. 

	
 

	
 

	
 

	
6

	
 

	
Set-off 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
  authorises the Bank at any time following a demand made by the Bank under
  clause 2.1 and without notice to the Guarantor to apply any credit balance to
  which the Guarantor is then entitled on any account of the Guarantor with the
  Bank at any of its branches in or towards satisfaction of any sum then due
  and payable from the Guarantor to the Bank under this Guarantee. For this
  purpose the Bank is authorised to purchase with the moneys standing to the
  credit of such account such other currencies as may be necessary to effect
  such application. The Bank shall not be obliged to exercise any right given
  to it by this clause 6. The Bank shall notify the Guarantor forthwith upon
  the exercise or purported exercise of any right of set-off giving full
  details in relation thereto. 

	
 

	
 

	
 

	
7

	
 

	
Benefit of this
  Guarantee 

	
 

	
 

	
 

	
7.1

	
 

	
Benefit
  and burden 

	
 

	
 

	
 

	
 

	
 

	
This Guarantee
  shall be binding upon the Guarantor and its successors in title and shall
  enure for the benefit of the Bank and its successors in title, Assignees
  and/or Transferees.  The Guarantor
  expressly acknowledges and accepts the provisions of clause 16 of the
  Agreement and agrees that any person in favour of whom an assignment or a
  transfer is made in accordance with such clause shall be entitled to the
  benefit of this Guarantee. 

	
 

	
 

	
 

	
7.2

	
 

	
Changes
  in constitution or reorganisation of Bank 

	
 

	
 

	
 

	
 

	
 

	
For the avoidance
  of doubt and without prejudice to the provisions of clause 7.1, this
  Guarantee shall remain binding on the Guarantor notwithstanding any change in
  the constitution of the Bank or its absorption in, or amalgamation with, or
  the acquisition of all or part of its undertaking or assets by, any other
  person, or any reconstruction or reorganisation of any kind, to the intent
  that this Guarantee shall remain valid and effective in all respects in
  favour of any successor in title, Assignee or Transferee of the Bank in the same
  manner as if such successor in title, Assignee or Transferee had been named
  in this Guarantee as a party instead of, or in addition to, the Bank. 

	
 

	
 

	
 

	
7.3

	
 

	
No
  assignment by Guarantor 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor may
  not assign or transfer any of its rights or obligations under this Guarantee.
  

	
 

	
 

	
 

	
7.4

	
 

	
Disclosure
  of information 

	
 

	
 

	
 

	
 

	
 

	
The Bank may,
  without the consent of the Guarantor, disclose to a prospective assignee or
  transferee or to any other person who may propose entering into contractual
  relations with the Bank in relation to the Agreement such information about
  the Guarantor as the Bank shall consider appropriate. 

	
 

	
 

	
 

	
8

	
 

	
Notices and
  other matters 

	
 

	
 

	
 

	
8.1

	
 

	
Notices
  

	
 

	
 

	
 

	
 

	
 

	
Clause 17.1 of the
  Agreement shall apply to this Guarantee as if set out herein and every
  notice, request, demand or other communication under this Guarantee shall be
  sent: 

15

	
 

	
 

	
 

	
 

	
 

	
8.1.1

	
 

	
if to the
  Guarantor at:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
32 Karamanli
  Avenue 166
05 Voula
Greece

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Fax
  No:           +30 210
  8956900 

	
 

	
 

	
 

	
Attention:        George
  Papadopoulos

	
 

	
 

	
 

	
 

	
 

	
8.1.2

	
 

	
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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
or to such other
  address or facsimile number as is notified by the Guarantor or the Bank to
  the other party to this Guarantee. 

	
 

	
 

	
 

	
 

	
 

	
8.2

	
 

	
No
  implied waivers, remedies cumulative 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
No failure or
  delay on the part of the Bank to exercise any power, right or remedy under
  this Guarantee shall operate as a waiver thereof, nor shall any single or
  partial exercise by the Bank of any power, right or remedy preclude any other
  or further exercise thereof or the exercise of any other power, right or
  remedy.  The remedies provided in this
  Guarantee are cumulative and are not exclusive of any remedies provided by
  law. 

	
 

	
 

	
 

	
 

	
 

	
8.3

	
 

	
English
  translations 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
All certificates,
  instruments and other documents to be delivered under or supplied in
  connection with this Guarantee shall be in the English language or shall be
  accompanied by a certified English translation upon which the Bank shall be
  entitled to rely. 

	
 

	
 

	
 

	
 

	
 

	
8.4

	
 

	
Other
  guarantors 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
  agrees to be bound by this Guarantee notwithstanding that any other person
  intended to execute or to be bound by any other guarantee or assurance under
  or pursuant to the Agreement may not do so or may not be effectually bound
  and notwithstanding that such other guarantee or assurance may be determined
  or be or become invalid or unenforceable against any other person, whether or
  not the deficiency is known to the Bank. 

	
 

	
 

	
 

	
 

	
 

	
8.5

	
 

	
Expenses
  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
  agrees to reimburse the Bank on demand for all legal and other costs, charges
  and expenses on a full and unqualified indemnity basis which may be incurred
  by the Bank in relation to the enforcement of this Guarantee against the
  Guarantor. 

	
 

	
 

	
 

	
 

	
 

	
8.6

	
 

	
Partial
  invalidity 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

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

16

	
 

	
 

	
 

	
8.7

	
 

	
Maximum
  liability 

	
 

	
 

	
 

	
 

	
 

	
Anything contained
  in this Guarantee to the contrary notwithstanding, the obligations of the
  Guarantor hereunder shall be limited to a maximum aggregate amount equal to
  the greatest amount that would not render the Guarantor’s obligations
  hereunder subject to avoidance as a fraudulent transfer or conveyance under
  Section 548 of Title 11 of the United States Code or any similar provisions
  of applicable law (collectively, the “Fraudulent
  Transfer Laws”), in each case after giving effect to all other
  liabilities of  the Guarantor,
  contingent or otherwise, that are relevant under the Fraudulent Transfer Laws
  (specifically excluding, however, any liabilities of the Guarantor (a) in
  respect of inter-company Indebtedness to the Borrower or any other member of
  the Group to the extent that such Indebtedness would be discharged in an
  amount equal to the amount paid by the Guarantor hereunder and (b) under any
  guarantee of Indebtedness subordinated in right of payment to the Guaranteed
  Liabilities, which guarantee contains a limitation as to maximum amount
  similar to that set forth in this paragraph, pursuant to which the liability
  of the Guarantor hereunder is included in the liabilities taken into account
  in determining such maximum amount) and after giving effect as assets to the
  value (as determined under the applicable provisions of the Fraudulent
  Transfer Laws) of any rights to subrogation, contribution, reimbursement, indemnity
  or similar rights of the Guarantor pursuant to (i) applicable law or (ii) any
  agreement providing for an equitable allocation among the Guarantor and other
  members of the Group of obligations arising under guarantees by such parties.
  

	
 

	
 

	
 

	
9

	
 

	
Law and
  jurisdiction 

	
 

	
 

	
 

	
9.1

	
 

	
Law
  

	
 

	
 

	
 

	
 

	
 

	
This Guarantee is
  governed by, and shall be construed in accordance with, English law. 

	
 

	
 

	
 

	
9.2

	
 

	
Submission
  to jurisdiction 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
  agrees for the benefit of the Bank that any legal action or proceedings
  arising out of or in connection with this Guarantee against the Guarantor or
  any of its assets may be brought in the English courts, 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 the Guarantor further undertakes that, in the event that such
  individual passes away or cannot be found, the Guarantor hereby irrevocably
  and unconditionally authorises the Bank to designate, appoint and empower, on
  the Guarantor’s 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 the Guarantor 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. The Guarantor further agrees that
  only the courts of England and not those of any other State shall have
  jurisdiction to determine any claim which the Guarantor may have against the
  Bank arising out of or in connection with this Guarantee. 

	
 

	
 

	
 

	
9.3

	
 

	
Contracts
  (Rights of Third Parties) Act 1999 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

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

17

Schedule 1

Form of Compliance Certificate

	
 

	
 

	
To:

	
THE ROYAL BANK OF
  SCOTLAND PLC 

	
 

	
 

	
From:

	
SAFE BULKERS, INC.
  

Dated: [•]

US$30,400,000 Loan Agreement dated 1 March 2006, as amended (the “Loan
Agreement”) - Corporate Guarantee dated [•] 2008 (the “Corporate Guarantee”)

Terms defined in the Corporate Guarantee shall have the same meaning
when used herein. 

We refer to clause 5.3.1 of the Corporate Guarantee and hereby certify
that, as at [insert date of accounts]
and on the date hereof: 

	
 

	
 

	
 

	
1

	
Financial
  covenants 

	
 

	
 

	
 

	
 

	
(a)

	
the Consolidated
  Adjusted Net Worth is $[•], calculated as follows: [ ]; and 

	
 

	
 

	
 

	
 

	
(b)

	
the Consolidated
  Adjusted Leverage Ratio is [•]:1.0, calculated as follows:[ ]; and

	
 

	
 

	
 

	
 

	
(c)

	
the Consolidated
  Debt Service Ratio is [•]:1.0, calculated as follows: [ ]. 

	
 

	
 

	
 

	
 

	
[and we hereby
  confirm that the above comply with the provisions of clause 5.3.1 of the
  Guarantee.] 

	
 

	
 

	
 

	
2

	
Default
  

	
 

	
 

	
 

	
 

	
[No Default has
  occurred and is continuing] 

	
 

	
 

	
 

	
 

	
or 

	
 

	
 

	
 

	
 

	
[The following
  Default has occurred and is continuing: [provide details of Default].  [The following steps are being taken to
  remedy it: [provide
  details of steps being taken to remedy Default]]. 

	
 

	
 

	
 

	
Signed:

	
 

	
 

	
 

	

	
 

	
 

	
[Director[s]/Officer[s]]
  [or any other duly authorised representatives [or appropriate]]

	
 

	
 

	
 

	
For and on behalf
  of: 

	
 

	
SAFE
  BULKERS, INC. 

	
 

	
 

	
I hereby confirm
  and certify that the above statements are correct and complete.

	
 

	
 

	
Signed:

	
 

	
 

	
 

	

	
 

	
 

	
Chief Financial
  Officer

  For and on behalf of

  SAFE BULKERS, INC.

18

	
 

	
 

	
 

	
 

	
EXECUTED as a DEED

	
 

	
)

	
 

	
by

	
 

	
)

	
 

	
for and on behalf of

	
 

	
)

	
 

	
SAFE BULKERS, INC.

	
 

	
)

	

	
in the presence of:

	
 

	
)

	
Attorney-in-Fact

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Witness

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Address:

	
 

	
 

	
 

	
Occupation:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EXECUTED
  as a DEED

	
 

	
)

	
 

	
by

	
 

	
)

	
 

	
for and on behalf of

	
 

	
)

	
 

	
THE ROYAL BANK OF SCOTLAND PLC

	
 

	
)

	

	
in the presence of:

	
 

	
)

	
Authorised signatory

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Witness

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Address:

	
 

	
 

	
 

	
Occupation:

	
 

	
 

	
 

19Exhibit 10.50 

Private & Confidential 

Dated 23 May 2008     

	
 

	
 

	
SAFE BULKERS, INC.

	
(1)

	
 

	
 

	
 and 

	
 

	
 

	
 

	
THE ROYAL BANK OF SCOTLAND PLC 

	
(2) 

	
 

	

	
CORPORATE GUARANTEE

	

Contents

	
 

	
 

	
 

	
 

	
 

	
Clause

	
 

	
 

	
 

	
Page

	
1

	
 

	
Interpretation

	
 

	
1

	
 

	
 

	
 

	
 

	
 

	
2

	
 

	
Guarantee

	
 

	
5

	
 

	
 

	
 

	
 

	
 

	
3

	
 

	
Payments and Taxes

	
 

	
8

	
 

	
 

	
 

	
 

	
 

	
4

	
 

	
Representations
 and warranties

	
 

	
9

	
 

	
 

	
 

	
 

	
 

	
5

	
 

	
Undertakings

	
 

	
12

	
 

	
 

	
 

	
 

	
 

	
6

	
 

	
Set-off

	
 

	
15

	
 

	
 

	
 

	
 

	
 

	
7

	
 

	
Benefit of this
 Guarantee

	
 

	
15

	
 

	
 

	
 

	
 

	
 

	
8

	
 

	
Notices and other
 matters

	
 

	
15

	
 

	
 

	
 

	
 

	
 

	
9

	
 

	
Law and
 jurisdiction

	
 

	
17

	
 

	
 

	
 

	
 

	
 

	
Schedule 1 Form of
 Compliance Certificate

	
 

	
18

	
 

	
 

	
 

	
THIS
 GUARANTEE is dated 23 May 2008 and made BETWEEN:

	
 

	
 

	
 

	
(1)

	
 

	
SAFE
 BULKERS, INC. of Trust Company Complex, Ajeltake Road, Ajeltake
 Island, Majuro, Marshall Islands MH96960 (the “Guarantor”); and 

	
 

	
 

	
 

	
(2)

	
 

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

	
 

	
 

	
 

	
WHEREAS:

	
 

	
 

	
 

	
(A)

	
 

	
by a loan
 agreement dated 13 December 2007 as amended and supplemented by a
 supplemental agreement dated 23 May 2008 (together the “Agreement”) each made between (1)
 Kerasies Shipping Corporation as borrower (the “Borrower”) and (2) the Bank, the Bank has agreed, upon and
 subject to the terms and conditions of the Agreement, to make (and has made)
 available to the Borrower, a multi-currency loan facility of up to
 US$40,000,000; 

	
 

	
 

	
 

	
(B)

	
 

	
by a 1992 ISDA
 master agreement (including a schedule thereto) dated as of 13 December 2007
 (the “Master Swap Agreement”)
 and made between the Borrower and the Bank, the Bank agreed the terms and
 conditions upon which it would enter into interest rate swap or other
 derivative transactions with the Borrower in respect of the Loan, whether in
 whole or in part (as the case may be) from time to time; and 

	
 

	
 

	
 

	
(C)

	
 

	
the execution and
 delivery of this Guarantee is one of the conditions subsequent to the Bank
 continuing to make the said loan facility available under the Agreement and
 this Guarantee is the Corporate Guarantee referred to in the Agreement and it
 constitutes a Security Document. 

	
 

	
 

	
 

	
IT
 IS AGREED as follows:

	
 

	
 

	
 

	
1

	
 

	
Interpretation 

	
 

	
 

	
 

	
1.1

	
 

	
Defined
 expressions 

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee,
 unless the context otherwise requires or unless otherwise defined in this
 Guarantee, words and expressions defined in the Agreement and used in this
 Guarantee shall have the same meanings when used in this Guarantee. 

	
 

	
 

	
 

	
1.2

	
 

	
Definitions
 

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee,
 unless the context otherwise requires: 

	
 

	
 

	
 

	
 

	
 

	
“Accounting Information” means (a) the
 annual audited consolidated financial statements of the Group and (b) the
 quarterly unaudited consolidated financial statements of the Group, each as
 provided or (as the context may require) to be provided to the Bank in
 accordance with clause 5.1.4; 

	
 

	
 

	
 

	
 

	
 

	
“Accounting Period” means (a) each
 financial year of the Guarantor and (b) each financial quarter of each financial
 year of the Guarantor, for which Accounting Information is required to be
 delivered pursuant to this Guarantee; 

	
 

	
 

	
 

	
 

	
 

	
“Applicable Accounting Principles” means
 the most recent and up-to-date US GAAP applicable at any relevant time; 

	
 

	
 

	
 

	
 

	
 

	
“Bank” includes the successors in title,
 Assignees and Transferees of the Bank; 

	
 

	
 

	
 

	
 

	
 

	
“Collateral Instruments” means notes,
 bills of exchange, certificates of deposit and other negotiable and
 non-negotiable instruments, guarantees, indemnities and other assurances
 against financial loss and any other documents or instruments which contain
 or evidence an obligation (with or without security) to pay, discharge or be
 responsible directly or indirectly for, 

1

	
 

	
 

	
any indebtedness
 or liabilities of the Borrower or any other person liable and includes any
 documents or instruments creating or evidencing a mortgage, charge (whether
 fixed or floating), pledge, lien, hypothecation, assignment, trust
 arrangement or security interest of any kind; 

	
 

	
 

	
“Compliance Certificate” means a
 certificate in the form set out in schedule 1; 

	
 

	
 

	
“Consolidated Adjusted Leverage Ratio”
 means, as of the last day of an Accounting Period or on any other day, the
 ratio of (a) the Consolidated Debt to (b) the Consolidated Total Assets, as
 stated in the then most recent and relevant Accounting Information; 

	
 

	
 

	
“Consolidated Adjusted Net Worth” means the aggregate of the amounts
 paid-up or credited as paid-up on the Guarantor’s issued share capital and
 the amount of the consolidated capital and revenue reserves of the Group
 (including any share premium account, capital redemption reserve fund and any
 credit balance on the consolidated profit and loss account of the Group) all
 as shown by the latest consolidated balance sheet and profit and loss account
 of the Group delivered under this Guarantee but after: 

	
 

	
 

	
(a)

	
deducting any
 debit balance on such consolidated profit and loss account; 

	
 

	
 

	
(b)

	
deducting any
 amount shown in such consolidated balance sheet in respect of goodwill (including
 goodwill arising on consolidation) and other intangible assets; 

	
 

	
 

	
(c)

	
deducting (so far
 as not otherwise excluded as attributable to minority interests) a sum equal
 to the aggregate of the amount by which the book value of any fixed assets of
 any member of the Group has been written up after 31 December 2007 (or, in
 the case of a company becoming a subsidiary after that date, the date on
 which that company became a subsidiary) by way of revaluation. For the
 purposes of this paragraph (c) any increase in the book value of any fixed
 asset resulting from its transfer by one member of the Group to another
 member of the Group shall be deemed to result from a writing up of its book
 value by way of revaluation; 

	
 

	
 

	
(d)

	
excluding amounts
 set aside for taxation as at the date of such balance sheet and making such
 adjustments as may be appropriate in respect of any significant additional
 taxation expected to result from transactions carried out by any member of
 the Group after such date and not reflected in that balance sheet; 

	
 

	
 

	
(e)

	
deducting all
 amounts attributable to minority interests in Subsidiaries; 

	
 

	
 

	
(f)

	
making such
 adjustments as may be appropriate in respect of any variation in the amount
 of such paid up share capital or any such reserves after the date of the
 relevant balance sheet (but so that no such adjustment shall be made in
 respect of any variation in profit and loss account except to the extent of
 any profit or loss, calculated on a cumulative basis, recorded in the
 consolidated profit and loss account of the Group delivered to the Bank
 before the date of this Guarantee, or under clause 5.1.4 in respect of any
 subsequent period); 

	
 

	
 

	
(g)

	
making such
 adjustments as may be appropriate in respect of any distribution declared,
 recommended or made by any member of the Group (otherwise than attributable
 directly or indirectly to the Guarantor) out of profits earned up to and
 including the date of the latest audited balance sheet of that member of the
 Group to the extent that such distribution is not provided for in that
 balance sheet; 

	
 

	
 

	
(h)

	
making such
 adjustments as may be appropriate in respect of any variation in the
 interests of the Guarantor in its Subsidiaries since the date of the latest
 consolidated balance sheet of the Group; 

	
 

	
 

	
(i)

	
if the calculation
 is required for the purpose of or in connection with a transaction under or
 in connection with which any company is to become or cease to be a Subsidiary
 of the 

2

	
 

	
 

	
 

	
 

	
Guarantor, making
 all such adjustments as would be appropriate if that transaction had been
 carried into effect;

	
 

	
 

	
 

	
(j)

	
adding the
 relevant excess in the event that the Fleet Market Value exceeds the book
 values of the Fleet Vessels as shown in the then most recent and relevant
 Accounting Information; 

	
 

	
 

	
 

	
(k)

	
deducting the
 relevant shortfall in the event that the Fleet Market Value is less than the
 book values of the Fleet Vessels as shown in the then most recent and
 relevant Accounting Information; and 

	
 

	
 

	
 

	
(l)

	
making such
 adjustments as may be appropriate in the opinion of the Bank in order that
 the above amounts are calculated in accordance with the Applicable Accounting
 Principles; 

	
 

	
 

	
 

	
“Consolidated Current Assets” means, as of
 the last day of an Accounting Period or on any other day, the aggregate of
 the cash and marketable securities, trade and other receivables from persons
 other than a member of the Group realisable within one (1) year, inventories
 and prepaid expenses which are to be charged to income within one (1) year
 less any doubtful debts and any discounts or allowances given, in each case
 in relation to the Group, as stated in the then most recent and relevant
 Accounting Information; 

	
 

	
 

	
 

	
“Consolidated Debt” means, as of the last
 day of an Accounting Period or on any other day, the aggregate amount of Debt
 owed by the members of the Group (other than any Debt owing by any member of
 the Group to another member of the Group), as stated in the then most recent
 and relevant Accounting Information; 

	
 

	
 

	
 

	
“Consolidated Debt Service Ratio” means, as of the last day of an
 Accounting Period or on any other day, the ratio of Consolidated Debt to
 Consolidated EBITDA in respect of the Rolling Four Quarter Period ending on
 such day, each as stated in the then most recent and relevant Accounting
 Information; 

	
 

	
 

	
 

	
“Consolidated EBITDA” means, as of the
 last day of an Accounting Period or on any other day, the consolidated net
 pre-taxation profits of the Group in respect of the Rolling Four Quarter
 Period ending on such day, as stated in the then most recent and relevant
 Accounting Information, 

	
 

	
 

	
 

	
(a)

	
including the net
 pre-taxation profits of a member of the Group or business or assets acquired
 during that Rolling Four Quarter Period for the part of that Rolling Four
 Quarter Period when it was not a member of the Group and/or the business or
 assets were not owned by a member of the Group; but 

	
 

	
 

	
 

	
(b)

	
excluding the net
 pre-taxation profits attributable to any member of the Group or to any
 business or assets sold during that Rolling Four Quarter Period: 

	
 

	
 

	
 

	
and all as
 adjusted by: 

	
 

	
 

	
 

	
 

	
(i)

	
adding back
 Consolidated Net Interest Expense;

	
 

	
 

	
 

	
 

	
(ii)

	
taking no account
 of any exceptional or extraordinary item;

	
 

	
 

	
 

	
 

	
(iii)

	
adding back
 depreciation and amortisation; and

	
 

	
 

	
 

	
 

	
(iv)

	
taking no account
 of any revaluation of an asset or any loss or gain over book value arising on
 the disposal of an asset (otherwise than in the ordinary course of trading)
 by a member of the Group during that Rolling Four Quarter Period;

3

	
 

	
 

	
“Consolidated Net Interest Expense” means,
 as of the last day of an Accounting Period or on any other day, all interest
 and other financing charges incurred or paid by the Group minus all interest
 income received by the Group in respect of the Rolling Four Quarter Period
 ending on such day, as stated in the then most recent and relevant Accounting
 Information; 

	
 

	
 

	
“Consolidated Tangible Fixed Assets”
 means, as of the last day of an Accounting Period or on any other day, the
 aggregate of (a) the Fleet Market Value and (b) the book value (less
 depreciation computed in accordance with the Applicable Accounting Principles
 consistently applied) on a consolidated basis of all other tangible fixed
 assets of the Group (i.e. excluding Fleet Vessels), as stated in the then
 most recent and relevant Accounting Information; 

	
 

	
 

	
“Consolidated Total Assets” means, at any
 relevant time, the aggregate of Consolidated Current Assets and Consolidated
 Tangible Fixed Assets; 

	
 

	
 

	
“Debt” means, in relation to any member of
 the Group (the “debtor”): 

	
 

	
 

	
(a)

	
Borrowed Money of
 the debtor; 

	
 

	
 

	
(b)

	
liability for any
 credit to the debtor from a supplier of goods or services or under any
 instalment purchase or payment plan or other similar arrangement; 

	
 

	
 

	
(c)

	
contingent liabilities
 of the debtor (including without limitation any taxes or other payments under
 dispute) which have been or, under the Applicable Accounting Principles
 consistently applied, should be recorded in the notes to the Accounting
 Information; 

	
 

	
 

	
(d)

	
deferred tax of
 the debtor; and 

	
 

	
 

	
(e)

	
liability under a
 guarantee, indemnity or similar obligation entered into by the debtor in
 respect of a liability of another person who is not a member of the Group
 which would fall within (a) to (d) above if the references to the debtor
 referred to the other person; 

	
 

	
 

	
“Fleet Market Value” means, as of the date
 of calculation, the aggregate market value of the Fleet Vessels as most
 recently determined pursuant to valuations obtained and made in accordance
 with clause 5.1.5 of this Guarantee and the provisions of clause 9.2.2 of the
 Agreement (at the cost of the Guarantor) (and for the purposes of this
 Guarantee and the calculation of Fleet Market Value, such clause 9.2.2 shall
 apply to this Guarantee mutatis mutandis); 

	
 

	
 

	
“Fleet Vessels” means the vessels
 (including, but not limited to, the Ship) from time to time owned by the
 members of the Group and “Fleet Vessel”
 means any of them; 

	
 

	
 

	
“Group” means, together, the Guarantor and
 its Subsidiaries from time to time (including, for the avoidance of doubt,
 the Borrower) and “member of the Group”
 shall be construed accordingly; 

	
 

	
 

	
“Guarantee” includes each separate or
 independent stipulation or agreement by the Guarantor contained in this
 Guarantee; 

	
 

	
 

	
“Guaranteed Liabilities” means all moneys,
 obligations and liabilities expressed to be guaranteed by the Guarantor in
 clause 2.1; 

	
 

	
 

	
“Guarantor” includes the Guarantor’s
 successors in title; 

	
 

	
 

	
“Incapacity” means, in relation to a
 person, the death, bankruptcy, unsoundness of mind, insolvency, liquidation,
 dissolution, winding-up, administration, receivership, amalgamation,
 reconstruction or other incapacity of that person whatsoever (and, in the
 case of a partnership, includes the termination or change in the composition
 of the partnership); 

 

4

	
 

	
 

	
 

	
 

	
 

	
“Listing” means the successful completion
 of the initial public offering of approximately 20% of the shares of the
 Guarantor, and the listing of the shares of the Guarantor on the New York
 Stock Exchange;

	
 

	
 

	
 

	
 

	
 

	
“Relevant Jurisdiction” means any jurisdiction
 in which or where the Guarantor is incorporated, resident, domiciled, has a
 permanent establishment, carries on or has a place of business or is
 otherwise effectively connected; and

	
 

	
 

	
 

	
 

	
 

	
“Rolling Four Quarter Period” means, as of
 the last day of an Accounting Period or on any other day, the twelve-month
 period ending on such day.

	
 

	
 

	
 

	
1.3

	
 

	
Headings
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
1.4

	
 

	
Construction
 of certain terms 

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee,
 unless the context otherwise requires:

	
 

	
 

	
 

	
1.4.1

	
 

	
references to
 clauses are to be construed as references to the clauses of this Guarantee; 

	
 

	
 

	
 

	
1.4.2

	
 

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

	
 

	
 

	
 

	
1.4.3

	
 

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

	
 

	
 

	
 

	
1.4.4

	
 

	
references to a
 time of day are to London time; 

	
 

	
 

	
 

	
1.4.5

	
 

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

	
 

	
 

	
 

	
1.4.6

	
 

	
references to a “guarantee” include references to an
 indemnity or other assurance against financial loss including, without
 limitation, any 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 

	
 

	
 

	
 

	
1.4.7

	
 

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

	
 

	
 

	
 

	
2

	
 

	
Guarantee 

	
 

	
 

	
 

	
2.1

	
 

	
Covenant
 to pay 

	
 

	
 

	
 

	
 

	
 

	
In consideration
 of the Bank making or continuing loans or advances to, or otherwise giving
 credit or granting banking facilities or accommodation or granting time to,
 the Borrower pursuant to the Agreement and/or the Master Swap Agreement, the
 Guarantor hereby guarantees to pay to the Bank, on demand by the Bank all
 moneys and discharge all obligations and liabilities now or hereafter due,
 owing or incurred by the Borrower to the Bank under or pursuant to the
 Agreement, the Master Swap Agreement and the other Security Documents when
 the same become due for payment or discharge whether by acceleration or
 otherwise, and whether such moneys, obligations or liabilities are express or
 implied, present, future or contingent, joint or several, incurred as
 principal or surety, originally owing to the Bank or purchased or otherwise
 acquired by it, denominated in Dollars or in any other currency, or incurred
 on any banking account or in any other manner whatsoever.

5

	
 

	
 

	
 

	
 

	
 

	
Such liabilities
 shall, without limitation, include interest (as well after as before
 judgment) to date of payment at such rates and upon such terms as may from
 time to time be agreed, commission, fees and other charges and all legal and
 other costs, charges and expenses on a full and unqualified indemnity basis
 which may be incurred by the Bank in relation to any such moneys, obligations
 or liabilities or generally in respect of the Borrower, the Guarantor or any
 Collateral Instrument.

	
 

	
 

	
 

	
2.2

	
 

	
Guarantor
 as principal debtor; indemnity 

	
 

	
 

	
 

	
 

	
 

	
As a separate and
 independent stipulation, the Guarantor agrees that if any purported
 obligation or liability of the Borrower which would have been the subject of
 this Guarantee had it been valid and enforceable is not or ceases to be valid
 or enforceable against the Borrower on any ground whatsoever whether or not
 known to the Bank (including, without limitation, any irregular exercise or
 absence of any corporate power or lack of authority of, or breach of duty by,
 any person purporting to act on behalf of the Borrower or any legal or other
 limitation, whether under the Limitation Acts or otherwise or any disability
 or Incapacity or any change in the constitution of the Borrower) the
 Guarantor shall nevertheless be liable to the Bank in respect of that
 purported obligation or liability as if the same were fully valid and
 enforceable and the Guarantor were the principal debtor in respect thereof.
 The Guarantor hereby agrees to keep the Bank fully indemnified on demand
 against all damages, losses, costs and expenses arising from any failure of
 the Borrowers or either of them to perform or discharge any such purported
 obligation or liability.

	
 

	
 

	
 

	
2.3

	
 

	
Statements
 of account conclusive 

	
 

	
 

	
 

	
 

	
 

	
Any statement of
 account, signed as correct by an officer of the Bank, showing the amount of
 the Guaranteed Liabilities shall, in the absence of manifest error, be
 binding and conclusive on and against the Guarantor.

	
 

	
 

	
 

	
2.4

	
 

	
No
 security taken by Guarantor 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
 warrants that it has not taken or received, and undertakes that until all the
 Guaranteed Liabilities of the Borrower have been paid or discharged in full,
 it will not take or receive, the benefit of any security from the Borrowers
 or either of them or any other person in respect of its obligations under
 this Guarantee.

	
 

	
 

	
 

	
2.5

	
 

	
Interest
 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
 agrees to pay interest on each amount demanded of it under this Guarantee from
 the date of such demand until payment (as well after as before judgment) at
 the rate specified in clause 3.4 of the Agreement which shall apply to this
 Guarantee mutatis mutandis. Such interest shall be compounded at the end of
 each period determined for this purpose by the Bank in the event of it not
 being paid when demanded but without prejudice to the Bank’s right to require
 payment of such interest.

	
 

	
 

	
 

	
2.6

	
 

	
Continuing
 security and other matters 

	
 

	
 

	
 

	
 

	
 

	
This Guarantee
 shall:

	
 

	
 

	
 

	
2.6.1

	
 

	
secure the ultimate
 balance from time to time owing to the Bank by the Borrower and shall be a
 continuing security, notwithstanding any settlement of account or other
 matter whatsoever; 

	
 

	
 

	
 

	
2.6.2

	
 

	
be in addition to
 any present or future Collateral Instrument, right or remedy held by or
 available to the Bank; and 

	
 

	
 

	
 

	
2.6.3

	
 

	
not be in any way
 prejudiced or affected by the existence of any such Collateral Instrument,
 rights or remedies or by the same becoming wholly or in part void, voidable
 or unenforceable on any ground whatsoever or by the Bank dealing with,
 exchanging, varying or failing to perfect or 

6

	
 

	
 

	
 

	
 

	
 

	
enforce any of the
 same or giving time for payment or indulgence or compounding with any other
 person liable.

	
 

	
 

	
 

	
2.7

	
 

	
Liability
 unconditional 

	
 

	
 

	
 

	
 

	
 

	
The liability of
 the Guarantor shall not be affected nor shall this Guarantee be discharged or
 reduced by reason of:

	
 

	
 

	
 

	
2.7.1

	
 

	
the Incapacity or
 any change in the name, style or constitution of the Borrower or any other
 person liable; 

	
 

	
 

	
 

	
2.7.2

	
 

	
the Bank granting
 any time, indulgence or concession to, or compounding with, discharging,
 releasing or varying the liability of, the Borrower or any other person
 liable or renewing, determining, varying or increasing any accommodation,
 facility or transaction or otherwise dealing with the same in any manner
 whatsoever or concurring in, accepting or varying any compromise, arrangement
 or settlement or omitting to claim or enforce payment from the Borrower or
 any other person liable; or 

	
 

	
 

	
 

	
2.7.3

	
 

	
any act or omission
 which would not have discharged or affected the liability of the Guarantor
 had it been a principal debtor instead of a guarantor or by anything done or
 omitted which but for this provision might operate to exonerate the
 Guarantor. 

	
 

	
 

	
 

	
2.8

	
 

	
Collateral
 Instruments 

	
 

	
 

	
 

	
 

	
 

	
The Bank shall not
 be obliged to make any claim or demand on the Borrower or to resort to any
 Collateral Instrument or other means of payment now or hereafter held by or
 available to it before enforcing this Guarantee and no action taken or
 omitted by the Bank in connection with any such Collateral Instrument or
 other means of payment shall discharge, reduce, prejudice or affect the
 liability of the Guarantor under this Guarantee nor shall the Bank be obliged
 to apply any money or other property received or recovered in consequence of
 any enforcement or realisation of any such Collateral Instrument or other
 means of payment in reduction of the Guaranteed Liabilities.

	
 

	
 

	
 

	
2.9

	
 

	
Waiver
 of Guarantor’s rights 

	
 

	
 

	
 

	
 

	
 

	
Until all the
 Guaranteed Liabilities have been paid, discharged or satisfied in full (and
 notwithstanding payment of a dividend in any liquidation or under any
 compromise or arrangement) the Guarantor agrees that, without the prior
 written consent of the Bank, it will not:

	
 

	
 

	
 

	
2.9.1

	
 

	
exercise its
 rights of subrogation, reimbursement and indemnity against the Borrower or
 any other person liable; 

	
 

	
 

	
 

	
2.9.2

	
 

	
demand or accept
 repayment in whole or in part of any indebtedness now or hereafter due to the
 Guarantor from the Borrower or from any other person liable or demand or
 accept any Collateral Instrument in respect of the same or dispose of the
 same; 

	
 

	
 

	
 

	
2.9.3

	
 

	
take any step to
 enforce any right against the Borrower or any other person liable in respect
 of any Guaranteed Liabilities; or 

	
 

	
 

	
 

	
2.9.4

	
 

	
claim any set-off
 or counterclaim against the Borrower or any other person liable or claim or
 prove in competition with the Bank in the liquidation of the Borrower or any
 other person liable or have the benefit of, or share in, any payment from or
 composition with, the Borrower or any other person liable or any other
 Collateral Instrument now or hereafter held by the Bank for any Guaranteed
 Liabilities or for the obligations or liabilities of any other person liable
 but so that, if so directed by the Bank, it will prove for the whole or any
 part of its claim in the liquidation of the Borrower or any other person
 liable on terms that the benefit of such proof and of all money received by
 it in respect thereof shall be held on trust for the Bank and applied in or
 towards discharge of the Guaranteed Liabilities in such manner as the Bank
 shall deem appropriate. 

7

	
 

	
 

	
 

	
2.10

	
 

	
Suspense
 accounts 

	
 

	
 

	
 

	
 

	
 

	
Any money received
 in connection with this Guarantee (whether before or after any Incapacity of
 the Borrower or the Guarantor) may be placed to the credit of a suspense
 account with a view to preserving the rights of the Bank to prove for the
 whole of its claims against the Borrower or any other person liable or may be
 applied in or towards satisfaction of such of the Guaranteed Liabilities as
 the Bank may from time to time conclusively determine in its absolute
 discretion.

	
 

	
 

	
 

	
2.11

	
 

	
Settlements
 conditional 

	
 

	
 

	
 

	
 

	
 

	
Any release,
 discharge or settlement between the Guarantor and the Bank shall be
 conditional upon no security, disposition or payment to the Bank by the
 Borrower or any other person liable being void, set aside or ordered to be
 refunded pursuant to any enactment or law relating to bankruptcy,
 liquidation, administration or insolvency or for any other reason whatsoever
 and if such condition shall not be fulfilled the Bank shall be entitled to
 enforce this Guarantee subsequently as if such release, discharge or
 settlement had not occurred and any such payment had not been made.

	
 

	
 

	
 

	
2.12

	
 

	
Guarantor
 to deliver up certain property 

	
 

	
 

	
 

	
 

	
 

	
If, contrary to
 clauses 2.4 or 2.9 the Guarantor takes or receives the benefit of any
 security or receives or recovers any money or other property, such security,
 money or other property shall be held on trust for the Bank and shall be
 delivered to the Bank on demand.

	
 

	
 

	
 

	
2.13

	
 

	
Retention
 of this Guarantee 

	
 

	
 

	
 

	
 

	
 

	
The Bank shall be
 entitled to retain this Guarantee after as well as before the payment or
 discharge of all the Guaranteed Liabilities for such period as the Bank may
 determine whereupon the Bank shall return this Guarantee to the Guarantor.

	
 

	
 

	
 

	
3

	
 

	
Payments and
 Taxes 

	
 

	
 

	
 

	
3.1

	
 

	
No
 set off or counterclaim 

	
 

	
 

	
 

	
 

	
 

	
All payments to be
 made by the Guarantor under this Guarantee shall be made in full, without any
 set-off or counterclaim whatsoever and, subject as provided in clause 3.2,
 free and clear of any deductions or withholdings, in Dollars or (if
 applicable) in the relevant Optional Currency in which they are denominated
 (except for charges or expenses which shall be paid in the currency in which
 they are incurred) on the due date to such account of the Bank as it may
 specify in writing to the Guarantor from time to time.

	
 

	
 

	
 

	
3.2

	
 

	
Grossing
 up for Taxes 

	
 

	
 

	
 

	
 

	
 

	
If at any time the
 Guarantor is required to make any deduction or withholding in respect of
 Taxes from any payment due under this Guarantee for the account of the Bank,
 the sum due from the Guarantor in respect of such payment shall be increased
 to the extent necessary to ensure that, after the making of such deduction or
 withholding, the Bank receives on the due date for such payment (and retains,
 free from any liability in respect of such deduction or withholding) a net
 sum equal to the sum which it would have received had no such deduction or
 withholding been required to be made and the Guarantor shall indemnify the
 Bank against any losses or costs incurred by it by reason of any failure of
 the Guarantor to make any such deduction or withholding or by reason of any
 increased payment not being made on the due date for such payment. The
 Guarantor shall promptly deliver to the Bank any receipts, certificates or
 other proof evidencing the amounts (if any) paid or payable in respect of any
 deduction or withholding as aforesaid.

8

	
 

	
 

	
 

	
3.3

	
 

	
Currency
 indemnity 

	
 

	
 

	
 

	
 

	
 

	
If any sum due
 from the Guarantor under this Guarantee or any order or judgment given or
 made in relation hereto has to be converted from the currency (the “first currency”) in which the same is
 payable under this Guarantee or under such order or judgment into another
 currency (the “second currency”)
 for the purpose of (a) making or filing a claim or proof against the
 Guarantor, (b) obtaining an order or judgment in any court or other tribunal
 or (c) enforcing any order or judgment given or made in relation to this
 Guarantee, the Guarantor shall indemnify and hold harmless the Bank from and
 against any loss suffered as a result of any difference between (i) the rate
 of exchange used for such purpose to convert the sum in question from the
 first currency into the second currency and (ii) the rate or rates of
 exchange at which the Bank may in the ordinary course of business purchase
 the first currency with the second currency upon receipt of a sum paid to it
 in satisfaction, in whole or in part, of any such order, judgment, claim or
 proof. Any amount due from the Guarantor under this clause 3.3 shall be due
 as a separate debt and shall not be affected by judgment being obtained for
 any other sums due under or in respect of this Guarantee and the term “rate of exchange” includes any premium
 and costs of exchange payable in connection with the purchase of the first
 currency with the second currency.

	
 

	
 

	
 

	
4

	
 

	
Representations
 and warranties 

	
 

	
 

	
 

	
4.1

	
 

	
Continuing
 representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
 represents and warrants that:

	
 

	
 

	
 

	
4.1.1

	
 

	
Due incorporation 

	
 

	
 

	
 

	
 

	
 

	
the Guarantor is
 duly incorporated and validly existing under the laws of the Marshall Islands
 as a Marshall Islands corporation and has power to carry on its business as
 it is now being conducted and to own its property and other assets;

	
 

	
 

	
 

	
4.1.2

	
 

	
Corporate power to
 guarantee 

	
 

	
 

	
 

	
 

	
 

	
the Guarantor has
 power to execute, deliver and perform its obligations under this Guarantee
 and under the other Security Documents and the Underlying Documents to which
 it is or is to be a party; all necessary corporate, shareholder and other
 action has been taken to authorise the execution, delivery and performance of
 the same and no limitation on the powers of the Guarantor to borrow or give
 guarantees will be exceeded as a result of this Guarantee;

	
 

	
 

	
 

	
4.1.3

	
 

	
Binding
 obligations 

	
 

	
 

	
 

	
 

	
 

	
this Guarantee and
 each of the other Security Documents and the Underlying Documents to which it
 is or is to be a party constitutes valid and legally binding obligations of
 the Guarantor enforceable in accordance with its terms;

	
 

	
 

	
 

	
4.1.4

	
 

	
No conflict with
 other obligations 

	
 

	
 

	
 

	
 

	
 

	
the execution and
 delivery of, the performance of its obligations under, and compliance with
 the provisions of, this Guarantee and each of the other Security Documents
 and the Underlying Documents to which it is or is to be a party, by the
 Guarantor will not (i) contravene any existing applicable law, statute, rule
 or regulation or any judgment, decree or permit to which the Guarantor 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 the
 Guarantor is a party or is subject or by which it or any of its property is
 bound, (iii) contravene or conflict with any provision of the Guarantor’s
 constitutional documents or (iv) result in the creation or imposition of or
 oblige the Guarantor to create any Encumbrance on any of the Guarantor’s
 undertakings, assets, rights or revenues;

9

	
 

	
 

	
 

	
4.1.5

	
 

	
No litigation 

	
 

	
 

	
 

	
 

	
 

	
no litigation,
 arbitration or administrative proceeding is taking place, pending or, to the
 knowledge of the officers of the Guarantor, threatened against the Guarantor
 or any of its Subsidiaries which could have a material adverse effect on the
 business, assets or financial condition of the Guarantor;

	
 

	
 

	
 

	
4.1.6

	
 

	
No filings
 required 

	
 

	
 

	
 

	
 

	
 

	
it is not
 necessary to ensure the legality, validity, enforceability or admissibility
 in evidence of this Guarantee or any of the other Security Documents and the
 Underlying Documents to which the Guarantor is or is to be a party, 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 Guarantee or any of the other Security
 Documents and the Underlying Documents to which the Guarantor is or is to be
 a party and this Guarantee is in proper form for its enforcement in the
 courts of each Relevant Jurisdiction;

	
 

	
 

	
 

	
4.1.7

	
 

	
Choice of law 

	
 

	
 

	
 

	
 

	
 

	
the choice by the
 Guarantor of English law to govern this Guarantee or any of the other
 Security Documents and the Underlying Documents to which the Guarantor is or
 is to be a party and the submission by the Guarantor to the non-exclusive
 jurisdiction of the English courts are valid and binding;

	
 

	
 

	
 

	
4.1.8

	
 

	
No immunity 

	
 

	
 

	
 

	
 

	
 

	
neither the
 Guarantor nor any of its assets is entitled to immunity on the grounds of
 sovereignty or otherwise from any legal action or proceeding (which shall
 include, without limitation, suit, attachment prior to judgment, execution or
 other enforcement);

	
 

	
 

	
 

	
4.1.9

	
 

	
Consents obtained 

	
 

	
 

	
 

	
 

	
 

	
every consent,
 authorisation, licence or approval of, or registration with or declaration
 to, governmental or public bodies or authorities or courts required by the
 Guarantor to authorise, or required by the Guarantor in connection with, the
 execution, delivery, validity, enforceability or admissibility in evidence of
 this Guarantee or any of the other Security Documents and the Underlying
 Documents to which the Guarantor is or is to be a party, or the performance
 by the Guarantor of its obligations under this Guarantee or any of the other
 Security Documents and the Underlying Documents to which the Guarantor is or
 is to be a party, has been obtained or made and is in full force and effect
 and there has been no default in the observance of the conditions or
 restrictions (if any) imposed in, or in connection with, any of the same; and

	
 

	
 

	
 

	
4.1.10

	
 

	
No material
 adverse change 

	
 

	
 

	
 

	
 

	
 

	
there has been no
 material adverse change in the financial position of the Guarantor or the
 consolidated financial position of the Group from that described by or on
 behalf of the Borrowers and/or the Guarantor to the Bank in the negotiation
 of the Agreement and this Guarantee.

	
 

	
 

	
 

	
4.2

	
 

	
Initial
 representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
 further represents and warrants that as of the date of the Listing:

	
 

	
 

	
 

	
4.2.1

	
 

	
Pari passu 

	
 

	
 

	
 

	
 

	
 

	
the obligations of
 the Guarantor under this Guarantee are direct, general and unconditional
 obligations of the Guarantor and rank at least pari passu with all other
 present and future

10

	
 

	
 

	
 

	
 

	
 

	
unsecured and
 unsubordinated Indebtedness of the Guarantor with the exception of any
 obligations which are mandatorily preferred by law and not by contract;

	
 

	
 

	
 

	
4.2.2

	
 

	
No default under
 other Indebtedness 

	
 

	
 

	
 

	
 

	
 

	
the Guarantor is
 not (nor would with the giving of notice or lapse of time or the satisfaction
 of any other condition or any combination thereof be) in breach of or in
 default under any agreement relating to Indebtedness to which it is a party
 or by which it may be bound;

	
 

	
 

	
 

	
4.2.3

	
 

	
Information 

	
 

	
 

	
 

	
 

	
 

	
the information,
 exhibits and reports furnished by the Guarantor to the Bank in connection or
 with the negotiation and preparation of this Guarantee are true and accurate
 in all material respects and not misleading, do not omit material facts and
 all reasonable enquiries have been made to verify the facts and statements
 contained therein; there are no other facts the omission of which would make
 any fact or statement therein misleading;

	
 

	
 

	
 

	
4.2.4

	
 

	
No withholding
 Taxes 

	
 

	
 

	
 

	
 

	
 

	
no Taxes are
 imposed by withholding or otherwise on any payment to be made by the
 Guarantor under this Guarantee or any of the other Security Documents and the
 Underlying Documents to which the Guarantor is or is to be a party, or are
 imposed on or by virtue of the execution or delivery by the Guarantor of this
 Guarantee or any of the other Security Documents and the Underlying Documents
 to which the Guarantor is or is to be a party or any document or instrument
 to be executed or delivered under this Guarantee or such Security Documents;

	
 

	
 

	
 

	
4.2.5

	
 

	
No Default 

	
 

	
 

	
 

	
 

	
 

	
no
 Default has occurred and is continuing; and

	
 

	
 

	
 

	
4.2.6 

	
 

	
Shareholdings 

	
 

	
 

	
 

	
 

	
 

	
the Borrower is a
 wholly-owned direct Subsidiary of the Guarantor and no less than 75% of all
 the issued share capital of the Guarantor are ultimately beneficially owned
 by the Hadjioannou Family.

	
 

	
 

	
 

	
4.3

	
 

	
Repetition
 of representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
On and as of each
 day from the date of this Guarantee until all moneys due or owing, whether
 actually or contingently, under the Agreement and/or the other Security Documents
 (including this Guarantee) have been paid in full and while all or any part
 of the Commitment remains outstanding, the Guarantor shall:

	
 

	
 

	
 

	
4.3.1

	
 

	
be deemed to
 repeat the representations and warranties in clause 4.1 as if made with
 reference to the facts and circumstances existing on such day; and 

	
 

	
 

	
 

	
4.3.2

	
 

	
be deemed to
 further represent and warrant to the Bank that the then latest audited
 financial statements delivered to the Bank under this Guarantee (if any) have
 been prepared in accordance with the Applicable Accounting Principles which
 have been consistently applied and present fairly and accurately the
 consolidated financial position of the Group as at the end of the financial
 period to which the same relate and the consolidated results of the
 operations of the Group for the financial period to which the same relate
 and, as at the end of such financial period, neither the Guarantor nor any
 other member of the Group had any significant liabilities (contingent or
 otherwise) or any unrealised or anticipated losses which are not disclosed
 by, or reserved against or provided for in, such financial statements. 

11

	
 

	
 

	
 

	
5

	
 

	
Undertakings 

	
 

	
 

	
 

	
5.1

	
 

	
General
 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
 undertakes that, from the date of this Guarantee and so long as any moneys
 are owing, whether actually or contingently, under the Agreement or the other
 Security Documents (including this Guarantee) and while all or any part of
 the Commitment remains outstanding, it will:

	
 

	
 

	
 

	
5.1.1

	
 

	
Notice of default 

	
 

	
 

	
 

	
 

	
 

	
promptly inform
 the Bank of any occurrence of which it becomes aware which might adversely
 affect its ability to perform its obligations under this Guarantee and each
 of the other Security Documents and the Underlying Documents to which the
 Guarantor is or is to be a party, and of any Default forthwith upon becoming
 aware thereof and will from time to time, if so requested by the Bank,
 confirm to the Bank in writing that, save as otherwise stated in such
 confirmation, no Default has occurred and is continuing;

	
 

	
 

	
 

	
5.1.2

	
 

	
Consents and
 licences 

	
 

	
 

	
 

	
 

	
 

	
without prejudice
 to clause 4.1, obtain or cause to be obtained, maintain in full force and
 effect and comply in all material respects with the conditions and
 restrictions (if any) imposed in, or in connection with, every consent,
 authorisation, licence or approval of governmental or public bodies or
 authorities or courts and do, or cause to be done, all other acts and things
 which may from time to time be necessary or desirable under applicable law
 for the continued due performance of all its obligations under this
 Guarantee;

	
 

	
 

	
 

	
5.1.3

	
 

	
Pari passu 

	
 

	
 

	
 

	
 

	
 

	
ensure that its
 obligations under this Guarantee shall, without prejudice to the provisions
 of clause 5.2, at all times rank at least pari passu with all its other
 present and future unsecured and unsubordinated Indebtedness with the
 exception of any obligations which are mandatorily preferred by law and not
 by contract;

	
 

	
 

	
 

	
5.1.4

	
 

	
Financial
 statements 

	
 

	
 

	
 

	
 

	
 

	
prepare or cause
 to be prepared:

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
audited
 consolidated financial statements of the Group in accordance with the
 Applicable Accounting Principles consistently applied in respect of each
 financial year; and 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
unaudited
 consolidated financial statements of the Group in accordance with the
 Applicable Accounting Principles consistently applied in respect of each
 financial quarter of each financial year, 

	
 

	
 

	
 

	
 

	
 

	
 

	
and, in each case,
 deliver as many copies of the same as the Bank may reasonably require as soon
 as practicable but not later than one hundred and eighty (180) days (in the
 case of audited statements) and sixty (60) days (in the case of unaudited
 statements) after the end of the financial period to which they relate;

	
 

	
 

	
 

	
 

	
5.1.5

	
 

	
Valuations and
 Compliance Certificate

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
deliver or cause
 to be delivered to the Bank valuations (dated not earlier than 30 days
 previously) of each Fleet Vessel prepared in accordance with, and in the
 manner specified in, clause 9.2.2 of the Agreement (at the cost of the
 Guarantor) at the time when any annual or semi-annual consolidated financial
 statements of the Group are delivered to the Bank in accordance with clause
 5.1.4 (and clause 9.2.2 of the 

12

	
 

	
 

	
 

	
 

	
 

	 	
 

	
Agreement shall apply mutatis
  mutandis hereto for the purpose of the valuation of Fleet Vessels); and

	
 

	 	
 

	
 

	
 

	 	
(b)

	
deliver to the Bank, a Compliance
  Certificate for the relevant period executed by the Guarantor and
  counter-signed by the Chief Financial Officer of the Guarantor at the time
  when any consolidated financial statements of the Group are delivered to the
  Bank in accordance with clause 5.1.4; 

	
 

	
 

	
 

	
5.1.6

	
 

	
Liquidity 

	
 

	
 

	
 

	
 

	
 

	
maintain at all times in bank
  accounts held with the Bank and which are free from Encumbrances (other than
  Permitted Encumbrances) minimum cash balances of no less than $500,000,
  without taking into account any part of such cash balances already taken into
  account by the Guarantor and/or any other member of the Group and the Bank
  for the purposes of compliance with minimum liquidity requirements under, or
  in connection with, other loan agreements (i.e. excluding the Agreement) made
  available by the Bank to members of the Group or any relevant guarantees
  given by the Guarantor in favour of the Bank; 

	
 

	
 

	
 

	
5.1.7

	
 

	
Delivery of reports 

	
 

	
 

	
 

	
 

	
 

	
deliver to the Bank copies of
  every report, circular, notice or like document issued by the Guarantor to
  its shareholders or creditors generally subject to applicable obligations of
  confidentiality or rules of the New York Stock Exchange; and 

	
 

	
 

	
 

	
5.1.8

	
 

	
Provision of further information 

	
 

	
 

	
 

	
 

	
 

	
provide the Bank with such
  financial or other information concerning the Group, the Borrower, the
  Guarantor, the other Security Parties, the other members of the Group and
  their respective affairs as the Bank may from time to time reasonably
  require, including, without limitation, any management information,
  information relating to the position, trading and/or employment of the Ship
  and any actual or proposed purchase of vessels by any member of the Group,
  copies of all documents required of the Guarantor or its board of directors
  to disclose or certify or to file with the Securities and Exchange Commission
  of the U.S.A. or pursuant to the Sarbanes-Oxley Act of the U.S.A. and any
  other documents or information as may be reasonably required by the Bank. 

	
 

	
 

	
 

	
5.2

	
 

	
Negative
  undertakings 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor undertakes that,
  from the date of this Guarantee and so long as any moneys are owing under the
  Agreement or the other Security Documents (including this Guarantee) and
  while all or any part of the Commitment remains outstanding, it will not,
  without the prior written consent of the Bank: 

	
 

	
 

	
 

	
5.2.1

	
 

	
Negative pledge

	
 

	
 

	
 

	
 

	
 

	
permit any Encumbrance (other than
  a Permitted Encumbrance) to subsist, arise or be created or extended over all
  or any of the shares of the Borrower to secure or prefer any present or
  future Indebtedness of the Guarantor or any other person; 

	
 

	
 

	
 

	
5.2.2

	
 

	
No merger 

	
 

	
 

	
 

	
 

	
 

	
merge or consolidate with any
  other person or enter into any demerger, amalgamation or any corporate
  reconstruction or redomiciliation of any kind; 

	
 

	
 

	
 

	
5.2.3

	
 

	
Other business

	
 

	
 

	
 

	
 

	
 

	
undertake any business other than
  that conducted by it at the date of this Guarantee; 

13

	
 

	
 

	
 

	
5.2.4

	
 

	
Distributions 

	
 

	
 

	
 

	
 

	
 

	
declare or pay any dividends or
  make any other distributions to any of its shareholders if an Event of
  Default has occurred or will or, in the opinion of the Bank, is likely to
  occur as a result of, or following, the declaration or payment of such
  dividends or other distributions; 

	
 

	
 

	
 

	
5.2.5

	
 

	
Shareholdings 

	
 

	
 

	
 

	
 

	
 

	
change, cause or permit any
  change in, the legal and/or beneficial ownership of any of the shares in the
  Borrower which would result in the Borrower ceasing to be a wholly-owned
  direct Subsidiary of the Guarantor; or 

	
 

	
 

	
 

	
5.2.6 

	
 

	
Financial year  

	
 

	
 

	
 

	
 

	
 

	
change the computation of its
  financial year from that existing on the date of this Guarantee (i.e. with
  financial year-end on 31 December). 

	
 

	
 

	
 

	
5.3 

	
  

	
Financial undertakings  

	
 

	
 

	
 

	
5.3.1

	
 

	
The Guarantor undertakes with the
  Bank that, from the date of this Guarantee and so long as any moneys are
  owing under the Security Documents (including this Guarantee) and while all
  or any part of the Commitment remains outstanding, it will ensure that: 

	
 

	
 

	
 

	
 

	
(a)

	
Consolidated Adjusted Net Worth 

	
 

	
 

	
 

	
 

	
 

	
the Consolidated Adjusted Net
  Worth shall not be less than Two hundred million Dollars ($200,000,000) at
  any time; 

	
 

	
 

	
 

	
 

	
(b)

	
Consolidated Adjusted Leverage
  Ratio 

	
 

	
 

	
 

	
 

	
 

	
the Consolidated Adjusted
  Leverage Ratio shall not be higher than 0.70:1.0 at any time; and 

	
 

	
 

	
 

	
 

	
(c) 

	
Consolidated Debt Service Ratio

	
 

	
 

	
 

	
 

	
 

	
the Consolidated Debt Service
  Ratio shall not be higher than 5.5:1.0 at any time. 

	
 

	
 

	
 

	
5.3.2

	
 

	
All the terms defined in clause
  1.2 and used in this clause 5.3, and other accounting terms used in this
  clause 5.3, are to be determined by the Bank on a consolidated basis and
  (except as items are expressly included or excluded in the relevant
  definition or provision) are used and shall be construed in accordance with
  the Applicable Accounting Principles consistently applied and as determined
  from any relevant Accounting Information and any valuations of the Fleet
  Vessels and also by reference to any other information available to the Bank
  at any relevant time. 

	
 

	
 

	
 

	
5.3.3

	
 

	
Subject to clause 5.3.4, the
  compliance of the Guarantor with the undertakings set out in clause 5.3.1
  shall be determined and tested by the Bank in its sole discretion on the
  basis of calculations made by the Bank at the end of each Accounting Period
  at the time when the relevant Accounting Information and, where applicable,
  valuations of the Fleet Vessels have been delivered to the Bank pursuant to
  clause 5.1.4 and clause 5.1.5. 

	
 

	
 

	
 

	
5.3.4

	
 

	
Notwithstanding the other terms
  of this clause 5.3 and, in particular, the time when compliance with the
  financial undertakings of clause 5.3.1 is to be tested by the Bank pursuant
  to clause 5.3.3, the Guarantor hereby undertakes that the financial
  undertakings of clause 5.3.1 will be complied with at all times during the
  whole term of each Accounting Period. 

	
 

	
 

	
 

	
5.3.5

	
 

	
For the purposes of this clause
  5.3: (i) no item shall be deducted or credited more than once in any
  calculation; and (ii) any amount expressed in a currency other than Dollars
  shall be 

14

	
 

	
 

	
 

	
 

	
 

	
converted into Dollars in
  accordance with the Applicable Accounting Principles consistently applied. 

	
 

	
 

	
 

	
6

	
 

	
Set-off
  

	
 

	
 

	
 

	
 

	
 

	
The Guarantor authorises the Bank
  at any time following a demand made by the Bank under clause 2.1 and without
  notice to the Guarantor to apply any credit balance to which the Guarantor is
  then entitled on any account of the Guarantor with the Bank at any of its
  branches in or towards satisfaction of any sum then due and payable from the Guarantor
  to the Bank under this Guarantee. For this purpose the Bank is authorised to
  purchase with the moneys standing to the credit of such account such other
  currencies as may be necessary to effect such application. The Bank shall not
  be obliged to exercise any right given to it by this clause 6. The Bank shall
  notify the Guarantor forthwith upon the exercise or purported exercise of any
  right of set-off giving full details in relation thereto. 

	
 

	
 

	
 

	
7

	
 

	
Benefit
  of this Guarantee 

	
 

	
 

	
 

	
7.1

	
 

	
Benefit and burden
  

	
 

	
 

	
 

	
 

	
 

	
This Guarantee shall be binding
  upon the Guarantor and its successors in title and shall enure for the
  benefit of the Bank and its successors in title, Assignees and/or
  Transferees. The Guarantor expressly acknowledges and accepts the provisions
  of clause 16 of the Agreement and agrees that any person in favour of whom an
  assignment or a transfer is made in accordance with such clause shall be
  entitled to the benefit of this Guarantee. 

	
 

	
 

	
 

	
7.2

	
 

	
Changes in
  constitution or reorganisation of Bank 

	
 

	
 

	
 

	
 

	
 

	
For the avoidance of doubt and
  without prejudice to the provisions of clause 7.1, this Guarantee shall
  remain binding on the Guarantor notwithstanding any change in the
  constitution of the Bank or its absorption in, or amalgamation with, or the
  acquisition of all or part of its undertaking or assets by, any other person,
  or any reconstruction or reorganisation of any kind, to the intent that this
  Guarantee shall remain valid and effective in all respects in favour of any
  successor in title, Assignee or Transferee of the Bank in the same manner as
  if such successor in title, Assignee or Transferee had been named in this
  Guarantee as a party instead of, or in addition to, the Bank. 

	
 

	
 

	
 

	
7.3

	
 

	
No assignment by
  Guarantor 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor may not assign or
  transfer any of its rights or obligations under this Guarantee. 

	
 

	
 

	
 

	
7.4

	
 

	
Disclosure of
  information 

	
 

	
 

	
 

	
 

	
 

	
The Bank may, without the consent
  of the Guarantor, disclose to a prospective assignee or transferee or to any
  other person who may propose entering into contractual relations with the
  Bank in relation to the Agreement such information about the Guarantor as the
  Bank shall consider appropriate. 

	
 

	
 

	
 

	
8

	
 

	
Notices
  and other matters 

	
 

	
 

	
 

	
8.1

	
 

	
Notices 

	
 

	
 

	
 

	
 

	
 

	
Clause 17.1 of the Agreement
  shall apply to this Guarantee as if set out herein and every notice, request,
  demand or other communication under this Guarantee shall be sent:

15

	
 

	
 

	
 

	
8.1.1

	
 

	
if to the Guarantor at: 

	
 

	
 

	
 

	
 

	
 

	
32 Karamanli Avenue 

	
 

	
 

	
166 05 Voula

	
 

	
 

	
Greece 

	
 

	
 

	
 

	
 

	
 

	
Fax
  No:           +30 210
  8956900 

	
 

	
 

	
Attention:
         George Papadopoulos 

	
 

	
 

	
 

	
8.1.2

	
 

	
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

	
 

	
 

	
 

	
 

	
 

	
or to such other address or
  facsimile number as is notified by the Guarantor or the Bank to the other
  party to this Guarantee. 

	
 

	
 

	
 

	
8.2

	
 

	
No implied
  waivers, remedies cumulative 

	
 

	
 

	
 

	
 

	
 

	
No failure or delay on the part
  of the Bank to exercise any power, right or remedy under this Guarantee shall
  operate as a waiver thereof, nor shall any single or partial exercise by the
  Bank of any power, right or remedy preclude any other or further exercise
  thereof or the exercise of any other power, right or remedy. The remedies
  provided in this Guarantee are cumulative and are not exclusive of any
  remedies provided by law. 

	
 

	
 

	
 

	
8.3

	
 

	
English
  translations 

	
 

	
 

	
 

	
 

	
 

	
All certificates, instruments and
  other documents to be delivered under or supplied in connection with this
  Guarantee shall be in the English language or shall be accompanied by a
  certified English translation upon which the Bank shall be entitled to rely. 

	
 

	
 

	
 

	
8.4 

	
  

	
Other guarantors  

	
 

	
 

	
 

	
 

	
 

	
The Guarantor agrees to be bound
  by this Guarantee notwithstanding that any other person intended to execute
  or to be bound by any other guarantee or assurance under or pursuant to the
  Agreement may not do so or may not be effectually bound and notwithstanding
  that such other guarantee or assurance may be determined or be or become
  invalid or unenforceable against any other person, whether or not the
  deficiency is known to the Bank. 

	
 

	
 

	
 

	
8.5

	
 

	
Expenses 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor agrees to reimburse
  the Bank on demand for all legal and other costs, charges and expenses on a
  full and unqualified indemnity basis which may be incurred by the Bank in
  relation to the enforcement of this Guarantee against the Guarantor. 

	
 

	
 

	
 

	
8.6

	
 

	
Partial
  invalidity 

	
 

	
 

	
 

	
 

	
 

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

16

	
 

	
 

	
 

	
8.7

	
 

	
Maximum
  liability 

	
 

	
 

	
 

	
 

	
 

	
Anything contained in this
Guarantee to the contrary notwithstanding, the obligations of the Guarantor
hereunder shall be limited to a maximum aggregate amount equal to the
greatest amount that would not render the Guarantor’s obligations hereunder
subject to avoidance as a fraudulent transfer or conveyance under Section 548
of Title 11 of the United States Code or any similar provisions of applicable
law (collectively, the “Fraudulent Transfer Laws”), in each case after giving
effect to all other liabilities of the Guarantor, contingent or otherwise,
that are relevant under the Fraudulent Transfer Laws (specifically excluding,
however, any liabilities of the Guarantor (a) in respect of inter-company
Indebtedness to the Borrower or any other member of the Group to the extent
that such Indebtedness would be discharged in an amount equal to the amount
paid by the Guarantor hereunder and (b) under any guarantee of Indebtedness
subordinated in right of payment to the Guaranteed Liabilities, which
guarantee contains a limitation as to maximum amount similar to that set
forth in this paragraph, pursuant to which the liability of the Guarantor
hereunder is included in the liabilities taken into account in determining
such maximum amount) and after giving effect as assets to the value (as
determined under the applicable provisions of the Fraudulent Transfer Laws)
of any rights to subrogation, contribution, reimbursement, indemnity or
similar rights of the Guarantor pursuant to (i) applicable law or (ii) any
agreement providing for an equitable allocation among the Guarantor and other
members of the Group of obligations arising under guarantees by such parties. 

	
 

	
 

	
 

	
9

	
 

	
Law
  and jurisdiction 

	
 

	
 

	
 

	
9.1

	
 

	
Law 

	
 

	
 

	
 

	
 

	
 

	
This Guarantee is governed by,
  and shall be construed in accordance with, English law. 

	
 

	
 

	
 

	
9.2

	
 

	
Submission to
  jurisdiction 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor agrees for the
  benefit of the Bank that any legal action or proceedings arising out of or in
  connection with this Guarantee against the Guarantor or any of its assets may
  be brought in the English courts, 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 the Guarantor
  further undertakes that, in the event that such individual passes away or
  cannot be found, the Guarantor hereby irrevocably and unconditionally
  authorises the Bank to designate, appoint and empower, on the Guarantor’s
  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 the Guarantor 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. The Guarantor further agrees that
  only the courts of England and not those of any other State shall have
  jurisdiction to determine any claim which the Guarantor may have against the
  Bank arising out of or in connection with this Guarantee. 

	
 

	
 

	
 

	
9.3

	
 

	
Contracts (Rights
  of Third Parties) Act 1999 

	
 

	
 

	
 

	
 

	
 

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

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

17

Schedule 1

Form of Compliance Certificate

	
 

	
 

	
To:

	
THE ROYAL BANK OF SCOTLAND PLC 

	
 

	
 

	
From:

	
SAFE BULKERS, INC. 

	
 

	
 

	
 

	
Dated: [•] 

US$40,000,000 Loan Agreement dated 13
December 2007, as amended (the “Loan Agreement”) - Corporate Guarantee dated [•] 2008 (the “Corporate Guarantee”) 

Terms
defined in the Corporate Guarantee shall have the same meaning when used
herein. 

We refer to
clause 5.3.1 of the Corporate Guarantee and hereby certify that, as at [insert date of accounts] and on the date
hereof: 

	
 

	
 

	
 

	
1

	
Financial
  covenants 

	
 

	
 

	
 

	
(a)

	
the Consolidated Adjusted Net
  Worth is $[•], calculated as follows: [ ]; and 

	
 

	
 

	
 

	
 

	
(b)

	
the Consolidated Adjusted
  Leverage Ratio is [•]:1.0, calculated as follows:[ ]; and 

	
 

	
 

	
 

	
 

	
(c)

	
the Consolidated Debt Service
  Ratio is [•]:1.0, calculated as follows: [ ]. 

	
 

	
 

	
 

	
 

	
[and we hereby confirm that the
  above comply with the provisions of clause 5.3.1 of the Guarantee.] 

	
 

	
 

	
2

	
Default 

	
 

	
 

	
 

	
[No Default has occurred and is
  continuing] 

	
 

	
 

	
 

	
or 

	
 

	
 

	
 

	
[The following Default has
  occurred and is continuing: [provide details of Default]. [The
  following steps are being taken to remedy it: [provide details of steps being taken to remedy Default]].
  

	
 

	
 

	
Signed: 

	

	
 

	
[Director[s]/Officer[s]] [or any
  other duly authorised representatives [or appropriate]]

	
 

	
 

	
 

	
For and on behalf of: 

  SAFE BULKERS, INC.

	
 

	
 

	
I hereby confirm and certify that
  the above statements are correct and complete. 

	
 

	
 

	
Signed:

	

	
 

	
Chief Financial Officer 

	
 

	
For and on behalf of 

	
 

	
SAFE BULKERS,
  INC. 

18

	
 

	
 

	
 

	
EXECUTED as a
  DEED

	
)

	
 

	
by

	
)

	
 

	
for and on behalf of

	
)

	
 

	
SAFE BULKERS,
  INC.

	
)

	

	
in the presence of:

	
)

	
Attorney-in-Fact

	
 

	
 

	
 

	

	
 

	
 

	
Witness

	
 

	
 

	
Name:

	
 

	
 

	
Address:

	
 

	
 

	
Occupation:

	
 

	
 

	
 

	
 

	
 

	
EXECUTED as a
  DEED

	
)

	
 

	
by

	
)

	
 

	
for and on behalf of

	
)

	
 

	
THE ROYAL BANK
  OF SCOTLAND PLC

	
)

	

	
in the presence of:

	
)

	
Authorised signatory

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Witness

	
 

	
 

	
Name:

	
 

	
 

	
Address:

	
 

	
 

	
Occupation:

	
 

	
 

19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]