Document:

ex_138219.htm

Exhibit 10.28

 

 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

 

This Amended and Restated Employment Agreement (this "Agreement") is entered into this date, by and between FIRST TRINITY FINANCIAL CORPORATION, an Oklahoma corporation ("Company") and Jeffrey J. Wood ("Employee")

 

Whereas, Company desires to continue to employ Employee as its Chief Financial Officer of the Company and its subsidiaries amongst other duties, roles and responsibilities; and

 

Whereas, Employee desires to continue in such positions;

 

The parties agree to the following:

 

Definitions

 

In this Agreement, unless something in the subject matter or context is inconsistent therewith:

 

“Affiliate” includes each direct and indirect subsidiary of the Company and any other entities controlled by, controlling or under common control with the Company.

 

“Agreement” means this agreement, including its recitals and schedules, as amended from time to time.

 

“Base Salary” has the meaning attributed to such term in Section 3-a.

 

“Board” means the board of directors of the Company in office from time to time.

 

“Bonus” has the meaning attributed to such term in Section 3-b.

 

“Business” means all the business and activities from time to time carried on by the Company and its Affiliates.

 

“Cause” The Board may terminate the Employee's employment for Cause following the Employee’s (i) intentional neglect that jeopardizes the life or property of another, (ii) intentional wrongdoing or malfeasance, (iii) intentional violation of a business related law; or (iv) failure to perform his duties under this Agreement after the Board has delivered to the Employee written notice which specifically identifies the manner in which the Board believes he is not performing his duties. No such action or inaction by the Employee shall be treated as Cause unless, in the case of clauses (i), (ii) or (iii) it has a material adverse effect on and is demonstrably injurious to the Company and, in the case of clauses (i) through (iv), it is not cured by the Employee, or cannot be cured, within sixty (60) days after written notice from the Board to the Employee thereof. The Employee may only be terminated for Cause upon a resolution of a majority of the Board (and, following a Change in Control, greater than 3/4 of the Board) after the Employee has been given the reasonable opportunity to be heard before the Board with counsel present.

 

 

 

 

“Change in Control” shall be deemed to occur on:

 

	
			 

				
			(a)

				
			the date of the acquisition of securities of the Company (including securities convertible into shares of common stock of the Company (“Common Shares”) and/or other securities of the Company ("Convertible Securities")) as a result of which a person or group (an "Acquirer") owns beneficially Common Shares or other securities of the Company and/or Convertible Securities such that, assuming the conversion of Convertible Securities owned beneficially by the Acquirer but not by any other holder of Convertible Securities, the Acquirer would own beneficially (i) not less than 50% of the Common Shares or (ii) shares which would entitle the holders thereof to cast not less than 50% of the votes attaching to all shares in the capital of the Company which may be cast to elect directors of the Company; or

			

 

	
			 

				
			(b)

				
			the date upon which the following two conditions shall have been satisfied:

			

 

	
			 

				
			(i)

				
			the acquisition ("Acquisition of Control") of securities of the Company (including Convertible Securities) as a result of which an Acquirer owns beneficially Common Shares or other securities of the Company and/or Convertible Securities such that, assuming the conversion of Convertible Securities owned beneficially by the Acquirer but not by any other holder of Convertible Securities, the Acquirer would own beneficially (A) not less than 25% of the Common Shares or (B) shares which would entitle the holders thereof to cast not less than 25% of the votes attaching to all shares in the capital of the Company which may be cast to elect directors of the Company; and

			

 

	
			 

				
			(ii)

				
			within two years after the Acquisition of Control, a majority of the Board consists of individuals who were not directors of the Company before the Acquisition of Control; or

			

 

	
			 

				
			(c)

				
			the date upon which the following two conditions shall have been satisfied:

			

 

	
			 

				
			(i)

				
			the occurrence of (A) an amalgamation or merger of the Company with any other corporation (other than an Affiliate), (B) any other business combination or consolidation, (C) a plan for the liquidation of the Company, or (D) the sale or disposition of all or substantially all of the assets of the Company (a "Corporate Reorganization"); and

			

 

	
			 

				
			(ii)

				
			within two years following a Corporate Reorganization, a majority of the board of directors of the amalgamated or merged entity or successor entity into which the Company was liquidated or which acquired substantially all of the assets of the Company consists of individuals who were not directors of the Company immediately before the Corporate Reorganization;

			

 

 

 

 

“Company” means First Trinity Financial Corporation and any successor to its business or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

“Effective Date” of this Agreement means upon execution by the Chairman of the Company’s Compensation Committee and Jeffrey J. Wood on March 18, 2019.

 

“Executive” means Jeffrey J. Wood.

 

“Good Reason” The Employee may terminate his employment with “Good Reason” following:

 

(i) a change in job responsibilities of the Employee resulting in the demotion of the Employee from the position of Chief Financial Officer, which demotion is caused by something other than the Employee’s actions or inactions which would constitute Cause, (ii) the removal of the Employee as an officer of the Company or its majority owned subsidiaries or the failure of the Employee to be re-elected as an officer of the Company by the Board of Directors, as the case may be, (iii) the relocation of the Employee’s employment location by more than 25 miles, (iv) a reduction in the Employee’s Base Salary or bonus opportunity, (v) any material breach of this Agreement by the Company (including a failure to comply with Section 10 of this Agreement) or (vi) the Employee’s voluntary termination of employment for any reason during the 12-month period commencing upon a Change in Control of the Company. The Employee may terminate his employment with Good Reason pursuant to clauses (i) through (v) above by providing written notice to the Company within 60 days following his knowledge of the occurrence of the event constituting Good Reason and, if the Company fails to cure such event during the 30-day period following such notice, by terminating his employment within 120 days following his knowledge of the occurrence of the event constituting Good Reason. The Employee may terminate his employment for Good Reason pursuant to clause (vi) above by providing 5 days written notice of his termination.

 

“Termination Date” means the later of two years from the effective date of the employment Agreement or two years from the date of the last automatic extension of the Employment Agreement.

 

	
			1. 

				
			TERMS AND DUTIES

			

 

For valuable consideration, the receipt of which is hereby acknowledged, Employee is hereby employed and shall continue to work for the Company and its subsidiaries as Chief Financial Officer for a term commencing on March 1, 2019 and continuing for a period of twenty-four months (24) ending February 28, 2021, or the termination of this Agreement as described in Section 6 hereof, whichever shall occur first. The Employee's duties shall be to manage Company's interests in its Business and subsidiaries as mutually agreed upon and set forth in an agreed upon job description. The Employee’s office location shall be at the Company’s headquarters in Tulsa, Oklahoma.

 

 

 

 

Automatic Extension

 

Each month beginning April 1, 2019 the Employment agreement shall be automatically extended for successive two-year terms unless this Agreement is terminated as described In Section 6 hereof.

 

	
			2. 

				
			TIME

			

 

Employee shall faithfully perform for the Company the duties incident to the office of Chief Financial Officer and shall perform such other duties of an executive, managerial or administrative nature as shall be specified and designated from time to time by the Board. The Employee shall devote substantially all of the Employee's business time and effort to the performance of the Employee’ s duties hereunder. Employee may serve on the board of directors of directly owned subsidiaries of the Company as approved by the Company’s Board of Directors. Employee may participate in, invest in and acquire interests in other entities including insurance companies but only provide advice and consulting services to any company at the approval of the President and Chief Executive Officer or Board of Directors. The Employee may also participate in charitable and community activities, serve on not-for-profit boards and manage his personal investments so long as such activities do not materially interfere with his duties to the Company.

 

	
			3. 

				
			COMPENSATION.

			

 

	 	
			(a)

				
			Base Salary. As compensation for all services rendered by the Employee under this agreement, Company will pay Employee an 2019 annual base salary of $278,645.38 payable periodically, in substantially equal amounts, but no less often than semi-monthly in accordance with company's payroll practices from time to time in effect. The Employee's base salary will increase annually on January 1st of each year by 3%.

			

 

	 	
			(b)

				
			Bonus. In addition to the Employee's base salary, the Company may pay a discretionary bonus subject to approval by the Company’s Board of Directors.

			

 

	
			4. 

				
			EMPLOYEE BENEFITS.

			

 

The Employee will be entitled to participate in all incentive, retirement, profit-sharing, life, medical, disability and other benefit plans and programs (collectively, “Benefit Plans”) as are from time to time generally available to other executives of the Company with comparable responsibilities, subject to the provisions of those programs. Without limiting the generality of the foregoing, the Company will provide the Employee with basic health and medical benefits on the terms that such benefits are provided to other executives of the Company with comparable responsibilities.

 

 

 

 

 

The Employee will also be entitled to holidays, sick leave and vacation in accordance with the Company's policies as they may change from time to time, but in no event shall the Employee be entitled to less than four (4) weeks paid vacation. The Employee shall be provided with indemnification and advancement of expenses to the fullest extent permitted by applicable state law and shall be covered by the Company’s directors’ and officers’ liability insurance policy at its highest levels.

 

	
			5. 

				
			EXPENSES.

			

 

	 	
			(a)

				
			Reimbursement for Expenses. The Company will promptly reimburse the Employee, in accordance with the Company's policies and practices in effect from time to time, for all expenses reasonably incurred by the Employee in performance of the Employee's duties under this Agreement.

			

 

	
			6. 

				
			TERMINATION.

			

 

The Employee's employment by the Company: (a) shall terminate upon the Employee's death or disability (as defined below); (b) may be terminated by the Company for any reason other than Cause; (c) may be terminated by the Company for Cause (as defined above) at any time; (d) may be terminated by the Employee, without Good Reason at any time upon sixty (60) days' prior written notice delivered by the Employee to the Company; and (e) may be terminated by the Employee for Good Reason pursuant to the procedures set forth in the Good Reason definition. This Agreement will automatically terminate if the Employee shall be prevented from performing Employee's usual duties for a period of six (6) consecutive months, or for shorter periods aggregating more than six (6) months in any twelve (12) month period by reason of physical or mental disability, total or partial, (herein referred to as "disability"), the Company shall nevertheless continue to pay full salary up to and including the last day of the fifth consecutive month of disability, or the day on which the shorter periods of disability shall have equaled a total of six (6) months. Any salary payments to the Employee shall be reduced by the amount of any benefits paid for the same period of time under any disability insurance program provided by the Company.

 

	
			7. 

				
			CONSEQUENCES OF TERMINATION.

			

 

	 	
			(a)

				
			CONSEQUENCES OF TERMINATION - EMPLOYEE'S DEATH OR DISABILITY.

			

 

	 	
			(i)

				
			If the Employee's employment is terminated prior to the Termination Date, because of the Employee's death or disability, (i) subject to Section 7(d) hereof, this Agreement terminates immediately; (ii) the Company will pay the Employee, or his legal representative or estate, as the case may be, within thirty (30) days following such termination of employment, (x) all accrued vacation amounts and unreimbursed business expenses and (y) in full satisfaction of all of its compensation (base salary and bonus) obligations under this Agreement, an amount equal to the sum of any base salary due to the Employee through the last day of employment, plus any accrued bonus to which the Employee may have been entitled on the last day of employment, but had not yet been received; and (ii) the Employee's benefits and rights under any Benefit Plan shall be paid, retained or forfeited in accordance with the terms of such plan; provided, however, that Employer shall have no obligation to make any payments toward these benefits for Employee from and after termination.

			

 

 

 

 

	 	
			(b)

				
			CONSEQUENCES OF TERMINATION BY THE COMPANY FOR ANY REASON OTHER THAN FOR CAUSE.

			

 

	 	
			(i)

				
			If the Employee’s employment is terminated by the Company prior to the Termination Date, for any reason other than for Cause or if the Employee terminates his employment for Good Reason prior to the Termination Date; (i) subject to Section 7(d) hereof, this Agreement terminates immediately; (ii) the Company will pay the Employee, within thirty (30) days following such termination of employment, (x) all accrued vacation amounts and unreimbursed business expenses and (y) in full satisfaction of all of its compensation (base salary and bonus) obligations under this Agreement, an amount equal to the sum of any base salary due to the Employee through the last day of employment, plus any accrued bonus to which the Employee may have been entitled on the last day of employment, but had not yet been received; (iii) the Company will pay the Employee, within sixty (60) days of such termination, a lump sum severance payment equal to 2.00 times the Employee's W-2 compensation averaged over the previous two completed years; (iv) for a period of two (2) years following the Employee’s termination of employment, the Employee shall be treated as if he had continued to be an employee for all purposes under the Company’s health and medical plans; or if the Employee is prohibited from participating in such plan, the Company shall, at its sole cost and expense, provide health and dental insurance coverage for Employee which is equivalent to the coverage provided to Employee as of the Employee’s termination of employment . Such benefits shall not have any waiting period for coverage and shall provide coverage for any pre-existing condition. Following this continuation period, the Employee shall be entitled to receive continuation coverage under Part 6 of Title I of ERISA treating the end of this period as a termination of the Employee’s employment if allowed by law; (v) for a period of two (2) years following the Employee’s termination of employment, the Company shall maintain in force, at its expense, all life insurance being provided or required to be provided to the Employee by the Company as of the Employee’s termination of employment and shall thereafter enable Employee to assume such life insurance at the Employee’s expense; (vi) except as otherwise provided in this paragraph, the Employee's benefits and rights under any Benefit Plan, other than any basic health and medical benefit plan, shall be paid, retained or forfeited in accordance with the terms of such plan; provided, however, that Employer shall have no obligation to make any payments toward these benefits for Employee after two (2) following termination other than as required by applicable law.

			

 

	 	
			(ii)

				
			Any payment pursuant to clause (b) (1) (iii) above:

			

 

	 	
			(1)

				
			will be subject to offset for any advances, amounts receivable, and loans, including accrued interest, outstanding on the date of the employment termination; but

			

 

 

 

 

	 	
			(2)

				
			will not be subject to offset on account of any remuneration paid or payable to the Employee for any subsequent employment the Employee may obtain, whether during or after the period during which the payment is made, and the Employee shall have no obligation whatever to seek any subsequent employment.

			

 

	 	
			(3)

				
			CONSEQUENCES OF TERMINATION FOR CAUSE BY THE COMPANY OR BY EMPLOYEE OTHER THAN FOR GOOD REASON, DEATH OR DISABILITY.

			

 

	
			 

				
			If the Employee's employment is terminated by the Company prior to the Termination Date for Cause or by the Employee other than for Good Reason, or the Employee’s death or disability , (i) subject to Section 7(d) hereof, this Agreement terminates immediately; (ii) the Company will pay the Employee, in full satisfaction of all of its compensation (base salary and bonus) obligations under this Agreement, an amount equal to the sum of any base salary due to the Employee through the last day of employment, plus any accrued bonus to which the Employee may have been entitled on the last day of employment, but had not yet been received; and (iii) the Employee's benefits and rights under any Benefit Plan shall be paid, retained or forfeited in accordance with the terms of such plan; provided, however, that Employer shall have no obligation to make any payments toward these benefits for Employee from and after termination other than as required by applicable law.

			

 

	 	
			(c)

				
			PRESERVATION OF CERTAIN PROVISIONS.

			

 

	 	
			(i)

				
			Notwithstanding any provisions of this Agreement to the contrary, the provisions of Sections 8 through 12 hereof shall survive the expiration or termination of this Agreement as necessary to give full effect to all of the provisions of this Agreement.

			

 

	
			8. 

				
			ARBITRATION

			

 

	 	
			(a)

				
			Any disputes arising under or in connection with this agreement shall be resolved by arbitration, to be held in Tulsa, Oklahoma in accordance with the rules and procedures of the American Arbitration Association and the State of Oklahoma.

			

 

	 	
			(b)

				
			all costs, fees and expenses of any arbitration in connection with this agreement which result in any decision or settlement requiring Company to make a payment to Employee, including, without limitation, attorneys’ fees of both Employee and Company, shall be borne by, and be the obligation of, Company. In no event shall Employee be required to reimburse Company for any of the costs and expenses incurred by Company relating to such arbitration. The obligation of Company under this section shall survive the termination of this agreement (whether such termination is by Company, by Employee, upon the expiration of this agreement or otherwise).

			

 

	 	
			(c)

				
			Pending the outcome or resolution of any arbitration, Company shall continue payment of all amounts to Employee without regard to any dispute.

			

 

 

 

 

	
			9. 

				
			NON-COMPTETE

			

 

Employee agrees that for a period of one year following the termination of this Agreement he will not (1) solicit any Company shareholder, policyholder, to become a shareholder, policyholder, of any competitor or anticipated competitor of the Company; and (2) solicit any employee, agent, or independent contractor of Company to become an employee, agent or independent contractor of any competitor or anticipated competitor of the Company.

 

EXCEPTIONS TO NON-COMPETITION COVENANTS.

 

Notwithstanding anything herein to the contrary or apparently to the contrary, the following shall not be a violation or breach of the non-competition covenants contained in this Agreement. The Employee may (i) engage in business with anyone or any companies that the Employee had an existing relationship with prior to becoming associated with the Company, (ii) engage in any business, including the insurance business as an agent, employee, shareholder or owner, in any location, (iii) conduct business with any Company shareholder, policyholder to become a shareholder, policyholder of any competitor or anticipated competitor of Company if the person solicits the Employee, (iv) hire any employee, agent or independent contractor of the Company to become an employee, agent or independent contractor of any competitor or anticipated competitor of Company if the person solicits Employee, (v) providing references for employees of the Company and (vi) soliciting employees of the Company through general advertisements not specifically targeted at employees of the Company.

 

To deliver promptly to Company on termination of the Employee's employment by the Company, or at any time Company may so request, all memoranda, notes, records, reports, and other documents (and all copies thereof) relating to Company's and its affiliates' businesses which the Employee may then possess or have under his control. Notwithstanding the foregoing, the Employee may retain his contacts, calendar, personal correspondence and any compensation information or other information necessary for tax return purposes.

 

	
			10. 

				
			SUCCESSORS; BINDING AGREEMENT; ASSIGNMENT.

			

 

The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to expressly assume and agree in writing to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place, provided that the Employee must be given the position as the Chief Financial Officer ("CFO") with the same authority, powers and responsibilities set forth in Section 1 hereof with respect to the subsidiary or subdivision which operates the business of the Company as it exists on the date of such business combination.

 

 

 

 

Failure of the Company to obtain such express assumption and agreement at or prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Employee to compensation and benefits from the Company in the same amount and on the same terms to which the Employee would be entitled hereunder if the Company terminated the Employee's employment without Cause. For purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the date of termination of Employee’s employment.

 

As used in this Agreement, the Company may not assign this Agreement, (i) except in connection with, and to the acquirer of, all or substantially all of the business or assets of the Company, provided such acquirer expressly assumes and agrees in writing to perform this Agreement as provided in this Section. The Employee may not assign his rights or delegate his duties or obligations under this Agreement.

 

	
			11. 

				
			CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

			

 

	 	
			(a)

				
			Gross-Up Payment. If it shall be determined that any Payment (as defined below) would be subject to the Excise Tax (as defined below), then the Employee shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount such that, after payment by the Employee of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, but excluding any income taxes and penalties imposed pursuant to Section 409A of the Code, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. The Company’s obligation to make Gross-Up Payments under this Section 11 shall not be conditioned upon the Employee’s termination of employment.

			

 

	 	
			(b)

				
			Determinations. Subject to the provisions of Section 11(c), all determinations required to be made under this Section 11, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment, and the assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized certified public accounting firm as may be designated by the Employee (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting calculations both to the Company and the Employee within 15 business days of the receipt of notice from the Employee that there has been a Payment or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity, or group effecting the change of control, the Employee may appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company and the Employee.

			

 

 

 

 

	
			 

				
			As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (the “Underpayment”), consistent with the calculations required to be made hereunder. In the event the Company exhausts its remedies pursuant to Section 11(c) and the Employee thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Employee.

			

 

	 	
			(c)

				
			Claims by the IRS. The Employee shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than 10 business days after the Employee is informed in writing of such claim. The Employee shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Employee shall not pay such claim prior to the expiration of the 30-day period following the date on which the Employee gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Employee in writing prior to the expiration of such period that the Company desires to contest such claim, the Employee shall:

			

 

	 	
			(i)

				
			give the Company any information reasonably requested by the Company relating to such claim;

			

 

	 	
			(ii)

				
			take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company;

			

 

	 	
			(iii)

				
			cooperate with the Company in good faith in order effectively to contest such claim; and

			

 

	 	
			(iv)

				
			Permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest, and shall indemnify and hold the Employee harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of such representation and payment of costs and expenses.

			

 

 

 

 

	 	
			 

				
			Without limitation on the foregoing provisions of this Section 11(c), the Company shall control all proceedings taken in connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings, and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either pay the tax claimed to the appropriate taxing authority on behalf of the Employee and direct the Employee to sue for a refund or to contest the claim in any permissible manner, and the Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction, and in one or more appellate courts, as the Company shall determine; provided, however, that, if the Company pays such claim and directs the Employee to sue for a refund, the Company shall indemnify and hold the Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to such payment or with respect to any imputed income in connection with such payment; and provided, further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount.

			

 

	 	
			 

				
			Furthermore, the Company’s control of the contest shall be limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and the Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

			

 

	 	
			(d)

				
			Refunds. If, after the receipt by the Employee of a Gross-Up Payment or payment by the Company of an amount on the Employee’s behalf pursuant to Section 11(c), the Employee becomes entitled to receive any refund with respect to the Excise Tax to which such Gross-Up Payment relates or with respect to such claim, the Employee shall (subject to the Company’s complying with the requirements of Section 11(c), if applicable) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after payment by the Company of an amount on the Employee’s behalf pursuant to Section 11(c), a determination is made that the Employee shall not be entitled to any refund with respect to such claim and the Company does not notify the Employee in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then the amount of such payment shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.

			

 

	 	
			(e)

				
			Payment of the Gross-Up Payment. Any Gross-Up Payment, as determined pursuant to this Section 11, shall be paid by the Company to the Employee within five days of the receipt of the Accounting Firm’s determination; provided that the Gross-Up Payment shall in all events be paid no later than the end of the Employee’s taxable year next following the Employee’s taxable year in which the Excise Tax (and any income or other related taxes or interest or penalties thereon) on a Payment are remitted to the Internal Revenue Service or any other applicable taxing authority or, in the case of amounts relating to a claim described in Section 11(c) that does not result in the remittance of any federal, state, local, and foreign income, excise, social security, and other taxes, the calendar year in which the claim is finally settled or otherwise resolved. Notwithstanding any other provision of this Section 11, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Employee, all or any portion of any Gross-Up Payment, and the Employee hereby consents to such withholding.

			

 

 

 

 

	 	
			(f)

				
			Certain Definitions. The following terms shall have the following meanings for purposes of this Agreement:

			

 

	 	
			(i)

				
			“Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

			

 

	 	
			(ii)

				
			The “Parachute Value” of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.

			

 

	 	
			(iii)

				
			A “Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Employee, whether paid or payable pursuant to this Agreement or otherwise.

			

 

	
			12. 

				
			SECTION 409A.

			

 

	
			 

				
			The parties intend for the payments and benefits under this Agreement to be exempt from Section 409A of the Code or, if not so exempt, to be paid or provided in a manner which complies with the requirements of such section, and intend that this Agreement shall be construed and administered in accordance with such intention. In the event the Company determines that a payment or benefit under this Agreement may not be in compliance with Section 409A of the Code, the Company shall reasonably confer with the Employee in order to modify or amend this Agreement to comply with Section 409A of the Code and to do so in a manner to best preserve the economic benefit of this Agreement. Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, (i) no amounts shall be paid to the Employee under Section 7 of this Agreement until the Employee would be considered to have incurred a “separation from service” from the Company within the meaning of Section 409A of the Code, (ii) amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following the Employee’s separation from service shall instead be paid on the first business day after the date that is six (6) months following the Employee’s separation from service (or death, if earlier), with interest for any cash payments so delayed, from the date such cash amounts would otherwise have been paid at the short-term applicable federal rate, compounded semi-annually, as determined under Section 1274 of the Code for the month in which the payment would have been made but for the delay in payment required to avoid the imposition of an additional rate of tax on the Employee, (iii) each amount to be paid or benefit to be provided under this Agreement shall be construed as a separately identified payment for purposes of Section 409A of the Code, (iv) any payments that are due within the “short term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise and (v) amounts reimbursable to the Employee under this Agreement shall be paid to the Employee on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in-kind benefits provided to the Employee) during any one (1) year may not effect amounts reimbursable or provided in any subsequent year.

			

 

 

 

 

	
			13. 

				
			MISCELLANEOUS.

			

 

	 	
			(a)

				
			This Agreement constitutes the entire understanding between the parties regarding the subject matter hereof and supersedes any and all prior or contemporaneous oral or written communications and agreements. Nothing herein contained shall be construed so as to require the commission of any act contrary to law and wherever there is any conflict between any provision of this Agreement and any present or future statute, law, ordinance or regulation, the latter shall prevail, but in such event the provision of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it within legal requirements.

			

 

	 	
			 

				
			No representation, promise, or inducement has been made by either party that is not embodied in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise, or inducement not so set forth. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

			

 

	 	
			 

				
			This agreement shall not be modified, amended or in any way altered except by an instrument in writing approved by the Board and signed by an officer designated by the Board to execute such waiver, modification or discharge and signed by Employee.

			

 

	 	
			(b)

				
			If any provision of this Agreement shall be declared to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the remaining provisions hereof which shall remain in full force and effect.

			

 

	 	
			(c)

				
			Should any portion of this Agreement be adjudged or held to be invalid, unenforceable or void, such holding shall not have the effect of invalidating or voiding the remainder of this Agreement and the parties hereby agree that the portion so held invalid, unenforceable or void shall, if possible, be deemed amended or reduced in scope, or otherwise be stricken from this Agreement to the extent required for the purposes of validity and enforcement thereof.

			

 

	 	
			(d)

				
			The provisions of this Agreement shall inure to the benefit of the parties hereto, their heirs, legal representatives, successors, and assigns.

			

 

 

 

 

	 	
			(e)

				
			This Agreement shall be construed and enforced in accordance with the laws of the State of Oklahoma that are applicable to contracts made and to be performed in the State of Oklahoma, regardless of the actual place of making or performance.

			

 

	 	
			(f)

				
			This Agreement shall become effective upon the signature of Employee and the Company's representative upon authorization by the Board.

			

 

	 	
			(g)

				
			The Employee represents that he has had the right and opportunity to consult with independent counsel of his own choosing and that he has read and understands the foregoing and he has signed this agreement of his own free will without duress, coercion or undue influence.

			

 

	 	
			(h)

				
			Notices shall be sent via first class mail, postage paid or personal delivery and shall be deemed to have been received on the earliest of the third day after deposit in the mail or personal delivery.

			

 

	Notice to Jeffrey J. Wood:	Jeffrey J. Wood
	 	Last address on books and Records of the Company
	 	 
	Notice to Company:	First Trinity Financial Corporation
	 	7633 E. 63rd Place
	 	Suite 230
	 	Tulsa, OK 74133-1246

          

 

Executed this 18th day of March, 2019

 

	Jeffrey J. Wood:	 /s/ Jeffrey J. Wood	 
	 	 	 
	 	Jeffrey J. Wood	 
	 	 	 
	Company:	 	 
	 	 	 
	Gregg E. Zahn:	/s/ Gregg E. Zahn	 
	 	 	 
	 	Gregg E. Zahn	 
	 	 	 
	 	 	 
	George E. Peintner 	/s/ George E. Peintner	 
	 	 	 
	 	George E. Peintner,	 
	 	 	 
	 	Chairman, First Trinity Financial Corporation Compensation Committee Member, First Trinity Financial Corporation Board of DirectorsExhibit 4.1

 

 

SAFE BULKERS, INC.

 

- and -

 

SAFETY MANAGEMENT OVERSEAS S.A.

 

MANAGEMENT AGREEMENT

    	 

    	

    

TABLE OF CONTENTS

 

	ARTICLE I INTERPRETATION	1
	 	 
	ARTICLE II APPOINTMENT	6
	 	 
	ARTICLE III THE PARENT’S GENERAL OBLIGATIONS	7
	 	 
	ARTICLE IV THE MANAGER’S GENERAL OBLIGATIONS	8
	 	 
	ARTICLE V ADMINISTRATIVE SERVICES	10
	 	 
	ARTICLE VI COMMERCIAL SERVICES	12
	 	 
	ARTICLE VII INSURANCE	13
	 	 
	ARTICLE VIII AVAILABILITY OF OFFICERS	13
	 	 
	ARTICLE IX MANAGEMENT FEES AND EXPENSES	14
	 	 
	ARTICLE X BUDGETS, CORPORATE PLANNING AND EXPENSES	16
	 	 
	ARTICLE XI LIABILITY AND INDEMNITY	17
	 	 
	ARTICLE XII RIGHTS OF THE MANAGER, RESTRICTIONS ON THE MANAGER’S AUTHORITY, AND NON-COMPETE PROVISIONS	19
	 	 
	ARTICLE XIII TERMINATION OF THIS AGREEMENT	20
	 	 
	ARTICLE XIV CHANGE IN CONTROL OF THE MANAGER AND RIGHT OF FIRST OFFER	23
	 	 
	ARTICLE XV NOTICES	25
	 	 
	ARTICLE XVI APPLICABLE LAW	25
	 	 
	ARTICLE XVII ARBITRATION	26
	 	 
	ARTICLE XVIII MISCELLANEOUS	27

 

	APPENDIX I	Form of Hajioannou Entities Restrictive Covenant Agreement
	APPENDIX II	Form of Polys Hajioannou Restrictive Covenant Agreement
	APPENDIX III	Form of Shipmanagement Agreement
	APPENDIX IV	Form of Supervision Agreement

    	i

    	

    

THIS MANAGEMENT AGREEMENT (this “Agreement”)
is made on the 29 day of May, 2018 (the “Effective Date”),

 

BY AND BETWEEN:

 

(1)     SAFE BULKERS, INC., a company organized
and existing under the laws of the Republic of the Marshall Islands (the “Parent”); and

 

(2)     SAFETY MANAGEMENT OVERSEAS S.A., a
company organized and existing under the laws of the Republic of Panama (the “Manager”).

 

WHEREAS:

 

(A)     The Original Agreement is scheduled
to terminate on its terms at the end of the day on May 28, 2018.

 

(B)     The Parent directly or indirectly
wholly owns or will wholly own (i) the corporations identified on Schedule A hereto, as such Schedule A may be amended from time
to time (the “Shipowning Subsidiaries”), each of which owns or charters in or will own or charter in one or
more Drybulk Vessels (as defined below) (the “Vessels”) and (ii) the corporations identified on Schedule B hereto,
as such Schedule B may be amended from time to time (together with the Shipowning Subsidiaries, the “Subsidiaries”).

 

(C)     The Manager has the benefit of expertise
in the technical and commercial management of Drybulk Vessels and administration of shipowning companies generally.

 

(D)     The Parent and the Manager desire
to enter into and adopt this Agreement, pursuant to which the Manager shall represent the Group (as defined below) in its dealings
with third parties and provide either directly or through a Submanager (as defined below) technical, commercial, administrative
and certain other services to the Group as specified herein in connection with the management and administration of the business
of the Group, in each case, to the extent the Parent elects to have the Manager provide such services.

 

NOW, THEREFORE, THE PARTIES HEREBY AGREE:

 

Article
I

INTERPRETATION

 

Section
1.1     In this Agreement, unless the context otherwise requires:

 

“Affirmative Response”
shall have the meaning set forth in Section 14.4(b).

 

“Affiliates” means, with
respect to any Person as at any particular date, any other Persons that directly or indirectly, through one or more intermediaries,
are Controlled by, Control or are under common Control with the Person in question, and “Affiliate” means any
one of them.

    	 

    	

    

“Agreement” shall have
the meaning set forth in the preamble.

 

“Approved Budget” shall
have the meaning set forth in Section 10.3.

 

“Board of Directors” means
the board of directors of the Parent as the same may be constituted from time to time.

 

“Business Days” means
a day (excluding Saturdays and Sundays) on which banks are open for business in Athens, Greece; Cyprus; and New York, New York.

 

“Change in Control of the Parent”
means the occurrence of any of the following events: (a) if any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act or any successor provisions to either of the foregoing), including any group
acting for the purpose of acquiring, holding, voting or disposing of securities within the meaning of Rule 13d-5(b)(1) under the
Exchange Act (other than one or more Hajioannou Entities) (collectively, an “Acquiring Person”), becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 40% or more of the
total voting power of the outstanding voting securities of the Parent, and such percentage represents a higher percentage of such
voting power than the Hajioannou Entities, collectively; or (b) the approval by the shareholders of the Parent of a proposed merger,
consolidation, recapitalization or similar transaction, as a result of which any Acquiring Person becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 40% or more of the total voting power
of the outstanding voting securities of the resulting entity following such transaction, and such percentage represents a higher
percentage of such voting power than the Hajioannou Entities, collectively; or (c) a change in directors after which at least one
of the members of the Board of Directors is not a Continuing Director (as defined below). For purposes of this definition, such
person or group shall be deemed to beneficially own any outstanding voting securities of a corporation held by any other corporation
(the “parent corporation”) so long as such person or group beneficially owns, directly or indirectly, in the aggregate
a majority of the total voting power of the outstanding voting securities of such parent corporation.

 

“Control” or “Controlled”
means, with respect to any Person, the right to elect or appoint, directly or indirectly, a majority of the directors of such Person
or a majority of the Persons who have the right, including any contractual right, to manage and direct the business, affairs and
operations of such Person, or the possession of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract, or otherwise.

 

“Consent of the Parent”
means the prior written consent of a majority of the Independent Directors of the Parent.

 

“Continuing Directors”
means, as of any date of determination, any member of the Board of Directors who (i) was a member of the Board of Directors immediately
after the Effective Date, or (ii) was nominated for election or elected to the Board of Directors with the approval of a majority
of the directors then still in office who were either directors immediately after the Effective Date or whose nomination or election
was previously so approved.

    	2

    	

    

“Crew” shall have the
meaning set forth in clause 1 of each Shipmanagement Agreement.

 

“Draft Budget” shall have
the meaning set forth in Section 10.1.

 

“Drybulk Vessel” means
any ocean-going vessel (including any Newbuild) that is intended to be used primarily to transport non-liquid cargoes of commodities
shipped in an unpackaged state.

 

“Drybulk Vessel Business”
means any business involved in the ownership or operation of Drybulk Vessels.

 

“Effective Date” shall
have the meaning set forth in the preamble.

 

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

 

“Executive Officers” means
the Chief Executive Officer, the President, the Chief Operating Officer and the Chief Financial Officer of the Parent, and/or such
other officers that may be agreed by the parties hereto after the date of this Agreement from time to time.

 

“First Offer Notice” shall
have the meaning set forth in Section 14.4(a).

 

“First Offer Period” shall
have the meaning set forth in Section 14.4(b).

 

“Force Majeure” shall
have the meaning set forth in Section 11.1.

 

“Group” means, at any
time, the Parent and the Subsidiaries at such time taking into account the Schedule A and Schedule B in effect at such time and
“member of the Group” shall be construed accordingly.

 

“Hajioannou Entities”
means Polys Hajioannou, Vorini Holdings Inc. and Machairiotissa Holdings Inc. and any entity controlled by, or under common control
with, any such individual or entity or any trust established for the benefit thereof.

 

“Hajioannou Restrictive Covenant
Agreement” means the Second Amended and Restated Restrictive Covenant Agreement, dated as of August 2, 2017, among Polys
Hajioannou, Vorini Holdings Inc., Machairiotissa Holdings Inc. and the Parent.

 

“Independent Directors”
means those members of the Board of Directors that qualify as independent directors within the meaning of Rule 10A-3 promulgated
under the Exchange Act and the rules adopted thereunder and the listing criteria of the New York Stock Exchange.

 

“Initial Term” shall have
the meaning set forth in Section 13.1.

 

“Machairiotissa” means
Machairiotissa Holdings Inc., a company organized and existing under the laws of the Republic of the Marshall Islands.

 

“Management Fee” shall
have the meaning set forth in Section 9.1.

    	3

    	

    

“Management Services”
shall have, in relation to a Vessel, the meaning set forth in clause 1 of the Shipmanagement Agreement applicable to such Vessel.

 

“Manager” shall have the
meaning set forth in the preamble.

 

“Manager Substitution”
shall have the meaning set forth in Section 2.6.

 

“Manager Competitive Activities”
shall have the meaning set forth in Section 12.4(a).

 

“Manager Related Parties”
shall have the meaning set forth in Section 11.2.

 

“Manager Restricted Period”
shall have the meaning set forth in Section 12.4(a).

 

“Negative Response” shall
have the meaning set forth in Section 14.4(b).

 

“Newbuild” means a new
vessel to be or which has just been constructed, or is under construction, which a member of the Group has agreed to acquire pursuant
to a shipbuilding contract, memorandum of agreement or otherwise.

 

“Original Agreement” means
the Management Agreement between the Parent and the Manager, dated May 29, 2008, as amended by that certain Amendment No. 1 to
Management Agreement, dated December 7, 2011, that certain Amendment No. 2 to Management Agreement, dated July 29, 2013, that certain
Amendment No. 3 to Management Agreement, dated February 25, 2014, that certain Amended and Restated Management Agreement, dated
May 29, 2015, and that certain Second Amended and Restated Management Agreement, dated August 2, 2017.

 

“Other Management Agreement”
means the Management Agreement between the Parent and the Other Manager, dated as of the date hereof.

 

“Other Manager” means
Safe Bulkers Management Limited, a Cypriot private limited company.

 

“Other Restrictive Covenant Agreement”
means the Second Amended and Restated Restrictive Covenant Agreement, dated August 2, 2017, between the Parent and Polys Hajioannou.

 

“Parent” shall have the
meaning set forth in the preamble.

 

“Person” means an individual,
corporation, limited liability company, partnership, joint venture, trust or trustee, unincorporated organization, association,
governmental authority or other entity.

 

“Proposed Change in Control of the
Manager” means:

 

		(a)	the approval by the board of directors of the Manager or the shareholders of the Manager of a proposed sale of all or substantially
all of the assets or property of

    	4

    	

    

the Manager necessary for the performance
of its services under this Agreement; or

 

		(b)	the approval of any transaction that would result in:

 

		(i)	the Hajioannou Entities beneficially owning, directly or indirectly, less than 60% of the outstanding voting securities or
voting power of the Manager or Machairiotissa, respectively; or

 

		(ii)	the Hajioannou Entities together with all directors, officers and employees of the Manager beneficially owning, directly or
indirectly, less than 80% of the outstanding voting securities or voting power of the Manager or Machairiotissa, respectively.

 

For purposes of this definition, the term Hajioannou Entities
shall exclude reference to Machairiotissa.

 

“Questioned Items” shall
have the meaning set forth in Section 10.2.

 

“Services” shall have
the meaning set forth in Section 2.3.

 

“Shipmanagement Agreement”
shall have the meaning set forth in Section 3.2.

 

“Shipowning Subsidiaries”
shall have the meaning set forth in the recitals.

 

“Submanager” shall have
the meaning set forth in Section 2.4.

 

“Subsequent Term” shall
have the meaning set forth in Section 13.1.

 

“Subsidiaries” shall have
the meaning set forth in the recitals.

 

“Supervision Agreement”
shall have the meaning set forth in Section 3.3.

 

“Term” shall have the
meaning set forth in Section 13.1.

 

“Termination Fee” means
an amount in cash equal to the Management Fees paid or payable to the Manager and the other Manager, in the aggregate, during the
36 months preceding the applicable termination.

 

“Termination Notice” shall
have the meaning set forth in Section 13.1.

 

“Third Term Termination Notice”
shall have the meaning set forth in Section 13.2(c).

 

“Vessels” shall have the
meaning set forth in the recitals.

 

“Willful and Material Breach”
means a material breach of this Agreement, as determined by a final, non-appealable judgment of a court or independent tribunal
of competent jurisdiction, that is a consequence of a deliberate act undertaken by the breaching party, with

    	5

    	

    

knowledge that the taking of such act would
cause a breach of this Agreement, and which act has subjected the Company and its Subsidiaries, taken as a whole, to uninsured
liability, individually or in the aggregate, in an amount in excess of $100,000,000.

 

Section
1.2     This Agreement shall become automatically effective without any further action on the Effective Date, immediately
following expiration of the Original Agreement.

 

Section
1.3     The headings of this Agreement are for ease of reference and do not limit or otherwise affect the meaning hereof.

 

Section
1.4     All the terms of this Agreement, whether so expressed or not, shall be binding upon the parties hereto and their
respective successors and assigns.

 

Section
1.5     In the event of any conflict between this Agreement, any Shipmanagement Agreement or any Supervision Agreement, the
provisions of this Agreement shall prevail.

 

Section
1.6     Unless otherwise specified, all references to money refer to the legal currency of the United States of America.

 

Section
1.7     Unless the context otherwise requires, words in the singular include the plural and vice versa.

 

Article
II

APPOINTMENT

 

Section
2.1     As of the date hereof, the Manager is hereby appointed as the manager of each member of the Group listed in Schedule
C. To the extent the Manager acts as a manager in respect of a member of the Group, the Manager is hereby appointed by the Parent
as the administrative manager of the Group and the Manager hereby accepts any such appointment on the terms and conditions of this
Agreement. Either the Manager or the Other Manager (in the sole discretion of the Manager and the Other Manager) shall act as the
manager of each member of the Group.

 

Section
2.2     To the extent the Manager acts as manager in respect of a member of the Group, the Manager shall be appointed by
(a) such Shipowning Subsidiary pursuant to the provisions of Section 3.2 hereof as the technical and commercial manager of each
such Shipowning Subsidiary’s Vessel on the terms and conditions of the relevant Shipmanagement Agreement and this Agreement
and (b) such member of the Group acquiring a Newbuild, as the supervisor of the construction thereof on the terms and conditions
of the relevant Supervision Agreement and this Agreement.

 

Section
2.3     To the extent the Manager acts as manager in respect of a member of the Group, the Manager undertakes to use its
best endeavors to provide:

 

(a)     the
services specified in Articles V, VI, VII and VIII of this Agreement;

    	6

    	

    

(b)     the
services specified in each Supervision Agreement; and

 

(c)     the
Management Services in respect of each Vessel specified in each Shipmanagement Agreement (the services to be provided under Sections
2.3(a), 2.3(b) and 2.3(c) collectively the “Services”).

 

Section
2.4     The Manager may upon notice to the Parent appoint any Person (a “Submanager”) at any time throughout
the duration of this Agreement to discharge any of the Manager’s duties under this Agreement; provided that if such
Person is not an Affiliate of the Manager, the Manager shall obtain the Consent of the Parent prior to such appointment (such Consent
of the Parent not to be unreasonably withheld or delayed).

 

Section
2.5     The Manager’s power to delegate performance of any provision of this Agreement hereunder is without prejudice
to the Manager’s liability to the Parent to perform this Agreement with the intention that the Manager shall remain responsible
to the Parent for the due and timely performance of all duties and responsibilities of the Manager hereunder; provided,
however, that to the extent that any Submanager has performed any such duty, the Manager shall not be under any obligation
to perform again the same duty.

 

Section
2.6     The Manager and the Other Manager may mutually elect at any time to replace the Manager with the Other Manager in
respect of any or all members of the Group for services provided hereunder (any such replacement, a “Manager Substitution”).
The Parent and the Manager shall reasonably cooperate with each other to facilitate the transfer of such services (including the
transfer of any prepaid costs to the Other Manager) without disruption to the business of the Group or the Manager or the incurrence
of any additional costs or expenses to the Group or the Manager. A Manager Substitution shall not result in an increase to, or
duplication of, the aggregate management fees payable to the Manager and the Other Manager. Upon a Manager Substitution, Schedule
C shall automatically be updated to reflect such Manager Substitution and the Other Management Agreement shall govern the management
services to be provided to the applicable member of the Group by the Other Manager.

 

Article
III

THE PARENT’S GENERAL OBLIGATIONS

 

Section
3.1     The Parent shall notify the Manager as soon as possible of any purchase of any vessel (whether the same is a second-hand
vessel or a Newbuild), the delivery of any Newbuild from the relevant builder or intermediate seller to the relevant member of
the Group to take ownership of such Newbuild, the agreement to acquire any Newbuild, the sale of any vessels, Newbuilds or Subsidiaries,
the purchase or creation of any direct or indirect subsidiary of the Parent or the sale or divestiture of any Subsidiary, and Schedule
A and Schedule B hereto, as applicable, shall be automatically amended to be reflective of any such development. Such amended Schedule
A or Schedule B shall be effective on any such day as mutually agreed by the Parent and the Manager. To the extent any member of
the Group comes into possession of a Vessel or agrees to acquire a Newbuild, the Manager and the Other Manager shall inform the
Parent as to whether the Manager or the Other Manager shall be appointed the manager in respect of such Vessel or Newbuild.

    	7

    	

    

Section
3.2     For each Vessel for which the Manager is appointed manager, the Parent shall cause the Shipowning Subsidiary that
owns such Vessel to enter with the Manager into a contract substantially in the form attached hereto as Appendix III (each a “Shipmanagement
Agreement” and, collectively, the “Shipmanagement Agreements”), with such alterations and additions
as are agreed by the Manager and such Shipowning Subsidiary to be appropriate; provided that any alterations or additions
which materially vary from such form shall require the approval of the Board of Directors. In the event of a Manager Substitution
in respect of a Vessel, Parent shall cause the applicable Shipowning Subsidiary to enter into a Shipmanagement Agreement with the
Other Manager.

 

Section
3.3     To the extent the Manager acts as manager in respect of a Newbuild, for each Newbuild the Parent shall, or shall
procure that the relevant member of the Group that owns or has agreed to acquire such Newbuild shall, enter with the Manager into
a contract substantially in the form attached hereto as Appendix IV (each a “Supervision Agreement” and, collectively,
the “Supervision Agreements”), with such alterations and additions as are agreed by the Manager and such member
of the Group to be appropriate, having regard to the terms and conditions of the particular shipbuilding contract, memorandum of
agreement or other agreement relating to the acquisition of the relevant Newbuild; provided that any alterations or additions
which materially vary from such form shall require the approval of the Board of Directors. In the event of a Manager Substitution
in respect of a Newbuild, Parent shall cause the applicable member of the Group to enter into a Supervision Agreement with the
Other Manager.

 

Section
3.4     The Parent shall pay, or shall cause another member of the Group to pay, all sums due to the Manager punctually in
accordance with the terms of this Agreement, any Shipmanagement Agreement and/or any Supervision Agreement.

 

Section
3.5     The Parent shall procure that each other member of the Group (a) performs its obligations under any Shipmanagement
Agreement or any Supervision Agreement to which it is a party and (b) does not take any action or omits to take any action the
effect of which is to cause the Parent or the Manager or any Submanager to be in breach of this Agreement, any Shipmanagement Agreement
and/or any Supervision Agreement.

 

Article
IV

THE MANAGER’S GENERAL OBLIGATIONS

 

Section
4.1     In the exercise of its duties hereunder, the Manager shall act fully in accordance with the reasonable policies,
guidelines and instructions from time to time communicated to it in writing by any member of the Group, exercising skill and diligence
to carry out its duties under this Agreement according to sound technical and commercial shipmanagement standards.

 

Section
4.2     The Manager shall act and do all and/or any of the following acts or things described in this Agreement and the relevant
Shipmanagement Agreement or, as the case may be, Supervision Agreement applicable to each Vessel in the name and/or on behalf of
the Parent and/or, as the context may require, the relevant Subsidiary.

    	8

    	

    

Section
4.3     The Manager acknowledges that the services it will provide pursuant to the Shipmanagement Agreements and the Supervision
Agreements are not limited to the services described in such agreements and include those set forth in this Agreement.

 

Section
4.4     The Manager shall ensure that all material property of any member of the Group is clearly identified as such, held
separately from the property of the Manager and, where applicable, held in safe custody.

 

Section
4.5     The Manager shall ensure that adequate manpower is employed by it to perform its obligations under this Agreement;
provided, however, that the Manager, in the performance of its responsibilities under this Agreement, shall be entitled
to have regard to its overall responsibilities in relation to the management of its clients and in particular, without prejudice
to the generality of the foregoing, the Manager shall be entitled to allocate available resources and services in such manner as
in the prevailing circumstances the Manager considers to be fair and reasonable.

 

Section
4.6     Notwithstanding anything to the contrary contained in this Agreement, any Shipmanagement Agreement or any Supervision
Agreement, the Manager agrees that any and all decisions of a material nature relating to the Parent, any Subsidiary, or any Vessel
shall be reserved to the Parent, such decisions including, but not being limited to:

 

(a)     the
purchase and/or sale of shares in any entity or other assets of a material nature;

 

(b)     the
purchase or formation of subsidiaries;

 

(c)     the
entry into guarantees or loans or other forms of financing and any and all financial undertakings and commitments connected therewith;

 

(d)     the
entry into and/or termination or amendment of any contractual relationships between any member of the Group and a third party or
another member of the Group; and

 

(e)     the
presentation, negotiation, settlement, prosecution or defense of any claim, demand or petition for an amount exceeding $100,000
or its equivalent.

 

Section
4.7     During the Term, the Manager shall promote the business of the Group in accordance with the directions of the authorized
representative of the respective member of the Group and shall at all times use its best efforts to conform to and comply with
the lawful and reasonable directions, regulations or recommendations made by such authorized representative, and in the absence
of any specific directions or recommendations as aforesaid and, subject to the terms and conditions of this Agreement, shall provide
general administrative and advisory services in connection with the management of the business of the Group.

 

Section
4.8     The Manager, in the performance of its responsibilities under this Agreement, any Supervision Agreement or any Shipmanagement
Agreement, shall ensure that any purchases of products or services from any of its affiliates or any other related entity

    	9

    	

    

shall be on terms no less favorable to the
Manager than the market prices for products or services that the Manager could obtain on an arm’s-length basis from unrelated
third parties.

 

Section
4.9     During the term hereof, the Manager agrees that, except as provided in Section 12.4(b), it will provide the services
in this Agreement to the Group on an exclusive basis and, without receiving the Consent of the Parent, it will not provide any
Services or other services contemplated herein to any entity other than the Parent, as applicable, and each Subsidiary.

 

Section
4.10     If a Vessel and a Drybulk Vessel directly or indirectly owned or operated by any of the Hajioannou Entities (other
than through the Parent or to the extent that such Hajioannou Entity is no longer subject to a Restrictive Covenant Agreement)
are both available and meet the criteria for a charter being fixed by the Manager, then the Vessel shall receive such charter.
For the avoidance of doubt, this Section 4.10 shall apply only to Drybulk Vessels owned or operated, directly or indirectly,
by any Hajioannou Entity that is under the commercial management of the Manager, and shall not apply to any Drybulk Vessel owned
or operated, directly or indirectly, by any Hajioannou Entity that is not under the commercial management of the Manager.

 

Section
4.11     The Manager shall at all times maintain and keep true and correct accounts as regards the Services and shall make
the same available for inspection and auditing by the Parent at such times as may be mutually agreed by the Manager, on the one
hand, and the Parent, on the other hand.

 

Article
V

ADMINISTRATIVE SERVICES

 

Section
5.1     To the extent the Manager acts as manager of a member of the Group, the Manager shall provide certain general administrative
services to such member of the Group, including, but not limited to, the following:

 

(a)     keeping
all books and records of things done and transactions performed on behalf of any member of the Group as it may require from time
to time, including, but not limited to, liaising with accountants, lawyers and other professional advisors;

 

(b)     except
as otherwise contemplated herein, representing any member of the Group generally in its dealings and relations with third parties;

 

(c)     maintaining
the general ledgers of the Group, reconciliation of the Group’s bank accounts, preparation of periodic financial statements,
including, but not limited to, those required for governmental and regulatory or self-regulatory agency filings and reports to
shareholders, arranging for the audit of any such financial statements and the provision of related data processing services;

 

(d)     providing
assistance in the preparation of periodic and other reports, proxy statements, registration statements and other documents and
reports required by applicable law

    	10

    	

    

or the rules of any securities exchange or
inter-dealer quotation system on which the securities of the Parent or any member of the Group may be listed or quoted;

 

(e)     preparing
and providing all tax returns required by any law or regulatory authority and developing, maintaining and monitoring internal audit
controls, disclosure controls and information technology for the Group;

 

(f)     appointing
lawyers, at the Parent’s cost, for providing all legal services to ensure that each member of the Group is in compliance
with all applicable laws, including all relevant securities laws, and owns or possesses all licenses, patents, copyrights and trademarks
which are necessary and used in the operation of its business;

 

(g)     appointing
lawyers, at the Parent’s cost, for providing for the presentation, negotiation, settlement, prosecution or defense of any
claim, demand or petition on behalf of any member of the Group arising in connection with the business of any member of the Group
for an amount not exceeding $100,000 or its equivalent, including the pursuit by any member of the Group of any rights of indemnification
or reimbursement;

 

(h)     providing
advice to the Group with respect to financing, including entering into negotiations with banks or other financial institutions
for the purpose of arranging financing for the Parent and its Subsidiaries and the monitoring and administration of compliance
with any applicable financing terms and conditions in effect with investors, banks or other financial institutions;

 

(i)     assisting
with arranging board meetings, director accommodation and travel for board meetings and preparing meeting materials and detailed
papers and agendas for scheduled meetings of the Board of Directors or the board of directors of any other member of the Group
(and any and all committees thereof) that, where applicable, contain such information as is reasonably available to the Manager
to enable the Board of Directors or such other board of directors (and any such committees) to base their opinion;

 

(j)     preparing
or causing to be prepared reports to be considered by the Board of Directors (or any applicable committee thereof) in accordance
with the Parent’s internal policies and procedures on any acquisition, investment or sale of any part of the business;

 

(k)     providing
or arranging for all services necessary to the engagement, employment and compensation of all employees, officers, consultants
and directors of any member of the Group, including, without limitation, (i) administering payroll services, benefits and director’s
or consultant’s fees, (ii) establishing and maintaining procedures and systems to comply with tax, labor and employment and
worker’s compensation laws, rules and regulations applicable to any member of the Group and (iii) administering compensation
and benefit programs of any member of the Group;

 

(l)     at
the request of the Parent, negotiating and arranging for cash management services, financing and hedging arrangements relating
to interest rates, currency exchange rates and commodity prices;

    	11

    	

    

(m)     handling
general and administrative expenses of the Parent, which are related to its operation as public company and, upon being provided
by the Parent with funds in accordance with the terms of Article X of this Agreement, arranging for the payment of the same;

 

(n)     appointing
lawyers, at the Parent’s cost, for handling all administrative and clerical matters in respect of (i) the calling and arrangement
of all annual and/or special meetings of shareholders of the Parent, (ii) the preparation of all materials (including notices of
meetings and information circulars) in respect thereof and (iii) the submission of all such materials to the Parent in sufficient
time prior to the dates upon which they must be mailed, filed or otherwise relied upon so that the Parent has full opportunity
to review, approve, execute and return them to the Manager for filing or mailing or other disposition as the Parent may require
or direct;

 

(o)     providing,
at the request and under the direction of the Parent, such communications to the transfer agent for the Parent as may be necessary
or desirable; and

 

(p)     providing
any such other administrative services as the Parent, the authorized Executive Officers or any other representative of the Parent
may request and the Manager may agree to provide from time to time.

 

Article
VI

COMMERCIAL SERVICES

 

Section
6.1     To the extent the Manager acts as manager of any member of the Group, the Manager shall provide the following commercial
services to such member of the Group:

 

(a)     performing
class records review and physical inspections in connection with any vessel to be purchased by a member of the Group;

 

(b)     at
the request and under the direction of the Parent, providing administrative services in connection with the purchase of a second-hand
vessel or the acquisition or sale of a Newbuild, in either case by any member of the Group, including, if specifically instructed
by the Parent in writing, signing any agreed form of memorandum of agreement, shipbuilding contract or other similar contract for
and on behalf of the relevant member of the Group; and

 

(c)     at
the request of the Parent, providing certain services in connection with a member of the Group taking physical delivery of a Vessel
or registering a Vessel or deleting a Vessel from the applicable port of registry on behalf of the relevant member of the Group.

    	12

    	

    

Article
VII

INSURANCE

 

Section
7.1     To the extent the Manager acts as manager of any member of the Group, in addition to any duties of the Manager to
insure the Vessels as provided in clause 3.4 of each Shipmanagement Agreement, the Manager shall:

 

(a)     arrange
either directly or, through insurance brokers appointed by the Manager, to effect Director’s & Officers Liability insurance
for the Board of Directors and Executive Officers with such insurance companies, at such rates and otherwise on such other terms
as the Parent shall have instructed and/or agreed upon;

 

(b)     on
request, provide the Parent with a copy of any insurance claims and any reports prepared by the relevant insurers; and

 

(c)     subject
to having been provided with funds by the Parent in accordance with Article X ensure that all premiums on the Parent’s D&O
insurance are paid in a timely fashion.

 

Article
VIII

AVAILABILITY OF OFFICERS

 

Section
8.1     The Manager shall provide the Group with the services of those Executive Officers from time to time agreed with the
Parent.

 

Section
8.2     The Executive Officers are entitled to direct the Manager to remove and replace any individual made available to
any member of the Group by the Manager serving as an officer or any senior manager serving as head of a business unit, in either
case, of that member of the Group other than any Executive Officer, from such position. The Board of Directors, in its sole discretion,
shall be entitled to direct the Manager to remove any individual made available to the Parent by the Manager serving as an Executive
Officer from such position and to appoint such other individual to serve as successor as the Board of Directors shall approve.
Furthermore, the Manager agrees that it will not remove any individual made available to any member of the Group by the Manager
serving as an officer or senior manager of that member of the Group from his or her position without the consent of the Executive
Officers and, in the case of any Executive Officer, the Board of Directors. If any officer or senior manager who is made available
to the Parent by the Manager resigns, is terminated or otherwise vacates his or her office, the Manager shall, as soon as practicable
after acceptance of any resignation or after termination, use reasonable best efforts to identify suitable candidates for replacement
of such officer.

 

Section
8.3     The Parent may employ directly, at its sole cost, any other officers, senior managers or employees as it may deem
necessary, and such individuals will not be subject to this Agreement.

    	13

    	

    

Section
8.4     The Manager will report to the Parent and the Board of Directors through any one of more of the Executive Officers
who are made available to the Parent by the Manager or by the Chief Executive Officer of the Manager.

 

Article
IX

MANAGEMENT FEES AND EXPENSES

 

Section
9.1     In consideration of the Manager providing the Services to the Group, during the current Term (which shall begin on
May 29, 2018), the Parent shall pay the Manager ship management fees comprised of: (a) variable fees on the basis of the number
of days that the Parent (or any Subsidiary) owns or charters in each such Vessel during the applicable month; (b) variable fees
on a per day per Vessel basis for vessels chartered-out to a third party on a bareboat charter; (c) variable fees on the basis
of a percentage calculated on the aggregate gross freight, demurrage, charter hire and ballast bonus obtained for the employment
of each Vessel; (d) commissions for the purchase or sale of vessels; and (e) a supervision fee for the construction of newbuilds
(together, the “Management Fees” and, on a per Vessel basis, the “Management Fee”), in each
case, as set forth on Schedule E.

 

Section
9.2     The Manager shall have the right to demand the Management Fee payable in relation to each Vessel from either the
Parent or the relevant member of the Group owning such Vessel under the terms of the relevant Shipmanagement Agreement or Supervision
Agreement, as applicable.

 

Section
9.3     In the event that a Shipmanagement Agreement is terminated, other than by reason of default by the Manager or
in connection with a Manager Substitution, the Management Fee payable to the Manager under subclauses (a) through (c) of
Schedule E or, as the case may be, for the Vessel subject to such Shipmanagement Agreement shall be payable in respect of such
Vessel for a further period of three calendar months from the termination date. In addition, in the event that a Shipmanagement
Agreement is terminated (except in the case of a default by the Manager or a Manager Substitution):

 

(a)     The
relevant member of the Group shall continue to pay Crew Support Costs (as such term is defined in the relevant Shipmanagement Agreement)
for the relevant Vessel during the said further period of three calendar months; and

 

(b)     the
relevant member of the Group shall pay any Severance Costs (as such term is defined in the relevant Shipmanagement Agreement) for
the relevant Vessel which may materialize.

 

All amounts payable to the Manager under
this Section 9.3 shall be paid promptly by the Parent to the Manager following receipt by the Parent of a final accounting of funds
due from the Parent or any other member of the Group in accordance with Section 13.8.

 

Section
9.4     

 

(a)     [INTENTIONALLY
LEFT BLANK].

    	14

    	

    

(b)     For
each Subsequent Term (as defined below), the Management Fee for each Vessel will be set at a mutually agreed-upon rate between
the Parent and the Manager no later than 30 days prior to the commencement of the relevant Subsequent Term.

 

(c)     If
the Parent and the Manager are unable to agree on the Management Fee for any Subsequent Term pursuant to Section 9.4(b) hereof,
the Management Fee for such Subsequent Term will be determined by arbitration pursuant to the terms of Article XVII hereof.

 

Section
9.5     The Manager shall, at no additional cost to any member of the Group, provide the Group with office accommodation,
office staff (including secretarial, accounting and administrative assistance), facilities and stationery, and shall, subject to
Section 9.6 and Section 10.8, pay for all printing, postage, domestic telephone and all other usual office expenses incurred by
it as the Manager (it being understood that the services of the Executive Officers shall be provided pursuant to Section 8.1).

 

Section
9.6     The Parent hereby acknowledges that no capital expenditures, financial costs, operating expenses for each Vessel
or general and administrative expenses of the Group are covered by the Management Fees and any such costs, expenditure and expenses
shall be paid fully by the Parent or, as the case may be, the applicable member of the Group, whether directly to third parties
or by payment to such third parties through the Manager and, without prejudice to Section 10.8, to the extent incurred by the Manager,
shall be reimbursed to it by the Parent and/or any member of the Group from which the Manager, in its discretion, seeks reimbursement.
Such capital expenditures, financial costs, operating expenses for each Vessel and general and administrative expenses of the Group
include, without limiting the generality of the foregoing, items such as:

 

(a)     fees,
interest, principal and any other costs due to the Group’s financiers and their respective advisors;

 

(b)     all
voyage expenses and vessel operating expenses directly relating to the operation and management of the Vessels (including Crew
costs, surveyor’s attendance fees, bunkers, lubricant oils, spares, survey fees, classification society fees, maintenance
and repair costs, vetting expenses, etc.);

 

(c)     any
commissions, fees, remuneration or disbursements due to lawyers, brokers, agents, surveyors, consultants, financial advisors, investment
bankers, insurance advisors or any other third parties whatsoever appointed by the Manager whether in its own name or on behalf
and/or in the name of any member of the Group;

 

(d)     any
commissions, fees, remuneration or disbursements due to lawyers, brokers, agents, surveyors, consultants, financial advisors, investment
bankers, insurance advisors or any other third parties whatsoever sub-contracted to the Manager in the normal and reasonable course
of meeting the Manager’s duties and obligations under this Agreement including, without limiting the generality of the foregoing,
the duties provided in Articles V, VI and VII of this Agreement;

 

(e)     deductibles,
insurance premiums (including D&O insurance) and/or P&I calls; and

    	15

    	

    

(f)     postage,
communication, traveling, victualing and other out-of-pocket expenses of the Manager and/or its personnel, incurred in providing
the Services, save for any such expenses incurred by the Manager under a Supervision Agreement.

 

Article
X

BUDGETS, CORPORATE PLANNING AND EXPENSES

 

Section
10.1     On or before October 20 of each calendar year, the Manager shall prepare and submit to the Executive Officers and
Board of Directors a detailed draft budget for the next calendar year in a format acceptable to the Executive Officers and Board
of Directors and generally used by the Manager which shall include a statement of estimated revenue, estimated general and administrative
expenses of the Group, to the extent the Parent has elected for the Manager to provide such services to the Group, and a proposed
budget for capital expenditures, repairs or alterations, including proposed expenditures in respect of dry-docking, together with
an analysis as to when and why such replacements, improvements, renovations or expenditures may be required (collectively, the
“Draft Budget”).

 

Section
10.2     For a period of 15 days after receipt of the Draft Budget, the Executive Officers or Board of Directors from time
to time, may request further details and submit written comments on the Draft Budget. If the Executive Officers or Board of Directors
do not agree with any item of the Draft Budget, they will, within the same 15-day period, give the Manager notice of any inquiries
to the Draft Budget, which notice will include the list of items under consideration (the “Questioned Items”)
and a proposal for the resolution of each such Questioned Item. The Executive Officers, the Board of Directors and the Manager
will endeavor to resolve any such differences between them with respect to the Questioned Items, and any such differences that
are not resolved within 15 days after notice of such difference being given to the Manager will be settled by arbitration pursuant
to the terms of Article XVII hereof. If the Executive Officers or Board of Directors do not present any Questioned Items within
such 15-day period, they will be deemed to have accepted the Draft Budget and such Draft Budget shall be deemed to be the Approved
Budget (as defined in Section 10.3 below).

 

Section
10.3     By November 20 of the relevant calendar year the Manager will prepare and deliver to the Parent a revised budget
that has been approved by the Board of Directors, in consultation with the Executive Officers (the “Approved Budget”).

 

Section
10.4     The Manager may, from time to time, in any calendar year propose amendments to the Approved Budget upon 15 days’
notice to the Parent, in which event the Executive Officers (or, in the case of a change of 7.5% or more, the Board of Directors)
will have the right to approve the amendments in accordance with the process set out in Section 10.2 with the relevant time periods
being amended accordingly and provided that any Questioned Items are resolved within 45 days of receipt of the notice by the Parent.

 

Section
10.5     Once the Approved Budget has been delivered, the Manager shall prepare and present to the Parent its estimate of
the working capital requirements of the Vessels and the Group and the Manager shall each month update this estimate. Based on such
estimate, the Manager shall each month make a request to the Parent and/or, as the case may be,

    	16

    	

    

the relevant members of the Group, in writing
for the funds required to provide the Services to the applicable members of the Group and to operate each applicable Vessel for
the ensuing month, including the payment of any occasional or extraordinary item of expenditure, such as emergency repair costs,
additional insurance premiums, bunkers or provisions. Such funds shall be received by the Manager within ten calendar days after
the receipt by the Parent or, as the case may be, the relevant member of the Group of the Manager’s written request and shall
be held to the credit of the Parent or, in the Manager’s discretion, the relevant member of the Group in a separate bank
account. At the end of each quarter or, if the Manager from time to time so requires, at the end of each month, the Manager shall
preliminarily reconcile the amounts advanced to it by the Parent or, as the case may be, the relevant member of the Group with
the amounts actually expended by it for the operation of each of the Vessels, and (a) the Manager shall remit to the Parent, or
credit to the Parent amounts to be advanced to it hereunder for future months, any unused portion of the amounts previously advanced
by the Parent or, as the case may be, any member of the Group, or (b) the Parent shall pay to the Manager any amounts properly
expended by the Manager in excess of the amounts previously advanced by the Parent or, as the case may be, any member of the Group.
The Parent and the Manager shall reconcile any amounts due to the Parent by the Manager or due to the Manager by the Parent for
each fiscal year of the Parent as promptly as practicable following the close of each such fiscal year. Without prejudice to Section
10.8, any expenses incurred by the Manager under the terms of this Agreement on behalf of any member of the Group may be debited
against the account of the respective member of the Group, but shall in any event remain payable by the Parent and the relevant
member of the Group to the Manager on demand.

 

Section
10.6     The Manager shall produce a monthly comparison between budgeted and actual expenditures to the Executive Officers.
The Manager shall also maintain the records of all costs and expenses incurred, including any invoices, receipts and supplementary
materials as are necessary or proper for the settlement of accounts.

 

Section
10.7     Insofar as any moneys are collected by the Manager under the terms of this Agreement, any Shipmanagement Agreement
and/or any Supervision Agreement (other than moneys payable by a member of the Group to the Manager), such moneys and any interest
thereon shall be held to the credit of the relevant member of the Group in a separate bank account in the name thereof, but operated
by the Manager and the Parent jointly. Interest on any such bank account shall be for the benefit of the relevant member of the
Group.

 

Section
10.8     Notwithstanding anything contained herein to the contrary, the Manager shall in no circumstances be required to
use or commit its own funds to finance the provision of the Services, other than (i) as contemplated by Section 8.1 hereof or (ii)
with respect to the employees employed by the Manager in the ordinary course of business.

 

Article
XI

LIABILITY AND INDEMNITY

 

Section
11.1     Save for the obligation of the Parent to pay any moneys due to the Manager hereunder, neither any member of the
Group nor the Manager shall be under any liability to the other for any failure to perform any of their obligations hereunder by
reason of

    	17

    	

    

Force Majeure. “Force Majeure”
shall mean any cause whatsoever of any nature or kind beyond the reasonable control of the relevant member of the Group or the
Manager, including, without limitation, acts of God, acts of civil or military authorities, acts of war or public enemy, acts of
any court, regulatory agency or administrative body having jurisdiction, insurrections, riots, strikes or other labor disturbances,
embargoes or other causes of a similar nature.

 

Section
11.2     The Manager, including its officers, directors, employees, shareholders, agents, sub-contractors and any Submanager
(the “Manager Related Parties”), shall be under no liability whatsoever to any member of the Group or to any
third party (including the Crew) for any loss, damage, delay or expense of whatsoever nature, whether direct or indirect (including
but not limited to loss of profit arising out of or in connection with detention of or delay to a Vessel), and howsoever arising
in the course of the performance of this Agreement, any Shipmanagement Agreement or any Supervision Agreement, unless and to the
extent that the same is proved to have resulted solely from the gross negligence or willful misconduct of the Manager, its officers,
employees, agents, sub-contractors or any Submanager.

 

Section
11.3     The Parent shall indemnify and hold harmless the Manager Related Parties against all actions, proceedings, claims,
demands or liabilities whatsoever or howsoever arising which may be brought against them or incurred or suffered by them arising
out of or in connection with the performance of this Agreement, any Shipmanagement Agreement or any Supervision Agreement and against
and in respect of any loss, damage, delay or expense of whatsoever nature (including legal costs and expenses on a full indemnity
basis), whether direct or indirect, incurred or suffered by any Manager Related Party arising out of or in connection with the
performance of this Agreement, any Shipmanagement Agreement and any Supervision Agreement, unless incurred or suffered due to the
gross negligence or willful misconduct of any Manager Related Party.

 

Section
11.4     It is hereby expressly agreed that no employee or agent of the Manager (including any sub-contractor from time to
time employed by the Manager) shall in any circumstances whatsoever be under any liability whatsoever to any member of the Group
or any third party for any loss, damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect
or default on his part while acting in the course of or in connection with his employment and, without prejudice to the generality
of the foregoing provisions in this Article XI, every exemption, limitation, condition and liberty herein contained and every right,
exemption from liability, defense and immunity of whatsoever nature applicable to the Manager or to which the Manager is entitled
hereunder shall also be available and shall extend to protect every such employee or agent of the Manager acting as aforesaid,
and for the purpose of all the foregoing provisions of this Article XI, the Manager is or shall be deemed to be acting as agent
or trustee on behalf of and for the benefit of all Persons who are or might be their servants or agents from time to time (including
sub-contractors as aforesaid) and all such Persons shall to this extent be or be deemed to be parties to this Agreement. Nothing
in this Section 11.4 shall be construed so as to further limit any liability the Manager may have to the Group under Section 11.2
hereof.

 

Section
11.5     The provisions of this Article XI shell survive any termination of this Agreement.

    	18

    	

    

Article
XII

RIGHTS OF THE MANAGER, RESTRICTIONS ON THE MANAGER’S

AUTHORITY, AND NON-COMPETE PROVISIONS

 

Section
12.1     Except as may be provided in this Agreement or in any separate written agreement between the Parent or any other
member of the Group and the Manager, the Manager shall be an independent contractor and not the agent of the Parent or any other
member of the Group and shall have no right or authority to incur any obligation on behalf of any member of the Group or to bind
any member of the Group in any way whatsoever. Nothing in this Agreement shall be deemed to make the Manager or any of its subsidiaries
or employees an employee, joint venturer or partner of any member of the Group.

 

Section
12.2     The Parent acknowledges that the Manager shall have no responsibility hereunder, direct or indirect, with regard
to the formulation of the business plans, policies, management or strategies (financial, tax, legal or otherwise) of any member
of the Group, which is solely the responsibility of each respective member of the Group. Each member of the Group shall set its
corporate policies independently through its respective board of directors and executive officers and nothing contained herein
shall be construed to relieve such directors or officers of each respective member of the Group from the performance of their duties
or to limit the exercise of their powers.

 

Section
12.3     Notwithstanding the other provisions of this Agreement:

 

(a)     the
Manager may act with respect to a member of the Group upon any advice, resolutions, requests, instructions, recommendations, direction
or information obtained from such member of the Group or any banker, accountant, broker, lawyer or other Person acting as agent
of or adviser to such member of the Group and the Manager shall incur no liability to such member of the Group for anything done
or omitted or suffered in good faith in reliance upon such advice, instruction, resolution, recommendation, direction or information
made or given by such member of the Group or its agents, in the absence of gross negligence or willful misconduct by the Manager
or its servants, and shall not be responsible for any misconduct, mistake, oversight, error of judgment, neglect, default, omission,
forgetfulness or want of prudence on the part of any such banker, accountant, broker, lawyer, agent or adviser or other Person
as aforesaid;

 

(b)     the
Manager shall not be under any obligation to carry out any request, resolution, instruction, direction or recommendation of any
member of the Group or its agents if the performance thereof is or would be illegal or unlawful; and

 

(c)     the
Manager shall incur no liability to any member of the Group for doing or failing to do any act or thing which it shall be required
to do or perform or forebear from doing or performing by reason of any provision of any law or any regulation or resolution made
pursuant thereto or any decision, order or judgment of any court or any lawful request, announcement or similar action of any Person
or body exercising or purporting to exercise the legitimate authority of any government or of any central or local governmental
institution in each case where the above entity has jurisdiction.

    	19

    	

    

Section
12.4     

 

(a)     During
the period commencing on the Effective Date and ending one year following termination of the Management Agreement (the “Manager
Restricted Period”), the Manager shall be prohibited from, directly or indirectly, providing management services to,
or with respect to, any Drybulk Vessels (such activities, the “Manager Competitive Activities”), other than
as set forth in Section 12.4(b).

 

(b)     Subject
to Section 4.10, the Manager may engage in Manager Competitive Activities pursuant to its involvement with the Parent and with
respect to the following: (i) Drybulk Vessels that are owned or operated (which includes chartering—in activities) by one
or more of the Hajioannou Entities or a family member of Polys Hajioannou and (ii) Drybulk Vessel Businesses that are acquired,
invested in or controlled by one or more of the Hajioannou Entities or a family member of Polys Hajioannou, in the case of each
of clauses (i) and (ii), subject to compliance with, or waivers of, the Hajioannou Restrictive Covenant Agreement and the Other
Restrictive Covenant Agreement, as applicable.

 

Article
XIII

TERMINATION OF THIS AGREEMENT

 

Section
13.1     This Agreement shall be effective as of the Effective Date and, subject to Sections 13.2, 13.3, 13.4, 13.5 and 13.6,
shall continue until the date falling three years after the Effective Date (the “Initial Term”). Thereafter,
the term of this Agreement shall be automatically extended for an additional three-year period up to two times (each a “Subsequent
Term”) unless the Parent, at least 24 months prior to the end of the then current term, gives written notice to the Manager
(a “Termination Notice”) that it wishes to terminate this Agreement at the end of the then current term. In
no event will the term of this Agreement (the “Term”) extend beyond the date falling 9 years after the Effective
Date (such date, the “Fully-Extended Expiration Date”).

 

Section
13.2     The Parent shall be entitled to terminate this Agreement upon notice in writing to the Manager if:

 

(a)     the
Manager commits a Willful and Material Breach in the performance of its duties under this Agreement, subject to a cure right of
40 Business Days following written notice by the Parent; provided that any default of the Manager to perform any of its
obligations under a relevant Shipmanagement Agreement or any Supervision Agreement shall not, in itself, entitle the Parent to
terminate this Agreement pursuant to this Section 13.2(a); provided, further, that if a Submanager was performing
services under a Shipmanagement Agreement that was terminated due to the default of that Submanager, the Parent shall be entitled
to direct the Manager to remove and replace such Submanager with respect to any other Shipmanagement Agreement under which such
Submanager is then performing services;

 

(b)     an
aggregate amount in excess of 100,000 USD that is due and payable to the Parent or third parties by the Manager under this Agreement
is not paid or accounted for within 20 Business Days following written notice by the Parent; or

    	20

    	

    

(c)     at
any time after May 29, 2024, the Parent delivers 12 months written notice to the Manager (a “Third Term Termination Notice”).

 

Section
13.3     The Manager shall be entitled to terminate this Agreement by notice in writing to the Parent if:

 

(a)     an
aggregate amount in excess of 100,000 USD that is due and payable by the Parent under this Agreement is not paid when due or if
due on demand within 20 Business Days following demand by the Manager;

 

(b)     the
Parent defaults in the performance of any other material obligations under this Agreement, subject to a cure right of 20 Business
Days following written notice by the Manager;

 

(c)     there
is a Change in Control of the Parent; or

 

(d)     the
Management Fee for any Subsequent Term is determined by arbitration pursuant to the terms of Article XVII hereof and the arbitrators
accept the Parent’s proposal, with such termination being effective at the end of that Subsequent Term.

 

Section
13.4     Either party shall be entitled to terminate this Agreement immediately if:

 

(a)     the
other party ceases to conduct business, or all or substantially all of the equity-interests, properties or assets of either such
party is sold, seized or appropriated;

 

(b)     (i)
the other party files a petition under any bankruptcy law, makes an assignment for the benefit of its creditors, seeks relief under
any law for the protection of debtors or adopts a plan of liquidation; (ii) a petition is filed against the other party seeking
to have it declared insolvent or bankrupt and such petition is not dismissed or stayed within 40 Business Days of its filing; (iii)
the other party shall admit in writing its insolvency or its inability to pay its debts as they mature; (iv) an order is made for
the appointment of a liquidator, manager, receiver or trustee of the other party of all or a substantial part of its assets; (v)
or if an encumbrancer takes possession of or a receiver or trustee is appointed over the whole or any part of the other party’s
undertaking, property or assets; or (vi) if an order is made or a resolution is passed for the other party’s winding up;

 

(c)     a
distress, execution, sequestration or other process is levied or enforced upon or sued out against a material amount of the other
party’s property which is not discharged within 20 Business Days;

 

(d)     the
other party ceases or threatens to cease wholly or substantially to carry on its business otherwise than for the purpose of a reconstruction
or amalgamation without insolvency previously approved by the terminating party;

 

(e)     the
other party is prevented from performing its obligations in any material respect hereunder by reasons of Force Majeure for a period
of two or more consecutive months; or

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(f)     All
Supervision Agreements and all Shipmanagement Agreements are terminated in accordance with the respective terms thereof;

 

provided that, in the event of a termination
of this Agreement by the Parent pursuant to this Section 13.4, if the Other Management Agreement remains in effect at such time,
a Manager Substitution shall be deemed to have occurred in respect of each member of the Group for which the Manager is acting
as manager immediately prior to such termination.

 

Section
13.5     Notwithstanding anything to the contrary set forth herein, if the Manager has requested a Manager Substitution with
respect of any member of the Group prior to any termination of this Agreement by the Parent, such termination shall not be effective
until such Manager Substitution has been completed.

 

Section
13.6     

 

(a)     In
the event that this Agreement is terminated prior to the Fully-Extended Expiration Date (including, without limitation, pursuant
to a Third Term Termination Notice), other than pursuant to (i) Parent’s termination of this Agreement pursuant to Section
13.4(a) through (e), (ii) a termination resulting from Manager’s Willful and Material Breach of this Agreement or (iii) a
termination pursuant to a Termination Notice delivered by Parent to the Manager in accordance with Section 13.1, then, Parent shall
pay to the Other Manager the Termination Fee, which amount shall be payable by wire transfer of immediately available funds, within
three (3) business days of such termination to an account designated in writing by Manager.

 

(b)     Notwithstanding
anything to the contrary in this Agreement, Parent, on behalf of itself and any other member of the Group, on the one hand, and
the Manager, on the other hand, acknowledge and agree that the Termination Fee is not a penalty, but rather is liquidated damages
in a reasonable amount that will compensate the Manager and the Other Manager in the circumstances in which the Termination Fee
is payable for the investments, efforts, expenses and resources expended and opportunity forgone in reliance on this Agreement
and on the expectation of completing the services contemplated hereby, which amount would otherwise be impossible to calculate
with precision.

 

(c)     If
Parent fails to pay in a timely manner the Termination Fee due pursuant to Section 13.6(a), Parent shall pay interest on the Termination
Fee at the prime rate of Bank of America, N.A. in effect from time to time from the date such payment was required to be made hereunder.

 

(d)     Notwithstanding
the foregoing, no Termination Fee shall be payable by Parent if the Termination Fee (as defined in the Other Management Agreement)
has been paid to the Manager pursuant to the Other Management Agreement.

 

(e)     Notwithstanding
the foregoing, no Termination Fee shall be payable in the event that (i) the Manager has terminated this Agreement pursuant to
Section 13.3(c) or Section 13.4(f) (as a result of a Manager Substitution), (ii) the Other Agreement remains in effect and (iii)
each of the Vessels and/or Newbuilds managed pursuant to this Agreement immediately prior to termination thereof are managed by
the Other Manager pursuant to the Other Agreement.

    	22

    	

    

(f)     The
Other Manager shall be a third party beneficiary to any rights to which the Other Manager is entitled pursuant to this Section
13.6.

 

Section
13.7     Upon the effective date of termination pursuant to this Article XIII, the Manager shall promptly terminate its service
hereunder, ensuring that such termination occurs in a manner that minimizes any interruption to the business of the members of
the Group.

 

Section
13.8     Upon termination, the Manager shall, as promptly as possible, submit a final accounting of funds received and disbursed
under this Agreement, any Supervision Agreement and/or any. Shipmanagement Agreement and of any remaining Management Fees and/or
any other funds due from the Parent or any other member of the Group, calculated pro rata to the date of termination (except for
those amounts payable in respect of the three months following the termination date under Section 9.3, which shall be payable by
the Parent in accordance with that Section), and any non-disbursed funds of any member of the Group in the Manager’s possession
or control will be paid by the Manager as directed by such member of the Group promptly upon the Manager’s receipt of all
sums then due it under this Agreement, any Supervision Agreement and/or any Management Agreement, if any.

 

Section
13.9     Upon termination of this Agreement, the Manager shall release to the Parent the originals where possible, or otherwise
certified copies, of all such accounts and all documents specifically relating to each Vessel or the provision of the Services.

 

Section
13.10     The provisions of this Article XIII shall survive any termination of this Agreement.

 

Article
XIV

CHANGE IN CONTROL OF THE MANAGER AND RIGHT OF FIRST OFFER

 

Section
14.1     During the Manager Restricted Period, the Manager is prohibited from transferring, assigning, selling or disposing
of substantially all or all of its assets or property that is necessary for the performance of its services under this Agreement,
any Supervision Agreement or any Shipmanagement Agreement to any other party without the Consent of the Parent except in the event
that at the same time as or within three months after such disposition takes place the Manager is set to replace the same with
equivalent assets or property.

 

Section
14.2     During the Manager Restricted Period, in the event of a Proposed Change in Control of the Manager, the Parent shall
have a right of first offer to purchase the Manager pursuant to the procedures set forth in Section 14.4.

 

Section
14.3     The Parent and the Manager acknowledge that all potential transfers pursuant to this Article XIV are subject to
obtaining any and all written consents of governmental authorities and other non-affiliated third parties.

 

Section
14.4     Set forth below are the procedures for the Parent’s right of first offer to purchase the Manager under Section
14.2:

    	23

    	

    

(a)     Prior
to engaging in any negotiations or otherwise offering to consummate a Proposed Change in Control of the Manager with any third
party, the Manager shall provide written notice of its intent to engage in a Proposed Change in Control of the Manager (a “First
Offer Notice”) and shall specify in such First Offer Notice the material terms and conditions (including the consideration
to be paid, which shall be in cash) on which it would be willing to consummate a Proposed Change in Control of the Manager with
the Parent, including any liabilities to be assumed by the Parent.

 

(b)     The
Parent shall notify the Manager within 30 days after receiving a First Offer Notice (the “First Offer Period”)
that either (i) the Parent does not wish to participate in a Proposed Change in Control of the Manager (a “Negative Response”)
or (ii) the Parent does wish to participate in a Proposed Change in Control of the Manager, subject to the negotiation of the terms
and conditions of the Proposed Change in Control of the Manager in accordance with the provisions of this Article XIV (an “Affirmative
Response”).

 

(c)     In
the event of an Affirmative Response, the Parent and the Manager shall negotiate in good faith during the First Offer Period the
terms and conditions of an agreement for the consummation of a Proposed Change in Control of the Manager with the Parent and such
terms and conditions are to be based on the terms and conditions set forth in the First Offer Notice.

 

(d)     In
the event of a Negative Response or in the event the Parent and the Manager are unable to agree on the terms and conditions of
an agreement for the consummation of a Proposed Change in Control of the Manager during the First Offer Period, then the Manager
may consummate a Proposed Change in Control of the Manager within 120 days after the earlier of the date the Manager receives a
Negative Response and the end of the First Offer Period with a third party on terms and conditions as to price that are not more
favorable, and on such other terms and conditions that are not materially more favorable, to the proposed purchaser than the terms
and conditions specified in the First Offer Notice.

 

(e)     If
the Manager does not consummate a Proposed Change in Control of the Manager to a third party within 120 days after the earlier
of the date the Manager receives a Negative Response from the Parent and the end of the First Offer Period in accordance with Section
14.4(d) then the Manager shall not thereafter consummate a Proposed Change in Control of the Manager without first offering to
consummate a Proposed Change in Control of the Manager with the Parent in the manner provided above.

 

Section
14.5     Upon request of the Parent, the Manager shall promptly disclose to the Parent the respective ownership, both record
and beneficial, interests in the Manager of (a) the Hajioannou Entities, (b) directors, officers and employees of the Manager as
a group, and (e) any other persons who are record or beneficial owners of the Manager, together with the identities of such other
persons.

    	24

    	

    

Article
XV

NOTICES

 

Section
15.1     All notices, consents and other communications hereunder, or necessary to exercise any rights granted hereunder,
shall be in writing, sent by prepaid registered mail, and will be validly given if delivered on a Business Day to an individual
at the following address:

 

If to the Parent:

 

Safe Bulkers, Inc.

Apt. D11

Les Acanthes

6, Avenue des Citronniers

MC98000 Monaco

 

Attention: President

 

If to the Manager:

 

Safety Management Overseas S.A.

32 Avenue K. Karamanli

P.O. Box 70837

16605 Voula

Athens, Greece

Attention: Managing Director

 

Section
15.2     Parent and Manager shall deliver written notice to the other party of any change in their respective address from
that which is set forth in this Section 15.1.

 

Article
XVI

APPLICABLE LAW

 

Section
16.1     This Agreement shall be governed by, and construed in accordance with, the laws of England.

 

Section
16.2     Except for Section 3.5 and Article XI which can be relied upon by a Submanager, no other term of this Agreement
is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

    	25

    	

    

Article
XVII

ARBITRATION

 

Section
17.1     Any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance
with the Arbitration Act 1996 or any statutory modification or re-enactment thereof save to the extent necessary to give effect
to the provisions of this Article XVII. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association
(LMAA) Terms current at the time when the arbitration proceedings are commenced.

 

Section
17.2     The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its
arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator
within 14 calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party
appoints its own arbitrator and gives notice that it has done so within the 14 days specified. If the other party does not appoint
its own arbitrator and give notice that it has done so within the 14 days specified, the party referring a dispute to arbitration
may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall
advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if he had been appointed
by agreement. Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for the appointment
of a sole arbitrator.

 

Section
17.3     In the case of (i) any failure of the parties to agree on the Management Fee for any Subsequent Term within 30 days
prior to the commencement of that Subsequent Term or (ii) any failure of the parties to agree upon the resolution of any Questioned
Items in a Draft Budget prior to the 20th of November of a calendar year, the terms of this Section 17.3 shall be applicable. Notwithstanding
any contrary provisions of this Article XVII (but otherwise subject to such provisions), the following “Baseball Arbitration”
provisions shall apply to the matters referred to in clauses (i) and (ii) above:

 

(a)     Each
party shall designate one arbitrator within 5 business days following the relevant date specified in clause (i) or (ii) above;
and the two arbitrators so designated shall designate a third within 10 Business Days thereafter; provided, however,
that the parties may agree to a single arbitrator. If either party fails to designate an arbitrator within such 5 Business Day
period, the other arbitrator can render an award hereunder.

 

(b)     Each
party shall propose an amount for each item in dispute that is subject to this Section 17.3, which shall be provided in writing
to the arbitrators, together with any supporting documentation. Such proposed amounts may differ from the amounts proposed by the
parties in their negotiations prior to triggering the implementation of this Section 17.3. The arbitrators may, but shall not be
required to, accept oral testimony in addition to supporting documentation.

 

(c)     Within
20 Business Days following the selection of the arbitrators hereunder, they shall, by majority vote, accept the proposal of one
party or the other for each item that is the subject of arbitration pursuant to this Section 17.3.

    	26

    	

    

(d)     Awards
under this Section 17.3 shall not include costs, but may include interest if the payment date for any amount shall have passed.
The fees and expenses of the arbitrators under this Section 17.3 shall be borne by the losing party (and may be apportioned by
the arbitrators if more than one item is the subject of an arbitration).

 

(e)     Awards
under this Section 17.3 shall be final and binding on the parties.

 

Article
XVIII

MISCELLANEOUS

 

Section
18.1     This Agreement (which includes the Annex) constitutes the sole understanding and agreement of the parties hereto
with respect to the subject matter hereof and supersedes all prior agreements or understandings, written or oral, with respect
thereto. This Agreement may not be amended, waived or discharged except by an instrument in writing executed by the party against
whom enforcement of such amendment, waiver or discharge is sought.

 

Section
18.2     During the term hereof, the Manager will not provide services hereunder through, or otherwise cause any member of
the Group to have, an office or fixed place of business in the United States.

 

Section
18.3     This Agreement may be executed in one or more written counterparts, each of which shall be deemed an original, but
all of which together shall constitute one instrument.

 

Section
18.4     

 

(a)     When
a reference is made to an Article, Section or Schedule, such reference shall be to an Article, Section or Schedule of this Agreement
unless otherwise indicated.

 

(b)     Whenever
the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed
to be followed by the words “without limitation”.

 

(c)     Unless
the context requires otherwise, words using the singular or plural number also include the plural or singular number, respectively,
the use of any gender herein shall be deemed to include the other genders, words denoting natural persons shall be deemed to include
business entities and vice versa and references to a Person are also to its permitted successors and assigns.

 

(d)     References
to “Euro” or “€” are to the currency of the European Monetary Union.

 

(e)     References
to “Dollar” or “$” are to the currency of the United States.

 

(f)     References
to any statute shall be deemed to refer to such statute as amended from time to time and to any rules or regulations promulgated
thereunder.

    	27

    	

    

Section
18.5     For the avoidance of doubt, the Shipmanagement Agreements and Supervision Agreements in effect immediately prior
to the Effective Date remain in full force and effect; provided, however, that, in the event of a conflict between a Shipmanagement
Agreement or a Supervision Agreement, on the one hand, and this Agreement, on the other hand, this Agreement shall control.

 

[Signature Page Follows]

    	28

    	

    

IN WITNESS WHEREOF the undersigned have
executed this Agreement as of the date first above written.

 

	 	Safe Bulkers, Inc.
	 	 	 
	 	By:	/s/ Loukas Barmparis 
	 	Name:	Loukas Barmparis
	 	Title:	President
	 	 	 
	 	SAFETY MANAGEMENT OVERSEAS S.A.
	 	 	 
	 	By:	/s/ Michael Michael 
	 	Name: 	Michael Michael
	 	Title:	General Manager

 

[Signature Page to Management Agreement]

    	 

    	

    

APPENDIX I

 

Form of Hajioannou Entities Restrictive
Covenant Agreement

    	 

    	

    

APPENDIX II

 

Form of Polys Hajioannou Restrictive
Covenant Agreement

    	 

    	

    

APPENDIX III

 

Form of Shipmanagement Agreement

    	 

    	

    

APPENDIX IV

 

Form of Supervision Agreement

    	 

    	

    

SCHEDULE A

 

Shipowning Subsidiaries

 

	Subsidiary	Jurisdiction of Incorporation
	Avstes Shipping Corporation	Liberia
	Eniadefhi Shipping Corporation	Liberia
	Eniaprohi Shipping Corporation	Liberia
	Eptaprohi Shipping Corporation	Liberia
	Glovertwo Shipping Corporation	Marshall Islands
	Gloverfour Shipping Corporation	Marshall Islands
	Gloverfive Shipping Corporation	Marshall Islands
	Gloversix Shipping Corporation	Marshall Islands
	Kerasies Shipping Corporation	Liberia
	Marathassa Shipping Corporation	Liberia
	Marindou Shipping Corporation	Liberia
	Marinouki Shipping Corporation	Liberia
	Maxdeka Shipping Corporation	Marshall Islands
	Maxdekatria Shipping Corporation	Liberia
	Maxdodeka Shipping Corporation	Liberia
	Maxeikosi Shipping Corporation	Liberia
	Maxeikosiena Shipping Corporation	Liberia
	Maxeikositria Shipping Corporation	Liberia
	Maxeikositessera Shipping Corporation	Marshall Islands
	Maxeikosiexi Shipping Corporation	Liberia
	Maxeikosiepta Shipping Corporation	Liberia
	Maxenteka Shipping Corporation	Marshall Islands
	Maxpente Shipping Corporation	Liberia
	Maxtessera Shipping Corporation	Marshall Islands
	Pelea Shipping Ltd.	Liberia
	Pemer Shipping Ltd.	Liberia
	Pentakomo Shipping Corporation	Marshall Islands
	Petra Shipping Ltd.	Liberia
	Shikoku Friendship Shipping Company	Marshall Islands
	Soffive Shipping Corporation	Liberia
	Shikokutessera Shipping Inc	Marshall Islands
	Shikokupente Shipping Inc	Marshall Islands
	Shikokuexi Shipping Inc.	Marshall Islands
	Shikokuepta Shipping Inc.	Marshall Islands
	Shikokuokto Shipping Inc.	Marshall Islands
	Vassone Shipping Corporation	Marshall Islands
	Vasstwo Shipping Corporation	Liberia
	Youngone Shipping Inc.	Marshall Islands
	Youngtwo Shipping Inc.	Marshall Islands

    	 

    	

    

SCHEDULE B

 

Non-Shipowning Subsidiaries

 

	Subsidiary	Jurisdiction of Incorporation
	Gloverthree Shipping Corporation	Marshall Islands
	Gloverseven Shipping Corporation	Marshall Islands
	Kyotofriendo One Shipping Inc.	Marshall Islands
	Kyotofriendo Two Shipping Inc.	Marshall Islands
	Maxeikosipente Shipping Corporation	Liberia
	Staloudi Shipping Corporation	Liberia
	Shikokuennia Shipping Inc.	Marshall Islands

    	 

    	

    

SCHEDULE C

 

Group Members Managed by Manager

 

	Company	Jurisdiction of Incorporation
	Safe Bulkers Inc.	Marshall Islands
	Eptaprohi Shipping Corporation	Liberia
	Gloverthree Shipping Corporation	Marshall Islands
	Gloverseven Shipping Corporation	Marshall Islands
	Kyotofriendo One Shipping Inc.	Marshall Islands
	Kyotofriendo Two Shipping Inc.	Marshall Islands
	Maxeikosi Shipping Corporation	Liberia
	Maxeikosiena Shipping Corporation	Liberia
	Maxeikositria Shipping Corporation	Liberia
	Maxeikosipente Shipping Corporation	Liberia
	Maxpente Shipping Corporation	Liberia
	Maxtessera Shipping Corporation	Marshall Islands
	Staloudi Shipping Corporation	Liberia
	Shikokuennia Shipping Inc.	Marshall Islands
	Youngone Shipping Inc.	Marshall Islands
	Youngtwo Shipping Inc.	Marshall Islands

    	 

    	

    

SCHEDULE D

 

Newbuilds

 

	Subsidiary	Jurisdiction of Incorporation	Vessel Name
	Pinewood Shipping Corporation	Marshall Islands	 TBN – H 1552

    	 

    	

    

SCHEDULE E

 

Ship Management Fees, Commissions and
Supervision Fees

 

In consideration of the Manager providing
the Services to the Group, during the current Term (which shall begin on May 29, 2018), the Parent shall pay the Manager the following
ship management fees:

 

(a)     a
variable ship management fee of Euro 875 per day per Vessel, payable monthly in arrears (pro rated to reflect the number of days
that the Parent (or any Subsidiary) owns or charters in each such Vessel during the applicable month);

 

(b)     a
variable ship management fee of Euro 250 per day per Vessel chartered-out to a third party on a bareboat charter basis, payable
monthly in arrears;

 

(c)     a
variable fee equal to 0.0% calculated on the aggregate of the gross freight, demurrage, charter hire and ballast bonus obtained
for the employment of each Vessel during the Term, payable to the Manager monthly in arrears, but only to the extent such freight,
demurrage, charter hire or ballast bonus, as the case may be, is recognized as revenue;

 

(d)     a
commission equal to 1% calculated on the price set forth in the memorandum of agreement or other sale and purchase contract of
(i) the Newbuilds set forth on Schedule D hereto, payable upon delivery of the Newbuilds to the relevant member of the Group; and
(ii) any other Vessel bought or sold by the Parent or any Subsidiary, payable upon final delivery of such vessel to the relevant
member of the Group or the relevant purchaser, as applicable; and

 

(e)     a
supervision fee of $550,000 per Newbuild for the services rendered by the Manager under the Supervision Agreement in respect of
such Newbuild, payable in accordance with the terms of such Supervision Agreement.

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