Document:

Exhibit 4.2

 

 

SAFE BULKERS, INC.

 

- and -

 

SAFE BULKERS MANAGEMENT LIMITED

 

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	24
	 	 
	Article XVI APPLICABLE LAW	25
	 	 
	Article XVII ARBITRATION	25
	 	 
	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

    	 

    	

    

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)     SAFE BULKERS MANAGEMENT
LIMITED, a company organized and existing under the laws of the Republic of Cyprus (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.

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“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.

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“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, 2015, as amended and restated on 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 Safety
Management Overseas S.A., a company organized and existing under the laws of the Republic of Panama.

 

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

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(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 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.

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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;

 

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

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(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.

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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.

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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

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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; (e) a supervision fee for the construction
of newbuilds; and (f) a flat fee on an annual basis (the “Annual Fee”) (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, 13.2(c),
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

    	21

    	

    

(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 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 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

    	

    

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:

 

(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

    	23

    	

    

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.

 

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

    	24

    	

    

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:

 

Safe Bulkers Management Limited

KPMG Building – Office G1B

Agias Fylaxeos 1

3025 Limassol

Cyprus

 

Attention: 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.

 

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.

    	25

    	

    

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.

 

(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.

    	26

    	

    

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.

 

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.

    	27

    	

    

[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
	 	 	 
	 	SAFE BULKERS MANAGEMENT LIMITED
	 	 	 
	 	By:	/s/  George Papadopoulos	 
	 	Name:	 George Papadopoulos
	 	Title:	 Director

 

[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
	Avstes Shipping Corporation	Liberia
	Eniadefhi Shipping Corporation	Liberia
	Eniaprohi 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
	Maxeikositessera Shipping Corporation	Marshall Islands
	Maxeikosiexi Shipping Corporation	Liberia
	Maxeikosiepta Shipping Corporation	Liberia
	Maxenteka Shipping Corporation	Marshall Islands
	Pelea Shipping Ltd.	Liberia
	Pemer Shipping Ltd.	Liberia
	Pentakomo Shipping Corporation	Marshall Islands
	Petra Shipping Ltd.	Liberia
	Pinewood Shipping Corporation	Marshall Islands
	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

    	 

    	

    

SCHEDULE D

 

Newbuilds

 

	Subsidiary	Jurisdiction of Incorporation	Vessel Name

    	 

    	

    

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.

 

(f)     A
flat ship management fee (Annual Fee) of Euro 3,000,000 per annum, payable quarterly in arrears (pro-rated to reflect the number
of days that such fee is payable during the applicable quarter).

 

Notwithstanding anything to the contrary set forth
in this Agreement, Parent’s obligation to pay the Annual Fee shall survive the termination of this Agreement, and shall be
payable by Parent to the Manager for so long as either this Agreement or the Other Management Agreement remains in effect.Exhibit 4.5

 

Dated 22 September 2014

as amended by supplemental agreements dated 20 February 2015

and 15 December 2015

as amended and restated on 22 February 2016

as further amended by supplemental agreements dated 1 June 2016

and 8 December 2016,

as further amended and restated on 26 July 2017

and as further amended and restated on 3 October 2018

 

SAFE BULKERS,
INC.

as Borrower

 

and

 

THE FINANCIAL
INSTITUTIONS

listed in Schedule 1

as Original Lenders

 

and

 

DNB BANK
ASA

as Mandated Lead Arranger

 

and

 

DNB BANK
ASA

as Agent

 

and

 

DNB BANK
ASA

as Swap Provider

 

and

 

DNB BANK
ASA

as Security Agent

 

AMENDED AND
RESTATED LOAN AGREEMENT

 

relating to

$142,000,000 term loan facility

    	 

    	

    

Index

 

	Clause	 	Page
	 	 	 
	Section 1 Interpretation	 	2
	1	Definitions and Interpretation	 	2
	Section 2 The Loan	 	28
	2	The Loan	 	28
	3	Purposes	 	28
	4	Conditions of Utilisation	 	28
	Section 3 Utilisation	 	30
	5	Advance	 	30
	Section 4 Repayment, Prepayment and Cancellation	 	31
	6	Repayment	 	31
	7	Illegality, Prepayment and Cancellation	 	31
	Section 5 Costs of Utilisation	 	37
	8	Interest	 	37
	9	Interest Periods	 	38
	10	Changes to the Calculation of Interest	 	38
	11	Fees	 	39
	Section 6 Additional Payment Obligations	 	41
	12	Tax Gross Up and Indemnities	 	41
	13	Increased Costs	 	49
	14	Other Indemnities	 	50
	15	Mitigation by the Lenders	 	52
	16	Costs and Expenses	 	52
	Section 7 Security and Application of Moneys	 	54
	17	Security Documents and Application of Moneys	 	54
	Section 8 Representations, Undertakings and Events of Default	 	59
	18	Representations	 	59
	19	Information Undertakings	 	64
	20	Financial Covenants	 	66
	21	General Undertakings	 	67
	22	Events of Default	 	74
	Section 9 Changes to Parties	 	79
	23	Changes to the Lenders	 	79
	24	Changes to the Security Parties	 	82
	Section 10 The Finance Parties	 	83
	25	Role of the Agent, the Security Agent and the Arranger	 	83
	26	Conduct of Business by the Finance Parties	 	93
	27	Sharing among the Finance Parties	 	93
	Section 11 Administration	 	95
	28	Payment Mechanics	 	95
	29	Set-Off	 	99
	30	Notices	 	99
	31	Calculations and Certificates	 	102
	32	Partial Invalidity	 	102
	33	Remedies and Waivers	 	102
	34	Amendments and Waivers	 	103
	35	Confidentiality	 	106
	36	Disclosure of Lender Details by Agent	 	109

    	 

    	

    

	37	Counterparts	 	111
	Section 12 Governing Law and Enforcement	 	112
	38	Governing Law	 	112
	39	Enforcement	 	112
	40	Bail-In	 	112
	 	 	 	 
	Schedules	 	 
	 	 	 	 
	Schedule 1 The Original Lenders	 	114
	Schedule 2	 	115
	 	Part A Conditions Precedent	 	115
	 	Part B Conditions Subsequent	 	120
	 	Part C Delivery Conditions Precedent	 	121
	 	Part D Delivery Conditions Subsequent	 	124
	Schedule 3 Drawdown Request	 	125
	Schedule 4 Form of Transfer Certificate	 	126
	Schedule 5 Form of Assignment Agreement	 	129
	Schedule 6 Form of Compliance Certificate	 	132
	Schedule 7	 	134
	 	 	 
	Execution	 	 
	 	 	 
	Execution Page	 	134

    	 

    	

    

THIS
AGREEMENT is made on 22 September 2014 as amended by supplemental agreements dated 20 February 2015 and 15 December
2015, as further amended and restated by an amending and restating agreement dated 22 February 2016, as further amended by supplemental
agreements dated 1 June 2016 and 8 December 2016, as further amended and restated by an amending and restating agreement dated
26 July 2017 and is further amended and restated by the Deed of Amendment, Restatement, Release and Confirmation.

 

Parties

 

		(1)	SAFE BULKERS, INC., a corporation incorporated under the law of the Republic of the Marshall
Islands, with its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
(the “Borrower”)

 

		(2)	The Financial Institutions listed in Schedule 1 (The Original Lenders), each acting
through its Facility Office (together the “Original Lenders” and each an “Original Lender”)

 

		(3)	DNB BANK ASA, acting as mandated lead arranger through its office at 8th Floor, The Walbrook
Building, 25 Walbrook, London EC4N 8AF, England (in that capacity, the “Arranger”)

 

		(4)	DNB BANK ASA, acting as agent through its office at 8th Floor, The Walbrook Building, 25
Walbrook, London EC4N 8AF, England (in that capacity, the “Agent”)

 

		(5)	DNB BANK ASA, acting as swap provider through its office at 8th Floor, The Walbrook Building,
25 Walbrook, London EC4N 8AF, England (in that capacity, the “Swap Provider”)

 

		(6)	DNB BANK ASA, acting as security agent through its office at 8th Floor, The Walbrook Building,
25 Walbrook, London EC4N 8AF, England (in that capacity, the “Security Agent”)

 

Background

 

		(A)	Each Collateral Owner is a wholly owned subsidiary of the Borrower and is the registered owner
of the relevant Vessel and has registered that Vessel under an Approved Flag.

 

		(B)	Each of the Original Lenders had agreed to advance a secured term loan of originally up to $210,000,000
to provide post-delivery financing in respect of the Vessels and for general corporate purposes.

 

		(C)	By the Deed of Amendment, Restatement, Release and Confirmation, the Borrower, the other Security
Parties and the Finance Parties agreed, amongst other things, to:

 

		(i)	split the Term Loan Facility, currently outstanding, into two separate Tranches;

 

		(ii)	extend the maturity date of the Loan; and

 

		(iii)	amend the applicable Margin for each Tranche.

 

		(D)	This Agreement sets out the terms and conditions of the Loan Agreement as amended and restated
by the Deed of Amendment, Restatement, Release and Confirmation.

 

Operative
Provisions

    	 

    	

    

Section
1

 

Interpretation

 

		1	Definitions and Interpretation

 

		1.1	Definitions

 

In this Agreement:

 

“Acceptable
Bank” means a bank or financial institution which has a rating for its long-term unsecured and non-credit-enhanced debt
obligations of A- or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or A3 or higher by Moody’s
Investors Service Limited or a comparable rating from an internationally recognised credit rating agency.

 

“Acceptable
Charter” means, in respect of a Vessel or any other Group Vessel:

 

		(a)	each Existing Charter Provided that:

 

		(i)	it has an unexpired term of at least three (3) months’ duration;

 

		(ii)	it remains secured by the Existing Charter Performance Guarantee relevant thereto;

 

		(iii)	in the opinion of the Agent (at its absolute discretion) the financial condition of the charterer
who is a party thereto has not deteriorated; and

 

		(iv)	it has not been terminated, repudiated, cancelled, suspended, rescinded, revoked or otherwise ceases
to remain in full force and effect other than by effluxion of time; and

 

		(b)	any other time charter or other contract of employment which:

 

		(i)	has an unexpired term of at least three (3) months’ duration; and

 

		(ii)	has been entered into by and between the respective Collateral Owner or the respective owner of
any other Group Vessel (as the case may be) and a charterer which has a minimum credit rating of “BBB-” or better according
to Standard and Poor’s or “Baa3” or better according to Moody’s; and/or

 

		(iii)	has not been terminated, repudiated, cancelled, suspended, rescinded, revoked or otherwise ceases
to remain in full force and effect, at any time during the Facility Period,

 

or any other
charter acceptable to the Agent.

 

“Account
Holder” means DNB Bank ASA, acting through its office at 8th Floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF,
England or any other bank or financial institution which at any time, with the Security Agent’s prior written consent (such
consent not to be unreasonably withheld or delayed), holds the Earnings Accounts.

    	2

    	

    

“Accounting
Information” means the annual financial statements and/or quarterly financial statements to be provided by the Borrower
to the Agent in accordance with Clause 19.1 (Financial statements).

 

“Account
Security Deed” means the account security deed referred to in Clause 17.1(d) (Security Documents).

 

“Administration”
has the meaning given to it in paragraph 1.1.3 of the ISM Code.

 

“Affiliate”
means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that
Holding Company.

 

“Annex
VI” means Annex VI (Regulations for the Prevention of Air Pollution from Ships) to the International Convention for the
Prevention of Pollution from Ships 1973 (as modified in 1978 and 1997).

 

“Approved
Flag” means the flag of the Republic of Cyprus, the Republic of the Marshall Islands or any other flag acceptable to
the Agent in its absolute discretion (such acceptance not to be unreasonably withheld or delayed).

 

“Approved
Shipbroker” means each of Arrow Chartering (UK), Braemar Seascope Group, Clarksons PLC and Fearnleys and any other reputable,
independent and first class firm of ship brokers requested by the Borrower and accepted by the Agent in its absolute discretion
(such acceptance not to be unreasonably withheld or delayed).

 

“Assignments”
means all the forms of assignment referred to in Clause 17.1(b) (Security Documents).

 

“Assignment
Agreement” means an agreement substantially in the form set out in Schedule 5 (Form
of Assignment Agreement) or any other form agreed between the relevant assignor and assignee.

 

“Authorisation”
means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

 

“Availability
Period” means in relation to the Term Loan Facility the period which ended on 8 February 2016.

 

“Bail-In
Action” means the exercise of any Write-down and Conversion Powers.

 

“Bail-In
Legislation” means:

 

		(a)	in relation to an EEA Member Country which has implemented, or which at any time implements, Article
55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms,
the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

 

		(b)	in relation to any other state, any analogous law or regulation from time to time which requires
contractual recognition of any Write-down and Conversion Powers contained in that law or regulation.

 

“Balloon
Instalment” means Tranche A Balloon Instalment or Tranche B Balloon Instalment.

    	3

    	

    

“Break
Costs” means the amount (if any) by which:

 

		(a)	the interest (excluding the Margin) which a Lender should have received for the period from the
date of receipt of all or any part of its participation in the Loan or an Unpaid Sum to the last day of the current Interest Period
in respect of the Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest
Period;

 

exceeds:

 

		(b)	the amount which that Lender would be able to obtain by placing an amount equal to the principal
amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the
Business Day following receipt or recovery and ending on the last day of the current Interest Period.

 

“Builder”
means the person specified as such in the definition of “Newbuilding Vessel” below.

 

“Building
Contract” means the memorandum of agreement in respect of the Newbuilding Vessel dated 7 December 2011 (as amended and/or
supplemented) on the terms and subject to the conditions of which the Seller has agreed to sell and deliver the Newbuilding Vessel
to be constructed by the Builder to Shikokuexi.

 

“Business
Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in New York, Athens and
London.

 

“Cash”
means, at any time, cash credited to a bank account in the name of any of the Borrower, the Collateral Owners or a member of the
Group and to which the Borrower, the Collateral Owners or a member of the Group are beneficially entitled to.

 

“Charged
Property” means all of the assets of the Security Parties which from time to time are, or are expressed to be, the subject
of the Security Documents.

 

“Charter”
means, in respect of a Vessel, any charter or contract of employment of a duration which is equal to or exceeds or (inclusive of
any extension option) is capable of exceeding twelve (12) months on the terms and subject to the conditions of which a Collateral
Owner has chartered or will charter its Vessel to a charterer.

 

“Code”
means the US Internal Revenue Code of 1986.

 

“Collateral
Owners” means together Eniadefhi Shipping Corporation (“Eniadefhi”), Eniaprohi Shipping Corporation
(“Eniaprohi”), Maxdodeka Shipping Corporation (“Maxdodeka”), Pelea Shipping Ltd. (“Pelea”)
and Vasstwo Shipping Corporation (“Vasstwo”), each a corporation incorporated under the laws of the Republic
of Liberia whose registered address is at 80 Broad Street, Monrovia, Liberia, Vassone Shipping Corporation (“Vassone”)
a corporation domesticated under the laws of the Republic of the Marshall Islands whose registered address is at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, Gloverfour Shipping Corporation (“Gloverfour”),
Gloverfive Shipping Corporation (“Gloverfive”) and Shikokuexi Shipping Inc. (“Shikokuexi”),
Youngone Shipping Corporation (“Youngone”), each a corporation incorporated under the laws of the Republic of
the Marshall Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH 96960 and “Collateral Owner” means each one of them.

 

“Commitment”
means:

    	4

    	

    

		(a)	in relation to an Original Lender, the amount set opposite its name under the heading “Commitment”
in Schedule 1 (The Original Lenders) and the amount of any other Commitment transferred to it under this Agreement; and

 

		(b)	in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,

 

to the extent not cancelled,
reduced or transferred by it under this Agreement.

 

“Commitment
Fee” means the commitment fee paid or to be paid by the Borrower to the Agent under Clause 11.2 (Commitment Fee).

 

“Compliance
Certificate” means a certificate substantially in the form set out in Schedule 6 (Form
of Compliance Certificate).

 

“Confidential
Information” means all information relating to any Security Party, the Finance Documents or the Loan of which a Finance
Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party which is received by a Finance Party in
relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the Loan from either:

 

		(a)	any Security Party or any of its advisers; or

 

		(b)	another Finance Party, if the information was obtained by that Finance Party directly or indirectly
from any Security Party or any of its advisers,

 

in whatever form, and includes
information given orally and any document, electronic file or any other way of representing or recording information which contains
or is derived or copied from such information but excludes information that:

 

		(i)	is or becomes public information other than as a direct or indirect result of any breach by that
Finance Party of Clause 35 (Confidentiality); or

 

		(ii)	is identified in writing at the time of delivery as non-confidential by any Security Party or any
of its advisers; or

 

		(iii)	is known by that Finance Party before the date the information is disclosed to it in accordance
with (a) or (b) or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party
is aware, unconnected with any Security Party and which, in either case, as far as that Finance Party is aware, has not been obtained
in breach of, and is not otherwise subject to, any obligation of confidentiality.

 

“Confidentiality
Undertaking” means a confidentiality undertaking substantially in a recommended form of the Loan Market Association at
the relevant time.

 

“Confirmation”
means a Confirmation exchanged or deemed to be exchanged between the Swap Provider and the Borrower as contemplated by the Master
Agreement.

 

“Consolidated
Group Leverage” means at any relevant time Consolidated Total Liabilities divided by Consolidated Total Assets.

 

“Consolidated
Total Assets” means, at any date, the aggregate of:

    	5

    	

    

		(a)	the then current Market Values of all Group Vessels (in the case of a Vessel and any Group Vessel,
the Market Value shall be conclusively determined by reference only to the most recent valuation(s) of such Vessel and such Group
Vessel (as the case may be));

 

		(b)	the then current aggregate amount of Cash, Marketable Securities (but excluding Marketable Securities
accounted for in the definition of Consolidated Total Liabilities below) and receivables due to the Group (less provision for bad
and doubtful debts) as shown in the latest financial statements of the Borrower; and

 

		(c)	the book values of all other assets (other than the assets referred to in sub-paragraphs (a) and
(b) hereof) excluding amounts classified as “Accrued revenue resulting from varying charter rates” as shown in the
latest financial statements of the Borrower.

 

“Consolidated
Total Liabilities” means, at the relevant date and for a particular period, the aggregate of the consolidated
Financial Indebtedness of the Group shown in the latest consolidated financial statements for the Group (excluding (i) amounts
classified as “Deferred revenue resulting from varying charter rates” as shown in the latest relevant financial statements
and (ii) liabilities to its shareholders, provided that they are subordinated on terms acceptable to the Agent in its discretion).

 

“Credit
Support Document” means any document described as such in the Master Agreement and any other document referred to in
any such document which has the effect of creating security in favour of any of the Finance Parties.

 

“Credit
Support Provider” means any person (other than the Borrower) described as such in the Master Agreement.

 

“Current
Shareholders” has the meaning given in the Side Letter.

 

“CTA”
means the Corporation Tax Act 2009.

 

“Debt”
means the aggregate (as of the date of calculation) of all obligations of the Group then outstanding for the payment or repayment
of Financial Indebtedness as stated in the Accounting Information then most recently required to be delivered pursuant to Clause
19.1 (Financial statements) including, without limitation:

 

		(a)	any amounts payable by the Group under leases, including, but not limited to, time chartering contracts,
or similar arrangements over their respective periods;

 

		(b)	any credit to the Group from a supplier of goods or under any instalment purchase or other similar
arrangement;

 

		(c)	the aggregate amount then outstanding of liabilities and obligations of third parties to the extent
that they are guaranteed by the Group;

 

		(d)	any contingent liabilities (including any taxes or other payments under dispute or arbitration)
which have been or, under GAAP, should be recorded in the notes to the Group’s financial statements; and

 

		(e)	any deferred tax liabilities.

    	6

    	

    

“Deed
of Covenants” means the deed of covenants referred to in Clause 17.1(a) (Security
Documents).

 

“Deed
of Amendment, Restatement, Release and Confirmation” means the deed of amendment, restatement, release and confirmation
dated 3 October 2018 and made between (i) the Borrower, (ii) the Collateral Owners, (iii) the Original Lender, (iv) the Mandated
Lead Arranger, (v) the Agent, (vi) the Swap Provider and (vii) the Security Agent setting out the terms and conditions upon which
this Agreement and certain other Finance Documents have been amended, restated and/or supplemented.

 

“Default”
means an Event of Default or any event or circumstance which would (with the expiry of a grace period, the giving of notice, the
making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.

 

“Defaulting
Lender” means any Lender:

 

		(a)	which has failed to make its participation in a Drawing available (or has notified the Agent or
the Borrower (which has notified the Agent) that it will not make its participation in a Drawing available) by the relevant Drawdown
Date in accordance with Clause 5.3 (Lenders’ participation);

 

		(b)	which has otherwise rescinded or repudiated a Finance Document; or

 

		(c)	with respect to which an Insolvency Event has occurred and is continuing,

 

unless, in the case of (a):

 

		(i)	its failure to pay is caused by:

 

		(A)	administrative or technical error; or

 

		(B)	a Disruption Event; and

 

payment is made within three
Business Days of its due date; or

 

		(ii)	the Lender is disputing in good faith whether it is contractually obliged to make the payment in
question.

 

“Delegate”
means any delegate, agent, attorney or co-trustee appointed by the Security Agent.

 

“Disruption
Event” means either or both of:

 

		(a)	a material disruption to those payment or communications systems or to those financial markets
which are, in each case, required to operate in order for payments to be made in connection with the Loan (or otherwise in order
for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond
the control of, any of the Parties; or

 

		(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related
nature) to the treasury or payments operations of a Party preventing that, or any other Party:

    	7

    	

    

		(i)	from performing its payment obligations under the Finance Documents; or

 

		(ii)	from communicating with other Parties in accordance with the terms of the Finance Documents,

 

and which (in either such case)
is not caused by, and is beyond the control of, the Party whose operations are disrupted.

 

“DOC”
means, in relation to the ISM Company, a valid Document of Compliance issued for the ISM Company by the Administration under paragraph
13.2 of the ISM Code.

 

“Drawdown
Date” means the date on which a Drawing is advanced under Clause 5 (Advance).

 

“Drawdown
Request” means a notice substantially in the form set out in Schedule 3 (Drawdown
Request).

 

“Drawing”
means any one amount advanced or to be advanced pursuant to a Drawdown Request or, where the context permits, the amount advanced
and for the time being outstanding and “Drawings” means more than one of them.

 

“EBITDA”
means, as of the last day of each semi-annual period ending on 30 June or 31 December, the consolidated net pre-taxation profits
of the Group ending on such day, as stated in the then most recent and relevant Accounting Information, as such profits are adjusted
by:

 

		(a)	adding back Interest Expense;

 

		(b)	taking no account of any exceptional or extraordinary item;

 

		(c)	adding back depreciation and amortisation;

 

		(d)	deducting any non-cash income and non-cash gains; and

 

		(e)	taking no account of any revaluation of an asset or any loss or gain over book value arising on
the disposal of an asset (otherwise than in the ordinary course of trading) by a member of the Group.

 

“Earnings”
means (i) all hires, freights, pool income and other sums payable to or for the account of a Collateral Owner in respect of a Vessel
including (without limitation) all remuneration for salvage and towage services, demurrage and detention moneys, contributions
in general average, compensation in respect of any requisition for hire, and damages and other payments (whether awarded by any
court or arbitral tribunal or by agreement or otherwise) for breach, termination or variation of any contract for the operation,
employment or use of a Vessel.

 

“Earnings
Accounts” means:

 

		(a)	a bank account opened in the name of Eniadefhi with the Account Holder and designated “Eniadefhi
Shipping Corporation - Earnings Account” with account number 63646001;

    	8

    	

    

		(b)	a bank account opened in the name of Eniaprohi with the Account Holder and designated “Eniaprohi
Shipping Corporation - Earnings Account” with account number 63647001;

 

		(c)	a bank account opened in the name of Maxdodeka with the Account Holder and designated “Maxdodeka
Shipping Corporation - Earnings Account” with account number 63940001;

 

		(d)	a bank account opened in the name of Pelea with the Account Holder and designated “Pelea
Shipping Ltd. - Earnings Account” with account number 63397003;

 

		(e)	a bank account opened or to be opened in the name of Vasstwo with the Account Holder and designated
“Vasstwo Shipping Corporation - Earnings Account” with account number 65179001;

 

		(f)	a bank account opened or to be opened in the name of Gloverfour with the Account Holder and designated
“Gloverfour Shipping Corporation - Earnings Account” with account number 65422001;

 

		(g)	a bank account opened or to be opened in the name of Gloverfive with the Account Holder and designated
“Gloverfive Shipping Corporation - Earnings Account” with account number 65423001;

 

		(h)	a bank account opened or to be opened in the name of Vassone with the Account Holder and designated
“Vassone Shipping Corporation - Earnings Account” with account number 65422001;

 

		(i)	a bank account opened or to be opened in the name of Shikokuexi with the Account Holder and designated
“Shikokuexi Shipping Inc. - Earnings Account” with account number 65846001; and

 

		(j)	a bank account opened in the name of Youngone with the Account Holder and designated “Youngone
Shipping Corporation - Earnings Account” with account number 66491001,

 

and “Earnings Account”,
means any one of them.

 

“EEA
Member Country” means any member state of the European Union, Iceland, Liechtenstein and Norway.

 

“Effective
Date” means the date on which the Agent confirms in writing to the Borrower that the conditions precedent listed in clause
3.2 of the Deed of Amendment, Restatement, Release and Confirmation are satisfied.

 

“Encumbrance”
means a mortgage, charge, assignment, pledge, lien or other security interest securing any obligation of any person or any other
agreement or arrangement having a similar effect.

 

“Environmental
Approval” means any present or future permit, ruling, variance or other Authorisation required under Environmental Laws.

 

“Environmental
Claim” means any claim, proceeding, formal notice or investigation by any governmental, judicial or regulatory authority
or any other person which arises out of an

    	9

    	

    

Environmental
Incident or an alleged Environmental Incident or which relates to any Environmental Law and, for this purpose, “claim”
includes a claim for damages, compensation, contribution, injury, fines, losses and penalties or any other payment of any kind,
including in relation to clean-up and removal, whether or not similar to the foregoing; an order or direction to take, or not to
take, certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the
arrest or attachment of any asset.

 

“Environmental
Incident” means:

 

		(a)	any release, emission, spill or discharge into a Vessel or into or upon the air, sea, land or soils
(including the seabed) or surface water of Environmentally Sensitive Material within or from a Vessel; or

 

		(b)	any incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged
into or upon the air, sea, land or soils (including the seabed) or surface water from a vessel other than a Vessel and which involves
a collision between a Vessel and such other vessel or some other incident of navigation or operation, in either case, in connection
with which a Vessel is actually or potentially liable to be arrested, attached, detained or injuncted and/or a Vessel and/or any
Security Party and/or any operator or manager of a Vessel is at fault or allegedly at fault or otherwise liable to any legal or
administrative action; or

 

		(c)	any other incident in which Environmentally Sensitive Material is released, emitted, spilled or
discharged into or upon the air, sea, land or soils (including the seabed) or surface water otherwise than from a Vessel and in
connection with which a Vessel is actually or potentially liable to be arrested and/or where any Security Party and/or any operator
or manager of a Vessel is at fault or allegedly at fault or otherwise liable to any legal or administrative action, other than
in accordance with an Environmental Approval.

 

“Environmental
Law” means any present or future law or regulation relating to pollution or protection of human health or the environment,
to conditions in the workplace, to the carriage, generation, handling, storage, use, release or spillage of Environmentally Sensitive
Material or to actual or threatened releases of Environmentally Sensitive Material.

 

“Environmentally
Sensitive Material” means and includes all contaminants, oil, oil products, toxic substances and any other substance
(including any chemical, gas or other hazardous or noxious substance) which is (or is capable of being or becoming) polluting,
toxic or hazardous.

 

“EU
Bail-In Legislation Schedule” means the document described as such and published by the LMA from time to time.

 

“Event
of Default” means any event or circumstance specified as such in Clause 22 (Events of Default).

 

“Existing
Charter” means, in respect of:

 

		(a)	m.v. “KANARIS”, a capesize bulk carrier vessel registered in the ownership of Maxpente
Shipping Corporation (the “Kanaris Owner”) under the laws and flag of the Marshall Islands, a time charter dated
7 February 2008 as amended and/or supplemented from time to time and made between the Kanaris Owner as owner and Energy Eastern
Pte. Ltd. as charterer for a daily charter hire of $25,928 with a termination date not earlier than June 2031;

    	10

    	

    

		(b)	m.v. “PELOPIDAS”, a capesize bulk carrier vessel registered in the ownership of Eptaprohi
Shipping Corporation (the “Pelopidas Owner”) under the laws and flag of the Marshall Islands, a time charter
dated 25 June 2008 as amended and/or supplemented from time to time and made between the Pelopidas Owner as owner and Global Chartering
Limited as charterer for a daily charter hire of $38,000 with a termination date not earlier than December 2021; and

 

		(c)	m.v. “LAKE DESPINA”, a capesize bulk carrier vessel registered in the ownership of
Maxtessera Shipping Corporation (the “Lake Despina Owner”) under the laws and flag of Cyprus, a time charter
dated 23 November 2010 as amended and/or supplemented from time to time and made between the Lake Despina Owner as owner and Louis
Dreyfus as charterer for a daily charter hire of $24,810 with a termination date not earlier than January 2024,

 

and, in the plural,
means all of them.

 

“Existing
Charter Performance Guarantee” means, in respect of each Existing Charter, the guarantee of the obligations of the charterer
who is a party thereto granted by the parent company of such charterer in favour of the relevant owner.

 

“Facility
Office” means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender
(or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it
will perform its obligations under this Agreement.

 

“Facility
Period” means the period beginning on the date of this Agreement and ending on the date when the whole of the Indebtedness
has been paid in full and the Security Parties have ceased to be under any further actual or contingent liability to the Finance
Parties under or in connection with the Finance Documents.

 

“FATCA”
means:

 

		(a)	sections 1471 to 1474 of the Code or any associated regulations;

 

		(b)	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement
between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred
to in (a); or

 

		(c)	any agreement pursuant to the implementation of any treaty, law or regulation referred to in (a)
or (b) with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

 

“FATCA
Application Date” means:

 

		(a)	in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code
(which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

 

		(b)	in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the
Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from sources
within the US), 1 January 2019; or

    	11

    	

    

		(c)	in relation to a “passthru payment” described in section 1471(d)(7) of the Code not
falling within (a) or (b), 1 January 2019,

 

or, in each case, such other
date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA
after the date of this Agreement.

 

“FATCA
Deduction” means a deduction or withholding from a payment under a Finance Document required by FATCA.

 

“FATCA
Exempt Party” means a Party that is entitled to receive payments free from any FATCA Deduction.

 

“Fee
Letter” means any letter or letters between the Arranger and the Borrower (or the Agent and the Borrower or the Security
Agent and the Borrower) setting out any of the fees referred to in Clause 11 (Fees).

 

“Finance
Documents” means this Agreement, the Deed of Amendment, Restatement, Release and Confirmation, the Master Agreement,
the Security Documents, any Fee Letter and any other document designated as such by the Agent and the Borrower together and “Finance
Document” means any one of them.

 

“Finance
Parties” means the Arranger, the Agent, the Security Agent, the Swap Provider and the Lenders and “Finance Party”
means any one of them.

 

“Financial
Indebtedness” means any indebtedness for or in respect of:

 

		(a)	moneys borrowed and debit balances at banks or other financial institutions;

 

		(b)	any acceptance under any acceptance credit or bill discounting facility (or dematerialised equivalent);

 

		(c)	any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar
instrument;

 

		(d)	the amount of any liability in respect of any finance or capital lease;

 

		(e)	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse
basis);

 

		(f)	any actual amount which is due as a result of the termination or close-out of any Treasury Transaction;

 

		(g)	any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter
of credit or any other instrument issued by a bank or financial institution in respect of (i) an underlying liability of an entity
which is not a Security Party or a member of the Group which liability would fall within one of the other sections of this definition
or (ii) any liabilities of any Security Party or any other member of the Group relating to any post-retirement benefit scheme;

 

		(h)	any amount classified as borrowings under GAAP;

    	12

    	

    

		(i)	any amount of any liability under an advance or deferred purchase agreement if (i) one of the primary
reasons behind entering into the agreement is to raise finance or to finance the acquisition or construction of the asset or service
in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 120 days after
the date of supply;

 

		(j)	any amount raised under any other transaction (including any forward sale or purchase, sale and
sale back or sale and leaseback agreement) having the commercial effect of a borrowing or otherwise classified as borrowings under
GAAP; and

 

		(k)	the amount of any liability in respect of any guarantee or indemnity for any of the items referred
to in (a) to (j).

 

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

 

“Group”
means the Borrower and its Subsidiaries for the time being, including without limitation the Collateral Owners.

 

“Group
Lender” means each lender that is party to a Group Loan Agreement, and in the plural means all of them.

 

“Group
Loan Agreement” means each loan agreement entered into between a Group Lender and the Borrower and/ or any Subsidiaries
of the Borrower, and in the plural means all of them.

 

“Group
Obligor” means each of the Borrower and any other direct or indirect Subsidiaries of the Borrower who have given security
to any Group Lender in respect of any financial indebtedness of the Borrower or any of its subsidiaries;

 

“Group
Vessel” means any vessel owned by, leased by under a financial lease or constructed for (in the case of a newbuilding
under construction) the account of any member of the Group.

 

“Guarantee”
means the guarantee and indemnity of each Guarantor referred to in Clause 17.1(c) (Security Documents).

 

“Guarantor”
means each Collateral Owner and/or (where the context permits) any other person who shall at any time during the Facility Period
give to the Lenders or to the Security Agent on their behalf a guarantee and/or indemnity for the payment of all or part of the
Indebtedness.

 

“Hadjioannou
Family” means the members outlined in paragraphs (b) and (c) of the definition of the “Current Shareholders”.

 

“Holding
Company” means, in relation to a person, any other person in respect of which it is a Subsidiary.

 

“IAPPC”
means a valid international air pollution prevention certificate for a Vessel issued under Annex VI.

 

“Impaired
Agent” means the Agent at any time when:

 

		(a)	it has failed to make (or has notified a Party that it will not make) a payment required to be
made by it under the Finance Documents by the due date for payment;

    	13

    	

    

		(b)	the Agent otherwise rescinds or repudiates a Finance Document;

 

		(c)	(if the Agent is also a Lender) it is a Defaulting Lender under (a) or (b) of the definition of
“Defaulting Lender”; or

 

		(d)	an Insolvency Event has occurred and is continuing with respect to the Agent;

 

unless, in the case of (a):

 

		(i)	its failure to pay is caused by:

 

		(A)	administrative or technical error; or

 

		(B)	a Disruption Event; and

 

payment is made within three
Business Days of its due date; or

 

		(ii)	the Agent is disputing in good faith whether it is contractually obliged to make the payment in
question.

 

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

 

“Insolvency
Event” in relation to an entity means that the entity:

 

		(a)	is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

		(b)	becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally
to pay its debts as they become due;

 

		(c)	makes a general assignment, arrangement or composition with or for the benefit of its creditors;

 

		(d)	institutes or has instituted against it, by a regulator, supervisor or any similar official with
primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation
or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief
under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation by it or such regulator, supervisor or similar official;

 

		(e)	has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other
relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented
for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such
proceeding or petition is instituted or presented by a person or entity not described in (d) and:

 

		(i)	results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making
of an order for its winding-up or liquidation; or

    	14

    	

    

		(ii)	is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution
or presentation thereof;

 

		(f)	has exercised in respect of it one or more of the stabilisation powers pursuant to Part 1 of the
Banking Act 2009 and/or has instituted against it a bank insolvency proceeding pursuant to Part 2 of the Banking Act 2009 or a
bank administration proceeding pursuant to Part 3 of the Banking Act 2009;

 

		(g)	has a resolution passed for its winding-up, official management or liquidation (other than pursuant
to a consolidation, amalgamation or merger);

 

		(h)	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than, for so long
as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a
person or entity described in (d));

 

		(i)	has a secured party take possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and
such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within
30 days thereafter;

 

		(j)	causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction,
has an analogous effect to any of the events specified in (a) to (i); or

 

takes any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any of the events specified in (a) to (j).

 

“Insurances”
means all policies and contracts of insurance (including all entries in protection and indemnity or war risks associations) which
are from time to time taken out or entered into in respect of or in connection with a Vessel or her increased value or the Earnings
and (where the context permits) all benefits under such contracts and policies, including all claims of any nature and returns
of premium.

 

“Interest
Expense” means all paid or payable interest, charges and expenses in the nature of interest (whether paid, payable or
capitalised) incurred by the Group and as stated in the financial statements then most recently required to be delivered pursuant
to Clause 19.1 (Financial statements).

 

“Interest
Payment Date” means each date for the payment of interest in accordance with Clause 8.2
(Payment of interest).

 

“Interest
Period” means each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid
Sum, each period determined in accordance with Clause 8.3 (Default interest).

 

“ISM
Code” means the International Management Code for the Safe Operation of Ships and for Pollution Prevention.

 

“ISM
Company” means, at any given time, the company responsible for each Vessel’s compliance with the ISM Code under
paragraph 1.1.2 of the ISM Code.

    	15

    	

    

“ISPS
Code” means the International Ship and Port Facility Security Code.

 

“ISSC”
means a valid international ship security certificate for each Vessel issued under the ISPS Code.

 

“ITA”
means the Income Tax Act 2007.

 

“Joint
Venture” means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture
or partnership or any other entity.

 

“Legal
Opinion” means any legal opinion delivered to the Agent under Clause 4.1 (Initial conditions precedent) or Clause
4.3 (Conditions subsequent).

 

“Legal
Reservations” means:

 

		(a)	the principle that equitable remedies may be granted or refused at the discretion of a court and
the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors;

 

		(b)	the time barring of claims under the Limitation Acts, the possibility that an undertaking to assume
liability for or indemnify a person against non-payment of UK stamp duty may be void and defences of set-off or counterclaim;

 

		(c)	similar principles, rights and defences under the laws of any Relevant Jurisdiction; and

 

		(d)	any qualifications contained in any Legal Opinion.

 

“Lender”
means:

 

		(a)	any Original Lender; and

 

		(b)	any bank, financial institution, trust, fund or other entity which has become a Party as a Lender
in accordance with Clause 23 (Changes to the Lenders),

 

which in each case has not ceased
to be a Lender in accordance with the terms of this Agreement.

 

“LIBOR”
means:

 

		(a)	the applicable Screen Rate; or

 

		(b)	(if (i) no Screen Rate is available for the currency of the Loan or (ii) no Screen Rate is available
for the relevant Interest Period) the Reference Bank Rate,

 

as of 11.00 a.m. on the Quotation
Day for dollars and for a period equal in length to the relevant Interest Period and, if that rate is less than zero, LIBOR shall
be deemed to be zero.

 

“LMA”
means the Loan Market Association or any successor organisation.

 

“Loan”
means the loan made available under the Term Loan Facility or the aggregate principal amount outstanding for the time being of
the borrowings under the Term Loan Facility and a “part of the Loan” means a Tranche, a part of a Tranche or
any other part of the Loan as the context may require.

    	16

    	

    

“Majority
Lenders” means a Lender or Lenders whose Commitments aggregate more than 66 2/3% of the Total Commitments (or, if the
Total Commitments have been reduced to zero, aggregated more than 66 2/3% of the Total Commitments immediately prior to the reduction).

 

“Management
Agreements” means, the agreements for the commercial and/or technical management of the Vessels between the Collateral
Owners and the Managers and “Management Agreement” means any one of them.

 

“Managers”
means either (i) Safety Management Overseas S.A. (“SMO”), of the Republic of Panama, whose registered office
is at Edificio Torre Universal, Piso 12, Avenida Federico Boyd, P.O. Box 8807, Panama, Republic of Panama or (ii) Safe Bulkers
Management Limited (“SBM”), of the Republic of Cyprus, whose registered office is at Panteli Katelari 16, Diagoras
House, 7th Floor, 1097 Nicosia, Cyprus or (iii) such other commercial and/or technical managers of the Vessels nominated
by a Collateral Owner respectively as the Agent may approve (such approval not to be unreasonably withheld or delayed).

 

“Managers’
Undertakings” means the written undertakings of the Managers whereby, throughout the Facility Period unless otherwise
agreed by the Agent:

 

		(a)	they will remain the commercial or technical managers of each Vessel (as the case may be);

 

		(b)	they will not, without the prior written consent of the Agent, such consent not to be unreasonably
withheld or delayed, subcontract or delegate the commercial or technical management of each Vessel (as the case may be) to any
third party;

 

		(c)	the interests of the Managers in the Insurances will be assigned to the Security Agent with first
priority; and

 

		(d)	(following the occurrence of an Event of Default) all claims of the Managers against the relevant
Collateral Owner shall be subordinated to the claims of the Finance Parties under the Finance Documents.

 

“Margin”
means in relation to:

 

		(a)	Tranche A:

 

		(i)	2.15 per cent. (2.15%) per annum, for the period commencing on the Effective Date and ending on
30 March 2019;

 

		(ii)	2.40 per cent. (2.40%) per annum, for the period commencing on 31 March 2019 and ending on 30 March
2020; and

 

		(iii)	2.65 per cent. (2.65%) per annum, for the period commencing on 31 March 2020 and throughout the
remainder of the Facility Period; and

 

		(b)	Tranche B:

 

		(i)	2.10 per cent. (2.10%) per annum, for the period commencing on the Effective Date and ending on
30 March 2022; and

 

		(ii)	2.30 per cent. (2.30%) per annum, for the period commencing on 31 March 2022 and throughout the
remainder of the Facility Period.

    	17

    	

    

“Market
Value” means the value of a Vessel or any other Group Vessel conclusively determined in accordance with clause 17.11
(Market Value Determination).

 

“Marketable
Securities” means any bonds, stocks, notes or bills payable in a freely convertible and transferable currency
and which are listed on a stock exchange acceptable to the Agent.

 

“Master
Agreement” means the Novated Master Agreement and any ISDA Master Agreement (or any other form of master agreement relating
to interest or currency exchange transactions) entered into between the Swap Provider and the Borrower during the Facility Period,
including each Schedule to any Master Agreement and each Confirmation exchanged under any Master Agreement.

 

“Master
Agreement Benefits” means all benefits whatsoever of the Borrower under or in connection with the Master Agreement including,
without limitation, all moneys payable to the Borrower under the Master Agreement and all claims for damages in respect of any
breach by the Swap Provider of the Master Agreement.

 

“Master
Agreement Charge” means the deed of charge referred to in Clause 17.1(d) (Security Documents).

 

“Material
Adverse Effect” means in the reasonable opinion of the Majority Lenders a material adverse effect on:

 

		(a)	the business and the financial condition of the Group taken as a whole; or

 

		(b)	the ability of any Security Party to perform its obligations under any Finance Document; or

 

		(c)	the validity or enforceability of, or the effectiveness or ranking of any Encumbrance granted or
purporting to be granted pursuant to any of, the Finance Documents or the rights or remedies of any Finance Party under any of
the Finance Documents.

 

“Mortgage”
means the first preferred or priority statutory mortgage referred to in Clause 17.1(a) (Security Documents), together with
the Deed of Covenants, if applicable.

 

“Mortgagees’
Insurances” means all policies and contracts of mortgagees’ interest insurance, mortgagees’ additional perils
(oil pollution) insurance and, in the event that an Event of Default has occurred, any other insurance from time to time taken
out by the Security Agent in relation to a Vessel.

 

“MVC”
means, in respect of each Group Loan Agreement, the minimum security cover ratio required to be maintained under the terms of that
Group Loan Agreement pursuant to provisions equivalent to the terms of Clause 17.10.

 

“Net
Worth” means Consolidated Total Assets less Consolidated Total Liabilities.

 

“New
Lender” has the meaning given to that term in Clause 23.1 (Assignments and transfers by the Lenders).

 

“Novated
Master Agreement” means the master agreement (on the ISDA 1992 form) and schedule thereto both dated 27 December 2012
made between each of Eniadefhi, Maxdodeka, Eniaprohi, Pelea, Avstes Shipping Corporation (“Avstes”) and Marindou
Shipping Corporation (“Marindou)” (as joint and several co-obligors) and the Swap Provider (as swap provider),
as

    	18

    	

    

amended, supplemented
and novated pursuant to a novation agreement dated 4 November 2014 and made between Eniadefhi, Maxdodeka, Eniaprohi, Pelea, Avstes
and Marindou (as transferor), the Borrower (as transferee) and the Swap Provider (as remaining party), pursuant to which each of
Avstes , Eniadefhi, Maxdodeka, Eniaprohi, Pelea and Marindou novated their rights and obligations thereunder to the Borrower on
the terms and subject to the conditions contained therein.

 

“Original
Financial Statements” means the audited consolidated financial statements of the Borrower for the financial year ended
31 December 2013.

 

“Original
Jurisdiction” means, in relation to a Security Party, the jurisdiction under whose laws that Security Party is incorporated
as at the date of this Agreement.

 

“Party”
means a party to this Agreement.

 

“Permitted
Disposal” means any sale, lease, licence, transfer or other disposal which, except in the case of (b), is on arm’s
length terms:

 

		(a)	of trading stock or cash made by any Security Party;

 

		(b)	of any asset by any Security Party (the “Disposing Company”) to any other Security
Party (the “Acquiring Company”), but if:

 

		(i)	the Disposing Company had given any Encumbrance over the asset, the Acquiring Company must give
an equivalent Encumbrance over that asset; and

 

		(ii)	the Disposing Company is a Guarantor, the Acquiring Company must guarantee at all times an amount
no less than that guaranteed by the Disposing Company;

 

		(c)	of assets in exchange for other assets comparable or superior as to type, value and quality;

 

		(d)	of obsolete or redundant vehicles, plant and equipment for cash or asset s in accordance with (c);

 

		(e)	arising as a result of any Permitted Encumbrance; and

 

		(f)	of assets (other than shares) for cash where the higher of the market value and net consideration
receivable (when aggregated with the higher of the market value and net consideration receivable for any other sale, lease, licence,
transfer or other disposal not allowed under (a) to (f) or as a Permitted Transaction) does not exceed $3,000,000 (or its equivalent)
in total during the term of this Agreement and does not exceed $500,000 (or its equivalent) in any financial year of the Borrower.

 

“Permitted
Encumbrance” means:

 

		(a)	any Encumbrance which has the prior written approval of the Agent;

 

		(b)	any Encumbrance arising by operation of law and in the ordinary course of trading and not as a
result of any default or omission by a Security Party;

 

		(c)	any Quasi-Security arising as a result of a disposal which is a Permitted Disposal; or

    	19

    	

    

		(d)	any liens for current crews’ wages and salvage and liens incurred in the ordinary course
of trading the Vessel up to an aggregate amount at any time no more than 30 days overdue.

 

“Permitted
Transaction” means:

 

		(a)	any disposal required, Financial Indebtedness incurred, guarantee, indemnity or Encumbrance or
Quasi-Security given, or other transaction arising, under the Finance Documents; or

 

		(b)	transactions (other than (i) any sale, lease, license, transfer or other disposal and (ii) the
granting or creation of any Encumbrance or the incurring or permitting to subsist of Financial Indebtedness) conducted in the ordinary
course of trading on arm’s length terms.

 

“Quasi-Security”
has the meaning given to that term in Clause 21.9 (Negative pledge).

 

“Quotation
Day” means, in relation to any period for which an interest rate is to be determined two Business Days before the first
day of that period, unless market practice differs in the Relevant Interbank Market, in which case the Quotation Day will be determined
by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by
leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

 

“Receiver”
means a receiver or receiver and manager or administrative receiver of the whole or any part of the Charged Property.

 

“Reference
Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at
its request by the Reference Banks, in relation to LIBOR, as the rate at which the relevant Reference Bank could borrow funds in
the London interbank market and in dollars and for the relevant period, were it to do so by asking for and then accepting interbank
offers for deposits in reasonable market size in dollars and for that period.

 

“Reference
Banks” means, in relation to LIBOR, the principal London office of DNB Bank ASA or such other bank or banks as may be
appointed by the Agent in prior consultation and agreement with the Borrower.

 

“Refinancing
Market Value” has the meaning given to it in clause 1.2 of the Deed of Amendment, Restatement, Release and Confirmation.

 

“Related
Fund” in relation to a fund (the “first fund”), means a fund which is managed or advised by the same
investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment
adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser
of the first fund.

 

“Relevant
Documents” means the Finance Documents and the Management Agreements.

 

“Relevant
Interbank Market” means the London interbank market.

 

“Relevant
Jurisdiction” means, in relation to a Security Party:

    	20

    	

    

		(a)	its Original Jurisdiction;

 

		(b)	any jurisdiction where any asset subject to or intended to be subject to a Security Document to
be executed by it is situated;

 

		(c)	any jurisdiction where it conducts its business; and

 

the jurisdiction whose laws
govern the perfection of any of the Security Documents entered into by it.

 

“Relevant
Percentage” means, in respect of each Group Loan Agreement, a fraction (expressed as a percentage) where (a) the numerator
is the market value of any additional security or the amount of the prepayment provided to a Group Lender and (b) the denominator
is the principal amount of the loan outstanding under that Group Loan Agreement immediately prior to the application of any prepayment
or provision of additional security under paragraph (a).

 

“Repayment
Date” means the date for payment of any Repayment Instalment in accordance with Clause 6 (Repayment).

 

“Repayment
Instalment” means any instalment of the Term Loan Facility to be repaid by the Borrower under Clause 6 (Repayment).

 

“Repeating
Representations” means each of the representations set out in Clause 18.1 (Representations) (other than Clauses
18.1(g), 18.1(i), 18.1(j), 18.1(l), 18.1(l)(v), 18.1(n),
18.1(o), 18.1(p), 18.1(q)).

 

“Replacement
Collateral Owner” means a company within the direct or indirect ownership and control of the Borrower which shall be
acceptable to the Agent subject to receipt by the Agent beforehand of a satisfactory legal opinion provided by the Agent’s
legal counsel in the country of incorporation of that Replacement Collateral Owner confirming its due incorporation, capacity and
its continuing existence.

 

“Representative”
means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

 

“Requisition
Compensation” means all compensation or other money which may from time to time be payable to a Collateral Owner as a
result of a Vessel being requisitioned for title or in any other way compulsorily acquired (other than by way of requisition for
hire).

 

“Restricted
Cash Account” means a bank account opened in the name of Borrower with the Account Holder and designated “Safe
Bulkers, Inc. - Restricted Cash Account” with account number 63666022.

 

“Restricted
Party” means a person:

 

		(a)	that is listed on any Sanctions List (whether designated by name or by reason of being included
in a class of person);

 

		(b)	that is domiciled, registered as located or having its main place of business in, or is incorporated
under the laws of, a country which is subject to Sanctions Laws; or

 

		(c)	that is directly or indirectly owned or controlled by a person referred to in (a) and/or (b) above;
or

    	21

    	

    

		(d)	with which any Lender is prohibited from dealing or otherwise engaging in a transaction with by
any Sanctions Laws.

 

“Resolution
Authority” means any body which has authority to exercise any Write-down and Conversion Powers.

 

“Sanctions
Authority” means the Norwegian State, the United Nations, the European Union, the member states of the European Union,
the United States of America, the Monetary Authority of Singapore and the Hong Kong Monetary Authority and any authority acting
on behalf of any of them in connection with Sanctions Laws.

 

“Sanctions
Laws” means the economic or financial sanctions laws and/or regulations, trade embargoes, prohibitions, restrictive measures,
decisions, Executive Orders or notices from regulators implemented, adapted, imposed, administered, enacted and/or enforced by
any Sanctions Authority.

 

“Sanctions
List” means any list of persons or entities published in connection with Sanctions Laws by or on behalf of any Sanctions
Authority.

 

“Screen
Rate” means, in relation to LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited
(or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages
LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate) or on the appropriate page
of such other information service which publishes that rate from time to time in place of Reuters. If such page or the service
ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with the
Borrower.

 

“Secured
Parties” means each Finance Party from time to time party to this Agreement and any Receiver or Delegate.

 

“Security
Documents” means the Mortgage, the Assignments, each Guarantee, the Account Security Deed, the Managers’ Undertakings,
the Master Agreement Charge and any other Credit Support Documents or (where the context permits) any one or more of them, and
any other agreement or document which may at any time be executed by any person as security for the payment of all or any part
of the Indebtedness and “Security Document” means any one of them.

 

“Security
Parties” means the Borrower, the Guarantors, the Managers, any other Credit Support Provider, and any other person who
may at any time during the Facility Period be liable for, or provide security for, all or any part of the Indebtedness, and “Security
Party” means any one of them.

 

“Side
Letter” means the side letter evidencing the Current Shareholders of the Borrower on the Effective Date issued by the
Borrower in favour of the Agent in such form as the Agent may require.

 

“SMC”
means a valid safety management certificate issued for a Vessel by or on behalf of the Administration under paragraph 13.7 of the
ISM Code.

 

“Subsidiary”
means a subsidiary undertaking within the meaning of section 1162 of the Companies Act 2006.

    	22

    	

    

“Tax”
means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable
in connection with any failure to pay or any delay in paying any of the same).

 

“Term
Loan Facility” means, the term loan facility made available under this Agreement as described in Clause 2.1 (Amount).

 

“Termination
Date” means, in relation to:

 

		(a)	Tranche A, 30 September 2022; and

 

		(b)	Tranche B, 30 September 2024.

 

“Total
Commitments” means the aggregate of all the Commitments.

 

“Total
Loss” means:

 

		(a)	an actual, constructive, arranged, agreed or compromised total loss of a Vessel; or

 

		(b)	the requisition for title or compulsory acquisition of a Vessel by any government or other competent
authority (other than by way of requisition for hire); or

 

		(c)	the capture, seizure, arrest, detention, hijacking, piracy, theft, condemnation as prize, confiscation
or forfeiture of a Vessel (not falling within (b)), unless the Vessel in question is released and returned to the possession of
the relevant Collateral Owner within 1 month (but in the case of piracy one hundred and eighty (180) days) after the capture, seizure,
arrest, detention, hijacking, piracy, theft, condemnation as prize, confiscation or forfeiture in question.

 

“Transaction”
means a transaction entered into between the Swap Provider and the Borrower governed by the Master Agreement.

 

“Tranche”
means Tranche A or Tranche B.

 

“Tranche
A” means that part of the Loan made or to be made available to the Borrower in relation to the Tranche A Vessels in a
principal amount equal to the lesser of (a) $47,750,000 and (b) 75 per cent. of the Refinancing Market Value of the Tranche A Vessels.

 

“Tranche
A Balloon Instalment” has the meaning ascribed to it in Clause 6.1 (Repayment of Term Loan Facility).

 

“Tranche
A Vessels” means the following dry bulk carrier vessels with the deadweight tonnage and IMO numbers set out below and
built in the year set out below and everything now or in the future belonging to them on board and ashore, each currently registered
under the laws and flag of the Republic of Cyprus in the ownership of the respective Collateral Owners set out below and “Tranche
A Vessel” means any one of them:

 

	Name of Vessel	Collateral Owner	Dwt	IMO 

number	Year of build
	ELENI	Eniaprohi	87,000	9411525	2008
	PEDHOULAS LEADER	Pelea	82,000	9323065	2007
	XENIA	Vasstwo	92,000	9317834	2006
	PEDHOULAS COMMANDER	Vassone	83,685	9381524	2008

    	23

    	

    

“Tranche
B” means that part of the Loan made or to be made available to the Borrower in relation to the Tranche B Vessels in a
principal amount equal to the lesser of (a) $94,250,000 and (b) 66.2 per cent. of the Refinancing Market Value of the Tranche B
Vessels.

 

“Tranche
B Balloon Instalment” has the meaning ascribed to it in Clause 6.1 (Repayment of Term Loan Facility).

 

“Tranche
B Vessels” means the following dry bulk carrier vessels with the deadweight tonnage and IMO numbers set out below and
built in the year set out below and everything now or in the future belonging to them on board and ashore, each currently registered
under the laws and flag of the Republic of Cyprus in the ownership of the respective Collateral Owners set out below and “Tranche
B Vessel” means any one of them:

 

	Name of Vessel	Collateral Owner	Dwt	IMO 

number	Year of build
	MARTINE	Eniadefhi	87,000	9411537	2009
	ANDREAS K	Maxdodeka	91,800	9438121	2009
	KYPROS BRAVERY	Gloverfour	77,078	9694490	2015
	KYPROS LOYALTY	Gloverfive	77,078	9717424	2015
	TROODOS AIR	Shikokuexi	80,000	9698226	2016
	PEDHOULAS CHERRY	Youngone	82,000	973804	2015

 

“Transfer
Certificate” means a certificate substantially in the form set out in Schedule 4 (Form
of Transfer Certificate) or any other form agreed between the Agent and the Borrower.

 

“Transfer
Date” means, in relation to an assignment or a transfer, the later of:

 

		(a)	the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate;
and

 

		(b)	the date on which the Agent executes the relevant Assignment Agreement or Transfer Certificate.

 

“Treasury
Transactions” means any derivative transaction entered into in connection with protection against or benefit from fluctuation
in any rate or price.

 

“Trust
Property” means:

    	24

    	

    

		(a)	all benefits derived by the Security Agent from Clause 17 (Security Documents and Application
of Moneys); and

 

		(b)	all benefits arising under (including, without limitation, all proceeds of the enforcement of)
each of the Security Documents,

 

with the exception of any benefits
arising solely for the benefit of the Security Agent.

 

“Unpaid
Sum” means any sum due and payable but unpaid by any Security Party under the Finance Documents.

 

“US”
means the United States of America.

 

“US
Tax Obligor” means:

 

		(a)	a Security Party which is resident for tax purposes in the US; or

 

		(b)	a Security Party some or all of whose payments under the Finance Documents are from sources within
the US for US federal income tax purposes.

 

“VAT”
means:

 

		(a)	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system
of value added tax (EC Directive 2006/112); and

 

		(b)	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution
for, or levied in addition to, such tax referred to in (a), or imposed elsewhere.

 

“Vessels”
means, together, the Tranche A Vessels and the Tranche B Vessels and “Vessel” means any one of them.

 

“VTL
Coverage” has the meaning given to it in Clause 17.10 (Additional security).

 

“Write-down
and Conversion Powers” means:

 

		(a)	in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time
to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule; and

 

		(b)	in relation to any other applicable Bail-In Legislation:

 

		(i)	any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person
that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution,
to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability
arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to
provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation
in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those
powers; and

    	25

    	

    

		(ii)	any similar or analogous powers under that Bail-In Legislation.

 

		1.2	Construction

 

Unless a contrary indication
appears, any reference in this Agreement to:

 

		(a)	any “Lender”, the “Borrower”, any “Security Party”
the “Arranger”, the “Agent”, the “Swap Provider”, any “Secured
Party”, the “Security Agent”, any “Finance Party” or any “Party”
shall be construed so as to include its successors in title, permitted assignees and permitted transferees;

 

		(b)	a document in “agreed form” is a document which is previously agreed in writing
by or on behalf of the Borrower and the Agent;

 

		(c)	“assets” includes present and future properties, revenues and rights of every
description;

 

		(d)	a “Finance Document”, a “Security Document”, a “Relevant
Document” or any other document is a reference to that Finance Document, Security Document, Relevant Document or other
document as amended, novated, supplemented, extended or restated from time to time in accordance with its terms;

 

		(e)	a “group of Lenders” includes all the Lenders;

 

		(f)	“indebtedness” includes any obligation (whether incurred as principal or as
surety) for the payment or repayment of money, whether present or future, actual or contingent;

 

		(g)	a “person” includes any individual, firm, company, corporation, government,
state or agency of a state or any association, trust, joint venture, consortium or partnership or other entity (whether or not
having separate legal personality);

 

		(h)	a “regulation” includes any regulation, rule, official directive, request or
guideline (whether or not having the force of law, but which the Finance Party applying the same is required to comply with) of
any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority
or organisation;

 

		(i)	a provision of law is a reference to that provision as amended or re-enacted from time to time;
and

 

		(j)	a time of day (unless otherwise specified) is a reference to London time.

 

		1.3	Headings

 

Section, Clause and Schedule
headings are for ease of reference only.

 

		1.4	Defined terms

 

Unless a contrary indication
appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has
the same meaning in that Finance Document or notice as in this Agreement.

 

		1.5	Default

 

A Default (other than an Event
of Default) is “continuing” if it has not been remedied or waived and an Event of Default is “continuing”
if it has not been remedied or waived.

    	26

    	

    

		1.6	Currency symbols and definitions “$”, “USD” and “dollars”

 

Denote the lawful currency of
the United States of America.

 

		1.7	Third party rights

 

A person who is not a Party
has no right under the Contracts (Rights of Third Parties) Act 1999 (the “Third Parties Act”) to enforce or to enjoy
the benefit of any term of this Agreement.

 

		1.8	Offer letter

 

This Agreement supersedes the
terms and conditions contained in any correspondence relating to the subject matter of this Agreement exchanged between any Finance
Party and the Borrower or their respective representatives before the date of this Agreement.

    	27

    	

    

Section
2

 

The Loan

 

		2	The Loan

 

		2.1	Amount

 

Subject to the terms of this
Agreement, the Lenders agree to continue to make available to the Borrower a secured term loan in an aggregate amount not exceeding
$142,000,000 at any one time.

 

		2.2	Finance Parties’ rights and obligations

 

		(a)	The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance
Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance
Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

 

		(b)	The rights of each Finance Party under or in connection with the Finance Documents are separate
and independent rights and any debt arising under the Finance Documents to a Finance Party from a Security Party shall be a separate
and independent debt.

 

		(c)	A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its
rights under the Finance Documents.

 

		3	Purposes

 

		3.1	Purposes

 

The Borrower has applied or,
as the case may be, shall apply the Loan for the purposes referred to in Preliminary (B).

 

		3.2	Monitoring

 

No Finance Party is bound
to monitor or verify the application of any amount borrowed under this Agreement.

 

		4	Conditions of Utilisation

 

		4.1	Initial conditions precedent

 

		(a)	The Lenders will only be obliged to comply with Clause 5.3 (Lenders’ participation)
in relation to the advance of a Drawing if on or before the relevant Drawdown Date, the Agent has received all of the documents
and other evidence listed in Part I of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent.
The Agent shall notify the Borrower and the Lenders promptly upon being so satisfied.

 

		(b)	Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary
before the Agent gives the notification described in Clause 4.1(a), the Lenders authorise the Agent to give that notification.
The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

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		4.2	Further conditions precedent

 

The Lenders will only be obliged
to advance a Drawing if on the date of the relevant Drawdown Request and on the proposed Drawdown Date:

 

		(a)	no Event of Default is continuing and no notice has been issued pursuant to Clause 22.2 (Acceleration)
in respect thereof; and

 

		(b)	the representations made by the Borrower under Clause 18 (Representations) are true.

 

		4.3	Conditions subsequent

 

The Borrower undertakes to
deliver or to cause to be delivered to the Agent within 7 days after the first Drawdown Date the additional documents and other
evidence listed in Part B of Schedule 2 (Conditions Subsequent).

 

		4.4	No waiver

 

If the Lenders in their sole
discretion agree to advance a Drawing to the Borrower before all of the documents and evidence required by Clause 4.1 (Initial
conditions precedent) have been delivered to or to the order of the Agent, the Borrower undertakes to deliver all outstanding
documents and evidence to or to the order of the Agent no later than 21 days after the relevant Drawdown Date or such other date
specified by the Agent (acting on the instructions of all the Lenders).

 

The advance of a Drawing under
this Clause 4.4 (No waiver) shall not be taken as a waiver of the Lenders’ right to require production of all the
documents and evidence required by Clauses 4.1 (Initial conditions precedent) and 4.3 (Conditions subsequent).

 

		4.5	Form and content

 

All documents and evidence
delivered to the Agent under this Clause shall:

 

		(a)	be in form and substance acceptable to the Agent; and

 

		(b)	if required by the Agent, be certified, notarised, legalised or attested in a manner acceptable
to the Agent.

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Section
3

Utilisation

 

		5	Advance

 

		5.1	Delivery of a Drawdown Request

 

The Borrower may request a
Drawing to be advanced by delivery to the Agent of a duly completed Drawdown Request not more than ten and not fewer than two Business
Days before the proposed Drawdown Date.

 

		5.2	Completion of a Drawdown Request

 

A Drawdown Request is irrevocable
and will not be regarded as having been duly completed unless:

 

		(a)	it is signed by an authorised signatory of the Borrower;

 

		(b)	the proposed Drawdown Date is a Business Day within the Availability Period; and

 

		(c)	the proposed Interest Period complies with Clause 9 (Interest Periods).

 

		5.3	Lenders’ participation

 

		(a)	Subject to Clauses 2 (The Loan), 3 (Purposes) and 4 (Conditions of Utilisation),
each Lender shall make its participation in any Drawing available by the Drawdown Date through its Facility Office.

 

		(b)	The amount of each Lender’s participation in any Drawing will be equal to the proportion
borne by its Commitment to the Total Commitments.

 

		5.4	Cancellation of Commitment

 

The whole or any part of the
Total Commitments shall be cancelled at the end of the Availability Period to the extent that they are unutilised at that time.

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Section
4

Repayment, Prepayment and Cancellation

 

		6	Repayment

 

		6.1	Repayment of Term Loan Facility

 

Save as previously repaid
or prepaid, the Borrower agrees to repay the Loan to the Agent for the account of the Lenders as follows:

 

		(a)	Tranche A shall be repaid by 8 equal consecutive semi-annual instalments each in an amount equal
to $3,820,000, the first instalment falling due on the date falling six calendar months after the earlier of (i) 29 September 2018
and (ii) Effective Date, and each subsequent instalment falling due at consecutive intervals of six calendar months thereafter,
and the final instalment falling due, together with a balloon instalment (the “Tranche A Balloon Instalment”)
in the amount of $17,190,000, on the Termination Date applicable to Tranche A.

 

		(b)	Tranche B shall be repaid by 12 equal consecutive semi-annual instalments each in an amount equal
to $3,873,000, the first instalment falling due on the date falling six calendar months after the earlier of (i) 29 September 2018
and (ii) Effective Date, and each subsequent instalment falling due at consecutive intervals of six calendar months thereafter,
and the final instalment falling due, together with a balloon instalment (the “Tranche B Balloon Instalment”)
in the amount of $47,774,000, on the Termination Date applicable to Tranche B,

 

Provided
that, if the Borrower is required to make a prepayment pursuant to clause 8.1(b) of the Amending and Restating
Agreement, the aggregate amount of the Repayment Instalments and the Balloon Instalment in respect of the Tranche for which the
prepayment was made shall be reduced on a pro rata basis by an amount equal to the prepayment amount.

 

		6.2	Termination Date

 

On each Termination Date,
the Borrower shall additionally pay to the Agent for the account of the Finance Parties all other sums then accrued and owing under
the Finance Documents.

 

		6.3	Reborrowing

 

The Borrower
may not reborrow any part of Term Loan Facility which is repaid or prepaid.

 

		7	Illegality, Prepayment and Cancellation

 

		7.1	Illegality

 

If it becomes unlawful in
any jurisdiction (other than by reason of Sanctions Laws) for a Lender to perform any of its obligations as contemplated by this
Agreement or to fund or maintain its participation in the Loan or it becomes unlawful for any Affiliate of a Lender for that Lender
to do so:

 

		(a)	without limitation to the Agent’s right under Clause 7.1(b) to cancel immediately, that Lender
shall promptly notify the Agent upon becoming aware of that event and shall use its reasonable
endeavours to change its lending office within ten (10) Business Days from the date thereof;

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		(b)	upon the expiry of ten (10) Business Days from the time the Agent is notified by the Lender of
the relevant Illegality and provided the Lender has been unable to change its lending office and/or otherwise to remedy such Illegality,
the Agent shall notify the Borrower in writing that the Commitment of that Lender will be immediately cancelled; and

 

		(c)	the Borrower shall repay that Lender’s participation in the Loan on the last day of its current
Interest Period or, if earlier, the date specified by that Lender in the notice delivered to the Agent and notified by the Agent
to the Borrower (being no earlier than the last day of any applicable grace period permitted by law).

 

		7.2	Voluntary prepayment of Loan

 

		(a)	The Borrower may prepay the whole or any part of the Loan (but, if in part, being an amount that
reduces the Loan by an amount which is an integral multiple of one million dollars ($1,000,000)) subject to giving the Agent not
less than five (5) Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice. Any prepayment
under this Clause 7.2 (Voluntary prepayment of Loan) shall reduce (at the selection of the Borrower), in inverse chronological
order of maturity or in direct chronological order or pro rata, the amount of the Repayment Instalments for the relevant
Tranche for each Repayment Date falling after that repayment or prepayment.

 

		(b)	Following the prepayment by the Borrower under this Clause 7.2 of a Tranche and an additional amount
(if any) equal to the greater of:

 

		(i)	an amount which when applied against the Loan results in the VTL Coverage being at least equal
to 120 per cent; and

 

		(ii)	an amount which when applied against the Loan results in the VTL Coverage being equal to the VTL
Coverage maintained immediately prior to such prepayment,

 

the Collateral
Owners owning the Vessels applicable to the Tranche being fully prepaid, at the cost of and on the request of the Borrower, will
be released from their obligations under the Loan Agreement and the Security Documents to which each is a party, unless an Event
of Default has occurred and is continuing.

 

		7.3	Right of cancellation and prepayment in relation to a single Lender

 

		(a)	If:

 

		(i)	any sum payable to any Lender by the Borrower is required to be increased under Clause 12.2(b)
(Tax gross-up); or

 

		(ii)	any Lender claims indemnification from the Borrower under Clause 12.3 (Tax indemnity) or
Clause 13.1 (Increased costs),

 

the Borrower may, whilst the
circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation
of the Commitment(s) of that Lender (“Cancellation Notice”) and/or its intention to procure the repayment of
that Lender’s participation in the Loan (“Repayment Notice”).

 

		(b)	On receipt of a cancellation notice referred to in Clause 7.3(a) in relation to a Lender, the Commitment(s)
of that Lender shall immediately be reduced to zero.

    	32

    	

    

		(c)	On the last day of the Interest Period in respect of the Loan which ends after the Borrower has
given a repayment notice under Clause 7.3(a) in relation to a Lender (or, if earlier, the date specified by the Borrower in that
repayment notice), the Borrower shall repay that Lender’s participation in the Loan together with all interest and other
amounts accrued under the Finance Documents.

 

		(d)	For the avoidance of doubt, the Borrower has the right to send its Cancellation Notice and its
Repayment Notice in one notice.

 

		7.4	Mandatory prepayment on sale or Total Loss

 

		(a)	If a Vessel is sold by a Collateral Owner (subject to Clause 7.5 (Vessel Substitution Option))
or becomes a Total Loss, the Borrower shall, simultaneously with any such sale (the “Sale Mandatory Prepayment
Date”) or on the earlier of the date falling 150 days after any such Total Loss and the date on which the proceeds of
any such Total Loss are realised (the “Total Loss Prepayment Date”) prepay the Loan in an amount equal to the
higher of:

 

		(i)	an amount which equals the Market Value of that Vessel, divided by the aggregate Market Value of
all Vessels multiplied by the Loan; and

 

		(ii)	an amount which when applied against the Loan results in the VTL Coverage being at least equal
to 120 per cent.,

 

(the “Prepayment
Amount”).

 

		(b)	The Prepayment Amount or, as the case may be, the Deposit (if the same is not released in accordance
with the terms of Clause 7.5(a) (Vessel Substitution Option)) shall be applied proportionately against the Repayment Instalments
(including the Balloon Instalments) of the relevant Tranche.

 

		(c)	Following such prepayment, the Collateral Owner which owns that Vessel, at the cost of and on the
request of the Borrower, will be released from its obligations under the Loan Agreement and the Security Documents to which it
is a party, unless an Event of Default has occurred and is continuing.

 

		7.5	Vessel Substitution Option

 

		(a)	As an alternative to paying the Prepayment Amount if a Vessel is sold by a Collateral Owner, the
Borrower may, on the Sale Mandatory Prepayment Date, transfer to the Restricted Cash Account an amount equal to the Prepayment
Amount (a “Deposit”). The Deposit shall be released to the Borrower on the date on which the Agent is satisfied
that the conditions in Clause 7.5(b) (Vessel Substitution) have been met (so long as this occurs during the Substitution
Period). If the Deposit has not been released by the last day (inclusive) of the Substitution Period, it shall be applied in prepayment
of the Loan in accordance with Clause 7.4 (Mandatory Prepayment on sale or Total Loss).

 

		(b)	If a Vessel is sold by a Collateral Owner (and the Borrower has opted to pay a Deposit in accordance
with Clause 7.5(a)) or becomes a Total Loss (the “Disposed Vessel”), the Borrower may (and, if the Borrower
decides to provide a Replacement Vessel, it shall procure that the Replacement Collateral Owner and each other Security Party shall)
on the date falling no later than 150 days after any such sale or, in the case of a Total Loss, the Total Loss Prepayment Date
(the “Substitution Period”):

    	33

    	

    

		(i)	replace the Disposed Vessel with a Replacement Vessel;

 

		(ii)	promptly do all such acts or execute all such documents (including agreements, assignments, transfers,
mortgages, charges, notices and instructions) as the Security Agent may reasonably specify (and in such form as the Security Agent
may reasonably require in favour of the Security Agent); and

 

		(iii)	provide to the Agent such applicable documents and other evidence listed in Schedule 2 in relation
to that Replacement Collateral Owner, each in form and substance reasonably satisfactory to the Agent; and

 

		(iv)	the Replacement Vessel must be a vessel registered under an Approved Flag in the ownership of a
Replacement Collateral Owner, acceptable to the Agent in its absolute discretion (each, a “Replacement
Vessel”) having a Market Value which, when aggregated with the Market Value of the other Collateral Vessels and
any additional security provided by the Borrower, including without limitation, any part of the Deposit referred to in Clause 7.5(a)
(and taking into account any prepayment made pursuant to Clause 7.5(b)) results in the VTL Coverage being at least equal to the
VTL Coverage maintained immediately prior to the sale or Total Loss of the Disposed Vessel.

 

		7.6	Ownership and control

 

		(a)	If:

 

		(i)	If the Borrower’s shares are quoted on the New York Stock Exchange or Nasdaq National Market
in New York or any other internationally recognised stock exchange acceptable to the Lenders:

 

		(A)	the Current Shareholders:

 

		(1)	hold directly or indirectly less than thirty per cent (30%) of the voting and ownership rights
in the shares of the Borrower; or

 

		(2)	own or Control less shares in the Borrower than any other person or group of persons, acting alone
or in consent, without the prior written concent of the Majority Lenders; and

 

		(B)	Mr. Polys Hadjioannou beneficially holds directly or indirectly less than twenty per cent (20%)
of the voting and ownership rights in the shares of the Borrower; and/or

 

		(ii)	If the Borrower’s shares cease to be quoted on the New York Stock Exchange or Nasdaq National
Market in New York or any other internationally recognised stock exchange acceptable to the Lender:

 

		(A)	Mr. Polys Hadjioannou beneficially holds, directly or indirectly, less than fifty one per cent
(51%) of the voting and ownership rights in the shares of the Borrower; and

 

		(B)	the total share capital of the Borrower is not beneficially held directly or indirectly by:

    	34

    	

    

		(1)	the Current Shareholders; or

 

		(2)	such shareholders as may be approved by the Agent pursuant to the terms of a shareholders’
agreement on terms acceptable to the Agent (at its absolute discretion); and/or

 

		(iii)	any person or group of persons, other than the Current Shareholders, acting alone or in concert
gains Control of the Borrower; and/or

 

		(iv)	Mr. Polys Hadjioannou or any other member of the Hadjioannou Family appointed by the Current Shareholders
ceases to be the chief executive officer (CEO) or Chairman of the Borrower,

 

the Borrower
shall promptly notify the Agent upon becoming aware of that event and if the Majority Lenders so require, the Agent shall, by not
less than 5 days’ notice to the Borrower, cancel the Term Loan Facility and declare the Loan, together with accrued interest,
and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Term Loan Facility will be
cancelled and the Loan and all such outstanding interest and other amounts will become immediately due and payable.

 

		(b)	For the purpose of this Clause:

 

“acting
in concert” means a group of persons who, pursuant to an agreement or understanding (whether formal or informal),
actively co-operate, through the acquisition (directly or indirectly) of shares in the Borrower by any of them, either directly
or indirectly, to obtain or consolidate Control of the Guarantor.

 

“Control”
means, in relation to the Borrower:

 

		(a)	the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

 

		(i)	cast, or control the casting of, more than 50 per cent. of the maximum number of votes that might
be cast at a general meeting of the Borrower; or

 

		(ii)	appoint or remove all, or the majority, of the directors or other equivalent officers of the Borrower;
or

 

		(iii)	give directions with respect to the operating and financial policies of the Borrower; and/or

 

		(b)	the holding beneficially of more than 50 per cent. of the issued share capital of the Borrower
(excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution
of either profits or capital).

 

		7.7	Right of cancellation in relation to a Defaulting Lender

 

If any Lender becomes a Defaulting
Lender, the Borrower may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent 5 Business Days’
notice of cancellation of the Commitment of that Lender. On that notice becoming effective, the Commitment of the Defaulting Lender
shall immediately be reduced to zero. The Agent shall as soon as practicable after receipt of that notice notify all the Lenders.

    	35

    	

    

		7.8	Restrictions

 

Any notice of prepayment or
cancellation given under this Clause 7 (Illegality, Prepayment and Cancellation) shall be irrevocable and, unless a contrary
indication appears in this Agreement, shall specify the date or dates upon which the relevant prepayment or cancellation is to
be made and the amount of that prepayment or cancellation.

 

Any prepayment under this
Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or
penalty.

 

The Borrower shall not repay,
prepay or cancel all or any part of the Loan except at the times and in the manner expressly provided for in this Agreement.

 

No amount of the Total Commitments
cancelled under this Agreement may be subsequently reinstated.

 

If the Agent receives a notice
under this Clause 7 (Illegality, Prepayment and Cancellation) it shall promptly forward a copy of that notice to the Borrower
or the affected Lender, as appropriate.

    	36

    	

    

Section
5

Costs of Utilisation

 

		8	Interest

 

		8.1	Calculation of interest

 

The rate of interest on each
Loan for each Interest Period in respect of that Loan is the percentage rate per annum which is the aggregate of the applicable:

 

		(a)	Margin; and

 

		(b)	LIBOR.

 

		8.2	Payment of interest

 

The Borrower shall pay accrued
interest on each Loan on the last day of each Interest Period (and, if the Interest Period is longer than six months, on the dates
falling at six monthly intervals after the first day of the Interest Period).

 

		8.3	Default interest

 

		(a)	If the Borrower fails to pay any amount payable by it under a Finance Document other than a Master
Agreement on its due date, interest shall accrue on the Unpaid Sum from the due date up to the date of actual payment (both before
and after judgment) at a rate which, subject to paragraph (b) below, is 2 per cent. per annum higher than the rate which would
have been payable if the Unpaid Sum had, during the period of non-payment, constituted part of the Loan in the currency of the
Unpaid Sum for successive Interest Periods, each of a duration selected by the Agent (acting reasonably). Any interest accruing
under this Clause 8.3 (Default interest) shall be immediately payable by the Borrower on demand by the Agent.

 

		(b)	Without prejudice to the rights of the Finance Parties under Clause 22.2 (Acceleration),
if the Agent (acting on the instructions of the Majority Lenders) gives written notice to the Borrower of the occurrence of an
Event of Default (other than an Event of Default referred to in Clause 22.1(a) (Non-payment)) and demands payment of interest
under this paragraph (b) of Clause 8.3 (Default interest), interest shall accrue on the amount of the Loan from the date
of such notice up to the date on which the Agent (acting on the instructions of the Majority Lenders) gives notice to the Borrower
that such Event of Default is no longer continuing. Interest shall accrue at a rate which is 2 per cent per annum higher than the
applicable rate for each part of the Loan.

 

		(c)	Default interest (if unpaid) arising on an Unpaid Sum or, in the case of paragraph (b), the Loan
will be compounded with the Unpaid Sum or, as the case may be, the Loan at the end of each Interest Period applicable to that Unpaid
Sum or, as the case may be, the Loan but will remain immediately due and payable.

 

		8.4	Notification of rates of interest

 

The Agent shall promptly notify
the Borrower of the determination of a rate of interest under this Agreement.

    	37

    	

    

		9	Interest Periods

 

		9.1	Selection of Interest Periods

 

The Borrower may select in
a written notice to the Agent the duration of the Interest Period for each Loan subject as follows:

 

		(a)	each notice is irrevocable and must be delivered to the Agent by the Borrower not later than 11.00
a.m. on the Quotation Day;

 

		(b)	if the Borrower fails to give a notice in accordance with Clause 9.1(a), the relevant Interest
Period will, subject to Clause 9.2 (Non-Business Days) and Clause 9.3 (Interest Periods to meet Repayment Dates),
be three months;

 

		(c)	subject to this Clause 9 (Interest Periods), the Borrower may select an Interest Period
of 3, 6 or 12 months or any other period agreed between the Borrower and the Agent (acting on the instructions of all the Lenders);

 

		(d)	an Interest Period shall not extend beyond the Termination Date; and

 

		(e)	each Interest Period shall start on the Drawdown Date in respect of the first Drawing and end on
the date which numerically corresponds to the Drawdown Date in the relevant calendar month except that, if there is no numerically
corresponding date in that calendar month, the Interest Period shall end on the last Business Day in that month.

 

		9.2	Non-Business Days

 

If an Interest Period would
otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar
month (if there is one) or the preceding Business Day (if there is not).

 

		9.3	Interest Periods to meet Repayment Dates

 

If an Interest Period will
expire after the next Repayment Date there shall be a separate Interest Period for a part of that Loan equal to the Repayment Instalment
or, as the case may be the amount due and payable on the next Repayment Date and that separate Interest Period shall expire on
that next Repayment Date.

 

		10	Changes to the Calculation of Interest

 

		10.1	Absence of quotations

 

Subject to Clause 10.2 (Market
disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation
by 11.00 am on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference
Banks.

 

		10.2	Market disruption

 

If a Market Disruption Event
occurs for any Interest Period, then the rate of interest on each Lender’s share of that Loan for that Interest Period shall
be the percentage rate per annum which is the sum of:

    	38

    	

    

		(a)	the Margin; and

 

		(b)	the rate notified to the Agent by that Lender as soon as practicable, and in any event by close
of business on the date falling three Business Days after the Quotation Day (or, if earlier, on the date falling three Business
Days prior to the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a
percentage rate per annum the cost to that Lender of funding its participation in the Loan from whatever source it may reasonably
select.

 

In this Agreement “Market
Disruption Event” means:

 

		(i)	at or about noon on the Quotation Day for the relevant Interest Period LIBOR is to be determined
by reference to the Reference Banks and none of the Reference Banks supplies a rate to the Agent to determine LIBOR for dollars
and the relevant Interest Period; or

 

		(ii)	before close of business in London on the Quotation Day for the relevant Interest Period, the Agent
receives notifications from a Lender or Lenders (whose participations in the Loan exceed fifty per cent (50%) of the Loan) that
the cost to it of funding its participation in the Loan from whatever source it may reasonably select would be in excess of LIBOR.

 

		10.3	Alternative basis of interest or funding

 

		(a)	If a Market Disruption Event occurs and the Agent or the Borrower so requires, the Agent and the
Borrower shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for
determining the rate of interest.

 

		(b)	Any alternative basis agreed pursuant to Clause 10.3(a) shall, with the prior consent of all the
Lenders and the Borrower, be binding on all Parties.

 

		10.4	Break Costs

 

The Borrower shall, within
three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of
the Loan or Unpaid Sum being paid by the Borrower on a day other than the last day of an Interest Period for the Loan or Unpaid
Sum.

 

Each Lender shall, as soon
as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest
Period in which they accrue in reasonable detail.

 

		11	Fees

 

		11.1	Upfront Fee

 

The Borrower shall pay an
upfront fee in the amount and at the times agreed in a Fee Letter.

 

		11.2	Commitment Fee

 

		(a)	The Borrower has paid to the Agent (for the account of the Lenders in proportion to their Commitments)
a fee computed at the rate of zero point sixty per cent (0.60%) per annum on the undrawn amount of the Term Loan Facility for the
Availability Period.

    	39

    	

    

The accrued commitment fee
is payable on the last day of each successive period of three months which ends during the Availability Period, on the last day
of the Availability Period and (on the cancelled amount of the relevant Lender’s Commitment) at the time the cancellation
is effective.

 

		11.3	Structuring fee

 

The Borrower has paid to the
Arranger a structuring fee in the amount and at the times agreed in a Fee Letter.

 

		11.4	Agency fee

 

The Borrower has paid to the
Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

 

		11.5	Amendment fee

 

The Borrower has paid to the
Agent (for its own account) an amendment fee in the amount and at the times agreed in a Fee Letter.

    	40

    	

    

Section
6

Additional Payment Obligations

 

		12	Tax Gross Up and Indemnities

 

		12.1	Definitions

 

In this Agreement:

 

“Borrower
DTTP Filing” means an HM Revenue & Customs’ Form DTTP2 duly completed and filed by the Borrower,
which:

 

		(a)	where it relates to a Treaty Lender that is an Original Lender, contains the scheme reference number
and jurisdiction of tax residence stated opposite that Lender’s name in Part A of Schedule 1 (The Original Lenders)
and is filed with HM Revenue & Customs within 30 days of the date of this Agreement; or

 

		(b)	where it relates to a Treaty Lender that is a New Lender, contains the scheme reference number
and jurisdiction of tax residence stated in respect of that Lender in the relevant Transfer Certificate or Assignment Agreement,
and is filed with HM Revenue & Customs within 30 days of that Transfer Date.

 

“Protected
Party” means a Finance Party which is or will be subject to any liability or required to make any payment for
or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable)
under a Finance Document.

 

“Qualifying
Lender” means a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance
under a Finance Document and:

 

		(a)	which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under
a Finance Document and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect
of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or in respect of an
advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the
time that that advance was made and within the charge to United Kingdom corporation tax as respects any payments of interest made
in respect of that advance; or

 

		(b)	which is:

 

		(i)	a company resident in the United Kingdom for United Kingdom tax purposes;

 

		(ii)	a partnership each member of which is:

 

		(A)	a company so resident in the United Kingdom; or

 

		(B)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section
19 of the CTA) the whole of any share of

    	41

    	

    

interest payable
in respect of that advance that falls to it by reason of Part 17 of the CTA; or

 

		(iii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the CTA) of that company; or

 

		(c)	which is a Treaty Lender.

 

“Tax
Confirmation” means a confirmation by a Lender that the person beneficially entitled to interest payable to that
Lender in respect of an advance under a Finance Document is either:

 

		(a)	a company resident in the United Kingdom for United Kingdom tax purposes;

 

		(b)	a partnership each member of which is:

 

		(i)	a company so resident in the United Kingdom; or

 

		(ii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section
19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the
CTA; or

 

		(c)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the CTA) of that company.

 

“Tax
Credit” means a credit against, relief or remission for, or repayment of any Tax.

 

“Tax
Deduction” means a deduction or withholding for or on account of Tax from a payment under a Finance Document,
other than a FATCA Deduction.

 

“Tax
Payment” means either the increase in a payment made by a Security Party to a Finance Party under Clause 12.2
(Tax gross-up) or a payment by the Borrower under Clause 12.3 (Tax indemnity).

 

“Treaty
Lender” means a Lender which:

 

		(a)	is treated as a resident of a Treaty State for the purposes of the Treaty;

 

		(b)	does not carry on a business in the United Kingdom through a permanent establishment with which
that Lender’s participation in the Loan is effectively connected.

 

“Treaty
State” means a jurisdiction having a double taxation agreement (a “Treaty”) with the United Kingdom
which makes provision for full exemption from tax imposed by the United Kingdom on interest.

 

“UK
Non-Bank Lender” means:

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		(a)	where a Lender becomes a Party on the day on which this Agreement is entered into, a Lender listed
in Part B of Schedule 1 (The Original Lenders); and

 

		(b)	where a Lender becomes a Party after the day on which this Agreement is entered into, a Lender
which gives a Tax Confirmation in the Transfer Certificate which it executes on becoming a Party.

 

Unless a contrary indication
appears, in this Clause 12 (Tax Gross Up and Indemnities) a reference to “determines” or “determined”
means a determination made in the absolute discretion of the person making the determination.

 

		12.2	Tax gross-up

 

The Borrower shall (and shall
procure that each other Security Party shall) make all payments to be made by it without any Tax Deduction, unless a Tax Deduction
is required by law, subject as follows:

 

		(a)	the Borrower shall promptly upon becoming aware that it or any other Security Party must make a
Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly. Similarly,
a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender. If the Agent receives such
notification from a Lender it shall notify the Borrower and any such other Security Party;

 

		(b)	if a Tax Deduction is required by law to be made by the Borrower or any other Security Party, the
amount of the payment due from the Borrower or that other Security Party shall be increased to an amount which (after making any
Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required;

 

		(c)	a payment shall not be increased under Clause 12.2(b) by reason of a Tax Deduction on account of
Tax imposed by the United Kingdom, if on the date on which the payment falls due:

 

		(i)	the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had
been a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of
any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application
of) any law or Treaty or any published practice or published concession of any relevant taxing authority; or

 

		(ii)	the relevant Lender is a Qualifying Lender solely by virtue of (b) of the definition of Qualifying
Lender and:

 

		(A)	an officer of H.M. Revenue & Customs has given (and not revoked) a direction (a “Direction”)
under section 931 of the ITA which relates to the payment and that Lender has received from the Borrower or from the other Security
Party making the payment a certified copy of that Direction; and

 

		(B)	the payment could have been made to the Lender without any Tax Deduction if that Direction had
not been made; or

 

		(iii)	the relevant Lender is a Qualifying Lender solely by virtue of (b) of the definition of Qualifying
Lender and:

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		(A)	the relevant Lender has not given a Tax Confirmation to the Borrower; and

 

		(B)	the payment could have been made to the Lender without any Tax Deduction if the Lender had given
a Tax Confirmation to the Borrower, on the basis that the Tax Confirmation would have enabled the Borrower to have formed a reasonable
belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA; or

 

		(iv)	the relevant Lender is a Treaty Lender and the Borrower or the other Security Party making the
payment is able to demonstrate that the payment could have been made to that Lender without the Tax Deduction had that Lender complied
with its obligations under Clause 12.2(f) or Clause 12.2(g) (as applicable);

 

		(d)	if the Borrower or any other Security Party is required to make a Tax Deduction, the Borrower shall
(and shall procure that such other Security Party shall) make that Tax Deduction and any payment required in connection with that
Tax Deduction within the time allowed and in the minimum amount required by law;

 

		(e)	within 30 days of making either a Tax Deduction or any payment required in connection with that
Tax Deduction, the Borrower shall (and shall procure that such other Security Party shall) deliver to the Agent for the Finance
Party entitled to the payment a statement under section 975 of the ITA or other evidence reasonably satisfactory to that Finance
Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority;

 

		(f)	

 

		(i)	Subject to (ii), a Treaty Lender and the Borrower shall co-operate (and the Borrower shall procure
that each other Security Party which makes a payment to which that Treaty Lender is entitled shall co-operate) in completing any
procedural formalities necessary for the Borrower or that other Security Party to obtain authorisation to make that payment without
a Tax Deduction.

 

		(ii)	

 

		(A)	A Treaty Lender which becomes a Party on the day on which this Agreement is entered into that holds
a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its
scheme reference number and its jurisdiction of tax residence opposite its name in Part A of Schedule 1 (The Original Lenders);
and

 

		(B)	a New Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme,
and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax
residence in the Transfer Certificate or Assignment Agreement which it executes,

 

and, having done so, that Lender
shall be under no obligation pursuant to (i).

 

		(g)	If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in
accordance with Clause 12.2(f)(ii) and:

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		(i)	the Borrower making a payment to that Lender has not made a Borrower DTTP Filing in respect of
that Lender; or

 

		(ii)	the Borrower making a payment to that Lender has made a Borrower DTTP Filing in respect of that
Lender but:

 

		(A)	that Borrower DTTP Filing has been rejected by HM Revenue & Customs; or

 

		(B)	HM Revenue & Customs has not given the Borrower authority to make payments to that Lender
without a Tax Deduction within 60 days of the date of the Borrower DTTP Filing,

 

and in each case, the Borrower
has notified that Lender in writing, that Lender and the Borrower shall co-operate in completing any additional procedural formalities
necessary for the Borrower to obtain authorisation to make that payment without a Tax Deduction.

 

		(h)	If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in
accordance with Clause 12.2(f)(ii), the Borrower shall not make a Borrower DTTP Filing or file any other form relating to the HMRC
DT Treaty Passport scheme in respect of that Lender’s Commitment(s) or its participation in the Loan unless the Lender otherwise
agrees.

 

		(i)	The Borrower shall, promptly on making a Borrower DTTP Filing, deliver a copy of that Borrower
DTTP Filing to the Agent for delivery to the relevant Lender.

 

		(j)	A UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into gives
a Tax Confirmation to the Borrower by entering into this Agreement.

 

		(k)	A UK Non-Bank Lender shall promptly notify the Borrower and the Agent if there is any change in
the position from that set out in the Tax Confirmation.

 

		12.3	Tax indemnity

 

		(a)	The Borrower shall (within three Business Days of demand by the Agent) pay to a Protected Party
an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly)
suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

 

		(b)	Clause 12.3(a) shall not apply:

 

		(i)	with respect to any Tax assessed on a Finance Party:

 

		(A)	under the law of the jurisdiction in which that Finance Party is incorporated or, if different,
the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or

 

		(B)	under the law of the jurisdiction in which that Finance Party’s Facility Office is located
in respect of amounts received or receivable in that jurisdiction,

 

if that Tax is imposed on or
calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that
Finance Party; or

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		(ii)	to the extent a loss, liability or cost:

 

		(A)	is compensated for by an increased payment under Clause 12.2 (Tax gross-up);

 

		(B)	would have been compensated for by an increased payment under Clause 12.2 (Tax gross-up)
but was not so compensated solely because one of the exclusions in Clause 12.2(c) (Tax gross-up) applied; or

 

		(C)	relates to a FATCA Deduction required to be made by a Party.

 

		(c)	A Protected Party making, or intending to make a claim under Clause 12.3(a) shall promptly notify
the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the Borrower.

 

		(d)	A Protected Party shall, on receiving a payment from the Borrower under this Clause 12.3 (Tax
indemnity), notify the Agent.

 

		12.4	Tax Credit

 

If the Borrower or any other
Security Party makes a Tax Payment and the relevant Finance Party determines that:

 

		(a)	a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that
Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and

 

		(b)	that Finance Party has obtained and utilised that Tax Credit,

 

that Finance Party shall pay
an amount to the Borrower or to that other Security Party which that Finance Party determines will leave it (after that payment)
in the same after-Tax position as it would have been in had the Tax Payment not been made by the Borrower or that other Security
Party.

 

		12.5	Lender status confirmation

 

Each Lender which becomes
a Party to this Agreement after the date of this Agreement shall indicate, in the Transfer Certificate or Assignment Agreement
which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Security Party, which of the
following categories it falls in:

 

		(a)	not a Qualifying Lender;

 

		(b)	a Qualifying Lender (other than a Treaty Lender); or

 

		(c)	a Treaty Lender.

 

If a New Lender fails to
indicate its status in accordance with this Clause 12.5 (Lender status confirmation) then such New Lender shall be
treated for the purposes of this Agreement (including by each Security Party) as if it is not a Qualifying Lender until such
time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the
Borrower). For the avoidance of doubt, a Transfer Certificate or Assignment Agreement shall not be invalidated by any failure
of a Lender to comply with this Clause 12.5 (Lender status confirmation).

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		12.6	Stamp taxes

 

The Borrower shall pay and,
within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs
in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

 

		12.7	VAT

 

		(a)	All amounts expressed to be payable under a Finance Document by any Party or any Security Party
to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive
of any VAT which is chargeable on that supply, and accordingly, subject to Clause 12.7(b), if VAT is or becomes chargeable on any
supply made by any Finance Party to any Party or any Security Party under a Finance Document and such Finance Party is required
to account to the relevant tax authority for the VAT, that Party or Security Party must pay to such Finance Party (in addition
to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance
Party must promptly provide an appropriate VAT invoice to the Borrower).

 

		(b)	If VAT is or becomes chargeable on any supply made by any Finance Party (the “Supplier”)
to any other Finance Party (the “Recipient”) under a Finance Document, and any Party other than the Recipient
(the “Relevant Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration
for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

 

		(i)	(where the Supplier is the person required to account to the relevant tax authority for the VAT)
the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount
of the VAT. The Recipient must (where this Clause 12.7(b)(i) applies) promptly pay to the Relevant Party an amount equal to any
credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to
the VAT chargeable on that supply; and

 

		(ii)	(where the Recipient is the person required to account to the relevant tax authority for the VAT)
the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable
on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from
the relevant tax authority in respect of that VAT.

 

		(c)	Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost
or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or
expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it
is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

 

		(d)	Any reference in this Clause 12.7 (VAT) to any Party shall, at any time when such Party
is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference
to the representative member of such group at such time (the term “representative member” to have the same meaning
as in the Value Added Tax Act 1994).

 

		(e)	In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably
requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party’s VAT registration
and such other information as is reasonably

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requested in connection with
such Finance Party’s VAT reporting requirements in relation to such supply.

 

		12.8	FATCA information

 

		(a)	Subject to Clause 12.8(c), each Party shall, within ten Business Days of a reasonable request by
another Party:

 

		(i)	confirm to that other Party whether it is:

 

		(A)	a FATCA Exempt Party; or

 

		(B)	not a FATCA Exempt Party;

 

		(ii)	supply to that other Party such forms, documentation and other information relating to its status
under FATCA as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA; and

 

		(iii)	supply to that other Party such forms, documentation and other information relating to its status
as that other Party reasonably requests for the purposes of that other Party’s compliance with any other law, regulation,
or exchange of information regime.

 

		(b)	If a Party confirms to another Party pursuant to Clause 12.3(b)(i)(A) that it is a FATCA Exempt
Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other
Party reasonably promptly.

 

		(c)	Clause 12.8(a) shall not oblige any Finance Party to do anything, and Clause 12.8(a)(iii) shall
not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

 

		(i)	any law or regulation;

 

		(ii)	any fiduciary duty; or

 

		(iii)	any duty of confidentiality.

 

		(d)	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation
or other information requested in accordance with Clause 12.8(a)(i) or Clause 12.8(a)(ii) (including, for the avoidance of doubt,
where Clause 12.8(c) applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them)
as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation
or other information.

 

		12.9	FATCA Deduction

 

		(a)	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required
in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such
a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

		(b)	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there
is any change in the rate or the basis of such FATCA Deduction) notify the Party to whom

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			it is making the payment and, in addition, shall notify the Borrower and the Agent and the Agent
shall notify the other Finance Parties.

 

		13	Increased Costs

 

		13.1	Increased costs

 

Subject to Clause 13.3 (Exceptions)
the Borrower shall, within three Business Days of a demand by the Agent, pay to the Agent for the account of a Finance Party the
amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or
any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law
or regulation or any request from or requirement of any central bank or other fiscal, monetary or other authority, in each case,
made after the date of this Agreement (including Basel III (as defined in Clause 13.3 (Exceptions)) and any other which
relates to capital adequacy or liquidity controls or which affects the manner in which that Finance Party allocates capital resources
to obligations under this Agreement and/or the Master Agreement) or (iii) any change in the risk weight allocated by that Finance
Party to the Borrower after the date of this Agreement.

 

In this Agreement “Increased
Costs” means:

 

		(a)	a reduction in the rate of return from the Loan or on a Finance Party’s (or its Affiliate’s)
overall capital;

 

		(b)	an additional or increased cost; or

 

		(c)	a reduction of any amount due and payable under any Finance Document,

 

which is incurred or suffered
by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into any
Finance Document or funding or performing its obligations under any Finance Document.

 

		13.2	Increased cost claims

 

		(a)	A Finance Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall
notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrower.

 

		(b)	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate
confirming the amount of its Increased Costs in reasonable detail, provided that the relevant Finance Party shall be under no obligation
to disclose any information which it in its absolute discretion deems to be confidential to its business.

 

		13.3	Exceptions

 

Clause 13.1 (Increased
costs) does not apply to the extent any Increased Cost is:

 

		(a)	attributable to a Tax Deduction required by law to be made by the Borrower;

 

		(b)	attributable to a FATCA Deduction required to be made by a Party;

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		(c)	compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for
under Clause 12.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in Clause 12.3 (Tax
indemnity) applied);

 

		(d)	attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or
regulation; or

 

		(e)	attributable to an election made by the relevant Finance Party voluntarily.

 

In this Clause 13.3 (Exceptions),
a reference to a “Tax Deduction” has the same meaning given to the term in Clause 12.1 (Definitions)
and “Basel III” means (a) the agreements on capital requirements, a leverage ratio and liquidity standards contained
in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International
framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating
the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended,
supplemented or restated, (b) the rules for global systemically important banks contained in “Global systemically important
banks: assessment methodology and the additional loss absorbency requirement - Rules text” published by the Basel Committee
on Banking Supervision in November 2011 and (c) any further guidance or standards published by the Basel Committee on Banking Supervision
relating to “Basel III”.

 

		14	Other Indemnities

 

		14.1	Currency indemnity

 

If any sum due from the Borrower
under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has
to be converted from the currency (the “First Currency”) in which that Sum is payable into another currency
(the “Second Currency”) for the purpose of:

 

		(a)	making or filing a claim or proof against the Borrower, or

 

		(b)	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration
proceedings,

 

the Borrower shall as an independent
obligation, within three Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or
liability arising out of or as a result of the conversion including any discrepancy between (a) the rate of exchange used to convert
that Sum from the First Currency into the Second Currency and (b) the rate or rates of exchange available to that Finance Party
at the time of its receipt of that Sum.

 

The Borrower waives any right
it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in
which it is expressed to be payable.

 

		14.2	Other indemnities

 

		(a)	The Borrower shall, within three Business Days of demand, indemnify each Finance Party against
any documented cost, loss or liability incurred by that Finance Party as a result of:

 

		(i)	the occurrence of any Event of Default;

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		(ii)	a failure by the Borrower to pay any amount due under a Finance Document on its due date( after
taking into account any applicable grace period), including without limitation, any documented cost, loss or liability arising
as a result of Clause 27 (Sharing among the Finance Parties);

 

		(iii)	funding, or making arrangements to fund, a Drawing following delivery by the Borrower of a Drawdown
Request but that Drawing not being advanced by reason of the operation of any one or more of the provisions of this Agreement (other
than by reason of default or negligence by a Finance Party alone); or

 

		(iv)	the Loan (or part of the Loan) not being prepaid in accordance with a notice of prepayment given
by the Borrower.

 

		(b)	The Borrower shall promptly indemnify each Finance Party, each Affiliate of a Finance Party and
each officer or employee of a Finance Party or its Affiliate (each such person for the purposes of this Clause 14.2 (Other indemnities)
an “Indemnified Person”) against any documented cost, loss or liability incurred by that Indemnified Person
pursuant to or in connection with any litigation, arbitration or administrative proceedings or regulatory enquiry, in connection
with or arising out of the entry into and the transactions contemplated by the Finance Documents, having the benefit of any Encumbrance
constituted by the Finance Documents or which relates to the condition or operation of, or any incident occurring in relation to,
a Vessel, unless such cost, loss or liability is caused by the gross negligence or wilful misconduct of that Indemnified Person.

 

		(c)	Subject to any limitations set out in Clause 14.2(b), the indemnity in that Clause shall cover
any cost, loss or liability incurred by each Indemnified Person in any jurisdiction:

 

		(i)	arising or asserted under or in connection with any law relating to safety at sea, the ISM Code,
any Environmental Law or any Sanctions Laws; or

 

		(ii)	in connection with any Environmental Claim.

 

		14.3	Indemnity to the Agent

 

The Borrower shall promptly
indemnify the Agent against:

 

		(a)	Any documented cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

 

		(i)	investigating any event which it reasonably believes is a Default; or

 

		(ii)	acting or relying on any notice, request or instruction which it reasonably believes to be genuine,
correct and appropriately authorised; or

 

		(iii)	instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts
as permitted under this Agreement; and

 

		(b)	any documented cost, loss or liability (including, without limitation, for negligence or any other
category of liability whatsoever) incurred by the Agent reasonably (otherwise than by reason of the Agent’s gross negligence
or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 28.12 (Disruption to payment systems
etc.) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not
including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents.

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		14.4	Indemnity to the Security Agent

 

The Borrower shall promptly
indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them as a result
of:

 

		(a)	any failure by the Borrower to comply with its obligations under Clause 16 (Costs and Expenses);

 

		(b)	acting or relying on any notice, request or instruction which it reasonably believes to be genuine,
correct and appropriately authorised;

 

		(c)	the taking, holding, protection or enforcement of the Security Documents;

 

		(d)	the exercise of any of the rights, powers, discretions, authorities and remedies vested in the
Security Agent and each Receiver and Delegate by the Finance Documents or by law;

 

		(e)	any default by any Security Party in the performance of any of the obligations expressed to be
assumed by it in the Finance Documents; or

 

		(f)	acting as Security Agent, Receiver or Delegate under the Finance Documents or which otherwise relates
to any of the Charged Property (otherwise, in each case, than by reason of the relevant Security Agent’s, Receiver’s
or Delegate’s gross negligence or wilful misconduct).

 

		14.5	Indemnity survival

 

The indemnities contained
in this Agreement shall survive repayment of the Loan.

 

		15	Mitigation by the Lenders

 

		15.1	Mitigation

 

Each Finance Party shall,
in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in
all or any part of the Loan ceasing to be available or any amount becoming payable under or pursuant to any of Clause 7.1 (Illegality),
Clause 12 (Tax Gross Up and Indemnities) or Clause 13 (Increased Costs) including (but not limited to) transferring
its rights and obligations under the Finance Documents to another Affiliate or Facility Office. The above does not in any way limit
the obligations of any Security Party under the Finance Documents.

 

		15.2	Limitation of liability

 

The Borrower shall promptly
indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by
it under Clause 15.1 (Mitigation). A Finance Party is not obliged to take any steps under Clause 15.1 (Mitigation) if, in
its opinion (acting reasonably), to do so might be prejudicial to it.

 

		16	Costs and Expenses

 

		16.1	Transaction expenses

 

The Borrower, whether or not
the Loan (or any part thereof) has been advanced to the Borrower, shall promptly on demand pay the Agent, the Security Agent and
the Arranger the amount of all documented costs and expenses (including, but not limited to external legal fees)

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reasonably incurred by any
of them (and, in the case of the Security Agent, by any Receiver or Delegate) in connection with:

 

		(a)	the negotiation, preparation, printing, execution and perfection of this Agreement and any other
documents referred to in this Agreement;

 

		(b)	the negotiation, preparation, printing, execution and perfection of any other Finance Documents
executed after the date of this Agreement and any amendments to the Finance Documents;

 

		(c)	any other document which may at any time be required by a Finance Party to give effect to any Finance
Document or which a Finance Party is entitled to call for or obtain under any Finance Document (including, without limitation,
any valuation of a Vessel and all premiums and other sums from time to time payable by the Security Agent in relation to the Mortgagee’s
Insurances); and

 

		(d)	any discharge, release or reassignment of any of the Security Documents.

 

		16.2	Amendment costs

 

If (a) a Security Party requests
an amendment, waiver or consent or (b) an amendment is required under Clause 28.11 (Change of currency), the Borrower shall,
within three Business Days of demand, reimburse each of the Agent and the Security Agent for the amount of all costs and expenses
(including legal fees) reasonably incurred by the Agent and the Security Agent (and, in the case of the Security Agent, by any
Receiver or Delegate) in responding to, evaluating, negotiating or complying with that request or requirement.

 

		16.3	Enforcement and preservation costs

 

The Borrower shall, promptly
upon demand, pay to each Finance Party and each other Secured Party the amount of all documented costs and expenses (including,
but not limited to external legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation
of any rights under, any Finance Document and any proceedings instituted by or against the Security Agent as a consequence of taking
or holding the Security Documents or enforcing those rights including (without limitation) any losses, costs and expenses which
that Finance Party or other Secured Party may from time to time sustain, incur or become liable for by reason of that Finance Party
or other Secured Party being mortgagee of a Vessel and/or a lender to the Borrower, or by reason of that Finance Party or other
Secured Party being deemed by any court or authority to be an operator or controller, or in any way concerned in the operation
or control, of a Vessel.

 

		16.4	Other costs

 

The Borrower shall, within
three Business Days of demand, pay to each Finance Party and each other Secured Party the amount of all sums which that Finance
Party or other Secured Party may pay or become actually or contingently liable for on account of the Borrower in connection with
a Vessel (whether alone or jointly or jointly and severally with any other person) including (without limitation) all sums which
that Finance Party or other Secured Party may pay or guarantees which it may give in respect of the Insurances, any expenses incurred
by that Finance Party or other Secured Party in connection with the maintenance or repair of a Vessel or in discharging any lien,
bond or other claim relating in any way to a Vessel, and any sums which that Finance Party or other Secured Party may pay or guarantees
which it may give to procure the release of a Vessel from arrest or detention.

    	53

    	

Section
7

 

Security
and Application of Moneys

 

	17	Security
    Documents and Application of Moneys
	 	 
	17.1	Security Documents

 

As security for the payment
of the Indebtedness, the Borrower shall execute and deliver to the Security Agent or cause to be executed and delivered to the
Security Agent the following documents in such forms and containing such terms and conditions as the Security Agent shall require:

 

	(a)	in relation to each Vessel, a first preferred or priority statutory mortgage over each Vessel together with a collateral deed of covenants (if applicable);
	 	 
	(b)	in relation to each Vessel a first priority deed or deeds of assignment of the Insurances, Earnings and Requisition Compensation of each Vessel; and the first priority assignment of Insurances from the Managers contained in the Managers’ Undertakings;
	 	 
	(c)	a guarantee and indemnity from each Guarantor;
	 	 
	(d)	a first priority account security deed in respect of all amounts from time to time standing to the credit of the Earnings Accounts; and
	 	 
	(e)	a first priority deed of charge over the Master Agreement Benefits.
	 	 
	17.2	Earnings Accounts

 

The Borrower shall procure
that each Collateral Owner maintains its Earnings Account with the Account Holder for the duration of the Facility Period, (unless
the relevant Collateral Owner is released earlier in accordance with Clause 7.4 (Mandatory
prepayment on sale or Total Loss) or in accordance with the other terms of Agreement or in accordance with any terms of the
Security Documents), free of Encumbrances and rights of set off other than those created by or under the Finance Documents or the
standard terms of the Account Holder or any Permitted Encumbrance.

 

	17.3	Earnings

 

The Borrower shall procure
that all Earnings and any Requisition Compensation are credited to the Earnings Account.

 

	17.4	Relocation of Accounts

 

At any time following the
occurrence and during the continuation of a Default, the Security Agent may without the consent of the Collateral Owners instruct
the Account Holder to relocate any or all of the Earnings Accounts to any other branch of the Account Holder, without prejudice
to the continued application of this Clause 17 (Security Documents and Application of Moneys) and the rights of the Finance
Parties under the Finance Documents.

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	17.5	Access to information

 

The Borrower agrees and shall
procure that each Collateral Owner agrees that the Security Agent (and its nominees) may from time to time during the Facility
Period review the records held by the Account Holder (whether in written or electronic form) in relation to the Earnings Accounts
and irrevocably waives any right of confidentiality which may exist in relation to those records.

 

	17.6	Statements

 

Without prejudice to the
rights of the Security Agent under Clause 17.5 (Access to information), the Borrower shall
procure that the Account Holder provides to the Security Agent, no less frequently than each calendar month during the Facility
Period, written statements of account showing all entries made to the credit and debit of any of the Earnings Accounts during the
immediately preceding calendar month.

 

	17.7	Application after acceleration

 

From and after the giving
of notice to the Borrower by the Agent under Clause 22.2 (Acceleration), the Borrower shall procure that all sums from time
to time standing to the credit of any of the Earnings Accounts are immediately transferred to the Security Agent or any Receiver
or Delegate for application in accordance with Clause 17.8 (Application of moneys by Security Agent) and the Borrower irrevocably
authorises the Security Agent to instruct the Account Holder to make those transfers.

 

	17.8	Application of moneys by
    Security Agent

 

The Borrower and the Finance
Parties irrevocably authorise the Security Agent or any Receiver or Delegate to apply all moneys which it receives and is entitled
to receive:

 

	(a)	pursuant to a sale or other disposition of a Vessel or any right, title or interest in a Vessel; or
	 	 
	(b)	by way of payment of any sum in respect of the Insurances, Earnings or Requisition Compensation; or
	 	 
	(c)	by way of transfer of any sum from any of the Earnings Accounts; or
	 	 
	(d)	otherwise under or in connection with any Security Document,
	 	 
	 	in or towards satisfaction of the Indebtedness in the following order:
	 	 
	(e)	first, any unpaid fees, costs, expenses and default interest due to the Agent and the Security Agent (and, in the case of the Security Agent, to any Receiver or Delegate) under all or any of the Finance Documents, such application to be apportioned between the Agent and the Security Agent pro rata to the aggregate amount of such items due to each of them;
	 	 
	(f)	second, any unpaid fees, costs, expenses (including any sums paid by the Lenders under Clause 25.11 (Lenders’ indemnity to the Agent)) of the Lenders due under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such items due to each of them;

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	(g)	third, any accrued but unpaid default interest due to the Lenders under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such default interest due to each of them;
	 	 
	(h)	fourth, any other accrued but unpaid interest due to the Lenders under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such interest due to each of them;
	 	 
	(i)	fifth, any principal of the Term Loan Facility due and payable but unpaid under this Agreement, such application to be apportioned between the Lenders pro rata to the aggregate amount of such principal due to each of them;
	 	 
	(j)	seventh, any other sum due and payable to any Finance Party but unpaid under all or any of the Finance Documents, such application to be apportioned between the Finance Parties pro rata to the aggregate amount of any such sum due to each of them;

 

Provided that any
part of the Indebtedness arising out of the Master Agreement shall be satisfied on a pari passu basis with any repayment of the
principal of the Loan; and

 

Provided that the
balance (if any) of the moneys received shall be paid to the Security Parties from whom or from whose assets those sums were received
or recovered or to any other person entitled to them.

 

	17.9	Retention
    on account

 

Moneys to be applied by the
Security Agent or any Receiver or Delegate under Clause 17.8 (Application of moneys by Security Agent) shall be applied
as soon as practicable after the relevant moneys are received by it, or otherwise become available to it, save that (without prejudice
to any other provisions contained in any of the Security Documents) the Security Agent or any Receiver or Delegate may retain any
such moneys by crediting them to a suspense account for so long and in such manner as the Security Agent or such Receiver or Delegate
may from time to time determine with a view to preserving the rights of the Finance Parties or any of them to prove for the whole
of the Indebtedness (or any relevant part) against the Borrower or any other person liable.

 

	17.10	Additional
    security

 

If at any time the aggregate
of the Market Value of the Vessels and the value of any additional security (such value to be the face amount of the deposit (in
the case of cash) and determined conclusively by appropriate advisers appointed by the Agent, in the case of other additional security
provided under Clause 17.10(b)), for the time being provided to the Security Agent under this Clause 17.10 (Additional security)
is less than 120% of the aggregate of the amount of the Loan then outstanding and the amount certified by the Swap Provider to
be the negative mark-to-market at the time for any derivative products entered into by the Borrower with the Swap Provider (the
“VTL Coverage”), the Borrower shall, within 30 days of the Agent’s request, at the Borrower’s option
do one or more of the following:

 

	(a)	make a cash deposit to the Restricted Cash Account secured in favour of the Security Agent as additional security for the payment of the Indebtedness; or
	 	 
	(b)	give to the Security Agent other additional security in amount and form acceptable to the Security Agent in its discretion; or

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	(c)	prepay the Loan,

 

to the extent required to
eliminate the shortfall.

 

Clause 7.8
(Restrictions) shall apply, mutatis mutandis, to any prepayment made under this Clause 17.10 (Additional security).

 

Any prepayment made under
this Clause 17.10 (Additional security), shall be applied proportionately between the Tranches and within the Tranches against
the Repayment Instalments in order of maturity.

 

If, at any time after the
Borrower has provided additional security in accordance with the Agent’s request under this Clause 17.10 (Additional security)
and the Agent has determined, when testing compliance with the VTL Coverage, that all or any part of that additional security may
be released without resulting in a shortfall in the VTL Coverage (after the Agent has tested such VTL Coverage compliance by excluding
such additional security from such calculation), and provided that such compliance has been sustained continuously for a period
of three months, then the Security Agent shall effect a release of all or any part of that additional security in accordance with
the Agent’s instructions, but this shall be without prejudice to the Agent’s right to make a further request under
this Clause 17.10 (Additional security) should the value of the remaining security subsequently merit it.

 

	17.11	Market
    Value Determination

 

For the purpose of the Security
Documents, the aggregate Market Value of the Vessels or, as the context may require, a Group Vessel, shall be the average value
certified by two Approved Shipbrokers.

 

If there is a difference
between the two valuations obtained either pursuant to sub-paragraph (a) or (b) in excess of ten per cent of the lowest valuation,
then the Agent shall select a third firm of Approved Shipbrokers and the Market Value of a Vessel or a Group Vessel shall be determined
by the average of the three valuations.

 

Each Approved Shipbroker
appointed under this Agreement shall report directly to the Agent (on behalf of the Lenders) and shall be appointed by the Borrower
not later than five (5) days after the Agent’s request for the Borrower to appoint such Approved Shipbrokers. In the event
that the Borrower fails to appoint such Approved Shipbrokers within five (5) days after the Agent’s request to do so or if
a broker appointed by the Borrower is not approved by the Agent and the Borrower fails to appoint an alternative broker who is
approved by the Agent within such five (5) day period, the Borrower irrevocably authorises the Agent to appoint brokers in its
discretion to conduct such valuations, with such brokers to be subsequently considered as Approved Shipbrokers.

 

All valuations pursuant to
this Clause 17.11 (Market Value Determination) shall be made for the purposes of Clause
17.10 (Additional security) on the basis of a sale of a Vessel or a Group Vessel (as applicable) for prompt delivery for
cash at arm’s length on normal commercial terms by a willing seller to a willing buyer free of the value of any existing
charter or of any other contract of employment.

 

For the purposes of assessing
compliance with the Financial Covenants of Clause 20 (Financial Covenants), the valuations of a Vessel or a Group Vessel
shall be on the basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms by a willing seller
to a willing buyer and shall include the value of an Acceptable Charter, if an Acceptable Charter is

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in full force and effect
at the relevant time and provided that evidence thereof is provided to the Agent upon such Acceptable Charter coming in to force
and in form and substance acceptable to the Agent. If an Acceptable Charter is not in force, any valuations for the purposes of
Clause 20 (Financial Covenants) shall be made on a charter-free basis.

 

For the purpose of the Security
Documents, the Borrower irrevocably and unconditionally agrees to accept any and all valuations determining the market value of
a Vessel or any other Group Vessel obtained pursuant to this Clause 17.11 (Market Value Determination)
and such determination shall be conclusive evidence of a Vessel’s or any other Group Vessel’s (as the case may be)
market value at the date of such valuation.

 

	17.12	Cost
    of valuation

 

The Borrower shall be liable
for all costs and expenses incurred by the Agent in obtaining (a) semi-annual valuations throughout the Facility Period, as of
28 September and 28 March of each calendar year required for the purposes of determining the Market Value of the Vessels pursuant
to Clause 17.11 (Market Value Determination), (b) any and all valuations required for the purposes of Clause 17.10(b) (Additional
security), if the additional security comprises security over a Vessel, (c) any valuations required pursuant to Schedule 2,
Part A clause Schedule 22.5 and Part C clause Schedule 22.6 and (d) any additional valuations required by the Agent in its discretion
following the occurrence and during the continuation of an Event of Default. All such valuations issued in respect of the Vessels
shall be addressed to, and obtained by, the Agent (on behalf of the Lenders). Valuations issued in respect of a Group Vessel which
is encumbered with a mortgage, shall be addressed to the mortgagee or relevant lender of that Group Vessel, and in respect of a
Group Vessel which is not encumbered with a mortgage, shall be addressed to the relevant owner or managers of that Group Vessel.

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Section
8

 

Representations,
Undertakings and Events of Default

 

	18	Representations
	 	 
	18.1	Representations

 

Subject to the Legal Reservations,
the Borrower makes the representations and warranties set out in this Clause 18 (Representations) to each Finance Party.

 

	(a)	Status

 

Each of the Security Parties:

 

	 	(i)	is a limited liability corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation; and
	 	 	 
	 	(ii)	has the power to own its assets and carry on its business as it is being conducted.

 

	(b)	Binding
    obligations

 

	 	(i)	the obligations expressed to be assumed by each of the Security Parties in each of the Relevant Documents to which it is a party are legal, valid, binding and enforceable obligations; and
	 	 	 
	 	(ii)	(without limiting the generality of Clause 18.1(b)(i)), each Security Document to which it is a party creates the security interests which that Security Document purports to create and those security interests are valid and effective.

 

	(c)	Non-conflict
    with other obligations

 

The entry into and performance
by each of the Security Parties of, and the transactions contemplated by, the Relevant Documents do not conflict with:

 

	 	(i)	any law or regulation applicable to such Security Party;
	 	 	 
	 	(ii)	the constitutional documents of such Security Party; or
	 	 	 
	 	(iii)	any agreement or instrument binding upon such Security Party or any of such Security Party’s assets or constitute a default or termination event (however described) under any such agreement or instrument.

 

	(d)	Power and authority

 

	 	(i)	Each of the Security Parties has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Relevant Documents to which it is or will be a party and the transactions contemplated by those Relevant Documents.
	 	 	 
	 	(ii)	No limit on the powers of any Security Party will be exceeded as a result of the borrowing, grant of security or giving of guarantees or indemnities contemplated by the Relevant Documents to which it is a party.

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	(e)	Validity
    and admissibility in evidence

 

All Authorisations required
or desirable:

 

	 	(i)	to enable each of the Security Parties lawfully to enter into, exercise its rights and comply with its obligations in the Relevant Documents to which it is a party or to enable each Finance Party to enforce and exercise all its rights under the Relevant Documents; and
	 	 	 
	 	(ii)	to make the Relevant Documents to which any Security Party is a party admissible in evidence in its Relevant Jurisdictions,

 

have been obtained or effected
and are in full force and effect, with the exception only of the registrations referred to in Part II of Schedule
2 (Conditions Subsequent).

 

	(f)	Governing
    law and enforcement

 

	 	(i)	The choice of governing law of any Finance Document will be recognised and enforced in the Relevant Jurisdictions of each relevant Security Party.
	 	 	 
	 	(ii)	Any judgment obtained in relation to any Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in the Relevant Jurisdictions of each relevant Security Party.

 

	(g)	Insolvency

 

No corporate action, legal
proceeding or other procedure or step described in Clause 22.1(g) (Insolvency proceedings) or creditors’ process described
in Clause 22.1(h) (Creditors’ process) has been taken or, to the knowledge of the
Borrower, threatened in relation to a Security Party; and none of the circumstances described in Clause 22.1(f) (Insolvency)
applies to a Security Party.

 

	(h)	No
    filing or stamp taxes

 

Under the laws of the Relevant
Jurisdictions of each relevant Security Party it is not necessary that the Finance Documents be filed, recorded or enrolled with
any court or other authority in any of those jurisdictions or that any stamp, registration, notarial or similar tax or fees be
paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except registration of
each Mortgage at the Ships Registry where title to the relevant Vessel is registered in the ownership of the relevant Collateral
Owner and payment of associated fees, which registrations, filings, taxes and fees will be made and paid promptly after the date
of the relevant Finance Document.

 

	(i)	Deduction
    of Tax

 

None of the Security Parties
is required under the law of its jurisdiction of incorporation to make any deduction for or on account of Tax from any payment
it may make under any Finance Document to a Lender which is:

 

	 	(i)	a Qualifying Lender falling within (a) of the definition of Qualifying Lender; or, except where a Direction has been given under section 931 of the ITA in relation to the payment concerned, a Qualifying Lender falling within (b) of the definition of Qualifying Lender; or

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	 	(ii)	a Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue & Customs under Regulation 2 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

 

	(j)	No
    default

 

On the date of this Agreement
and on any Drawdown Date, no Event of Default is continuing or would result from the advance of the Loan (or any part thereof)
or from the entry into, the performance of, or any transaction contemplated by, any of the Relevant Documents.

 

	(k)	No
    misleading information

 

Save as disclosed in writing
to the Agent and the Arranger prior to the date of this Agreement:

 

	 	(i)	all material information provided to a Finance Party by or on behalf of any of the Security Parties on or before the date of this Agreement and not superseded before that date is accurate and not misleading in any material respect and all projections provided to any Finance Party on or before the date of this Agreement have been prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied; and
	 	 	 
	 	(ii)	all other written information provided by any of the Security Parties (including its advisers) to a Finance Party was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any respect.

 

	(l)	Financial
    statements

 

	 	(i)	The Original Financial Statements were prepared in accordance with GAAP consistently applied.
	 	 	 
	 	(ii)	The Original Financial Statements and the unaudited quarterly financial statements provided under Clause 19.1 (Financial statements) fairly represent the Group’s financial condition and results of operations for the relevant financial quarter.
	 	 	 
	 	(iii)	The Original Financial Statements give a true and fair view of the Group’s financial condition and results of operations during the relevant financial year.
	 	 	 
	 	(iv)	There has been no material adverse change in the financial condition or consolidated financial condition of the Group since the date of the Original Financial Statements.
	 	 	 
	 	(v)	Each Security Party’s (other than the Manager) most recent financial statements delivered pursuant to Clause 19.1 (Financial statements):

 

	 	(A)	have been prepared in accordance with GAAP as applied to the Original Financial Statements; and
	 	 	 
	 	(B)	give a true and fair view of (if audited) or fairly represent (if unaudited) its consolidated financial condition as at the end of, and consolidated results of operations for, the period to which they relate.

 

	 	(vi)	Since the date of the most recent financial statements delivered pursuant to Clause 19.1 (Financial statements) there has been no material adverse change in the business, assets or financial condition of any of the Security Parties.

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	(m)	No
    proceedings pending or threatened

 

No litigation, arbitration
or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, are to have a Material
Adverse Effect have (to the best of its knowledge and belief) been started or threatened against any of the Security Parties or
any other member of the Group.

 

	(n)	No
    breach of laws

 

None of the Security Parties
or any other member of the Group has breached any law or regulation which breach has or is reasonably likely to have a Material
Adverse Effect.

 

	(o)	Environmental
    laws

 

	 	(i)	Each of the Security Parties and each other member of the Group is in compliance with Clause 21.3 (Environmental compliance) and to the best of its knowledge and belief (having made due and careful enquiry) no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or is reasonably likely to have a Material Adverse Effect.
	 	 	 
	 	(ii)	No Environmental Claim has been commenced or (to the best of its knowledge and belief (having made due and careful enquiry)) is threatened against any of the Security Parties or any other member of the Group where that claim has or is reasonably likely, if determined against that Security Party or other member of the Group, to have a Material Adverse Effect.

 

	(p)	Taxation

 

	 	(i)	None of the Security Parties nor any other member of the Group is materially overdue in the filing of any Tax returns or is overdue in the payment of any amount in respect of Tax which may have a Material Adverse Effect.
	 	 	 
	 	(ii)	No claims or investigations are being, or are reasonably likely to be, made or conducted against any of the Security Parties or any other member of the Group with respect to Taxes such that a liability of, or claim against, any of the Security Parties or any other member of the Group which may have a Material Adverse Effect.
	 	 	 
	 	(iii)	Each of the Security Parties and each other member of the Group is resident for Tax purposes outside its Original Jurisdiction.

 

	(q)	Anti-corruption
    law

 

Each of the Security Parties
and each other member of the Group and each Affiliate of any of them has conducted its businesses in compliance with applicable
anti-corruption laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with
such laws.

 

	(r)	No
    Encumbrance or Financial Indebtedness

 

	 	(i)	No Encumbrance exists over all or any of the present or future assets of any of the Security Parties (other than the Borrower or the Manager).

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	 	(ii)	None of the Security Parties (other than the Borrower or the Manager) has any Financial Indebtedness outstanding other than as permitted by this Agreement.

 

	(s)	Pari
    passu ranking

 

The payment obligations of
each of the Security Parties under the Finance Documents to which it is a party rank at least pari passu with the claims of all
its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

 

	(t)	Disclosure
    of material facts

 

The Borrower is not aware
of any material facts or circumstances in relation to a Security Party which have not been disclosed to the Agent and which might,
if disclosed, have adversely affected the decision of a person considering whether or not to make loan facilities of the nature
contemplated by this Agreement available to the Borrower.

 

	(u)	Completeness
    of Relevant Documents

 

The copies of any Relevant
Documents provided or to be provided by the Borrower to the Agent in accordance with Clause 4 (Conditions of Utilisation)
are, or will be, true and accurate copies of the originals and represent, or will represent, the full agreement between the parties
to those Relevant Documents in relation to the subject matter of those Relevant Documents and there are no commissions, rebates,
premiums or other payments due or to become due in connection with the subject matter of those Relevant Documents other than in
the ordinary course of business or as disclosed to, and approved in writing by, the Agent.

 

	(v)	Money
    laundering

 

Any borrowing by the Borrower
under this Agreement, and the performance of its obligations under this Agreement and under the other Finance Documents, will be
for its own account and will not involve any breach by it of any law or regulatory measure relating to “money laundering”
as defined in Article 1 of the Directive (2005/EC/60) of the European Parliament and of the Council of the European Communities.

 

	(w)	Sanctions

 

	 	(i)	Each Security Party, each Affiliate of any of them or other member of the Group, their joint ventures, and their respective directors, officers, employees, agents or representatives has been and is in compliance with Sanctions Laws;
	 	 	 
	 	(ii)	No Security Party, nor any Affiliate of any of them or other member of the Group, their joint ventures, and their respective directors, officers, employees, agents or representatives:

 

	 	(A)	is a Restricted Party, or is involved in any transaction through which it is likely to become a Restricted Party; or
	 	 	 
	 	(B)	is subject to or involved in any inquiry, claim, action, suit, proceeding or investigation against it with respect to Sanctions Laws by any Sanctions Authority.

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	(x)	Ownership
    and control of Collateral Owners

 

Each Collateral Owner is
a wholly owned subsidiary of the Borrower and is controlled by the Borrower.

 

	18.2	Repetition

 

Each Repeating Representation
is deemed to be repeated by the Borrower by reference to the facts and circumstances then existing on the date of each Drawdown
Request, on each Drawdown Date, on the first day of each Interest Period and, in the case or those contained in Clauses 18.1(l)(iv)
and 18.1(l)(vi) (Financial statements) and for so long as any amount is outstanding under
the Finance Documents or any Commitment is in force, on each day.

 

	19	Information
    Undertakings

 

The undertakings in this
Clause 19 (Information Undertakings) remain in force for the duration of the Facility Period.

 

	19.1	Financial
    statements

 

The Borrower shall supply
to the Agent in sufficient copies for all of the Lenders:

 

	(a)	as soon as the same become available, but in any event within 150 days after the end of each of its financial years its audited consolidated financial statements for that financial year; and
	 	 
	(b)	as soon as the same become available, but in any event within 90 days after the end of each quarter during each of its financial years its unaudited consolidated quarterly financial statements for that quarter;
	 	 
	(c)	if requested by the Agent, as soon as the same become available, but in any event within 90 days after the end of each quarter during each of the Collateral Owner’s financial years, the unaudited financial statements of the Collateral Owners for that quarter; and
	 	 
	(d)	as soon as the same become available, but in any event within 30 days after the end of each semi-annual period ending on 30 June and 31 December in each calendar year, commencing from 31 December 2017, condensed cash flow statements of the Borrower for that semi-annual period.

 

	19.2	Compliance
    Certificate

 

	(a)	The Borrower shall supply to the Agent, with each set of its annual financial statements delivered pursuant to Clause 19.1(a) (Financial statements) and each set of its quarterly financial statements in respect of the financial quarters ending in June and December of each calendar year pursuant to Clause 19.1(b) (Financial statements), a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 20 (Financial Covenants) as at the date as at which those financial statements were drawn up.
	 	 
	(b)	Each Compliance Certificate shall be signed by two officers of the Borrower, one being the Chief Financial Officer.

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	19.3	Requirements
    as to financial statements

 

Each set of financial statements
delivered by the Borrower under Clause 19.1 (Financial statements):

 

	(a)	shall be certified by an officer of the relevant company as giving a true and fair view of (in the case of annual financial statements), or fairly representing (in other cases), its financial condition as at the date as at which those financial statements were drawn up; and
	 	 
	(b)	shall be prepared using GAAP, accounting practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements unless, in relation to any set of financial statements, it notifies the Agent that there has been a change in GAAP, the accounting practices or reference periods and its auditors deliver to the Agent:

 

	 	(i)	a description of any change necessary for those financial statements to reflect the GAAP, accounting practices and reference periods upon which the Original Financial Statements were prepared; and
	 	 	 
	 	(ii)	sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Agent to determine whether Clause 20 (Financial Covenants) has been complied with and make an accurate comparison between the financial position indicated in those financial statements and the Original Financial Statements.

 

Any reference in this Agreement
to those financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis
upon which the Original Financial Statements were prepared.

 

	19.4	Information:
    miscellaneous

 

The Borrower shall supply
to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):

 

	(a)	promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any Security Party, and which, if adversely determined, are reasonably likely to have a Material Adverse Effect;
	 	 
	(b)	promptly, such information as the Security Agent may reasonably require about the Charged Property and compliance of the Security Parties with the terms of any Security Documents including without limitation cash flow analyses and details of the operating costs of the Vessels;
	 	 
	(c)	promptly on request, such further information regarding the financial condition, assets and operations of any Security Party (including any requested amplification or explanation of any item in the financial statements, budgets or other material provided by any Security Party under this Agreement as any Finance Party through the Agent may reasonably request);
	 	 
	(d)	promptly upon becoming aware of them, the details of any inquiry, claim, action, suit, proceeding or investigation pursuant to Sanctions Laws by any Sanctions Authority against it, any of its direct or indirect owners, Subsidiaries or other member of the Group, any of their joint ventures or any of their respective directors, officers, employees, agents or representatives, as well as information on what steps are being taken with regards to answer or oppose such; and

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	(e)	promptly upon becoming aware that it, any of its direct or indirect owners, Subsidiaries or other member of the Group, any of their joint ventures or any of their respective directors, officers, employees, agents or representatives has become or is likely to become a Restricted Party.

 

	19.5	Notification
    of default

 

The Borrower shall notify
the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence.

 

	19.6	“Know
    your customer” checks

 

	(a)	If:

 

	 	(i)	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;
	 	 	 
	 	(ii)	any change in the status of a Security Party after the date of this Agreement; or
	 	 	 
	 	(iii)	an assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

 

obliges the Agent or any
Lender (or, in the case of Clause 19.6(a)(iii), any prospective new Lender) to comply with “know
your customer” or similar identification procedures in circumstances where the necessary information is not already available
to it, the Borrower shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation
and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or,
in the case of the event described in Clause 19.6(a)(iii), on behalf of any prospective new Lender)
in order for the Agent, such Lender or, in the case of the event described in Clause 19.6(a)(iii),
any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

 

	(b)	Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.
	 	 
	19.7	Provision
    of information

 

The Borrower undertakes promptly
to supply the Agent with such information concerning each Vessel’s condition, location and employment as the Agent may reasonably
require.

 

	20	Financial
    Covenants

 

The Borrower shall on a consolidated
basis comply with the following financial covenants to be assessed on a semi-annual basis based on the Accounting Information received
by the Lender in accordance with Clauses 19.1 (Financial statements):

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	20.1	Consolidated
    Group Leverage

 

The Consolidated Group Leverage
shall be not more than eighty five per cent. (85%).

 

	20.2	EBITDA
    to Interest Expense

 

The ratio of EBITDA to Interest
Expense on a trailing twelve (12) month’s basis shall not at any time be less than 2:1, unless the Borrower pledges cash,
equivalent to the amount that would be required to restore the accrued shortfall in the said ratio, for the benefit of the Group’s
respective lenders (whether under this Facility Agreement or under other similar financial arrangements) at respective bank accounts,
as each such lender designates, proportionately to each Group lender’s participation in the Group’s total outstanding
indebtedness.

 

	20.3	Net
    Worth

 

The Net
Worth shall not be less than one hundred and fifty million dollars ($150,000,000).

 

	21	General
    Undertakings

 

The undertakings in this
Clause 21 (General Undertakings) remain in force for the duration of the Facility Period.

 

	21.1	Authorisations

 

The Borrower shall promptly:

 

	(a)	obtain, comply with and do all that is necessary to maintain in full force and effect; and
	 	 
	(b)	supply certified copies to the Agent of,

 

any Authorisation required
under any law or regulation of a Relevant Jurisdiction to:

 

	 	(i)	enable any Security Party to perform its obligations under the Finance Documents to which it is a party;
	 	 	 
	 	(ii)	ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document; and
	 	 	 
	 	(iii)	enable any Security Party to carry on its business where failure to do so has or is reasonably likely to have a Material Adverse Effect.

 

	21.2	Compliance
    with laws

 

	(a)	The Borrower shall comply (and shall procure that each other Security Party and each Affiliate of any of them shall comply), in all respects with all laws.

 

In this Clause 21.1 (Authorisations),
“laws” means any law, statute, treaty, convention, regulation, instrument or other subordinate legislation or
other legislative or quasi-legislative rule or measure, or any order or decree of any government, judicial or public or other body
or authority, or any directive, code of practice, circular, guidance note or other direction issued by any competent authority
or agency (whether or not having the force of law).

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	(b)	The Borrower shall comply (and shall procure that each other Security Party, each other member of the Group and each Affiliate of any of them shall comply) in all respects with all Sanctions Laws.

 

	21.3	Environmental
    compliance

 

The Borrower shall procure
that that each Collateral Owner and the Managers shall:

 

	(a)	comply with all Environmental Laws;
	 	 
	(b)	obtain, maintain and ensure compliance with all requisite Environmental Approvals; and
	 	 
	(c)	implement procedures to monitor compliance with and to prevent liability under any Environmental Law,

 

where failure to do so has
or is reasonably likely to have a Material Adverse Effect.

 

	21.4	Environmental
    Claims

 

The Borrower shall, and shall
procure that each of the Collateral Owners and the Managers shall, promptly upon becoming aware of the same, inform the Agent in
writing of:

 

	(a)	any Environmental Claim against any of the Security Parties which is current, pending or threatened; and
	 	 
	(b)	any facts or circumstances which are reasonably likely to result in any Environmental Claim being commenced or threatened against any of the Security Parties,

 

where the claim, if determined
against that Security Party, has or is reasonably likely to have a Material Adverse Effect.

 

		21.5	Anti-corruption
                                                                                                                           law

 

	(a)	The Borrower shall not (and shall procure that no other Security Party will) directly or indirectly use the proceeds of the Loan for any purpose which would breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other similar legislation in other jurisdictions.
	 	 
	(b)	The Borrower shall (and shall procure that each other Security Party shall):

 

	 	(i)	conduct its businesses in compliance with applicable anti-corruption laws; and
	 	 	 
	 	(ii)	maintain policies and procedures designed to promote and achieve compliance with such laws.

 

	21.6	Taxation
	 	 
	(a)	The Borrower shall (and shall procure that each other Security Party shall) pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

 

	 	(i)	such payment is being contested in good faith;

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	 	(ii)	adequate reserves are being maintained for those Taxes and the costs required to contest them which have been disclosed in its latest financial statements delivered to the Agent under Clause 19.1 (Financial statements); and
	 	 	 
	 	(iii)	such payment can be lawfully withheld.

 

	(b)	The Borrower may not (and no other Security Party may) change its residence for Tax purposes.

 

	21.7	Evidence
    of good standing

 

The Borrower will from time
to time if requested by the Agent provide the Agent with evidence in form and substance satisfactory to the Agent that the Borrower
and each of the Collateral Owners remain in good standing.

 

	21.8	Pari
    passu ranking

 

The Borrower shall ensure
that at all times any unsecured and unsubordinated claims of a Finance Party against it under the Finance Documents rank at least
pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are
mandatorily preferred by laws of general application to companies.

 

	21.9	Negative
    pledge

 

In this Clause 21.9 (Negative
pledge) “Quasi-Security” means an arrangement or transaction described in Clause 21.9(b).

 

Except as permitted under
Clause 21.9(c):

 

	(a)	The Borrower shall procure that no Collateral Owner will create nor permit to subsist any Encumbrance over any of its present or future assets
	 	 
	(b)	The Borrower shall procure that no Collateral Owner will:

 

	 	(i)	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by a Security Party;
	 	 	 
	 	(ii)	sell, transfer or otherwise dispose of any of its receivables on recourse terms;
	 	 	 
	 	(iii)	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or
	 	 	 
	 	(iv)	enter into any other preferential arrangement having a similar effect,
	 	 	 

in circumstances where the
arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition
of an asset.

 

	(c)	Clauses 21.9(a) and 21.9(b) do not apply to any Encumbrance or (as the case may be) Quasi-Security, which is a Permitted Encumbrance or a Permitted Transaction.

 

	21.10	Disposals
	 	 
	(a)	Except as permitted under Clause 21.10(a), or for the sale of a Vessel provided the relevant prepayment is made in accordance with Clause 7.4 (Mandatory prepayment on sale or Total Loss), the Borrower shall procure that no other Security Party (other than the Manager) will

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enter into
a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease,
transfer or otherwise dispose of any asset.

 

	(b)	Clause 21.10(a) does not apply to any sale, lease, transfer or other disposal which is a Permitted Disposal or a Permitted Transaction.

 

	21.11	Arm’s
    length basis

 

	(a)	Except as permitted under Clause 21.11(c), the Borrower shall not (and shall procure that no other Security Party will) enter into any transaction with any third party except on arm’s length terms and for full market value.
	 	 
	(b)	The Borrower shall not (and shall procure that no Collateral Owner will) enter into transactions that are not on arm’s length basis with any associated companies, unless any off-market terms agreed are to the benefit of the Borrower or the relevant Collateral Owner.
	 	 
	(c)	The following transactions shall not be a breach of this Clause 21.11 (Arm’s length basis):

 

	 	(i)	fees, costs and expenses payable under the Relevant Documents in the amounts set out in the Relevant Documents delivered to the Agent under Clause 4.1 (Initial conditions precedent) or agreed by the Agent; and
	 	 	 
	 	(ii)	any Permitted Transaction.

 

	21.12	Merger

 

The Borrower shall procure
that no other Security Party (other than the Manager) will enter into any amalgamation, demerger, merger, consolidation or corporate
reconstruction.

 

	21.13	Change
    of business

 

The Borrower shall not (and
shall procure that no other Security Party will) make any substantial change to its corporate structure or the general nature of
its business from that carried on at the date of this Agreement without the prior written consent of the Agent, such consent not
to be unreasonably withheld or delayed. Any investments in shipping assets other than bulk carriers will not be considered to be
a change of business for the purpose of this Clause.

 

	21.14	No
    other business

 

The Borrower shall procure
that no Collateral Owner will engage in any business other than the ownership, operation, chartering and management of its Vessel.

 

	21.15	No
    acquisitions

 

The Borrower shall procure
that no Collateral Owner will make any investment or acquire a company or any shares or securities or a business or undertaking
(or, in each case, any interest in any of them) or incorporate a company.

 

	21.16	No
    Joint Ventures

 

The Borrower shall procure
that no other Security Party will:

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	(a)	enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or
	 	 
	(b)	transfer any assets or lend to or guarantee or give an indemnity for or give security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

 

	21.17	No
    borrowings

 

The Borrower shall procure
that no Collateral Owner will incur or allow to remain outstanding any Financial Indebtedness, except for:

 

	(a)	the Loan;
	 	 
	(b)	any normal trade credits in the ordinary course of business and loans from shareholders and loans from other members of the Group, which are fully subordinated to the Loan and for such trade credits or loans there shall be no payment of principal or interest if an Event of Default has occurred and is continuing.

 

	21.18	No
    loans or credit

 

The Borrower shall procure
that no Collateral Owner will be a creditor in respect of any Financial Indebtedness unless it is a loan made in the ordinary course
of business in connection with the chartering, operation or repair of a Vessel.

 

	21.19	No
    guarantees or indemnities

 

The Borrower shall procure
that no Collateral Owner will incur or allow to remain outstanding any guarantee or provide any other form of financial support
in respect of any obligation of any person unless it is a Permitted Transaction.

 

	21.20	Inspection
    of records

 

The Borrower will permit
the inspection of its financial records and accounts from time to time by the Agent or its nominee.

 

	21.21	No
    change in Relevant Documents

 

The Borrower shall not (and
shall procure that no other Security Party will) materially amend, vary, novate, supplement, supersede, waive or terminate any
term of, any of the Relevant Documents which are not Finance Documents, or any other document delivered to the Agent pursuant to
Clause 4.1 (Initial conditions precedent) or Clause 4.2 (Further conditions precedent) or Clause 4.3
(Conditions subsequent).

 

In this Clause 21 (No
change in Relevant Documents), “materially” means any change, variation or modification relating to the purchase
price, payment terms, date of delivery and/or the identity of the vessel, the type of vessel or the vessel’s characteristics.

 

	21.22	Further
    assurance
	 	 
	(a)	The Borrower shall (and shall procure that each other Security Party shall) promptly do all such acts or execute all such documents (including assignments, transfers, mortgages, charges, 

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notices
and instructions) as the Security Agent may reasonably specify (and in such form as the Security Agent may reasonably require in
favour of the Security Agent or its nominee(s)):

 

	 	(i)	to perfect any Encumbrance created or intended to be created under or evidenced by the Security Documents (which may include the execution of a mortgage, charge, assignment or other Encumbrance over all or any of the assets which are, or are intended to be, the subject of the Security Documents) or for the exercise of any rights, powers and remedies of the Security Agent or the Finance Parties provided by or pursuant to the Finance Documents or by law;
	 	 	 
	 	(ii)	to confer on the Security Agent or confer on the Finance Parties an Encumbrance over any property and assets of the Borrower (or that other Security Party as the case may be) located in any jurisdiction equivalent or similar to the Encumbrance intended to be conferred by or pursuant to the Security Documents; and/or
	 	 	 
	 	(iii)	to facilitate the realisation of the assets which are, or are intended to be, the subject of the Security Documents.

 

	(b)	The Borrower shall (and shall procure that each other Security Party shall) take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Encumbrance conferred or intended to be conferred on the Security Agent or the Finance Parties by or pursuant to the Finance Documents.

 

	21.23	No
    dealings with Master Agreement

 

The Borrower shall not assign,
novate or encumber or in any other way transfer any of its rights or obligations under the Master Agreement, nor enter into any
interest rate exchange or hedging agreement with anyone other than the Swap Provider.

 

	21.24	Liquidity

 

The Borrower shall procure
that each Collateral Owner will throughout the Facility Period maintain in its Earnings Account at all times a minimum positive
account balance free of any Encumbrances (other than in favour of the Security Agent) of not less than one hundred and fifty thousand
dollars ($150,000).

 

	21.25	Subordination
    of shareholder loans

 

The Borrower shall procure
that each Collateral Owner shall subordinate any shareholder loans or inter-company borrowings to the Indebtedness.

 

	21.26	No
    Subsidiaries

 

The Borrower shall procure
that no Collateral Owner shall form or acquire any other Subsidiaries than those known to the Agent prior to the Effective Date.

 

	21.27	No
    transfer of shares

 

The Borrower shall procure
that no Collateral Owner shall transfer any of its shares to another person or corporate entity (other than an entity wholly owned
by the Borrower) and shall not create any Encumbrances on such shares.

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	21.28	Ownership
    of Collateral Owners

 

The Borrower shall procure
that:

 

	(a)	each Collateral Owner shall remain a wholly owned direct or indirect Subsidiary of the Borrower; and
	 	 
	(b)	there shall be no change in the legal ownership and control of a Collateral Owner (which change would result in that Collateral Owner ceasing to be a wholly owned direct or indirect Subsidiary of the Borrower) or the beneficial ownership and control of the Managers without the prior written consent of the Agent such consent not to be unreasonably withheld or delayed.

 

	21.29	Master
    Agreement

 

The Borrower shall give the
Swap Provider at all times throughout the Facility Period, the right of first refusal to enter into one or more hedging of interest
rate risk of the Loan or other derivative products on competitive terms.

 

	21.30	Use
    of proceeds

 

The Borrower shall ensure
that no proceeds of the Loan (or any part thereof) are made available directly or indirectly, to or for the benefit of a Restricted
Party nor shall they otherwise be applied in a manner or for a purpose prohibited by Sanctions Laws.

 

	21.31	Sanctions

 

The Borrower shall ensure
that no Security Party or Affiliate of any of them or other member of the Group, respective directors, officers, employees, agents
or representatives or any other persons acting on any of their behalf becomes a Restricted Party.

 

	21.32	Stock
    exchange requirements

 

At all times when the Borrower’s
shares are quoted on the New York Stock Exchange or any other prime stock exchange acceptable to the Lenders, the Borrower shall
comply with all regulatory and listing requirements of such stock exchange.

 

	21.33	Dividends

 

The Borrower
shall not declare or pay any dividend or make any other form of distribution in respect of any financial year during the Facility
Period if:

 

	 	(a)	at the relevant time an Event of Default has occurred and remains continuing or would result from the making of such dividend or distribution; and
	 	 	 
	 	(b)	the Borrower cannot demonstrate compliance with the requirements of Clause 20 (Financial Covenants) both before and after the making of such dividend or distribution.

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	22	Events
    of Default
	 	 
	22.1	Events
    of Default

 

Each of the events or circumstances
set out in this Clause 22.1 (Events of Default) is an Event of Default.

 

	(a)	Non-payment

 

A Security Party does not
pay on the due date any amount payable by it under a Finance Document at the place at and in the currency in which it is expressed
to be payable unless payment is made within three days of its due date.

 

	(b)	Other
    specific obligations

 

	 	(i)	Any requirement of Clause 20 (Financial Covenants) is not satisfied.
	 	 	 
	 	(ii)	A Security Party does not comply with any obligation in a Finance Document relating to the Insurances, with Clause 17.10 (Additional security) and Clause 21.28 (Ownership of Collateral Owners)).

 

	(c)	Other
    obligations

 

A Security Party does not
comply with any provision of a Finance Document (other than those referred to in Clause 22.1(a)
(Non-payment) and Clause 22.1(b) (Other specific obligations)) and such non-compliance is not remedied within 15
Business Days of the Agent giving notice to the Borrower to this effect.

 

	(d)	Misrepresentation

 

Any representation or statement
made or deemed to be repeated by a Security Party in any Finance Document or any other document delivered by or on behalf of a
Security Party under or in connection with any Finance Document is or proves to have been incorrect or misleading when made or
deemed to be made.

 

	(e)	Cross
    default

 

Any Financial Indebtedness
of a Security Party or of any other member of the Group:

 

	 	(i)	is not paid when due nor within any originally applicable grace period; or
	 	 	 
	 	(ii)	is declared to be, or otherwise becomes, due and payable prior to its specified maturity as a result of an event of default (however described).

 

No Event of Default will
occur under this Clause 22.1(e) if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling
within (a) to (b) is less than five hundred thousand dollars ($500,000) in respect of a Collateral Owner or five million dollars
($5,000,000) in respect of the Borrower (or its equivalent in any other currency or currencies).

 

	(f)	Insolvency

 

	 	(i)	A Security Party is unable or admits inability to pay its debts as they fall due, is deemed to, or is declared to, be unable to pay its debts under applicable law, suspends or threatens to suspend making payments on any of its debts.

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	 	(ii)	The value of the assets of a Security Party is less than its liabilities (taking into account contingent and prospective liabilities).
	 	 	 
	 	(iii)	A moratorium is declared in respect of any indebtedness of a Security Party.

 

	(g)	Insolvency
    proceedings

 

Any corporate action, legal
proceedings or other procedure or step is taken for:

 

	 	(i)	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration, bankruptcy or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of a Security Party;
	 	 	 
	 	(ii)	a composition, compromise, assignment or arrangement with any creditor of a Security Party;
	 	 	 
	 	(iii)	the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager, or trustee or other similar officer in respect of a Security Party or any of its assets; or
	 	 	 
	 	(iv)	enforcement of any Encumbrance over a substantial portion of the Borrower’s assets which has not been remedied within 15 days,

 

or any analogous procedure
or step is taken in any jurisdiction.

 

This Clause 22.1(g) shall
not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within 60 days of commencement.

 

	(h)	Creditors’
    process

 

Any expropriation, attachment,
sequestration, distress or execution affects any asset or assets of a Security Party and is not discharged within 14 days.

 

	(i)	Unlawfulness
    and invalidity

 

	 	(i)	It is or becomes unlawful for a Security Party to perform any of its obligations under the Finance Documents or any Encumbrance created or expressed to be created or evidenced by the Security Documents ceases to be effective.
	 	 	 
	 	(ii)	Any obligation or obligations of any Security Party under any Finance Documents are not (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the Lenders under the Finance Documents.
	 	 	 
	 	(iii)	Any Finance Document ceases to be in full force and effect or any Encumbrance created or expressed to be created or evidenced by the Security Documents ceases to be legal, valid, binding, enforceable or effective or is alleged by a party to it (other than a Finance Party) to be ineffective.

 

	(j)	Cessation
    of business

 

A Security Party ceases,
or threatens to cease, to carry on all or a substantial part of its business.

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	(k)	Change
    in ownership or control of a Collateral Owner

 

There is any change in the
beneficial ownership or control of a Collateral Owner from that advised to the Agent by the Borrower at the date of this Agreement.

 

	(l)	Expropriation

 

The authority or ability
of a Security Party to conduct its business is limited or wholly or substantially curtailed by any seizure, expropriation, nationalisation,
intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person in
relation to a Security Party or any of its assets.

 

	(m)	Repudiation
    and rescission of agreements

 

	 	(i)	A Security Party rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or evidences an intention to rescind or repudiate a Finance Document.
	 	 	 
	 	(ii)	Subject to Clause 22.1(m)(iii), any party to any of the Relevant Documents that is not a Finance Document rescinds or purports to rescind or repudiates or purports to repudiate that Relevant Document in whole or in part where to do so has or is, in the reasonable opinion of the Majority Lenders, likely to have a material adverse effect on the interests of the Lenders under the Finance Documents.
	 	 	 
	 	(iii)	Any of the Management Agreements is terminated, cancelled or otherwise ceases to remain in full force and effect at any time prior to its contractual expiry date and is not immediately replaced by a similar agreement in form and substance satisfactory to the Majority Lenders.

 

	(n)	Conditions
    precedent and subsequent

 

Any of the conditions referred
to in Clauses 4.3 (Conditions subsequent), 4.4 (No waiver) (in the case where a
waiver has been provided pursuant to Clause 4.4 (No waiver) and is not satisfied within
the time specified in such waiver) is not satisfied within the time required by the relevant provisions thereof.

 

	(o)	Revocation
    or modification of Authorisation

 

Any Authorisation of any
governmental, judicial or other public body or authority which is now, or which at any time during the Facility Period becomes,
necessary to enable any of the Security Parties or any other person (except a Finance Party) to comply with any of their obligations
under any Finance Document is not obtained, is revoked, suspended, withdrawn or withheld, or is modified in a manner which the
Agent considers is, or may be, prejudicial to the interests of any Finance Party, or ceases to remain in full force and effect
unless a waiver has been obtained from a competent authority.

 

	(p)	Reduction
    of capital

 

A Security Party (other than
the Manager) reduces its authorised or issued or subscribed capital, save that the redemption of any redeemable shares, or the
buyback of any ordinary shares to preserve its due listing shall not constitute an Event of Default pursuant to this Clause 22
(Events of Default).

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	(q)	Loss
    of Vessel

 

A Vessel suffers a Total
Loss or is otherwise destroyed or abandoned, or a similar event occurs in relation to any other vessel which may from time to time
be mortgaged to the Security Agent as security for the payment of all or any part of the Indebtedness, except that a Total Loss
(which term shall for the purposes of the remainder of this Clause 22.1(q) include an event similar to a Total Loss in relation
to any other vessel) shall not be an Event of Default if:

 

	 	(i)	the relevant prepayment is made in accordance with Clause 7.4 (Mandatory prepayment on sale or Total Loss); or
	 	 	 
	 	(ii)	that Vessel or other vessel is insured in accordance with the Security Documents and a claim for Total Loss is available under the terms of the relevant insurances; and
	 	 	 
	 	(iii)	no insurer has refused to meet or has disputed the claim for Total Loss and it is not apparent to the Agent that any such refusal or dispute is likely to occur; and
	 	 	 
	 	(iv)	payment of all insurance proceeds in respect of the Total Loss is made in full to the Security Agent within 150 days of the occurrence of the casualty giving rise to the Total Loss in question or such longer period as the Agent may in its discretion agree.

 

	(r)	Challenge
    to registration

 

The registration of a Vessel
or the Mortgage is contested or becomes void or voidable or liable to cancellation or termination, or the validity or priority
of the Mortgage is contested.

 

	(s)	War

 

The country of registration
of a Vessel becomes involved in war (whether or not declared) or civil war or is occupied by any other power and the Agent in its
discretion considers that, as a result, the security conferred by any of the Security Documents is materially prejudiced.

 

	(t)	Notice
    of determination

 

A Guarantor gives notice
to the Security Agent to determine any obligations under the relevant Guarantee.

 

	(u)	Litigation

 

Any litigation, arbitration,
administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced against a Security Party
or its assets which have or are reasonably likely to have a Material Adverse Effect.

 

	(v)	Material
    adverse change

 

Any event or circumstance
occurs which the Majority Lenders reasonably believe has or is reasonably likely to have a Material Adverse Effect.

 

	(w)	Sanctions

 

	 	(i)	Any of the Security Parties or any Affiliate of any of them becomes a Restricted Party or becomes owned or controlled by, or acts directly or indirectly on behalf of, a

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	 	 	Restricted Party or any of
    such persons becomes the owner or controller of a Restricted Party.
	 	 	 
	 	(ii)	Any proceeds of the Loan are
    made available, directly or indirectly, to or for the benefit of a Restricted Party or otherwise is, directly or indirectly,
    applied in a manner or for a purpose prohibited under Sanctions Laws.
	 	 	 
	 	(iii)	Any of the Security Parties
    or any Affiliate of any of them is not in compliance with all Sanctions Laws.

 

	(x)	Arrest

 

Any arrest of a Vessel or
its detention in the exercise or the purported exercise of any lien or claim unless it is redelivered to the full control of the
relevant Collateral Owner within 30 Business Days of such arrest or detention.

 

	22.2	Acceleration

 

On and at any time after
the occurrence of an Event of Default which is continuing the Agent shall, if so directed by the Majority Lenders:

 

	(a)	by notice to the Borrower cancel the Total Commitments, at which time they shall immediately be cancelled;
	 	 
	(b)	by notice to the Borrower declare that the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents are immediately due and payable, at which time they shall become immediately due and payable;
	 	 
	(c)	by notice to the Borrower declare that the Loan is payable on demand, at which time it shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or
	 	 
	(d)	exercise or direct the Security Agent to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

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Section
9

Changes to Parties

 

		23	Changes to the Lenders

 

		23.1	Assignments and transfers by the Lenders

 

Subject to this Clause
23 (Changes to the Lenders), a Lender (the “Existing Lender”) may:

 

		(a)	assign any of its rights; or

 

		(b)	transfer by novation any of its rights and obligations,

 

under any Finance Document
to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the
purpose of making, purchasing or investing in loans, securities or other financial assets (the “New Lender”).

 

		23.2	Conditions of assignment or transfer

 

		(a)	No assignment or transfer in accordance with Clause 23.1 (Assignments and transfers by the Lenders)
can be made without the Borrower’s prior written consent unless it is:

 

		(i)	to an Affiliate of the Original Lender; or

 

		(ii)	to a bank or financial institution and is made 60 days after the occurrence of an Event of Default
which is continuing; or

 

		(iii)	to a trust or fund and is made 270 days after the occurrence of an Event of Default which is continuing.

 

		(b)	In the cases where the prior written consent of the Borrower is required for an assignment or transfer
under Clause 23.2(a), the consent of the Borrower must not be unreasonably withheld or delayed if such assignment or transfer is
to a bank or financial institution which has experience in providing financing to the shipping industry.

 

		(c)	An assignment will only be effective on:

 

		(i)	receipt by the Agent of written confirmation from the New Lender (in form and substance satisfactory
to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if
it was an Original Lender; and

 

		(ii)	performance by the Agent of all necessary “know your customer” or other similar checks
under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Agent shall
promptly notify to the Existing Lender and the New Lender.

 

		(d)	A transfer will only be effective if the procedure set out in Clause 23.5 (Procedure for transfer)
is complied with.

 

		(e)	If:

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		(i)	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes
its Facility Office; and

 

		(ii)	as a result of circumstances existing at the date the assignment, transfer or change occurs, the
Borrower would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12
(Tax Gross Up and Indemnities) or Clause 13 (Increased Costs),

 

then the New Lender or
Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the
Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had
not occurred. This Clause 23.2(e) shall not apply:

 

		(iii)	in relation to Clause 12.2 (Tax gross-up), to a Treaty Lender that has included a confirmation
of its scheme reference number and its jurisdiction of tax residence in accordance with Clause 12.2(f)(ii)(B) (Tax gross-up)
if the Borrower making the payment has not made a Borrower DTTP Filing in respect of that Treaty Lender.

 

		(f)	Each New Lender confirms, for the avoidance of doubt, that the Agent has authority to execute on
its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with
this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement
and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

 

		23.3	Assignment or transfer fee

 

Unless the Agent otherwise
agrees and excluding an assignment or transfer (i) to an Affiliate of a Lender, (ii) to a Related Fund or (iii) made in connection
with primary syndication of the Loan, the New Lender shall, on the date upon which an assignment or transfer takes effect, pay
to the Agent (for its own account) a fee of $3,000.

 

		23.4	Limitation of responsibility of Existing Lenders

 

		(a)	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty
and assumes no responsibility to a New Lender for:

 

		(i)	the legality, validity, effectiveness, adequacy or enforceability of the Relevant Documents or
any other documents;

 

		(ii)	the financial condition of any Security Party;

 

		(iii)	the performance and observance by any Security Party or any other member of the Group of its obligations
under the Relevant Documents or any other documents; or

 

		(iv)	the accuracy of any statements (whether written or oral) made in or in connection with any of the
Relevant Documents or any other document,

 

and any representations
or warranties implied by law are excluded.

 

		(b)	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

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		(i)	has made (and shall continue to make) its own independent investigation and assessment of the financial
condition and affairs of each Security Party and its related entities in connection with its participation in this Agreement and
has not relied exclusively on any information provided to it by the Existing Lender in connection with any of the Relevant Documents;
and

 

		(ii)	will continue to make its own independent appraisal of the creditworthiness of each Security Party
and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

 

		(c)	Nothing in any Finance Document obliges an Existing Lender to:

 

		(i)	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned
or transferred under this Clause 23 (Changes to the Lenders); or

 

		(ii)	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance
by any Security Party of its obligations under the Relevant Documents or otherwise.

 

		23.5	Procedure for transfer

 

		(a)	Subject to the conditions set out in Clause 23.2 (Conditions of assignment or transfer)
a transfer is effected in accordance with Clause 23.5(c) when the Agent executes an otherwise duly completed Transfer Certificate
delivered to it by the Existing Lender and the New Lender. The Agent shall, subject to Clause 23.2(c)(ii),
as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply
with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

 

		(b)	The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing
Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar
checks under all applicable laws and regulations in relation to the transfer to such New Lender.

 

		(c)	On the Transfer Date:

 

		(i)	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation
its rights and obligations under the Finance Documents the Borrower and the Existing Lender shall be released from further obligations
towards one another under the Finance Documents and their respective rights against one another shall be cancelled (being the “Discharged
Rights and Obligations”);

 

		(ii)	the Borrower and the New Lender shall assume obligations towards one another and/or acquire rights
against one another which differ from the Discharged Rights and Obligations only insofar as the Borrower and the New Lender have
assumed and/or acquired the same in place of the Borrower and the Existing Lender;

 

		(iii)	the Agent, the Security Agent, the Arranger, the New Lender and other Lenders shall acquire the
same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been
an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent
the Agent, the Security Agent, the Arranger and the Existing Lender shall each be released from further obligations to each other
under this Agreement; and

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		(iv)	the New Lender shall become a Party as a “Lender”.

 

		23.6	Procedure for assignment

 

		(a)	Subject to the conditions set out in Clause 23.2 (Conditions of assignment or transfer)
an assignment may be effected in accordance with Clause 23.6(c) when the Agent executes an otherwise duly completed Assignment
Agreement delivered to it by the Existing Lender and the New Lender. The Agent shall, subject to Clause 23.6(b),
as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply
with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

 

		(b)	The Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing
Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or similar checks
under all applicable laws and regulations in relation to the assignment to such New Lender.

 

		(c)	On the Transfer Date:

 

		(i)	the Existing Lender will assign absolutely to the New Lender its rights under the Finance Documents
and in respect of any Encumbrance created or expressed to be created or evidenced by the Security Documents and expressed to be
the subject of the assignment in the Assignment Agreement;

 

		(ii)	the Existing Lender will be released from the obligations (the “Relevant Obligations”)
expressed to be the subject of the release in the Assignment Agreement (and any corresponding obligations by which it is bound
in respect of any Encumbrance created or expressed to be created or evidenced by the Security Documents); and

 

		(iii)	the New Lender shall become a Party as a “Lender” and will be bound by obligations
equivalent to the Relevant Obligations.

 

		(d)	Lenders may utilise procedures other than those set out in this Clause 23.6 (Procedure for assignment)
to assign their rights under the Finance Documents (but not, without the consent of the relevant Security Party or unless in accordance
with Clause 23.5 (Procedure for transfer), to obtain a release by that Security Party from the obligations owed to that
Security Party by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with
the conditions set out in Clause 23.2 (Conditions of assignment or transfer).

 

		23.7	Copy of Transfer Certificate or Assignment Agreement to Borrower

 

The Agent shall, as soon
as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Borrower a copy
of that Transfer Certificate or Assignment Agreement.

 

		24	Changes to the Security Parties

 

		24.1	No assignment or transfer by Security Parties

 

No Security Party may assign
any of its rights or transfer any of its rights or obligations under the Finance Documents.

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Section
10

The Finance Parties

 

 

		25	Role of the Agent, the Security Agent and the Arranger

 

		25.1	Appointment of the Agent

 

		(a)	Each of the Arranger and the Lenders appoints the Agent to act as its agent under and in connection
with the Finance Documents and each of the Arranger, the Lenders and the Agent appoints the Security Agent to act as its security
agent for the purpose of the Security Documents.

 

		(b)	Each of the Arranger and the Lenders authorises the Agent and each of the Arranger, the Lenders
and the Agent authorises the Security Agent to perform the duties, obligations and responsibilities and to exercise the rights,
powers, authorities and discretions specifically given to the Agent or the Security Agent (as the case may be) under or in connection
with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

 

		(c)	The Swap Provider appoints the Security Agent to act as its security agent for the purpose of the
Security Documents and authorises the Security Agent to exercise the rights, powers, authorities and discretions specifically given
to the Security Agent under or in connection with the Security Documents together with any other incidental rights, powers, authorities
and discretions.

 

		(d)	Except in Clause 25.14 (Replacement of the Agent) or where the context otherwise requires,
references in this Clause 25 (Role of the Agent, the Security Agent and the Arranger) to the “Agent”
shall mean the Agent and the Security Agent individually and collectively and references in this Clause 25 (Role of the Agent,
the Security Agent and the Arranger) to the “Finance Documents” or to any “Finance Document”
shall not include the Master Agreement.

 

		25.2	Instructions

 

		(a)	The Agent shall:

 

		(i)	unless a contrary indication appears in a Finance Document, exercise or refrain from exercising
any right, power, authority or discretion vested in it as Agent in accordance with any instructions given to it by:

 

		(A)	all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and

 

		(B)	in all other cases, the Majority Lenders; and

 

		(ii)	not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with
Clause 25.2(a)(i).

 

		(b)	The Agent shall be entitled to request instructions, or clarification of any instruction, from
the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Lender or group of
Lenders, from that Lender or group of Lenders) as to whether, and in what manner, it should exercise or refrain from exercising
any right, power, authority or discretion and the Agent may refrain from acting unless and until it receives any such instructions
or clarification that it has requested.

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		(c)	Save in the case of decisions stipulated to be a matter for any other Lender or group of Lenders
under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the
Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all
Finance Parties save for the Security Agent.

 

		(d)	The Agent may refrain from acting in accordance with any instructions of any Lender or group of
Lenders until it has received any indemnification and/or security that it may in its discretion require (which may be greater in
extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which
it may incur in complying with those instructions.

 

		(e)	In the absence of instructions, the Agent may act (or refrain from acting) as it considers to be
in the best interest of the Lenders.

 

		(f)	The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s
consent) in any legal or arbitration proceedings relating to any Finance Document. This Clause 25.2(f)
shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the
Finance Documents or the enforcement of the Finance Documents.

 

		25.3	Duties of the Agent

 

		(a)	The Agent’s duties under the Finance Documents are solely mechanical and administrative in
nature.

 

		(b)	Subject to Clause 25.3(c), the Agent shall promptly forward to
a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party.

 

		(c)	Without prejudice to Clause 23.7 (Copy of Transfer Certificate
or Assignment Agreement to Borrower), Clause 25.3(a) shall not apply to any Transfer Certificate
or any Assignment Agreement.

 

		(d)	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review
or check the adequacy, accuracy or completeness of any document it forwards to another Party.

 

		(e)	If the Agent receives notice from a Party referring to this Agreement, describing a Default and
stating that the circumstance described is a Default, it shall promptly notify the Finance Parties.

 

		(f)	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee
payable to a Finance Party (other than the Agent, the Arranger or the Security Agent) under this Agreement it shall promptly notify
the other Finance Parties.

 

		(g)	The Agent shall have only those duties, obligations and responsibilities expressly specified in
the Finance Documents to which it is expressed to be a party (and no others shall be implied).

 

		25.4	Role of the Arranger

 

Except as specifically
provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any
Finance Document.

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		25.5	No fiduciary duties

 

		(a)	Subject to Clause 25.12 (Trust) which relates to the Security Agent only, nothing in any
Finance Document constitutes the Agent or the Arranger as a trustee or fiduciary of any other person.

 

		(b)	Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit
element of any sum received by it for its own account.

 

		25.6	Business with Security Parties

 

The Agent and the Arranger
may accept deposits from, lend money to and generally engage in any kind of banking or other business with the Borrower, any other
Security Party or its Affiliate.

 

		25.7	Rights and discretions of the Agent

 

		(a)	The Agent may:

 

		(i)	rely on any representation, communication, notice or document believed by it to be genuine, correct
and appropriately authorised;

 

		(ii)	assume that:

 

		(A)	any instructions received by it from the Majority Lenders, any Lenders or any group of Lenders
are duly given in accordance with the terms of the Finance Documents; and

 

		(B)	unless it has received notice of revocation, that those instructions have not been revoked; and

 

		(C)	rely on a certificate from any person:

 

		(1)	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge
of that person; or

 

		(2)	to the effect that such person approves of any particular dealing, transaction, step, action or
thing,

 

as sufficient evidence
that that is the case and, in the case of (A), may assume the truth and accuracy of that certificate.

 

		(b)	The Agent may assume (unless it has received notice to the contrary in its capacity as agent for
the Lenders or security agent for the Finance Parties (as the case may be)) that:

 

		(i)	no Default has occurred (unless it has actual knowledge of a Default arising under Clause 22.1
(Events of Default));

 

		(ii)	any right, power, authority or discretion vested in any Party or the Majority Lenders has not been
exercised; and

 

		(iii)	any notice or request made by the Borrower (other than a Drawdown Request) is made on behalf of
and with the consent and knowledge of all the Security Parties.

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		(c)	The Agent may engage and pay for the advice or services of any lawyers, accountants, surveyors
or other experts.

 

		(d)	Without prejudice to the generality of Clause 25.7(c) or Clause
25.7(e), the Agent may at any time engage and pay for the services of any lawyers to act as independent
counsel to the Agent (and so separate from any lawyers instructed by the Lenders) if the Agent in its reasonable opinion deems
this to be desirable.

 

		(e)	The Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors
or other professional advisers or experts (whether obtained by the Agent or by any other Party) and shall not be liable for any
damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.

 

		(f)	The Agent may act in relation to the Finance Documents through its officers, employees and agents
and the Agent shall not:

 

		(i)	be liable for any error of judgment made by any such person; or

 

		(ii)	be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct,
omission or default on the part, of any such person,

 

unless such error or such
loss was directly caused by the Agent’s gross negligence or wilful misconduct.

 

		(g)	Unless a Finance Document expressly provides otherwise the Agent may disclose to any other Party
any information it reasonably believes it has received as agent under this Agreement.

 

		(h)	Without prejudice to the generality of Clause 25.7(g), the Agent:

 

		(i)	may disclose; and

 

		(ii)	on the written request of the Borrower or the Majority Lenders shall, as soon as reasonably practicable,
disclose,

 

the identity of a Defaulting
Lender to the Borrower and to the other Finance Parties.

 

		(i)	Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent
nor the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of
any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

 

		(j)	The Agent is not obliged to disclose to any Finance Party any details of the rate notified to the
Agent by any Lender or the identity of any such Lender for the purpose of Clause 10.2(b) (Market
Disruption).

 

		(k)	Notwithstanding any provision of any Finance Document to the contrary, the Agent is not obliged
to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities
or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate
indemnity against, or security for, such risk or liability is not reasonably assured to it.

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		25.8	Responsibility for documentation

 

Neither the Agent nor the
Arranger is responsible or liable for:

 

		(a)	the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied
by the Agent, the Arranger, a Security Party or any other person given in or in connection with any Relevant Document or the transactions
contemplated in the Finance Documents; or

 

		(b)	the legality, validity, effectiveness, adequacy or enforceability of any Relevant Document or any
other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Relevant Document;
or

 

		(c)	any determination as to whether any information provided or to be provided to any Finance Party
is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing
or otherwise.

 

		25.9	No duty to monitor

 

The Agent shall not be
bound to enquire:

 

		(a)	whether or not any Default has occurred;

 

		(b)	as to the performance, default or any breach by any Party of its obligations under any Finance
Document; or

 

		(c)	whether any other event specified in any Finance Document has occurred.

 

		25.10	Exclusion of liability

 

		(a)	Without limiting Clause 25.10(b) (and without prejudice to any
other provision of any Finance Document excluding or limiting the liability of the Agent) the Agent shall not be liable (including,
without limitation, for negligence or any other category of liability whatsoever) for:

 

		(i)	any damages, costs or losses to any person, any diminution in value, or any liability whatsoever
arising as a result of taking or not taking any action under or in connection with any Finance Document or any Encumbrance created
or expressed to be created or evidenced by the Security Documents, unless caused by its gross negligence or wilful misconduct;

 

		(ii)	exercising, or not exercising, any right, power, authority or discretion given to it by, or in
connection with, any Finance Document, any Encumbrance created or expressed to be created or evidenced by the Security Documents
or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with,
any Finance Document or any Encumbrance created or expressed to be created or evidenced by the Security Documents;

 

		(iii)	any shortfall which arises on the enforcement or realisation of the Trust Property; or

 

		(iv)	without prejudice to the generality of Clauses 25.10(a)(i), 25.10(a)(ii)
and 25.10(a)(iii), any damages, costs or losses to any person, any diminution in value or any
liability whatsoever arising as a result of:

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		(A)	any act, event or circumstance not reasonably within its control; or

 

		(B)	the general risks of investment in, or the holding of assets in, any jurisdiction,

 

including (in each case
and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation,
expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions
affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure
or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God;
war, terrorism, insurrection or revolution; or strikes or industrial action.

 

		(b)	No Party (other than the Agent) may take any proceedings against any officer, employee or agent
of the Agent in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer,
employee or agent in relation to any Relevant Document and any officer, employee or agent of the Agent may rely on this Clause
subject to Clause 1.7 (Third party rights) and the provisions of the Third Parties Act.

 

		(c)	The Agent will not be liable for any delay (or any related consequences) in crediting an account
with an amount required under the Finance Documents to be paid by the Agent if the Agent has taken all necessary steps as soon
as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system
used by the Agent for that purpose.

 

		(d)	Nothing in this Agreement shall oblige the Agent or the Arranger to carry out:

 

		(i)	any “know your customer” or other checks in relation to any person;

 

		(ii)	any check on the extent to which any transaction contemplated by this Agreement might be unlawful
for any Lender,

 

on behalf of any Lender
and each Lender confirms to the Agent and the Arranger that it is solely responsible for any such checks it is required to carry
out and that it may not rely on any statement in relation to such checks made by the Agent or the Arranger.

 

		(e)	Without prejudice to any provision of any Finance Document excluding or limiting the
                                                             Agent’s liability, any liability of the Agent arising under or in connection with any Finance Document or any
                                                             Encumbrance created or expressed to be created
or evidenced by the Security Documents shall be limited to the amount of actual loss which has been finally judicially determined
to have been suffered (as determined by reference to the date of default of the Agent or, if later, the date on which the loss
arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent at any
time which increase the amount of that loss. In no event shall the Agent be liable for any loss of profits, goodwill, reputation,
business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Agent
has been advised of the possibility of such loss or damages.

 

		25.11	Lenders’ indemnity to the Agent

 

		(a)	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent and every Receiver and Delegate, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by any of them (otherwise than by

                                                                                

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	 	 	reason of the relevant Agent’s, Receiver’s or Delegate’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 28.12 (Disruption to payment systems etc.) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent, Receiver or Delegate under, or exercising any authority conferred under, the Finance Documents (unless the relevant Agent, Receiver or Delegate has been reimbursed by a Security Party pursuant to a Finance Document).

 

		(b)	Subject to Clause 25.11(c), the Borrower shall immediately on
demand reimburse any Lender for any payment that Lender makes to the Agent pursuant to Clause 25.11(a)

 

		(c)	Clause 25.11(b) shall not apply to the extent that the indemnity
payment in respect of which the Lender claims reimbursement relates to a liability of the Agent to a Security Party.

 

		25.12	Trust

 

The Security Agent agrees
and declares, and each of the other Finance Parties acknowledges, that, subject to the terms and conditions of this Clause 25.12
(Trust), the Security Agent holds the Trust Property on trust for the Finance Parties absolutely. Each of the other Finance
Parties agrees that the obligations, rights and benefits vested in the Security Agent shall be performed and exercised in accordance
with this Clause 25.12 (Trust). The Security Agent shall have the benefit of all of the provisions of this Agreement benefiting
it in its capacity as security agent for the Finance Parties, and all the powers and discretions conferred on trustees by the Trustee
Act 1925 (to the extent not inconsistent with this Agreement). In addition:

 

		(a)	the Security Agent and any Delegate may indemnify itself or himself out of the Trust Property against
all liabilities, costs, fees, damages, charges, losses and expenses sustained or incurred by it or him in relation to the taking
or holding of any of the Trust Property or in connection with the exercise or purported exercise of the rights, trusts, powers
and discretions vested in the Security Agent or any Delegate by or pursuant to the Security Documents or in respect of anything
else done or omitted to be done in any way relating to the Security Documents;

 

		(b)	the other Finance Parties acknowledge that the Security Agent shall be under no obligation to insure
any property nor to require any other person to insure any property and shall not be responsible for any loss which may be suffered
by any person as a result of the lack or insufficiency of any insurance;

 

		(c)	the Finance Parties agree that the perpetuity period applicable to the trusts declared by this
Agreement shall be the period of 125 years from the date of this Agreement;

 

		(d)	the Security Agent shall not be liable for any failure, omission, or defect in perfecting the security
constituted or created by any Finance Document including, without limitation, any failure to register the same in accordance with
the provisions of any of the documents of title of any Security Party to any of the assets thereby charged or effect or procure
registration of or otherwise protect the security created by any Security Document under any registration laws in any jurisdiction
and may accept without enquiry such title as any Security Party may have to any asset;

 

		(e)	the Security Agent shall not be under any obligation to hold any title deed, Finance Document or
any other documents in connection with the Finance Documents or any other documents in connection with the property charged by
any Finance Document or any other such security in its own possession or to take any steps to protect or preserve the same, and
may permit any 

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	 	 	Security Party to retain all such title deeds, Finance Documents and other documents in its possession; and
	 	 	 
		(f)	save as otherwise provided in the Finance Documents, all moneys which under the trusts therein
contained are received by the Security Agent may be invested in the name of or under the control of the Security Agent in any investment
for the time being authorised by English law for the investment by trustees of trust money or in any other investments which may
be selected by the Security Agent, and the same may be placed on deposit in the name of or under the control
of the Security Agent at such bank or institution (including the Security Agent) and upon such terms as the Security Agent may
think fit.

 

The provisions of Part
I of the Trustee Act 2000 shall not apply to the Security Agent or the Trust Property.

 

		25.13	Resignation of the Agent

 

		(a)	The Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom
as successor by giving 30 days’ prior written notice to the other Finance Parties and the Borrower.

 

		(b)	Alternatively the Agent may resign by giving 30 days’ prior written notice to the other Finance
Parties and the Borrower, in which case the Majority Lenders (after prior consultation and agreement with the Borrower) may appoint
a successor Agent.

 

		(c)	If the Majority Lenders have not appointed a successor Agent in accordance with Clause 25.13(a)
within 20 days after notice of resignation was given, the retiring Agent (after consultation with the Borrower) may appoint a successor
Agent (acting through an office in the United Kingdom).

 

		(d)	If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer
appropriate for it to remain as agent and the Agent is entitled to appoint a successor Agent under Clause 25.13(b),
the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent
to become a party to this Agreement as Agent) agree with the proposed successor Agent amendments to this Clause 25 (Role of
the Agent, the Security Agent and the Arranger) and any other term of this Agreement dealing with the rights or obligations
of the Agent consistent with then current market practice for the appointment and protection of corporate trustees together with
any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent’s
normal fee rates and those amendments will bind the Parties.

 

		(e)	The retiring Agent shall, make available to the successor Agent such documents and records and
provide such assistance as the successor Agent may reasonably request for the purposes of performing its functions as Agent under
the Finance Documents. The Borrower shall, within three Business Days of demand, reimburse the retiring Agent for the amount of
all costs and expenses (including legal fees) properly incurred by it in making available such documents and records and providing
such assistance.

 

		(f)	The Agent’s resignation notice shall only take effect upon the appointment of a successor
and (in the case of the Security Agent) the transfer of all the Trust Property to that successor.

 

		(g)	Upon the appointment of a successor,
the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations
under Clause 25.13(e)) but shall remain entitled to the benefit of Clause 14.3 (Indemnity
to the Agent) and

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	 	 	this Clause 25 (Role of the Agent, the Security
Agent and the Arranger) (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be
payable on) that date). Any successor and each of the other Parties shall have the same rights and obligations amongst themselves
as they would have had if such successor had been an original Party.
	 	 	 
		(h)	The Agent shall resign in accordance with Clause 25.13(a) (and,
to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to Clause 25.13(b))
if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Agent under
the Finance Documents, either:

 

		(i)	the Agent fails to respond to a request under Clause 12.8 (FATCA information) and the Borrower
or a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA
Application Date;

 

		(ii)	the information supplied by the Agent pursuant to Clause 12.8 (FATCA information) indicates
that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

 

		(iii)	the Agent notifies the Borrower and the Lenders that the Agent will not be (or will have ceased
to be) a FATCA Exempt Party on or after that FATCA Application Date;

 

and (in each case) the
Borrower or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if
the Agent were a FATCA Exempt Party, and the Borrower or that Lender, by notice to the Agent, requires it to resign.

 

		25.14	Replacement of the Agent

 

		(a)	After consultation with the Borrower, the Majority Lenders may, by giving 30 days’ notice
to the Agent (or, at any time the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority lenders)
replace the Agent by appointing a successor Agent (acting through an office in the United Kingdom).

 

		(b)	The retiring Agent shall (at its own cost if it is an Impaired Agent and otherwise at the expense
of the Lenders) make available to the successor Agent such documents and records and provide such assistance as the successor Agent
may reasonably request for the purposes of performing its function as Agent under the Finance Documents.

 

		(c)	The appointment of the successor Agent shall take effect on the date specified in the notice from
the Majority Lenders to the retiring Agent. As from this date, the retiring Agent shall be discharged from any further obligation
in respect of the Finance Documents (other than its obligations under Clause 25.14(b)) but shall
remain entitled to the benefit of Clause 14.3 (Indemnity to the Agent) and this Clause 25 (Role of the Agent, the Security
Agent and the Arranger) (and any agency fees for the account of the retiring Agent shall cease to accrue from (and shall be
payable on) that date).

 

		(d)	Any successor Agent and each of the other Parties shall have the same rights and obligations amongst
themselves as they would have had if such successor had been an original Party.

 

		25.15	Confidentiality

 

		(a)	In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency
division which shall be treated as a separate entity from any other of its divisions or departments.

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		(b)	If information is received by another division or department of the Agent, it may be treated as
confidential to that division or department and the Agent shall not be deemed to have notice of it.

 

		25.16	Relationship with the Lenders

 

		(a)	The Agent may treat the person shown in its records as Lender at the opening of business (in the
place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through
its Facility Office:

 

		(i)	entitled to or liable for any payment due under any Finance Document on that day; and

 

		(ii)	entitled to receive and act upon any notice, request, document or communication or make any decision
or determination under any Finance Document made or delivered on that day,

 

unless it has received
not less than five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

 

		(b)	Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications,
information and documents to be made or dispatched to that Lender under the Finance Documents. Such notice shall contain the address,
fax number and (where communication by electronic mail or other electronic means is permitted under Clause 30.6 (Electronic
communication)) electronic mail address and/or any other information required to enable the sending and receipt of information
by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated
as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes
of Clause 30.2 (Addresses) and Clause 30.6(a)(ii) (Electronic communication) and
the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information
and documents as though that person were that Lender.

 

		25.17	Credit appraisal by the Lenders

 

Without affecting the responsibility
of any Security Party for information supplied by it or on its behalf in connection with any Relevant Document, each Lender confirms
to the Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal
and investigation of all risks arising under or in connection with any Relevant Document including but not limited to:

 

		(a)	the financial condition, status and nature of each Security Party and each other member of the
Group;

 

		(b)	the legality, validity, effectiveness, adequacy or enforceability of any Relevant Document and
any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any
Relevant Document;

 

		(c)	whether that Lender has recourse, and the nature and extent of that recourse, against any Party
or any of its respective assets under or in connection with any Relevant Document, the transactions contemplated by the Relevant
Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of under or in connection
with any Relevant Document;

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		(d)	the right or title of any person in or to, or the value or sufficiency of any part of the Charged
Property, the priority of any Encumbrance created or expressed to be created or evidenced by the Security Documents or the existence
of any Encumbrance affecting the Charged Property.

 

		25.18	Reference Banks

 

If a Reference Bank (or,
if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (in consultation
with the Borrower) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

 

		25.19	Deduction from amounts payable by the Agent

 

If any Party owes an amount
to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that
amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply
the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be
regarded as having received any amount so deducted.

 

		26	Conduct of Business by the Finance Parties

 

No provision of this Agreement
will:

 

		(a)	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever
manner it thinks fit;

 

		(b)	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available
to it or the extent, order and manner of any claim; or

 

		(c)	other than where expressly provided for, oblige any Finance Party to disclose any information relating
to its affairs (tax or otherwise) or any computations in respect of Tax.

 

		27	Sharing among the Finance Parties

 

		27.1	Payments to Finance Parties

 

If a Finance Party (a “Recovering
Finance Party”) receives or recovers any amount from a Security Party other than in accordance with Clause 28 (Payment
Mechanics) (a “Recovered Amount”) and applies that amount to a payment due under the Finance Documents then:

 

		(a)	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or
recovery, to the Agent;

 

		(b)	the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering
Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance
with Clause 28 (Payment Mechanics), without taking account of any Tax which would be imposed on the Agent in relation to
the receipt, recovery or distribution; and

 

		(c)	the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the
Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Agent determines
may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 28.6 (Partial
payments).

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		27.2	Redistribution of payments

 

The Agent shall treat the
Sharing Payment as if it had been paid by the relevant Security Party and distribute it between the Finance Parties (other than
the Recovering Finance Party) (the “Sharing Finance Parties”) in accordance with Clause 28.6 (Partial payments)
towards the obligations of that Security Party to the Sharing Finance Parties.

 

		27.3	Recovering Finance Party’s rights

 

On a distribution by the
Agent under Clause 27.2 (Redistribution of payments) of a payment received by a Recovering
Finance Party from a Security Party, as between the relevant Security Party and the Recovering

Finance Party, an amount
of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Security Party.

 

		27.4	Reversal of redistribution

 

If any part of the Sharing
Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

 

		(a)	each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of
that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount
as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that
Recovering Finance Party is required to pay) (the “Redistributed Amount”); and

 

		(b)	as between the relevant Security Party and each relevant Sharing Finance Party, an amount equal
to the relevant Redistributed Amount will be treated as not having been paid by that Security Party.

 

		27.5	Exceptions

 

		(a)	This Clause 27 (Sharing among the Finance Parties) shall not apply to the extent that the
Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against
the relevant Security Party.

 

		(b)	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which
the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

 

		(i)	it notified that other Finance Party of the legal or arbitration proceedings; and

 

		(ii)	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings
but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

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Section
11

Administration

 

		28	Payment Mechanics

 

		28.1	Payments to the Agent

 

On each date on which a
Security Party or a Lender is required to make a payment under a Finance Document, that Security Party or that Lender shall make
the same available to the Agent for value on the due date at the time and in such funds specified by the Agent as being customary
at the time for settlement of transactions in the relevant currency in the place of payment.

 

Payment shall be made to
such account in the principal financial centre of the country of that currency with such bank as the Agent specifies.

 

		28.2	Distributions by the Agent

 

Each payment received by
the Agent under the Finance Documents for another Party shall, subject to Clause 28.3 (Distributions
to a Security Party) and Clause 28.4 (Clawback and pre-funding) be made available by the Agent as soon as practicable
after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account
of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days’ notice
with a bank specified by that Party in the principal financial centre of the country of that currency.

 

		28.3	Distributions to a Security Party

 

The Agent may (with the
consent of a Security Party or in accordance with Clause 29 (Set-Off)) apply any amount received by it for that Security
Party in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Security Party under
the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

 

		28.4	Clawback and pre-funding

 

		(a)	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent
is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been
able to establish to its satisfaction that it has actually received that sum.

 

		(b)	Unless Clause 28.4(c) applies, if the Agent pays an amount to another Party and it proves to be
the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related
exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from
the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

 

		(c)	If the Agent has notified the Lenders that it is willing to make available amounts for the account
of the Borrower before receiving funds from the Lenders then if and to the extent that the Agent does so but it proves to be the
case that it does not then receive funds from a Lender in respect of a sum which it paid to the Borrower:

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		(i)	the Agent shall notify the Borrower of that Lender’s identity and the Borrower shall on demand
refund it to the Agent; and

 

		(ii)	the Lender by whom those funds should have been made available or, if that Lender fails to do so,
the Borrower, shall on demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any
funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

 

		28.5	Impaired Agent

 

		(a)	If, at any time, the Agent becomes an Impaired Agent, a Security Party or a Lender which is required
to make a payment under the Finance Documents to the Agent in accordance with Clause 28.1 (Payments
to the Agent) may instead either:

 

		(i)	pay that amount direct to the required recipient(s); or

 

		(ii)	if in its absolute discretion it considers that it is not reasonably practicable to pay that amount
direct to the required recipient(s), pay that amount or the relevant part of that amount to an interest-bearing account held with
an Acceptable Bank in relation to which no Insolvency Event has occurred and is continuing, in the name of the Security Party or
the Lender making the payment (the “Paying Party”) and designated as a trust account for the benefit of the
Party or Parties beneficially entitled to that payment under the Finance Documents (the “Recipient Party” or
“Recipient Parties”).

 

In each case such payments
must be made on the due date for payment under the Finance Documents.

 

		(b)	All interest accrued on the amount standing to the credit of the trust account shall be for the
benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements.

 

		(c)	A Party which has made a payment in accordance with this Clause 28.5 (Impaired Agent) shall
be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to
the amounts standing to the credit of the trust account.

 

		(d)	Promptly upon the appointment of a successor Agent in accordance with Clause 25.14 (Replacement
of the Agent), each Paying Party shall (other than to the extent that that Party has given an instruction pursuant to Clause
28.5(e)) give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with
any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance
with Clause 28.2 (Distributions by the Agent).

 

		(e)	A Paying Party shall, promptly upon request by a Recipient Party and to the extent:

 

		(i)	that it has not given an instruction pursuant to Clause 28.5(d);
and

 

		(ii)	that it has been provided with the necessary information by that Recipient Party,

 

give all requisite instructions
to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient
Party.

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		28.6	Partial payments

 

		(a)	If the Agent receives a payment that is insufficient to discharge all the amounts then due and
payable by a Security Party under the Finance Documents, the Agent shall apply that payment towards the obligations of that Security
Party under the Finance Documents in the following order:

 

		(i)	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent or the
Security Agent under the Finance Documents;

 

		(ii)	secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid
under this Agreement;

 

		(iii)	thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and

 

		(iv)	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

 

		(b)	The Agent shall, if so directed by the Majority Lenders, vary the order set out in Clauses 28.6(a)(ii)
to 28.6(a)(iv).

 

		(c)	Clauses 28.6(a) and 28.6(b) will override any appropriation made
by a Security Party.

 

		28.7	No set-off by Security Parties

 

All payments to be made
by a Security Party under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for)
set-off or counterclaim.

 

		28.8	Business Days

 

Any payment which is due
to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one)
or the preceding Business Day (if there is not).

 

During any extension of
the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum
at the rate payable on the original due date.

 

		28.9	Currency of account

 

		(a)	Subject to Clauses 28.9(b) to 28.9(e),
dollars is the currency of account and payment for any sum due from a Security Party under any Finance Document.

 

		(b)	A repayment or payment of all or part of a Loan or an Unpaid Sum shall be made in the currency
in which that Loan or Unpaid Sum is denominated on its due date.

 

		(c)	Each payment of interest shall be made in the currency in which the sum in respect of which the
interest is payable was denominated when that interest accrued.

 

		(d)	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the
costs, expenses or Taxes are incurred.

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		(e)	Any amount expressed to be payable in a currency other than dollars shall be paid in that other
currency.

 

		28.10	Control account

 

The Agent shall open and
maintain on its books a control account in the name of the Borrower showing the advance of the Loan and the computation and payment
of interest and all other sums due under this Agreement. The Borrower’s obligations to repay the Loan and to pay interest
and all other sums due under this Agreement shall be evidenced by the entries from time to time made in the control account opened
and maintained under this Clause 28.10 (Control account) and those entries will, in the absence
of error, be conclusive and binding.

 

		28.11	Change of currency

 

		(a)	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same
time recognised by the central bank of any country as the lawful currency of that country, then:

 

		(i)	any reference in the Finance Documents to, and any obligations arising under the Finance Documents
in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated
by the Agent (after consultation with the Borrower); and

 

		(ii)	any translation from one currency or currency unit to another shall be at the official rate of
exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down
by the Agent (acting reasonably).

 

		(b)	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting
reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally accepted
conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

 

		28.12	Disruption to payment systems etc.

 

If either the Agent determines
in its discretion that a Disruption Event has occurred or the Agent is notified by the Borrower that a Disruption Event has occurred:

 

		(a)	the Agent may, and shall if requested to do so by the Borrower, consult with the Borrower with
a view to agreeing with the Borrower such changes to the operation or administration of the Loan as the Agent may deem necessary
in the circumstances;

 

		(b)	the Agent shall not be obliged to consult with the Borrower in relation to any changes mentioned
in Clause 28.12(a) if, in its opinion, it is not practicable to do so in the circumstances and,
in any event, shall have no obligation to agree to any such changes;

 

		(c)	the Agent may consult with the Finance Parties in relation to any changes mentioned in Clause 28.12(a)
but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

 

		(d)	any such changes agreed upon by the Agent and the Borrower shall (whether or not it is finally
determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver
of) the terms of the Finance Documents notwithstanding the provisions of Clause 34 (Amendments and Waivers);

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		(e)	the Agent shall not be liable for any damages, costs or losses whatsoever (including, without limitation,
for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of
the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 28.12
(Disruption to payment systems etc.); and

 

		(f)	the Agent shall notify the Finance Parties of all changes agreed pursuant to Clause 28.12(d)

 

		29	Set-Off

 

		29.1	Set-off

 

A Finance Party may,
while an Event of Default is continuing, set off any matured obligation due from a Security Party under the Finance Documents
(to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that
Security Party, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are
in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of
business for the purpose of the set-off.

 

		29.2	Master Agreement rights

 

The rights conferred on
the Swap Provider by this Clause 29 (Set-Off) shall be in addition to, and without prejudice to or limitation of, the rights
of netting and set off conferred on the Swap Provider by the Master Agreement.

 

		30	Notices

 

		30.1	Communications in writing

 

Any communication to be
made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax
or letter.

 

		30.2	Addresses

 

The address and fax number
(and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication
or document to be made or delivered under or in connection with the Finance Documents is:

 

		(a)	in the case of the Borrower, that identified with its name below;

 

		(b)	in the case of each Lender, that notified in writing to the Agent on or prior to the date on which
it becomes a Party;

 

		(c)	in the case of the Swap Provider, that identified with its name below; and

 

		(d)	in the case of the Agent or the Security Agent, that identified with its name below,

 

or any substitute address,
fax number, or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change
is made by the Agent) by not less than five Business Days’ notice.

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		30.3	Delivery

 

Any communication or document
made or delivered by one Party to another under or in connection with the Finance Documents will only be effective:

 

		(a)	if by way of fax, when received in legible form; or

 

		(b)	if by way of letter, when it has been left at the relevant address or five Business Days after
being deposited in the post postage prepaid in an envelope addressed to it at that address;

 

and, if a particular department
or officer is specified as part of its address details provided under Clause 30.2 (Addresses), if addressed to that department
or officer.

 

Any communication or document
to be made or delivered to the Agent or the Security Agent will be effective only when actually received by the Agent or the Security
Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent’s
or the Security Agent’s signature below (or any substitute department or officer as the Agent or the Security Agent shall
specify for this purpose).

 

All notices from or to
a Security Party (save in respect of the Master Agreement) shall be sent through the Agent.

 

Any communication or document
which becomes effective, in accordance with this Clause 30.3 (Delivery), after 5.00 p.m. in the place of receipt shall be
deemed only to become effective on the following day.

 

		30.4	Notification of address and fax number

 

Promptly upon changing
its address or fax number, the Agent shall notify the other Parties.

 

		30.5	Communication when Agent is Impaired Agent

 

If the Agent is an
Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other
directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications
to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to
or by the relevant Parties directly. This provision shall not operate after a replacement Agent has been appointed.

 

		30.6	Electronic communication

 

		(a)	Any communication to be made between any two Parties under or in connection with the Finance Documents
may be made by electronic mail or other electronic means to the extent that those two Parties agree that, unless and until notified
to the contrary, this is to be an accepted form of communication and if those two Parties:

 

		(i)	notify each other in writing of their electronic mail address and/or any other information required
to enable the sending and receipt of information by that means; and

 

		(ii)	notify each other of any change to their address or any other such information supplied by them
by not less than five Business Days’ notice.

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		(b)	Any electronic communication made between those two Parties will be effective only when actually
received in readable form and in the case of any electronic communication made by a Party to the Agent or the Security Agent only
if it is addressed in such a manner as the Agent or the Security Agent shall specify for this purpose.

 

		(c)	Any electronic communication which becomes effective, in accordance with Clause 30.6(b),
after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

 

		30.7	Use of websites

 

		(a)	The Borrower may satisfy its obligations under this Agreement to deliver any information in relation
to those Lenders (the “Website Lenders”) who accept this method of communication by posting this information
onto an electronic website designated by the Borrower and the Agent (the “Designated Website”) if:

 

		(i)	the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication
of the information by this method;

 

		(ii)	both the Borrower and the Agent are aware of the address of and any relevant password specifications
for the Designated Website; and

 

		(iii)	the information is in a format previously agreed between the Borrower and the Agent.

 

If any Lender (a “Paper
Form Lender”) does not agree to the delivery of information electronically then the Agent shall notify the Borrower accordingly
and the Borrower shall supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form. In
any event the Borrower shall supply the Agent with at least one copy in paper form of any information required to be provided by
it.

 

		(b)	The Agent shall supply each Website Lender with the address of and any relevant password specifications
for the Designated Website following designation of that website by the Borrower and the Agent.

 

		(c)	The Borrower shall promptly upon becoming aware of its occurrence notify the Agent if:

 

		(i)	the Designated Website cannot be accessed due to technical failure;

 

		(ii)	the password specifications for the Designated Website change;

 

		(iii)	any new information which is required to be provided under this Agreement is posted onto the Designated
Website;

 

		(iv)	any existing information which has been provided under this Agreement and posted onto the Designated
Website is amended; or

 

		(v)	the Borrower becomes aware that the Designated Website or any information posted onto the Designated
Website is or has been infected by any electronic virus or similar software.

 

If the Borrower notifies
the Agent under Clause 30.7(c)(i) or Clause 30.7(c)(v), all
information to be provided by the Borrower under this Agreement after the date of that notice shall be

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supplied in paper form unless
and until the Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.

 

		(d)	Any Website Lender may request, through the Agent, one paper copy of any information required to
be provided under this Agreement which is posted onto the Designated Website. The Borrower shall comply with any such request within
ten Business Days.
	 	 	 

		(e)	The Borrower shall be liable for any cost incurred by the Agent or any Website Lender under this
Clause.

 

		30.8	English language

 

Any notice given under
or in connection with any Finance Document must be in English. All other documents provided under or in connection with any Finance
Document must be:

 

		(a)	in English; or

 

		(b)	if not in English, and if so required by the Agent, accompanied by a certified English translation
and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

 

		31	Calculations and Certificates

 

		31.1	Accounts

 

In any litigation or arbitration
proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by the Agent pursuant
to Clause 28.10 (Control account) are prima facie evidence of the matters to which they relate.

 

		31.2	Certificates and determinations

 

Any certification or determination
by the Agent of a rate or amount under any Finance Document is, in the absence of error, conclusive evidence of the matters to
which it relates.

 

		31.3	Day count convention

 

Any interest, commission
or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days
elapsed and a year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with
that market practice.

 

		32	Partial Invalidity

 

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

 

		33	Remedies and Waivers

 

No failure to exercise,
nor any delay in exercising, on the part of any Finance Party or Secured Party, any right or remedy under a Finance Document shall
operate as a waiver of any such right or remedy or constitute an election to affirm any Finance Document. No election to

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affirm
any Finance Document on the part of any Finance Party or Secured Party shall be effective unless it is in writing. No single or
partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.
The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

		34	Amendments and Waivers

 

		34.1	Required consents

 

		(a)	Subject to Clause 34.2 (Exceptions) any term of the Finance Documents may be amended or
waived only with the consent of the Majority Lenders and the Borrower and any such amendment or waiver will be binding on all Parties.

 

		(b)	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this
Clause 34 (Amendments and Waivers).

 

		(c)	Without prejudice to the generality of Clauses 25.7(c), 25.7(d)
and 25.7(e) (Rights and discretions of the Agent), the Agent may engage, pay for and rely
on the services of lawyers in determining the consent level required for and effecting any amendment, waiver or consent under this
Agreement.

 

		34.2	Exceptions

 

		(a)	An amendment, waiver or (in the case of a Security Document) a consent of, or in relation to, any
term of any Finance Document that has the effect of changing or which relates to:

 

		(i)	the definition of “Majority Lenders” in Clause 1.1
(Definitions);

 

		(ii)	an extension to the date of payment of any amount under the Finance Documents;

 

		(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees
or commission payable;

 

		(iv)	a change in currency of payment of any amount under the Finance Documents;

 

		(v)	an increase in any Commitment, an extension of the Availability Period or any requirement that
a cancellation of Commitments reduces the Commitments of the Lenders rateably;

 

		(vi)	any provision which expressly requires the consent of all the Lenders;

 

		(vii)	Clause 2.2 (Finance Parties’ rights and obligations), Clause 23 (Changes to the
Lenders), this Clause 34 (Amendments and Waivers), Clause 38 (Governing Law) or Clause
39.1 (Jurisdiction of English courts);

 

		(viii)	(other than as expressly permitted by the provisions of any Finance Document) the nature or scope
of:

 

		(A)	any Guarantee;

 

		(B)	the Charged Property; or

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		(C)	the manner in which the proceeds of enforcement of the Security Documents are distributed; or

 

		(ix)	the release of any Guarantee or of any Encumbrance created or expressed to be created or evidenced
by the Security Documents unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal
of an asset which is the subject of any Encumbrance created or expressed to be created or evidenced by the Security Documents where
such sale or disposal is expressly permitted under this Agreement or any other Finance Document;

 

shall not be made, or given,
without the prior consent of all the Lenders.

 

		(b)	An amendment or waiver which relates to the rights or obligations of the Agent, the Security Agent
or the Arranger (each in their capacity as such) may not be effected without the consent of the Agent, the Security Agent or, as
the case may be, the Arranger.

 

		34.3	Replacement of Lender

 

		(a)	If the Borrower or any other Security Party becomes obliged to repay any amount in accordance with
Clause 7.1 (Illegality) or to pay additional amounts pursuant to Clause 12.2 (Tax gross-up), Clause 12.3 (Tax
indemnity) or Clause 13.1 (Increased costs) to any Lender: then the Borrower may, on five Business Days’ prior
written notice to the Agent and such Lender, replace such Lender by requiring such Lender to (and, to the extent permitted by law,
such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not part only) of its rights and obligations
under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a “Replacement Lender”)
selected by the Borrower, which confirms its willingness to assume and does assume all the obligations of the transferring Lender
in accordance with Clause 23 (Changes to the Lenders) for a purchase price in cash payable at the time of transfer in an
amount equal to the outstanding principal amount of such Lender’s participation in the outstanding Loan and all accrued interest,
Break Costs and other amounts payable in relation thereto under the Finance Documents.

 

		(b)	The replacement of a Lender pursuant to this Clause 34.3 (Replacement of Lender) shall be
subject to the following conditions:

 

		(i)	the Borrower shall have no right to replace the Agent or Security Agent;

 

		(ii)	neither the Agent nor the Lender shall have any obligation to the Borrower to find a Replacement
Lender;

 

		(iii)	in no event shall the Lender replaced under this Clause 34.3 (Replacement of Lender) be
required to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents;
and

 

		(iv)	the Lender shall only be obliged to transfer its rights and obligations pursuant to Clause 34.3
(Replacement of Lender) once it is satisfied that it has complied with all necessary “know your customer” or
other similar checks under all applicable laws and regulations in relation to that transfer.

 

		(c)	A Lender shall perform the checks described in Clause 34.3(b)(iv) as soon as reasonably practicable
following delivery of a notice referred to in Clause 34.3 (Replacement of Lender) and shall notify the Agent and the Borrower
when it is satisfied that it has complied with those checks.

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		34.4	Disenfranchisement of Defaulting Lenders

 

		(a)	For so long as a Defaulting Lender has any Commitment, in ascertaining:

 

		(i)	the Majority Lenders; or

 

		(ii)	whether:

 

		(A)	any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments;
or

 

		(B)	the agreement of any specified group of Lenders,

 

has been obtained to approve
any request for a consent, waiver, amendment or other vote of Lenders under the Finance Documents, that Defaulting Lender’s
Commitment will be reduced by the amount of its participation in the Loan it has failed to make available and, to the extent that
that reduction results in that Defaulting Lender’s Commitment being zero, that Defaulting Lender shall be deemed not to be
a Lender for the purposes of (i) and (ii).

 

		(b)	For the purposes of this Clause 34.4 (Disenfranchisement of Defaulting Lenders), the Agent
may assume that the following Lenders are Defaulting Lenders:

 

		(i)	any Lender which has notified the Agent that it has become a Defaulting Lender;

 

		(ii)	any Lender in relation to which it is aware that any of the events or circumstances referred to
in (a), (b) or (c) of the definition of “Defaulting Lender” has occurred,

 

unless it has received
notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the
Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

		34.5	Replacement of a Defaulting Lender

 

		(a)	The Borrower may, at any time a Lender has become and continues to be a Defaulting Lender, by giving
ten Business Days’ prior written notice to the Agent and such Lender, replace such Lender by requiring such Lender to (and,
to the extent permitted by law, such Lender shall) transfer pursuant to Clause 23 (Changes to the Lenders) all (and not
part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or
other entity (a “Replacement Lender”) selected by the Borrower which confirms its willingness to assume and
does assume all the obligations, or all the relevant obligations, of the transferring Lender in accordance with Clause 23 (Changes
to the Lenders) for a purchase price in cash payable at the time of transfer which is either:

 

		(i)	in an amount equal to the outstanding principal amount of such Lender’s participation in
the outstanding Loan and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents;
or

 

		(ii)	in an amount agreed between that Defaulting Lender, the Replacement Lender and the Borrower and
which does not exceed the amount described in (a).

 

		(b)	Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause 34.5 (Replacement
of a Defaulting Lender) shall be subject to the following conditions:

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		(i)	the Borrower shall have no right to replace the Agent or Security Agent;

 

		(ii)	neither the Agent nor the Defaulting Lender shall have any obligation to the Borrower to find a
Replacement Lender;

 

		(iii)	the transfer must take place no later than 7 days after the notice referred to in Clause 34.5(a);

 

		(iv)	in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender
any of the fees received by the Defaulting Lender pursuant to the Finance Documents; and

 

		(v)	the Defaulting Lender shall only be obliged to transfer its rights and obligations pursuant to
Clause 34.5(a) once it is satisfied that it has complied with all necessary “know your customer” or other similar checks
under all applicable laws and regulations in relation to that transfer to the Replacement Lender.

 

		(c)	The Defaulting Lender shall perform the checks described in Clause 34.5(b)(v)
as soon as reasonably practicable following delivery of a notice referred to in Clause 34.5(a) and shall notify the Agent and the
Borrower when it is satisfied that it has complied with those checks.

 

		35	Confidentiality

 

		35.1	Confidential Information

 

Each Finance Party agrees
to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 35.2
(Disclosure of Confidential Information) and Clause 35.3 (Disclosure to numbering service providers), and to ensure
that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential
information.

 

		35.2	Disclosure of Confidential Information

 

Any Finance Party may disclose:

 

		(a)	to any of its Affiliates and Related Funds and any of its or their officers, directors, employees,
professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider
appropriate if any person to whom the Confidential Information is to be given pursuant to this Clause 35.2(a)
is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive
information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations
to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the
Confidential Information;

 

		(b)	to any person:

 

		(i)	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any
of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as
Agent or Security Agent and, in each case, to any of that person’s Affiliates, Related Funds, Representatives and professional
advisers;

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		(ii)	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly,
any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference
to, one or more Finance Documents and/or one or more Security Parties and to any of that person’s Affiliates, Related Funds,
Representatives and professional advisers;

 

		(iii)	appointed by any Finance Party or by a person to whom Clause 35.2(b)(i)
or 35.2(b)(ii) applies to receive communications, notices, information or documents delivered
pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under Clause 25.16(b)
(Relationship with the Lenders));

 

		(iv)	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly
or indirectly, any transaction referred to in Clause 35.2(b)(i) or 35.2(b)(ii);

 

		(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction
or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange
or pursuant to any applicable law or regulation;

 

		(vi)	to whom information is required to be disclosed in connection with, and for the purposes of, any
litigation, arbitration, administrative or other investigations, proceedings or disputes;

 

		(vii)	who is a Party; or

 

		(viii)	with the consent of the Borrower;

 

in each case, such Confidential
Information as that Finance Party shall consider appropriate if:

 

		(A)	in relation to Clauses 35.2(b)(i), 35.2(b)(ii)
and 35.2(b)(iii), the person to whom the Confidential Information is to be given has entered
into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient
is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

 

		(B)	in relation to Clause 35.2(b)(iv), the person to whom the Confidential
Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality
in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may
be price-sensitive information;

 

		(C)	in relation to Clauses 35.2(b)(v), 35.2(b)(vi),
the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such
Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion
of that Finance Party, it is not practicable so to do in the circumstances; and

 

		(c)	to any person appointed by that Finance
Party or by a person to whom Clause 35.2(b)(i) or 35.2(b)(ii)
applies to provide administration or settlement services in respect of one or more of the Finance Documents including without
limitation, in relation to the trading of

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	 	 	 participations in respect of the Finance
Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the
services referred to in this Clause 35.2(c) if the service provider to whom the Confidential
Information is to be given has entered into a Confidentiality Undertaking; and
	 	 	 
		(d)	to any rating agency (including its professional advisers) such Confidential Information as may
be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents
and/or the Security Parties and/or the Group.

 

		35.3	Disclosure to numbering service providers

 

		(a)	Any Finance Party may disclose to any national or international numbering service provider appointed
by that Finance Party to provide identification numbering services in respect of this Agreement, the Loan and/or one or more Security
Parties the following information:

 

		(i)	names of Security Parties;

 

		(ii)	country of domicile of Security Parties;

 

		(iii)	place of incorporation of Security Parties;

 

		(iv)	date of this Agreement;

 

		(v)	Clause 38 (Governing Law);

 

		(vi)	the names of the Agent and the Arranger;

 

		(vii)	date of each amendment and restatement of this Agreement;

 

		(viii)	amount of Total Commitments;

 

		(ix)	currencies of the Loan;

 

		(x)	type of Loan;

 

		(xi)	ranking of the Loan;

 

		(xii)	Termination Date;

 

		(xiii)	changes to any of the information previously supplied pursuant to (i) to (xii); and

 

		(xiv)	such other information agreed between such Finance Party and that Security Party,

 

to enable such numbering
service provider to provide its usual syndicated loan numbering identification services.

 

		(b)	The Parties acknowledge and agree that each identification number assigned to this Agreement, the
Loan and/or one or more Security Parties by a numbering service provider and the information associated with each such number may
be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

 

		(c)	The Borrower represents that none of the information set out in Clauses 35.3(a)(i)
to 35.3(a)(xiv) is, nor will at any time be, unpublished price-sensitive information.

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		(d)	The Agent shall notify the Borrower and the other Finance Parties of:

 

		(i)	the name of any numbering service provider appointed by the Agent in respect of this Agreement,
the Loan and/or one or more Security Parties; and

 

		(ii)	the number or, as the case may be, numbers assigned to this Agreement, the Loan and/or one or more
Security Parties by such numbering service provider.

 

		35.4	Entire agreement

 

This Clause 35 (Confidentiality)
constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents
regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

		35.5	Inside information

 

Each of the Finance Parties
acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such
information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market
abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.

 

		35.6	Notification of disclosure

 

Each of the Finance Parties
agrees (to the extent permitted by law and regulation) to inform the Borrower:

 

		(a)	of the circumstances of any disclosure of Confidential Information made pursuant to Clause 35.2(b)(v)
(Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that
Clause during the ordinary course of its supervisory or regulatory function; and

 

		(b)	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 35
(Confidentiality).

 

		35.7	Continuing obligations

 

The obligations in this
Clause 35 (Confidentiality) are continuing.

 

		36	Disclosure of Lender Details by Agent

 

		36.1	Supply of Lender details to Borrower

 

The Agent shall provide
to the Borrower within seven Business Days of a request by the Borrower (but no more frequently than once per calendar month) a
list (which may be in electronic form) setting out the names of the Lenders as at the date of that request, their respective Commitments,
the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each
Lender for any communication to be made or document to be delivered under or in connection with the Finance Documents, the electronic
mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other
electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made

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by that means and the account details of each Lender for any payment to be distributed by the Agent to that Lender under the Finance
Documents.

 

		36.2	Supply of Lender details at Borrower’s direction

 

		(a)	The Agent shall, at the request of the Borrower, disclose the identity of the Lenders and the details
of the Lenders’ Commitments to any:

 

		(i)	other Party or any other person if that disclosure is made to facilitate, in each case, a refinancing
of the Financial Indebtedness arising under the Finance Documents or a material waiver or amendment of any term of any Finance
Document; and

 

		(ii)	Security Party.

 

		(b)	Subject to Clause 36.2(c), the Borrower shall procure that the
recipient of information disclosed pursuant to Clause 36.2(a) shall keep such information confidential and shall not disclose it
to anyone and shall ensure that all such information is protected with security measures and a degree of care that would apply
to the recipient’s own confidential information.

 

		(c)	The recipient may disclose such information to any of its officers, directors, employees,
                                                             professional advisers, auditors and partners as it shall consider appropriate if any such person is informed in writing of
                                                             its confidential nature, except that there shall be no such requirement to so inform if that person is subject to
                                                             professional obligations to maintain
the confidentiality of the information or is otherwise bound by duties of confidentiality in relation to the information.

 

		36.3	Supply of Lender details to other Lenders

 

		(a)	If a Lender (a “Disclosing Lender”) indicates to the Agent that the Agent may
do so, the Agent shall disclose that Lender’s name and Commitment to any other Lender that is, or becomes, a Disclosing Lender.

 

		(b)	The Agent shall, if so directed by the Requisite Lenders, request each Lender to indicate to it
whether it is a Disclosing Lender.

 

		36.4	Lender enquiry

 

If any Lender believes
that any entity is, or may be, a Lender and:

 

		(a)	that entity ceases to have an Investment Grade Rating; or

 

		(b)	an Insolvency Event occurs in relation to that entity,

 

the Agent shall, at the
request of that Lender, indicate to that Lender the extent to which that entity has a Commitment.

 

		36.5	Lender details definitions

 

In this Clause 36 (Disclosure
of Lender Details by Agent):

 

“Investment
Grade Rating” means, in relation to an entity, a rating for its long-term unsecured and non-credit-enhanced debt obligations
of BBB- or higher by Standard & Poor’s Rating

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 Services or Fitch Ratings Ltd or Baa3 or higher by Moody’s Investors
Service Limited or a comparable rating from an internationally recognised credit rating agency.

 

“Requisite
Lenders” means a Lender or Lenders whose Commitments aggregate 15 per cent (or more) of the Total Commitments
(or if the Total Commitments have been reduced to zero, aggregated 15 per cent (or more) of the Total Commitments immediately prior
to that reduction).

 

		36.6	Consent to publication

 

Subject to the Borrower’s
written consent, such consent not to be unreasonably withheld, the Agent and/or the Arranger reserve the right, at their expense,
to publish information in connection with their participation in and the agency and arrangements contained in the Finance Documents,
in internal and external publications and for such purpose, the Agent or the Arranger may use the Borrower’s or the Collateral
Owners’ logos or trademarks in connection with any such publication.

 

		37	Counterparts

 

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

    	111

    	

    

Section
12

 

Governing
Law and Enforcement

 

 

		38	Governing Law

 

This Agreement and any non-contractual
obligations arising out of or in connection with it are governed by English law.

 

		39	Enforcement

 

		39.1	Jurisdiction of English courts

 

The courts of England have
exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating
to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with
this Agreement) (a “Dispute”). Each Party agrees that the courts of England are the most appropriate and convenient
courts to settle Disputes and accordingly no Party will argue to the contrary.

 

This Clause 39.1 (Jurisdiction
of English courts) is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking
proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, any Finance Party may take
concurrent proceedings in any number of jurisdictions.

 

		39.2	Service of process

 

		(a)	Without prejudice to any other mode of service allowed under any relevant law, the Borrower:

 

		(i)	irrevocably appoints Mr. John Georgiou, 42 Marble Drive, London, NW2 1XA, England (tel/fax: +44
208 361 2606) as its agent for service of process in relation to any proceedings before the English courts in connection with any
Finance Document; and

 

		(ii)	agrees that failure by a process agent to notify the Borrower of the process will not invalidate
the proceedings concerned.

 

		(b)	If any person appointed as an agent for service of process is unable for any reason to act as agent
for service of process or terminates its appointment as agent for service of process, the Borrower must immediately (and in any
event within five days of such event taking place) appoint another agent on terms acceptable to the Agent. Failing this, the Agent
may appoint another agent for this purpose.

 

		40	Bail-In

 

Notwithstanding any other
term of any Finance Document or any other agreement, arrangement or understanding between the parties to a Finance Document, each
Party acknowledges and accepts that any liability of any party to a Finance Document under or in connection with the Finance Documents
may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:

 

		(a)	any Bail-In Action in relation to any such liability, including (without limitation):

    	112

    	

    

		(i)	a reduction, in full or in part, in the principal amount, or outstanding amount due (including
any accrued but unpaid interest) in respect of any such liability;

 

		(ii)	a conversion of all, or part of, any such liability into shares or other instruments of ownership
that may be issued to, or conferred on, it; and

 

		(iii)	a cancellation of any such liability; and

 

		(b)	a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In
Action in relation to any such liability.

 

This Agreement has been entered into
on the date stated at the beginning of this Agreement.

    	113

    	

    

Schedule
1

 

The
Original Lenders

 

	Name of Original Lender	Commitment	Treaty Passport scheme

 reference number and

 jurisdiction of residence
	
        DNB (UK) Limited

         

        8th Floor

The Walbrook Building

25 Walbrook

London EC4N 8AF, England

 
	100%	
        DDTP NUMBER: 58/D/305668/DTTP

         

        England

    	114

    	

    

Schedule
2

 

Part
A

 

Conditions
Precedent

 

		1	SECURITY PARTIES

 

		1.1	Constitutional documents

 

Copies of the constitutional
documents of each Security Party together with such other evidence as the Agent may reasonably require that each Security Party
is duly incorporated in its country of incorporation and remains in existence with power to enter into, and perform its obligations
under, the Relevant Documents to which it is or is to become a party.

 

		1.2	Certificates of good standing

 

A certificate of good standing
in respect of each Security Party (if such a certificate can be obtained).

 

		1.3	Board resolutions

 

A copy of a resolution of
the board of directors of each Security Party:

 

		(a)	approving the terms of, and the transactions contemplated by, the Finance Documents to which it
is a party and resolving that it execute those Finance Documents; and

 

		(b)	authorising a specified person or persons to execute those Relevant Documents (and all documents
and notices to be signed and/or dispatched under those documents) on its behalf.

 

		1.4	Copy passports

 

A copy of the passport of
each person authorised by the resolutions referred to in clause 1.3 above.

 

		1.5	Shareholder resolutions

 

If required by law, a copy
of a resolution signed by all the holders of the issued shares in each Security Party (other than the Borrower), approving the
terms of, and the transactions contemplated by, the Relevant Documents to which that Security Party is a party.

 

		1.6	Officer’s certificates

 

An original certificate of
a duly authorised officer of each Security Party:

 

		(a)	certifying that each copy document relating to it specified in this Part I of Schedule 2 is correct,
complete and in full force and effect;

 

		(b)	setting out the names of the directors, officers and shareholders of that Security Party and the
proportion of shares held by each shareholder; and

 

		(c)	confirming that borrowing or guaranteeing or securing, as appropriate, the Loan would not cause
any borrowing, guarantee, security or similar limit binding on that Security Party to be exceeded.

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		1.7	Evidence of registration

 

Where such registration is
required or permitted under the laws of the relevant jurisdiction, evidence that the names of the directors, officers and shareholders
of each Security Party are duly registered in the companies registry or other registry in the country of incorporation of that
Security Party.

 

		1.8	Powers of attorney

 

The original notarially attested
and legalised power of attorney of each of the Security Parties under which the Relevant Documents to which it is or is to become
a party are to be executed or transactions undertaken by that Security Party.

 

		2	SECURITY AND RELATED DOCUMENTS

 

		2.1	Vessel documents

 

Photocopies, certified as
true, accurate and complete by a director or the secretary of the Borrower, of:

 

		(a)	any charterparty or other contract of employment of the Vessels which will be in force on the Drawdown
Date;

 

		(b)	the Management Agreements in respect of the Vessels;

 

		(c)	the Vessels’ current Safety Construction, Safety Equipment, Safety Radio Oil Pollution Prevention
and Load Line Certificates;

 

		(d)	evidence of the Vessel’s current Certificate of Financial Responsibility issued pursuant
to the United States Oil Pollution Act 1990;

 

		(e)	the Vessels’ current SMC;

 

		(f)	the ISM Company’s current DOC;

 

		(g)	the Vessels’ current ISSC;

 

		(h)	the Vessels’ current IAPPC;

 

		(i)	the Vessels’ current Tonnage Certificate;

 

in each case together with
all addenda, amendments or supplements.

 

		2.2	Evidence of Collateral Owner’s title

 

Certificate of ownership
and encumbrance (or equivalent) issued by the Registrar of Ships (or equivalent official) of the Approved Flag confirming that
each Vessel is permanently registered under that flag in the ownership of the relevant Collateral Owner, (b) each Mortgage has
been registered with first priority against each Vessel and (c) there are no further Encumbrances registered against any Vessel.

    	116

    	

    

		2.3	Evidence of insurance

 

Evidence that the Vessels
are insured in the manner required by the Security Documents and that letters of undertaking will be issued in the manner required
by the Security Documents, together with (if required by the Agent) the written approval of the Insurances by an insurance adviser
appointed by the Agent.

 

		2.4	Confirmation of class

 

A Certificate of Confirmation
of Class for hull and machinery confirming that each Vessel is classed with the highest class applicable to vessels of her type
with Lloyd’s Register or such other classification society as may be acceptable to the Agent free of recommendations affecting
class.

 

		2.5	Valuation

 

Not later than 30 days prior
to the date of this Agreement, one or more valuation(s) of each Vessel addressed to the Agent from an Approved Shipbroker certifying
the Market Value for each Vessel, acceptable to the Agent.

 

		2.6	Security Documents

 

The Security Documents, duly
executed and, where applicable, registered, together with all other documents required by any of them, including, without limitation,
all notices of assignment and/or charge and evidence that those notices will be duly acknowledged by the recipients.

 

		2.7	Mandates

 

Such duly signed forms of
mandate, and/or other evidence of the opening of the Earnings Accounts, as the Security Agent may require.

 

		2.8	No disputes

 

The written confirmation
of the Borrower that there is no dispute under any of the Relevant Documents as between the parties to any such document.

 

		2.9	Account Holder’s confirmation

 

The written confirmation
of the Account Holder that the relevant Earnings Accounts have been opened with the Account Holder and to its actual knowledge
are free from Encumbrances other than as created by or pursuant to the Security Documents and rights of set off in favour of the
Account Holder as account holder.

 

		2.10	Master Agreement

 

The Master Agreement.

 

		2.11	Other Relevant Documents

 

Copies of each of the Relevant
Documents not otherwise comprised in the documents listed in this Part I of Schedule 2.

    	117

    	

    

		3	LEGAL OPINIONS

 

The following legal opinions,
each addressed to the Agent, the Security Agent, the Swap Provider and the Lenders and capable of being relied upon by any persons
who become Lenders pursuant to the primary syndication of the Loan or confirmation satisfactory to the Agent that such opinions
will be given:

 

		3.1	a legal opinion of Watson Farley & Williams, legal advisers to the Agent as to English
law substantially in the form distributed to the Lenders prior to signing this Agreement;

 

		3.2	a legal opinion of the following legal advisers to the Agent:

 

		(a)	Watson Farley & Williams, as to Liberian law; and

 

		(b)	Watson Farley & Williams, as to Marshall Islands law;

 

		(c)	Chrysses Demetriades & Co. LLC, as to Cypriot law;

 

		(d)	Arias B. & Associates, as to Panamanian law; and

 

		4	OTHER DOCUMENTS AND EVIDENCE

 

		4.1	Drawdown Request

 

A duly completed Drawdown
Request.

 

		4.2	Process agent

 

Evidence that any process
agent referred to in Clause 39.2 (Service of process) and any process agent appointed under any other Finance Document has
accepted its appointment.

 

		4.3	Other Authorisations

 

A copy of any other Authorisation
or other document, opinion or assurance which the Agent considers to be necessary (if it has notified the Borrower accordingly)
in connection with the entry into and performance of the transactions contemplated by any Relevant Document or for the validity
and enforceability of any Relevant Document.

 

		4.4	Financial statements

 

A copy of the Original Financial
Statements of the Borrower.

 

		4.5	Fees

 

A Fee Letter and evidence
that the fees, costs and expenses then due from the Borrower under Clause 11 (Fees) and Clause 16 (Costs and Expenses)
have been paid or will be paid by the Drawdown Date.

 

		4.6	“Know your customer” documents

 

Such documentation and other
evidence as is reasonably requested by the Agent in order for the Lenders to comply with all necessary “know your customer”
or similar identification procedures in relation to the transactions contemplated in the Finance Documents, including any specimen
signatures required by Agent.

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		4.7	Side LetterF

 

The side letter evidencing
the Current Shareholders of the Borrower issued by the Borrower in favour of the Agent in such form as the Agent may require.

 

		4.8	Amount in the Earnings Accounts

 

Evidence that the amount
of three hundred thousand dollars ($300,000) is credited to the Earnings Account.

    	119

    	

    

Part
B

 

Conditions
Subsequent

 

		1	LETTERS OF UNDERTAKING

 

Letters of undertaking in
respect of the Insurances as required by the Security Documents together with copies of the relevant policies or cover notes or
entry certificates duly endorsed with the interest of the Finance Parties.

 

		2	ACKNOWLEDGEMENTS OF NOTICES

 

Acknowledgements of all notices
of assignment and/or charge given pursuant to the Security Documents.

 

		3	LEGAL OPINIONS

 

Such of the legal opinions
specified in Part A of this Schedule 2 as have not already been provided to the Agent.

 

		4	COMPANIES ACT REGISTRATIONS

 

If applicable, evidence that
the prescribed particulars of the Security Documents have been delivered to any relevant the Registry of Companies/Corporations
within the statutory time limit.

 

		5	MASTER’S RECEIPT

 

If applicable, the master’s
receipt for the Mortgage.

 

		6	MORTGAGEE’S INSURANCES FEES

 

Payment to the Agent of all
fees in relation to inspections, valuations, legal fees and premiums for Mortgagee’s Insurances, once notified by the Agent
to the Borrower.

    	120

    	

    

Part
C

 

Delivery
Conditions Precedent

 

		7	OFFICER’S CERTIFICATE

 

A certificate signed by a
duly authorised officer of each Security Party confirming that none of the documents and evidence delivered to the Agent pursuant
to Clauses 4.1 (Initial conditions precedent) and 4.3 (Conditions subsequent) has been amended, modified or revoked
in any way since its delivery to the Agent.

 

		8	SECURITY AND RELATED DOCUMENTS

 

		8.1	Vessel documents

 

Photocopies, certified as
true, accurate and complete by a director or the secretary of the Borrower, of:

 

		(a)	the builder’s certificate and/or bill of sale transferring title in the Newbuilding Vessel
to the Collateral Owner free of all encumbrances, maritime liens or other debts;

 

		(b)	the protocol of delivery and acceptance evidencing the unconditional physical delivery of the Newbuilding
Vessel by the Builder to the Collateral Owner pursuant to the Building Contract;

 

		(c)	the commercial invoice issued by the Builder in respect of the final contract price of the Newbuilding
Vessel;

 

		(d)	the declaration of warranty issued by the Builder to the Collateral Owner pursuant to the Building
Contract;

 

		(e)	any charterparty or other contract of employment of the Newbuilding Vessel which will be in force
on the Delivery Date;

 

		(f)	the Management Agreements;

 

		(g)	the Vessel’s current Safety Construction, Safety Equipment, Safety Radio and Load Line Certificates;

 

		(h)	evidence of the Vessel’s current Certificate of Financial Responsibility issued pursuant
to the United States Oil Pollution Act 1990;

 

		(i)	the Vessel’s current SMC, or an application form submitted by the Borrower;

 

		(j)	the ISM Company’s current DOC;

 

		(k)	the Vessel’s current ISSC, or an application form submitted by the Borrower;

 

		(l)	the Vessel’s current IAPPC, or any application form submitted by the Borrower;

 

		(m)	the Vessel’s current Tonnage Certificate;

 

in each case together with
all addenda, amendments or supplements.

    	121

    	

    

		8.2	Evidence of Collateral Owner’s title

 

Evidence that any prior registration
of the Newbuilding Vessel in the ownership of the Builder and any Encumbrance registered against that ownership have been cancelled
(or confirmation from the Builder that there was no such prior registration) and evidence that on the Delivery Date (i) the Newbuilding
Vessel will be at least provisionally registered under an Approved Flag in the ownership of the Collateral Owner and (ii) the Mortgage
will be capable of being registered against the Newbuilding Vessel with first priority.

 

		8.3	Evidence of insurance

 

Evidence that the Newbuilding
Vessel is insured in the manner required by the Security Documents and that letters of undertaking will be issued in the manner
required by the Security Documents, together with (if required by the Agent) the written approval of the Insurances by an insurance
adviser appointed by the Agent.

 

		8.4	Confirmation of class

 

An interim Certificate of
Confirmation of Class for hull and machinery confirming that the Newbuilding Vessel is classed with the highest class applicable
to Newbuilding Vessels of her type with Lloyd’s Register or such other classification society as may be acceptable to the
Agent.

 

		8.5	Survey report

 

If requested by the Agent,
a report by a surveyor instructed by the relevant Collateral Owner and acceptable to the Agent to inspect the Newbuilding Vessel
confirming to the Agent that the condition of the Newbuilding Vessel is in all respects acceptable to the Agent.

 

		8.6	Valuation

 

Not later than 30 days, or
such shorter period as the Agent may agree to, prior to the date of this Agreement, one or more valuation(s) of the Newbuilding
Vessel addressed to the Agent from an Approved Shipbroker certifying the Market Value for the Newbuilding Vessel, acceptable to
the Agent.

 

		8.7	Security Documents

 

The Mortgage, the Assignments,
the Account Security Deed, the Managers’ Undertakings and any other Credit Support Documents, together with all other documents
required by any of them, including, without limitation, all notices of assignment and/or charge and evidence that those notices
will be duly acknowledged by the recipients.

 

		8.8	Mandates

 

Such duly signed forms of
mandate, and/or other evidence of the opening of the Earnings Accounts, as the Security Agent may require.

 

		8.9	Account Holder’s confirmation

 

The written confirmation
of the Account Holder that the relevant Earnings Accounts have been opened with the Account Holder and to its actual knowledge
are free from Encumbrances

    	122

    	

    

other than as created by
or pursuant to the Security Documents and rights of set off in favour of the Account Holder as account holder.

 

		8.10	Other Relevant Documents

 

Copies of each of the Relevant
Documents not otherwise comprised in the documents listed in Parts A to C of this Schedule 2.

 

		9	LEGAL OPINIONS

 

The following legal opinions,
each addressed to the Agent, the Security Agent, the Swap Provider and the Lenders and capable of being relied upon by any persons
who become Lenders pursuant to the primary syndication of the Loan or confirmation satisfactory to the Agent that such opinions
will be given:

 

		9.1	a legal opinion of Watson Farley & Williams, legal advisers to the Agent as to English
law substantially in the form distributed to the Lenders prior to signing this Agreement;

 

		9.2	a legal opinion of the following legal advisers to the Agent:

 

		(a)	Watson Farley & Williams, as to Liberian law; and

 

		(b)	Watson Farley & Williams, as to Marshall Islands law;

 

		(c)	Chrysses Demetriades & Co. LLC, as to Cypriot law;

 

		(d)	Arias B. & Associates, as to Panamanian law; and

 

		10	OTHER DOCUMENTS AND EVIDENCE

 

		10.1	Process agent

 

Evidence that any process
agent referred to in Clause 39.2 (Service of process) and any process agent appointed under any other Finance Document has
accepted its appointment.

 

		10.2	Other Authorisations

 

A copy of any other Authorisation
or other document, opinion or assurance which the Agent considers to be necessary or desirable (if it has notified the Borrower
accordingly) in connection with the entry into and performance of the transactions contemplated by any Relevant Document or for
the validity and enforceability of any Relevant Document.

 

		10.3	Fees

 

A Fee Letter and evidence
that the fees, costs and expenses then due from the Borrower under Clause 11 (Fees) and Clause 16 (Costs and Expenses)
have been paid or will be paid by the Drawdown Date.

    	123

    	

    

Part
D

 

Delivery
Conditions Subsequent

 

		11	EVIDENCE OF COLLATERAL OWNER’S TITLE

 

Certificate of ownership
and encumbrance (or equivalent) issued by the Registrar of Ships (or equivalent official) of an Approved Flag confirming that (a)
the Vessel is permanently registered under that flag in the ownership of the Collateral Owner, (b) the Mortgage has been registered
with first priority against the Vessel and (c) there are no further Encumbrances registered against the Vessel.

 

		12	LETTERS OF UNDERTAKING

 

Letters of undertaking in
respect of the Insurances as required by the Security Documents together with copies of the relevant policies or cover notes or
entry certificates duly endorsed with the interest of the Finance Parties.

 

		13	ACKNOWLEDGEMENTS OF NOTICES

 

Acknowledgements of all notices
of assignment and/or charge given pursuant to any Security Documents received by the Agent pursuant to Part C of this Schedule
2.

 

		14	LEGAL OPINIONS

 

Such of the legal opinions
specified in Part C of this Schedule 2 as have not already been provided to the Agent.

 

		15	COMPANIES ACT REGISTRATIONS

 

If applicable, evidence that
the prescribed particulars of any Security Documents received by the Agent pursuant to Part C of this Schedule 2 have been delivered
to any relevant Registry of Companies/Corporations within the statutory time limit.

 

		16	MASTER’S RECEIPT

 

If applicable, the master’s
receipt for the Mortgage.

 

		17	MORTGAGEE’S INSURANCES FEES

 

Payment to the Agent of all
fees in relation to inspections, valuations, legal fees and premiums for Mortgagee’s Insurances, once notified by the Agent
to the Borrower.

 

		18	SAFETY MANAGEMENT CERTIFICATE

 

The Vessel’s current
SMC.

 

		19	INTERNATIONAL SHIP SECURITY CERTIFICATE

 

The Vessel’s current
ISSC.

 

		20	INTERNATIONAL AIR POLLUTION PREVENTION CERTIFICATE

 

The Vessel’s current
IAPPC.

    	124

    	

    

Schedule
3

 

Drawdown
Request

 

	From:	SAFE BULKERS, INC.

 

	To:	DNB BANK ASA

 

Dated:

 

Dear Sirs

 

Safe Bulkers, Inc. - Loan Agreement relating
to a $142,000,000 term loan facility as supplemented by supplemental agreements dated 20 February 2015 and 15 December 2015, as
amended and restated on 22 February 2016, as further supplemented by supplemental agreements dated 1 June 2016 and 8 December
2016, as further amended and restated on 26 July 2017 and as further amended and restated on [l] 2018 (the “Agreement”)

 

		1	We refer to the Agreement. This is a Drawdown Request. Terms defined in the Agreement have the
same meaning in this Drawdown Request unless given a different meaning in this Drawdown Request.

 

		2	We wish to [make a Drawing under the Term Loan Facility] [draw down the Loan] on the following
terms:

 

	 	Proposed Drawdown Date:	[l] (or, if that is not a Business
    Day, the next Business Day)
	 	 	 
	 	Amount:	[l]
	 	 	 
	 	Interest Period:	[l]

 

		3	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is
satisfied on the date of this Drawdown Request.

 

		4	The
                                         proceeds of the [Drawing][Loan] should be credited to [account] [towards repayment in
                                         full of the [l].

 

		5	This Drawdown Request is irrevocable.

 

Yours faithfully

 

 

 

authorised signatory for

SAFE BULKERS, INC.

    	125

    	

    

Schedule
4

 

Form
of Transfer Certificate

 

	To:	[l] as Agent

 

	From:	[The Existing Lender] (the “Existing Lender”)
    and [The New Lender] (the “New Lender”)

 

Dated:

 

Safe Bulkers, Inc. - Loan Agreement relating
to a $142,000,000 term loan facility as supplemented by supplemental agreements dated 20 February 2015 and 15 December 2015, as
amended and restated on 22 February 2016, as further supplemented by supplemental agreements dated 1 June 2016 and 8 December
2016 as further amended and restated on 26 July 2017 and as further amended and restated on [l] Septeber 2018 (the “Agreement”)

 

		1	We refer to the Loan Agreement. This agreement (the “Agreement”) shall take
effect as a Transfer Certificate for the purposes of the Loan Agreement. Terms defined in the Loan Agreement have the same meaning
in this Agreement unless given a different meaning in this Agreement.

 

		2	We refer to Clause 23.5 (Procedure for transfer) of the Loan Agreement:

 

		(a)	The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender
by novation and in accordance with Clause 23.5 (Procedure for transfer) all of the Existing Lender’s rights and obligations
under the Loan Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment(s)
and participations in the Loan under the Loan Agreement as specified in the Schedule.

 

		(b)	The proposed Transfer Date is [l].

 

		(c)	The Facility Office and address, fax number and attention details for notices of the New Lender
for the purposes of Clause 30.2 (Addresses) are set out in the Schedule.

 

		3	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in Clause 23.4(a)(iii) (Limitation of responsibility of Existing Lenders).

 

		4	The New Lender confirms, for the benefit of the Agent and without liability to any Security Party,
that it is:

 

		(a)	[a Qualifying Lender other than a Treaty Lender;]

 

		(b)	[a Treaty Lender;]

 

		(c)	[not a Qualifying Lender].

 

[5]         [The New Lender confirms that
the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

 

		(d)	a company resident in the United Kingdom for United Kingdom tax purposes;

 

		(e)	a partnership each member of which is:

 

		(i)	a company so resident in the United Kingdom; or

    	126

    	

    

		(ii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section
19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the
CTA; or

 

		(f)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the CTA) of that company.]

 

		[5]	[The
                                         New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme
                                         (reference number [l]) and is tax resident in [l], so that interest payable to it by
                                         borrowers is generally subject to full exemption from UK withholding tax, and requests
                                         that the Agent notify the Borrower that it wishes that scheme to apply to the Agreement.]

 

		[6]	This Agreement may be executed in any number of counterparts and this has the same effect as if
the signatures on the counterparts were on a single copy of this Agreement.

 

	[7]	This Agreement and any non-contractual obligations arising out of or in connection with it are
governed by English law.
	 	 
	[8]	This Agreement has been entered
into on the date stated at the beginning of this Agreement.

 

Note:  The execution of
this Transfer Certificate may not transfer a proportionate share of the Existing Lender’s interest in any Encumbrance created
or expressed to be created or evidenced by the Security Documents in all jurisdictions. It is the responsibility of the
New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in
any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

    	127

    	

    

The Schedule

 

Commitment/rights and obligations to
be transferred

 

[insert relevant details]

 

[Facility Office address, fax number
and attention details for notices and account details for payments,]

 

	[Existing Lender]	[New Lender]
	 	 
	By:	By:

 

This
Agreement is accepted as a Transfer Certificate for the purposes of the Loan Agreement by the Agent and the Transfer Date is confirmed
as [l].

 

DNB BANK ASA

 

By:

    	128

    	

    

Schedule
5

 

Form
of Assignment Agreement

 

	To:	[l] as Agent and [l] and [l] as Borrower, for and on behalf of each Security
    Party
	 	 
	From:	[the Existing Lender] (the “Existing Lender”)
    and [the New Lender] (the “New Lender”)

 

Dated:

 

Safe
Bulkers, Inc. - USD142,000,000 Loan Agreement dated 22 September 2014 as supplemented by supplemental agreements dated 20 February
2015 and 15 December 2015, as amended and restated on 22 February 2016, as further supplemented by supplemental agreements dated
1 June 2016 and 8 December 2016 as further amended and restated on 26 July 2017 and as further amended and restated on [l] 2018 (the “Loan Agreement”)

 

		1	We refer to the Loan Agreement. This is an Assignment Agreement. This agreement (the “Agreement”)
shall take effect as an Assignment Agreement for the purpose of the Loan Agreement. Terms defined in the Loan Agreement have the
same meaning in this Agreement unless given a different meaning in this Agreement.

 

		2	We refer to Clause 23.6 (Procedure for assignment) of the Loan Agreement:

 

		(a)	The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender
under the Loan Agreement, the other Finance Documents and in respect of any Encumbrance created or expressed to be created or evidenced
by the Security Documents which correspond to that portion of the Existing Lender’s Commitment(s) and participations in the
Loan under the Loan Agreement as specified in the Schedule.

 

		(b)	The Existing Lender is released from all the obligations of the Existing Lender which correspond
to that portion of the Existing Lender’s Commitment(s) and participations in the Loan under the Loan Agreement specified
in the Schedule.

 

		(c)	The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from
which the Existing Lender is released under paragraph (b).

 

		3	The
                                         proposed Transfer Date is [l].

 

		4	On the Transfer Date the New Lender becomes:

 

Party to the relevant Finance
Documents as a Lender.

 

		5	The Facility Office and address, fax number and attention details for notices of the New Lender
for the purposes of Clause 30.2 (Addresses) are set out in the Schedule.

 

		6	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in Clause 23.4(c) (Limitation of responsibility of Existing Lenders).

 

		7	The New Lender confirms, for the benefit of the Agent and without liability to any Security Party,
that it is:

 

		(a)	[a Qualifying Lender (other than a Treaty Lender);]

    	129

    	

    

		(b)	[a Treaty Lender;]

 

		(c)	[not a Qualifying Lender].

 

		8	[The New Lender confirms that the person beneficially entitled to interest payable to that Lender
in respect of an advance under a Finance Document is either:

 

		(a)	a company resident in the United Kingdom for United Kingdom tax purposes;

 

		(b)	a partnership each member of which is:

 

		(i)	a company so resident in the United Kingdom; or

 

		(ii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section
19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the
CTA; or

 

		(c)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the CTA) of that company.]

 

		9	[The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme
                                         (reference number [l]) and is tax resident in [l], so that interest payable to it by
                                         borrowers is generally subject to full exemption from UK withholding tax and hereby notifies
                                         the Borrower that it wishes that scheme to apply to the Loan Agreement.]

 

		10	This Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery
in accordance with Clause 23.7 (Copy of Transfer Certificate or Assignment Agreement to Borrower), to the Borrower (on behalf
of each Security Party) of the assignment referred to in this Agreement.

 

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

 

		12	This Agreement [and any non-contractual obligations arising out of or in connection with it] [is/are]
governed by English law.

 

		13	This Agreement has been entered into on the date stated at the beginning of this Agreement.

 

Note:  The execution of
this Assignment Agreement may not transfer a proportionate share of the Existing Lender’s interest in any Encumbrance created
or expressed to be created or evidenced by the Security Documents in all jurisdictions. It is the responsibility of the New Lender
to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in any jurisdiction
and, if so, to arrange for execution of those documents and completion of those formalities.

    	130

    	

    

The Schedule

 

Commitment/rights and obligations to
be transferred by assignment, release and accession

 

[insert relevant details]

 

[Facility office address, fax number
and attention details for notices and account details for payments]

 

	[Existing Lender]	[New Lender]
	 	 
	By:	By:

 

This Agreement is accepted as an Assignment
Agreement for the purposes of the Loan Agreement by the Agent and the Transfer Date is confirmed as [l].

 

Signature of this Agreement by the Agent
constitutes confirmation by the Agent of receipt of notice of the assignment referred to in this Agreement, which notice the Agent
receives on behalf of each Finance Party.

 

DNB BANK ASA

 

By:

    	131

    	

    

Schedule
6

Form of Compliance Certificate

 

	To:	DNB BANK ASA

 

	From:	SAFE BULKERS, INC.

 

Dated:

 

Dear Sirs

 

Safe
Bulkers, Inc. - USD142,000,000 Loan Agreement dated 22 September 2014 as supplemented by supplemental agreements dated 20 February
2015 and 15 December 2015, as amended and restated on 22 February 2016, as further supplemented by supplemental agreements dated
1 June 2016 and 8 December 2016 as further amended and restated on 26 July 2017 and as further amended and restated on [l]
2018 (the “Agreement”)

 

		1	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have
the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

 

		2	We confirm that:

 

	Agreement Clause	 	Covenant determination/Calculation compliance	 	(min/max amount)
	 	 	 	 	 
	13.2.25 (a)	 	Consolidated Group Leverage	 	 
	 	 	Consolidated Total Liabilities     USD[                ]	 	 
	 	 	÷ Consolidated Total Assets     USD[                ]	 	 
	 	 	= Consolidated Group Leverage [                %]	 	[minimum 85%]
	 	 	 	 	 
	 	 	 	 	 
	13.2.25 (b)	 	EBITDA to Interest Expense ratio	 	 
	 	 	 	 	 
	 	 	EBITDA USD[                ]	 	 
	 	 	÷ Interest Expense     USD[                ]	 	 
	 	 	= EBITDA to Interest Expense ratio [                ]	 	[maximum 2:1]
	 	 	 	 	 
	13.2.25 (c)	 	Net Worth	 	 
	 	 	 	 	 
	 	 	Consolidated Total Assets     USD[                ]	 	 
	 	 	(minus) Consolidated	 	 
	 	 	Total Liabilities USD[                ]	 	 
	 	 	= Net Worth     [                %]	[min. USD150,000,000]

 

		3	We confirm that the VTL Coverage as at the date hereof
is [l] per cent.

 

		4	[We confirm that no Default is continuing.]1*

 

1 * If this statement cannot be
made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

    	132

    	

    

	Signed:		 		 
	 	 	 	 	 
	 	Officer	 	Officer	 
	 	 	 	 	 
	 	of	 	of	 
	 	 	 	 	 
	 	SAFE BULKERS, INC.	 	SAFE BULKERS, INC.	 

 

[insert applicable certification language]2**

 

 

 

 

[for and on behalf of

 

	[name of auditors of the Borrower]3***	]	 

 

 

2 ** To be agreed with the Borrower’s
auditors and the Lenders prior to signing the Agreement.

3 *** Only applicable if the
Compliance Certificate accompanies the audited financial statements and is to be signed by the auditors. To be agreed with
the Borrower’s auditors prior to signing the Agreement.

    	133

    	

    

Execution Page

 

THE BORROWER

 

	SAFE BULKERS, INC.	)
	 	)
	By:	)
	 	)
	Address: c/o Safe Bulkers Management	)
	Limited, 1 Aghias Fylaxeos	)
	Limassol, Cyprus	)
	Fax no.: +357 25887220	)
	Department/Officer: Konstantinos	)
	Adamopoulos	)

 

THE ARRANGER

 

	DNB BANK ASA	)
	 	)
	By:	)
	 	)
	Address: 8th Floor, The Walbrook Building	)
	25 Walbrook, London EC4N 8AF, England	)
	Fax no.: +44 207 283 5935	)
	Department/Officer: Shipping,	)
	Offshore & Logistics	)

 

THE AGENT

 

	DNB BANK ASA	)
	 	)
	By:	)
	 	)
	Address: 8th Floor, The Walbrook Building	)
	25 Walbrook, London EC4N 8AF, England	)
	Fax no.: +44 207 283 5935	)
	Department/Officer: Shipping,	)
	Offshore & Logistics	)

 

THE SECURITY AGENT

 

	DNB BANK ASA	)
	 	)
	By:	)
	 	)
	Address: 8th Floor, The Walbrook Building	)
	25 Walbrook, London EC4N 8AF, England	)
	Fax no.: +44 207 283 5935	)
	Department/Officer: Shipping,	)
	Offshore & Logistics	)

    	134

    	

    

THE ORIGINAL LENDERS

 

	DNB (UK) LIMITED	)
	 	)
	By:	)
	 	)
	Address: 8th Floor, The Walbrook Building	)
	25 Walbrook, London EC4N 8AF, England	)
	Fax no.: +44 207 626 5956	)
	Department/Officer: Shipping,	)
	Offshore & Logistics	)

 

THE SWAP PROVIDER

 

	DNB BANK ASA	)
	 	)
	By:	)
	 	)
	Address: 8th Floor, The Walbrook Building	)
	25 Walbrook, London EC4N 8AF, England	)
	Fax no.: +44 207 283 5935	)
	Department/Officer: Shipping,	)
	Offshore & Logistics	)

    	135

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