Document:

Exhibit 4.3

 

SAFE BULKERS, INC.,

 

POLYS HAJIOANNOU,

 

VORINI HOLDINGS INC.

 

- and -

 

MACHAIRIOTISSA HOLDINGS INC.

 

 

 

AMENDED AND RESTATED RESTRICTIVE COVENANT
AGREEMENT

 

 

 

 

    	 

    	

    

THIS AMENDED
AND RESTATED RESTRICTIVE COVENANT AGREEMENT (this “Agreement”) is made on May 29, 2015, and amends and restates
in its entirety that certain Restrictive Covenant Agreement, dated May 29, 2008, as amended by that certain Amendment No. 1 to
Restrictive Covenant Agreement, dated December 7, 2011, and that certain Amendment No. 2 to Restrictive Covenant Agreement, dated
February 25, 2014 (collectively, the “Original Agreement”),

 

BY AND BETWEEN:

 

(1)        SAFE BULKERS, INC.,
a Marshall Islands corporation (the “Company”);

 

(2)        POLYS HAJIOANNOU,
in his individual capacity (“P. Hajioannou”);

 

(3)        VORINI HOLDINGS INC.,
a Marshall Islands corporation (“Vorini Holdings”); and

 

(4)        MACHAIRIOTISSA HOLDINGS
INC., a Marshall Islands corporation (“Machairiotissa Holdings” and, together with P. Hajioannou, Vorini Holdings
and, together with any entity controlled by or under common control with Machairiotissa Holdings, P. Hajioannou and/or Vorini Holdings,
the “Hajioannou Entities”).

 

WHEREAS:

 

(A)       Pursuant to Section
8.1 of the Original Agreement, the parties thereto may amend the Original Agreement by an instrument in writing;

 

(B)       Pursuant to the Amended
and Restated Management Agreement by and between the Company and Safety Management Overseas S.A., a Panamanian corporation (the
“SMO Manager”), dated May 29, 2015 (the “SMO Management Agreement”) and the Management Agreement
by and between the Company and Safe Bulkers Management Limited, a Cypriot private limited company (the “Safe Bulkers Manager,”
together with the SMO Manager, the “Managers”), dated May 29, 2015 (the “Safe Bulkers Manager Management
Agreement,” together with the SMO Management Agreement, the “Management Agreements”), the Managers
have agreed to provide certain management services to the Company on an exclusive basis, restrict certain competitive activities
and grant a right of first offer to the Company to purchase their respective assets and properties upon the occurrence of certain
events, all as described therein; and

 

(C)        the Company wishes
to (i) limit the activities of each of the Hajioannou Entities, on the terms and conditions set out in this Agreement in order
to prohibit certain activities that may compete with the business of the Company and (ii) be granted a right of first offer to
purchase the Hajioannou Entities’ relevant interest in each of the Managers in the event of a potential change of control
of each such Manager, respectively.

 

NOW, THEREFORE, in consideration
of the terms and conditions set forth below and other good and valuable consideration (the receipt and sufficiency of which is
hereby acknowledged), the parties hereto agree as follows:

    	 

    	

    

Article
I

 

INTERPRETATION

 

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

 

(a)        “Affirmative Response” shall have the meaning set forth in Section 4.2(b).

 

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

 

(c)        “Board of Directors” means the board of directors of the Company as the same may be constituted from
time to time.

 

(d)       “Break Up Cost” means the aggregate amount of any and all costs including any taxes, registration fees,
administrative expenses, severance costs, and other similar costs and expenses that would be required to transfer Drybulk Vessels
or any other portion of a Non-Drybulk Acquisition that owns or operates Drybulk Vessels to the Company separately from the other
assets of the Non-Drybulk Acquisition.

 

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

 

(f)        “Company” shall have the meaning set forth in the preamble.

 

(g)        “Company Group” means, at any time, the Company and its subsidiaries at such time and “member of
the Company Group” shall be construed accordingly.

 

(h)        “Competitive Activities” shall have the meaning set forth in Section 3.1.

 

(i)        “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.

 

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

 

(k)        “Effective Date” means May 28, 2008.

 

(l)        “First Offer Notice” shall have the meaning set forth in Section 4.2(a).

 

(m)      “First Offer Period” means (i) 30 days in the case of a Permitted Acquisition First Offer Right and (ii)
30 days in the case of a Manager First Offer Right.

 

(n)        “Hajioannou Entities” shall have the meaning set forth in the preamble.

 

(o)        “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 U.S. Securities Exchange Act of 1934, as amended, and the listing criteria
of the New York Stock Exchange.

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(p)        “Machairiottisa Holdings” shall have the meaning set forth in the preamble.

 

(q)        “Management Agreements” shall have the meaning set forth in the recitals.

 

(r)        “Managers” shall have the meaning set forth in the recitals.

 

(s)        “Manager First Offer Right” shall have the meaning set forth in Section 4.1.

 

(t)        “Negative Response” shall have the meaning set forth in Section 4.2(b).

 

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

 

(v)        “Non-Drybulk Acquisition” means an acquisition or investment that includes (i) both Drybulk Vessels and
vessels other than Drybulk Vessels and/or (ii) any business that owns or operates Drybulk Vessels and vessels other than Drybulk
Vessels.

 

(w)       “P. Hajioannou” shall have the meaning set forth in the preamble.

 

(x)       “Permitted Acquisition” means an acquisition by any of the Hajioannou Entities of a Drybulk Vessel or
an acquisition of or investment in a Drybulk Vessel Business that (i) has been first offered to the Company and refused by the
majority of the Independent Directors and (ii) has been acquired or invested in by the relevant Hajioannou Entity 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 such Hajioannou Entity than those offered to the Company.

 

(y)        “Permitted Acquisition First Offer Right” shall have the meaning set forth in Section 3.2(a).

 

(z)        “Proposed Change in Control of a Manager” means:

 

(a) the approval
by the board of directors of a Manager or the shareholders of a Manager of a proposed sale of all or substantially all of the assets
or property of such Manager necessary for the performance of its services under this Agreement; or

 

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

 

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

 

(ii)   the Hajioannou
Entities together with all directors, officers and employees of a Manager beneficially owning, directly or indirectly, less than
80% of the 

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outstanding voting securities or voting power of such Manager or Machairiotissa Holdings, respectively.

 

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

 

(aa)       “Restricted Period” shall have the meaning set forth in Section 3.1.

 

(bb)
      “Safe Bulkers Manager Management Agreement” shall have the meaning set forth in the recitals.

 

(cc)
      “Safe Bulkers Manager” shall have the meaning set forth in the recitals.

 

(dd)
     “SMO Management Agreement” shall have the meaning set forth in the recitals.

 

(ee)
      “SMO Manager” shall have the meaning set forth in the recitals.

 

(ff)
       “Sale Transaction” shall have the meaning set forth in Section 4.2.

 

(gg)
      “Vorini Holdings” shall have the meaning set forth in the preamble.

 

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

 

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

 

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

 

Article
II

 

ACKNOWLEDGEMENT AND REPRESENTATION

 

Section
2.1       Each of the Hajioannou Entities acknowledges he or it has received and reviewed the Management Agreements.

 

Section
2.2       Each of P. Hajioannou and Machairiotissa Holdings hereby represents and warrants that as of the date of this Agreement,
Machairiotissa Holdings (a) owns at least 80% of the capital stock of each of the Managers and (b) holds at least 80% of the voting
power of the outstanding capital stock of each of the Managers considered, in each case, for this purpose as a single class.

 

Section
2.3       Each of the Hajioannou Entities acknowledges and agrees that, pursuant to the terms of each of the Management Agreements,
during the respective term of each such Management Agreement, if a Drybulk Vessel owned by the Company and a Drybulk Vessel owned
or operated, directly or indirectly, by any of the Hajioannou Entities (other than through

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 the Company) are both available and
meet the criteria for a charter being fixed by either of the Managers, the Company’s Drybulk Vessel shall receive such charter.

 

Article
III

 

NON-COMPETITION

 

Section 3.1      During the period commencing on the Effective Date and ending one year following the date on which both Management Agreements
have been terminated (such period the “Restricted Period”), each of the Hajioannou Entities shall not, subject
to Section 3.2 hereof, directly or indirectly, engage in (a) the ownership or operation of any Drybulk Vessel or (b) the
acquisition of or investment in any Drybulk Vessel Business, other than pursuant to (i) their involvement with the Company and
its subsidiaries and (ii) their involvement with a Manager, in compliance with the terms of the applicable Management Agreements,
as the same may be waived or amended from time to time (together, the “Competitive Activities”).

 

Section 3.2      Notwithstanding the foregoing, the Hajioannou Entities may engage in Competitive Activities in the following circumstances:

 

(a)
      with respect to any Permitted Acquisition; provided that, (i) in the event of any subsequent proposed sale
or transfer of legal or beneficial ownership (in whole or in part) of the Permitted Acquisition by any of the Hajioannou Entities
(other than to another Hajioannou Entity), the relevant Hajioannou Entity or Entities shall grant to the Company a right of first
offer on such proposed sale or transfer of ownership (the “Permitted Acquisition First Offer Right”), in accordance
with the procedures set forth in Section 4.2 and (ii) any commercial management of Drybulk Vessels that are controlled by
the Hajioannou Entities in connection with the Permitted Acquisition is performed by either of the Managers;

 

(b)
      with respect to any Drybulk Vessels or Drybulk Vessel Business included in a Non-Drybulk Acquisition; provided that
(i) less than 50% of the fair market value of the Non-Drybulk Acquisition is attributable to the Drybulk Vessels and any related
portion of such business that is solely dedicated to the ownership and operation of such Drybulk Vessels, (ii) the relevant Hajioannou
Entity or Entities promptly offer to sell the Drybulk Vessels and such related portion of the business to the Company for their
fair market value plus any Break Up Costs and the majority of the Independent Directors refuse such offer and (iii) any commercial
management of Drybulk Vessels that are controlled by the Hajioannou Entities in connection with such Non-Drybulk Acquisition is
performed by either of the Managers. For purposes of this Section 3.2(b), fair market values shall be determined in good
faith by the Board of Directors;

 

(c)
       passive ownership of up to 9.99% of the outstanding voting securities of any publicly traded company that is a Drybulk Vessel
Business in whole or in part; and

 

(d)
      with respect to a maximum of four (4) Drybulk Vessels on the water at any one time and with respect to contracts with shipyards
for newbuild DryBulk Vessels 

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to be, directly or indirectly, owned, operated or financed by P. Hajioannou as part of his estate
planning for the benefit of one or more of his children, provided that, in the same manner contemplated with respect to a Permitted
Acquisition, (i) prior to the acquisition of any such Drybulk Vessels or entry into any such newbuilding contracts, such Drybulk
Vessels or such newbuilding contracts (A) have been first offered to the Company and refused by the majority of the Independent
Directors and (B) have been acquired or invested in 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 acquiror than those offered to the Company; and (ii)
such DryBulk Vessels or such newbuilding contracts shall be subject to the Permitted Acquisition First Offer Right, and P. Hajioannou
shall cause any of his children who owns or controls such a Drybulk Vessels or who are party to such newbuilding contractsto comply
with such Permitted Acquisition First Offer Right. For the purpose of this Section 3.2(d) it is understood and agreed that
(i) the transfer of control of any such DryBulk Vessel or assignment or other transfer of such a newbuilding contract from P. Hajioannou
to any of his children shall not trigger a Permitted Acquisition First Offer Right and (ii) commercial management for such Drybulk
Vessels may be performed by either of the Managers or any other person.

 

Section
3.3       For the avoidance of doubt, nothing in this Agreement shall be construed to restrict the ability of any Hajioannou Entity
to acquire, invest in, operate, manage or charter any vessel other than Drybulk Vessels or any shipping-related business other
than a Drybulk Vessel Business.

 

Article
IV

 

CONTROL OF MANAGER; RIGHT
OF FIRST OFFER

 

Section
4.1        During the Restricted Period, in the event of a Proposed Change in Control of a Manager, the Company shall have a 30-day
right of first offer to purchase the relevant Hajioannou Entities’ direct or indirect interests in the Manager involved in
the Proposed Change in Control of a Manager (“Manager First Offer Right”). Set forth in Section 4.2 are
the procedures applicable to the Manager First Offer Right.

 

Section
4.2        Set forth below are the procedures applicable to the Permitted Acquisition First Offer Right and the Manager First Offer
Right. For purposes of this Section 4.2, the term “Sale Transaction” shall mean (i) the sale or transfer
of ownership of the Permitted Acquisition by the relevant Hajioannou Entities, as described in Section 3.2(a), in the case
of a Permitted Acquisition First Offer Right and (ii) a Proposed Change in Control of a Manager, as described in Section 4.1,
in the case of a Manager First Offer Right.

 

(a)      
Prior to engaging in any negotiations or otherwise offering to consummate a Sale Transaction with any third party, the relevant
Hajioannou Entity or Entities shall provide written notice of their intent to engage in a Sale Transaction (a “First Offer
Notice”) and shall specify in such First Offer Notice the material terms and conditions (including the consideration
to be paid, which shall be in cash) on which they would be willing to consummate a Sale Transaction with the Company, including
any liabilities to be assumed by the Company.

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(b)       
The Company shall notify the relevant Hajioannou Entity or Entities within the First Offer Period that either (i) the Company
does not wish to participate in a Sale Transaction (a “Negative Response”) or (ii) the Company does wish to
participate in a Sale Transaction, subject to the negotiation of the terms and conditions of the Sale Transaction in accordance
with the provisions of this Section 4.2 (an “Affirmative Response”).

 

(c)
       In the event of an Affirmative Response, the Company and the relevant Hajioannou Entity or Entities shall negotiate in good
faith during the First Offer Period the terms and conditions of an agreement for the consummation of a Sale Transaction with the
Company 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 Company and the relevant Hajioannou Entity or Entities are unable
to agree on the terms and conditions of an agreement for the consummation of a Sale Transaction during the First Offer Period,
then the relevant Hajioannou Entity or Entities may consummate a Sale Transaction within 120 days after the earlier of the date
the relevant Hajioannou Entity or Entities receive 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 a Sale Transaction is not consummated with a third party within 120 days after the earlier of the date of the Negative
Response and the end of the First Offer Period in accordance with clause (d) then the relevant Hajioannou Entity or Entities
shall not thereafter engage in a Sale Transaction without first offering the Company a Permitted Acquisition First Offer Right
or Manager First Offer Right, as applicable, in the manner provided above.

 

Section
4.3       The Hajioannou Entities and the Company acknowledge that all potential transfers pursuant to Section 3.2(a) and
this Article IV are subject to obtaining any and all written consents of governmental authorities and offer nonaffiliated third
parties.

 

Article
V

 

NOTICES

 

Section
5.1        All notices, consents and other communications hereunder, or necessary to exercise any rights granted hereunder, shall
be in writing, sent either by prepaid registered mail or telefax, and will be validly given if delivered on a Business Day to a
party at its respective address set forth below:

 

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Safe Bulkers, Inc.

c/o Safety Management Overseas S.A.

32 Avenue K. Karamanli

P.O. Box 70837

16605 Voula

Athens, Greece

Attention: Chief Executive Officer

Telefax: 30-210-895-6900

 

Polys Hajioannou

c/o Safety Management Overseas S.A.

32 Avenue K. Karamanli

P.O. Box 70837

16605 Voula

Athens, Greece

Attention: Polys Hajioannou

 

Vorini Holdings Inc.

c/o Safety Management Overseas S.A.

32 Avenue K. Karamanli

P.O. Box 70837

16605 Voula

Athens, Greece

Attention: George Papadopoulos

 

Machairiotissa Holdings Inc.

c/o Safety Management Overseas S.A.

32 Avenue K. Karamanli

P.O. Box 70837

16605 Voula

Athens, Greece

Attention: Antonios Prigkis

 

Article
VI

 

APPLICABLE LAW AND JURISDICTION

 

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

 

Article
VII

 

ARBITRATION

 

Section
7.1       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

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to the provisions of this Article XVII. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association
(LMAA) Terms current at the time when the arbitration proceedings are commenced.

 

Section
7.2        The reference shall be to three arbitrators. If the Company on the one hand or the Hajioannou Entities on the other
(with the Hajioannou Entities being treated as one party for the purposes of this Article VII) wishes to refer a dispute to arbitration,
that party 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.

 

Article
VIII

 

MISCELLANEOUS

 

Section
8.1       This Agreement 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, with the exception of the
Management Agreements. 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
8.2        It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any
particular provision of this Agreement is adjudicated to be invalid or unenforceable, such provision will be deemed amended to
delete therefrom the portion thus adjudicated as invalid or unenforceable, such deletion to apply only with respect to the operation
of such provision in the particular jurisdiction in which such adjudications is made.

 

Section
8.3       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.

 

[Remainder of page intentionally left blank.]

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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
	 	 
	 	POLYS HAJIOANNOU
	 	/s/ Polys Hajioannou
	 	 	 
	 	VORINI HOLDINGS INC.
	 	 
	 	By: /s/ Polys Hajioannou  

	 	Name: Polys Hajioannou
	 	Title: President
	 	 
	 	MACHAIRIOTISSA HOLDINGS INC.
	 	 
	 	By: /s/ Polys Hajioannou  

	 	Name: Polys Hajioannou
	 	Title: Director

 

[SIGNATURE PAGE FOR RESTRICTIVE COVENANT
AGREEMENT]Exhibit 4.4

 

SAFE BULKERS, INC.,

- and -

 

POLYS HAJIOANNOU

 

 

 

AMENDED AND RESTATED RESTRICTIVE COVENANT
AGREEMENT

 

 

 

 

    	 

    	

    

THIS AMENDED
AND RESTATED RESTRICTIVE COVENANT AGREEMENT (this “Agreement”) is made on May 29, 2015, and amends and restates
in its entirety that certain Restrictive Covenant Agreement, dated May 29, 2008, as amended by that certain Amendment No. 1 to
Restrictive Covenant Agreement, dated February 25, 2014 (together, the “Original Agreement”),

 

BY AND BETWEEN:

 

(1)        SAFE
BULKERS, INC., a Marshall Islands corporation (the “Company”); and

 

(2)        POLYS
HAJIOANNOU, in his individual capacity (“P. Hajioannou”).

 

WHEREAS:

 

(A)        Pursuant
to Section 8.1 of the Original Agreement, the parties thereto may amend the Original Agreement by an instrument in writing;

 

(B)        Pursuant
to the Amended and Restated Restrictive Covenant Agreement by and between the Company and P. Hajioannou, Vorini Holdings, Inc.,
a Marshall Islands corporation (“Vorini Holdings”), and Machairiotissa Holdings Inc., a Marshall Islands corporation
(“Machairiotissa Holdings” and, together with P. Hajioannou, Vorini Holdings and, together with any entity controlled
by or under common control with Machairiotissa Holdings, P. Hajioannou and/or Vorini Holdings, the “Hajioannou Entities”),
dated May 29, 2015 (the “Hajioannou Entities Restrictive Covenant Agreement”), the Hajioannou Entities: (i)
are prohibited from conducting certain activities that may compete with the business of the Company and (ii) granted a right of
first offer to purchase the Hajioannou Entities’ relevant interest in each of Safety Management Overseas S.A., a Panamanian
corporation (the “SMO Manager”), and Safe Bulkers Management Limited, a Cypriot private limited company (the
“Safe Bulkers Manager,” together with the SMO Manager, the “Managers”), in the event of a
potential change of control of each such Manager, respectively; and

 

(C)        the
Company wishes to limit the activities of P. Hajioannou in his capacity as a director or employee of the Company, and any entity
controlled by P. Hajioannou (“P. Hajioannou Entity”), on the terms and conditions set out in this Agreement
to prohibit certain activities that may compete with the business of the Company.

 

NOW, THEREFORE, in consideration
of the terms and conditions set forth below and other good and valuable consideration (the receipt and sufficiency of which is
hereby acknowledged), the parties hereto agree as follows:

 

Article
I

INTERPRETATION

 

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

 

(a)        “Affirmative
Response” shall have the meaning set forth in Section 4.1(b).

    	 

    	

    

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

 

(c)        “Board
of Directors” means the board of directors of the Company as the same may be constituted from time to time.

 

(d)        “Break
Up Cost” means the aggregate amount of any and all costs including any taxes, registration fees, administrative expenses,
severance costs, and other similar costs and expenses that would be required to transfer Drybulk Vessels or any other portion of
a Non-Drybulk Acquisition that owns or operates Drybulk Vessels to the Company separately from the other assets of the Non-Drybulk
Acquisition.

 

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

 

(f)        “Company”
shall have the meaning set forth in the preamble.

 

(g)        “Company
Group” means, at any time, the Company and its subsidiaries at such time and “member of the Company Group”
shall be construed accordingly.

 

(h)        “Competitive
Activities” shall have the meaning set forth in Section 3.1.

 

(i)        “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.

 

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

 

(k)        “Effective
Date” means May 28, 2008.

 

(l)        “First
Offer Notice” shall have the meaning set forth in Section 4.1(a).

 

(m)        “First
Offer Period” means 30 days in the case of a Permitted Acquisition First Offer Right.

 

(n)        “Hajioannou
Entities” shall have the meaning set forth in the recitals.

 

(o)        “Hajioannou
Entities Restrictive Covenant Agreement” shall have the meaning set forth in the recitals.

 

(p)        “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 U.S. Securities Exchange Act of 1934, as amended, and the listing criteria of the New York Stock
Exchange.

 

(q)        “Machairiotissa
Holdings” shall have the meaning set forth in the recitals.

 

(r)        “Management
Agreements” means the Safe Bulkers Manager Management Agreement and the SMO Management Agreement.

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(s)        “Managers”
shall have the meaning set forth in the recitals.

 

(t)        “Negative
Response” shall have the meaning set forth in Section 4.1(b).

 

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

 

(v)        “Non-Drybulk
Acquisition” means an acquisition or investment that includes (i) both Drybulk Vessels and vessels other than Drybulk
Vessels and/or (ii) any business that owns or operates Drybulk Vessels and vessels other than Drybulk Vessels.

 

(w)        “Permitted
Acquisition” means an acquisition by P. Hajioannou of a Drybulk Vessel or an acquisition of or investment in a Drybulk
Vessel Business that (i) has been first offered to the Company and refused by the majority of the Independent Directors and (ii)
has been acquired or invested in by P. Hajioannou 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 P. Hajioannou than those offered to the Company.

 

(x)        “Permitted
Acquisition First Offer Right” shall have the meaning set forth in Section 3.2(a).

 

(y)        “P.
Hajioannou” shall have the meaning set forth in the preamble.

 

(z)        “P.
Hajioannou Entity” shall have the meaning set forth in the recitals, and “P. Hajioannou Entities”
shall have a corresponding meaning.

 

(aa)        “Restricted
Period” shall mean the period commencing on the Effective Date and ending one year following the later of (i) the termination
of P. Hajioannou’s service with the Company as a director and (ii) the termination of P. Hajioannou’s service with
the Company as an employee.

 

(bb)        “Safe
Bulkers Manager Management Agreement” means the Management Agreement between the Company and the Safe Bulkers Manager,
dated on or about the date of this Agreement.

 

(cc)        “Safe
Bulkers Manager” shall have the meaning set forth in the recitals.

 

(dd)        “SMO
Management Agreement” means the Amended and Restated Management Agreement between the Company and the SMO Manager, dated
on or about the date of this Agreement.

 

(ee)        “SMO
Manager” shall have the meaning set forth in the recitals.

 

(ff)        “Sale
Transaction” shall have the meaning set forth in Section 4.1.

 

(gg)        “Vorini
Holdings” shall have the meaning set forth in the recitals.

    	3

    	

    

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

 

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

 

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

 

Article
II

ACKNOWLEDGEMENT

 

Section
2.1        P. Hajioannou acknowledges he has received and reviewed the
Management Agreements.

 

Section
2.2        P. Hajioannou acknowledges and agrees that, pursuant to the
terms of the Management Agreements, during the respective terms of each of the Management Agreements, if a Drybulk Vessel owned
by the Company and a Drybulk Vessel owned or operated, directly or indirectly, by P. Hajioannou or any P. Hajioannou Entity (other
than through the Company) are both available and meet the criteria for a charter being fixed by either of the Managers, the Company’s
Drybulk Vessel shall receive such charter.

 

Article
III

NON-COMPETITION

 

Section
3.1        During the Restricted Period, P. Hajioannou shall and procures
that the P. Hajioannou Entities shall, subject to Section 3.2 hereof, not directly or indirectly, engage in (a) the ownership
or operation of any Drybulk Vessel or (b) the acquisition of or investment in any Drybulk Vessel Business, other than pursuant
to his involvement with (i) any member of the Company Group, or (ii) a Manager, in compliance with the restrictions on competitive
activities set out in the Management Agreements, as the same may be waived or amended from time to time (together, (a) and (b)
are defined as the “Competitive Activities”).

 

Section
3.2        Notwithstanding the foregoing, P. Hajioannou may engage in
Competitive Activities (including through any other P. Hajioannou Entity) in the following circumstances:

 

(a)        with
respect to any Permitted Acquisition; provided that, (i) in the event of any subsequent proposed sale or transfer
of legal or beneficial ownership (in whole or in part) of the Permitted Acquisition by P. Hajioannou directly or indirectly through
a P. Hajioannou Entity (other than to another Hajioannou Entity), P. Hajioannou shall grant to the Company a right of first offer
on such proposed sale or transfer of ownership (the “Permitted Acquisition First Offer Right”), in accordance
with the procedures set forth in Section 4.1 and (ii) any commercial management of Drybulk Vessels that are controlled by
P. Hajioannou (including through any other P. Hajioannou Entity) in connection with the Permitted Acquisition is performed by either
of the Managers;

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(b)        with
respect to any Drybulk Vessels or Drybulk Vessel Business included in a Non-Drybulk Acquisition; provided that (i)
less than 50% of the fair market value of the Non-Drybulk Acquisition is attributable to the Drybulk Vessels and any related portion
of such business that is solely dedicated to the ownership and operation of such Drybulk Vessels, (ii) P. Hajioannou promptly offers
to sell the Drybulk Vessels and such related portion of the business to the Company for their fair market value plus any Break
Up Costs and the majority of the Independent Directors refuse such offer and (iii) any commercial management of Drybulk Vessels
that are controlled by P. Hajioannou in connection with such Non-Drybulk Acquisition is performed by either of the Managers. For
purposes of this Section 3.2(b), fair market values shall be determined in good faith by the Board of Directors;

 

(c)        passive
ownership of up to 9.99% of the outstanding voting securities of any publicly traded company that is a Drybulk Vessel Business
in whole or in part; and

 

(d)        with
respect to a maximum of four (4) Drybulk Vessels on the water at any one time and with respect to contracts with shipyards for
newbuild DryBulk Vessels to be, directly or indirectly, owned, operated or financed by P. Hajioannou as part of his estate planning
for the benefit of one or more of his children, provided that, in the same manner contemplated with respect to a Permitted Acquisition,
(i) prior to the acquisition of any such Drybulk Vessels or entry into any such newbuilding contracts, such Drybulk Vessels or
such newbuilding contracts (A) have been first offered to the Company and refused by the majority of the Independent Directors
and (B) have been acquired or invested in 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 acquiror than those offered to the Company; and (ii) such DryBulk
Vessels or such newbuilding contracts shall be subject to the Permitted Acquisition First Offer Right, and P. Hajioannou shall
cause any of his children who owns or controls such a Drybulk Vessels or who are party to such newbuilding contracts to comply
with such Permitted Acquisition First Offer Right. For the purpose of this Section 3.2(e), it is understood and agreed that
(i) the transfer of control of any such DryBulk Vessel or assignment or other transfer of such a newbuilding contract from P. Hajioannou
to any of his children shall not trigger a Permitted Acquisition First Offer Right and (ii) commercial management for such Drybulk
Vessels may be performed by either of the Managers or any other person.

 

Section
3.3        For the avoidance of doubt, nothing in this Agreement shall
be construed to restrict the ability of P. Hajioannou or any other P. Hajioannou Entity to acquire, invest in, operate, manage
or charter any vessel other than Drybulk Vessels or any shipping-related business other than a Drybulk Vessel Business.

 

Article
IV

RIGHT OF FIRST OFFER

 

Section
4.1        Set forth below are the procedures applicable to the Permitted
Acquisition First Offer Right. For purposes of this Section 4.1, the term “Sale Transaction” shall mean
the sale or transfer of ownership of the Permitted Acquisition by P. Hajioannou (directly,

    	5

    	

    

or indirectly through
a P. Hajioannou Entity), as described in Section 3.2(a), in the case of a Permitted Acquisition First Offer Right.

 

(a)        Prior
to engaging in any negotiations or otherwise offering to consummate a Sale Transaction with any third party, P. Hajioannou shall
provide written notice of his intent to engage in a Sale Transaction (a “First Offer Notice”) and shall specify
in such First Offer Notice the material terms and conditions (including the consideration to be paid, which shall be in cash) on
which he would be willing to consummate a Sale Transaction with the Company, including any liabilities to be assumed by the Company.

 

(b)        The
Company shall notify P. Hajioannou within the First Offer Period that either (i) the Company does not wish to participate in a
Sale Transaction (a “Negative Response”) or (ii) the Company does wish to participate in a Sale Transaction,
subject to the negotiation of the terms and conditions of the Sale Transaction in accordance with the provisions of this Section
4.1 (an “Affirmative Response”).

 

(c)        In
the event of an Affirmative Response, the Company and P. Hajioannou shall negotiate in good faith during the First Offer Period
the terms and conditions of an agreement for the consummation of a Sale Transaction with the Company 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 Company and P. Hajioannou are unable to agree on the terms and conditions
of an agreement for the consummation of a Sale Transaction during the First Offer Period, then P. Hajioannou may consummate a Sale
Transaction within 120 days after the earlier of the date P. Hajioannou 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
a Sale Transaction is not consummated with a third party within 120 days after the earlier of the date of the Negative Response
and the end of the First Offer Period in accordance with clause (d) then P. Hajioannou shall not thereafter engage in a Sale Transaction
without first offering the Company a Permitted Acquisition First Offer Right in the manner provided above.

 

Section
4.2        P. Hajioannou and the Company acknowledge that all potential
transfers pursuant to Section 3.2(a) and this Article IV are subject to obtaining any and all written consents of governmental
authorities and offer non-affiliated third parties.

 

Article
V

NOTICES

 

Section
5.1        All notices, consents and other communications hereunder,
or necessary to exercise any rights granted hereunder, shall be in writing, sent either by prepaid

    	6

    	

    

registered mail or telefax,
and will be validly given if delivered on a Business Day to a party at its respective address set forth below:

 

Safe Bulkers, Inc.

c/o Safety Management Overseas S.A.

32 Avenue K. Karamanli

P.O. Box 70837

16605 Voula

Athens, Greece

Attention: Chief Executive Officer

Telefax: 30-210-895-6900

 

Polys Hajioannou

c/o Safety Management Overseas S.A.

32 Avenue K. Karamanli

P.O. Box 70837

16605 Voula

Athens, Greece

Attention: Polys Hajioannou

 

Article
VI

APPLICABLE LAW AND JURISDICTION

 

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

 

Article
VII

ARBITRATION

 

Section
7.1        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 VII. The arbitration shall be conducted
in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings
are commenced.

 

Section
7.2        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

 

    	7

    	

    

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.

 

Article
VIII

MISCELLANEOUS

 

Section
8.1        This Agreement 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, with the exception of the Hajioannou Entities Restrictive Covenant Agreement and the Management
Agreements. 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
8.2        It is the desire and intent of the parties hereto that the
provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction
in which enforcement is sought. Accordingly, if any particular provision of this Agreement is adjudicated to be invalid or unenforceable,
such provision will be deemed amended to delete therefrom the portion thus adjudicated as invalid or unenforceable, such deletion
to apply only with respect to the operation of such provision in the particular jurisdiction in which such adjudications is made.

 

Section
8.3        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.

 

[Remainder of page intentionally left blank.]

    	8

    	

    

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
	 	 
	 	POLYS HAJIOANNOU
	 	/s/ Polys Hajioannou

 

[SIGNATURE PAGE TO THE POLYS HAJIOANNOU RESTRICTIVE
COVENANT AGREEMENT]

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