Document:

Exhibit 10.51 

	
 

	
 

	
Private &
 Confidential 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Dated 23 May 2008

	
 

	
 

	
 

	
SAFE BULKERS, INC.

	
(1)

	
 

	
 

	
and

	
 

	
 

	
 

	
THE ROYAL BANK OF SCOTLAND PLC

	
(2)

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
CORPORATE GUARANTEE

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	

Contents

	
 

	
 

	
 

	
 

	
Clause

	
 

	
Page

	
1

	
 

	
Interpretation

	
1

	
 

	
2

	
 

	
Guarantee

	
5

	
 

	
3

	
 

	
Payments and Taxes

	
8

	
 

	
4

	
 

	
Representations
 and warranties

	
9

	
 

	
5

	
 

	
Undertakings

	
12

	
 

	
6

	
 

	
Set-off

	
15

	
 

	
7

	
 

	
Benefit of this
 Guarantee

	
15

	
 

	
8

	
 

	
Notices and other
 matters

	
15

	
 

	
9

	
 

	
Law and
 jurisdiction

	
17

	
 

	
 

	
 

	
 

	
 

	
Schedule 1 Form of
 Compliance Certificate

	
18

	
 

	
 

	
          THIS
 GUARANTEE is dated 23 May 2008 and made BETWEEN:

	
 

	
 

	
  (1)

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

	
 

	
 

	
  (2)

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

	
 

	
 

	
          WHEREAS:

	
 

	
 

	
  (A)

	
by a loan
 agreement dated 19 November 2007 as amended and supplemented by a
 supplemental agreement dated 23 May 2008 (together the “Agreement”) each made between (1) Soffive
 Shipping Corporation as borrower (the “Borrower”)
 and (2) the Bank, the Bank has agreed, upon and subject to the terms and
 conditions of the Agreement, to make (and has made) available to the
 Borrower, a multi-currency loan facility of up to US$45,000,000; 

	
 

	
 

	
  (B)

	
by a 1992 ISDA
 master agreement (including a schedule thereto) dated as of 19 November 2007
 (the “Master Swap Agreement”)
 and made between the Borrower and the Bank, the Bank agreed the terms and
 conditions upon which it would enter into interest rate swap or other
 derivative transactions with the Borrower in respect of the Loan, whether in
 whole or in part (as the case may be) from time to time; and 

	
 

	
 

	
  (C)

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

	
 

	
 

	
          IT
 IS AGREED as follows: 

	
 

	
 

	
   1

	
Interpretation 

	
 

	
 

	
1.1

	
Defined
 expressions 

	
 

	
 

	
 

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

	
 

	
 

	
1.2

	
Definitions
 

	
 

	
 

	
 

	
In this Guarantee,
 unless the context otherwise requires: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

1

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
(a)

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

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
(c)

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

	
 

	
 

	
 

	
 

	
(d)

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

	
 

	
 

	
 

	
 

	
(e)

	
deducting all
 amounts attributable to minority interests in Subsidiaries; 

	
 

	
 

	
 

	
 

	
(f)

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

	
 

	
 

	
 

	
 

	
(g)

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

	
 

	
 

	
 

	
 

	
(h)

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

	
 

	
 

	
 

	
 

	
(i)

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

2

	
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
(j)

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

	
 

	
 

	
 

	
 

	
(k)

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

	
 

	
 

	
 

	
 

	
(l)

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

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
(a)

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

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
and all as
 adjusted by:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
adding back
 Consolidated Net Interest Expense; 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
taking no account
 of any exceptional or extraordinary item;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
adding back
 depreciation and amortisation; and 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

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

3

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
(a)

	
Borrowed Money of
 the debtor; 

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
(c)

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

	
 

	
 

	
 

	
 

	
(d)

	
deferred tax of
 the debtor; and 

	
 

	
 

	
 

	
 

	
(e)

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

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

4

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
1.3

	
 

	
Headings
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
1.4

	
 

	
Construction
 of certain terms 

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee,
 unless the context otherwise requires: 

	
 

	
 

	
 

	
1.4.1

	
 

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

	
 

	
 

	
 

	
1.4.2

	
 

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

	
 

	
 

	
 

	
1.4.3

	
 

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

	
 

	
 

	
 

	
1.4.4

	
 

	
references to a
 time of day are to London time; 

	
 

	
 

	
 

	
1.4.5

	
 

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

	
 

	
 

	
 

	
1.4.6

	
 

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

	
 

	
 

	
 

	
1.4.7

	
 

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

	
 

	
 

	
 

	
2

	
 

	
Guarantee 

	
 

	
 

	
 

	
2.1

	
 

	
Covenant
 to pay 

	
 

	
 

	
 

	
 

	
 

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

5

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.2

	
 

	
Guarantor
 as principal debtor; indemnity 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.3

	
 

	
Statements
 of account conclusive 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.4

	
 

	
No
 security taken by Guarantor 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.5

	
 

	
Interest
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.6

	
 

	
Continuing
 security and other matters 

	
 

	
 

	
 

	
 

	
 

	
This Guarantee
 shall: 

	
 

	
 

	
 

	
2.6.1

	
 

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

	
 

	
 

	
 

	
2.6.2

	
 

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

	
 

	
 

	
 

	
2.6.3

	
 

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

6

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.7

	
 

	
Liability
 unconditional 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.7.1

	
 

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

	
 

	
 

	
 

	
2.7.2

	
 

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

	
 

	
 

	
 

	
2.7.3

	
 

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

	
 

	
 

	
 

	
2.8

	
 

	
Collateral
 Instruments 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.9

	
 

	
Waiver
 of Guarantor’s rights 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.9.1

	
 

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

	
 

	
 

	
 

	
2.9.2

	
 

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

	
 

	
 

	
 

	
2.9.3

	
 

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

	
 

	
 

	
 

	
2.9.4

	
 

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

7

	
 

	
 

	
 

	
2.10

	
 

	
Suspense
 accounts 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.11

	
 

	
Settlements
 conditional 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.12

	
 

	
Guarantor
 to deliver up certain property 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.13

	
 

	
Retention
 of this Guarantee 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
3

	
 

	
Payments and
 Taxes 

	
 

	
 

	
 

	
3.1

	
 

	
No
 set off or counterclaim 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
3.2

	
 

	
Grossing
 up for Taxes 

	
 

	
 

	
 

	
 

	
 

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

8

	
 

	
 

	
 

	
3.3

	
 

	
Currency
 indemnity 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4

	
 

	
Representations
 and warranties 

	
 

	
 

	
 

	
4.1

	
 

	
Continuing
 representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
 represents and warrants that: 

	
 

	
 

	
 

	
4.1.1

	
 

	
Due incorporation 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.2

	
 

	
Corporate power to
 guarantee 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.3

	
 

	
Binding
 obligations 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.4

	
 

	
No conflict with
 other obligations 

	
 

	
 

	
 

	
 

	
 

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

9

	
 

	
 

	
 

	
4.1.5

	
 

	
No litigation 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.6

	
 

	
No filings
 required 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.7

	
 

	
Choice of law 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.8

	
 

	
No immunity 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.9

	
 

	
Consents obtained 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.10

	
 

	
No material
 adverse change 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2

	
 

	
Initial
 representations and warranties 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.1

	
 

	
Pari passu 

	
 

	
 

	
 

	
 

	
 

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

10

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.2

	
 

	
No default under
 other Indebtedness 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.3

	
 

	
Information 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.4

	
 

	
No withholding
 Taxes 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.5

	
 

	
No Default 

no
 Default has occurred and is continuing; and

	
 

	
 

	
 

	
4.2.6

	
 

	
Shareholdings 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.3

	
 

	
Repetition
 of representations and warranties 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.3.1

	
 

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

	
 

	
 

	
 

	
4.3.2

	
 

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

11

	
 

	
 

	
 

	
5

	
 

	
Undertakings 

	
 

	
 

	
 

	
5.1

	
 

	
General
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.1

	
 

	
Notice of default 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.2

	
 

	
Consents and
 licences 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.3

	
 

	
Pari passu 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.4

	
 

	
Financial
 statements 

	
 

	
 

	
 

	
 

	
 

	
prepare or cause to
 be prepared: 

	
 

	
 

	
 

	
 

	
(a)

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

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.5

	
 

	
Valuations and
 Compliance Certificate 

	
 

	
 

	
 

	
 

	
(a)

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

12

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
5.1.6

	
 

	
Liquidity 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.7

	
 

	
Delivery of
 reports 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.8

	
 

	
Provision of
 further information 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2

	
 

	
Negative
 undertakings 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.1

	
 

	
Negative pledge 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.2

	
 

	
No merger 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.3

	
 

	
Other business 

	
 

	
 

	
 

	
 

	
 

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

13

	
 

	
 

	
 

	
5.2.4

	
 

	
Distributions 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.5

	
 

	
Shareholdings 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.6

	
 

	
Financial year 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.3

	
 

	
Financial
 undertakings 

	
 

	
 

	
 

	
5.3.1

	
 

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

	
 

	
 

	
 

	
 

	
(a)

	
Consolidated
 Adjusted Net Worth 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
(b)

	
Consolidated
 Adjusted Leverage Ratio 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
(c)

	
Consolidated Debt
 Service Ratio 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.3.2

	
 

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

	
 

	
 

	
 

	
5.3.3

	
 

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

	
 

	
 

	
 

	
5.3.4

	
 

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

	
 

	
 

	
 

	
5.3.5

	
 

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

14

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
6

	
 

	
Set-off 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7

	
 

	
Benefit of this
 Guarantee 

	
 

	
 

	
 

	
7.1

	
 

	
Benefit
 and burden 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7.2

	
 

	
Changes
 in constitution or reorganisation of Bank 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7.3

	
 

	
No
 assignment by Guarantor 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7.4

	
 

	
Disclosure
 of information 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8

	
 

	
Notices and
 other matters 

	
 

	
 

	
 

	
8.1

	
 

	
Notices
 

	
 

	
 

	
 

	
 

	
 

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

15

	
 

	
 

	
 

	
 

	
8.1.1

	
 

	
if to the
  Guarantor at: 

	
 

	
 

	
 

	
32 Karamanli
  Avenue 
166 05 Voula 
Greece 

	
 

	
 

	
 

	
Fax No:

	
+30 210
  8956900  

	
 

	
 

	
Attention:

	
 George Papadopoulos 

	
 

	
8.1.2

	
 

	
if to the
  Bank at: 

	
 

	
 

	
 

	
The Shipping
  Business Centre 

  5-10 Great Tower Street 

  London EC3P 3HX 

  England 

	
 

	
 

	
 

	
 

	
 

	
Fax: 

	
+44 207 085
  7132

	
 

	
 

	
Attention: 

	
Shipping
  Business Centre

	
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.2

	
 

	
No implied waivers, remedies cumulative 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.3

	
 

	
English translations 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.4

	
 

	
Other guarantors 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.5

	
 

	
Expenses 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.6

	
 

	
Partial invalidity 

	
 

	
 

	
 

	
 

	
 

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

16

	
 

	
 

	
 

	
8.7

	
 

	
Maximum liability 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
9

	
 

	
Law and
  jurisdiction 

	
 

	
 

	
 

	
9.1

	
 

	
Law 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
9.2

	
 

	
Submission to jurisdiction 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
9.3

	
 

	
Contracts (Rights of Third Parties) Act 1999 

	
 

	
 

	
 

	
 

	
 

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

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

17

Schedule 1

Form of Compliance Certificate

	
 

	
 

	
To:

	
THE ROYAL
  BANK OF SCOTLAND PLC 

	
 

	
 

	
From:

	
SAFE
  BULKERS, INC. 

	
 

	
 

	
Dated: [•] 

US$45,000,000 Loan Agreement dated 19 November 2007, as
amended (the “Loan Agreement”) - Corporate Guarantee dated [•] 2008
(the “Corporate Guarantee”) 

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

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

	
 

	
 

	
 

	
1

	
Financial covenants 

	
 

	
 

	
 

	
(a)

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

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
(c)

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

	
 

	
 

	
 

	
 

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

	
 

	
 

	
2

	
Default 

	
 

	
 

	
 

	
[No Default
  has occurred and is continuing] 

	
 

	
 

	
 

	
or 

	
 

	
 

	
 

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

	
 

	
 

	
Signed:

	
 

	
 

	

	
 

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

	
 

	
 

	
 

	
For and on
  behalf of:

	
 

	
SAFE BULKERS, INC.

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

	
 

	
 

	
Signed:

	
 

	
 

	

	
 

	
Chief
  Financial Officer

	
 

	
For and on
  behalf of

	
 

	
SAFE BULKERS, INC.

18

	
 

	
 

	
 

	
EXECUTED as a DEED

	
)

	
 

	
by

	
)

	
 

	
for and on
  behalf of

	
)

	
 

	
SAFE BULKERS, INC.

	
)

	

	
in the
  presence of:

	
)

	
Attorney-in-Fact

	
 

	
 

	
 

	

	
 

	
 

	
Witness

	
 

	
 

	
Name:

	
 

	
 

	
Address:

	
 

	
 

	
Occupation:

	
 

	
 

	
 

	
 

	
 

	
EXECUTED as a DEED

	
)

	
 

	
by

	
)

	
 

	
for and on
  behalf of

	
)

	
 

	
THE ROYAL BANK OF SCOTLAND PLC

	
)

	

	
in the
  presence of:

	
)

	
Authorised
  signatory

	
 

	
 

	
 

	

	
 

	
 

	
Witness

	
 

	
 

	
Name:

	
 

	
 

	
Address:

	
 

	
 

	
Occupation:

	
 

	
 

19Exhibit 10.52 

Private & Confidential 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
              Dated
  23 May 2008

	
 

	
 

	
 

	
 

	
 

	
              SAFE
  BULKERS, INC.

	
(1)

	
 

	
 

	
         and

	
 

	
 

	
 

	
           THE
  ROYAL BANK OF SCOTLAND PLC

	
(2)

CORPORATE GUARANTEE

Contents

	
 

	
 

	
 

	
 

	
 

	
Clause

	
 

	
 

	
 

	
Page

	
 

	
1

	
 

	
Interpretation

	
 

	
1

	
 

	
2

	
 

	
Guarantee

	
 

	
5

	
 

	
3

	
 

	
Payments and Taxes

	
 

	
8

	
 

	
4

	
 

	
Representations
  and warranties

	
 

	
9

	
 

	
5

	
 

	
Undertakings

	
 

	
12

	
 

	
6

	
 

	
Set-off

	
 

	
15

	
 

	
7

	
 

	
Benefit of this
  Guarantee

	
 

	
15

	
 

	
8

	
 

	
Notices and other
  matters

	
 

	
15

	
 

	
9

	
 

	
Law and
  jurisdiction

	
 

	
17

	
 

	
Schedule 1 Form of
  Compliance Certificate

	
 

	
18

THIS GUARANTEE is dated 23 May 2008 and made BETWEEN:

	
 

	
 

	
(1)

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

	
 

	
 

	
(2)

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

WHEREAS: 

	
 

	
 

	
(A)

	
by a loan
  agreement dated 16 February 2005 as amended and supplemented by a
  supplemental agreement dated 23 May 2008 (together the “Agreement”) each made between (1)
  Marathassa Shipping Corporation as borrower (the “Borrower”) and (2) the Bank, the Bank has agreed, upon and
  subject to the terms and conditions of the Agreement, to make (and has made)
  available to the Borrower, a multi-currency loan facility of up to
  US$28,000,000; 

	
 

	
 

	
(B)

	
by a 1992 ISDA
  master agreement (including a schedule thereto) dated as of 16 February 2005
  (the “Master Swap Agreement”)
  and made between the Borrower and the Bank, the Bank agreed the terms and
  conditions upon which it would enter into interest rate swap or other
  derivative transactions with the Borrower in respect of the Loan, whether in
  whole or in part (as the case may be) from time to time; and 

	
 

	
 

	
(C)

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

IT IS AGREED as follows: 

	
 

	
 

	
   1

	
Interpretation 

	
 

	
 

	
1.1

	
Defined
  expressions 

	
 

	
 

	
 

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

	
 

	
 

	
1.2

	
Definitions
  

	
 

	
 

	
 

	
In this Guarantee,
  unless the context otherwise requires:

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

1

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

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

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

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

	
 

	
 

	
(a)

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

	
 

	
 

	
(b)

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

	
 

	
 

	
(c)

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

	
 

	
 

	
(d)

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

	
 

	
 

	
(e)

	
deducting all
  amounts attributable to minority interests in Subsidiaries; 

	
 

	
 

	
(f)

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

	
 

	
 

	
(g)

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

	
 

	
 

	
(h)

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

	
 

	
 

	
(i)

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

2

	
 

	
 

	
 

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

	
 

	
 

	
(j)

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

	
 

	
 

	
(k)

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

	
 

	
 

	
(l)

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

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

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

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

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

	
 

	
 

	
 

	
 

	
(a)

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

	
 

	
 

	
(b)

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

	
 

	
and all as
  adjusted by: 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
adding back
  Consolidated Net Interest Expense; 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
taking no account
  of any exceptional or extraordinary item; 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
adding back
  depreciation and amortisation; and 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

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

3

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

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

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

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

	
 

	
 

	
(a)

	
Borrowed Money of
 the debtor; 

	
 

	
 

	
(b)

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

	
 

	
 

	
(c)

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

	
 

	
 

	
(d)

	
deferred tax of
 the debtor; and 

	
 

	
 

	
(e)

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

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

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

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

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

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

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

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

4

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
1.3

	
 

	
Headings
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
1.4

	
 

	
Construction
 of certain terms 

	
 

	
 

	
 

	
 

	
 

	
In this Guarantee,
 unless the context otherwise requires:

	
 

	
 

	
 

	
1.4.1

	
 

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

	
 

	
 

	
 

	
1.4.2

	
 

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

	
 

	
 

	
 

	
1.4.3

	
 

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

	
 

	
 

	
 

	
1.4.4

	
 

	
references to a
 time of day are to London time;

	
 

	
 

	
 

	
1.4.5

	
 

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

	
 

	
 

	
 

	
1.4.6

	
 

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

	
 

	
 

	
 

	
1.4.7

	
 

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

	
 

	
 

	
 

	
2

	
 

	
Guarantee 

	
 

	
 

	
 

	
2.1

	
 

	
Covenant
 to pay 

	
 

	
 

	
 

	
 

	
 

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

5

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.2

	
 

	
Guarantor
 as principal debtor; indemnity 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.3

	
 

	
Statements
 of account conclusive 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.4

	
 

	
No
 security taken by Guarantor 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.5

	
 

	
Interest
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.6

	
 

	
Continuing
 security and other matters 

	
 

	
 

	
 

	
 

	
 

	
This Guarantee
 shall:

	
 

	
 

	
 

	
2.6.1

	
 

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

	
 

	
 

	
 

	
2.6.2

	
 

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

	
 

	
 

	
 

	
2.6.3

	
 

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

6

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.7

	
 

	
Liability
 unconditional 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.7.1

	
 

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

	
 

	
 

	
 

	
2.7.2

	
 

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

	
 

	
 

	
 

	
2.7.3

	
 

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

	
 

	
 

	
 

	
2.8

	
 

	
Collateral
 Instruments 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.9

	
 

	
Waiver
 of Guarantor’s rights 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.9.1

	
 

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

	
 

	
 

	
 

	
2.9.2

	
 

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

	
 

	
 

	
 

	
2.9.3

	
 

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

	
 

	
 

	
 

	
2.9.4

	
 

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

7

	
 

	
 

	
 

	
2.10

	
 

	
Suspense
 accounts 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.11

	
 

	
Settlements
 conditional 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.12

	
 

	
Guarantor
 to deliver up certain property 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2.13

	
 

	
Retention
 of this Guarantee 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
3

	
 

	
Payments and
 Taxes 

	
 

	
 

	
 

	
3.1

	
 

	
No
 set off or counterclaim 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
3.2

	
 

	
Grossing
 up for Taxes 

	
 

	
 

	
 

	
 

	
 

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

8

	
 

	
 

	
 

	
3.3

	
 

	
Currency
 indemnity 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4

	
 

	
Representations
 and warranties 

	
 

	
 

	
 

	
4.1

	
 

	
Continuing
 representations and warranties 

	
 

	
 

	
 

	
 

	
 

	
The Guarantor
 represents and warrants that:

	
 

	
 

	
 

	
4.1.1

	
 

	
Due incorporation

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.2

	
 

	
Corporate power to
 guarantee

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.3

	
 

	
Binding
 obligations

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.4

	
 

	
No conflict with
 other obligations

	
 

	
 

	
 

	
 

	
 

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

9

	
 

	
 

	
 

	
4.1.5

	
 

	
No litigation

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.6

	
 

	
No filings
 required

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.7

	
 

	
Choice of law

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.8

	
 

	
No immunity

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.9

	
 

	
Consents obtained

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.1.10

	
 

	
No material
 adverse change

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2

	
 

	
Initial
 representations and warranties 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.1

	
 

	
Pari passu

	
 

	
 

	
 

	
 

	
 

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

10

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.2

	
 

	
No default under
 other Indebtedness

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.3

	
 

	
Information 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.4

	
 

	
No withholding
 Taxes 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.2.5

	
 

	
No Default 

	
 

	
 

	
 

	
 

	
 

	
no Default has
 occurred and is continuing; and

	
 

	
 

	
 

	
4.2.6

	
 

	
Shareholdings

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.3

	
 

	
Repetition
 of representations and warranties 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
4.3.1

	
 

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

	
 

	
 

	
 

	
4.3.2

	
 

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

11

	
 

	
 

	
 

	
 

	
 

	
5

	
 

	
Undertakings
 

	
 

	
 

	
 

	
5.1

	
 

	
General 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.1

	
 

	
Notice of default 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.2

	
 

	
Consents and licences 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.3

	
 

	
Pari passu 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.4

	
 

	
Financial statements 

	
 

	
 

	
 

	
 

	
 

	
prepare or cause to be prepared: 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.5

	
 

	
Valuations and Compliance
 Certificate 

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

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

12

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
 

	
5.1.6

	
 

	
Liquidity 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.7

	
 

	
Delivery of reports 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.1.8

	
 

	
Provision of further information 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2 

	
 

	
Negative undertakings  

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.1

	
 

	
Negative pledge

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.2

	
 

	
No merger 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.3

	
 

	
Other business 

	
 

	
 

	
 

	
 

	
 

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

13

	
 

	
 

	
 

	
 

	
 

	
5.2.4

	
 

	
Distributions 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.5

	
 

	
Shareholdings 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.2.6

	
 

	
Financial year 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.3

	
 

	
Financial
 undertakings 

	
 

	
 

	
 

	
5.3.1

	
 

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

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Consolidated Adjusted Net Worth 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Consolidated Adjusted Leverage
 Ratio 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Consolidated Debt Service Ratio 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
5.3.2

	
 

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

	
 

	
 

	
 

	
5.3.3

	
 

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

	
 

	
 

	
 

	
5.3.4

	
 

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

	
 

	
 

	
 

	
5.3.5

	
 

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

14

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
6

	
 

	
Set-off
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7

	
 

	
Benefit
 of this Guarantee 

	
 

	
 

	
 

	
7.1

	
 

	
Benefit and
 burden 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7.2

	
 

	
Changes in
 constitution or reorganisation of Bank 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7.3

	
 

	
No assignment by
 Guarantor 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
7.4

	
 

	
Disclosure of
 information 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8

	
 

	
Notices
 and other matters 

	
 

	
 

	
 

	
8.1

	
 

	
Notices 

	
 

	
 

	
 

	
 

	
 

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

15

	
 

	
 

	
 

	
8.1.1

	
 

	
if to the Guarantor at: 

	
 

	
 

	
 

	
 

	
 

	
32 Karamanli Avenue

 166 05 Voula

 Greece 

	
 

	
 

	
 

	
 

	
 

	
Fax No:
           +30 210 8956900 

 Attention:        George Papadopoulos

	
 

	
 

	
 

	
8.1.2

	
 

	
if to the Bank at: 

	
 

	
 

	
 

	
 

	
 

	
The Shipping Business Centre

 5-10 Great Tower Street

 London EC3P 3HX

 England 

	
 

	
 

	
 

	
 

	
 

	
Fax:
                +44
 207 085 7132 

 Attention:        Shipping Business
 Centre

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.2

	
 

	
No implied
 waivers, remedies cumulative 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.3

	
 

	
English
 translations 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.4

	
 

	
Other guarantors
 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.5

	
 

	
Expenses 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
8.6

	
 

	
Partial
 invalidity 

	
 

	
 

	
 

	
 

	
 

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

16

	
 

	
 

	
 

	
8.7

	
 

	
Maximum
 liability 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
9

	
 

	
Law
 and jurisdiction 

	
 

	
 

	
 

	
9.1

	
 

	
Law 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
9.2

	
 

	
Submission to
 jurisdiction 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
9.3

	
 

	
Contracts
 (Rights of Third Parties) Act 1999 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

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

17

Schedule 1

Form of Compliance Certificate

	
 

	
 

	
To:

	
THE ROYAL BANK OF SCOTLAND PLC 

	
 

	
  

	
From:

	
SAFE BULKERS, INC. 

Dated: [•]

US$28,000,000 Loan Agreement dated 16
February 2005, as amended (the “Loan Agreement”) - Corporate Guarantee dated [•] 2008 (the “Corporate
Guarantee”) 

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

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

	
 

	
 

	
 

	
1

	
Financial covenants

	
 

	
 

	
 

	
 

	
(a)

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

	
 

	
 

	
 

	
 

	
(b)

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

	
 

	
 

	
 

	
 

	
(c)

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

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
2

	
Default

	
 

	
 

	
 

	
 

	
[No Default has occurred and is
  continuing]

	
 

	
 

	
 

	
 

	
or

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
Signed:

	
 

	

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
For and on behalf of:

	
 

	
 

	
 

	
SAFE BULKERS,
  INC.

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
Signed:

	
 

	

	
 

	
 

	
 

	
Chief Financial Officer

	
 

	
 

	
 

	
For and on behalf of

	
 

	
 

	
 

	
SAFE BULKERS,
  INC.

	
 

	
 

	
 

	
18 

	
 

	
 

	
 

	
 

	
EXECUTED as a DEED

	
 

	
)

	
 

	
by

	
 

	
)

	
 

	
for and on behalf of

	
 

	
)

	
 

	
SAFE BULKERS,
  INC.

	
 

	
)

	

	
in the presence of:

	
 

	
)

	
Attorney-in-Fact 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Witness

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Address:

	
 

	
 

	
 

	
Occupation:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EXECUTED as a DEED

	
 

	
)

	
 

	
by

	
 

	
)

	
 

	
for and on behalf of

	
 

	
)

	
 

	
THE ROYAL BANK
  OF SCOTLAND PLC

	
)

	

	
in the presence of:

	
 

	
)

	
Authorised
signatory 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Witness

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Address:

	
 

	
 

	
 

	
Occupation:

	
 

	
 

	
 

	
 

	
 

	
 

	
19

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