20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM

20-F

(Mark One) 

☐

 REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 

OR

☑

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the fiscal year ended

December 31, 2023

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report:

Not applicable

For the transition period from ___________________________ to ___________________________ 

Commission file number

001-32458

DIANA SHIPPING INC.

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (

Exact name of Registrant as specified in its charter)

Diana Shipping Inc.

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

(Translation of Registrant’s name into English) 

Republic of the Marshall Islands

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Jurisdiction of incorporation or organization)

Pendelis 16

,

175 64 Palaio Faliro

,

Athens

,

Greece

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Address of principal executive offices)

Mr. Ioannis Zafirakis

Pendelis 16, 175 64 Palaio Faliro, Athens, Greece

Tel: +

30

-

210

-

9470-100

, Fax: +

30-210-9470-101

E-mail:

izafirakis@dianashippinginc.com

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) 

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class

Trading

Symbol(s)

Name of each exchange on which

registered

Common Stock, $0.01 par value including the Preferred Stock Purchase Rights

DSX

New York Stock Exchange

8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value

DSXPRB

New York Stock Exchange

Warrants to Purchase Common Stock, Expiring on or about December 14, 2026

DSX WS

New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act. 

None

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. 

None

____________________________________________________________________________________________________________________________________________________________________________________________________________ 

 (Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by

the annual report. 

As of December 31, 2023, there were

113,065,725

 shares of the registrant’s common stock outstanding

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐

 Yes

☑

No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13

or 15(d) of the Securities Exchange Act of 1934.

☐

 Yes

☑

No

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange

Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has

been subject to such filing requirements for the past 90 days. 

☑

Yes

☐

 No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to

Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was

required to submit such files).

☑

Yes

☐

 No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging

growth company. See definition of “large accelerated filer”, “accelerated filer” and "emerging growth company" in Rule 12b-2 of the

Exchange Act. 

Large accelerated filer

☐

Accelerated filer

☑

 Non-accelerated filer

☐

 Emerging growth company

☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the

registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards†

provided pursuant to Section 13(a) of the Exchange Act. □ 

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards

Board to its Accounting Standards Codification after April 5, 2012. 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the

effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the

registered public accounting firm that prepared or issued its audit report.

☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the

registrant included in the filing reflect the correction of an error to previously issued financial statements. 

☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-

based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-

1(b). 

☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this

filing: 

U.S. GAAP

☑

 International Financial Reporting Standards as issued Other 

☐

 by the International Accounting Standards Board □ 

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has

elected to follow.

☐

 Item 17

☐

 Item 18 

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

 Yes

☑

No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the

Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

☐

 Yes

☐

 No

4

TABLE OF CONTENTS

5

8

8

8

43

68

68

85

93

98

99

100

109

110

111

111

111

112

112

112

Item 16D.

113

113

113

114

115

115

115

115

Financial Statements

117

117

117

5

FORWARD-LOOKING STATEMENTS

Matters discussed in this annual report and the documents incorporated by reference may constitute

forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor

protections for forward-looking statements in order to encourage companies to provide prospective

information about their business. Forward-looking statements include, but are not limited to, statements

concerning plans, objectives, goals, strategies, future events or performance, underlying assumptions and

other statements, which are other than statements of historical facts.

Diana Shipping Inc., or the Company, desires to take advantage of the safe harbor provisions of the Private

Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this

safe harbor legislation. This document and any other written or oral statements made by the Company or

on its behalf may include forward-looking statements, which reflect its current views with respect to future

events and financial performance, and are not intended to give any assurance as to future results. When

used in this document, the words “believe”, “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”

“potential,” “will,” “may,” “should,” “expect,” “targets,” “likely,” “would,” “could,” “seeks,” “continue,”

“possible,” “might,” “pending,” and similar expressions, terms or phrases may identify forward-looking

statements.

Please note in this annual report, “we”, “us”, “our” and “the Company” all refer to Diana Shipping Inc. and

its subsidiaries, unless otherwise indicated.

The forward-looking statements in this document are based upon various assumptions, many of which are

based, in turn, upon further assumptions, including without limitation, management’s examination of

historical operating trends, data contained in its records and other data available from third

parties. Although the Company believes that these assumptions were reasonable when made, because

these assumptions are inherently subject to significant uncertainties and contingencies which are difficult

or impossible to predict and are beyond its control, the Company cannot assure you that it will achieve or

accomplish these expectations, beliefs or projections.

Such statements reflect the Company’s current views with respect to future events and are subject to

certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize,

or should underlying assumptions prove incorrect, actual results may vary materially from those described

herein as anticipated, believed, estimated, expected or intended. The Company is making investors aware

that such forward-looking statements, because they relate to future events, are by their very nature subject

to many important factors that could cause actual results to differ materially from those contemplated.

In addition to these important factors and matters discussed elsewhere herein, including under the heading

"Item 3. Key Information—D. Risk Factors," and in the documents incorporated by reference herein,

important factors that, in its view, could cause actual results to differ materially from those discussed in the

forward-looking statements include, but are not limited to: 

●

the strength of world economies;

●

fluctuations in currencies, interest rates, and inflationary pressures;

●

general market conditions, including fluctuations in charter hire rates and vessel values;

●

changes in demand in the dry-bulk shipping industry;

●

changes in the supply of vessels, including when caused by new newbuilding vessel orders or

changes to or terminations of existing orders, and vessel scrapping levels;

6

●

changes in the Company's operating expenses, including bunker prices, crew costs, drydocking

and insurance costs;

●

the Company’s future operating or financial results;

●

availability of financing and refinancing and changes to the Company’s financial condition and

liquidity, including the Company’s ability to pay amounts that it owes and obtain additional financing

to fund capital expenditures, acquisitions and other general corporate activities and the Company’s

ability to obtain financing and comply with the restrictions and other covenants in the Company’s

financing arrangements;

●

changes in governmental rules and regulations or actions taken by regulatory authorities;

●

potential liability from pending or future litigation;

●

compliance with governmental, tax, environmental and safety regulation, any non-compliance with

the U.S. Foreign Corrupt Practices Act of 1977 (FCPA) or other applicable regulations relating to

bribery;

●

the failure of counter-parties to fully perform their contracts with the Company;

●

the Company’s dependence on key personnel;

●

adequacy of insurance coverage;

●

the volatility of the price of the Company’s common shares;

●

the Company’s incorporation under the laws of the Marshall Islands and the different rights to relief

that may be available compared to other countries, including the United States;

●

general domestic and international political conditions or labor disruptions;

●

the impact of port or canal congestion or disruptions;

●

any continuing impacts of coronavirus (COVID-19) or other global or regional pandemics and its

impact in the dry-bulk shipping industry;

●

potential physical disruption of shipping routes due to accidents, climate-related reasons (acute and

chronic), political events, public health threats, international hostilities and instability, piracy or acts

by terrorists; and

●

other important factors described from time to time in the reports filed by the Company with the

Securities and Exchange Commission, or the SEC, including those factors discussed in “Item 3.

Key Information- D. Risk Factors” in this Annual Report on Form 20-F and the New York Stock

Exchange, or the NYSE.

This report may contain assumptions, expectations, projections, intentions and beliefs about future events.

These statements are intended as forward-looking statements. The Company may also from time to time

make forward- looking statements in other documents and reports that are filed with or submitted to the

Commission, in other information sent to the Company’s security holders, and in other written materials.

The Company also cautions that assumptions, expectations, projections, intentions and beliefs about future

events may and often do vary from actual results and the differences can be material. The Company

7

undertakes no obligation to publicly update or revise any forward-looking statement contained in this report,

whether as a result of new information, future events or otherwise, except as required by law.

8

PART I

Item 1. Identity of Directors, Senior Management and Advisers

Not Applicable.

Item 2. Offer Statistics and Expected Timetable

Not Applicable.

Item 3. Key Information

A. [Reserved] 

B. Capitalization and Indebtedness 

Not Applicable. 

C. Reasons for the Offer and Use of Proceeds 

Not Applicable.

D. Risk Factors

Summary of Risk Factors

The below bullets summarize the principal risk factors related to an investment in our Company. 

Industry Specific Risk Factors

●

Charter hire rates for dry bulk vessels are volatile and have fluctuated significantly in the

past years, which may adversely affect our earnings, revenues and profitability and our

ability to comply with our loan covenants.

●

The current state of the global financial markets and economic conditions may adversely

impact our ability to obtain additional financing on acceptable terms and otherwise

negatively impact our business.

●

Our operating results may be affected by seasonal fluctuations.

●

An increase in the price of fuel, or bunkers, may adversely affect our profits.

●

We are subject to complex laws and regulations, including environmental regulations

that can adversely affect the cost, manner or feasibility of doing business.

9

●

Increased inspection procedures, tighter import and export controls and new security

regulations could increase costs and disrupt our business.

●

Operational risks and damage to our vessels could adversely impact our performance. 

●

If our vessels call on ports located in countries or territories that are the subject of

sanctions or embargoes imposed by the U.S. government, the European Union, the

United Nations, or other governmental authorities, it could lead to monetary fines or

penalties and may adversely affect our reputation and the market for our securities.

●

We conduct business in China, where the legal system is not fully developed and has

inherent uncertainties that could limit the legal protections available to us.

●

Failure to comply with the U.S. Foreign Corrupt Practices Act could result in fines,

criminal penalties and an adverse effect on our business.

●

Changing laws and evolving reporting requirements could have an adverse effect on our

business.

Company Specific Risk Factors

●

The market values of our vessels could decline, which could limit the amount of funds

that we can borrow and could trigger breaches of certain financial covenants contained

in our loan facilities, which could adversely affect our operating results, and we may

incur a loss if we sell vessels following a decline in their market values.

●

We charter some of our vessels on short-term time charters in a volatile shipping

industry and a decline in charter hire rates could affect our results of operations and our

ability to pay dividends.

●

Rising crew costs could adversely affect our results of operations.

●

Our investment in Diana Wilhelmsen Management Limited may expose us to additional

risks.

●

A cyber-attack could materially disrupt our business.

●

Climate change and greenhouse gas restrictions may adversely impact our operations

and markets.

●

Increasing scrutiny and changing expectations from investors, lenders and other market

participants with respect to our ESG policies may impose additional costs on us or

expose us to additional risks.

●

Our earnings may be adversely affected if we are not able to take advantage of favorable

charter rates.

●

Investment in derivative instruments such as forward freight agreements could result in

losses.

●

We cannot assure you that we will be able to borrow amounts under loan facilities and

restrictive covenants in our loan facilities impose financial and other restrictions on us.

10

●

We are subject to certain risks with respect to our counterparties on contracts, and

failure of such counterparties to meet their obligations could cause us to suffer losses

or otherwise adversely affect our business.

●

In the highly competitive international shipping industry, we may not be able to compete

for charters with new entrants or established companies with greater resources, and as

a result, we may be unable to employ our vessels profitably.

●

We may be unable to attract and retain key management personnel and other employees

in the shipping industry, which may negatively impact the effectiveness of our

management and results of operations.

●

Technological innovation and quality and efficiency requirements from our customers

could reduce our charter hire income and the value of our vessels.

●

We may not have adequate insurance to compensate us if we lose our vessels or to

compensate third parties.

●

Our vessels may suffer damage and we may face unexpected drydocking costs, which

could adversely affect our cash flow and financial condition.

●

The aging of our fleet may result in increased operating costs in the future, which could

adversely affect our earnings.

●

We are exposed to U.S. dollar and foreign currency fluctuations and devaluations that

could harm our reported revenue and results of operations.

●

We depend upon a few significant customers for a large part of our revenues and the

loss of one or more of these customers could adversely affect our financial performance.

●

We are a holding company, and we depend on the ability of our subsidiaries to distribute

funds to us in order to satisfy our financial obligations.

●

Because we are organized under the laws of the Marshall Islands, it may be difficult to

serve us with legal process or enforce judgments against us, our directors or our

management.

●

If we expand our business further, we may need to improve our operating and financial

systems and will need to recruit suitable employees and crew for our vessels.

●

We may have to pay tax on U.S. source income, which would reduce our earnings.

●

U.S. federal tax authorities could treat us as a “passive foreign investment company,”

which could have adverse U.S. federal income tax consequences to U.S. shareholders.

Risks Relating to Our Common Stock

●

We cannot assure you that our board of directors will continue to declare dividends on

shares of our common stock in the future.

●

The market prices and trading volume of our shares of common stock may experience

rapid and substantial price volatility, which could cause purchasers of our common

stock to incur substantial losses.

11

●

Since we are incorporated in the Marshall Islands, which does not have a well-developed

body of corporate law, you may have more difficulty protecting your interests than

shareholders of a U.S. corporation.

●

As a Marshall Islands corporation and with some of our subsidiaries being Marshall

Islands entities and also having subsidiaries in other offshore jurisdictions, our

operations may be subject to economic substance requirements, which could impact our

business.

●

Certain existing shareholders will be able to exert considerable control over matters on

which our shareholders are entitled to vote. 

●

Future sales of our common stock could cause the market price of our common stock to

decline.

●

Our Series B Preferred Shares are senior obligations of ours and rank prior to our

common shares with respect to dividends, distributions and payments upon liquidation,

which could have an adverse effect on the value of our common shares.

Risks Relating to Our Series B Preferred Stock

●

We may not have sufficient cash from our operations to enable us to pay dividends on

our Series B Preferred Shares following the payment of expenses and the establishment

of any reserves.

●

Our Series B Preferred Shares are subordinate to our indebtedness, and your interests

could be diluted by the issuance of additional preferred shares, including additional

Series B Preferred Shares, and by other transactions.

●

We may redeem the Series B Preferred Shares, and you may not be able to reinvest the

redemption price you receive in a similar security.

Risks Relating to Our Outstanding Warrants 

●

The issuance of our common stock upon the exercise of our Warrants may depress our

stock price.

Some of the following risks relate principally to the industry in which we operate and our business in

general. Other risks relate principally to the securities market and ownership of our securities, including our

common stock and our Series B Preferred Shares. The occurrence of any of the events described in this

section could significantly and negatively affect our business, financial condition, operating results, cash

available for the payment of dividends on our shares and interest on our loan facilities and Bond, or the

trading price of our securities.

Industry Specific Risk Factors

Charter hire rates for dry bulk vessels are volatile and have fluctuated significantly in the past

years, which may adversely affect our earnings, revenues and profitability and our ability to comply

with our loan covenants.

Substantially all of our revenues are derived from a single market, the dry bulk segment, and therefore our

financial results are subject to cyclicality of the dry bulk shipping industry and any attendant volatility in

12

charter hire rates and profitability. The degree of charter hire rate volatility among different types of dry bulk

vessels has varied widely, and time charter and spot market rates for dry bulk vessel have in the recent

past declined below the operating costs of vessels. When we charter our vessels pursuant to spot or short-

term time charters, we are exposed to changes in spot market and short-term charter rates for dry bulk

carriers and such changes may affect our earnings and the value of our dry bulk carriers at any given time.

We cannot assure you that we will be able to successfully charter our vessels in the future or renew existing

charters at rates sufficient to allow us to meet our obligations or pay any dividends in the future. Fluctuations

in charter rates result from changes in the supply of and demand for vessel capacity and changes in the

supply of and demand for the major commodities carried by water internationally. Because the factors

affecting the supply of and demand for vessels are outside of our control and are unpredictable, the nature,

timing, direction and degree of changes in industry conditions are also unpredictable. A significant decrease

in charter rates would adversely affect our profitability, cash flows and may cause vessel values to decline,

and, as a result, we may have to record an impairment charge in our consolidated financial statements

which could adversely affect our financial results.

In 2023, the period market for dry bulk vessels experienced fluctuations influenced by various factors. Dry

bulk market conditions remained volatile reflecting the impact of war in Ukraine, geopolitical tensions, trade

policies, and environmental regulations. However, there were regional variations in market conditions,

with China's demand recovering and some other areas experiencing stronger demand due to infrastructure

projects or agricultural exports. Panama Canal and Suez Canal disruptions during the year surely affected

market and the longer these issues go on, the more of a market support it will be. The markets rallied

strongly at the end of last year, with the Baltic Capesize index rallying to heights which since 2010 was

only exceeded in October 2021. The Panamax, Ultramax, Supramax and Handysize indices rallied to levels

which since 2010 was exceeded only during most of 2021 and early 2022. Fundamentals maintain bullish

and can support a positive outlook for 2024 which as always are subject to revisions. 

Factors that influence demand for dry bulk vessel capacity include:

●

supply of and demand for energy resources, commodities, and semi-finished and finished

consumer and industrial products;

●

changes in the exploration or production of energy resources, commodities, and semi-finished

and finished consumer and industrial products;

●

the location of regional and global exploration, production and manufacturing facilities;

●

the location of consuming regions for energy resources, commodities, and semi-finished and

finished consumer and industrial products;

●

the globalization of production and manufacturing;

●

global and regional economic and political conditions, armed conflicts, including the ongoing

conflicts between Russia and Ukraine and Israel and Hamas, and fluctuations in industrial and

agricultural production;

●

disruptions and developments in international trade;

●

changes in seaborne and other transportation patterns, including the distance cargo is

transported by sea for reasons including but not limited to reductions in canal capacities and

geopolitical conflicts and military responses;

●

international sanctions, embargoes, import and export restrictions, nationalizations, piracy, and

terrorist attacks;

13

●

legal and regulatory changes including regulations adopted by supranational authorities and/or

industry bodies, such as safety and environmental regulations and requirements;

●

weather and acts of God and natural disasters;

●

environmental and other regulatory developments;

●

currency exchange rates, specifically versus USD; and

●

economic slowdowns caused by public health pandemics.

Demand for our dry bulk oceangoing vessels is dependent upon economic growth in the world’s economies,

seasonal and regional changes in demand and changes to the capacity of the global dry bulk fleet and the

sources and supply for dry bulk cargo transported by sea. Continued adverse economic, political or social

conditions or other developments could negatively impact charter rates and therefore have a material

adverse effect on our business results, results of operations and ability to pay dividends.

Factors that influence the supply of dry bulk vessel capacity include:

●

the number of newbuilding orders and deliveries, including slippage in deliveries;

●

the number of shipyards and ability of shipyards to deliver vessels;

●

port or canal congestion;

●

potential disruption, including supply chain disruptions, of shipping routes due to accidents or

political events;

●

the scrapping of older vessels;

●

speed of vessel operation;

●

vessel casualties;

●

technological advances in vessel design and capacity;

●

the degree of scrapping or recycling of older vessels, depending, among other things, on

scrapping or recycling rates and international scrapping or recycling regulations;

●

the price of steel and vessel equipment;

●

product imbalances (affecting level of trading activity) and developments in international trade;

●

the number of vessels that are out of service, namely those that are laid-up, drydocked, awaiting

repairs or otherwise not available for hire; 

●

availability of financing for new vessels and shipping activity;

●

changes in international regulations that may effectively cause reductions in the carrying

capacity of vessels or early obsolescence of tonnage; and

14

●

changes in environmental and other regulations that may limit the useful lives and trading

patterns of vessels.

In addition to the prevailing and anticipated freight rates, factors that affect the rate of newbuilding,

scrapping and laying-up include newbuilding prices, secondhand vessel values in relation to scrap prices,

costs of bunkers and other operating costs, costs associated with classification society surveys, normal

maintenance and insurance coverage costs, the efficiency and age profile of the existing dry bulk fleet in

the market and government and industry regulation of maritime transportation practices, particularly

environmental protection laws and regulations. These factors influencing the supply of and demand for

shipping capacity are outside of our control, and we may not be able to correctly assess the nature, timing

and degree of changes in industry conditions.

We anticipate that the future demand for our dry bulk carriers will be dependent upon economic growth in

the world’s economies, including China and India, seasonal and regional changes in demand, changes in

the capacity of the global dry bulk carrier fleet and the sources and supply of dry bulk cargo transported by

sea. While there has been a general decrease in new dry bulk carrier ordering since 2014, the capacity of

the global dry bulk carrier fleet could increase and economic growth may not resume in areas that have

experienced a recession or continue in other areas. Adverse economic, political, social or other

developments could have a material adverse effect on our business and operating results.

In addition, the conflict between Israel and Hamas, which began in October 2023, has resulted in an

increased number of vessel attacks in the Red Sea. Various shipping companies and/or commercial

managers have indicated that their vessels would avoid crossing the Red Sea and consequently the Suez

Canal, and for the time being divert vessels around southern Africa’s Cape of Good Hope, which

occasionally adds substantial time and cost to East-West voyages. While we are unable to ascertain the

immediate impact of this conflict, any further attacks or piracy attempts, or continued diversion of vessels

from the Suez Canal, may affect our business, financial condition, and results of operations.

The current state of the global financial markets and economic conditions may adversely impact

our ability to obtain additional financing on acceptable terms and otherwise negatively impact our

business.

Global financial markets can be volatile and contraction in available credit may occur as economic

conditions change. In recent years, operating businesses in the global economy have faced weakening

demand for goods and services, deteriorating international liquidity conditions, and declining markets which

lead to a general decline in the willingness of banks and other financial institutions to extend credit,

particularly in the shipping industry. As the shipping industry is highly dependent on the availability of credit

to finance and expand operations, it may be negatively affected by such changes and volatility.

We face risks attendant to changes in economic environments, changes in interest rates, and instability in

the banking and securities markets around the world, among other factors which may have a material

adverse effect on our results of operations and financial condition and may cause the price of our common

shares to decline. As of December 31, 2023, we had total outstanding indebtedness of $517.0 million under

our various credit facilities and bond and a further $133.3 million of finance liabilities. 

Global economic conditions may continue to negatively impact the drybulk shipping industry.

Major market disruptions and adverse changes in market conditions and regulatory climate in China, the

United States, the European Union and worldwide may adversely affect our business or impair our ability

to borrow amounts under credit facilities or any future financial arrangements. 

Chinese dry bulk imports have accounted for the majority of global dry bulk transportation growth annually

over the last decade. Accordingly, our financial condition and results of operations, as well as our future

15

prospects, would likely be hindered by an economic downturn in any of these countries or geographic

regions. In recent years China and India have been among the world’s fastest growing economies in terms

of gross domestic product. The growth of China’s economy has slowed during 2023. A continued economic

slowdown in China or the Asia Pacific region or in India may adversely affect demand for seaborne

transportation of our products and our results of operations. Moreover, any deterioration in the economy of

the United States or the European Union, may further adversely affect economic growth in Asia.

Economic growth is expected to slow, including due to supply-chain disruption, inflationary pressures and

related actions by central banks and geopolitical conditions, with a significant risk of recession in many

parts of the worlds in the near term. In particular, an adverse change in economic conditions affecting

China, Japan, India or Southeast Asia generally could have a negative effect on the drybulk market. 

The dry bulk carrier charter market has improved but remains significantly below its high in 2008,

which may affect our revenues, earnings and profitability, and our ability to comply with our loan

covenants.

The abrupt and dramatic downturn in the dry bulk charter market until the beginning of 2021, from which

we derive substantially all of our revenues, severely affected the dry bulk shipping industry and our

business. The Baltic Dry Index, or the BDI, a daily average of charter rates for key dry bulk routes published

by the Baltic Exchange Limited, has long been viewed as the main benchmark to monitor the movements

of the dry bulk vessel charter market and the performance of the entire dry bulk shipping market. The BDI

declined 94% in 2008 from a peak of 11,793 in May 2008 to a low of 663 in December 2008 and has

remained volatile since then, reaching a record low of 290 in February 2016. In 2023, the BDI ranged from

a low of 530 to a high of 3,346 and closed at 1,714 on April 2, 2024. There can be no assurance that the

dry bulk charter market will not decline further. The decline and volatility in charter rates is due to various

factors, including the lack of trade financing for purchases of commodities carried by sea, which has

resulted in a significant decline in cargo shipments, and the excess supply of iron ore in China, which has

resulted in falling iron ore prices and increased stockpiles in Chinese ports. The decline and volatility in

charter rates in the dry bulk market also affects the value of our dry bulk vessels, which follows the trends

of dry bulk charter rates, and earnings on our charters, and similarly, affects our cash flows, liquidity and

compliance with the covenants contained in our loan agreements.

Any decline in the dry bulk carrier charter market may have additional adverse consequences for our

industry, including an absence of financing for vessels, no active secondhand market for the sale of

vessels, charterers seeking to renegotiate the rates for existing time charters, and widespread loan

covenant defaults in the dry bulk shipping industry. Accordingly, the value of our common shares could be

substantially reduced or eliminated.

Worldwide inflationary pressures could negatively impact our results of operations and cash flows.

The previous year worldwide economies experienced inflationary pressures, with price increases seen

across many sectors globally. For example, the U.S. consumer price index, an inflation gauge that

measures costs across dozens of items was 6.5% in December 2022, driven in large part by increases in

energy costs. In December 2023, the U.S. consumer price index dropped to 3.4% and it remains to be

seen whether inflationary pressures will increase again and to what degree. In the event that inflation

becomes a significant factor in the global economy generally and in the shipping industry more specifically,

inflationary pressures would result in increased operating, voyage and administrative costs. Furthermore,

the effects of inflation on the supply and demand of the products we transport could alter demand for our

services. Interventions in the economy by central banks in response to inflationary pressures may slow

down economic activity, including by altering consumer purchasing habits and reducing demand for the

commodities and products we carry, and cause a reduction in trade. As a result, the volumes of goods we

deliver and/or charter rates for our vessels may be affected. Any of these factors could have an adverse

effect on our business, financial condition, cash flows and operating results.

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Risks associated with operating ocean-going vessels could affect our business and reputation,

which could have a material adverse effect on our results of operations and financial condition.

The operation of ocean-going vessels carries inherent risks. These risks include the possibility of:

●

marine disaster;

●

acts of God;

●

terrorism;

●

environmental accidents;

●

cargo and property losses or damage;

●

business interruptions caused by mechanical failures, human error, war, political action in

various countries, labor strikes or adverse weather conditions; and

●

piracy or robbery.

In addition, international shipping is subject to various security and customs inspection and related

procedures in countries of origin and destination and trans-shipment points. Inspection procedures can

result in the seizure of the cargo and/or our vessels, delays in the loading, offloading or delivery and the

levying of customs duties, fines or other penalties against us. It is possible that changes to inspection

procedures could impose additional financial and legal obligations on us. Furthermore, changes to

inspection procedures could also impose additional costs and obligations on our customers and may, in

certain cases, render the shipment of certain types of cargo uneconomical or impractical. Any such

changes or developments may have a material adverse effect on our business, results of operations, cash

flows, financial condition and available cash.

Our operations outside the United States expose us to global risks, such as political instability,

terrorist or other attacks, war, international hostilities and global public health concerns, which

may affect the seaborne transportation industry and adversely affect our business.

We are an international shipping company and primarily conduct most of our operations outside the United

States, and our business, results of operations, cash flows, financial condition and ability to pay dividends,

if any, in the future may be adversely affected by changing economic, political and government conditions

in the countries and regions where our vessels are employed or registered. Moreover, we operate in a

sector of the economy that is likely to be adversely impacted by the effects of political conflicts. 

Currently, the world economy faces a number of challenges, including trade tensions between the

United States and China, stabilizing growth in China, continuing threat of terrorist attacks around

the world, continuing instability and conflicts and other ongoing occurrences in the Middle East,

Ukraine, and in other geographic areas and countries, economic sanctions restrictions. 

In the past, political instability has also resulted in attacks on vessels, mining of waterways and other efforts

to disrupt international shipping, particularly in the Arabian Gulf region and most recently in the Black Sea

in connection with the recent conflicts between Russia and Ukraine, and in the Red Sea in connection with

the conflict between Israel and Hamas. Acts of terrorism and piracy have also affected vessels trading in

regions such as the South China Sea and the Gulf of Aden off the coast of Somalia. Any of these

occurrences could have a material adverse impact on our future performance, results of operation, cash

flows and financial position.

17

Beginning in February of 2022, President Biden and several European leaders announced various

economic sanctions against Russia in connection with the aforementioned conflicts in the Ukraine region,

which may adversely impact our business.

The United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) administers

and enforces multiple authorities under which sanctions have been imposed on Russia, including: the

Russian Harmful Foreign Activities sanctions program, established by the Russia-related national

emergency declared in Executive Order (E.O.) 14024 and subsequently expanded and addressed through

certain additional authorities, and the Ukraine-Russia-related sanctions program, established with the

Ukraine-related national emergency declared in E.O. 13660 and subsequently expanded and addressed

through certain additional authorities. The United States has also issued several Executive Orders that

prohibit certain transactions related to Russia, including the importation of certain energy products of

Russian Federation origin (including crude oil, petroleum, petroleum fuels, oils, liquefied natural gas and

coal), and all new investments in Russian by U.S. persons, among other prohibitions and export controls.

Furthermore, the United States has also prohibited a variety of specified services related to the maritime

transport of Russian Federation origin crude oil and petroleum products, including trading/commodities

brokering, financing, shipping, insurance (including reinsurance and protection and indemnity), flagging,

and customs brokering. These prohibitions took effect on December 5, 2022 with respect to the maritime

transport of crude oil and February 5, 2023 with respect to the maritime transport of other petroleum

products. An exception exists to permit such services when the price of the seaborne Russian oil does not

exceed the relevant price cap; but implementation of this price exception relies on a recordkeeping and

attestation process that allows each party in the supply chain of seaborne Russian oil to demonstrate or

confirm that oil has been purchased at or below the price cap. Violations of the price cap policy or the risk

that information, documentation, or attestations provided by parties in the supply chain are later determined

to be false may pose additional risks adversely affecting our business.

While Ukraine continued to deploy a number of counter-attacks in 2023 and as of December 2023 held

important areas in ground operations, after over two years of fighting Russia still maintains a foothold in a

number of key cities and areas. The ongoing conflict could result in the imposition of further economic

sanctions or new categories of export restrictions against persons in or connected to Russia. While in

general much uncertainty remains regarding the global impact of the conflict in Ukraine, it is possible that

such tensions could adversely affect the Company’s business, financial condition, results of operation and

cash flows. Our business could also be adversely impacted by trade tariffs, trade embargoes or other

economic sanctions that limit trading activities by the United States or other countries against countries in

the Middle East, Asia or elsewhere as a result of terrorist attacks, hostilities or diplomatic or political

pressures, including as a result of the current conflict between Israel and Hamas. 

Outbreaks of epidemic and pandemic diseases and governmental responses thereto could

adversely affect our business.

Our operations are subject to risks related to pandemics, epidemics or other infectious disease outbreaks

and government responses thereto. COVID-19, which was initially declared a pandemic by the World

Health Organization on March 11, 2020 and was declared no longer a global health emergency on May 5,

2023, negatively affected economic conditions, supply chains, labor markets, and demand for certain

shipped goods both regionally and globally as a result of government efforts to combat the pandemic,

including the enactment or imposition of travel bans, quarantines and other emergency public health

measures.

The extent to which our business, the global economy and dry bulk transportation industry may be

negatively affected by future pandemics, epidemics or other outbreaks of infectious diseases is highly

uncertain and will depend on numerous evolving factors that we cannot predict, including, but not limited

to (i) the duration and severity of the infectious disease outbreak; (ii) the imposition of restrictive measures

18

to combat the outbreak and slow disease transmission; (iii) the introduction of financial support measures

to reduce the impact of the outbreak on the economy; (iv) volatility in the demand for and price of oil and

gas; (v) shortages or reductions in the supply of essential goods, services or labor; and (vi) fluctuations in

general economic or financial conditions tied to the outbreak, such as a sharp increase in interest rates or

reduction in the availability of credit. We cannot predict the effect that an outbreak of a new COVID-19

variant or strain, or any future infectious disease outbreak, pandemic or epidemic may have on our

business, results of operations and financial condition, which could be material and adverse.

Our operating results may be affected by seasonal fluctuations.

We operate our vessels in markets that have historically exhibited seasonal variations in demand and, as

a result, in charter hire rates. This seasonality may result in quarter-to-quarter volatility in our operating

results. The dry bulk carrier market is typically stronger in the fall and winter months in anticipation of

increased consumption of coal and other raw materials in the northern hemisphere during the winter

months. In addition, unpredictable weather patterns in these months tend to disrupt vessel scheduling and

supplies of certain commodities. As a result, our revenues may be weaker during the fiscal quarters ending

June 30 and September 30, and, conversely, our revenues may be stronger in fiscal quarters ending

December 31 and March 31. While this seasonality does not directly affect our operating results, it could

materially affect our operating results to the extent our vessels are employed in the spot market in the

future.

An increase in the price of fuel, or bunkers, may adversely affect our profits.

While we generally will not bear the cost of fuel or bunkers for vessels operating on time charters, fuel is a

significant factor in negotiating charter rates. As a result, an increase in the price of fuel beyond our

expectations may adversely affect our profitability at the time of charter negotiation. Fuel is also a

significant, if not the largest, expense in shipping when vessels are under voyage charter. The price and

supply of fuel is unpredictable and fluctuates based on events outside our control, including geopolitical

developments, supply and demand for oil and gas, actions by the Organization of Petroleum Exporting

Countries (the "OPEC"), and other oil and gas producers, war and unrest in oil producing countries and

regions, regional production patterns and environmental concerns. Any future increase in the cost of fuel

may reduce the profitability and competitiveness of our business.

In addition, if the recent sharp increase in crude oil prices and widening of the spread between the prices

of high sulfur fuel and low sulfur fuel resulting from conflict between Russia and Ukraine and Israel and

Hamas continues, this might lead to a decrease in the economic viability of older vessels that lack fuel

efficiency and a reduction of useful lives of these vessels.

We are subject to complex laws and regulations, including environmental regulations that can

adversely affect the cost, manner or feasibility of doing business.

Our business and the operations of our vessels are materially affected by environmental regulation in the

form of international conventions, national, state and local laws and regulations in force in the jurisdictions

in which our vessels operate, as well as in the country or countries of their registration, including those

governing the management and disposal of hazardous substances and wastes, the cleanup of oil spills

and other contamination, air emissions (including greenhouse gases), water discharges and ballast water

management. These regulations include, but are not limited to, European Union regulations, the U.S. Oil

Pollution Act of 1990, requirements of the U.S. Coast Guard, or USCG and the U.S. Environmental

Protection Agency, the U.S. Clean Air Act of 1970 (including its amendments of 1977 and 1990) , the U.S.

Clean Water Act, and the U.S. Maritime Transportation Security Act of 2002, and regulations of the IMO,

including the International Convention on Civil Liability for Oil Pollution Damage of 1969, the International

Convention for the Prevention of Pollution from Ships of 1973, as modified by the Protocol of 1978,

collectively referred to as MARPOL 73/78 or MARPOL, including designations of Emission Control Areas,

19

thereunder, SOLAS, the International Convention on Load Lines of 1966, the International Convention of

Civil Liability for Bunker Oil Pollution Damage, and the ISM Code. Because such conventions, laws, and

regulations are often revised, we cannot predict the ultimate cost of complying with such requirements or

the impact thereof on the re-sale price or useful life of any vessel that we own or will acquire. Additional

conventions, laws and regulations may be adopted that could limit our ability to do business or increase

the cost of our doing business and which may materially adversely affect our operations. Government

regulation of vessels, particularly in the areas of safety and environmental requirements, continue to

change, requiring us to incur significant capital expenditures on our vessels to keep them in compliance,

or even to scrap or sell certain vessels altogether. In addition, we may incur significant costs in meeting

new maintenance and inspection requirements, in developing contingency arrangements for potential

environmental violations and in obtaining insurance coverage.

In addition, we are required by various governmental and quasi-governmental agencies to obtain certain

permits, licenses, certificates, approvals and financial assurances with respect to our operations. Our

failure to maintain necessary permits, licenses, certificates, approvals or financial assurances could require

us to incur substantial costs or temporarily suspend operation of one or more of the vessels in our fleet or

lead to the invalidation or reduction of our insurance coverage.

Environmental requirements can also affect the resale value or useful lives of our vessels, require a

reduction in cargo capacity, ship modifications or operational changes or restrictions, lead to decreased

availability of insurance coverage for environmental matters or result in the denial of access to certain

jurisdictional waters or ports, or detention in certain ports. Under local, national and foreign laws, as well

as international treaties and conventions, we could incur material liabilities, including for cleanup

obligations and natural resource damages, in the event that there is a release of petroleum or hazardous

substances from our vessels or otherwise in connection with our operations. We could also become subject

to personal injury or property damage claims relating to the release of hazardous substances associated

with our existing or historic operations. Violations of, or liabilities under, environmental requirements can

result in substantial penalties, fines and other sanctions, including in certain instances, seizure or detention

of our vessels.

Increased inspection procedures, tighter import and export controls and new security regulations

could increase costs and disrupt our business.

International shipping is subject to various security and customs inspection and related procedures in

countries of origin, destination and trans-shipment points. Under the U.S. Maritime Transportation Security

Act of 2002 (“MTSA”), the U.S. Coast Guard issued regulations requiring the implementation of certain

security requirements aboard vessels operating in waters subject to the jurisdiction of the United States

and at certain ports and facilities. These security procedures may result in cargo seizure, delays in the

loading, offloading, trans-shipment or delivery and the levying of customs duties, fines or other penalties

against us. It is possible that changes to inspection procedures could impose additional financial and legal

obligations on us. Changes to inspection procedures could also impose additional costs and obligations on

our customers and may, in certain cases, render the shipment of certain types of cargo uneconomical or

impractical. Any such changes or developments may have a material adverse effect on our business,

customer relations, financial condition and earnings. 

Operational risks and damage to our vessels could adversely impact our performance. 

The operation of an ocean-going vessel carries inherent risks. Our vessels and their cargoes are at risk of

being damaged or lost because of events such as marine disasters, bad weather and other acts of God,

business interruptions caused by mechanical failures, grounding, fire, explosions and collisions, human

error, war, terrorism, piracy, labor strikes, boycotts and other circumstances or events. Changing economic,

regulatory and political conditions in some countries, including political and military conflicts, have from

time to time resulted in attacks on vessels, mining of waterways, piracy, terrorism, labor strikes and

20

boycotts. Damage to the environment could also result from our operations, particularly through spillage of

fuel, lubricants or other chemicals and substances used in operations, or extensive uncontrolled fires.

These hazards may result in death or injury to persons, loss of revenues or property, the payment of

ransoms, environmental damage, higher insurance rates, damage to our customer relationships and

market disruptions, delay or rerouting, any of which may subject us to litigation. As a result, we could be

exposed to substantial liabilities not recoverable under our insurances. Further, the involvement of our

vessels in a serious accident could harm our reputation as a safe and reliable vessel operator and lead to

a loss of business. Epidemics and other public health incidents may also lead to crew member illness,

which can disrupt the operations of our vessels, or to public health measures, which may prevent our

vessels from calling on ports or discharging cargo in the affected areas or in other locations after having

visited the affected areas. 

If our vessels suffer damage, they may need to be repaired at a drydocking facility. The costs of drydock

repairs are unpredictable and may be substantial. We may have to pay drydocking costs that our insurance

does not cover at all or in full. The loss of revenues while these vessels are being repaired and repositioned,

as well as the actual cost of these repairs, may adversely affect our business and financial condition. In

addition, space at drydocking facilities is sometimes limited and not all drydocking facilities are conveniently

located. We may be unable to find space at a suitable drydocking facility or our vessels may be forced to

travel to a drydocking facility that is not conveniently located relative to our vessels' positions. The loss of

earnings while these vessels are forced to wait for space or to travel to more distant drydocking facilities

may adversely affect our business and financial condition.

The operation of dry bulk vessels has certain unique operational risks. With a dry bulk vessel, the cargo

itself and its interaction with the ship can be a risk factor. By their nature, dry bulk cargoes are often heavy,

dense and easily shifted, and react badly to water exposure. In addition, dry bulk vessels are often

subjected to battering treatment during unloading operations with grabs, jackhammers (to pry encrusted

cargoes out of the hold), and small bulldozers. This treatment may cause damage to the dry bulk vessel.

Dry bulk vessels damaged due to treatment during unloading procedures may be more susceptible to a

breach at sea. Hull breaches in dry bulk vessels may lead to the flooding of their holds. If flooding occurs

in the forward holds, the bulk cargo may become so waterlogged that the vessel's bulkheads may buckle

under the resulting pressure leading to the loss of the dry bulk vessel. These risks may also impact the risk

of loss of life or harm to our crew.

If we are unable to adequately maintain or safeguard our vessels, we may be unable to prevent these

events. Any of these circumstances or events could negatively impact our business, financial condition or

results of operations. In addition, the loss of any of our vessels could harm our crew and our reputation as

a safe and reliable vessel owner and operator.

If our vessels call on ports located in countries or territories that are the subject of sanctions or

embargoes imposed by the U.S. government, the European Union, the United Nations, or other

governmental authorities, it could lead to monetary fines or penalties and may adversely affect our

reputation and the market for our securities.

We have not engaged in shipping activities in countries or territories or with government-controlled entities

in 2023 in violation of any applicable sanctions or embargoes imposed by the U.S. government, the EU,

the United Nations or other applicable governmental authorities. Our contracts with our charterers prohibit

them from causing our vessels to call on ports located in sanctioned countries or territories or carrying

cargo for entities that are the subject of sanctions. Although our charterers may, in certain cases, control

the operation of our vessels, we have monitoring processes in place to ensure our compliance with

applicable economic sanctions and embargo laws. Nevertheless, it remains possible that our charterers

may cause our vessels to trade in violation of sanctions provisions without our consent. If such activities

result in a violation of applicable sanctions or embargo laws, we could be subject to monetary fines,

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penalties, or other sanctions, and our reputation and the market for our common shares could be adversely

affected.

The applicable sanctions and embargo laws and regulations of these different jurisdictions vary in their

application and do not all apply to the same covered persons or proscribe the same activities. In addition,

the sanctions and embargo laws and regulations of each jurisdiction may be amended to increase or reduce

the restrictions they impose over time, and the lists of persons and entities designated under these laws

and regulations are amended frequently. Moreover, most sanctions regimes provide that entities owned or

controlled by the persons or entities designated in such lists are also subject to sanctions. The U.S. and

EU have enacted new sanctions programs in recent years. Additional countries or territories, as well as

additional persons or entities within or affiliated with those countries or territories, have, and in the future

will, become the target of sanctions. These require us to be diligent in ensuring our compliance with

sanctions laws. Further, the U.S. has increased its focus on sanctions enforcement with respect to the

shipping sector. Current or future counterparties of ours may be affiliated with persons or entities that are

or may be in the future the subject of sanctions or embargoes imposed by the United States, EU, and/or

other international bodies. If we determine that such sanctions require us to terminate existing or future

contracts to which we, or our subsidiaries, are party or if we are found to be in violation of such applicable

sanctions, our results of operations may be adversely affected, or we may suffer reputational harm.

As a result of Russia’s actions in Ukraine, the U.S., EU and United Kingdom, together with numerous other

countries, have imposed significant sanctions on persons and entities associated with Russia and Belarus,

as well as comprehensive sanctions on certain areas within the Donbas region of Ukraine, and such

sanctions apply to entities owned or controlled by such designated persons or entities. These sanctions

adversely affect our ability to operate in the region and also restrict parties whose cargo we may carry. 

Although we believe that we have been in compliance with all applicable sanctions and embargo laws and

regulations in 2023 and up to the date of this annual report, and intend to maintain such compliance, there

can be no assurance that we or our charterers will be in compliance in the future, particularly as the scope

of certain laws may be unclear and may be subject to changing interpretations. Any such violation could

result in fines, penalties or other sanctions that could severely impact our ability to access U.S. capital

markets and conduct our business and could result in our reputation and the markets for our securities to

be adversely affected and/or in some investors deciding, or being required, to divest their interest, or not

to invest, in us. In addition, certain institutional investors may have investment policies or restrictions that

prevent them from holding securities of companies that have contracts with countries or territories identified

by the U.S. government as state sponsors of terrorism. The determination by these investors not to invest

in, or to divest from, our shares may adversely affect the price at which our shares trade. Moreover, our

charterers may violate applicable sanctions and embargo laws and regulations as a result of actions that

do not involve us or our vessels, and those violations could in turn negatively affect our reputation. In

addition, our reputation and the market for our securities may be adversely affected if we engage in certain

other activities, such as entering into charters with individuals or entities that are not controlled by the

governments of countries or territories that are the subject of certain U.S. sanctions or embargo laws, or

engaging in operations associated with those countries or territories pursuant to contracts with third parties

that are unrelated to those countries or territories or entities controlled by their governments. Investor

perception of the value of our common stock may be adversely affected by the consequences of war, the

effects of terrorism, civil unrest and governmental actions in countries or territories that we operate in.

The smuggling of drugs or other contraband onto our vessels may lead to governmental claims

against us.

We expect that our vessels will call in ports in areas where smugglers attempt to hide drugs and other

contraband on vessels, with or without the knowledge of crew members. To the extent our vessels are

found with contraband, whether inside or attached to the hull of our vessel and whether with or without the

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knowledge of any of our crew, we may face governmental or other regulatory claims which could have an

adverse effect on our business, results of operations, cash flows and financial condition.

Maritime claimants could arrest or attach one or more of our vessels, which could interrupt our

business or have a negative effect on our cash flows.

Crew members, suppliers of goods and services to a vessel, shippers of cargo, lenders, and other parties

may be entitled to a maritime lien against a vessel for unsatisfied debts, claims or damages. In many

jurisdictions, a maritime lien holder may enforce its lien by “arresting” or “attaching” a vessel through judicial

or foreclosure proceedings. The arrest or attachment of one or more of our vessels could interrupt the cash

flow of the charterer and/or require us to pay a significant amount of money to have the arrest or attachment

lifted, which would have an adverse effect on our cash flows.

In addition, in some jurisdictions, such as South Africa, under the “sister-ship” theory of liability, a claimant

may arrest both the vessel that is subject to the claimant’s maritime lien and any “associated” vessel, which

is any vessel owned or controlled by the same owner. Claimants could try to assert “sister-ship” liability

against one vessel in our fleet for claims relating to another of our ships. Under some of our present

charters, if the vessel is arrested or detained as a result of a claim against us, we may be in default of our

charter and the charterer may suspend the payment of hire under the charter and charge us with any

additional expenses incurred during that period, which may negatively impact our revenues and cash flows.

We conduct business in China, where the legal system is not fully developed and has inherent

uncertainties that could limit the legal protections available to us.

Some of our vessels may be chartered to Chinese customers and from time to time on our charterers'

instructions, our vessels may call on Chinese ports. Such charters and voyages may be subject to

regulations in China that may require us to incur new or additional compliance or other administrative costs

and may require that we pay to the Chinese government new taxes or other fees. Applicable laws and

regulations in China may not be well publicized and may not be known to us or to our charterers in advance

of us or our charterers becoming subject to them, and the implementation of such laws and regulations

may be inconsistent. Changes in Chinese laws and regulations, including with regards to tax matters, or

changes in their implementation by local authorities could affect our vessels if chartered to Chinese

customers as well as our vessels calling to Chinese ports and could have a material adverse impact on our

business, financial condition and results of operations.

Governments could requisition our vessels during a period of war or emergency, resulting in a loss

of earnings.

A government could requisition one or more of our vessels for title or for hire. Requisition for title occurs

when a government takes control of a vessel and becomes her owner, while requisition for hire occurs

when a government takes control of a vessel and effectively becomes her charterer at dictated charter

rates. Generally, requisitions occur during periods of war or emergency, although governments may elect

to requisition vessels in other circumstances. Although we would be entitled to compensation in the event

of a requisition of one or more of our vessels, the amount and timing of payment would be uncertain.

Government requisition of one or more of our vessels may negatively impact our revenues and reduce the

amount of cash we may have available for distribution as dividends to our shareholders, if any such

dividends are declared.

Failure to comply with the U.S. Foreign Corrupt Practices Act could result in fines, criminal

penalties and an adverse effect on our business.

We may operate in a number of countries throughout the world, including countries suspected to have a

risk of corruption. We are committed to doing business in accordance with applicable anti-corruption laws

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and have adopted measures designed to ensure compliance with the U.S. Foreign Corrupt Practices Act

of 1977, as amended (the “FCPA”). We are subject, however, to the risk that we, our affiliated entities or

our or their respective officers, directors, employees and agents may take actions determined to be in

violation of such anti-corruption laws, including the FCPA. Any such violation could result in substantial

fines, sanctions, civil and/or criminal penalties, curtailment of operations in certain jurisdictions, and might

adversely affect our business, earnings or financial condition. In addition, actual or alleged violations could

damage our reputation and ability to do business. Furthermore, detecting, investigating, and resolving

actual or alleged violations is expensive and can consume significant time and attention of our senior

management.

Changing laws and evolving reporting requirements could have an adverse effect on our business.

Changing laws, regulations and standards relating to reporting requirements, including the European Union

General Data Protection Regulation, or GDPR, may create additional compliance requirements for us.

GDPR broadens the scope of personal privacy laws to protect the rights of European Union citizens and

requires organizations to report on data breaches within 72 hours and be bound by more stringent rules

for obtaining the consent of individuals on how their data can be used. GDPR has become enforceable on

May 25, 2018 and non-compliance may expose entities to significant fines or other regulatory claims which

could have an adverse effect on our business, financial condition, and operations.

Company Specific Risk Factors

The market values of our vessels could decline, which could limit the amount of funds that we can

borrow and could trigger breaches of certain financial covenants contained in our loan facilities,

which could adversely affect our operating results, and we may incur a loss if we sell vessels

following a decline in their market values.

While the market values of vessels and the freight charter market have a very close relationship as the

charter market moves from trough to peak, the time lag between the effect of charter rates on market values

of ships can vary.

The market values of our vessels have generally experienced high volatility, and you should expect the

market values of our vessels to fluctuate depending on a number of factors including:

●

the prevailing level of charter hire rates;

●

general economic and market conditions affecting the shipping industry;

●

competition from other shipping companies and other modes of transportation;

●

the types, sizes and ages of vessels;

●

the supply of and demand for vessels;

●

applicable governmental or other regulations;

●

technological advances; 

●

the need to upgrade vessels as a result of charterer requirements, technological advances in vessel

design or equipment or otherwise; and

●

the cost of newbuildings.

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If the market values of our vessels decline, we may not be in compliance with certain covenants contained

in our loan facilities and we may not be able to refinance our debt or obtain additional financing or incur

debt on terms that are acceptable to us or at all. As of December 31, 2023, we were in compliance with all

of the covenants in our loan facilities. If we are not able to comply with the covenants in our loan facilities

or are unable to obtain waivers or amendments or otherwise remedy the relevant breach, our lenders could

accelerate our debt and foreclose on our vessels. 

Furthermore, if we sell any of our owned vessels at a time when prices are depressed, our business, results

of operations, cash flow and financial condition could be adversely affected. Moreover, if we sell a vessel

at a time when vessel prices have fallen, the sale may be at less than the vessel's carrying amount in our

financial statements, resulting in a loss and a reduction in earnings. In addition, if vessel values decline,

we may have to record an impairment adjustment in our financial statements which could adversely affect

our financial results. 

We charter some of our vessels on short-term time charters in a volatile shipping industry and a

decline in charter hire rates could affect our results of operations and our ability to pay dividends.

Although significant exposure to short-term time charters is not unusual in the dry bulk shipping industry,

the short-term time charter market is highly competitive and spot market charter hire rates (which affect

time charter rates) may fluctuate significantly based upon available charters and the supply of, and demand

for, seaborne shipping capacity. While the short-term time charter market may enable us to benefit in

periods of increasing charter hire rates, we must consistently renew our charters and this dependence

makes us vulnerable to declining charter rates. As a result of the volatility in the dry bulk carrier charter

market, we may not be able to employ our vessels upon the termination of their existing charters at their

current charter hire rates or at all. The dry bulk carrier charter market is volatile, and in the recent past,

short-term time charter and spot market charter rates for some dry bulk carriers declined below the

operating costs of those vessels before rising. We cannot assure you that future charter hire rates will

enable us to operate our vessels profitably, or to pay dividends. 

Rising crew costs could adversely affect our results of operations. 

Due to an increase in the size of the global shipping fleet, the limited supply of and increased demand for

crew has created upward pressure on crew costs. Additionally, the return of a number of Ukrainian

seafarers to their homes as a result of the ongoing war in Ukraine has reduced the number of seafarers

globally, and thereby increased the pressure on crew wages. Continued higher crew costs or further

increases in crew costs could adversely affect our results of operations.

Our investment in Diana Wilhelmsen Management Limited may expose us to additional risks.

During 2015 we invested in a 50/50 joint venture with Wilhelmsen Ship Management which provides

management services to a limited number of vessels in our fleet and to affiliated companies, but our

eventual goal is to provide fleet management services to unaffiliated third party vessel operators. While

this joint venture may provide us in the future with a potential revenue source, it may also expose us to

risks such as low customer satisfaction, increased operating costs compared to those we would achieve

for our vessels, and inability to adequately staff our vessels with crew that meets our expectations or to

maintain our vessels according to our standards, which would adversely affect our financial condition.

A cyber-attack could materially disrupt our business.

We rely on information technology systems and networks in our operations and administration of our

business. Information systems are vulnerable to security breaches by computer hackers and cyber

terrorists. We rely on industry accepted security measures and technology to securely maintain confidential

25

and proprietary information maintained on our information systems. However, these measures and

technology may not adequately prevent security breaches. Our business operations could be targeted by

individuals or groups seeking to sabotage or disrupt our information technology systems and networks, or

to steal data. A successful cyber-attack could materially disrupt our operations, including the safety of our

operations, or lead to unauthorized release of information or alteration of information in our systems. Any

such attack or other breach of our information technology systems could have a material adverse effect on

our business and results of operations. In addition, the unavailability of the information systems or the

failure of these systems to perform as anticipated for any reason could disrupt our business and could

result in decreased performance and increased operating costs, causing our business and results of

operations to suffer. Any significant interruption or failure of our information systems or any significant

breach of security could adversely affect our business and results of operations. Our systems were the

subject of a malicious attack in September 2020 that resulted in disruptions to our computer networks for

a period of several days. We were able to successfully fully restore our systems without interruption to our

business or operations. Since then, we have taken extensive measures to enhance our security

infrastructure, reform network architecture, and implement rigorous security policies in line with ISO27001.

Key initiatives include establishing security testing, business continuity, disaster recovery, and incident

response programs, as well as implementing multi-factor authentication and a vulnerability management

framework. Despite these improvements we cannot assure you that we will be able to successfully thwart

all future attacks with causing material and adverse effect on our business.

Moreover, our risk of cyber-attacks and other sources of security breaches and incidents may be elevated

as a result of the ongoing conflicts between Russia and Ukraine. and the Israel-Hamas conflict. To the

extent such attacks have collateral effects on global critical infrastructure or financial institutions, such

developments could adversely affect our business, operating results and financial condition. At this time it

is difficult to assess the likelihood of such threat and any potential impact.

Even without actual breaches of information security, protection against increasingly sophisticated and

prevalent cyberattacks may result in significant future prevention, detection, response and management

costs, or other costs, including the deployment of additional cybersecurity technologies, engaging third-

party experts, deploying additional personnel and training employees. Further, as cyberthreats are

continually evolving, our controls and procedures may become inadequate, and we may be required to

devote additional resources to modify or enhance our systems in the future. Such expenses could have a

material adverse effect on our future performance, results of operations, cash flows and financial position.

Further, in July 2023, the SEC adopted amendments to its rules on cybersecurity risk management,

strategy, governance, and incident disclosure. The amendments, require us to report material cybersecurity

incidents involving our information systems and periodic reporting regarding our policies and procedures

to identify and manage cybersecurity risks, amongst other disclosures.

Climate change and greenhouse gas restrictions may adversely impact our operations and

markets.

Due to concern over the risk of climate change, a number of countries and the IMO have adopted, or are

considering the adoption of, regulatory frameworks to reduce greenhouse gas emissions. These regulatory

measures may include, among others, adoption of cap and trade regimes, carbon taxes, increased

efficiency standards and incentives or mandates for renewable energy. In July 2023, nations at the

International Maritime Organization’s Marine Environment Protection Committee (“MEPC”) 80 updated the

initial strategy to reduce greenhouse gas emissions from ships. The initial strategy identifies ―levels of

ambition to reducing greenhouse gas emissions, including (1) decreasing the carbon intensity from ships

through implementation of further phases of the EEDI for new ships; (2) reducing carbon dioxide emissions

per transport work, as an average across international shipping, by at least 20% by 2030, compared to

2008 emission levels; and (3) reducing the total annual greenhouse emissions by at least 70% by 2040

compared to 2008 while pursuing efforts towards phasing them out entirely.

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Since January 1, 2020, ships have to either remove sulfur from emissions or buy fuel with low sulfur content,

which may lead to increased costs and supplementary investments for ship owners. The interpretation of

"fuel oil used on board" includes use in main engine, auxiliary engines and boilers. We have elected to

comply with this regulation by using 0.5% sulfur fuels on board, which are available around the world but

often at a higher cost and may result in higher costs than other companies that elected to install scrubbers

on their vessels.

In addition, although the emissions of greenhouse gases from international shipping currently are not

subject to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, which

required adopting countries to implement national programs to reduce emissions of certain gases, or the

Paris Agreement (discussed further below), a new treaty may be adopted in the future that includes

restrictions on shipping emissions. Compliance with changes in laws, regulations and obligations relating

to climate change could increase our costs related to operating and maintaining our vessels and require

us to install new emission controls, acquire allowances or pay taxes related to our greenhouse gas

emissions or administer and manage a greenhouse gas emissions program. Revenue generation and

strategic growth opportunities may also be adversely affected.

Increasing scrutiny and changing expectations from investors, lenders and other market

participants with respect to our ESG policies may impose additional costs on us or expose us to

additional risks.

Companies across all industries are facing increasing scrutiny relating to their ESG policies. Investor

advocacy groups, certain institutional investors, investment funds, lenders and other market participants

are increasingly focused on ESG practices and in recent years have placed increasing importance on the

implications and social cost of their investments. Companies which do not adapt to or comply with investor,

lender or other industry shareholder expectations and standards, which are evolving, or which are

perceived to have not responded appropriately to the growing concern for ESG issues, regardless of

whether there is a legal requirement to do so, may suffer from reputational damage and the business,

financial condition, and/or stock price of such a company could be materially and adversely affected.

In February 2021, the Acting Chair of the SEC issued a statement directing the Division of Corporation

Finance to enhance its focus on climate-related disclosure in public company filings and in March 2021 the

SEC announced the creation of a Climate and ESG Task Force in the Division of Enforcement (the “Task

Force”). The Task Force’s goal is to develop initiatives to proactively identify ESG-related misconduct

consistent with increased investor reliance on climate and ESG-related disclosure and investment. To

implement the Task Force’s purpose, the SEC has taken several enforcement actions, with the first

enforcement action taking place in May 2022, and promulgated new rules. On March 21, 2022, the SEC

proposed that all public companies are to include extensive climate-related information in their SEC filings.

On May 25, 2022, SEC proposed a second set of rules aiming to curb the practice of "greenwashing" (i.e.,

making unfounded claims about one's ESG efforts) and would add proposed amendments to rules and

reporting forms that apply to registered investment companies and advisers, advisers exempt from

registration, and business development companies. On March 6, 2024, the SEC adopted final rules to

require registrants to disclose certain climate-related information in SEC filings of all public companies. The

final rules require companies to disclose, among other things: material climate-related risks; activities to

mitigate or adapt to such risks; information about the registrant's board of directors' oversight of climate-

related risks and management’s role in managing material climate-related risks; and information on any

climate-related targets or goals that are material to the registrant's business, results of operations, or

financial condition. Further, to facilitate investors' assessment of certain climate-related risks, the final rules

require disclosure of Scope 1 and/or Scope 2 greenhouse gas (GHG) emissions on a phased-in basis

when those emissions are material; the filing of an attestation report covering the required disclosure of

such registrants’ Scope 1 and/or Scope 2 emissions, also on a phased-in basis; and disclosure of the

financial statement effects of severe weather events and other natural conditions including, for example,

27

costs and losses. The final rules include a phased-in compliance period for all registrants, with the

compliance date dependent on the registrant’s filer status and the content of the disclosure. However, on

March 15, 2024, the U.S. Court of Appeals for the Fifth Circuit granted an administrative stay on the SEC's

recent climate disclosure rule.

We may face increasing pressures from investors, future lenders and other market participants, who are

increasingly focused on climate change, to prioritize sustainable energy practices, reduce our carbon

footprint and promote sustainability. As a result, we may be required to implement more stringent ESG

procedures or standards so that our existing and future investors and lenders remain invested in us and

make further investments in us. For example, in February 2021, we established a Sustainability Committee

and in March 2021, we signed an agreement with American Bureau of Shipping (“ABS”) to implement the

ABS Environmental MonitorTM digital sustainability solution across all our vessels managed by Diana

Shipping Services S.A. Additionally, in May 2021, we signed a sustainability - linked loan facility with ABN

AMRO Bank N.V., through six wholly-owned subsidiaries. Under this loan, the margin amount that we are

required to pay can be either increased or decreased depending on our ability to achieve certain

sustainability performance targets related to our fleet’s carbon emissions. If we do not meet the standards

in this loan, our business could be harmed.

Additionally, certain investors and lenders may exclude companies, such as us, from their investing

portfolios altogether due to environmental, social and governance factors. These limitations in both the

debt and equity capital markets may affect our ability to grow as our plans for growth may include accessing

the equity and debt capital markets. If those markets are unavailable, or if we are unable to access

alternative means of financing on acceptable terms, or at all, we may be unable to implement our business

strategy, which would have a material adverse effect on our financial condition and results of operations

and impair our ability to service our indebtedness. Further, it is likely that we will incur additional costs and

require additional resources to monitor, report and comply with wide ranging ESG requirements. The

occurrence of any of the foregoing could have a material adverse effect on our business and financial

condition. 

Moreover, from time to time, in alignment with our sustainability priorities, we may establish and publicly

announce goals and commitments in respect of certain ESG items. While we may create and publish

voluntary disclosures regarding ESG matters from time to time, many of the statements in those voluntary

disclosures are based on hypothetical expectations and assumptions that may or may not be representative

of current or actual risks or events or forecasts of expected risks or events, including the costs associated

therewith. Such expectations and assumptions are necessarily uncertain and may be prone to error or

subject to misinterpretation given the long timelines involved and the lack of an established single approach

to identifying, measuring and reporting on many ESG matters. If we fail to achieve or improperly report on

our progress toward achieving our environmental goals and commitments, the resulting negative publicity

could adversely affect our reputation and/or our access to capital.

The Public Company Accounting Oversight Board inspection of our independent accounting firm,

could lead to findings in our auditors’ reports and challenge the accuracy of our published audited

consolidated financial statements.

Auditors of U.S. public companies are required by law to undergo periodic Public Company Accounting

Oversight Board, or PCAOB, inspections that assess their compliance with U.S. law and professional

standards in connection with performance of audits of financial statements filed with the SEC. For several

years certain European Union countries, including Greece, did not permit the PCAOB to conduct

inspections of accounting firms established and operating in such European Union countries, even if they

were part of major international firms. Accordingly, unlike for most U.S. public companies, the PCAOB was

prevented from evaluating our auditor’s performance of audits and its quality control procedures, and,

unlike stockholders of most U.S. public companies, we and our stockholders were deprived of the possible

benefits of such inspections. Since 2015, Greece has agreed to allow the PCAOB to conduct inspections

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of accounting firms operating in Greece. In the future, such PCAOB inspections could result in findings in

our auditors’ quality control procedures, question the validity of the auditor’s reports on our published

consolidated financial statements and the effectiveness of our internal control over financial reporting, and

cast doubt upon the accuracy of our published audited financial statements.

Our earnings may be adversely affected if we are not able to take advantage of favorable charter

rates.

We charter our dry bulk carriers to customers pursuant to short, medium or long-term time charters.

However, as part of our business strategy, the majority of our vessels are currently fixed on medium-term

time charters. We may extend the charter periods for additional vessels in our fleet, including additional dry

bulk carriers that we may purchase in the future, to take advantage of the relatively stable cash flow and

high utilization rates that are associated with long-term time charters. While we believe that long-term

charters provide us with relatively stable cash flows and higher utilization rates than shorter-term charters,

our vessels that are committed to long-term charters may not be available for employment on short-term

charters during periods of increasing short-term charter hire rates when these charters may be more

profitable than long-term charters.

Investment in derivative instruments such as forward freight agreements could result in losses.

Forward freight agreements, or FFAs and other derivative instruments may be used to hedge a vessel

owner's exposure to the charter market by providing for the sale of a contracted charter rate along a

specified route and period of time. Upon settlement, if the contracted charter rate is less than the average

of the rates, as reported by an identified index, for the specified route and period, the seller of the FFA is

required to pay the buyer an amount equal to the difference between the contracted rate and the settlement

rate, multiplied by the number of days in the specified period. Conversely, if the contracted rate is greater

than the settlement rate, the buyer is required to pay the seller the settlement sum. If we take positions in

FFAs or other derivative instruments and do not correctly anticipate charter rate movements over the

specified route and time period, we could suffer losses in the settling or termination of the FFA. This could

adversely affect our results of operations and cash flows.

We may have difficulty effectively managing our growth, which may adversely affect our earnings.

Since the completion of our initial public offering in March 2005, we have increased our fleet to 51 vessels

in operation in 2017, and as of the date of this annual report we have 41 vessels of which 39 vessels in

operation, owned and chartered-in, and two under construction and we have agreed to sell one of our

vessels. We may grow our fleet further in the future and this may require us to increase the number of our

personnel. We may also have to increase our customer base to provide continued employment for the new

vessels. 

Any future growth will primarily depend on our ability to:

●

locate and acquire suitable vessels;

●

identify and consummate acquisitions or joint ventures;

●

enhance our customer base;

●

manage our expansion; and

●

obtain required financing on acceptable terms.

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Growing any business by acquisition presents numerous risks, such as undisclosed liabilities and

obligations, the possibility that indemnification agreements will be unenforceable or insufficient to cover

potential losses and difficulties associated with imposing common standards, controls, procedures and

policies, obtaining additional qualified personnel, managing relationships with customers and integrating

newly acquired assets and operations into existing infrastructure. We cannot give any assurance that we

will be successful in executing any future growth plans or that we will not incur significant expenses and

losses in connection with our future growth. 

We cannot assure you that we will be able to borrow amounts under loan facilities and restrictive

covenants in our loan facilities impose financial and other restrictions on us.

Historically, we have entered into several loan agreements to finance vessel acquisitions, the construction

of newbuildings and working capital. As of December 31, 2023, we had $517.0 million outstanding under

our facilities and bond. Our ability to borrow amounts under our facilities is subject to the execution of

customary documentation relating to the facility, including security documents, satisfaction of certain

customary conditions precedent and compliance with terms and conditions included in the loan documents.

Prior to each drawdown, we are required, among other things, to provide the lender with acceptable

valuations of the vessels in our fleet confirming that the vessels in our fleet have a minimum value and that

the vessels in our fleet that secure our obligations under the facilities are sufficient to satisfy minimum

security requirements. To the extent that we are not able to satisfy these requirements, including as a result

of a decline in the value of our vessels, we may not be able to draw down the full amount under the facilities

without obtaining a waiver or consent from the lender. We will also not be permitted to borrow amounts

under the facilities if we experience a change of control.

The loan facilities also impose operating and financial restrictions on us. These restrictions may limit our

ability to, among other things:

●

pay dividends if there is a default under the loan facilities or if the payment of the dividend would

result in a default or breach of a loan covenants;

●

incur additional indebtedness, including through the issuance of guarantees;

●

change the flag, class or management of our vessels;

●

create liens on our assets;

●

sell our vessels;

●

enter into a time charter or consecutive voyage charters that have a term that exceeds, or which

by virtue of any optional extensions may exceed a certain period;

●

merge or consolidate with, or transfer all or substantially all our assets to, another person; and

●

enter into a new line of business.

Therefore, we may need to seek permission from our lenders in order to engage in some corporate actions.

Our lenders’ interests may be different from ours and we cannot guarantee that we will be able to obtain

our lenders' permission when needed. This may limit our ability to finance our future operations, make

acquisitions or pursue business opportunities.

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We cannot assure you that we will be able to refinance indebtedness incurred under our loan

facilities and bond.

We cannot assure you that we will be able to refinance our indebtedness with equity offerings or otherwise,

on terms that are acceptable to us or at all. If we are not able to refinance these amounts with the net

proceeds of equity offerings or otherwise, on terms acceptable to us or at all, we will have to dedicate a

greater portion of our cash flow from operations to pay the principal and interest of this indebtedness than

if we were able to refinance such amounts. If we are not able to satisfy these obligations, we may have to

undertake alternative financing plans. The actual or perceived credit quality of our charterers, any defaults

by them, and the market value of our fleet, among other things, may materially affect our ability to obtain

alternative financing. In addition, debt service payments under our loan facilities or alternative financing

may limit funds otherwise available for working capital, capital expenditures and other purposes. If we are

unable to meet our debt obligations, or if we otherwise default under our loan facilities or an alternative

financing arrangement, our lenders could declare the debt, together with accrued interest and fees, to be

immediately due and payable and foreclose on our fleet, which could result in the acceleration of other

indebtedness that we may have at such time and the commencement of similar foreclosure proceedings

by other lenders.

Purchasing and operating secondhand vessels may result in increased operating costs and

reduced operating days, which may adversely affect our earnings. 

As part of our current business strategy to increase our owned fleet, we may acquire new and secondhand

vessels. While we rigorously inspect previously owned or secondhand vessels prior to purchase, this does

not provide us with the same knowledge about their condition and cost of any required (or anticipated)

repairs that we would have had if these vessels had been built for and operated exclusively by us.

Accordingly, we may not discover defects or other problems with secondhand vessels prior to purchasing

or chartering-in, or may incur costs to terminate a purchase agreement. Any such hidden defects or

problems may require us to put a vessel into drydock, which would reduce our fleet utilization and increase

our operating costs. If a hidden defect or problem is not detected, it may result in accidents or other

incidents for which we may become liable to third parties. 

In general, the costs to maintain a vessel in good operating condition increase with the age of the vessel.

Older vessels are typically less fuel-efficient than more recently constructed vessels due to improvements

in engine technology. Cargo insurance rates increase with the age of a vessel, making older vessels less

desirable to charterers.

Furthermore, governmental regulations, safety or other equipment standards related to the age of vessels

may require expenditures for alterations, or the addition of new equipment and may restrict the type of

activities in which the vessel may engage. As our vessels age, market conditions may not justify those

expenditures or enable us to operate our vessels profitably during the remainder of their useful lives. 

We are subject to certain risks with respect to our counterparties on contracts, and failure of such

counterparties to meet their obligations could cause us to suffer losses or otherwise adversely

affect our business.

We enter into, among other things, charter parties with our customers. Such agreements subject us to

counterparty risks. The ability and willingness of each of our counterparties to perform its obligations under

a contract with us will depend on a number of factors that are beyond our control and may include, among

other things, general economic conditions, the condition of the maritime and offshore industries, the overall

financial condition of the counterparty, charter rates received for specific types of vessels, and various

expenses. Should a counterparty fail to honor its obligations under agreements with us, we could sustain

significant losses, which could have a material adverse effect on our business, financial condition, results

of operations and cash flows.

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In addition, in depressed market conditions, our charterers may no longer need a vessel that is currently

under charter or may be able to obtain a comparable vessel at lower rates. As a result, charterers may

seek to renegotiate the terms of their existing charter agreements or avoid their obligations under those

contracts. If our charterers fail to meet their obligations to us or attempt to renegotiate our charter

agreements, it may be difficult to secure substitute employment for such vessels, and any new charter

arrangements we secure may be at lower rates. As a result, we could sustain significant losses, which

could have a material adverse effect on our business, financial condition, results of operations and cash

flows. 

In the highly competitive international shipping industry, we may not be able to compete for

charters with new entrants or established companies with greater resources, and as a result, we

may be unable to employ our vessels profitably.

The operation of dry bulk vessels and transportation of dry bulk cargoes is extremely competitive and

fragmented. Competition for the transportation of dry bulk cargoes by sea is intense and depends on price,

location, size, age, condition and the acceptability of the vessel and its operators to the charterers.

Competition arises primarily from other vessel owners, some of whom have substantially greater resources

than we do. Due in part to the highly fragmented market, competitors with greater resources than us could

enter the dry bulk shipping industry and operate larger fleets through consolidations or acquisitions and

may be able to offer lower charter rates and higher quality vessels than we are able to offer. If we are

unable to successfully compete with other dry bulk shipping companies, our results of operations may be

adversely impacted.

We may be unable to attract and retain key management personnel and other employees in the

shipping industry, which may negatively impact the effectiveness of our management and results

of operations.

Our success depends to a significant extent upon the abilities and efforts of our management team. We

have entered into employment contracts with our Chief Executive Officer Mrs. Semiramis Paliou; our

President, Mr. Anastasios Margaronis; our Chief Financial Officer, Chief Strategy Officer, Treasurer and

Secretary Mr. Ioannis Zafirakis and our Chief Operating Officer Mr. Eleftherios Papatrifon. On February 22,

2023, Mr. Eleftherios Papatrifon resigned from his position of the Chief Operating Officer and since that

date serves as a member of the board of directors. Our success will depend upon our ability to retain key

members of our management team and to hire new members as may be necessary. The loss of any of

these individuals could adversely affect our business prospects and financial condition. Difficulty in hiring

and retaining replacement personnel could have a similar effect. We do not currently, nor do we intend to,

maintain “key man” life insurance on any of our officers or other members of our management team.

Technological innovation and quality and efficiency requirements from our customers could

reduce our charter hire income and the value of our vessels.

Our customers have a high and increasing focus on quality and compliance standards with their suppliers

across the entire supply chain, including the shipping and transportation segment. Our continued

compliance with these standards and quality requirements is vital for our operations. The charter hire rates

and the value and operational life of a vessel are determined by a number of factors including the vessel’s

efficiency, operational flexibility and physical life. Efficiency includes speed, fuel economy and the ability to

load and discharge cargo quickly. Flexibility includes the ability to enter harbors, utilize related docking

facilities and pass through canals and straits. The length of a vessel’s physical life is related to its original

design and construction, its maintenance and the impact of the stress of operations. We face competition

from companies with more modern vessels having more fuel efficient designs than our vessels, or eco

vessels, and if new dry bulk vessels are built that are more efficient or more flexible or have longer physical

lives than the current eco vessels, competition from the current eco vessels and any more technologically

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advanced vessels could adversely affect the amount of charter hire payments we receive for our vessels

and the resale value of our vessels could significantly decrease. Similarly, technologically advanced

vessels are needed to comply with environmental laws the investment in which along with the foregoing

could have a material adverse effect on our results of operations, charter hire payments and resale value

of vessels. This could have an adverse effect on our results of operations, cash flows, financial condition

and ability to pay dividends. 

We may not have adequate insurance to compensate us if we lose our vessels or to compensate

third parties.

We procure insurance for our fleet against risks commonly insured against by vessel owners and operators.

Our current insurance includes hull and machinery insurance, war risks insurance and protection and

indemnity insurance (which includes environmental damage and pollution insurance). We can give no

assurance that we are adequately insured against all risks or that our insurers will pay a particular claim.

Even if our insurance coverage is adequate to cover our losses, we may not be able to timely obtain a

replacement vessel in the event of a loss. Furthermore, in the future, we may not be able to obtain adequate

insurance coverage at reasonable rates for our fleet. We may also be subject to calls, or premiums, in

amounts based not only on our own claim records but also the claim records of all other members of the

protection and indemnity associations through which we receive indemnity insurance coverage for tort

liability. Our insurance policies also contain deductibles, limitations and exclusions which, although we

believe are standard in the shipping industry, may nevertheless increase our costs.

Our vessels may suffer damage and we may face unexpected drydocking costs, which could

adversely affect our cash flow and financial condition.

If our vessels suffer damage, they may need to be repaired at a drydocking facility. The costs of drydock

repairs are unpredictable and can be substantial. The loss of earnings while a vessel is being repaired and

repositioned, as well as the actual cost of these repairs not covered by our insurance, would decrease our

earnings and available cash. We may not have insurance that is sufficient to cover all or any of the costs

or losses for damages to our vessels and may have to pay drydocking costs not covered by our insurance.

The aging of our fleet may result in increased operating costs in the future, which could adversely

affect our earnings.

In general, the cost of maintaining a vessel in good operating condition increases with the age of the vessel.

As of the date of this annual report, our fleet consists of 41 vessels of which 39 in operation, owned and

chartered-in, having a combined carrying capacity of 4.4 million dead weight tons, or dwt, and a weighted

average age of 10.4 years and two Kamsarmax vessels under construction. As our fleet ages, we will incur

increased costs. Older vessels are typically less fuel efficient and more costly to maintain than more

recently constructed vessels due to improvements in engine technology. Cargo insurance rates increase

with the age of a vessel, making older vessels less desirable to charterers. Governmental regulations and

safety or other equipment standards related to the age of vessels may also require expenditures for

alterations or the addition of new equipment to our vessels and may restrict the type of activities in which

our vessels may engage. We cannot assure you that, as our vessels age, market conditions will justify

those expenditures or enable us to operate our vessels profitably during the remainder of their useful lives.

We are exposed to U.S. dollar and foreign currency fluctuations and devaluations that could harm

our reported revenue and results of operations.

We generate all of our revenues in U.S. dollars but incur around half of our operating expenses and our

general and administrative expenses in currencies other than the U.S. dollar, primarily the Euro. Because

a significant portion of our expenses is incurred in currencies other than the U.S. dollar, our expenses may

from time to time increase relative to our revenues as a result of fluctuations in exchange rates, particularly

33

between the U.S. dollar and the Euro, which could affect the amount of net income that we report in future

periods. While we historically have not mitigated the risk associated with exchange rate fluctuations through

the use of financial derivatives, we may employ such instruments from time to time in the future in order to

minimize this risk. Our use of financial derivatives would involve certain risks, including the risk that losses

on a hedged position could exceed the nominal amount invested in the instrument and the risk that the

counterparty to the derivative transaction may be unable or unwilling to satisfy its contractual obligations,

which could have an adverse effect on our results.

We depend upon a few significant customers for a large part of our revenues and the loss of one

or more of these customers could adversely affect our financial performance. 

We have historically derived a significant part of our revenues from a small number of charterers. During

2023, 2022, and 2021, approximately 13%, 34% and 10%, respectively, of our revenues were derived from

one, two and one charterers, respectively. If one or more of our charterers chooses not to charter our

vessels or is unable to perform under one or more charters with us and we are not able to find a

replacement charter, we could suffer a loss of revenues that could adversely affect our financial condition

and results of operations.

We are a holding company, and we depend on the ability of our subsidiaries to distribute funds to

us in order to satisfy our financial obligations.

We are a holding company and our subsidiaries conduct all of our operations and own all of our operating

assets. We have no significant assets other than the equity interests in our subsidiaries. As a result, our

ability to satisfy our financial obligations depends on our subsidiaries and their ability to distribute funds to

us. If we are unable to obtain funds from our subsidiaries, we may not be able to satisfy our financial

obligations.

Certain of our vessels are owned through joint ventures that we have entered into, and our views

about the operations of those vessels may differ from our joint venture partners and adversely

affect our interest in the joint ventures.

We have entered into two joint venture arrangements pursuant to which we own minority interests in four

CSOV newbuilding contracts through Windward Offshore GmbH & Co. KG and one dry bulk vessel through

Bergen Ultra, and we may enter into additional joint venture arrangement in the future. As a minority interest

holder in these joint ventures, we share voting and operational control of these joint ventures and the

operations of these vessel that we own through these joint ventures. Our joint venture partners may have

interests that are different from ours which may result in conflicting views as to the operation the vessels

owned by the joint ventures or the conduct of the business of the joint venture. We may not be able to

resolve such conflicts in our favor and such conflicts or differing view could have a material adverse effect

on our interest in the joint venture or our business in general. 

Because we are organized under the laws of the Marshall Islands, it may be difficult to serve us

with legal process or enforce judgments against us, our directors or our management.

We are organized under the laws of the Marshall Islands, and substantially all of our assets are located

outside of the United States. In addition, the majority of our directors and officers are non-residents of the

United States, and all or a substantial portion of the assets of these non-residents are located outside the

United States. As a result, it may be difficult or impossible for someone to bring an action against us or

against these individuals in the United States if they believe that their rights have been infringed under

securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the

Marshall Islands and of other jurisdictions may prevent or restrict them from enforcing a judgment against

our assets or the assets of our directors or officers.

34

The international nature of our operations may make the outcome of any bankruptcy proceedings

difficult to predict.

We are incorporated under the laws of the Republic of the Marshall Islands and we conduct operations in

countries around the world. Consequently, in the event of any bankruptcy, insolvency, liquidation,

dissolution, reorganization or similar proceeding involving us or any of our subsidiaries, bankruptcy laws

other than those of the United States could apply. If we become a debtor under U.S. bankruptcy law,

bankruptcy courts in the United States may seek to assert jurisdiction over all of our assets, wherever

located, including property situated in other countries. There can be no assurance, however, that we would

become a debtor in the United States, or that a U.S. bankruptcy court would be entitled to, or accept,

jurisdiction over such a bankruptcy case, or that courts in other countries that have jurisdiction over us and

our operations would recognize a U.S. bankruptcy court’s jurisdiction if any other bankruptcy court would

determine it had jurisdiction.

If we expand our business further, we may need to improve our operating and financial systems

and will need to recruit suitable employees and crew for our vessels.

Our current operating and financial systems may not be adequate if we further expand the size of our fleet

and our attempts to improve those systems may be ineffective. In addition, if we expand our fleet further,

we will need to recruit suitable additional seafarers and shoreside administrative and management

personnel. While we have not experienced any difficulty in recruiting to date, we cannot guarantee that we

will be able to continue to hire suitable employees if we expand our fleet. If we or our crewing agents

encounter business or financial difficulties, we may not be able to adequately staff our vessels. If we are

unable to grow our financial and operating systems or to recruit suitable employees should we determine

to expand our fleet, our financial performance may be adversely affected, among other things.

We may have to pay tax on U.S. source income, which would reduce our earnings.

Under the U.S. Internal Revenue Code of 1986, as amended, or the Code, 50% of the gross shipping

income of a vessel-owning or chartering corporation, such as ourselves and our subsidiaries, that is

attributable to transportation that begins or ends, but that does not both begin and end, in the United States

is characterized as U.S. source shipping income and such income is generally subject to a 4% U.S. federal

income tax without allowance for deductions, unless that corporation qualifies for exemption from tax under

Section 883 of the Code and the Treasury Regulations promulgated thereunder.

We expect that we and each of our subsidiaries qualify for this statutory tax exemption for the 2023 taxable

year and we will take this position for U.S. federal income tax return reporting purposes. However, there

are factual circumstances beyond our control that could cause us to lose the benefit of this tax exemption

in future years and thereby become subject to U.S. federal income tax on our U.S. source shipping income.

For example, in certain circumstances we may no longer qualify for exemption under Code Section 883 for

a particular taxable year if shareholders, other than “qualified shareholders”, with a five percent or greater

interest in our common shares owned, in the aggregate, 50% or more of our outstanding common shares

for more than half the days during the taxable year. Due to the factual nature of the issues involved, we

can give no assurances on our tax-exempt status or that of any of our subsidiaries.

If we or our subsidiaries are not entitled to this exemption under Section 883 of the Code for any taxable

year, we or our subsidiaries would be subject for those years to a 4% U.S. federal income tax on our gross

U.S.-source shipping income. The imposition of this taxation could have a negative effect on our business

and would result in decreased earnings available for distribution to our shareholders, although, for the 2023

taxable year, we estimate our maximum U.S. federal income tax liability to be immaterial if we were subject

to this U.S. federal income tax. See “Item 10. Additional Information—E. Taxation" for a more

comprehensive discussion of U.S. federal income tax considerations.

35

U.S. federal tax authorities could treat us as a “passive foreign investment company”, which could

have adverse U.S. federal income tax consequences to U.S. shareholders.

A foreign corporation will be treated as a “passive foreign investment company”, or PFIC, for U.S. federal

income tax purposes if either (1) at least 75% of its gross income for any taxable year consists of certain

types of “passive income” or (2) at least 50% of the average value of the corporation's assets produce or

are held for the production of those types of “passive income.” For purposes of these tests, “passive

income” includes dividends, interest, gains from the sale or exchange of investment property, and rents

and royalties other than rents and royalties which are received from unrelated parties in connection with

the active conduct of a trade or business. For purposes of these tests, income derived from the

performance of services does not constitute “passive income.” U.S. shareholders of a PFIC are subject to

a disadvantageous U.S. federal income tax regime with respect to the income derived by the PFIC, the

distributions they receive from the PFIC and the gain, if any, they derive from the sale or other disposition

of their shares in the PFIC.

Based on our current and proposed method of operation, we do not believe that we will be a PFIC with

respect to any taxable year. In this regard, we intend to treat the gross income we derive or are deemed to

derive from our time chartering activities as services income, rather than rental income. Accordingly, we

believe that our income from our time chartering activities does not constitute “passive income,” and the

assets that we own and operate in connection with the production of that income do not constitute assets

that produce or are held for the production of “passive income”.

There is substantial legal authority supporting this position consisting of case law and U.S. Internal

Revenue Service, or “IRS”, pronouncements concerning the characterization of income derived from time

charters and voyage charters as services income for other tax purposes. However, it should be noted that

there is also authority which characterizes time charter income as rental income rather than services

income for other tax purposes. Accordingly, no assurance can be given that the IRS or a court of law will

accept this position, and there is a risk that the IRS or a court of law could determine that we are a PFIC.

Moreover, no assurance can be given that we would not constitute a PFIC for any future taxable year if the

nature and extent of our operations changed.

If the IRS or a court of law were to find that we are or have been a PFIC for any taxable year, our U.S.

shareholders would face adverse U.S. federal income tax consequences. Under the PFIC rules, unless

those shareholders make an election available under the Code (which election could itself have adverse

consequences for such shareholders), such shareholders would be subject to U.S. federal income tax at

the then prevailing U.S. federal income tax rates on ordinary income plus interest upon excess distributions

and upon any gain from the disposition of our common stock, as if the excess distribution or gain had been

recognized ratably over the shareholder's holding period of our common stock. See “Item 10. Additional

Information—E. Taxation–United States Taxation of U.S. Holders–PFIC Status and Significant Tax

Consequences" for a more comprehensive discussion of the U.S. federal income tax consequences to U.S.

holders of our common stock if we are or were to be treated as a PFIC.

Changes in tax laws and unanticipated tax liabilities could materially and adversely affect the taxes

we pay, results of operations and financial results.

We are subject to income and other taxes in the United States and foreign jurisdictions, and our results of

operations and financial results may be affected by tax and other initiatives around the world. For instance,

there is a high level of uncertainty in today’s tax environment stemming from global initiatives put forth by

the Organisation for Economic Co-operation and Development’s (“OECD”) two-pillar base erosion and

profit shifting project. In October 2021, members of the OECD put forth two proposals: (i) Pillar One

reallocates profit to the market jurisdictions where sales arise versus physical presence; and (ii) Pillar Two

compels multinational corporations with €750 million or more in annual revenue to pay a global minimum

tax of 15% on income received in each country in which they operate. The reforms aim to level the playing

36

field between countries by discouraging them from reducing their corporate income taxes to attract foreign

business investment. Over 140 countries agreed to enact the two-pillar solution to address the challenges

arising from the digitalization of the economy and, in 2024, these guidelines were declared effective and

must now be enacted by those OECD member countries. It is possible that these guidelines, including the

global minimum corporate tax rate measure of 15%, could increase the burden and costs of our tax

compliance, the amount of taxes we incur in those jurisdictions and our global effective tax rate, which

could have a material adverse impact on our results of operations and financial results. 

Risks Relating to Our Common Stock

We cannot assure you that our board of directors will continue to declare dividends on shares of

our common stock in the future.

In order to position us to take advantage of market opportunities in a then-deteriorating market, our board

of directors, beginning with the fourth quarter of 2008, suspended our common stock dividend. As a result

of improving market conditions in 2021, our board of directors elected to declare quarterly dividends from

the fourth quarter of 2021 until the first quarter of 2024 and two special non-cash dividends. The actual

declaration of future cash dividends, and the establishment of record and payment dates, is subject to final

determination by our board of directors each quarter after its review of the company's financial

performance. We cannot assure you that our board of directors will declare and pay dividends going

forward. Our dividend policy is assessed by our board of directors from time to time, based on prevailing

market conditions, available cash, uses of capital, contingent liabilities, the terms of our loan facilities, our

growth strategy and other cash needs, the requirements of Marshall Islands law and other factors deemed

relevant to our board of directors. In addition, other external factors, such as our lenders imposing

restrictions on our ability to pay dividends. Under the terms of our agreements, we may not be permitted

to pay dividends that would result in an event of default or if an event of default has occurred and is

continuing.

Our strategy contemplates that we will finance the acquisition of additional vessels through a combination

of debt and equity financing on terms acceptable to us. If financing is not available to us on acceptable

terms, our board of directors may determine to finance or refinance acquisitions with cash from operations,

which could also reduce or even eliminate the amount of cash available for the payment of dividends.

Marshall Islands law generally prohibits the payment of dividends other than from surplus (retained

earnings and the excess of consideration received for the sale of shares above the par value of the shares)

or while a company is insolvent or would be rendered insolvent by the payment of such a dividend. We

may not have sufficient surplus in the future to pay dividends. 

In addition, our ability to pay dividends to holders of our common shares will be subject to the rights of

holders of our Series B Preferred Shares, which rank senior to our common shares with respect to

dividends, distributions and payments upon liquidation. No cash dividend may be paid on our common

stock unless full cumulative dividends have been or contemporaneously are being paid or provided for on

all outstanding Series B Preferred Shares for all prior and the then-ending dividend periods. Cumulative

dividends on our Series B Preferred Shares accrue at a rate of 8.875% per annum per $25.00 stated

liquidation preference per Series B Preferred Share, subject to increase upon the occurrence of certain

events, and are payable, as and if declared by our board of directors, on January 15, April 15, July 15 and

October 15 of each year, or, if any such dividend payment date otherwise would fall on a date that is not a

business day, the immediately succeeding business day. For additional information about our Series B

Preferred Shares, please see the section entitled "Description of Registrant's Securities to be Registered"

of our registration statement on Form 8-A filed with the SEC on February 13, 2014 and incorporated by

reference herein.

37

The market prices and trading volume of our shares of common stock may experience rapid and

substantial price volatility, which could cause purchasers of our common stock to incur substantial

losses.

Our shares of our common stock may experience similar rapid and substantial price volatility unrelated

to our financial performance, which could cause purchasers of our common stock to incur substantial

losses, which may be unpredictable and not bear any relationship to our business and financial

performance. Extreme fluctuations in the market price of our common stock may occur in response to

strong and atypical retail investor interest, including on social media and online forums, the direct

access by retail investors to broadly available trading platforms, the amount and status of short interest

in our common stock and our other securities, access to margin debt, trading in options and other

derivatives on our shares of common stock and any related hedging and other trading factors:

If there is extreme market volatility and trading patterns in our common stock, it may create several

risks for purchasers of our shares, including the following:

●

the market price of our common stock may experience rapid and substantial increases or

decreases unrelated to our operating performance or prospects, or macro or industry

fundamentals;

●

if our future market capitalization reflects trading dynamics unrelated to our financial

performance or prospects, purchasers of our common stock could incur substantial losses

as prices decline once the level of market volatility has abated;

●

if the future market price of our common stock declines, purchasers of shares of common

stock in this offering may be unable to resell such shares at or above the price at which they

acquired them. We cannot assure such purchasers that the market of our common stock

will not fluctuate or decline significantly in the future, in which case investors in this offering

could incur substantial losses.

Further, we may incur rapid and substantial increases or decreases in our common stock price in the

foreseeable future that may not coincide in timing with the disclosure of news or developments by or

affecting us. Accordingly, the market price of our common stock may fluctuate dramatically, and may

decline rapidly, regardless of any developments in our business. Overall, there are various factors,

many of which are beyond our control, that could negatively affect the market price of our common

stock or result in fluctuations in the price or trading volume of our common stock, including:

●

actual or anticipated variations in our annual or quarterly results of operations, including our

earnings estimates and whether we meet market expectations with regard to our earnings;

●

our ability to pay dividends or other distributions;

●

publication of research reports by analysts or others about us or the shipping industry in

which we operate which may be unfavorable, inaccurate, inconsistent or not disseminated

on a regular basis;

●

changes in market valuations of similar companies;

●

market reaction to any additional equity, debt or other securities that we may issue in the

future, and which may or may not dilute the holdings of our existing stockholders;

●

additions or departures of key personnel;

38

●

actions by institutional or significant stockholders;

●

short interest in our common stock or our other securities and the market response to such

short interest;

●

the dramatic increase in the number of individual holders of our common stock and their

participation in social media platforms targeted at speculative investing;

●

speculation in the press or investment community about our company or industries in which

we operate;

●

strategic actions by us or our competitors, such as acquisitions or other investments;

●

legislative, administrative, regulatory or other actions affecting our business, our industry;

●

investigations, proceedings, or litigation that involve or affect us;

●

the occurrence of any of the other risk factors included in this registration statement of which

this prospectus forms a part; and

●

general market and economic conditions.

Since we are incorporated in the Marshall Islands, which does not have a well-developed body of

corporate law, you may have more difficulty protecting your interests than shareholders of a U.S.

corporation.

Our corporate affairs are governed by our amended and restated articles of incorporation and bylaws and

by the Marshall Islands Business Corporations Act, or the BCA. The provisions of the BCA resemble

provisions of the corporation laws of a number of states in the United States. However, there have been

few judicial cases in the Marshall Islands interpreting the BCA. The rights and fiduciary responsibilities of

directors under the laws of the Marshall Islands are not as clearly established as the rights and fiduciary

responsibilities of directors under statutes or judicial precedent in existence in the United States. The rights

of shareholders of the Marshall Islands may differ from the rights of shareholders of companies

incorporated in the United States. While the BCA provides that it is to be interpreted according to the laws

of the State of Delaware and other states with substantially similar legislative provisions, there have been

few, if any, court cases interpreting the BCA in the Marshall Islands and we cannot predict whether Marshall

Islands courts would reach the same conclusions as U.S. courts. Thus, you may have more difficulty in

protecting your interests in the face of actions by the management, directors or controlling shareholders

than would shareholders of a corporation incorporated in a U.S. jurisdiction which has developed a

relatively more substantial body of case law. 

As a Marshall Islands corporation and with some of our subsidiaries being Marshall Islands entities

and also having subsidiaries in other offshore jurisdictions, our operations may be subject to

economic substance requirements, which could impact our business.

We are a Marshall Islands corporation and some of our subsidiaries are Marshall Islands entities. The

Marshall Islands has enacted economic substance laws and regulations with which we may be obligated

to comply. We believe that we and our subsidiaries are compliant with the Marshall Islands economic

substance requirements. However, if there were a change in the requirements or interpretation thereof, or

if there were an unexpected change to our operations, any such change could result in noncompliance with

the economic substance legislation and related fines or other penalties, increased monitoring and audits,

and dissolution of the non-compliant entity, which could have an adverse effect on our business, financial

condition or operating results.

39

EU Finance ministers rate jurisdictions for tax rates and tax transparency, governance and real economic

activity. Countries that are viewed by such finance ministers as not adequately cooperating, including by

not implementing sufficient standards in respect of the foregoing, may be put on a “grey list” or a “blacklist”.

Effective as of October 17, 2023 the Marshall Islands has been designated as a cooperating jurisdiction

for tax purposes. If the Marshall Islands is added to the list of non-cooperative jurisdictions in the future

and sanctions or other financial, tax or regulatory measures were applied by European Member States to

countries on the list or further economic substance requirements were imposed by the Marshall Islands,

our business could be harmed.

Certain existing shareholders will be able to exert considerable influence over matters on which

our shareholders are entitled to vote. 

As of the date of this annual report, Mrs. Semiramis Paliou, our Chief Executive Officer and Director,

beneficially owns 23,750,097 shares, or approximately 19.8% of our outstanding common stock, which is

held indirectly through entities over which she exercises sole voting power. Mrs. Paliou controls 10,675

shares of Series C Preferred Stock, par value $0.01 per share, issued on January 31, 2019, and 400 shares

of Series D Preferred Stock, issued on June 22, 2021. The Series C Preferred Stock vote with our common

shares and each share of the Series C Preferred Stock entitles the holder thereof to 1,000 votes on all

matters submitted to a vote of the common stockholders of the Issuer. The Series D Preferred Stock vote

with the common shares of the Company, and each share of the Series D Preferred Stock entitles the

holder thereof to up to 200,000 votes, on all matters submitted to a vote of the stockholders of the Company,

provided however, that to the extent the total number of votes one or more holders of Series D Preferred

Stock is entitled to vote (including any voting power of such holders derived from Series D Preferred Stock,

shares of Common Stock or any other voting security of the Company issued and outstanding as of the

date hereof or that may be issued in the future) on any matter submitted to a vote of stockholders of the

Company would exceed 36% of the total number of votes eligible to be cast on such matter, the total

number of votes that holders of Series D Preferred Stock may exercise derived from the Series D Preferred

Stock together with Common Shares and any other voting securities of the Company beneficially owned

by such holder, shall be reduced to 36% of the total number of votes entitled to vote on any matter put to

stockholders of the Company. Through her beneficial ownership of common shares and shares of Series

C Preferred Stock and Series D Preferred Stock, Mrs. Paliou controls 36% of the vote of any matter

submitted to the vote of the common shareholders. Please see "Item 7. Major Shareholders and Related

Party Transactions—A. Major Shareholders." While Mrs. Paliou and the entities controlled by Mrs. Paliou

have no agreement, arrangement or understanding relating to the voting of their shares of our common

stock, they are able to influence the outcome of matters on which our shareholders are entitled to vote,

including the election of directors and other significant corporate actions. This concentration of ownership

may have the effect of delaying, deferring or preventing a change in control, merger, consolidation,

takeover or other business combination. This concentration of ownership could also discourage a potential

acquirer from making a tender offer or otherwise attempting to obtain control of us, which could in turn have

an adverse effect on the market price of our shares. So long as our Chief Executive Officer continues to

own a significant amount of our equity, even though the amount held by her represents less than 50% of

our voting power, she will continue to be able to exercise considerable influence over our decisions. The

interests of these shareholders may be different from your interests.

Future sales of our common stock could cause the market price of our common stock to decline.

Our amended and restated articles of incorporation authorize us to issue up to 1,000,000,000 shares of

common stock, of which, as of December 31, 2023, 113,065,725 shares were outstanding. The number of

shares of common stock available for sale in the public market is limited by restrictions applicable under

securities laws and agreements that we and our executive officers, directors and principal shareholders

have entered into.

40

Sales of a substantial number of shares of our common stock in the public market, or the perception that

these sales could occur, may depress the market price for our common stock. These sales could also

impair our ability to raise additional capital through the sale of our equity securities in the future.

Anti-takeover provisions in our organizational documents could make it difficult for our

shareholders to replace or remove our current board of directors or have the effect of discouraging,

delaying or preventing a merger or acquisition, which could adversely affect the market price of

our common stock.

Several provisions of our amended and restated articles of incorporation and bylaws could make it difficult

for our shareholders to change the composition of our board of directors in any one year, preventing them

from changing the composition of management. In addition, the same provisions may discourage, delay or

prevent a merger or acquisition that shareholders may consider favorable.

These provisions include:

●

authorizing our board of directors to issue “blank check” preferred stock without shareholder

approval;

●

providing for a classified board of directors with staggered, three-year terms;

●

prohibiting cumulative voting in the election of directors;

●

authorizing the removal of directors only for cause and only upon the affirmative vote of the

holders of a majority of the outstanding shares of our common stock entitled to vote for the

directors;

●

prohibiting shareholder action by written consent;

●

limiting the persons who may call special meetings of shareholders; and

●

establishing advance notice requirements for nominations for election to our board of directors

or for proposing matters that can be acted on by shareholders at shareholder meetings.

In addition, we have adopted a Stockholders Rights Agreement, dated January 15, 2016, pursuant to which

our board of directors may cause the substantial dilution of any person that attempts to acquire us without

the approval of our board of directors.

These anti-takeover provisions, including provisions of our Stockholders Rights Agreement, could

substantially impede the ability of public shareholders to benefit from a change in control and, as a result,

may adversely affect the market price of our common stock and your ability to realize any potential change

of control premium.

Our Series B Preferred Shares are senior obligations of ours and rank prior to our common shares

with respect to dividends, distributions and payments upon liquidation, which could have an

adverse effect on the value of our common shares.

The rights of the holders of our Series B Preferred Shares rank senior to the obligations to holders of our

common shares. Upon our liquidation, the holders of Series B Preferred Shares will be entitled to receive

a liquidation preference of $25.00 per share, plus all accrued but unpaid dividends, prior and in preference

to any distribution to the holders of any other class of our equity securities, including our common shares.

The existence of the Series B Preferred Shares could have an adverse effect on the value of our common

shares.

41

Risks Relating to Our Series B Preferred Stock

We may not have sufficient cash from our operations to enable us to pay dividends on our Series

B Preferred Shares following the payment of expenses and the establishment of any reserves.

We pay quarterly dividends on our Series B Preferred Shares only from funds legally available for such

purpose when, as and if declared by our board of directors. We may not have sufficient cash available

each quarter to pay dividends. The amount of dividends we can pay on our Series B Preferred Shares

depends upon the amount of cash we generate from and use in our operations, which may fluctuate.

The amount of cash we have available for dividends on our Series B Preferred Shares will not depend

solely on our profitability. The actual amount of cash we have available to pay dividends on our Series B

Preferred Shares depends on many factors, including the following:

●

changes in our operating cash flow, capital expenditure requirements, working capital requirements

and other cash needs;

●

restrictions under our existing or future credit facilities or any future debt securities on our ability to

pay dividends if an event of default has occurred and is continuing or if the payment of the dividend

would result in an event of default, or under certain facilities if it would result in the breach of certain

financial covenants;

●

the amount of any cash reserves established by our board of directors; and

●

restrictions under Marshall Islands law, which generally prohibits the payment of dividends other

than from surplus (retained earnings and the excess of consideration received for the sale of shares

above the par value of the shares) or while a company is insolvent or would be rendered insolvent

by the payment of such a dividend.

The amount of cash we generate from our operations may differ materially from our net income or loss for

the period, which is affected by non-cash items, and our board of directors in its discretion may elect not

to declare any dividends. As a result of these and the other factors mentioned above, we may pay dividends

during periods when we record losses and may not pay dividends during periods when we record net

income.

The Series B Preferred Shares represent perpetual equity interests.

The Series B Preferred Shares represent perpetual equity interests in us and, unlike our indebtedness, will

not give rise to a claim for payment of a principal amount at a particular date. As a result, holders of the

Series B Preferred Shares may be required to bear the financial risks of an investment in the Series B

Preferred Shares for an indefinite period of time. In addition, the Series B Preferred Shares will rank junior

to all our indebtedness and other liabilities, and to any other senior securities we may issue in the future

with respect to assets available to satisfy claims against us.

Our Series B Preferred Shares are subordinate to our indebtedness, and your interests could be

diluted by the issuance of additional preferred shares, including additional Series B Preferred

Shares, and by other transactions.

Our Series B Preferred Shares are subordinated to all of our existing and future indebtedness. Therefore,

our ability to pay dividends on, redeem or pay the liquidation preference on our Series B Preferred Shares

in liquidation or otherwise may be subject to prior payments due to the holders of our indebtedness. Our

existing indebtedness restricts, and our future indebtedness may include restrictions on, our ability to pay

42

dividends on or redeem preferred shares. Our amended and restated articles of incorporation currently

authorize the issuance of up to 50,000,000 preferred shares, par value $0.01 per share. Of these preferred

shares, 1,000,000 shares have been designated Series A Participating Preferred Stock, 5,000,000 shares

have been designated Series B Preferred Shares, 10,675 are designated as Series C Preferred Shares

and 400 are designated as Series D Preferred Shares. The Series B Preferred Shares are senior in rank

to the Series A Participating Preferred Shares. The issuance of additional Series B Preferred Shares or

other preferred shares on a parity with or senior to the Series B Preferred Shares would dilute the interests

of holders of our Series B Preferred Shares, and any issuance of preferred shares senior to our Series B

Preferred Shares or of additional indebtedness could affect our ability to pay dividends on, redeem or pay

the liquidation preference on our Series B Preferred Shares. The Series B Preferred Shares do not contain

any provisions affording the holders of our Series B Preferred Shares protection in the event of a highly

leveraged or other transaction, including a merger or the sale, lease or conveyance of all or substantially

all our assets or business, which might adversely affect the holders of our Series B Preferred Shares, so

long as the rights of our Series B Preferred Shares are not directly materially and adversely affected.

We may redeem the Series B Preferred Shares, and you may not be able to reinvest the redemption

price you receive in a similar security.

Since February 14, 2019, we may, at our option, redeem Series B Preferred Shares, in whole or in part, at

any time or from time to time. We may have an incentive to redeem Series B Preferred Shares voluntarily

if market conditions allow us to issue other preferred shares or debt securities at a rate that is lower than

the dividend on the Series B Preferred Shares. If we redeem Series B Preferred Shares, then from and

after the redemption date, your dividends will cease to accrue on your Series B Preferred Shares, your

Series B Preferred Shares shall no longer be deemed outstanding and all your rights as a holder of those

shares will terminate, except the right to receive the redemption price plus accumulated and unpaid

dividends, if any, payable upon redemption. If we redeem the Series B Preferred Shares for any reason,

you may not be able to reinvest the redemption price you receive in a similar security. 

Market interest rates may adversely affect the value of our Series B Preferred Shares.

One of the factors that may influence the price of our Series B Preferred Shares is the dividend yield on

the Series B Preferred Shares (as a percentage of the price of our Series B Preferred Shares) relative to

market interest rates. An increase in market interest rates, which are currently at low levels relative to

historical rates, may lead prospective purchasers of our Series B Preferred Shares to expect a higher

dividend yield, and higher interest rates would likely increase our borrowing costs and potentially decrease

funds available for distribution. Accordingly, higher market interest rates could cause the market price of

our Series B Preferred Shares to decrease.

As a holder of Series B Preferred Shares you have extremely limited voting rights.

Your voting rights as a holder of Series B Preferred Shares are extremely limited. Our common shares are

the only outstanding class or series of our shares carrying full voting rights. Holders of Series B Preferred

Shares have no voting rights other than the ability, subject to certain exceptions, to elect one director if

dividends for six quarterly dividend periods (whether or not consecutive) payable on our Series B Preferred

Shares are in arrears and certain other limited protective voting rights.

Our ability to pay dividends on and to redeem our Series B Preferred Shares is limited by the

requirements of Marshall Islands law.

Marshall Islands law provides that we may pay dividends on and redeem the Series B Preferred Shares

only to the extent that assets are legally available for such purposes. Legally available assets generally are

limited to our surplus, which essentially represents our retained earnings and the excess of consideration

received by us for the sale of shares above the par value of the shares. In addition, under Marshall Islands

43

law we may not pay dividends on or redeem Series B Preferred Shares if we are insolvent or would be

rendered insolvent by the payment of such a dividend or the making of such redemption.

The amount of your liquidation preference is fixed and you will have no right to receive any greater

payment regardless of the circumstances.

The payment due upon a liquidation is fixed at the redemption preference of $25.00 per share plus

accumulated and unpaid dividends to the date of liquidation. If, in the case of our liquidation, there are

remaining assets to be distributed after payment of this amount, you will have no right to receive or to

participate in these amounts. Furthermore, if the market price for your Series B Preferred Shares is greater

than the liquidation preference, you will have no right to receive the market price from us upon our

liquidation.

Risks Relating to Our Outstanding Warrants 

The issuance of our common stock upon the exercise of the Warrants may depress our stock price.

We could issue up to 33,919,605 shares of common stock in connection with the exercise of the Warrants.

The issuances of the shares of common stock upon exercise of the Warrants and the resale of such shares

after their issuance, or the perception that such sales could occur, could result in downward pressure on

our stock price and could impact our ability to raise capital through the sale of additional shares in the

future. See “Item 4. Information on the Company— A. History and development of the Company— Warrant

Distribution" for a more detailed discussion of our Warrants.

Item 4. Information on the Company

A. History and development of the Company

Diana Shipping Inc. is a holding company incorporated under the laws of Liberia in March 1999 as Diana

Shipping Investments Corp. In February 2005, the Company’s articles of incorporation were amended.

Under the amended and restated articles of incorporation, the Company was renamed Diana Shipping Inc.

and was re-domiciled from the Republic of Liberia to the Republic of the Marshall Islands. Our executive

offices are located at Pendelis 16, 175 64 Palaio Faliro, Athens, Greece. Our telephone number at this

address is +30-210-947-0100. Our agent and authorized representative in the United States is our wholly

owned subsidiary, Bulk Carriers (USA) LLC, established in September 2006, in the State of Delaware,

which is located at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. The SEC maintains an

Internet site that contains reports, proxy and information statements, and other information regarding

issuers that file electronically with the SEC. The address of the SEC's Internet site is http://www.sec.gov.

The address of the Company's Internet site is http://www.dianashippinginc.com.

Recent Developments 

Vessel acquisitions

In January 2023, we took delivery of DSI Aquarius, a 2016 built Ultramax dry bulk vessel of 60,309 dwt, for

a purchase price of $24.0 million in cash and 2,033,613 newly issued common shares. The vessel is one

of nine modern Ultramax dry bulk vessels that we entered into an agreement to purchase in August 2022.

In February 2024, we signed shipbuilding contracts for two 81,200 dwt methanol dual fuel new-building

Kamsarmax dry bulk vessels, for a purchase price of $46 million each, to be built at Tsuneishi Group

(Zhoushan) Shipbuilding Inc., China. The vessels are expected to be delivered to the Company by the

second half of 2027 and the first half of 2028, respectively.

44

Vessel disposals

In January 2023, we agreed to sell to an unrelated third party the vessel

Aliki

 for $15.08 million. The vessel

was delivered to her new owners on February 8, 2023. 

In February 2023, we agreed to sell to OceanPal, a related party, the vessel

Melia

 for $14.0 million, of

which $4.0 million was paid in cash and $10.0 million through 13,157 of OceanPal Series D Convertible

Preferred Shares. The vessel was delivered to her new owners on February 8, 2023.

In October 2023, we agreed to sell to an unrelated third party the vessel

Boston

 for $18.0 million. The

vessel was delivered to her new owners on December 6, 2023. 

In January 2024, we agreed to sell to an unrelated third party the vessel

Artemis

 for the purchase price of

$13.0 million. The vessel was delivered to her new owners on March 5, 2024.

In February 2024, we agreed to sell to an unrelated third party, the vessel

Houston,

for $23.3 million. The

vessel is expected to be delivered to the buyer latest by September 16, 2024.

Please read Note 6 – Advances for vessel acquisitions and Vessels, net of our consolidated financial

statements, included elsewhere in this Annual Report for a full description of the Company’s acquisitions

and sales of vessels as of December 31, 2023.

Other transactions

In February 2023, we signed a Memorandum of Agreement to acquire from an unaffiliated third-party an

Ultramax dry bulk vessel for a purchase price of $27.9 million. On April 28, 2023, the vessel’s ship owning

company was deconsolidated from the Company’s financial statements due to the Company’s loss of

control. Upon the deconsolidation, we retained 25% of the the total partnership interests.

In November 2023, we entered into a joint venture agreement, with two unrelated companies to form

Windward Offshore GmbH & Co. KG, or Windward, for the purpose of establishing and operating an

offshore wind vessel company. We agreed to contribute Euro 25.0 million, being 45.45% of Windward’s

capital, to construct two CSOVs. In January 2024, we committed to increase our contribution to the

partnership to Euro 50.0 million, being 45.87% of Windward’s capital in order for the partnership to place

orders for two additional CSOVs.

Dividends

On March 20, 2023, we paid a cash dividend on our common stock of $0.15 per share, or $16 million, to

all shareholders of record as of March 13, 2023 and on June 9, 2023, we distributed our Series D Preferred

Shares of OceanPal to our shareholders of record as of April 24, 2023.

On July 10, 2023, we distributed a dividend of $0.15 per share to our shareholders of record as of June

12, 2023, and paid $12.4 million in cash to shareholders who elected to receive cash and distributed

965,044 newly issued common shares to shareholders who elected to receive shares.

On September 8, 2023, we distributed a dividend of $0.15 per share to our shareholders of record as of

August 14, 2023, and paid $13.0 million in cash to shareholders who elected to receive cash and distributed

831,672 newly issued common shares to shareholders who elected to receive shares.

On December 4, 2023, we distributed a dividend of $0.15 per share to all shareholders of record as of

November 27, 2023, in the form of common stock and distributed 4,831,777 newly issued common shares. 

45

On March 12, 2024, we paid a cash dividend of $0.075 per share, or $9.0 million, to all shareholders of

record as of March 5, 2024.

Please read Note

11

– Capital Stock and Changes in Capital Accounts and Note 17 – Subsequent events

to our consolidated financial statements, included elsewhere in this Annual Report for a full description of

the Company’s dividends distribution as of December 31, 2023.

Loans

In February 2023, we early prepaid $8.1 million of outstanding debt due to the sale of

Melia

to OceanPal

and

Alik

i to an unaffiliated third party. 

On March 14, 2023, we early prepaid $11.8 million, being the outstanding balance of our loan with DNB

Bank ASA.

In April 2023, both loans held with BNP were refinanced through a new $100 million loan facility with Danish

Ship Finance and the outstanding balance of both loans, amounting to $75.2 million was prepaid in full.

On June 26, 2023, we prepaid in full both loans held with ABN Bank amounting to $68.7 million, which

were refinanced under a new loan agreement with DNB Bank ASA of $100.0 million, drawn on June 27,

2023. As part of the loan agreement, we entered into an interest rate swap with DNB for a notional amount

of $30.0 million, being 30% of the loan amount under which we pay a fixed rate and receive floating under

term SOFR.

On June 27, 2023, we drew down $22.5 million and prepaid in full the outstanding balance of our loan with

Nordea Bank of $20.9 million.

On June 29, 2023, we repurchased $5.9 million nominal value of the $125.0 million senior unsecured bond

issued in June 2021 with maturity in June 2026.

A full description of the Company’s loan facilities as of December 31, 2023 is included in Item 5 Operating

and Financial Review and Prospects and Note 8 of our consolidated financial statements and Notes

thereto, included elsewhere in this Annual Report.

Warrant Distribution 

On December 14, 2023, we issued warrants to purchase common shares (the “Warrants”) to the holders

of record of Common Stock as of the close of business on December 6, 2023 (the “Record Date”) on the

terms and conditions described in the Warrant Agreement (as defined below and attached as exhibit 2.10

to this annual report). Each holder received one Warrant for every five shares of issued and outstanding

shares of common stock held as of the Record Date (rounded down to the nearest whole number for any

fractional Warrant). Each Warrant entitles the holder to purchase, at the holder’s sole and exclusive

election, at the exercise price, one share of common stock plus, to the extent, described below, the Bonus

Share Fraction. A Bonus Share Fraction entitles a holder to receive an additional 0.5 of a share of common

stock for each Warrant exercised (the “Bonus Share Fraction”) without payment of any additional exercise

price. Since the dividend ex-Date on March 4, 2024, the Bonus Share Fraction was adjusted to 0.51292 of

a share of common stock for each Warrant exercised.

The right to receive the Bonus Share Fraction will expire at 5:00 p.m. New York City time (the “Bonus Share

Expiration Date”) upon the earlier of (i) the date specified by the Registrant upon not less than 20 business

days’ notice and (ii) the first business day following the last day of the first 30 consecutive trading day

period in which the daily VWAP of the shares of common stock has been at least equal to the then

46

applicable trigger price for at least 20 trading days (whether or not consecutive) (the “Bonus Price

Condition”). Any Warrant exercised with an exercise date after the Bonus Share Expiration Date will not be

entitled to any Bonus Share Fraction. The Company will make a public announcement of the Bonus Share

Expiration Date (i) at least 20 business days prior to such date, in the case of the Company setting a Bonus

Share Expiration Date and (ii) prior to market open on the Bonus Share Expiration Date in the case of a

Bonus Price Condition.

Unless earlier redeemed, the Warrants will expire and cease to be exercisable at 5:00 p.m. New York City

time on December 14, 2026 (the “Expiration Date”).

In connection with the Warrant distribution, we filed a prospectus supplement, dated December 14, 2023,

pursuant to our existing shelf registration statement on Form F-3 declared effective on July 9, 2021,

registering up to 33,919,605 shares of common stock to be issued upon exercise of the Warrants under

the Securities Act of 1933, as amended.

The Warrants commenced trading on the New York Stock Exchange under the ticker “DSX WS” on

December 14, 2023.

As of the date of this annual report, out of the 22,613,070 Warrants distributed in this transaction, 3,051,471

Warrants have been exercised and 4,597,192 common shares have been issued.

B. Business overview

We specialize in the ownership and bareboat charter-in of dry bulk vessels, determined as one business

segment. Each of our vessels is owned through a separate wholly-owned subsidiary. 

As of the date of this report, our fleet consisted of 41 vessels of which 39 in operation, owned and chartered-

in, having a combined carrying capacity of 4.4 million dead weight tons, or dwt, and a weighted average

age of 10.4 years and two Kamsarmax vessels under construction. 

As of December 31, 2023, we had a fleet of 40 dry bulk carriers, owned and chartered-in, consisting of nine

Ultramax, seven Panamax, six Kamsarmax, five Post-Panamax, nine Capesize and four Newcastlemax

vessels, having a combined carrying capacity of approximately 4.5 million dwt and a weighted average age

of 10.5 years. 

As of December 31, 2022, we had a fleet of 42 dry bulk carriers, consisting of eight Ultramax, eight

Panamax, six Kamsarmax, five Post-Panamax, eleven Capesize and four Newcastlemax vessels, having

a combined carrying capacity of approximately 4.9 million dwt and a weighted average age of 10.2 years.

As of December 31, 2022, the Company had agreed to acquire a 2016 built Ultramax dry bulk vessel of

60,309 dwt, delivered on January 30, 2023. 

During 2023, 2022 and 2021, we had a fleet utilization of 99.7%, 98.9% and 99.1%, respectively, our

vessels achieved daily time charter equivalent rates of $16,713, $22,735 and $15,759, respectively, and

we generated revenues of $262.1 million, $290.0 million and $214.2 million, respectively.

We operate our vessels worldwide, in markets that have historically exhibited seasonal variations in

demand and, as a result, in charter hire rates. The dry bulk carrier market is typically stronger in the fall

and winter months in anticipation of increased consumption of coal and other raw materials in the northern

hemisphere during the winter months. In addition, unpredictable weather patterns in these months tend to

disrupt vessel scheduling and supplies of certain commodities. This seasonality has a limited direct impact

on our operating results as we charter our vessels to customers pursuant to medium-term and long-term

time charter agreements.

47

Management of Our Fleet

The commercial and technical management of our fleet, owned and bareboat chartered-in, as well as the

provision of administrative services relating to the fleet’s operations, are carried out by our wholly-owned

subsidiary, Diana Shipping Services S.A., which we refer to as DSS, and Diana Wilhelmsen Management

Limited, a 50/50 joint venture with Wilhelmsen Ship Management, which we refer to as DWM. In exchange

for providing us with commercial and technical services, personnel and office space, we pay DSS a

commission, which is a percentage of the managed vessels’ gross revenues, a fixed monthly fee per

managed vessel and an additional monthly fee for the administrative services provided to Diana Shipping

Inc. Such services may include budgeting, reporting, monitoring of bank accounts, compliance with banks,

payroll services and any other possible service that Diana Shipping Inc. would require to perform its

operations. Similarly, in exchange for providing us with commercial and technical services, we pay to DWM

a commission which is a percentage of the managed vessels’ gross revenues and a fixed management

monthly fee for each managed vessel. The amounts deriving from the agreements with DSS are considered

inter-company transactions and, therefore, are eliminated from our consolidated financial statements. The

management fees and commissions deriving from the agreements with DWM are included in our statement

of operations in “Management fees to related party”, “Voyage Expenses”, “Advances for vessel

acquisitions” and “Vessels, net”.

Steamship Shipbroking Enterprises Inc., or Steamship, a related party controlled by our CEO Mrs.

Semiramis Paliou, provides brokerage services to us, since June 1, 2010. Brokerage fees are included in

“General and Administrative expenses” in our statement of operations. The terms of this relationship are

currently governed by a Brokerage Services Agreement dated February 23, 2024.

The following table presents certain information concerning the dry bulk carriers in our fleet, as of the date

of this annual report.

Fleet Employment (As of April 3, 2024)

VESSEL

SISTER

SHIPS*

GROSS

RATE (USD

PER DAY)

COM**

CHARTERERS

DELIVERY DATE

TO

CHARTERERS***

REDELIVERY DATE TO

OWNERS****

NOTES

BUILT DWT

9 Ultramax Bulk Carriers

1

DSI Phoenix

A

 13,250 

5.00%

ASL Bulk Marine Limited

4/Nov/22

15/Apr/2024 - 4/May/2024

1

2017 60,456

2

DSI Pollux

A

 14,000 

4.75%

Cargill Ocean

Transportation

(Singapore) Pte. Ltd.

28/Dec/23

20/Aug/2025 - 20/Oct/2025

2015 60,446

3

DSI Pyxis

A

 14,250 

5.00%

ASL Bulk Marine Limited

24/Sep/23

10/Oct/2024 - 10/Dec/2024

2018 60,362

4

DSI Polaris

A

 13,100 

5.00%

ASL Bulk Marine Limited

12/Nov/22

12/May/2024 - 12/Jul/2024

2018 60,404

5

DSI Pegasus

A

 14,000 

5.00%

Reachy Shipping (SGP)

Pte. Ltd.

7/Dec/22

15/Jul/2024 - 15/Sep/2024

2015 60,508

6

DSI Aquarius

B

 14,200 

5.00%

Engelhart CTP Freight

(Switzerland) SA

1/Feb/23

18/Jan/2024

2016 60,309

 14,500 

5.00%

Stone Shipping Ltd

18/Jan/24

1/Dec/2024 - 1/Feb/2025

7

DSI Aquila

B

 12,500 

5.00%

Western Bulk Carriers

AS

11/Nov/23

10/Nov/2024 - 10/Jan/2025

2015 60,309

8

DSI Altair

B

 13,800 

5.00%

Western Bulk Carriers

AS

23/Jun/23

10/Aug/2024 - 10/Oct/2024

2016 60,309

48

9

DSI Andromeda

B

 13,500 

5.00%

Bunge SA, Geneva

27/Nov/23

20/Feb/2025 - 20/Apr/2025

2, 3

2016 60,309

6 Panamax Bulk Carriers

10

ARTEMIS

 12,000 

5.00%

Jera Global Markets Pte.

Ltd.

14/Oct/23

23/Feb/2024

4

2006 76,942

11

LETO

 14,500 

4.75%

Cargill International

S.A., Geneva

29/Jan/23

5/Apr/2024 - 30/Apr/2024

1

2010 81,297

12

SELINA

C

 12,000 

4.75%

Cargill International

S.A., Geneva

20/May/23

15/Sep/2024 - 15/Nov/2024

2010 75,700

13

MAERA

C

 12,000 

4.75%

Cargill International

S.A., Geneva

16/Dec/22

29/Jan/2024

5

2013 75,403

 13,750 

5.00%

ST Shipping and

Transport Pte. Ltd.

29/Jan/24

20/Nov/2024 - 20/Jan/2025

14

ISMENE

 12,650 

5.00%

Paralos Shipping Pte.,

Ltd.

13/Sep/23

15/Apr/2025 - 30/Jun/2025

2013 77,901

15

CRYSTALIA

D

 11,250 

5.00%

Reachy Shipping (SGP)

Pte. Ltd.

6/Sep/23

05/Apr/2024 - 15/Apr/2024

1

2014 77,525

 13,900 

5.00%

Louis Dreyfus Company

Freight Asia Pte. Ltd.

-

-

6

16

ATALANDI

D

 13,250 

4.75%

Aquavita International

S.A.

15/Feb/23

10/Apr/2024 - 5/May/2024

1

2014 77,529

6 Kamsarmax Bulk Carriers

17

MAIA

E

 13,500 

5.00%

ST Shipping and

Transport Pte. Ltd.

23/Sep/23

15/Jun/2024 - 20/Aug/2024

2009 82,193

18

MYRSINI

E

 15,000 

5.00%

Salanc Pte. Ltd.

22/Nov/22

20/Apr/2024 - 28/Jun/2024

2010 82,117

19

MEDUSA

E

 14,250 

5.00%

ASL Bulk Shipping

Limited

14/May/23

10/Feb/2025 - 15/Apr/2025

2010 82,194

20

MYRTO

E

 12,650 

5.00%

Cobelfret S.A.,

Luxemburg

15/Jul/23

1/Nov/2024 - 15/Jan/2025

2013 82,131

21

ASTARTE

 15,000 

5.00%

Reachy Shipping (SGP)

Pte. Ltd.

29/Apr/23

1/Aug/2024 - 1/Oct/2024

2013 81,513

22

LEONIDAS P. C.

 17,000 

4.75%

Cargill International

S.A., Geneva

17/Mar/23

22/Feb/2024

7

2011 82,165

 17,000 

5.00%

Ming Wah International

Shipping Company

Limited

22/Feb/24

20/Aug/2025 - 20/Oct/2025

5 Post-Panamax Bulk Carriers

23

ALCMENE

 13,000 

5.00%

SwissMarine Pte. Ltd.,

Singapore

2/Jan/23

23/Mar/2024

2010 93,193

 16,000 

5.00%

Triangle Merchant

Maritime Co., Limited

24/Mar/24

13/May/2024-18/May/2024

8

24

AMPHITRITE

F

 14,250 

5.00%

Cobelfret S.A.,

Luxembourg

9/Nov/22

13/Jan/2024

2012 98,697

 15,000 

13/Jan/24

15/Nov/2024 - 15/Jan/2025

9

25

POLYMNIA

F

 15,000 

5.00%

Cobelfret S.A.,

Luxemburg

14/Jan/23

15/Apr/2024 - 31/May/2024

10

2012 98,704

26

ELECTRA

G

 14,500 

5.00%

Cobelfret S.A.,

Luxemburg

13/Apr/23

1/Jun/2024 - 1/Aug/2024

2013 87,150

49

27

PHAIDRA

G

 12,250 

4.75%

Aquavita International

S.A.

9/May/23

1/Sep/2024 - 15/Nov/2024

2013 87,146

9 Capesize Bulk Carriers

28

SEMIRIO

H

 14,150 

5.00%

Solebay Shipping Cape

Company Limited, Hong

Kong

18/Aug/23

20/Nov/2024 - 30/Jan/2025

2007 174,261

29

HOUSTON

H

 13,000 

5.00%

EGPN Bulk Carrier Co.,

Limited

21/Nov/22

1/Jul/2024 - 31/Aug/2024

11

2009 177,729

30

NEW YORK

H

 16,000 

5.00%

SwissMarine Pte. Ltd.,

Singapore

11/Jun/23

1/Oct/2024 - 7/Dec/2024

2010 177,773

31

SEATTLE

I

 17,500 

5.00%

Solebay Shipping Cape

Company Limited, Hong

Kong

1/Oct/23

15/Jul/2025 - 30/Sep/2025

2011 179,362

32

P. S. PALIOS

I

 31,000 

5.00%

Classic Maritime Inc.

11/Jun/22

15/Apr/2024 - 30/Jun/2024

2013 179,134

33

G. P. ZAFIRAKIS

J

 17,000 

5.00%

Solebay Shipping Cape

Company Limited, Hong

Kong

12/Jan/23

15/Jun/2024 - 15/Aug/2024

2014 179,492

34

SANTA BARBARA

J

 21,250 

5.00%

Smart Gain Shipping

Co., Limited

7/May/23

10/Oct/2024 - 10/Dec/2024

12

2015 179,426

35

NEW ORLEANS

 20,000 

5.00%

Kawasaki Kisen Kaisha,

Ltd.

7/Dec/23

15/Aug/2025 - 31/Oct/2025

12, 13

2015 180,960

36

FLORIDA

 25,900 

5.00%

Bunge S.A., Geneva

29/Mar/22

29/Jan/2027 - 29/May/2027

3

2022 182,063

4 Newcastlemax Bulk Carriers

37

LOS ANGELES

K

 17,700 

5.00%

Nippon Yusen Kabushiki

Kaisha, Tokyo

15/Jan/23

20/May/2024 - 5/Aug/2024

2012 206,104

38

PHILADELPHIA

K

 26,000 

5.00%

C Transport Maritime

Ltd., Bermuda

12/Apr/22

04/Feb/2024

2012 206,040

 22,500 

5.00%

Nippon Yusen Kabushiki

Kaisha, Tokyo

4/Feb/24

20/Apr/2025 - 20/Jul/2025

39

SAN FRANCISCO

L

 22,000 

5.00%

SwissMarine Pte. Ltd.,

Singapore

18/Feb/23

5/Jan/2025 - 5/Mar/2025

2017 208,006

40

NEWPORT NEWS

L

 20,000 

5.00%

Nippon Yusen Kabushiki

Kaisha, Tokyo

20/Sep/23

10/Mar/2025 - 10/Jun/2025

2017 208,021

* Each dry bulk carrier is a “sister ship”, or closely similar, to other dry bulk carriers that have the same letter.

** Total commission percentage paid to third parties.

*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to

the Company.

**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions,

and exceptions of the particular charterparty.

1Based on latest information.

2The fixture includes the option for redelivery of vessel east of Suez against a gross ballast bonus of US$250,000.

3Bareboat chartered-in for a period of ten years.

4Vessel has been sold and delivered to her new Owners on March 5, 2024.

50

5Charterers will compensate the Owners at a rate of 105% of the Baltic Panamax Index 5 TC average as published by the Baltic

Exchange on a daily basis or the vessel’s present charter party rate, whichever is higher, for the excess period commencing from

December 29, 2023 until the actual redelivery date.

6Vessel will be delivered to the new Charterers during the second quarter of 2024.

7Vessel off hire for 6.83 days.

8Redelivery date based on an estimated time charter trip duration of about 50-55 days.

9The charter rate will be US$12,250 per day for the first 30 days of the charter period.

10The charter rate was US$10,000 per day for the first 30 days of the charter period.

11Vessel has been sold and it is expected to be delivered to her new Owners by latest September 16, 2024.

12Bareboat chartered-in for a period of eight years.

13Vessel off hire for 3.65 days.

Our Customers

Our customers include regional and international companies, mainly with concentrations below 10% of our

gross revenues. During 2023, only one of our charterers accounted for 13% of our revenues. During 2022,

two of our charterers accounted for 34% of our revenues, in aggregate, and during 2021, one of our

charterers accounted for 10% of our revenues.

We charter our dry bulk carriers, owned and bareboat chartered-in, to customers pursuant to time charters.

Under our time charters, the charterer typically pays us a fixed daily charter hire rate and bears all voyage

expenses, including the cost of bunkers (fuel oil) and canal and port charges. We remain responsible for

paying the chartered vessel's operating expenses, including the cost of crewing, insuring, repairing and

maintaining the vessel. In 2023, we paid commissions that ranged from 4.75% to 5.0% of the total daily

charter hire rate of each charter to unaffiliated ship brokers and to in-house brokers associated with the

charterer, depending on the number of brokers involved with arranging the charter.

We strategically monitor developments in the dry bulk shipping industry on a regular basis and, subject to

market demand, seek to adjust the charter hire periods for our vessels according to prevailing market

conditions. In order to take advantage of relatively stable cash flow and high utilization rates, we fix some

of our vessels on long-term time charters. Currently, the majority of our vessels are employed on short to

medium-term time charters, which provides us with flexibility in responding to market developments. We

continuously evaluate our balance of short- and long-term charters and extend or reduce the charter hire

periods of the vessels in our fleet according to the developments in the dry bulk shipping industry.

Charter Hire Rates

Charter hire rates fluctuate by varying degrees among dry bulk carrier size categories. The volume and

pattern of trade in a small number of commodities (major bulks) affect demand for larger vessels. Therefore,

charter rates and vessel values of larger vessels often show greater volatility. Conversely, trade in a greater

number of commodities (minor bulks) drives demand for smaller dry bulk carriers. Accordingly, charter

rates and vessel values for those vessels are usually subject to less volatility.

Charter hire rates paid for dry bulk carriers are primarily a function of the underlying balance between

vessel supply and demand, although at times other factors may play a role. Furthermore, the pattern seen

in charter rates is broadly mirrored across the different charter types and the different dry bulk carrier

categories. In the time charter market, rates vary depending on the length of the charter period and vessel-

specific factors such as age, speed and fuel consumption.

51

In the voyage charter market, rates are, among other things, influenced by cargo size, commodity, port

dues and canal transit fees, as well as commencement and termination regions. In general, a larger cargo

size is quoted at a lower rate per ton than a smaller cargo size. Routes with costly ports or canals generally

command higher rates than routes with low port dues and no canals to transit. Voyages with a load port

within a region that includes ports where vessels usually discharge cargo or a discharge port within a region

with ports where vessels load cargo also are generally quoted at lower rates, because such voyages

generally increase vessel utilization by reducing the unloaded portion (or ballast leg) that is included in the

calculation of the return charter to a loading area.

Within the dry bulk shipping industry, the charter hire rate references, most likely to be monitored, are the

freight rate indices issued by the Baltic Exchange. These references are based on actual charter hire rates

under charters entered into by market participants as well as daily assessments provided to the Baltic

Exchange by a panel of major shipbrokers. The Baltic Panamax Index is the index with the longest history.

The Baltic Capesize Index and Baltic Handymax Index are of more recent origin. 

The Baltic Dry Index, or BDI, is a daily average of charter rates in 20 shipping routes measured on a time

charter and voyage basis and covering Capesize, Panamax, Supramax, and Handysize dry bulk carriers.

In 2023, the BDI ranged from a low of 530 to a high of 3,346 and closed at 1,714 on April 2, 2024.

The Dry Bulk Shipping Industry

The global dry bulk carrier fleet could be divided into seven categories based on a vessel's carrying

capacity. These categories consist of:

●

Very Large Ore Carriers

. Very large ore carriers, or VLOCs, have a carrying capacity of more

than 200,000 dwt and are a comparatively new sector of the dry bulk carrier fleet. VLOCs are built

to exploit economies of scale on long-haul iron ore routes. 

●

Capesize

. Capesize vessels have a carrying capacity of 110,000 -199,999 dwt. Only the largest

ports around the world possess the infrastructure to accommodate vessels of this size. Capesize

vessels are primarily used to transport iron ore or coal and, to a much lesser extent, grains, primarily

on long-haul routes. 

●

Post-Panamax

. Post-Panamax vessels have a carrying capacity of 80,000-109,999 dwt. These

vessels tend to have a shallower draft and larger beam than a standard Panamax vessel with a

higher cargo capacity. These vessels have been designed specifically for loading high cubic

cargoes from draught restricted ports, although they cannot transit the Panama Canal. 

●

Panamax

. Panamax vessels have a carrying capacity of 60,000-79,999 dwt. These vessels carry

coal, iron ore, grains, and, to a lesser extent, minor bulks, including steel products, cement and

fertilizers. Panamax vessels are able to pass through the Panama Canal, making them more

versatile than larger vessels with regard to accessing different trade routes. Most Panamax and

Post-Panamax vessels are “gearless,” and therefore must be served by shore-based cargo

handling equipment. However, there are a small number of geared vessels with onboard cranes, a

feature that enhances trading flexibility and enables operation in ports which have poor

infrastructure in terms of loading and unloading facilities.

52

●

Ultramax

 Ultramax is the largest class before Panamax and is the newer form of the smaller

Supramax with a maximum length of 200 meters and capacity that ranges from 60,000 dwt and

66,000 dwt. This class is considered an upgrade to Supramax class as it offers a better all-around

investment for Charterers and Shipowners due to its higher cargo carrying capacity and better

bunker efficiency. Ultramax class bulk carriers have 5 cargo holds. are fitted with 4 cranes and

usually are equipped with grabs allowing them to call more ports with no such facilities giving them

more versatility.

●

Handymax/Supramax

. Handymax vessels have a carrying capacity of 40,000-59,999 dwt. These

vessels operate in a large number of geographically dispersed global trade routes, carrying

primarily grains and minor bulks. Within the Handymax category there is also a sub-sector known

as Supramax. Supramax bulk carriers are ships between 50,000 to 59,999 dwt, normally offering

cargo loading and unloading flexibility with on-board cranes, or “gear,” while at the same time

possessing the cargo carrying capability approaching conventional Panamax bulk carriers. 

●

Handysize

.

 Handysize vessels have a carrying capacity of up to 39,999 dwt. These vessels are

primarily involved in carrying minor bulk cargoes. Increasingly, ships of this type operate within

regional trading routes, and may serve as trans-shipment feeders for larger vessels. Handysize

vessels are well suited for small ports with length and draft restrictions. Their cargo gear enables

them to service ports lacking the infrastructure for cargo loading and unloading.

Other size categories occur in regional trade, such as Kamsarmax, with a maximum length of 229 meters,

the maximum length that can load in the port of Kamsar in the Republic of Guinea. Other terms such as

Seawaymax, Setouchmax, Dunkirkmax, and Newcastlemax also appear in regional trade.

The supply of dry bulk carriers is dependent on the delivery of new vessels and the removal of vessels

from the global fleet, either through scrapping or loss. The level of scrapping activity is generally a function

of scrapping prices in relation to current and prospective charter market conditions, as well as operating,

repair and survey costs. The average age at which a vessel is scrapped was 29 years in 2022 and 28 years

in 2021.

The demand for dry bulk carrier capacity is determined by the underlying demand for commodities

transported in dry bulk carriers, which in turn is influenced by trends in the global economy. Demand for

dry bulk carrier capacity is also affected by the operating efficiency of the global fleet, along with port

congestion, which has been a feature of the market since 2004, absorbing tonnage and therefore leading

to a tighter balance between supply and demand. In evaluating demand factors for dry bulk carrier capacity,

the Company believes that dry bulk carriers can be the most versatile element of the global shipping fleets

in terms of employment alternatives. 

Vessel Prices 

Dry bulk vessel values in 2023 generally were lower as compared to 2022. Consistent with these trends

were the market values of our dry bulk carriers. As charter rates and vessel values partially decreased

during 2023, there can be no assurance as to how long charter rates and vessel values will remain at their

current levels or whether they will decrease or improve to any significant degree in the near future.

Competition 

Our business fluctuates in line with the main patterns of trade of the major dry bulk cargoes and varies

according to changes in the supply and demand for these items. We operate in markets that are highly

competitive and based primarily on supply and demand. We compete for charters on the basis of price,

vessel location, size, age and condition of the vessel, as well as on our reputation as an owner and

operator. We compete with other owners of dry bulk carriers in the Panamax, Post-Panamax and smaller

53

class sectors and with owners of Capesize and Newcastlemax dry bulk carriers. Ownership of dry bulk

carriers is highly fragmented.

We believe that we possess a number of strengths that provide us with a competitive advantage in the dry

bulk shipping industry:

●

We own a modern, high quality fleet of dry bulk carriers

. We believe that owning a modern, high

quality fleet reduces operating costs, improves safety and provides us with a competitive advantage

in securing favorable time charters. We maintain the quality of our vessels by carrying out regular

inspections, both while in port and at sea, and adopting a comprehensive maintenance program for

each vessel.

●

Our fleet includes groups of sister ships.

 We believe that maintaining a fleet that includes sister

ships enhances the revenue generating potential of our fleet by providing us with operational and

scheduling flexibility. The uniform nature of sister ships also improves our operating efficiency by

allowing our fleet managers to apply the technical knowledge of one vessel to all vessels of the

same series and create economies of scale that enable us to realize cost savings when maintaining,

supplying and crewing our vessels.

●

We have an experienced management team. 

Our management team consists of experienced

executives who have, on average, more than 30 years of operating experience in the shipping

industry and has demonstrated ability in managing the commercial, technical and financial areas of

our business.

●

We benefit from the experience and reputation of Diana Shipping Services S.A. and the relationship

with Wilhelmsen Ship Management through the Diana Wilhelmsen Management Limited joint

venture.

●

We benefit from strong relationships with members of the shipping and financial industries.

 We

have developed strong relationships with major international charterers, shipbuilders and financial

institutions that we believe are the result of the quality of our operations, the strength of our

management team and our reputation for dependability.

●

We have a strong balance sheet and a relatively low level of indebtedness.

 We believe that our

strong balance sheet and relatively low level of indebtedness provide us with the flexibility to

increase the amount of funds that we may draw under our loan facilities in connection with any

future acquisitions or otherwise and enable us to use cash flow that would otherwise be dedicated

to debt service for other purposes. 

Permits and Authorizations

We are required by various governmental and quasi-governmental agencies to obtain certain permits,

licenses and certificates with respect to our vessels. The kinds of permits, licenses and certificates required

depend upon several factors, including the commodity transported, the waters in which the vessel operates

the nationality of the vessel's crew and the age of a vessel. We have been able to obtain all permits,

licenses and certificates currently required to permit our vessels to operate. Additional laws and regulations,

environmental or otherwise, may be adopted which could limit our ability to do business or increase the

cost of us doing business.

Disclosure Pursuant to Section 219 of the Iran Threat Reduction and Syrian Human Rights

Act

Section 219 of the U.S. Iran Threat Reduction and Syria Human Rights Act of 2012, or the ITRA, added

new Section 13(r) to the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, requiring

54

each SEC reporting issuer to disclose in its annual and, if applicable, quarterly reports whether it or any of

its affiliates have knowingly engaged in certain activities, transactions or dealings relating to Iran or with

the Government of Iran or certain designated natural persons or entities involved in terrorism or the

proliferation of weapons of mass destruction during the period covered by the report. 

Pursuant to Section 13(r) of the Exchange Act, we note that none of our vessels made port calls to Iran in

2023 and to the date of this annual report. 

Environmental and Other Regulations in the Shipping Industry

Government regulation and laws significantly affect the ownership and operation of our fleet. We are

subject to international conventions and treaties, national, state and local laws and regulations in force in

the countries in which our vessels may operate or are registered relating to safety and health and

environmental protection including the storage, handling, emission, transportation and discharge of

hazardous and non-hazardous materials, and the remediation of contamination and liability for damage to

natural resources. Compliance with such laws, regulations and other requirements entails significant

expense, including vessel modifications and implementation of certain operating procedures.

A variety of government and private entities subject our vessels to both scheduled and unscheduled

inspections. These entities include the local port authorities (applicable national authorities such as the

United States Coast Guard (“USCG”), harbor master or equivalent), classification societies, flag state

administrations (countries of registry) and charterers, particularly terminal operators. Certain of these

entities require us to obtain permits, licenses, certificates and other authorizations for the operation of our

vessels. Failure to maintain necessary permits or approvals could require us to incur substantial costs or

result in the temporary suspension of the operation of one or more of our vessels.

Increasing environmental concerns have created a demand for vessels that conform to stricter

environmental standards. We are required to maintain operating standards for all of our vessels that

emphasize operational safety, quality maintenance, continuous training of our officers and crews and

compliance with United States and international regulations. We believe that the operation of our vessels

is in substantial compliance with applicable environmental laws and regulations and that our vessels have

all material permits, licenses, certificates or other authorizations necessary for the conduct of our

operations. However, because such laws and regulations frequently change and may impose increasingly

stricter requirements, we cannot predict the ultimate cost of complying with these requirements, or the

impact of these requirements on the resale value or useful lives of our vessels. In addition, a future serious

marine incident that causes significant adverse environmental impact could result in additional legislation

or regulation that could negatively affect our profitability.

International Maritime Organization

The International Maritime Organization, the United Nations agency for maritime safety and the prevention

of pollution by vessels (the “IMO”), has adopted the International Convention for the Prevention of Pollution

from Ships, 1973, as modified by the Protocol of 1978 relating thereto, collectively referred to as MARPOL

73/78 and herein as “MARPOL,” the International Convention for the Safety of Life at Sea of 1974 (“SOLAS

Convention”), and the International Convention on Load Lines of 1966 (the “LL Convention”). MARPOL

establishes environmental standards relating to oil leakage or spilling, garbage management, sewage, air

emissions, handling and disposal of noxious liquids and the handling of harmful substances in packaged

forms. MARPOL is applicable to drybulk, tanker and LNG carriers, among other vessels, and is broken

into six Annexes, each of which regulates a different source of pollution. Annex I relates to oil leakage or

spilling; Annexes II and III relate to harmful substances carried in bulk in liquid or in packaged form,

respectively; Annexes IV and V relate to sewage and garbage management, respectively; and Annex VI,

lastly, relates to air emissions. Annex VI was separately adopted by the IMO in September of 1997; new

emissions standards, titled IMO-2020, took effect on January 1, 2020.

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Air Emissions

In September of 1997, the IMO adopted Annex VI to MARPOL to address air pollution from vessels.

Effective May 2005, Annex VI sets limits on sulfur oxide and nitrogen oxide emissions from all commercial

vessel exhausts and prohibits “deliberate emissions” of ozone depleting substances (such as halons and

chlorofluorocarbons), emissions of volatile compounds from cargo tanks, and the shipboard incineration of

specific substances. Annex VI also includes a global cap on the sulfur content of fuel oil and allows for

special areas to be established with more stringent controls on sulfur emissions, as explained

below. Emissions of “volatile organic compounds” from certain vessels, and the shipboard incineration

(from incinerators installed after January 1, 2000) of certain substances (such as polychlorinated biphenyls,

or “PCBs”) are also prohibited. We believe that all our vessels are currently compliant in all material

respects with these regulations.

The Marine Environment Protection Committee, or “MEPC”, adopted amendments to Annex VI regarding

emissions of sulfur oxide, nitrogen oxide, particulate matter and ozone depleting substances, which entered

into force on July 1, 2010. The amended Annex VI seeks to further reduce air pollution by, among other

things, implementing a progressive reduction of the amount of sulfur contained in any fuel oil used on board

ships. On October 27, 2016, at its 70th session, the MEPC agreed to implement a global 0.5% m/m sulfur

oxide emissions limit (reduced from 3.50%) starting from January 1, 2020. This limitation can be met by

using low-sulfur compliant fuel oil, alternative fuels, or certain exhaust gas cleaning systems. Ships are

now required to obtain bunker delivery notes and International Air Pollution Prevention (“IAPP”) Certificates

from their flag states that specify sulfur content. Additionally, at MEPC 73, amendments to Annex VI to

prohibit the carriage of bunkers above 0.5% sulfur on ships were adopted and took effect March 1, 2020,

with the exception of vessels fitted with exhaust gas cleaning equipment (“scrubbers”) which can carry fuel

of higher sulfur content. These regulations subject ocean-going vessels to stringent emissions controls

and may cause us to incur substantial costs.

Sulfur content standards are even stricter within certain “Emission Control Areas,” or (“ECAs”). As of

January 1, 2015, ships operating within an ECA were not permitted to use fuel with sulfur content in excess

of 0.1% m/m. Amended Annex VI establishes procedures for designating new ECAs. Currently, the IMO

has designated four ECAs, including specified portions of the Baltic Sea area, North Sea area, North

American area and United States Caribbean area. Ocean-going vessels in these areas will be subject to

stringent emission controls and may cause us to incur additional costs. Other areas in China are subject

to local regulations that impose stricter emission controls. In December 2021, the member states of the

Convention of the Protection of the Mediterranean Sea Against Pollution agreed to support the designation

of a new ECA in the Mediterranean. On December 15, 2022, MEPC 79 adopted the designation of a new

ECA in the Mediterranean, with an effective date of May 1, 2025. In July 2023, MEPC 80 announced three

new ECA proposals, including the Canadian Arctic waters and the North-East Atlantic Ocean. If other ECAs

are approved by the IMO, or other new or more stringent requirements relating to emissions from marine

diesel engines or port operations by vessels are adopted by the U.S. Environmental Protection

Agency (“EPA”) or the states where we operate, compliance with these regulations could entail significant

capital expenditures or otherwise increase the costs of our operations.

Amended Annex VI also establishes new tiers of stringent nitrogen oxide emissions standards for marine

diesel engines, depending on their date of installation. At the MEPC meeting held from March to April 2014,

amendments to Annex VI were adopted which address the date on which Tier III Nitrogen Oxide (NOx)

standards in ECAs will go into effect. Under the amendments, Tier III NOx standards apply to ships that

operate in the North American and U.S. Caribbean Sea ECAs designed for the control of NOx produced

by vessels with a marine diesel engine installed and constructed on or after January 1, 2016. Tier III

requirements could apply to areas that will be designated for Tier III NOx in the future. At MEPC 70 and

MEPC 71, the MEPC approved the North Sea and Baltic Sea as ECAs for nitrogen oxide for ships built on

or after January 1, 2021. For the moment, this regulation relates to new building vessels and has no

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retroactive application to existing fleet. The EPA promulgated equivalent (and in some senses stricter)

emissions standards in 2010. As a result of these designations or similar future designations, we may be

required to incur additional operating or other costs.

As determined at the MEPC 70, the new Regulation 22A of MARPOL Annex VI became effective as of

March 1, 2018 and requires ships above 5,000 gross tonnage to collect and report annual data on fuel oil

consumption to an IMO database, with the first year of data collection having commenced on January 1,

2019. The IMO intends to use such data as the first step in its roadmap (through 2023) for developing its

strategy to reduce greenhouse gas emissions from ships, as discussed further below.

As of January 1, 2013, MARPOL made mandatory certain measures relating to energy efficiency for ships.

All ships are now required to develop and implement a Ship Energy Efficiency Management

Plans (“SEEMPs”), and new ships must be designed in compliance with minimum energy efficiency levels

per capacity mile as defined by the Energy Efficiency Design Index (“EEDI”). Under these measures, by

2025, all new ships built will be 30% more energy efficient than those built in 2014. Additionally, MEPC 75

adopted amendments to MARPOL Annex VI which brings forward the effective date of the EEDI’s “phase

3” requirements from April 1, 2022 to January 1, 2025 for several ship types, including gas carriers, general

cargo ships, and LNG carriers.

Additionally, MEPC 75 introduced draft amendments to Annex VI which impose new regulations to reduce

greenhouse gas emissions from ships. These amendments introduce requirements to assess and

measure the energy efficiency of all ships and set the required attainment values, with the goal of reducing

the carbon intensity of international shipping. The requirements include (1) a technical requirement to

reduce carbon intensity based on a new Energy Efficiency Existing Ship Index (“EEXI”), and (2) operational

carbon intensity reduction requirements, based on a new operational carbon intensity indicator (“CII”). The

attained EEXI is required to be calculated for ships of 400 gross tonnage and above, in accordance with

different values set for ship types and categories. With respect to the CII, the draft amendments would

require ships of 5,000 gross tonnage to document and verify their actual annual operational CII achieved

against a determined required annual operational CII. Additionally, MEPC 75 proposed draft amendments

requiring that, on or before January 1, 2023, all ships above 400 gross tonnage must have an approved

SEEMP on board. For ships above 5,000 gross tonnage, the SEEMP would need to include certain

mandatory content. MEPC 75 also approved draft amendments to MARPOL Annex I to prohibit the use

and carriage for use as fuel of heavy fuel oil (“HFO”) by ships in Arctic waters on and after July 1, 2024. 

The draft amendments introduced at MEPC 75 were adopted at the MEPC 76 session on June 2021 and

entered into force on November 1, 2022, with the requirements for EEXI and CII certification coming into

effect from January 1, 2023. MEPC 77 adopted a non-binding resolution which urges Member States and

ship operators to voluntarily use distillate or other cleaner alternative fuels or methods of propulsion that

are safe for ships and could contribute to the reduction of Black Carbon emissions from ships when

operating in or near the Arctic. MEPC 79 adopted amendments to MARPOL Annex VI, Appendix IX to

include the attained and required CII values, the CII rating and attained EEXI for existing ships in the

required information to be submitted to the IMO Ship Fuel Oil Consumption Database. In July 2023, MEPC

80 announced three new ECA proposals, including the Canadian Arctic waters and the North-East Atlantic

Ocean. The amendments will enter into force on May 1, 2024. In July 2023, MEPC 80 approved the plan

for reviewing CII regulations and guidelines, which must be completed at the latest by January 1, 2026.

There will be no immediate changes to the CII framework, including correction factors and voyage

adjustments, before the review is completed.

We may incur costs to comply with these revised standards. Additional or new conventions, laws and

regulations may be adopted that could require the installation of expensive emission control systems and

could adversely affect our business, results of operations, cash flows and financial condition.

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Safety Management System Requirements

The SOLAS Convention was amended to address the safe manning of vessels and emergency training

drills. The Convention of Limitation of Liability for Maritime Claims (the “LLMC”) sets limitations of liability

for a loss of life or personal injury claim or a property claim against ship owners. The ISM

Certification provides validation that both company and ships are operating using a process-based system

approach to manage risks and achieve continual improvement. The ISM code is meant to be a preventive

tool and asks companies to assess all risks and then take measured to safeguard against them.

Responsibilities and authorities are set out for the various entities includes in the ISM process. All of our

vessels as well as our shore-based operations are fully certified under the ISM Code.

Under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe

Operation of Ships and for Pollution Prevention (the “ISM Code”), our operations are also subject to

environmental standards and requirements. The ISM Code requires the party with operational control of a

vessel to develop an extensive safety management system that includes, among other things, the adoption

of a safety and environmental protection policy setting forth instructions and procedures for operating its

vessels safely and describing procedures for responding to emergencies. Through strong leadership and

a disciplined, clearly documented management system, the Company promotes the concept of HSSE

(Health, Safety, Security and Environmental) excellence at all levels in the organisation. This concept is

achieved by consistent measurement and feedback of the Company’s Management System in order to

generate continuous and sustainable improvement in Health, Safety, Security, and Quality and

Environmental (including Energy Efficiency) (HSSQE) management processes. The failure of a vessel

owner or bareboat charterer to comply with the ISM Code may subject such party to increased liability, may

decrease available insurance coverage for the affected vessels and may result in a denial of access to, or

detention in, certain ports.

The ISM Code requires that vessel operators obtain a safety management certificate for each vessel they

operate. This certificate evidences compliance by a vessel’s management with the ISM Code requirements

for a safety management system. No vessel can obtain a safety management certificate unless its manager

has been awarded a document of compliance, issued by each flag state, under the ISM Code. We have

obtained applicable documents of compliance for our offices and safety management certificates for all of

our vessels for which the certificates are required by the IMO. The documents of compliance and safety

management certificate are renewed as required.

Regulation II-1/3-10 of the SOLAS Convention governs ship construction and stipulates that ships over

150 meters in length must have adequate strength, integrity and stability to minimize risk of loss or pollution.

Goal-based standards amendments in SOLAS regulation II-1/3-10 entered into force in 2012, with July 1,

2016 set for application to new oil tankers and bulk carriers. The SOLAS Convention regulation II-1/3-10

on goal-based ship construction standards for bulk carriers and oil tankers, which entered into force on

January 1, 2012, requires that all oil tankers and bulk carriers of 150 meters in length and above, for which

the building contract is placed on or after July 1, 2016, satisfy applicable structural requirements conforming

to the functional requirements of the International Goal-based Ship Construction Standards for Bulk

Carriers and Oil Tankers (“GBS Standards”).

Amendments to the SOLAS Convention Chapter VII apply to vessels transporting dangerous goods and

require those vessels be in compliance with the International Maritime Dangerous Goods Code (“IMDG

Code”). Effective January 1, 2018, the IMDG Code includes (1) updates to the provisions for radioactive

material, reflecting the latest provisions from the International Atomic Energy Agency, (2) new marking,

packing and classification requirements for dangerous goods, and (3) new mandatory training

requirements. Amendments which took effect on January 1, 2020 also reflect the latest material from the

UN Recommendations on the Transport of Dangerous Goods, including (1) new provisions regarding IMO

type 9 tank, (2) new abbreviations for segregation groups, and (3) special provisions for carriage of lithium

batteries and of vehicles powered by flammable liquid or gas. Additional amendments came into force on

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June 1, 2022, include (1) addition of a definition of dosage rate, (2) additions to the list of high consequence

dangerous goods, (3) new provisions for medical/clinical waste, (4) addition of various ISO standards for

gas cylinders, (5) a new handling code, and (6) changes to stowage and segregation provisions.

The IMO has also adopted the International Convention on Standards of Training, Certification and

Watchkeeping for Seafarers (“STCW”). As of February 2017, all seafarers are required to meet the STCW

standards and be in possession of a valid STCW certificate. Flag states that have ratified SOLAS and

STCW generally employ the classification societies, which have incorporated SOLAS and STCW

requirements into their class rules, to undertake surveys to confirm compliance.

The IMO's Maritime Safety Committee and MEPC, respectively, each adopted relevant parts of the

International Code for Ships Operating in Polar Water (the “Polar Code”). The Polar Code, which entered

into force on January 1, 2017, covers design, construction, equipment, operational, training, search and

rescue as well as environmental protection matters relevant to ships operating in the waters surrounding

the two poles. It also includes mandatory measures regarding safety and pollution prevention as well as

recommendatory provisions. The Polar Code applies to new ships constructed after January 1, 2017, and

after January 1, 2018, ships constructed before January 1, 2017 are required to meet the relevant

requirements by the earlier of their first intermediate or renewal survey.

Furthermore, recent action by the IMO’s Maritime Safety Committee and United States agencies indicates

that cybersecurity regulations for the maritime industry are likely to be further developed in the near future

in an attempt to combat cybersecurity threats. By IMO resolution, administrations are encouraged to ensure

that cyber-risk management systems must be incorporated by ship-owners and managers by their first

annual Document of Compliance audit after January 1, 2021. In February 2021, the U.S. Coast Guard

published guidance on addressing cyber risks in a vessel’s safety management system. This might cause

companies to create additional procedures for monitoring cybersecurity, which could require additional

expenses and/or capital expenditures. The impact of future regulations is hard to predict at this time.

In June 2022, SOLAS also set out new amendments that took effect on January 1, 2024, which include

new requirements for: (1) the design for safe mooring operations, (2) the Global Maritime Distress and

Safety System (“GMDSS”), (3) watertight integrity, (4) watertight doors on cargo ships, (5) fault-isolation of

fire detection systems, (6) life-saving appliances, and (7) safety of ships using LNG as fuel. These new

requirements may impact the cost of our operations.

Pollution Control and Liability Requirements

The IMO has negotiated international conventions that impose liability for pollution in international waters

and the territorial waters of the signatories to such conventions. For example, the IMO adopted an

International Convention for the Control and Management of Ships’ Ballast Water and Sediments, (the

“BWM Convention”), in 2004. The BWM Convention entered into force on September 8, 2017. The BWM

Convention requires ships to manage their ballast water to remove, render harmless, or avoid the uptake

or discharge of new or invasive aquatic organisms and pathogens within ballast water and sediments. The

BWM Convention’s implementing regulations call for a phased introduction of mandatory ballast water

exchange requirements, to be replaced in time with mandatory concentration limits, and require all ships

to carry a ballast water record book and an international ballast water management certificate.

On December 4, 2013, the IMO Assembly passed a resolution revising the application dates of the BWM

Convention so that the dates are triggered by the entry into force date and not the dates originally in the

BWM Convention. This, in effect, makes all vessels delivered before the entry into force date “existing

vessels” and allows for the installation of ballast water management systems on such vessels at the first

International Oil Pollution Prevention (“IOPP”) renewal survey following entry into force of the convention.

The MEPC adopted updated guidelines for approval of ballast water management systems (G8) at MEPC

70. At MEPC 71, the schedule regarding the BWM Convention’s implementation dates was also discussed

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and amendments were introduced to extend the date existing vessels are subject to certain ballast water

standards. Those changes were adopted at MEPC 72. Ships over 400 gross tons generally must comply

with a “D-1 standard,” requiring the exchange of ballast water only in open seas and away from coastal

waters. The “D-2 standard” specifies the maximum amount of viable organisms allowed to be discharged,

and compliance dates vary depending on the IOPP renewal dates. Depending on the date of the IOPP

renewal survey, existing vessels must comply with the D-2 standard on or after September 8, 2019. For

most ships, compliance with the D-2 standard will involve installing on-board systems to treat ballast water

and eliminate unwanted organisms. Ballast water management systems, which include systems that make

use of chemical, biocides, organisms or biological mechanisms, or which alter the chemical or physical

characteristics of the ballast water, must be approved in accordance with IMO Guidelines (Regulation D-

3). As of October 13, 2019, MEPC 72’s amendments to the BWM Convention took effect, making the Code

for Approval of Ballast Water Management Systems, which governs assessment of ballast water

management systems, mandatory rather than permissive, and formalized an implementation schedule for

the D-2 standard. Under these amendments, all ships must meet the D-2 standard by September 8, 2024.

Costs of compliance with these regulations may be substantial. Additionally, in November 2020, MEPC 75

adopted amendments to the BWM Convention which would require a commissioning test of the ballast

water management system for the initial survey or when performing an additional survey for retrofits. This

analysis will not apply to ships that already have an installed BWM system certified under the BWM

Convention. These amendments have entered into force on June 1, 2022. In December 2022, MEPC 79

agreed that it should be permitted to use ballast tanks for temporary storage of treated sewage and grey

water. MEPC 79 also established that ships are expected to return to D-2 compliance after experiencing

challenging uptake water and bypassing a BWM system should only be used as a last resort. In July 2023,

MEPC 80 approved a plan for a comprehensive review of the BWM Convention. over the next three years

and the corresponding development of a package of amendments to the Convention. MEPC 80 also

adopted further amendments relating to Appendix II of the BWM Convention concerning the form of the

Ballast Water Record Book, which are expected to enter into force in February 2025. A protocol for ballast

water compliance monitoring devices and unified interpretation of the form of the BWM Convention

certificate were also adopted.

Once mid-ocean exchange ballast water treatment requirements become mandatory under the BWM

Convention, the cost of compliance could increase for ocean carriers and may have a material effect on

our operations. Irrespective of the BWM convention, certain countries such as the U.S. have enforced and

implemented regional requirement related to the system certification, operation and reporting.

The IMO also adopted the International Convention on Civil Liability for Bunker Oil Pollution Damage (the

“Bunker Convention”) to impose strict liability on ship owners (including the registered owner, bareboat

charterer, manager or operator) for pollution damage in jurisdictional waters of ratifying states caused by

discharges of bunker fuel. The Bunker Convention requires registered owners of ships over 1,000 gross

tons to maintain insurance for pollution damage in an amount equal to the limits of liability under the

applicable national or international limitation regime (but not exceeding the amount calculated in

accordance with the LLMC). With respect to non-ratifying states, liability for spills or releases of oil carried

as fuel in ship’s bunkers typically is determined by the national or other domestic laws in the jurisdiction

where the events or damages occur.

Ships are required to maintain a certificate attesting that they maintain adequate insurance to cover an

incident. In jurisdictions, such as the United States where the Bunker Convention has not been adopted,

various legislative schemes or common law govern, and liability is imposed either on the basis of fault or

on a strict-liability basis.

Anti-Fouling Requirements

In 2001, the IMO adopted the International Convention on the Control of Harmful Anti-fouling Systems on

Ships, or the “Anti-fouling Convention.” The Anti-fouling Convention, which entered into force on

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September 17, 2008, prohibits the use of organotin compound coatings to prevent the attachment of

mollusks and other sea life to the hulls of vessels. Vessels of over 400 gross tons engaged in international

voyages will also be required to undergo an initial survey before the vessel is put into service or before an

International Anti-fouling System Certificate is issued for the first time; and subsequent surveys when the

anti-fouling systems are altered or replaced. Vessels of 24 meters in length or more but less than 400 gross

tonnage engaged in international voyages will have to carry a Declaration on Anti-fouling Systems signed

by the owner or authorized agent.

We have obtained Anti-fouling System Certificates for all of our vessels that are subject to the Anti-fouling

Convention.

Requirements for the Safe and Environmentally Sound Recycling of Ships

In 2009 the Hong Kong International Convention and MEPC 269(68) adopted the guidelines for the

preparation of the Inventory of Hazardous Materials. The Convention concerns all vessels over 500 GT

entitled to fly the flag of a Party or operating under its authority, with some exceptions like warships.

According to the Convention the shipowner should control Ship’s Hazardous Materials inherent in ship’s

structure, machinery, equipment and paints, coatings and prohibit the new installations of Hazardous

Materials, by maintaining an Inventory of Hazardous Materials (IHM). It is the Company’s responsibility to

maintain the IHM Part I up to date, during the life of the ship, according to MEPC Guidelines. The ships

are subject to survey (initial, renewal, additional and final) and certification and should keep a valid

International Certificate on Inventory of Hazardous Materials or an International Ready for Recycling

Certificate (in case of recycling), on board. For ships been resulted to contain hazardous materials (like

asbestos), actions for removal should be taken by the shipowner. The ships should only be recycled

according to the regulations. If the ship is detected to be in violation of this Convention, the Party carrying

out an inspection may take steps to warn, detain, dismiss, or exclude the ship from its ports, which might

have an impact in our commercial image and cause high fines to the company. Our fleet already complies

with this regulation, although not yet into force, but the preparation, maintenance and whenever needed

removal have resulted in substantial costs.

Compliance Enforcement

Noncompliance with the ISM Code or other IMO regulations may subject the ship owner or bareboat

charterer to increased liability, may lead to decreases in available insurance coverage for affected vessels

and may result in the denial of access to, or detention in, some ports. The USCG and European Union

authorities have indicated that vessels not in compliance with the ISM Code by applicable deadlines will

be prohibited from trading in U.S. and European Union ports, respectively. As of the date of this report,

each of our vessels is ISM Code certified. The IMO continues to review and introduce new regulations. It

is impossible to predict what additional regulations, if any, may be passed by the IMO and what effect, if

any, such regulations might have on our operations.

U.S. Regulations

The U.S. Oil Pollution Act of 1990 and the Comprehensive Environmental Response, Compensation and

Liability Act

The U.S. Oil Pollution Act of 1990 (“OPA”) established an extensive regulatory and liability regime for the

protection and cleanup of the environment from oil spills. OPA affects all “owners and operators” whose

vessels trade or operate within the U.S., its territories and possessions or whose vessels operate in U.S.

waters, which includes the U.S.’s territorial sea and its 200 nautical mile exclusive economic zone around

the U.S. The U.S. has also enacted the Comprehensive Environmental Response, Compensation and

Liability Act (“CERCLA”), which applies to the discharge of hazardous substances other than oil, except in

limited circumstances, whether on land or at sea. OPA and CERCLA both define “owner and operator” in

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the case of a vessel as any person owning, operating or chartering by demise, the vessel. Both OPA and

CERCLA impact our operations.

Under OPA, vessel owners and operators are “responsible parties” and are jointly, severally and strictly

liable (unless the spill results solely from the act or omission of a third party, an act of God or an act of war)

for all containment and clean-up costs and other damages arising from discharges or threatened

discharges of oil from their vessels, including bunkers (fuel). OPA defines these other damages broadly

to include:

(i)

 injury to, destruction or loss of, or loss of use of, natural resources and related assessment costs;

(ii)

 injury to, or economic losses resulting from, the destruction of real and personal property;

(iii)

 loss of subsistence use of natural resources that are injured, destroyed or lost;

(iv)

 net loss of taxes, royalties, rents, fees or net profit revenues resulting from injury, destruction or

loss of real or personal property, or natural resources;

(v)

 lost profits or impairment of earning capacity due to injury, destruction or loss of real or personal

property or natural resources; and

(vi)

 net cost of increased or additional public services necessitated by removal activities following a

discharge of oil, such as protection from fire, safety or health hazards, and loss of subsistence use

of natural resources.

OPA contains statutory caps on liability and damages; such caps do not apply to direct cleanup

costs. Effective November 12, 2019, the USCG adjusted the limits of OPA liability for non-tank vessels,

edible oil tank vessels, and any oil spill response vessels, to the greater of $1,200 per gross ton or $997,100

(subject to periodic adjustment for inflation). On December 23, 2022, the USCG issued a final rule to adjust

the limitation of liability under the OPA. Effective March 23, 2022, the new adjusted limits of OPA liability

for non-tank vessels, edible oil tank vessels, and any oil spill response vessels, to the greater of $1,300

per gross ton or $1,076,000 (subject to periodic adjustment for inflation).These limits of liability do not apply

if an incident was proximately caused by the violation of an applicable U.S. federal safety, construction or

operating regulation by a responsible party (or its agent, employee or a person acting pursuant to a

contractual relationship), or a responsible party's gross negligence or willful misconduct. The limitation on

liability similarly does not apply if the responsible party fails or refuses to (i) report the incident as required

by law where the responsible party knows or has reason to know of the incident; (ii) reasonably cooperate

and assist as requested in connection with oil removal activities; or (iii) without sufficient cause, comply

with an order issued under the Federal Water Pollution Act (Section 311 (c), (e)) or the Intervention on the

High Seas Act.

CERCLA contains a similar liability regime whereby owners and operators of vessels are liable for cleanup,

removal and remedial costs, as well as damages for injury to, or destruction or loss of, natural resources,

including the reasonable costs associated with assessing the same, and health assessments or health

effects studies. There is no liability if the discharge of a hazardous substance results solely from the act or

omission of a third party, an act of God or an act of war. Liability under CERCLA is limited to the greater of

$300 per gross ton or $5.0 million for vessels carrying a hazardous substance as cargo and the greater of

$300 per gross ton or $500,000 for any other vessel. These limits do not apply (rendering the responsible

person liable for the total cost of response and damages) if the release or threat of release of a hazardous

substance resulted from willful misconduct or negligence, or the primary cause of the release was a

violation of applicable safety, construction or operating standards or regulations. The limitation on liability

also does not apply if the responsible person fails or refused to provide all reasonable cooperation and

assistance as requested in connection with response activities where the vessel is subject to OPA.

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OPA and CERCLA each preserve the right to recover damages under existing law, including maritime tort

law. OPA and CERCLA both require owners and operators of vessels to establish and maintain with the

USCG evidence of financial responsibility sufficient to meet the maximum amount of liability to which the

particular responsible person may be subject. Vessel owners and operators may satisfy their financial

responsibility obligations by providing a proof of insurance, a surety bond, qualification as a self-insurer or

a guarantee. We comply and plan to comply going forward with the USCG’s financial responsibility

regulations by providing applicable certificates of financial responsibility.

The 2010

Deepwater Horizon

 oil spill in the Gulf of Mexico resulted in additional regulatory initiatives or

statutes, including higher liability caps under OPA, new regulations regarding offshore oil and gas drilling,

and a pilot inspection program for offshore facilities. However, several of these initiatives and

regulations have been or may be revised. For example, the U.S. Bureau of Safety and

Environmental Enforcement’s (“BSEE”) revised Production Safety Systems Rule (“PSSR”), effective

December 27, 2018, modified and relaxed certain environmental and safety protections under the 2016

PSSR. Additionally, the BSEE amended the Well Control Rule, effective July 15, 2019, which rolled back

certain reforms regarding the safety of drilling operations, and the former U.S. President Trump had 

proposed leasing new sections of U.S. waters to oil and gas companies for offshore drilling. In January

2021, U.S. President Biden signed an executive order temporarily blocking new leases for oil and gas

drilling in federal waters. However, attorney generals from 13 states filed suit in March 2021 to lift the

executive order, and in June 2021, a federal judge in Louisiana granted a preliminary injunction against

the Biden administration, stating that the power to pause offshore oil and gas leases “lies solely with

Congress.” In August 2022, a federal judge in Louisiana sided with Texas Attorney General Ken Paxton,

along with the other 12 plaintiff states, by issuing a permanent injunction against the Biden Administration’s

moratorium on oil and gas leasing on federal public lands and offshore waters. After being blocked by the

courts, in September 2023, the Biden administration announced a scaled back offshore oil drilling plan,

including just three oil lease sales in the Gulf of Mexico. With these rapid changes, compliance with any

new requirements of OPA and future legislation or regulations applicable to the operation of our

vessels could impact the cost of our operations and adversely affect our business.

OPA specifically permits individual states to impose their own liability regimes with regard to oil pollution

incidents occurring within their boundaries, provided they accept, at a minimum, the levels of liability

established under OPA and some states have enacted legislation providing for unlimited liability for oil

spills. Many U.S. states that border a navigable waterway have enacted environmental pollution laws that

impose strict liability on a person for removal costs and damages resulting from a discharge of oil or a

release of a hazardous substance. These laws may be more stringent than U.S. federal law. Moreover,

some states have enacted legislation providing for unlimited liability for discharge of pollutants within their

waters, although in some cases, states which have enacted this type of legislation have not yet issued

implementing regulations defining vessel owners’ responsibilities under these laws. The Company intends

to comply with all applicable state regulations in the ports where the Company’s vessels call.

We currently maintain pollution liability coverage insurance in the amount of $1 billion per incident for each

of our vessels. If the damages from a catastrophic spill were to exceed our insurance coverage, it could

have an adverse effect on our business and results of operation.

Other United States Environmental Initiatives

The U.S. Clean Air Act of 1970 (including its amendments of 1977 and 1990) (“CAA”) requires the EPA to

promulgate standards applicable to emissions of volatile organic compounds and other air

contaminants. The CAA requires states to adopt State Implementation Plans, or SIPs, some of which

regulate emissions resulting from vessel loading and unloading operations which may affect our vessels.

The U.S. Clean Water Act (“CWA”) prohibits the discharge of oil, hazardous substances and ballast water

in U.S. navigable waters unless authorized by a duly-issued permit or exemption, and imposes strict liability

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in the form of penalties for any unauthorized discharges. The CWA also imposes substantial liability for

the costs of removal, remediation and damages and complements the remedies available under OPA and

CERCLA. In 2015, the EPA expanded the definition of “waters of the United States” (“WOTUS”), thereby

expanding federal authority under the CWA. Following litigation on the revised WOTUS rule, in December

2018, the EPA and Department of the Army proposed a revised, limited definition of WOTUS. In 2019 and

2020, the agencies repealed the prior WOTUS Rule and promulgated the Navigable Waters Protection

Rule (“NWPR”) which significantly reduced the scope and oversight of EPA and the Department of the

Army in traditionally non navigable waterways. On August 30, 2021, a federal district court in Arizona

vacated the NWPR and directed the agencies to replace the rule. On December 7, 2021, the EPA and the

Department of the Army proposed a rule that would reinstate the pre-2015 definition. . In January 2023,

the revised WOTUS rule was codified in place of the vacated NWPR. On May 25, 2023, the United States

Supreme Court ruled in the case Sackett v. EPA that only wetlands and permanent bodies of water with a

"continuous surface connection" to "traditional interstate navigable waters" are covered by the CWA, further

narrowing the application of the WOTUS rule. On August 2023, the EPA and the Department of the Army

issued the final WOTUS rule, effective September 8, 2023, that largely reinstated the pre-2015 definition

and applied the

Sackett

ruling. 

The EPA and the USCG have also enacted rules relating to ballast water discharge, compliance with which

requires the installation of equipment on our vessels to treat ballast water before it is discharged or the

implementation of other port facility disposal arrangements or procedures at potentially substantial costs,

and/or otherwise restrict our vessels from entering U.S. Waters. The EPA will regulate these ballast water

discharges and other discharges incidental to the normal operation of certain vessels within United States

waters pursuant to the Vessel Incidental Discharge Act (“VIDA”), which was signed into law on December

4, 2018 and replaces the 2013 Vessel General Permit (“VGP”) program (which authorizes discharges

incidental to operations of commercial vessels and contains numeric ballast water discharge limits for most

vessels to reduce the risk of invasive species in U.S. waters, stringent requirements for exhaust gas

scrubbers, and requirements for the use of environmentally acceptable lubricants) and current Coast Guard

ballast water management regulations adopted under the U.S. National Invasive Species Act (“NISA”),

such as mid-ocean ballast exchange programs and installation of approved USCG technology for all

vessels equipped with ballast water tanks bound for U.S. ports or entering U.S. waters. VIDA establishes

a new framework for the regulation of vessel incidental discharges under Clean Water Act (CWA), requires

the EPA to develop performance standards for those discharges within two years of enactment, and

requires the U.S. Coast Guard to develop implementation, compliance, and enforcement regulations within

two years of EPA’s promulgation of standards. Under VIDA, all provisions of the 2013 VGP and USCG

regulations regarding ballast water treatment remain in force and effect until the EPA and U.S. Coast Guard

regulations are finalized. Non-military, non-recreational vessels greater than 79 feet in length must

continue to comply with the requirements of the VGP, including submission of a Notice of Intent (“NOI”) or

retention of a PARI form and submission of annual reports. We have submitted NOIs for our vessels where

required. Compliance with the EPA, U.S. Coast Guard and state regulations could require the installation

of ballast water treatment equipment on our vessels or the implementation of other port facility disposal

procedures at potentially substantial cost or may otherwise restrict our vessels from entering U.S. waters.

European Union Regulations

In October 2009, the European Union amended a directive to impose criminal sanctions for illicit ship-

source discharges of polluting substances, including minor discharges, if committed with intent, recklessly

or with serious negligence and the discharges individually or in the aggregate result in deterioration of the

quality of water. Aiding and abetting the discharge of a polluting substance may also lead to criminal

penalties. The directive applies to all types of vessels, irrespective of their flag, but certain exceptions apply

to warships or where human safety or that of the ship is in danger. Criminal liability for pollution may result

in substantial penalties or fines and increased civil liability claims. Regulation (EU) 2015/757 of the

European Parliament and of the Council of 29 April 2015 (amending EU Directive 2009/16/EC) governs

the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and, subject

64

to some exclusions, requires companies with ships over 5,000 gross tonnage to monitor and report carbon

dioxide emissions annually, which may cause us to incur additional expenses.

The European Union has adopted several regulations and directives requiring, among other things, more

frequent inspections of high-risk ships, as determined by type, age, and flag as well as the number of times

the ship has been detained. The European Union also adopted and extended a ban on substandard ships

and enacted a minimum ban period and a definitive ban for repeated offenses. The regulation also provided

the European Union with greater authority and control over classification societies, by imposing more

requirements on classification societies and providing for fines or penalty payments for organizations that

failed to comply. Furthermore, the EU has implemented regulations requiring vessels to use reduced sulfur

content fuel for their main and auxiliary engines. The EU Directive 2005/33/EC (amending Directive

1999/32/EC) introduced requirements parallel to those in Annex VI relating to the sulfur content of marine

fuels. In addition, the EU imposed a 0.1% maximum sulfur requirement for fuel used by ships at berth in

the Baltic, the North Sea and the English Channel (the so called “SOx-Emission Control Area”). As of

January 2020, EU member states must also ensure that ships in all EU waters, except the SOx-Emission

Control Area, use fuels with a 0.5% maximum sulfur content.

On September 15, 2020, the European Parliament voted to include greenhouse gas emissions from the

maritime sector in the European Union’s carbon market, the EU Emissions Trading System (“EU ETS”) as

part of its “Fit-for-55” legislation to reduce net greenhouse gas emissions by at least 55% by 2030. On July

14, 2021, the European Parliament formally proposed its plan, which would involve gradually including the

maritime sector from 2023 and phasing the sector in over three-year period. This will require shipowners

to buy permits to cover these emissions. The Environment Council adopted a general approach on the

proposal in June 2022. On December 18, 2022, the Environmental Council and European Parliament

agreed to include maritime shipping emissions within the scope of the EU ETS on a gradual introduction

of obligations for shipping companies to surrender allowances equivalent to a portion of their carbon

emissions: 40% for verified emissions from 2024, 70% for 2025 and 100% for 2026. Most large vessels will

be included in the scope of the EU ETS from the start. Big offshore vessels of 5,000 gross tonnage and

above will be included in the 'MRV' on the monitoring, reporting and verification of CO2 emissions from

maritime transport regulation from 2025 and in the EU ETS from 2027. General cargo vessels and off-

shore vessels between 400-5,000 gross tonnage will be included in the MRV regulation from 2025 and

their inclusion in EU ETS will be reviewed in 2026. Furthermore, starting from January 1, 2026, the ETS

regulations will expand to include emissions of two additional greenhouse gases: nitrous oxide and

methane. Compliance with the Maritime EU ETS will result in additional compliance and administration

costs to properly incorporate the provisions of the Directive into our business routines. Additional EU

regulations which are part of the EU’s "Fit-for-55," could also affect our financial position in terms of

compliance and administration costs when they take effect.

EU Ship Recycling Regulation

The Regulation is mostly aligned with the Hong Kong Convention on Ship Recycling, mentioned earlier

and aims quick ratification of the Convention. However, it sets some additional requirements and has been

into force since 2015 for new ships and 2020 for existing ships. It concerns vessels over 500 GT flying the

flag of a member state or vessels flying the flag of a 3

rd

 party calling at port or anchorage of member states.

Our fleet fully complies with this regulation. Our fleet’s Inventories of Hazardous Materials preparation,

certification and continuous maintenance have resulted in a significant cost to the Company.

International Labour Organization

The International Labour Organization (the “ILO”) is a specialized agency of the UN that has adopted the

Maritime Labor Convention 2006 (“MLC 2006”). A Maritime Labor Certificate and a Declaration of Maritime

Labor Compliance is required to ensure compliance with the MLC 2006 for all ships that are 500 gross

tonnage or over and are either engaged in international voyages or flying the flag of a Member and

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operating from a port, or between ports, in another country. All of our vessels are certified under the

Maritime Labor Convention 2006 (“MLC 2006”)

Greenhouse Gas Regulation

Currently, the emissions of greenhouse gases from international shipping are not subject to the Kyoto

Protocol to the United Nations Framework Convention on Climate Change, which entered into force in 2005

and pursuant to which adopting countries have been required to implement national programs to reduce

greenhouse gas emissions with targets extended through 2020. International negotiations are continuing

with respect to a successor to the Kyoto Protocol, and restrictions on shipping emissions may be included

in any new treaty. In December 2009, more than 27 nations, including the U.S. and China, signed the

Copenhagen Accord, which includes a non-binding commitment to reduce greenhouse gas emissions. The

2015 United Nations Climate Change Conference in Paris resulted in the Paris Agreement, which entered

into force on November 4, 2016 and does not directly limit greenhouse gas emissions from ships. The U.S.

initially entered into the agreement, but on June 1, 2017, the former U.S. President Trump announced

that the United States intends to withdraw from the Paris Agreement, and the withdrawal became effective

on November 4, 2020. On January 20, 2021, U.S. President Biden signed an executive order to rejoin the

Paris Agreement, which the U.S. officially rejoined on February 19, 2021.

At MEPC 70 and MEPC 71, a draft outline of the structure of the initial strategy for developing a

comprehensive IMO strategy on reduction of greenhouse gas emissions from ships was approved. In

accordance with this roadmap, in April 2018, nations at the MEPC 72 adopted an initial strategy to reduce

greenhouse gas emissions from ships. The initial strategy identifies “levels of ambition” to reducing

greenhouse gas emissions, including (1) decreasing the carbon intensity from ships through

implementation of further phases of the EEDI for new ships; (2) reducing carbon dioxide emissions per

transport work, as an average across international shipping, by at least 40% by 2030, pursuing efforts

towards 70% by 2050, compared to 2008 emission levels; and (3) reducing the total annual greenhouse

emissions by at least 50% by 2050 compared to 2008 while pursuing efforts towards phasing them out

entirely. The initial strategy notes that technological innovation, alternative fuels and/or energy sources for

international shipping will be integral to achieve the overall ambition. These regulations could cause us to

incur additional substantial expenses. At MEPC 77, the Member States agreed to initiate the revision of

the Initial IMO Strategy on Reduction of GHG emissions from ships, recognizing the need to strengthen

the ambition during the revision process. In July 2023, MEPC 80 adopted a revised strategy, which includes

an enhanced common ambition to reach net-zero greenhouse gas emissions from international shipping

around or close to 2050, a commitment to ensure an uptake of alternative zero and near-zero greenhouse

gas fuels by 2030, as well as i). reducing the total annual greenhouse gas emissions from international

shipping by at least 20%, striving for 30%, by 2030, compared to 2008; and ii). reducing the total annual

greenhouse gas emissions from international shipping by at least 70%, striving for 80%, by 2040, compared

to 2008.

The EU made a unilateral commitment to reduce overall greenhouse gas emissions from its member states

from 20% of 1990 levels by 2020. The EU also committed to reduce its emissions by 20% under the Kyoto

Protocol’s second period from 2013 to 2020. Starting in January 2018, large ships over 5,000 gross

tonnage calling at EU ports are required to collect and publish data on carbon dioxide emissions and other

information. Under the European Climate Law, the EU committed to reduce its net greenhouse gas

emissions by at least 55% by 2030 through its “Fit-for-55” legislation package. As part of this initiative,

regulations relating to the inclusion of greenhouse gas emissions from the maritime sector in the European

Union’s carbon market are also forthcoming.

Any passage of climate control legislation or other regulatory initiatives by the IMO, the EU, the U.S. or

other countries where we operate, or any treaty adopted at the international level to succeed the Kyoto

Protocol or Paris Agreement, that restricts emissions of greenhouse gases could require us to make

significant financial expenditures which we cannot predict with certainty at this time. Even in the absence

66

of climate control legislation, our business may be indirectly affected to the extent that climate change may

result in sea level changes or certain weather events.

Vessel Security Regulations

Since the terrorist attacks of September 11, 2001 in the United States, there have been a variety of

initiatives intended to enhance vessel security such as the U.S. Maritime Transportation Security Act of

2002 (“MTSA”). To implement certain portions of the MTSA, the USCG issued regulations requiring the

implementation of certain security requirements aboard vessels operating in waters subject to the

jurisdiction of the United States and at certain ports and facilities, some of which are regulated by the EPA.

Similarly, Chapter XI-2 of the SOLAS Convention imposes detailed security obligations on vessels and port

authorities and mandates compliance with the International Ship and Port Facility Security Code (“the ISPS

Code”). The ISPS Code is designed to enhance the security of ports and ships against terrorism. To trade

internationally, a vessel must attain an International Ship Security Certificate (“ISSC”) from a recognized

security organization approved by the vessel’s flag state. Ships operating without a valid certificate may be

detained, expelled from, or refused entry at port until they obtain an ISSC. The various requirements, some

of which are found in the SOLAS Convention, include, for example, on-board installation of automatic

identification systems to provide a means for the automatic transmission of safety-related information from

among similarly equipped ships and shore stations, including information on a ship’s identity, position,

course, speed and navigational status; on-board installation of ship security alert systems, which do not

sound on the vessel but only alert the authorities on shore; the development of vessel security plans; ship

identification number to be permanently marked on a vessel’s hull; a continuous synopsis record kept

onboard showing a vessel's history including the name of the ship, the state whose flag the ship is entitled

to fly, the date on which the ship was registered with that state, the ship's identification number, the port at

which the ship is registered and the name of the registered owner(s) and their registered address;

and compliance with flag state security certification requirements.

The USCG regulations, intended to align with international maritime security standards, exempt non-U.S.

vessels from MTSA vessel security measures, provided such vessels have on board a valid ISSC that

attests to the vessel’s compliance with the SOLAS Convention security requirements and the ISPS Code.

Future security measures could have a significant financial impact on us. We intend to comply with the

various security measures addressed by MTSA, the SOLAS Convention and the ISPS Code. The cost of

vessel security measures has also been affected by the escalation in the frequency of acts of piracy against

ships, notably off the coast of Somalia, including the Gulf of Aden and Arabian Sea area. Substantial loss

of revenue and other costs may be incurred as a result of detention of a vessel or additional security

measures, and the risk of uninsured losses could significantly affect our business. Costs are incurred in

taking additional security measures in accordance with Best Management Practices to Deter Piracy,

notably those contained in the BMP5 industry standard.

Inspection by Flag administration and Classification Societies

The flag represents the nationality of the ship, showing that it’s under the control of the registered country

and must comply with international and maritime law of it. The flag is required to take measures to ensure

safety at sea and should verify that ships under its authority, conform relevant international standards, in

regard to construction, design, equipment and manning of ships, through on board physical inspections.

The hull and machinery of every commercial vessel must be classed by a classification society authorized

by its country of registry. The classification society certifies that a vessel is safe and seaworthy in

accordance with the applicable rules and regulations of the country of registry of the vessel and SOLAS.

Most insurance underwriters make it a condition for insurance coverage and lending that a vessel be

certified “in class” by a classification society which is a member of the International Association of

Classification Societies, the IACS. The IACS has adopted harmonized Common Structural Rules, or “the

67

Rules”, which apply to oil tankers and bulk carriers contracted for construction on or after July 1, 2015. The

Rules attempt to create a level of consistency between IACS Societies. All of our vessels are certified as

being “in class” by all the applicable Classification Societies (e.g., American Bureau of Shipping, Lloyd's

Register of Shipping).

A vessel must undergo annual surveys, intermediate surveys, drydockings and special surveys. In lieu of

a special survey, a vessel’s machinery may be on a continuous survey cycle, under which the machinery

would be surveyed periodically over a five-year period. Every vessel should have a minimum of two

examinations of the outside of a vessel's bottom and related items during each five-year special survey

period. One such examination is to be carried out in conjunction with the Special Periodical Survey. In all

cases, the interval between any two such examinations is not to exceed 36 months. In all cases, the interval

between any two such examinations is not to exceed 36 months. If any vessel does not maintain its class

and/or fails any annual survey, intermediate survey, drydocking or special survey, the vessel will be unable

to carry cargo between ports and will be unemployable and uninsurable which could cause us to be in

violation of certain covenants in our loan agreements. Any such inability to carry cargo or be employed, or

any such violation of covenants, could have a material adverse impact on our financial condition and results

of operations.

Risk of Loss and Liability Insurance

General

The operation of any cargo vessel includes risks such as mechanical failure, physical damage, collision,

property loss, cargo loss or damage and business interruption due to political circumstances in foreign

countries, piracy incidents, hostilities and labor strikes. In addition, there is always an inherent possibility

of marine disaster, including oil spills and other environmental mishaps, and the liabilities arising from

owning and operating vessels in international trade. OPA, which imposes virtually unlimited liability

upon shipowners, operators and bareboat charterers of any vessel trading in the exclusive economic

zone of the United States for certain oil pollution accidents in the United States, has made liability insurance

more expensive for shipowners and operators trading in the United States market. We carry insurance

coverage as customary in the shipping industry. However, not all risks can be insured, specific claims may

be rejected, and we might not be always able to obtain adequate insurance coverage at reasonable rates.

While we maintain hull and machinery insurance, war risks insurance, protection and indemnity cover and

freight, demurrage and defense cover for our operating fleet in amounts that we believe to be prudent to

cover normal risks in our operations, we may not be able to achieve or maintain this level of coverage

throughout a vessel's useful life. Furthermore, while we believe that our present insurance coverage is

adequate, not all risks can be insured, and there can be no guarantee that any specific claim will be paid,

or that we will always be able to obtain adequate insurance coverage at reasonable rates.

Hull & Machinery and War Risks Insurance

We maintain marine hull and machinery and war risks insurance, which cover, among other marine risks,

the risk of actual or constructive total loss, for all of our vessels. Our vessels are each covered up to at

least fair market value with deductibles ranging to a maximum of $100,000 per vessel per incident for

Panamax, Kamsarmax and Post-Panamax vessels and $150,000 per vessel per incident for Capesize and

Newcastlemax vessels.

Protection and Indemnity Insurance

Protection and indemnity insurance is provided by mutual protection and indemnity associations, or “P&I

Associations,” and covers our third-party liabilities in connection with our shipping activities. This includes

third-party liability and other related expenses of injury or death of crew, passengers and other third parties,

68

loss or damage to cargo, claims arising from collisions with other vessels, damage to other third-party

property, pollution arising from oil or other substances, and salvage, towing and other related costs,

including wreck removal. Protection and indemnity insurance is a form of mutual indemnity insurance,

extended by protection and indemnity mutual associations, or “clubs.”

Our current protection and indemnity insurance coverage for pollution is $1 billion per vessel per incident.

The 13 P&I Associations that comprise the International Group insure approximately 90% of the world’s

commercial tonnage and have entered into a pooling agreement to reinsure each association’s

liabilities. The International Group’s website states that the Pool provides a mechanism for sharing all

claims in excess of US$10 million up to, currently, approximately US$8.2 billion. As a member of a P&I

Association, which is a member of the International Group, we are subject to calls payable to the

associations based on our claim records as well as the claim records of all other members of the individual

associations and members of the shipping pool of P&I Associations comprising the International

Group. Our vessels may be subject to supplemental calls which are based on estimates of premium

income and anticipated and paid claims. Such estimates are adjusted each year by the Board of Directors

of the P&I Association until the closing of the relevant policy year, which generally occurs within three years

from the end of the policy year. Supplemental calls, if any, are expensed when they are announced and

according to the period they relate to. 

C. Organizational structure

Diana Shipping Inc. is the sole owner of all of the issued and outstanding shares of the subsidiaries listed

in Exhibit 8.1 to this annual report.

D. Property, plants and equipment

Since October 8, 2010, DSS owns the land and the building where we have our principal corporate offices

in Athens, Greece. In addition, in December 2014, DSS acquired a plot of land jointly with two other related

entities from unrelated individuals and in November 2021 acquired an additional part of this land owned by

one of our related parties. On July 6, 2023, the Company purchased the remaining 1/3 from Alpha Sigma

Shipping Corp, a related party company, for the purchase price of $1.2 million and became its sole owner.

In 2024, we purchased two additional plots of land from unrelated third parties for an aggregate amount of

approximately $1.9 million. All plots of land are in the same area as our principal offices. Other than this

interest in real property, our only material properties are the vessels in our fleet, owned and bareboat

chartered-in. 

Item 4A. Unresolved Staff Comments

None.

Item 5. Operating and Financial Review and Prospects

The following management's discussion and analysis should be read in conjunction with our historical

consolidated financial statements and their notes included elsewhere in this annual report. This discussion

contains forward-looking statements that reflect our current views with respect to future events and financial

performance. Our actual results may differ materially from those anticipated in these forward-looking

statements as a result of certain factors, such as those set forth in the section entitled “Risk Factors” and

elsewhere in this annual report.

A.

Operating results

69

Factors Affecting Our Results of Operations

We believe that our results of operations are affected by the following factors:

(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant

period, as measured by the sum of the number of days each vessel was a part of our fleet during

the period divided by the number of calendar days in the period. 

(2) Ownership days are the aggregate number of days in a period during which each vessel in our

fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a

period and affect both the amount of revenues and the amount of expenses that we record

during a period. 

(3) Available days are the number of our ownership days less the aggregate number of days that

our vessels are off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades

or special surveys and the aggregate amount of time that we spend positioning our vessels for

such events. The shipping industry uses available days to measure the number of days in a

period during which vessels should be capable of generating revenues. 

(4) Operating days are the number of available days in a period less the aggregate number of days

that our vessels are off-hire due to any reason, including unforeseen circumstances. The

shipping industry uses operating days to measure the aggregate number of days in a period

during which vessels actually generate revenues. 

(5) We calculate fleet utilization by dividing the number of our operating days during a period by

the number of our available days during the period. The shipping industry uses fleet utilization

to measure a company's efficiency in finding suitable employment for its vessels and minimizing

the amount of days that its vessels are off-hire for reasons other than scheduled repairs or

repairs under guarantee, vessel upgrades, special surveys or vessel positioning for such

events. 

(6) Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less

voyage expenses during a period divided by the number of our available days during the period,

which is consistent with industry standards. Voyage expenses include port charges, bunker

(fuel) expenses, canal charges and commissions. TCE rate is a non-GAAP measure, and

management believes it is useful to investors because it is a standard shipping industry

performance measure used primarily to compare daily earnings generated by vessels on time

charters with daily earnings generated by vessels on voyage charters, because charter hire

rates for vessels on voyage charters are generally not expressed in per day amounts while

charter hire rates for vessels on time charters are generally expressed in such amounts.

(7) Daily vessel operating expenses, which include crew wages and related costs, the cost of

insurance, expenses relating to repairs and maintenance, the costs of spares and consumable

stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel

operating expenses by ownership days for the relevant period.

The following table reflects such factors for the periods indicated:

70

As of and for the

Year Ended December 31,

2023

2022

2021

Fleet Data:

Average number of vessels (1)

41.1

35.4

36.6

Number of vessels at year-end

40.0

42.0

33.0

Weighted average age of vessels at year-end (in years) 

10.5

10.2

10.4

Ownership days (2) 

14,986

12,924

13,359

Available days (3) 

14,867

12,449

13,239

Operating days (4) 

14,824

12,306

13,116

Fleet utilization (5) 

99.7%

98.9%

99.1%

Average Daily Results:

Time charter equivalent (TCE) rate (6) 

$

16,713

$

22,735

$

15,759

Daily vessel operating expenses (7) 

5,704

5,574

5,596

The following table reflects the calculation of our TCE rates for the periods presented:

Year Ended December 31,

2023

2022

2021

(in thousands of U.S. dollars, except for TCE rates, which

are expressed in U.S. dollars, and available days)

Time charter revenues 

$

262,098

$

289,972

$

214,203

Less: voyage expenses 

(13,621)

(6,942)

(5,570)

Time charter equivalent revenues 

$

248,477

$

283,030

$

208,633

Available days 

14,867

12,449

13,239

Time charter equivalent (TCE) rate 

$

16,713

$

22,735

$

15,759

Time Charter Revenues

Our revenues are driven primarily by the number of vessels in our fleet, the number of days during which

our vessels operate and the amount of daily charter hire rates that our vessels earn under charters, which,

in turn, are affected by a number of factors, including:

●

the duration of our charters;

●

our decisions relating to vessel acquisitions and disposals;

●

the amount of time that we spend positioning our vessels;

●

the amount of time that our vessels spend in drydock undergoing repairs;

●

maintenance and upgrade work;

●

the age, condition and specifications of our vessels;

●

levels of supply and demand in the dry bulk shipping industry.

Vessels operating on time charters for a certain period of time provide more predictable cash flows over

that period of time but can yield lower profit margins than vessels operating in the spot charter market

71

during periods characterized by favorable market conditions. Vessels operating in the spot charter market

generate revenues that are less predictable but may enable their owners to capture increased profit

margins during periods of improvements in charter rates although their owners would be exposed to the

risk of declining charter rates, which may have a materially adverse impact on financial performance. As

we employ vessels on period charters, future spot charter rates may be higher or lower than the rates at

which we have employed our vessels on period charters. Our time charter agreements subject us to

counterparty risk. In depressed market conditions, charterers may seek to renegotiate the terms of their

existing charter parties or avoid their obligations under those contracts. Should a counterparty fail to honor

their obligations under agreements with us, we could sustain significant losses which could have a material

adverse effect on our business, financial condition, results of operations and cash flows. Revenues derived

from time charter agreements in 2023 decreased compared to previous years, due to the significant

decrease in charter rates, despite the increase in the size of our fleet, evident in the increase of the average

number of vessels. In 2024, the average number of vessels will decrease, as currently our fleet consists of

41 vessels of which 39 vessels in operation, owned and chartered-in, and two under construction, and we

have agreed to sell one of our vessels. As a result, although we have observed that the time charter rates

have increased since the beginning of 2024, we expect our revenues in 2024 to decrease compared to

2023. 

Voyage Expenses

We incur voyage expenses that mainly include commissions because all of our vessels are employed under

time charters that require the charterer to bear voyage expenses such as bunkers (fuel oil), port and canal

charges. Although the charterer bears the cost of bunkers, we also have bunker gain or loss deriving from

the price differences of bunkers. When a vessel is delivered to a charterer, bunkers are purchased by the

charterer and sold back to us on the redelivery of the vessel. Bunker gain, or loss, results when a vessel

is redelivered by her charterer and delivered to the next charterer at different bunker prices, or quantities.

We currently pay commissions ranging from 4.75% to 5.00% of the total daily charter hire rate of each

charter to unaffiliated ship brokers, in-house brokers associated with the charterers, depending on the

number of brokers involved with arranging the charter. In addition, we pay a commission to DWM and to

DSS for those vessels for which they provide commercial management services. The commissions paid to

DSS are eliminated from our consolidated financial statements as intercompany transactions. For 2024,

we expect our voyage expenses to decrease compared to 2023, due to the expected decrease in revenues.

The effect of bunker prices cannot be determined, as a gain or loss from bunkers results mainly from the

difference in the value of bunkers paid by the Company when the vessel is redelivered to the Company

from the charterer under the vessel’s previous time charter agreement and the value of bunkers sold by

the Company when the vessel is delivered to a new charterer.

Vessel Operating Expenses

Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating

to repairs and maintenance, the cost of spares and consumable stores, tonnage taxes, environmental plan

costs and HSQ and vetting. Our vessel operating expenses generally represent fixed costs. Vessel

operating expenses have increased since 2021 due to the increase in ownership days. For 2024, we expect

our operating expenses to decrease compared to 2023, as a result of the average decrease of the size of

the fleet compared to 2023.

Vessel Depreciation 

The cost of our vessels is depreciated on a straight-line basis over the estimated useful life of each vessel.

Depreciation is based on the cost of the vessel less its estimated salvage value. We estimate the useful

life of our dry bulk vessels to be 25 years from the date of initial delivery from the shipyard, which we believe

is common in the dry bulk shipping industry. Furthermore, we estimate the salvage values of our vessels

72

based on historical average prices of the cost of the light-weight ton of vessels being scrapped. Effective

July 1, 2023, the Company changed its estimated scrap rate of its vessels from $250 per lightweight ton to

$400 per lightweight ton, calculated based on the average demolition prices in different markets, during the

last 15 years. During 2022, we took delivery of ten vessels and sold one and in 2023, we took delivery of

one vessel and sold three. Following these transactions vessel depreciation has increased since 2021. For

2024, we expect depreciation expense to decrease due to the increase of the scrap rate in 2023 and the

decrease in the number of vessels in our fleet as in 2024 we have sold one vessel and we have agreed to

sell another one.

General and Administrative Expenses

We incur general and administrative expenses which include our onshore related expenses such as payroll

expenses of employees, executive officers, directors and consultants, compensation cost of restricted

stock awarded to senior management and non-executive directors, traveling, promotional and other

expenses of the public company, such as legal and professional expenses and other general expenses.

During the last three years, our general and administrative expenses are increasing, especially in 2023,

mainly due to payroll costs and donations. For 2024, we expect our general and administrative expenses

to increase, due to anticipated increases in payroll and other office expenses. General and administrative

expenses are not affected by the size of the fleet. However, they are affected by the exchange rate of Euro

to US Dollars, as about half of our administrative expenses are in Euro. 

Interest and Finance Costs

We incur interest expense and financing costs in connection with vessel-specific debt, senior unsecured

bond and finance liabilities. As of December 31, 2023 our aggregate debt amounted to $517.0 million and

our finance liabilities amounted to $133.3 million. During 2023, we replaced LIBOR, being the reference

rate to calculate interest expense in our loan facilities having a floating rate, with term SOFR through loan

refinancings and one loan modification. Interest rates, which have been increasing since the beginning of

2022, continued to increase in 2023 and in combination with the increased average debt outstanding in

2023, interest costs increased significantly. For 2024, we expect interest and finance costs to remain at the

same levels with 2023, as we do not expect interest rates to increase, while debt outstanding is expected

to decrease. 

We manage our exposure in interest rates, by maintaining a mix of financing under agreements with floating

and fixed interest rates. More specifically, during 2022, we refinanced part of our loans having a floating

interest rate, with sale and leaseback transactions with fixed rates. Also, in 2023, we entered into an interest

rate swap for 30% of our $100 million loan facility with DNB, dated June 26, 2023, under which we pay

fixed interest and receive floating. Through these agreements and our bond, also bearing fixed interest

rate, we manage part of our exposure in interest rates caused by the remaining agreements which bear

floating interest rates.

Lack of Historical Operating Data for Vessels before Their Acquisition

Although vessels are generally acquired free of charter, we have acquired (and may in the future acquire)

some vessels with time charters. It is rare in the shipping industry for the last charterer of the vessel in the

hands of the seller to continue as the first charterer of the vessel in the hands of the buyer. In most cases,

when a vessel is under time charter and the buyer wishes to assume that charter, the vessel cannot be

acquired without the charterer’s consent and the buyer entering into a separate direct agreement (called a

“novation agreement”) with the charterer to assume the charter. The purchase of a vessel itself does not

transfer the charter because it is a separate service agreement between the vessel owner and the

charterer.

73

Where we identify any intangible assets or liabilities associated with the acquisition of a vessel, we record

all identified assets or liabilities at fair value. Fair value is determined by reference to market data. We

value any asset or liability arising from the market value of the time charters assumed when a vessel is

acquired. The amount to be recorded as an asset or liability at the date of vessel delivery is based on the

difference between the current fair market value of the charter and the net present value of future

contractual cash flows. When the present value of the time charter assumed is greater than the current

fair market value of such charter, the difference is recorded as prepaid charter revenue. When the opposite

situation occurs, any difference, capped to the vessel’s fair value on a charter-free basis, is recorded as

deferred revenue. Such assets and liabilities, respectively, are amortized as a reduction of, or an increase

in, revenue over the period of the time charter assumed.

When we purchase a vessel and assume or renegotiate a related time charter, among others, we must

take the following steps before the vessel will be ready to commence operations:

●

obtain the charterer’s consent to us as the new owner;

●

obtain the charterer’s consent to a new technical manager;

●

in some cases, obtain the charterer’s consent to a new flag for the vessel;

●

arrange for a new crew for the vessel, and where the vessel is on charter, in some cases, the

crew must be approved by the charterer;

●

replace all hired equipment on board, such as gas cylinders and communication equipment;

●

negotiate and enter into new insurance contracts for the vessel through our own insurance

brokers;

●

register the vessel under a flag state and perform the related inspections in order to obtain new

trading certificates from the flag state;

●

implement a new planned maintenance program for the vessel; and

●

ensure that the new technical manager obtains new certificates for compliance with the safety

and vessel security regulations of the flag state.

When we charter a vessel pursuant to a long-term time charter agreement with varying rates, we recognize

revenue on a straight-line basis, equal to the average revenue during the term of the charter. 

The following discussion is intended to help you understand how acquisitions of vessels affect our business

and results of operations.

Our business is mainly comprised of the following elements:

●

employment and operation of our vessels; and

●

management of the financial, general and administrative elements involved in the conduct of

our business and ownership of our vessels.

The employment and operation of our vessels mainly require the following components:

●

vessel maintenance and repair;

74

●

crew selection and training;

●

vessel spares and stores supply;

●

contingency response planning;

●

onboard safety procedures auditing;

●

accounting;

●

vessel insurance arrangement;

●

vessel chartering;

●

vessel security training and security response plans (ISPS);

●

obtaining of ISM certification and audit for each vessel within the six months of taking over a

vessel;

●

vessel hiring management;

●

vessel surveying; and

●

vessel performance monitoring.

The management of financial, general and administrative elements involved in the conduct of our business

and ownership of our vessels mainly requires the following components:

●

management of our financial resources, including banking relationships, i.e., administration of

bank loans and bank accounts;

●

management of our accounting system and records and financial reporting;

●

administration of the legal and regulatory requirements affecting our business and assets; and

●

management of the relationships with our service providers and customers.

The principal factors that affect our profitability, cash flows and shareholders’ return on investment include:

●

rates and periods of charter hire;

●

levels of vessel operating expenses;

●

depreciation expenses;

●

financing costs;

●

the effects of COVID-19;

●

the war in the Ukraine; 

●

inflation, and 

75

●

fluctuations in foreign exchange rates.

Results of Operations

Year ended December 31, 2023 compared to the year ended December 31, 2022

Time charter revenues.

 Time charter revenues decreased by $27.9 million, or 9.6%, to $262.1 million in

2023, compared to $290.0 million in 2022. The decrease in time charter revenues was due to decreased

average time charter rates, which decreased our TCE rate to $16,713 in 2023 from $22,735 in 2022,

representing a 26% decrease. This decrease was partly offset by increased operating days during 2023,

as compared to last year. Operating days in 2023 were 14,824 compared to 12,306 in 2022, mainly

resulting from the acquisition of eight Ultramax vessels in the fourth quarter of 2022 and one more in first

quarter of 2023.

Voyage expenses.

 Voyage expenses increased by $6.7 million, or 97%, to $13.6 million in 2023 as

compared to $6.9 in 2022. This increase was mainly due to the decreased gain on bunkers amounting to

$0.5 million in 2023 compared to $8.1 million in 2022. The gain on bunkers was mainly due to the difference

in the price of bunkers paid by the Company to the charterers on the redelivery of the vessels from the

charterers under the previous charter party agreement and the price of bunkers paid by charterers to the

Company on the delivery of the same vessels to their charterers under new charter party agreements. This

decrease was partially counterbalanced due to decreased commissions, which is the main part of voyage

expenses, and which in 2023 decreased to $13.3 million compared to $14.4 million in 2022. 

Vessel operating expenses.

Vessel operating expenses increased by $13.5 million, or 19%, to $85.5 million

in 2023 compared to $72.0 million in 2022. The increase in operating expenses is attributable to the

increase in ownership days in 2023, as a result of the acquisition of eight Ultramax vessels in the fourth

quarter of 2022 and one more in first quarter of 2023. Operating expenses also increased due to increased

crew costs, insurances, spares and other consumables. Total daily operating expenses were $5,704 in

2023 compared to $5,574 in 2022. 

Depreciation and amortization of deferred charges. Depreciation and amortization of deferred charges

increased by $6.5 million, or 15%, to $49.8 million in 2023, compared to $43.3 million in 2022. This increase

was due to the acquisition of nine vessels, as noted above. This increase was partially offset due to the

fact that, effective July 1, 2023, the Company changed its estimated scrap rate of its vessels from $250

per lightweight ton to $400 and the sale of vessel

Boston

in the fourth quarter of 2023. A further decrease

incurred due to decreased amortization of deferred cost as a result of the drydock cost incurred for seven

vessels having drydock surveys in 2023 and twelve in 2022.

General and administrative expenses

. General and admini

strati

ve expenses increased by $3.6 million, or

12%, to $33.0 million in 2023 compared to $29.4 million in 2022. The increase was mainly due to the

increased payroll costs and travelling expenses. A further increase by $0.6 million was attributed to donations.

Management fees to related party.

 Management fees to a related party increased by $0.8 million, or 160%

to $1.3 million in 2023 compared to $0.5 million in 2022. The increase was attributable to increased average

number of vessels managed by DWM in 2023 compared to 2022, due to the acquisition of three Ultramax

vessels in the fourth quarter of 2022 and one more in first quarter of 2023, whose management was

assigned to DWM. 

Gain on sale of vessels.

 Gain on sale of vessels increased by $2.4 million, or 83%, to $5.3 million which

resulted from the sale of vessels

Aliki, Melia and Boston

in 2023 compared to $2.9 million in 2022 which

resulted from the sale of

Baltimore

 in 2022.

76

Insurance recoveries

. Insurance recoveries amounted to null balance in 2023, compared to $1.8 million in

2022 which consisted of amounts received from our insurers for claims covered under the insurance policies

during 2022. 

Interest expense and finance costs.

 Interest expense and finance costs increased by $21.9 or 80% to

$49.3 million in 2023 compared to $27.4 million in 2022. The increase was primarily attributable to increased

average outstanding balance of debt and finance liabilities in 2023, resulting from the refinances performed.

A further increase was also derived from increased average interest rates resulting from our loan

agreements, having a variable interest rate. In 2023, the weighted average interest rate of our secured loan

agreements was 7.3% compared to 3.8% in 2022.

Interest and other income

. Interest and other income increased by $5.5 million, or 204%, to $8.2 million in

2023 compared to $2.7 million in 2022. The increase is mainly attributable to increased deposit rates in

2023 compared to 2022. 

Loss on extinguishment of debt.

In 2023, loss on extinguishment of debt increased by $0.3, or 75% to $0.7

million and consisted of the prepayment in full of six loan agreements refinanced by other banks. In 2022,

loss on extinguishment of debt amounted to $0.4 million and consisted of financing costs written off as a

result of the early prepayment of the outstanding balances of loans attributed to one vessel sold and three

vessels refinanced in sale and leaseback transactions in 2022. 

Loss on derivatives

. Loss on derivates

 amounted

to $0.4 million in 2023 and represents the fair value of

an interest rate swap dated July 6, 2023 in which the Company entered into with DNB. The notional amount

of the agreement is $30 million and the Company pays a fixed rate of 4.268% and receives floating under

term SOFR.

Gain on related party Investments.

Gain on related party Investments amounted to $1.5 million in 2023,

compared to $0.6 million in 2022. On October 17, 2023, the Company realized a gain of $1.7 million which

derived from the conversion of 9,793 of the 10,000 Series C Preferred shares of OceanPal to 3,649,474

common shares of OceanPal, having a fair value of $9.2 million, based on the closing price of OceanPal’s

common shares on the date of conversion. This gain was the difference between the book value of

OceanPal’s Series C Preferred shares and the fair value of the converted common shares and was partially

offset by an unrealized loss of $1.0 million, resulting from the measurement of OceanPal’s common shares

at fair value on December 31, 2023, based on the closing price of the shares on that date. Additionally, the

Company distributed to its shareholders as a noncash dividend, its 13,157 Series D Preferred Shares of

OceanPal, which resulted in gain of $0.8 million. The gain of $0.6 million in 2022 represents the gain

recognized upon the distribution of 25,000 Convertible Series D Preferred Shares of OceanPal Inc. as a

noncash dividend to the Company's shareholders, being the difference between the carrying value and the

fair value of the Series D Preferred Shares on the date of the dividend declaration.

Gain on deconsolidation of subsidiary.

Gain on deconsolidation of subsidiary amounted to $0.8 million in

2023 and represents the gain from the Company’s 25% interest in Bergen Ultra measured at fair value on

the date of its deconsolidation from the Company’s financial statements.

Unrealized gain on equity securities.

Unrealized gain on equity securities amounted to $2.8 million in 2023

and resulted from the measurement of equity securities, having a book value of $17.9 million, at fair value

of $20.7 million on December 31, 2023, determined through Level 1 of the fair value hierarchy.

Unrealized gain on warrants.

Unrealized

gain on warrants amounted $1.6 million in 2023, which resulted

from the fair value adjustment as of December 31, 2023 of the value of the 22,613,070 warrants issued on

December 14, 2023.

77

Gain/(loss) from equity method investments.

In 2023, loss from equity method investments, amounted to

$0.3 million, compared to a gain of $0.9 million in 2022 The loss in 2023 is attributed to a loss of $0.7

million from our 45.45% interest in Windward, which was partly offset by a gain of $0.2 million from our

50% interest in DWM, and a gain of $0.2 million from our 25% interest in Bergen. The gain in the prior year

derived from our 50% interest in DWM.

Year ended December 31, 2022 compared to the year ended December 31, 2021

For a discussion of the year ended December 31, 2022 compared to the year ended December 31, 2021,

please refer to “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-

F, for the year ended December 31, 2022 filed with the SEC on March 27, 2023.

B. Liquidity and Capital Resources

We finance our capital requirements with cash flow from operations, equity contributions from

shareholders, long-term bank debt, finance liabilities and senior unsecured bonds. Our main uses of funds

have been capital expenditures for the acquisition and construction of new vessels, expenditures incurred

in connection with ensuring that our vessels comply with international and regulatory standards,

repayments of bank loans, repurchase of our common stock and payment of dividends. 

As of December 31, 2023 and 2022, working capital, which is current assets minus current liabilities,

including the current portion of long-term debt and finance liabilities, amounted to $97.1 million and $9.0

million, respectively. The increase in working capital is mainly due to increased cash and cash equivalents

and our investment in equity securities amounting to $20.7 million, which did not exist in the prior year. In

addition, the Company’s current portion of long-term debt decreased compared to last year as in 2022,

current portion of long-term debt included a balloon of $43.8 million under one of our loan agreements

which was refinanced in 2023.

Cash and cash equivalents, including restricted cash, was $121.6 million as of December 31, 2023 and

$97.4 million as of December 31, 2022. Restricted cash mainly consists of the minimum liquidity

requirements under our loan facilities. As of December 31, 2023 and 2022, restricted cash amounted to

$20.0 million and $21.0 million, respectively. We consider highly liquid investments such as time deposits,

certificates of deposit and their equivalents with an original maturity of up to about three months to be cash

equivalents. Time deposits with maturity above three months are removed from cash and cash equivalents

and are separately presented as time deposits. As of December 31, 2023, the time deposits above three

months amounted to $40.0 million, compared to $46.5 million as of December 31, 2022. Cash and cash

equivalents are primarily held in U.S. dollars.

Net Cash Provided by Operating Activities

Net cash provided by operating activities decreased by $88.5 million, or 56%. In 2023, net cash provided

by operating activities was $70.4 million compared to net cash provided by operating activities of

$158.9 million in 2022. This decrease in cash from operating activities was mainly attributable to decreased

revenues as a result of decreased average time charter rates compared to 2022. Cash provided by

operating activities was also affected by our investment in equity securities acquired in 2023 for $17.9

million. This decrease was partly offset by decreased dry-docking costs incurred for seven vessels in 2023

compared to twelve vessels in 2022. 

Net Cash Used in Investing Activities

Net cash provided by investing activities was $24.9 million for 2023, which consists of $29.7 million paid

for vessel acquisitions and improvements due to new regulations; $36.6 million of proceeds from the sale

of three vessels in 2023; $10.5 million paid to acquire investments in Windward and Cohen; $1.0 million

78

cash divested from deconsolidation of Bergen Ultra; decreased investment by $6.5 million in time deposits

with maturity above three months;$25.2 million proceeds from convertible loan with limited partnership;

$0.2 million paid to acquire other assets; and $2.0 million relating to the acquisition of equipment.

Net cash used in investing activities was $273.1 million for 2022, which consists of $230.3 million paid for

vessel acquisitions and improvements due to new regulations; $4.4 million of proceeds from the sale of

one vessel in 2022; $46.5 million investment in time deposits with maturity above three months; and $0.7

million relating to the acquisition of equipment.

Net Cash Provided by Financing Activities

Net cash used in financing activities was $71.1 million for 2023, which consists of $57.7 million proceeds

from issuance of long term debt and finance liabilities; $79.8 million of indebtedness and finance liabilities

that we repaid; $5.8 million and $41.4 million of cash dividends paid on our preferred and common stock,

respectively; and $1.8 million of finance costs paid in relation to new loan agreements.

Net cash provided by financing activities was $84.9 million for 2022, which consists of $275.1 million

proceeds from issuance of long term debt and finance liabilities; $102.8 million of indebtedness and finance

liabilities that we repaid; $5.8 million and $79.8 million of cash dividends paid on our preferred and common

stock, respectively; $3.8 million paid for repurchase of common stock; $5.3 million proceeds from issuance

of common stock; and $3.3 million of finance costs paid in relation to new loan agreements and finance

liabilities.

For a detailed discussion of cash flows for the year ended December 31, 2022 compared to the year ended

December 31, 2021 please see “Item 5. Operating and Financial Review and Prospects - B. Liquidity and

Capital Resources” included in our 2022 Annual Report filed on Form 20-F with the SEC on March 27,

2023.

Capital Expenditures

We make capital expenditures in connection with vessel acquisitions and constructions, which we finance

with cash from operations, debt under loan facilities at terms acceptable to us, sale and leaseback

agreements and with funds from equity issuances. 

As of the date of this annual report, we have entered into two agreements for the construction of two 81,200

dwt methanol dual fuel new-building Kamsarmax dry bulk vessels, for $46 million each. The vessels are

expected to be delivered to the Company by the second half of 2027 and the first half of 2028 respectively.

On February 15, 2024, we paid an aggregate amount of $16.1 million, representing 17.5% of the purchase

price of both vessels. Additionally, we have committed to contribute Euro 50 million to Windward for the

construction of four CSOVs, with deliveries scheduled to occur between the third quarter of 2025 and the

fourth quarter of 2026. As of the date of this report, we have paid an aggregate of Euro 24.3 million, or

$26.1 million. We also expect to incur capital expenditures when our vessels undergo surveys. This process

of recertification may require us to reposition these vessels from a discharging port to shipyard facilities,

which will reduce our operating days during the period. We may also incur capital expenditures for vessel

improvements to meet new regulations. In the next twelve months, we will require capital to fund ongoing

operations, debt service, the payment of our preferred dividends and the payment of our bareboat charters. 

As of the date of this annual report, we have contracted revenues covering around 71% of our ownership

days in 2024, in time charter agreements having an average time charter rate in excess of our break-even

rate as of December 31, 2023, and we have also fixed around 12% of our ownerships days in 2025. We

believe that contracted and anticipated revenues will result in internally generated cash flows and together

with available cash and cash equivalents, which as of December 31, 2023 amounted to $101.6 million and

having additional investments in time deposits of $40.0 million which mature in 2024, will be sufficient to

79

fund such capital requirements. Should time charter rates remain at current levels as our time charter

agreements are due for renewal during the year, we believe that we will be able to have sufficient funds to

cover our capital expenditures in the long-term. We may also incur additional debt to finance part of the

construction cost of our methanol vessels on order.

Long-term Debt and Finance Liabilities

As of December 31, 2023, we had $517.0 million of long term debt outstanding under our facilities and

Bond, under the agreements described below.

Secured Term Loans

On January 4, 2017, we drew down $57.24 million, under a secured loan agreement with the Export-Import

Bank of China, dated January 7, 2016, to finance part of the construction cost of

San Francisco

 and

Newport News

, both delivered on January 4, 2017. The loan is payable in equal quarterly instalments of

about $1.0 million each, the last of which is payable by January 4, 2032. On July 19, 2023, we amended

the terms of the loan to replace LIBOR with term SOFR and the margin was increased from 2.3% to 2.45%.

On September 30, 2022, we entered into a $200 million loan agreement to finance the acquisition price of

9 Ultramax vessels. The Company drew down $197.2 million under the loan, in tranches for each vessel

on their delivery to the Company but prepaid $21.9 million in December 2022 due to a vessel sale and

leaseback transaction. The loan is repayable in equal quarterly instalments of an aggregate amount of $3.7

million, and a balloon of $100.9 million payable together with the last instalment on October 11, 2027. The

loan bears interest at term SOFR plus a margin of 2.25%.

On April 12, 2023, we entered into a $100 million term loan facility with Danish Ship Finance A/S to

refinance an aggregate of $75.2 million outstanding balance under existing loans with BNP Paribas and

working capital. The loan is repayable in twenty equal consecutive quarterly instalments of $3.3 million

each and a balloon of $34 million payable together with the last instalment on April 19, 2028, and bears

interest at term SOFR plus a margin of 2.2%.

On June 20, 2023, the Company entered into a $22.5 million loan agreement with Nordea to refinance

$20.9 million outstanding balance of an existing loan. The new loan is repayable in equal quarterly

instalments of about $1.1 million and bears interest at term SOFR plus a margin of 2.25%. The loan matures

on June 27, 2028.

On June 26, 2023, we entered into a $100 million loan agreement with DNB Bank ASA, or DNB, to refinance

an aggregate of $68.7 million outstanding balance under existing loans with ABN AMRO Bank N.V, and

for working capital purposes. The loan is repayable in equal quarterly instalments of $3.8 million until

December 27, 2029, and bears term SOFR plus a margin of 2.2%, subject to sustainability margin

adjustment. Additionally, the loan is subject to a margin reset, according to which the borrowers and the

lenders will enter into discussions to agree on a new margin. Unless the parties agree on a new margin,

the loan will be mandatorily repayable on June 27, 2027. As part of the loan agreement, on July 6, 2023,

we entered into an interest rate swap with DNB for a notional amount of $30 million and quarterly

amortization of $1.2 million. Under the interest rate swap, we pay a fixed rate of 4.268% and receive floating

under term SOFR. The swap has a termination date on December 27, 2029, and a mandatory break on

June 27, 2027, which is the margin reset date of the loan, according to which the swap will be terminated

if the loan is prepaid. As of December 31, 2023, the interest rate swap was a liability having a fair value of

$0.4 million.

Under the secured term loans outstanding as of December 31, 2023, 33 vessels of our fleet were

mortgaged with first preferred or priority ship mortgages. Additional securities required by the banks include

first priority assignment of all earnings, insurances, first assignment of time charter contracts with duration

80

that exceeds a certain period, pledge over the shares of the borrowers, manager’s undertaking and

subordination and requisition compensation and either a corporate guarantee by Diana Shipping Inc. (the

“Guarantor”) or a guarantee by the ship owning companies (where applicable), financial covenants, as well

as operating account assignments. The lenders may also require additional security in the future in the

event the borrowers breach certain covenants under the loan agreements. The secured term loans

generally include restrictions as to changes in management and ownership of the vessels, additional

indebtedness, as well as minimum requirements regarding hull cover ratio and minimum liquidity per vessel

owned by the borrowers, or the Guarantor, maintained in the bank accounts of the borrowers, or the

Guarantor. Furthermore, the secured term loans contain cross default provisions and additionally we are

not permitted to pay any dividends following the occurrence of an event of default. 

As of December 31, 2022 and 2023, and the date of this annual report, we were in compliance with all of

our loan covenants.

Senior Unsecured Bond due 2026

On June 22, 2021, the Company issued a $125 million senior unsecured bond maturing in June 2026. The

bond ranks ahead of subordinated capital and ranks the same with all other senior unsecured obligations

of the Company other than obligations which are mandatorily preferred by law. Entities affiliated with

executive officers and directors of the Company purchased an aggregate of $21 million principal amount

of the bond. The bond bears interest at a US Dollar fixed-rate coupon of 8.375% and is payable semi-

annually in arrears in June and December of each year. The bond is callable in whole or in part in June

2024 at a price equal to 103.35% of nominal value; between June 2025 to December 2025 at a price equal

to 101.675% of nominal value and after December 2025 at a price equal to 100% of nominal value. On

June 29, 2023, we repurchased $5.9 million nominal value of the bond and recognized a loss of $0.2

million. The bond includes financial and other covenants and is trading at Oslo Stock Exchange under the

ticker symbol “DIASH02”. 

Finance Liabilities

On March 29, 2022, we entered into a $50 million sale and leaseback agreement with an unaffiliated third

party, for a period of ten years, under which we pay hire, monthly in advance and we have the option to

repurchase the vessel after the end of the third year of the charter period, or each year thereafter, until the

termination of the lease, at specific prices, subject to irrevocable and written notice to the owner. If not

repurchased earlier, we have the obligation to repurchase the vessel for $16.4 million, on the expiration of

the lease on the tenth year. 

On August 17, 2022, we entered into two sale and leaseback agreements with two unaffiliated Japanese

third parties, for an aggregate amount of $66.4 million, for a period of eight years, each, under which we

pay hire, monthly in advance, and we have the option to purchase the vessels at the end of the third year

of each vessel's bareboat charter period, or each year thereafter, until the termination of the lease, at

specific prices, subject to irrevocable and written notice to the owner. If not repurchased earlier, we have

the obligation to repurchase the vessels for $13.0 million, each, on the expiration of each lease on the

eighth year.

On December 6, 2022, we entered into a sale and leaseback agreement for $29.9 million with an

unaffiliated third party, for a period of ten years, under which we pay hire, monthly in advance, and we have

the option to repurchase the vessel after the end of the third year of the charter period, or each year

thereafter, until the termination of the lease, at specific prices, subject to irrevocable and written notice to

the owner. If not repurchased earlier, we have the obligation to repurchase the vessel for $8.1 million, on

the expiration of the lease on the tenth year.

81

Commitments and Contingencies

On March 30, 2023, we entered into a corporate guarantee with Nordea under which we guaranteed the

performance by Bergen Ultra, an equity method investee owning one dry bulk carrier, of its obligations

under a loan agreement with the bank maturing on March 30, 2028. The Company considers the likelihood

of having to make any payments under the guarantee to be remote, as the loan is also secured by an

account pledge by Bergen, first preferred mortgage on the vessel, a first priority general assignment of the

earnings, insurances and requisition compensation of the vessel, a charter party assignment, a partnership

interests security deed, and a manager’s undertaking. As of December 31, 2023, the loan had an

outstanding balance of $14.8 million. 

C. Research and development, patents and licenses

We incur from time to time expenditures relating to inspections for acquiring new vessels that meet our

standards. Such expenditures are insignificant and they are expensed as they incur.

D. Trend information

Demand for dry bulk vessel services is influenced by global financial conditions. Global financial markets

and economic conditions have been, and continue to be, volatile. Our results of operations depend primarily

on charter hire rates that we are able to realize, and the demand for dry bulk vessel services. The Baltic

Dry Index, or the BDI, has long been viewed as the main benchmark to monitor the movements of the dry

bulk vessel charter market and the performance of the entire dry bulk shipping market. In 2023, the BDI

ranged from a low of 530 to a high of 3,346 and closed at 1,714 on April 2, 2024. Although there can be no

assurance that the dry bulk charter market will not decline further, as of the date of this annual report, we

have fixed about 62% of our fleet ownership days in 2024 at rates above our break-even rate. Nevertheless,

our revenues and results of operations in 2024 will be subject to demand for our services, the level of

inflation, market disruptions and interest rates. Demand for our dry bulk oceangoing vessels is dependent

upon economic growth in the world’s economies, seasonal and regional changes in demand and changes

to the capacity of the global dry bulk fleet and the sources and supply for dry bulk cargo transported by

sea. Continued adverse economic, political or social conditions or other developments could further

negatively impact charter rates and therefore have a material adverse effect on our business and results

of operations.

E. Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon our

consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The

preparation of those financial statements requires us to make estimates and judgments that affect the

reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent

assets and liabilities at the date of our financial statements. Actual results may differ from these estimates

under different assumptions and conditions.

Impairment of Vessels

Long-lived assets are reviewed for impairment whenever events or changes in circumstances (such as

market conditions, obsolesce or damage to the asset, potential sales and other business plans) indicate

that the carrying amount of an asset may not be recoverable. When the estimate of undiscounted projected

net operating cash flows, excluding interest charges, expected to be generated by the use of an asset over

its remaining useful life and its eventual disposition is less than its carrying amount, the Company evaluates

the asset for impairment loss. Measurement of the impairment loss is based on the fair value of the asset,

determined mainly by third party valuations. 

82

For vessels, we calculate undiscounted projected net operating cash flows by considering the historical

and estimated vessels’ performance and utilization with the significant assumption being future charter

rates for the unfixed days, using the most recent 10-year average of historical 1 year time charter rates

available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. The historical ten-year

average rate used in 2023 to calculate undiscounted projected net operating cash flow was $12,775 for

Panamax, Kamsarmax and Post-Panamax vessels, $16,608 for Ultramax vessels and $16,115 for our

Capesize and Newcastlmax vessels, compared to $12,431, 16,876 and $16,128, respectively in 2022.

Other assumptions used in developing estimates of future undiscounted cash flow are the charter rates

calculated for the fixed days using the fixed charter rate of each vessel from existing time charters, the

expected outflows for scheduled vessels’ maintenance; vessel operating expenses; fleet utilization, and

the vessels’ residual value if sold for scrap. Assumptions are in line with our historical performance and our

expectations for future fleet utilization under our current fleet deployment strategy. The difference between

the carrying amount of the vessel plus unamortized deferred costs and their fair value is recognized in the

Company's accounts as impairment loss. Although no impairment loss was identified or recorded in 2023,

according to our assessment, the carrying value plus unamortized deferred cost of vessels for which

impairment indicators existed as of December 31, 2023, was $378.2 million.

Historically, the market values of vessels have experienced volatility, which from time to time may be

substantial. As a result, the charter-free market value of certain of our vessels may have declined below

those vessels’ carrying value plus unamortized deferred cost, even though we would not impair those

vessels’ carrying value under our accounting impairment policy. Based on: (i) the carrying value plus

unamortized deferred cost of each of our vessels as of December 31, 2023 and 2022 and (ii) what we

believe the charter-free market value of each of our vessels was as of December 31, 2023 and 2022, the

aggregate carrying value of 12 and 17 of the vessels in our fleet as of December 31, 2023 and 2022,

respectively, exceeded their aggregate charter-free market value by approximately $49 million and $83

million, respectively, as noted in the table below. This aggregate difference represents the approximate

analysis of the amount by which we believe we would have to reduce our net income or increase our loss

if we sold all of such vessels at December 31, 2023 and 2022, on a charter-free basis, on industry standard

terms, in cash transactions, and to a willing buyer where we were not under any compulsion to sell, and

where the buyer was not under any compulsion to buy. For purposes of this calculation, we have assumed

that these 12 and 17 vessels would be sold at a price that reflects our estimate of their charter-free market

values as of December 31, 2023 and 2022, respectively.

83

Vessel

Dwt

Year Built

Carrying Value plus unamortized

deferred cost 

(in millions of US dollars)

2023

2022

1

Alcmene

93,193

2010

 9.6

 10.1

2

Aliki

180,235

2005

 - 

 13.0

3

Amphitrite

98,697

2012

 14.0

 14.7

4

Artemis

76,942

2006

 11.0

 11.9

5

Astarte

81,513

2013

 18.0

 19.1

6

Atalandi

77,529

2014

 15.7

 16.4

7

Boston

177,828

2007

 -

 18.2

*

8

Crystalia

77,525

2014

 15.4

 16.1

9

Electra

87,150

2013

 14.1

 14.9

10

G.P. Zafirakis

179,492

2014

 22.1

 23.0

11

Houston

177,729

2009

 18.4

 19.4

12

Ismene

77,901

2013

 11.7

 10.6

13

Leto

81,297

2010

 12.9

 13.7

14

Los Angeles

206,104

2012

 23.5

 24.8

15

Maera

75,403

2013

 11.7

 12.3

16

Maia

82,193

2009

 12.4

 13.4

17

Medusa

82,194

2010

 12.4

 13.1

18

Melia

76,225

2005

 -

 10.8

19

Myrsini

82,117

2010

 14.2

 15.1

20

Myrto

82,131

2013

 17.8

 18.9

21

New Orleans

180,960

2015

 31.6

 33.1

*

22

New York

177,773

2010

 14.0

 14.5

23

Newport News

208,021

2017

 40.5

 42.4

*

24

P.S. Palios

179,134

2013

 35.3

*

 37.4

*

25

Phaidra

87,146

2013

 13.5

 13.0

26

Philadelphia

206,040

2012

 24.2

 25.5

27

Polymnia

98,704

2012

 14.2

 15.0

28

San Francisco

208,006

2017

 40.6

 42.5

*

29

Santa Barbara

179,426

2015

 34.8

*

 36.4

*

30

Seattle

179,362

2011

 21.3

 22.6

31

Selina

75,700

2010

 9.1

 9.3

32

Semirio

174,261

2007

 16.1

 17.6

*

33

LEONIDAS P.C.

82,165

2011

 20.8

*

 21.7

*

34

Florida

182,063

2022

 57.0

 59.1

*

35

DSI Pyxis

60,362

2018

 35.6

*

 36.1

*

36

DSI Pollux

60,446

2015

 29.9

*

 31.4

*

37

DSI Phoenix

60,456

2017

 32.7

*

 34.3

*

38

DSI Polaris

60,404

2018

 36.2

*

 36.9

*

39

DSI Andromeda

60,309

2016

 31.8

*

 33.3

*

40

DSI Aquila

60,309

2015

 29.9

*

 31.5

*

41

DSI Pegasus

60,508

2015

 28.8

*

 30.3

*

42

DSI Altair

60,309

2016

 31.3

*

 32.5

*

43

DSI Aquarius

60,309

2016

 31.0

*

 -

Total 

4,915,571

 915 

 966 

_______________________________

*

Indicates dry bulk vessels for which we believe, as of December 31, 2023 and 2022, the charter-free market value

was lower than the vessel’s carrying value plus unamortized deferred cost. We believe that the aggregate carrying

value plus unamortized deferred cost of these vessels exceeded their aggregate charter-free market value by

approximately $49 million and $83 million, respectively. 

84

Our estimates of charter-free market value assume that our vessels were all in good and seaworthy

condition without need for repair and if inspected would be certified in class without notations of any kind.

Our estimates are based on information available from various industry sources, including: 

●

reports by industry analysts and data providers that focus on our industry and related dynamics

affecting vessel values; 

●

news and industry reports of similar vessel sales; 

●

offers that we may have received from potential purchasers of our vessels; and 

●

vessel sale prices and values of which we are aware through both formal and informal

communications with shipowners, shipbrokers, industry analysts and various other shipping

industry participants and observers.

As we obtain information from various industry and other sources, our estimates of charter-free market

value are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may

not be indicative of the current or future charter-free market value of our vessels or prices that we could

achieve if we were to sell them. We also refer you to the risk factor in “Item 3. Key Information—D. Risk

Factors” entitled “

The market values of our vessels could decline, which could limit the amount of funds

that we can borrow and could trigger breaches of certain financial covenants contained in our loan facilities,

which could adversely affect our operating results, and we may incur a loss if we sell vessels following a

decline in their market values

” and the discussion under the heading "Item 4. Information on the

Company—B. Business Overview–Vessel Prices.”

Our impairment test exercise is sensitive to variances in the time charter rates. Our current analysis, which

also involved a sensitivity analysis by assigning possible alternative values to this significant input,

indicated that time charter rates would need to be reduced by

11

% to result in impairment of individual

long-lived assets with indication of impairment. However, there can be no assurance as to how long charter

rates and vessel values will remain at their current levels. If charter rates decrease and remain depressed

for some time, it could adversely affect our revenue and profitability and future assessments of vessel

impairment.

A comparison of the average estimated daily time charter equivalent rate used in our impairment analysis

with the average “break-even rate” for each major class of vessels is presented below: 

Average estimated daily time

charter equivalent rate used

Average break-even 

rate

Ultramax

$16,608

$12,195

Panamax/Kamsarmax/Post-Panamax

$12,775

 $9,314

Capesize/Newcastlemax

$16,115

$11,721

85

It should be noted that as of December 31, 2023, twelve of our vessels, having indication of impairment,

would be affected by a reduction in time charter rates below the average break-even rate. Additionally, the

use of the 1-year, 3-year and 5-year average blended rates would not have any effect on the Company’s

impairment analysis and as such on the Company’s results of operations:

Vessel type

1-year

(period)

Impairment

charge

(in USD

million)

3-year

(period)

Impairment

charge

(in USD

million)

5-year

(period)

Impairment

charge

(in USD

million)

Ultramax

$15,131

-

$20,740

-

$17,191

-

Panamax/Kamsarmax/Post-

Panamax

$13,536

-

$18,618

-

$15,652

-

Capesize/Newcastlemax

$15,623

-

$19,900

-

$17,974

-

Item 6. Directors, Senior Management and Employees

A. Directors and Senior Management

Set forth below are the names, ages and positions of our directors and executive officers. Our Board of

Directors consists of eleven members and is elected annually on a staggered basis, and each director

elected holds office for a three-year term and until his or her successor is elected and has qualified, except

in the event of such director’s death, resignation, removal or the earlier termination of his or her term of

office. Officers are appointed from time to time by our board of directors and hold office until a successor

is appointed or their employment is terminated.

Name

Age

Position

Semiramis Paliou

49

Class III Director and Chief Executive Officer 

Simeon Palios

82

Class I Director and Chairman

Anastasios Margaronis

68

Class I Director and President

Ioannis Zafirakis

52

Class I Director, Chief Financial Officer, Chief

Strategy Officer, Treasurer and Secretary

Konstantinos Psaltis

85

Class II Director

Kyriacos Riris

74

Class II Director

Apostolos Kontoyannis

75

Class III Director

Konstantinos Fotiadis 

73

Class III Director

Eleftherios Papatrifon 

54

Class II Director

Simon Frank Peter Morecroft

65

Class II Director

Jane Sih Ho Chao

48

Class I Director

Maria Dede

51

Chief Accounting Officer

Margarita Veniou

45

Chief Corporate Development, Governance &

Communications Officer

Maria Christina Tsemani

45

Chief People Officer

The term of our Class I directors expires in 2024, the term of our Class II directors expires in 2025, and the

term of our Class III directors expires in 2026. 

Mr. Eleftherios Papatrifon served as Chief Operating Officer of the Company until February 2023, when he

was appointed as Class II Director and member of the Executive Committee on February 22, 2023 to serve

until the next scheduled election for Class II directors.

86

Ms. Jane Chao was appointed as a Class I Director on February 22, 2023 to serve until the next scheduled

election for Class I directors.

The business address of each officer and director is the address of our principal executive offices, which

are located at Pendelis 16, 175 64 Palaio Faliro, Athens, Greece.

Biographical information with respect to each of our directors and executive officers is set forth below.

Semiramis Paliou

 has served as a Director of Diana Shipping Inc. since March 2015, and as the

Company’s Chief Executive Officer, Chairperson of the Executive Committee and member of the

Sustainability Committee since March 2021. Ms. Paliou has been the Chief Executive Officer of Diana

Shipping Services S.A. since March 2021. She also serves as a Director of OceanPal Inc. since April 2021

and as the Chairperson of the Board of Directors and of the Executive Committee of OceanPal Inc. since

November 2021. Ms. Paliou is the Chairperson of the Hellenic Marine Environment Protection Association

(HELMEPA), a position she has held since June 2020, while she joined its board of directors in March

2018. As of July 2023, she serves as Chairperson of INTERMEPA. She is also a member of the board of

directors of the UK P&I Club since November 2020, member of the Union of Greek Shipowners since

February 2022 and member of the Global Maritime Forum since April 2022. She is Vice-Chairperson of the

Greek committee of Det Norske Veritas, a member of the Greek committee of Nippon Kaiji Kyokai, Bureau

Veritas, American Bureau of Shipping and Hellenic War Risks

Ms. Paliou has over 20 years of experience in shipping operations, technical management and crewing.

She began her career at Lloyd’s Register of Shipping where she worked as a trainee ship surveyor from

1996 to 1998. She was then employed by Diana Shipping Agencies S.A. From 2007 to 2010 she was

employed as a Director and President of Alpha Sigma Shipping Corp. From February 2010 to November

2015, she was the Head of the Operations, Technical and Crew department of Diana Shipping Services

S.A. From November 2015 to October 2016, she served as Vice-President of the same company. From

November 2016 to the end of July 2018, she served as Managing Director and Head of the Technical,

Operations, Crew and Supply department of Unitized Ocean Transport Limited. From November 2018 to

February 2020, she worked as Chief Operating Officer of Performance Shipping Inc. (ex. Diana

Containerships Inc.). From October 2019 until February 2021, Ms. Paliou served as Deputy Chief Executive

Officer of Diana Shipping Inc. She also served as member of the Executive Committee and the Chief

Operating Officer of the Company from August 2018 until February 2021. 

Ms. Paliou obtained her BSc in Mechanical Engineering from Imperial College, London and her MSc in

Naval Architecture from University College, London. She completed courses in “Finance for Senior

Executives”, in “Authentic Leader Development” and a certificate program on “Sustainable Business

Strategy” all at Harvard Business School. Ms. Paliou is also the daughter of Simeon Palios, the Company’s

Chairman.

Simeon P. Palios

 has served as the Chairman of the Board of Directors of Diana Shipping Inc. since

February 2005 and a Director of the Company since March 1999. He served as the Company’s Chief

Executive Officer from February 2005 until February 2021. Mr. Palios also serves as the President of Diana

Shipping Services S.A. which was formed in 1986. Mr. Palios has experience in the shipping industry since

1969 and expertise in technical and operational issues. He has served as an ensign in the Greek Navy for

the inspection of passenger boats on behalf of Ministry of Merchant Marine and is qualified as a naval

architect and marine engineer. Mr. Palios was the founder of Diana Shipping Agencies S.A., where he

served as Managing Director until November 2004, having the overall responsibility for its activities. From

January 13, 2010 until February 28, 2022, Mr. Palios also served as the Chairman of the Board of Directors

of Performance Shipping Inc. (ex. Diana Containerships Inc.) and as Chief Executive Officer until October

2020.

87

Mr. Palios is a member of various leading classification societies worldwide and he is a member of the

board of directors of the United Kingdom Freight Demurrage and Defense Association Limited. Since

October 7, 2015, Mr. Palios has served as President of the Association “Friends of Biomedical Research

Foundation, Academy of Athens”. He holds a bachelor's degree in Marine Engineering from Durham

University.

Anastasios C. Margaronis

 has served as President and a Director of Diana Shipping Inc. since February

2005. He is also member of the Executive Committee of the Company. Mr. Margaronis is the Deputy

President of Diana Shipping Services S.A., where he also serves as a Director and Secretary. Mr.

Margaronis has experience in the shipping industry, including in ship finance and insurance, since 1980.

Prior to February 21, 2005, Mr. Margaronis was employed by Diana Shipping Agencies S.A. in 1979 and

performed on our behalf the services he now performs as President. He joined Diana Shipping Agencies

S.A. in 1979 and has been responsible for overseeing our vessels’ insurance matters, including hull and

machinery, protection and indemnity and war risks insurances. From January 2010 to February 2020, he

served as Director and President of Performance Shipping Inc. (ex. Diana Containerships Inc.).

In addition, Mr. Margaronis is a member of the Greek National Committee of the American Bureau of

Shipping. He has also been on the Members’ Committee of the Britannia Steam Ship Insurance Association

Limited since October 2022. From October 2005 to October 2019, he was a member of the board of

directors of the United Kingdom Mutual Steam Ship Assurance Association (Europe) Limited. 

He holds a bachelor's degree in Economics from the University of Warwick and a master's of science

degree in Maritime Law from the Wales Institute of Science and Technology.

Ioannis Zafirakis

has served

as a Director and Secretary of Diana Shipping Inc. since February 2005 and

Chief Financial Officer (Interim Chief Financial Officer until February 2021) and Treasurer since February

2020 and he is also the Chief Strategy Officer of the Company. Mr. Zafirakis is also member of the

Executive Committee of the Company. Mr. Zafirakis has held various executive positions such as Chief

Operating Officer, Executive Vice-President and Vice-President. In addition, Mr. Zafirakis is the Chief

Financial Officer of Diana Shipping Services S.A., where he also serves as Director and Treasurer. Also,

he has served as a Director of OceanPal Inc. since April 2021. He has also served as the President,

Secretary and Interim Chief Financial Officer of OceanPal Inc. from November 2021 to April 2023. He is

also member of the Executive Committee of OceanPal Inc. 

From June 1997 to February 2005, Mr. Zafirakis was employed by Diana Shipping Agencies S.A., where

he held a number of positions in finance and accounting. From January 2010 to February 2020, he also

served as Director and Secretary of Performance Shipping Inc. (ex. Diana Containerships Inc.), where he

held various executive positions such as Chief Operating Officer and Chief Strategy Officer. 

Mr. Zafirakis is a member of the Business Advisory Committee of the Shipping Programs of ALBA Graduate

Business School at The American College of Greece. In 2024, Mr. Zafirakis attended and completed the

Advanced Management Programme at INSEAD Business School in Singapore. Mr. Zafirakis has also

obtained a certificate in “Blockchain Economics: An Introduction to Cryptocurrencies” from Panteion

University of Social and Political Sciences in Greece. He holds a bachelor's degree in Business Studies

from City University Business School in London and a master's degree in International Transport from the

University of Wales in Cardiff.

Eleftherios (Lefteris) A. Papatrifon

 has served as a Director and a member of the Executive Committee

of Diana Shipping Inc. since February 2023. Prior to this appointment, he served as Chief Operating Officer

of the Company from March 2021 to February 2023. Mr. Papatrifon also serves as a Director of OceanPal

Inc. and a member of its Executive Committee, positions he has held since November 2021. From

November 2021 to January 2023, he served as Chief Executive Officer of OceanPal Inc. 

88

Prior to joining Diana Shipping Inc., he was Chief Executive Officer, Co-Founder and Director of Quintana

Shipping Ltd, a provider of dry bulk shipping services, from 2010 until the company’s successful sale of

assets and consequent liquidation in 2017. Previously, for a period of approximately six years, he served

as the Chief Financial Officer and Director of Excel Maritime Carriers Ltd. Prior to that, Mr. Papatrifon

served for approximately 15 years in a number of corporate finance and asset management positions, both

in the USA and in Greece. 

Mr. Papatrifon holds undergraduate (BBA) and graduate (MBA) degrees from Baruch College (CUNY). He

is also a member of the CFA Institute and a CFA charterholder.

Konstantinos Psaltis

 has served as a Director of Diana Shipping Inc. since March 2005, the Chairman of

its Nominating Committee since May 2015 and a member of its Compensation Committee since May 2017.

Mr. Psaltis serves also as President of Ormos Compania Naviera S.A., a company that specializes in

operating and managing multipurpose container vessels, where from 1981 to 2006, he held the position of

Managing Director. Prior to joining Ormos Compania Naviera S.A., Mr. Psaltis simultaneously served as a

technical manager in the textile manufacturing industry and as a shareholder of shipping companies

managed by M.J. Lemos. From 1961 to 1964, he served as ensign in the Royal Hellenic Navy. 

He holds a degree in Mechanical Engineering from Technische Hochschule Reutlingen & Wuppertal and

a bachelor's degree in Business Administration from Tubingen University in Germany.

Kyriacos Riris

 has served as a Director of Diana Shipping Inc. since March 2015 and a member of its

Nominating Committee since May 2015. From May 2022, he is also the Chairman of the Audit Committee

of the Company. 

Commencing in 1998, Mr. Riris served in a series of positions in PricewaterhouseCoopers (PwC), Greece,

including Senior Partner, Managing Partner of the Audit and the Advisory/Consulting Lines of Service. From

2009 to 2014, Mr. Riris served as Chairman of the Board of Directors of PricewaterhouseCoopers (PwC),

Greece. Prior to its merger with PwC, Mr. Riris was employed at Grant Thornton, Greece, where in 1984

he became a Partner. From 1976 to 1982, Mr. Riris was employed at Arthur Young, Greece. Since

November 2018, Mr. Riris has served as Chairman of Titan Cement International S.A., a Belgian

corporation, while he is currently the Vice Chairman of the Board and the Chairman of the Audit and the

Risk Committee of the Group.

Mr. Riris holds a degree from Birmingham Polytechnic (presently Birmingham City University) and

completed his professional qualifications with the Association of Certified Chartered Accountants (ACCA)

in the UK in 1975, becoming a Fellow of the Association of Certified Accountants in 1985.

Apostolos Kontoyannis

 is a Director, the Chairperson of the Compensation Committee and a member of

the Audit Committee of Diana Shipping Inc., positions he has held since March 2005. Since March 2021,

Mr. Kontoyannis also serves as the Chairperson of the Sustainability Committee of the Company. 

Mr. Kontoyannis has over 40 years of experience in shipping finance and currently serves as financial

consultant to various shipping companies. He was employed by Chase Manhattan Bank N.A. in Frankfurt

(Corporate Bank), London (Head of Shipping Finance South Western European Region) and Piraeus

(Manager, Ship Finance Group) from 1975 to 1987. 

Mr. Kontoyannis holds a bachelor's degree in Finance and Marketing and a master's degree in Business

Administration and Finance from Boston University.

Konstantinos Fotiadis

 has served as a Director of Diana Shipping Inc. since 2017. Mr. Fotiadis served

as an independent Director and as the Chairman of the Audit Committee of Performance Shipping Inc. (ex.

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Diana Containerships Inc.) from the completion of Performance Shipping Inc. (ex. Diana Containerships

Inc.)’s private offering until February 2011. From 1990 until 1994, Mr. Fotiadis served as the President and

Managing Director of Reckitt & Colman (Greece), part of the British multinational Reckitt & Colman plc,

manufacturers of household, cosmetics and health care products. From 1981 until its acquisition in 1989

by Reckitt & Colman plc, Mr. Fotiadis was a General Manager at Dr. Michalis S.A., a Greek company

manufacturing and marketing cosmetics and health care products. From 1978 until 1981, Mr. Fotiadis held

positions with Esso Chemicals Ltd. and Avrassoglou S.A. Mr. Fotiadis has also been active as a business

consultant and real estate developer.

Mr. Fotiadis holds a degree in Economics from Technische Universitaet Berlin and in Business

Administration from Freie Universitaet Berlin.

Simon Morecroft

 has served as a Director of Diana Shipping Inc. since May 2022. He also serves as a

Director of Enarxis Ltd, a shipping consultancy company. Mr. Morecroft spent his career in the shipbroking

industry as a Sale and Purchase broker. He joined Braemar Shipbrokers Ltd (now Braemar ACM

Shipbroking) in 1983 becoming a director in 1986 and remained on the board until his retirement in August

2021. During this time Braemar grew from a boutique broking operation into one of the world’s most

successful fully integrated shipbroking companies with a listing on the London Stock Exchange.

Mr. Morecroft graduated from Oxford University in 1980 with a Masters in PPE. 

Jane Chao

 has served as a Director of Diana Shipping Inc. since February 2023. She also serves as a

director of Wah Kwong Shipping Holdings Limited, a position she has held since 2008. Ms. Chao is the

managing director of Wah Kwong China Investment which includes residential and commercial properties

as well as hospitality businesses in Shanghai and Wuxi. Ms. Chao has founded her own art consultancy

company Galerie Huit and lifestyle gallery Maison Huit in 2009 and recently, the non-profit Chao-Lee Art

Foundation in 2022. 

Ms. Chao has also served as a Council Member for Changing Young Lives Foundation helping

underprivileged children in Hong Kong and China from 2014 to 2020.

Maria Dede

 is the Chief Accounting Officer of Diana Shipping Inc., a position she has held since September

2005. Since Mach 2020, she also serves as the Finance Manager and Chief Accounting Officer of Diana

Shipping Services S.A. In 2000, Ms. Dede joined the Athens branch of Arthur Andersen, which merged

with Ernst and Young (Hellas) in 2002, where she served as an external auditor of shipping companies

until 2005. From 1996 to 2000 Ms. Dede was employed by Venus Enterprises S.A., a ship-management

company, where she held a number of positions primarily in accounting and supplies.

Ms. Dede holds a Bachelor’s degree in Maritime Studies from the University of Piraeus, a Master’s degree

in Business Administration from the ALBA Graduate Business School and a Master’s degree in Auditing

and Accounting from the Greek Institute of Chartered Accountants.

Margarita Veniou

 has served as the Chief Corporate Development, Governance & Communications

Officer of Diana Shipping Inc. since July 2022. From September 2004 until June 2022, she served in the

Corporate Planning & Governance Department of Diana Shipping Inc., holding various positions as

Associate, Officer and Manager. Ms. Veniou is also the Corporate Development, Governance &

Communications Manager of Diana Shipping Services S.A., a position she has held since 2022, and from

2004 to 2022 she held various other positions at Diana Shipping Services S.A. In addition, since November

2021, Ms. Veniou has served as the Chief Corporate Development & Governance Officer of OceanPal Inc.

and she has also served as the company’s Board Secretary since April 2023. She is the General Manager

of Steamship Shipbroking Enterprises Inc., a position she has held since April 2014. 

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From January 2010 to February 2020, Ms. Veniou also held the position of Corporate Planning &

Governance Officer of Performance Shipping Inc. (ex. Diana Containerships Inc.).

Ms. Veniou holds a bachelor's degree in Maritime Studies and a master's degree in Maritime Economics

& Policy from the University of Piraeus, Greece. She completed the Sustainability Leadership and

Corporate Responsibility course at the London Business School and has obtained the Certification in

Shipping Derivatives from the Athens University of Economics and Business. Ms. Veniou is also a member

of WISTA Hellas and ISO 14001 certified by Lloyd’s Register.

Maria-Christina Tsemani

 has served as the Company’s Chief People Officer since July 2022. Ms.

Tsemani also serves as HR Manager of Diana Shipping Services S.A., a position she has held since

October 2020. 

Ms. Tsemani has over 20 years of experience in HR positions with multinational companies and institutional

bodies. Before joining Diana Shipping, Ms. Tsemani was People Acquisition and Development Manager of

Vodafone Greece. During her career in Vodafone from 2008 to 2020, she held various other positions,

including Senior HR Business Partner and Organizational Effectiveness and Reward Manager. From 2004

to 2008, Ms. Tsemani worked as a Senior HR Consultant in PricewaterhouseCoopers (PwC). From 2001

to 2004, she served as Project Manager in the European Commission, based in Luxembourg. 

Ms. Tsemani holds a bachelor’s degree in Mathematical Sciences and a master’s of science degree in

Applied Statistics from the University of Oxford, UK. 

B. Compensation

Aggregate executive compensation (including amounts paid to Steamship) for 2023 was $6.6 million. Since

June 1, 2010, Steamship, a related party, as described in "Item 7. Major Shareholders and Related Party

Transactions—B. Related Party Transactions" has provided to us brokerage services. Under the Brokerage

Services Agreements in effect during 2023, fees for 2023 amounted to $3.9 million and we also paid

commissions for vessel sales and purchases amounting to $0.9 million. We consider fees under these

agreements to be part of our executive compensation due to the affiliation with Steamship. 

Non-employee directors receive annual compensation in the amount of $52,000 plus reimbursement of

out-of-pocket expenses. In addition, each director serving as chairman of a committee receives additional

annual compensation of $26,000, plus reimbursement for out-of-pocket expenses with the exception of the

chairman of the audit and compensation committee who receive annual compensation of $40,000. Each

director serving as member of a committee receives additional annual compensation of $13,000, plus

reimbursement for out-of-pocket expenses with the exception of the member of the audit committee who

receives annual compensation of $26,000, plus reimbursement for out-of-pocket expenses. In 2023, fees

and expenses of our non-executive directors amounted to $0.5 million.

We do not have a retirement plan for our officers or directors. 

Equity Incentive Plan

In November 2014, our board of directors approved, and the Company adopted the 2014 Equity Incentive

Plan for 5,000,000 shares of common stock, amended on May 31, 2018 to increase the shares of common

stock to 13,000,000 and further amended on January 8, 2021, referred to as “the Plan”, to increase the

number of shares of common stock available for the issuance of equity awards by 20 million shares.

Currently, 11,144,759 shares remain reserved for issuance under the Plan. 

Under the Plan, the Company’s employees, officers and directors are entitled to receive options to acquire

the Company’s common stock. The Plan is administered by the Compensation Committee of the

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Company’s Board of Directors, or such other committee of the Board as may be designated by the Board.

Under the terms of the Plan, the Company’s Board of Directors is able to grant (a) non-qualified stock

options, (b) stock appreciation rights, (c) restricted stock, (d) restricted stock units, (e) unrestricted stock,

(f) other equity-based or equity-related awards, (g) dividend equivalents and (h) cash awards. No options

or stock appreciation rights can be exercisable subsequent to the tenth anniversary of the date on which

such Award was granted. Under the Plan, the Administrator may waive or modify the application of

forfeiture of awards of restricted stock and performance shares in connection with cessation of service with

the Company. No Awards may be granted under the Plan following the tenth anniversary of the date on

which the Plan was adopted by the Board (i.e., January 8, 2031).

During 2023 and as of the date of this annual report, our board of directors awarded an aggregate amount

of 1,750,000 shares and 2,300,000 shares, respectively of restricted common stock, of which 1,487,500

shares and 1,955,000 shares, respectively were awarded to senior management, and 262,500 shares and

345,000 shares, respectively, were awarded to non-employee directors. All restricted shares vest ratably

over three years, The restricted shares are subject to forfeiture until they become vested. Unless they

forfeit, grantees have the right to vote, to receive and retain all dividends paid and to exercise all other

rights, powers and privileges of a holder of shares. 

In 2023, compensation costs relating to the aggregate amount of restricted stock awards amounted to $9.9

million.

C. Board Practices

We have established an Audit Committee, comprised of two board members, which is responsible for

reviewing our accounting controls, recommending to the board of directors the engagement of our

independent auditors, and pre-approving audit and audit-related services and fees. Each member has

been determined by our board of directors to be “independent” under the rules of the NYSE and the rules

and regulations of the SEC. As directed by its written charter, the Audit Committee is responsible for

appointing, and overseeing the work of the independent auditors, including reviewing and approving their

engagement letter and all fees paid to our auditors, reviewing the adequacy and effectiveness of the

Company's accounting and internal control procedures and reading and discussing with management and

the independent auditors the annual audited financial statements. The members of the Audit Committee

are Mr. Kyriacos Riris (chairman and financial expert) and Mr. Apostolos Kontoyannis (member and

financial expert).

We have established a Compensation Committee comprised of two members, which, as directed by its

written charter, is responsible for setting the compensation of executive officers of the Company, reviewing

the Company’s incentive and equity-based compensation plans, and reviewing and approving employment

and severance agreements. The members of the Compensation Committee are Mr. Apostolos Kontoyannis

(chairman) and Mr. Konstantinos Psaltis (member).

We have established a Nominating Committee comprised of two members, which, as directed by its written

charter, is responsible for identifying, evaluating and making recommendations to the board of directors

concerning individuals for selections as director nominees for the next annual meeting of stockholders or

to otherwise fill board of director vacancies. The members of the Nominating Committee are

Mr. Konstantinos Psaltis (chairman) and Mr. Kyriacos Riris (member).

We have established a Sustainability Committee as of February 18, 2021, comprised of Ms. Semiramis

Paliou (member) and Mr. Apostolos Kontoyannis (Chairman) which, as directed by its written charter, is

responsible for Identifying, evaluating and making recommendations to the Board with respect to significant

policies and performance on matters relating to sustainability, including environmental risks and

opportunities, social responsibility and impact and the health and safety of all of our stakeholders.

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We have established an Executive Committee comprised of the four directors, Ms. Semiramis Paliou

(Chairperson), Mr. Anastasios Margaronis (member), Mr. Ioannis Zafirakis (member), and Mr. Eleftherios

Papatrifon (member). The Executive Committee has, to the extent permitted by law, the powers of the

Board of Directors in the management of the business and affairs of the Company.

We also maintain directors’ and officers’ insurance, pursuant to which we provide insurance coverage

against certain liabilities to which our directors and officers may be subject, including liability incurred under

U.S. securities law. Our executive directors have employment agreements, which, if terminated without

cause, entitle them to continue receiving their basic salary through the date of the agreement’s expiration.

Clawback Policy

In December 2023, our Board of Directors adopted a policy regarding the recovery of erroneously awarded

compensation (“Clawback Policy”) in accordance with the applicable rules of NYSE and Section 10D and

Rule 10D-1 of the Securities Exchange Act of 1934, as amended. In the event we are required to prepare

an accounting restatement due to material noncompliance with any financial reporting requirements under

U.S. securities laws or otherwise erroneous data or if we determine there has been a significant misconduct

that causes material financial, operational or reputational harm, we shall be entitled to recover a portion or

all of any incentive-based compensation, if any, provided to certain executives who, during a three-year

period preceding the date on which an accounting restatement is required, received incentive

compensation based on the erroneous financial data that exceeds the amount of incentive-based

compensation the executive would have received based on the restatement.

Our Clawback Policy shall be administered by our Compensation Committee who has the authority, in

accordance with the applicable laws, rules and regulations, to interpret and make determinations necessary

for the administration of the Clawback Policy, and may forego recovery in certain instances, including if it

determines that recovery would be impracticable. 

D. Employees

We crew our vessels primarily with Greek officers and Filipino officers and seamen and may also employ

seamen from Poland, Romania and Ukraine. DSS and DWM are responsible for identifying the appropriate

officers and seamen mainly through crewing agencies. The crewing agencies handle each seaman's

training, travel and payroll. The management companies ensure that all our seamen have the qualifications

and licenses required to comply with international regulations and shipping conventions. Additionally, our

seafaring employees perform most commissioning work and supervise work at shipyards and drydock

facilities. We typically man our vessels with more crew members than are required by the country of the

vessel's flag in order to allow for the performance of routine maintenance duties.

The following table presents the number of shoreside personnel employed by DSS and the number of

seafaring personnel employed by our vessel-owning subsidiaries as of December 31, 2023, 2022 and

2021. 

Year Ended December 31,

2023

2022

2021

Shoreside

11

2

113

111

Seafaring

906

907

708

Total

1,018

1,020

819

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E. Share Ownership

With respect to the total amount of common shares, Series B Preferred Shares, Series C Preferred Shares

and Series D Preferred Shares owned by our officers and directors, individually and as a group, see “Item

7. Major Shareholders and Related Party Transactions—A. Major Shareholders.”

F.

Disclosure of Registrant's Action to Recover Erroneously Awarded

Compensation

Not applicable.

Item 7. Major Shareholders and Related Party Transactions 

A. Major Shareholders

The following table sets forth information regarding ownership of our common stock of which we are aware

as of the date of this annual report, for (i) beneficial owners of five percent or more of our common stock

and (ii) our officers and directors, individually and as a group. All of our shareholders, including the

shareholders listed in this table, are entitled to one vote for each share of common stock held.

Title of Class

Identity of Person or Group

Number of

Shares Owned

Percent of

Class

*

Common Stock, 

Semiramis Paliou (1)

23,750,097

19.8%

par value $0.01

Anastasios Margaronis (2)

12,114,535

10.1%

Sea Trade Holdings Inc. (3)

19,165,545

16.0%

All other officers and directors as a group (4)

12,316,914

10.3%

* Based on 119,962,917 common shares outstanding as of April 1, 2024. 

(1) Mrs. Semiramis Paliou indirectly may be deemed to beneficially own 19.8% beneficially owned

through Tuscany Shipping Corp., or Tuscany, and through 4 Sweet Dreams S.A., as the result

of her ability to control the vote and disposition of such entities. The shares include 5,427,977

shares of common stock issuable to Semiramis Paliou upon exercise of 3,527,501 warrants

distributed on December 14, 2023. As of December 31, 2021, 2022 and 2023, Mrs. Semiramis

Paliou owned indirectly 17.8%, 18.9% and 20.3%, respectively, of our outstanding common

stock. Additionally, Mrs. Paliou owns, through Tuscany, 10,675 shares of Series C Preferred

Stock, par value $0.01 per share, and 400 shares of Series D Preferred Stock, par value $0.01

per share. The Series C Preferred Stock vote with our common shares and each share of the

Series C Preferred Stock entitle the holder thereof to 1,000 votes on all matters submitted to a

vote of the common stockholders of the Company. Each share of Series D Preferred Stock

shall entitle the holder thereof to two hundred thousand (200,000) votes on all matters submitted

to a vote of the stockholders of the Company, provided however, that, notwithstanding any other

provision of the Series D Preferred Stock statement of designation, to the extent that the total

number of votes one or more holders of Series D Preferred Stock is entitled to vote (including

any voting power of such holders derived from Series D Preferred Stock, shares of Common

Stock or any other voting security of the Company issued and outstanding as of the date hereof

or that may be issued in the future) on any matter submitted to a vote of stockholders of the

Company would exceed 36.0% of the total number of votes eligible to be cast on such matter,

the total number of votes that holders of Series D Preferred Stock may exercise derived from

the Series D Preferred Stock together with Common Shares and any other voting securities of

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the Company beneficially owned by such holder, shall be reduced to 36% of the total number

of votes that may be cast on such matter submitted to a vote of stockholders.

(2) Mr. Anastasios Margaronis, our President and a member of our board of directors may be

deemed to beneficially own Anamar Investments Inc. and Coronis Investments Inc. as the result

of his ability to control the vote and disposition of such entities, for an aggregate of 12,114,535

shares. These shares include 2,758,710 shares of common stock issuable to Anastasios

Margaronis upon exercise of 1,792,814 warrants distributed on December 14, 2023.

(3) This information is derived from a Schedule 13G/A filed with the SEC on February 12, 2024,

adjusting the percentage figure based on the common shares issued and outstanding as of the

date of this report. The shares include 4,422,817 shares of common stock issuable to Sea Trade

Holdings Inc. upon the exercise of 2,948,545 warrants distributed on December 14, 2023.

(4) Ms. Semiramis Paliou and Mr. Anastasios Margaronis are our only directors or officers that

beneficially own 5% or more of our outstanding common stock. Mr. Ioannis Zafirakis may be

deemed to beneficially own 3,089,992 shares, or 2.6% of our outstanding common stock,

beneficially owned through Abra Marinvest Inc.; and Mr. Simeon Palios may be deemed to

beneficially own 5,017,536 shares, or 4.2% of our outstanding common stock, beneficially

owned through Taracan Investments S.A. and Limon Compania Financiera S.A. All other

officers and directors each own less than 1% of our outstanding common stock. 

As of April 1, 2024, we had 83 shareholders of record, 65 of which were located in the United States and

held an aggregate of 105,578,632 of our common shares, representing 88.01% of our outstanding common

shares. However, one of the U.S. shareholders of record is CEDE & CO., a nominee of The Depository

Trust Company, which held 104,663,529 of our common shares as of that date. Accordingly, we believe

that the shares held by CEDE & CO. include common shares beneficially owned by both holders in the

United States and non-U.S. beneficial owners. We are not aware of any arrangements the operation of

which may at a subsequent date result in our change of control.

Holders of the Series B Preferred Shares generally have no voting rights except (1) in respect of

amendments to the Articles of Incorporation which would adversely alter the preferences, powers or rights

of the Series B Preferred Shares or (2) in the event that we propose to issue any parity stock if the

cumulative dividends payable on outstanding Preferred Stock are in arrears or any senior stock. However,

if and whenever dividends payable on the Series B Preferred Shares are in arrears for six or more quarterly

periods, whether or not consecutive, holders of Series B Preferred Shares (voting together as a class with

all other classes or series of parity stock upon which like voting rights have been conferred and are

exercisable) will be entitled to elect one additional director to serve on our board of directors until such time

as all accumulated and unpaid dividends on the Series B Preferred Shares have been paid in full.

B. Related Party Transactions

OceanPal Inc., or OceanPal

Since November 2021, we own 500,000 of OceanPal’s Series B Preferred Shares. As of October 17, 2023

we own 207 shares of OceanPal’s Series C Convertible Preferred Shares issued to us in the OceanPal

spin-off. Series B Preferred Shares entitle the holder to 2,000 votes on all matters submitted to vote of the

stockholders of the Company, provided however, that the total number of votes shall not exceed 34% of

the total number of votes, provided further, that the total number of votes entitled to vote, including common

stock or any other voting security, would not exceed 49% of the total number of votes. 

Series C Preferred Shares do not have voting rights unless related to amendments of the Articles of

Incorporation that adversely alter the preference, powers or rights of the Series C Preferred Shares or to

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issue Parity Stock or create or issue Senior Stock. Series C Preferred Shares have become convertible

into common stock at the Company’s option since the first anniversary of the issue date, at a conversion

price equal to the lesser of $6.5 and the 10-trading day trailing VWAP of OceanPal’s common shares,

subject to adjustments. Additionally, Series C Preferred Shares have a cumulative preferred dividend

accruing at the rate of 8% per annum, payable in cash or, at OceanPal’s election, in kind and has a

liquidation preference equal to the stated value of $10,000. 

On September 20, 2022, we acquired 25,000 Series D Preferred Shares, par value $0.01 per share, as

part of the consideration provided to us for the acquisition of

Baltimore

, which was sold to OceanPal,

pursuant to a Memorandum of Agreement dated June 13, 2022, for $22.0 million. On December 15, 2022,

we distributed the Series D Preferred Shares as non-cash dividend to our shareholders of record on

November 28, 2022. 

On February 8, 2023, we acquired 13,157 of OceanPal’s Series D Preferred Shares as part of the

consideration provided to us for the acquisition of

Melia

, which was sold to OceanPal, pursuant to a

Memorandum of Agreement dated February 1, 2023, for $14.0 million. On June 9, 2023, we distributed the

Series D Preferred Shares as a non-cash dividend to our shareholders of record on April 24, 2023.

Dividend income from the OceanPal preferred shares during 2023 amounted to $0.8 million.

OceanPal Inc. Non-Competition Agreement

We have entered into a non-competition agreement with OceanPal Inc. ("OceanPal"), dated November 2,

2021, pursuant to which we granted to OceanPal (i) a right of first refusal over any opportunity available to

us (or any of our subsidiaries) to acquire or charter-in any dry bulk vessel that is larger than 70,000

deadweight tons and that was built prior to 2006 and (ii) a right of first refusal over any employment

opportunity for a dry bulk vessel pursuant to a spot market charter presented or available to us with respect

to any vessel owned or chartered in, directly or indirectly, by us. The non-competition agreement also

prohibits us and OceanPal from soliciting each other's employees. The terms of the non-competition

agreement provide that it will terminate on the date that (i) our ownership of OceanPal’s equity securities

represents less than 10% of total outstanding voting power and (ii) we and OceanPal share no common

executive officers.

OceanPal Inc. Right of First Refusal

On November 2, 2021 we entered into a right of first refusal agreement with OceanPal Inc. pursuant to

which we granted OceanPal Inc. a right of first refusal over six drybulk carriers owned by us, as of the date

of the agreement, and identified in the agreement. Pursuant to this right of first refusal, OceanPal Inc. has

the right, but not the obligation, to purchase one or all of the six identified vessels from us when and if we

make a determination to sell one or more of the vessels at a price equal to the fair market value of each

vessel at the time of sale, as determined by the average of two independent shipbroker valuations from

brokers mutually agreeable to us and OceanPal Inc. If OceanPal Inc. does not exercise its right to purchase

a vessel, we have the right to sell the vessel to any third party for a period of three months from the date

notified OceanPal Inc. of our intent to sell the vessel. As of the date of the annual report, OceanPal has

acquired two of the six vessels and three vessels were sold to third parties.

Series D Preferred Stock

In June 2021, we issued 400 shares of its newly-designated Series D Preferred Stock, par value $0.01 per

share, to Tuscany Shipping Corp., an entity controlled by its Chief Executive Officer, Mrs. Semiramis

Paliou, for an aggregate purchase price of $360,000. The Series D Preferred Stock has no dividend or

liquidation rights. Each share of Series D Preferred Stock shall entitle the holder thereof to two hundred

thousand (200,000) votes on all matters submitted to a vote of the stockholders of the Company, provided

96

however, that, notwithstanding any other provision of Series D Preferred Stock statement of designation,

to the extent that the total number of votes one or more holders of Series D Preferred Stock is entitled to

vote (including any voting power of such holders derived from Series D Preferred Stock, shares of Common

Stock or any other voting security of the Company issued and outstanding as of the date hereof or that

may be issued in the future) on any matter submitted to a vote of stockholders of the Company would

exceed 36.0% of the total number of votes eligible to be cast on such matter, the total number of votes that

holders of Series D Preferred Stock may exercise derived from the Series D Preferred Stock together with

Common Shares and any other voting securities of the Company beneficially owned by such holder, shall

be reduced to 36% of the total number of votes that may be cast on such matter submitted to a vote of

stockholders. The Series D Preferred Stock is transferable only to the holder’s immediate family members

and to affiliated persons. The issuance of shares of Series D Preferred Stock to Tuscany Shipping Corp.

was approved by an independent committee of the Board of Directors of the Company, which received a

fairness opinion from an independent third party that the transaction was fair from a financial point of view

to the Company.

Series C Preferred Stock

In January 2019, we issued 10,675 shares of newly-designated Series C Preferred Stock, par value $0.01

per share, to an affiliate of our Chairman, Mr. Simeon Palios. In September 2020, the Series C Preferred

Shares were transferred from an affiliate of Mr. Simeon Palios to an affiliate of the Company’s Chief

Executive Officer, Mrs. Semiramis Paliou. The Series C Preferred Stock vote with the common shares of

the Company, and each share entitles the holder thereof to 1,000 votes on all matters submitted to a vote

of the stockholders of the Company. The Series C Preferred Stock has no dividend or liquidation rights and

cannot be transferred without the consent of the Company except to the holder’s affiliates and immediate

family members. The issuance of shares of Series C Preferred Stock was approved by an independent

committee of the Board of Directors, which received a fairness opinion from an independent third party that

the transaction was fair from a financial point of view to the Issuer. 

Steamship Shipbroking Enterprises Inc.

Steamship, an affiliated entity that was controlled by our Chairman of the Board, Mr. Simeon Palios until

January 15, 2023 and our CEO Ms. Semiramis Paliou thereafter, provides to us brokerage services for an

annual fee pursuant to a Brokerage Services Agreement. In 2023, brokerage fees amounted to $3.9 million

and we paid an additional amount of $0.9 million for commissions on the sale and purchases of vessels.

The terms of this relationship are currently governed by a Brokerage Services Agreement dated February

23, 2024 due to expire on December 31, 2024.

Altair Travel Agency S.A.

Altair Travel Agency S.A., or Altair, an affiliated entity that is controlled by our Chairman of the Board,

Mr. Simeon Palios and CEO Ms. Semiramis Paliou provides us with travel related services. Travel related

expenses in 2023, amounted to $2.5 million. 

Diana Wilhelmsen Management Limited

Diana Wilhelmsen Management Limited, or DWM, is a 50/50 joint venture which provides management

services to certain vessels in our fleet for a fixed monthly fee and commercial services charged as a

percentage of the vessels’ gross revenues. Management fees in 2023 amounted to $1.3 million,

commissions on revenues amounted to $0.4 million.

Bergen Ultra

Bergen Ultra, or Bergen, is a limited partnership which owns a dry bulk carrier. One of our subsidiaries,

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Diana General Partner Inc., owns 3% of the partnership and acts as the General Partner and another

subsidiary, Komi Shipping Company Inc., owns 22% of the partnership. The remaining partnership interests

are owned by unaffiliated parties. On March 30, 2023, we entered into a corporate guarantee with Nordea

to secure Bergen’s obligations under a $15.4 million loan facility. We have also entered into an

administrative service agreement under which DSS provides administrative services to Bergen for an

annual fee of $15 and a commission agreement under which the Company is paid a commission of 0.8%

per annum, on the outstanding balance of the loan, as compensation for the guarantee it provided to

Nordea. During 2023, income from administrative fees amounted to $10,192 and we received $61,267 as

payment for the guarantee commission.

Real Estate Acquisition

In July 2023 we purchased the remaining 1/3 interest in a parcel of land that the Company did not already

own from Alpha Sigma Shipping Corp, a related party company, for the purchase price of $1.2 million and

became the sole owner of the parcel. Please see Item 4.(D), Property, plants and equipment.

C. Interests of Experts and Counsel 

Not Applicable.

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Item 8. Financial information

A. Consolidated statements and other financial information

See “Item 18. Financial Statements.”

Legal Proceedings

We have not been involved in any legal proceedings which may have, or have had, a significant effect on

our business, financial position, results of operations or liquidity, nor are we aware of any proceedings that

are pending or threatened which may have a significant effect on our business, financial position, results

of operations or liquidity. From time to time, we may be subject to legal proceedings and claims in the

ordinary course of business, principally personal injury and property casualty claims. We expect that these

claims would be covered by insurance, subject to customary deductibles. Those claims, even if lacking

merit, could result in the expenditure of significant financial and managerial resources. 

Dividend Policy

Our board of directors reviews and amends our dividend policy from time to time in light of our business

plans and other factors. In order to position us to take advantage of market opportunities in a then-

deteriorating market, our board of directors, beginning with the fourth quarter of 2008, suspended our

common stock dividend. As a result of improving market conditions in 2021, our board of directors elected

to declare quarterly dividends with respect to the third quarter of 2021 and for each quarter thereafter, until

the first quarter of 2024 and two special noncash dividends, as described in Item 4A. History and

development of the Company. 

The declaration and payment of dividends will always be subject to the discretion of our board of directors.

The timing and amount of any dividends declared will depend on, among other things, our earnings,

financial condition and cash requirements and availability, our ability to obtain debt and equity financing on

acceptable terms as contemplated by our growth strategy and provisions of Marshall Islands law affecting

the payment of dividends. In addition, other external factors, such as our lenders imposing restrictions on

our ability to pay dividends under the terms of our loan facilities, may limit our ability to pay

dividends. Further, under the terms of our loan agreements, we may not be permitted to pay dividends

that would result in an event of default or if an event of default has occurred and is continuing.

Marshall Islands law generally prohibits the payment of dividends other than from surplus or when a

company is insolvent or if the payment of the dividend would render the company insolvent. Also, our loan

facilities and Bond prohibit the payment of dividends should an event of default arise. 

We believe that, under current law, any dividends that we have paid and may pay in the future from earnings

and profits constitute “qualified dividend income” and as such are generally subject to a 20% United States

federal income tax rate with respect to non-corporate United States shareholders. Distributions in excess

of our earnings and profits will be treated first as a non-taxable return of capital to the extent of a United

States shareholder’s tax basis in its common stock on a dollar-for-dollar basis and thereafter as capital

gain. Please see the section of this annual report entitled “Taxation” under Item 10.E for additional

information relating to the tax treatment of our dividend payments.

Cumulative dividends on our Series B Preferred Shares are payable on each January 15, April 15, July 15

and October 15, when, as and if declared by our board of directors or any authorized committee thereof

out of legally available funds for such purpose. The dividend rate for our Series B Preferred Shares is

8.875% per annum per $25.00 of liquidation preference per share (equal to $2.21875 per annum per share)

and is not subject to adjustment. Since February 14, 2019, we may redeem, in whole or from time to time

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in part, the Series B Preferred Shares at a redemption price of $25.00 per share plus an amount equal to

all accumulated and unpaid dividends thereon to the date of redemption, whether or not declared.

Marshall Islands law provides that we may pay dividends on and redeem the Series B Preferred Shares

only to the extent that assets are legally available for such purposes. Legally available assets generally are

limited to our surplus, which essentially represents our retained earnings and the excess of consideration

received by us for the sale of shares above the par value of the shares. In addition, under Marshall Islands

law we may not pay dividends on or redeem Series B Preferred Shares if we are insolvent or would be

rendered insolvent by the payment of such a dividend or the making of such redemption.

B. Significant Changes

There have been no significant changes since the date of the annual consolidated financial statements

included in this annual report, other than those described in Note 17 “Subsequent events” of our annual

consolidated financial statements.

Item 9. The Offer and Listing

A. Offer and Listing Details

The trading market for shares of our common stock is the NYSE, on which our shares trade under the

symbol “DSX”. 

Our Series B Preferred Stock has traded on the NYSE under the symbol “DSXPRB” since February 21,

2014. 

Our Warrants to Purchase Common Stock, expiring on or about December 14, 2026, have traded on the

NYSE under the symbol “DSX WS” since December 14, 2023.

B. Plan of distribution

Not Applicable.

C. Markets

Our common shares have traded on the NYSE since March 23, 2005 under the symbol “DSX,” our Series

B Preferred Stock has traded on the NYSE under the symbol "DSXPRB" since February 21, 2014 and our

Warrants have traded on the NYSE under the symbol “DSX WS” since December 14, 2023. Since February

1, 2022, our 8.375% Senior Unsecured Bond due 2026 commenced trading on the Oslo Stock Exchange,

under the symbol "DIASH02."

D. Selling Shareholders

Not Applicable.

E. Dilution

Not Applicable.

F.

Expenses of the Issue

Not Applicable.

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Item 10. Additional Information

A. Share capital

Not Applicable.

B. Memorandum and articles of association

Our current amended and restated articles of incorporation are filed as exhibit 1.1 hereto, and our current

amended and restated bylaws are filed as exhibit 1.2 hereto. The information contained in these exhibits

is incorporated by reference herein.

Information regarding the rights, preferences and restrictions attaching to each class of our shares is

described in Exhibit 2.8 to this annual report titled “Description of Securities Registered Pursuant to

Section 12 of the Securities Exchange Act of 1934.” 

Stockholders Rights Agreement

On February 2, 2024, we entered into an Amended and Restated Stockholders Rights Agreement with

Computershare Trust Company, N.A., as Rights Agent, to amend and restate the Stockholders Rights

Agreement, dated January 15, 2016.

Under the Amended and Restated Stockholders Rights Agreement, we declared a dividend payable of one

preferred stock purchase right, or Right, for each share of common stock outstanding at the close of

business on January 26, 2016. Each Right entitles the registered holder to purchase from us one one-

thousandth of a share of Series A participating preferred stock, par value $0.01 per share, at an exercise

price of $25.00 per share. The Rights will separate from the common stock and become exercisable only

if a person or group acquires beneficial ownership of 15% or more of our common stock (including through

entry into certain derivative positions) in a transaction not approved by our Board of Directors. In that

situation, each holder of a Right (other than the acquiring person, whose Rights will become void and will

not be exercisable) will have the right to purchase, upon payment of the exercise price, a number of shares

of our common stock having a then-current market value equal to twice the exercise price. In addition, if

the Company is acquired in a merger or other business combination after an acquiring person acquires

15% or more of our common stock, each holder of the Right will thereafter have the right to purchase, upon

payment of the exercise price, a number of shares of common stock of the acquiring person having a then-

current market value equal to twice the exercise price. The acquiring person will not be entitled to exercise

these Rights. Under the Amended and Restated Stockholders Rights Agreement's terms, it will expire on

February 1, 2034. A copy of the Amended and Restated Stockholders Rights Agreement and a summary

of its terms are contained in the Form 8-A12B filed with the SEC on January 15, 2016, with file number

001-32458, as amended on February 2, 2024.

C. Material contracts

Attached as exhibits to this annual report are the contracts we consider to be both material and not entered

into in the ordinary course of business, which (i) are to be performed in whole or in part on or after the filing

date of this annual report or (ii) were entered into not more than two years before the filing date of this

annual report. Other than these agreements, we have no material contracts, other than contracts entered

into in the ordinary course of business, to which the Company or any member of the group is a party. A

description of these is included in our description of our agreements generally: we refer you to Item 5.B for

a discussion of our loan facilities.

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D. Exchange Controls

Under Marshall Islands, Panamanian, Cypriot and Greek law, there are currently no restrictions on the

export or import of capital, including foreign exchange controls or restrictions that affect the remittance of

dividends, interest or other payments to non-resident holders of our securities.

E. Taxation

In the opinion of Seward & Kissel LLP, the following is a discussion of the material Marshall Islands and

U.S. federal income tax considerations of the ownership and disposition by a U.S. Holder and a Non-

U.S. Holder, each as defined below, of the common stock. This discussion does not purport to deal with

the tax consequences of owning common stock to all categories of investors, some of which, such as

dealers in securities or commodities, financial institutions, insurance companies, tax-exempt organizations,

U.S. expatriates, persons liable for the alternative minimum tax, persons who hold common stock as part

of a straddle, hedge, conversion transaction or integrated investment, U.S. Holders whose functional

currency is not the United States dollar, persons required to recognize income for U.S. federal income tax

purposes no later than when such income is reported on an “applicable financial statement,” investors

subject to the “base erosion and anti-avoidance” tax and investors that own, actually or under applicable

constructive ownership rules, 10% or more of the Company’s common stock, may be subject to special

rules. This discussion deals only with holders who hold the common stock as a capital asset. You are

encouraged to consult your own tax advisors concerning the overall tax consequences arising in your own

particular situation under U.S. federal, state, local or foreign law of the ownership of common stock.

Marshall Islands Tax Considerations

The Company is incorporated in the Marshall Islands. Under current Marshall Islands law, the company is

not subject to tax on income or capital gains, and no Marshall Islands withholding tax will be imposed upon

payments of dividends by us to our shareholders. 

United States Federal Income Taxation

The following discussion is based upon the provisions of the U.S. Internal Revenue Code of 1986, as

amended (the “Code”), existing and proposed U.S. Treasury Department regulations, (the “Treasury

Regulations”), administrative rulings, pronouncements and judicial decisions, all as of the date of this

Annual Report. This discussion assumes that we do not have an office or other fixed place of business in

the United States. Unless the context otherwise requires, the reference to Company below shall be meant

to refer to both the Company and its vessel-owning and operating subsidiaries.

Taxation of the Company’s Shipping Income

In General

The Company anticipates that it will derive substantially all of its gross income from the use and operation

of vessels in international commerce and that this income will principally consist of freights from the

transportation of cargoes, hire or lease from time or voyage charters and the performance of services

directly related thereto, which the Company refers to as “Shipping Income.” 

Shipping Income that is attributable to transportation that begins or ends, but that does not both begin and

end, in the United States will be considered to be 50% derived from sources within the United States.

Shipping Income attributable to transportation that both begins and ends in the United States will be

considered to be 100% derived from sources within the United States. The Company is not permitted by

law to engage in transportation that gives rise to 100% U.S. source Shipping Income. Shipping Income

attributable to transportation exclusively between non-U.S. ports will be considered to be 100% derived

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from sources outside the United States. Shipping Income derived from sources outside the United States

will not be subject to U.S. federal income tax.

Based upon the Company’s anticipated shipping operations, the Company’s vessels will operate in various

parts of the world, including to or from U.S. ports. Unless exempt from U.S. federal income taxation under

Section 883 of the Code, the Company will be subject to U.S. federal income taxation, in the manner

discussed below, to the extent its Shipping Income is considered derived from sources within the United

States.

In the year ended December 31, 2023, approximately 2.4% of the Company’s shipping income was

attributable to the transportation of cargoes either to or from a U.S. port. Accordingly, approximately 1.2%

of the Company’s shipping income would be treated as derived from U.S. sources for the year ended

December 31, 2023. In the absence of exemption from U.S. federal income tax under Section 883 of the

Code, the Company would have been subject to a 4% tax on its gross U.S. source Shipping Income, equal

to $0.1 for the year ended December 31, 2023.

Application of Exemption under Section 883 of the Code

Under the relevant provisions of Section 883 of the Code and the final Treasury Regulations promulgated

thereunder, a foreign corporation will be exempt from U.S. federal income taxation on its U.S. source

Shipping Income if:

(1) It is organized in a qualified foreign country which, as defined, is one that grants an equivalent

exemption from tax to corporations organized in the United States in respect of the Shipping

Income for which exemption is being claimed under Section 883 of the Code, or the “Country of

Organization Requirement”; and

(2) It can satisfy any one of the following two stock ownership requirements:

• more than 50% of its stock, in terms of value, is beneficially owned by qualified

shareholders which, as defined, includes individuals who are residents of a qualified

foreign country, or the “50% Ownership Test”; or

• its stock is “primarily and regularly” traded on an established securities market located

in the United States or a qualified foreign country, or the “Publicly Traded Test”.

The U.S. Treasury Department has recognized the Marshall Islands, Panama and Cyprus the countries of

incorporation of each of the Company and its subsidiaries that earns Shipping Income, as a qualified foreign

country. Accordingly, the Company and each of the subsidiaries satisfy the Country of Organization

Requirement. 

For the 2023 taxable year, the Company believes that it is unlikely that the 50% Ownership Test was

satisfied. Therefore, the eligibility of the Company and each subsidiary to qualify for exemption under

Section 883 of the Code is wholly dependent upon the Company’s ability to satisfy the Publicly Traded

Test. 

Under the Treasury Regulations, stock of a foreign corporation is considered “primarily traded” on an

established securities market in a country if the number of shares of each class of stock that is traded

during the taxable year on all established securities markets in that country exceeds the number of shares

in each such class that is traded during that year on established securities markets in any other single

country. The Company’s common stock was “primarily traded” on the NYSE during the 2023 taxable year.

Under the Treasury Regulations, the Company’s common stock will be considered to be “regularly traded”

on the NYSE if: (1) more than 50% of its common stock, by voting power and total value, is listed on the

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NYSE, referred to as the “Listing Threshold”, (2) its common stock is traded on the NYSE, other than in

minimal quantities, on at least 60 days during the taxable year (or one-sixth of the days during a short

taxable year), which is referred to as the “Trading Frequency Test”; and (3) the aggregate number of shares

of its common stock traded on the NYSE during the taxable year is at least 10% of the average number of

shares of its common stock outstanding during such taxable year (as appropriately adjusted in the case of

a short taxable year), which is referred to as the “Trading Volume Test”. The Trading Frequency Test and

Trading Volume Test are deemed to be satisfied under the Treasury Regulations if the Company’s common

stock is regularly quoted by dealers making a market in the common stock.

The Company believes that its common stock has satisfied the Listing Threshold, as well as the Trading

Frequency Test and Trading Volume Tests, during the 2023 taxable year.

Notwithstanding the foregoing, the Treasury Regulations provide, in pertinent part, that stock of a foreign

corporation will not be considered to be “regularly traded” on an established securities market for any

taxable year during which 50% or more of such stock is owned, actually or constructively under specified

stock attribution rules, on more than half the days during the taxable year by persons, or “5%

Shareholders”, who each own 5% or more of the value of such stock, or the “5% Override Rule.” For

purposes of determining the persons who are 5% Shareholders, a foreign corporation may rely on

Schedules 13D and 13G filings with the SEC.

Based on Schedules 13D and 13G filings, during the 2023 taxable year, less than 50% of the Company’s

common stock was owned by 5% Shareholders. Therefore, the Company believes that it is not subject to

the 5% Override Rule and thus has satisfied the Publicly Traded Test for the 2023 taxable year. However,

there can be no assurance that the Company will continue to satisfy the Publicly Traded Test in future

taxable years. For example, the Company could be subject to the 5% Override Rule if another 5%

Shareholder in combination with the Company’s existing 5% Shareholders were to own 50% or more of

the Company’s common stock. In such a case, the Company would be subject to the 5% Override Rule

unless it could establish that, among the shares of the common stock owned by the 5% Shareholders,

sufficient shares are owned by qualified shareholders, for purposes of Section 883 of the Code, to preclude

non-qualified shareholders from owning 50% or more of the Company’s common stock for more than half

the number of days during the taxable year. The requirements of establishing this exception to the 5%

Override Rule are onerous and there is no assurance the Company will be able to satisfy them.

Based on the foregoing, the Company believes that it satisfied the Publicly Traded Test and therefore

believes that it was exempt from U.S. federal income tax under Section 883 of the Code, during the 2023

taxable year and intends to take this position on its 2023 U.S. federal income tax returns.

Taxation in Absence of Exemption Under Section 883 of the Code

To the extent the benefits of Section 883 of the Code are unavailable with respect to any item of U.S.

source Shipping Income, the Company and each of its subsidiaries would be subject to a 4% tax imposed

on such income by Section 887 of the Code on a gross basis, without the benefit of deductions, which is

referred to as the “4% Gross Basis Tax Regime”. Since under the sourcing rules described above, no more

than 50% of the Company’s Shipping Income would be treated as being derived from U.S. sources, the

maximum effective rate of U.S. federal income tax on the Company’s Shipping Income would never exceed

2% under the 4% Gross Basis Tax Regime.

Based on its U.S. source Shipping Income for the 2023 taxable year and in the absence of exemption

under Section 883 of the Code, the Company would be subject to $0.1 of U.S. federal income tax under

the 4% Gross Basis Tax Regime.

The 4% Gross Basis Tax Regime would not apply to U.S. source Shipping Income to the extent considered

to be “effectively connected” with the conduct of a U.S. trade or business. In the absence of exemption

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under Section 883 of the Code, such “effectively connected” U.S. source Shipping Income, net of applicable

deductions, would be subject to U.S. federal income tax currently imposed at a rate of 21%. In addition,

earnings “effectively connected” with the conduct of such U.S. trade or business, as determined after

allowance for certain adjustments, and certain interest paid or deemed paid attributable to the conduct of

the U.S. trade or business may be subject to U.S. federal branch profits tax imposed at a rate of 30%. The

Company’s U.S. source Shipping Income would be considered “effectively connected” with the conduct of

a U.S. trade or business only if: (1) the Company has, or is considered to have, a fixed place or business

in the United States involved in the earning of Shipping Income; and (2) substantially all of the Company’s

U.S. source Shipping Income is attributable to regularly scheduled transportation, such as the operation of

a vessel that followed a published schedule with repeated sailings at regular intervals between the same

points for voyages that begin or end in the United States, or, in the case of income from the chartering of

a vessel, is attributable to a fixed place of business in the United States. We do not intend to have, or

permit circumstances that would result in having a vessel operating to the United States on a regularly

scheduled basis. Based on the foregoing and on the expected mode of our shipping operations and other

activities, we believe that none of our U.S. source Shipping Income will be effectively connected with the

conduct of a U.S. trade or business.

Gain on Sale of Vessels

Regardless of whether we qualify for exemption under Section 883 of the Code, we will not be subject to

U.S. federal income taxation with respect to gain realized on a sale of a vessel, provided the sale is

considered to occur outside of the United States under U.S. federal income tax principles. In general, a

sale of a vessel will be considered to occur outside of the United States for this purpose if title to the vessel,

and risk of loss with respect to the vessel, pass to the buyer outside of the United States. It is expected

that any sale of a vessel by us will be considered to occur outside of the United States.

United States Taxation of U.S. Holders

The following is a discussion of the material U.S. federal income tax considerations relevant to an

investment decision by a U.S. Holder, as defined below, with respect to our common stock. This discussion

does not purport to deal with the tax consequences of owning our common stock to all categories of

investors, some of which may be subject to special rules. You are encouraged to consult your own tax

advisors concerning the overall tax consequences arising in your own particular situation under U.S.

federal, state, local or foreign law of the ownership of our common stock.

As used herein, the term “U.S. Holder” means a beneficial owner of our common stock that (i) is a U.S.

citizen or resident, a U.S. corporation or other U.S. entity taxable as a corporation, an estate, the income

of which is subject to U.S. federal income taxation regardless of its source, or a trust if (a) a court within

the United States is able to exercise primary jurisdiction over the administration of the trust and one or

more U.S. persons have the authority to control all substantial decisions of the trust or (b) it has an election

in place to be treated as a United States person; and (ii) owns the common stock as a capital asset,

generally, for investment purposes.

If a partnership holds our common stock, the tax treatment of a partner will generally depend upon the

status of the partner and upon the activities of the partnership. If you are a partner in a partnership holding

our common stock, you are encouraged to consult your own tax advisor on this issue.

Distributions

Subject to the discussion of passive foreign investment companies below, any distributions made by the

Company with respect to its common stock to a U.S. Holder will generally constitute dividends, which may

be taxable as ordinary income or “qualified dividend income” as described in more detail below, to the

extent of the Company’s current or accumulated earnings and profits, as determined under U.S. federal

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income tax principles. Distributions in excess of the Company’s earnings and profits will be treated first as

a non-taxable return of capital to the extent of the U.S. Holder’s tax basis in his common stock on a dollar-

for-dollar basis and thereafter as capital gain. Because the Company is not a U.S. corporation, U.S. Holders

that are corporations will generally not be entitled to claim a dividends-received deduction with respect to

any distributions they receive from the Company.

Dividends paid to a U.S. Holder which is an individual, trust, or estate, referred to herein as a “U.S. Non-

Corporate Holder,” will generally be treated as “qualified dividend income” that is taxable to Holders at

preferential U.S. federal income tax rates, provided that (1) the common stock is readily tradable on an

established securities market in the United States (such as the NYSE on which the common stock is listed);

(2) the Company is not a PFIC for the taxable year during which the dividend is paid or the immediately

preceding taxable year (which the Company does not believe it is, has been or will be); (3) the U.S. Non-

Corporate Holder has owned the common stock for more than 60 days in the 121-day period beginning

60 days before the date on which the common stock becomes ex-dividend; and (4) the U.S. Non-Corporate

Holder is not under an obligation (whether pursuant to a short sale or otherwise) to make payments with

respect to positions in substantially similar or related property. There is no assurance that any dividends

paid on our common stock will be eligible for these preferential rates in the hands of a U.S. Non-Corporate

Holder. Any dividends paid by the Company which are not eligible for these preferential rates will be taxed

as ordinary income to a U.S. Non-Corporate Holder. Special rules may apply to any “extraordinary

dividend,” generally, a dividend paid by us in an amount which is equal to or in excess of ten percent of a

U.S. Holder’s adjusted tax basis, or fair market value in certain circumstances, in a share of our common

stock. If we pay an “extraordinary dividend” on our common stock that is treated as “qualified dividend

income,” then any loss derived by a U.S. Individual Holder from the sale or exchange of such common

stock will be treated as long-term capital loss to the extent of such dividend.

Sale, Exchange or other Disposition of Common Stock

Subject to the discussion of the PFIC rules below, a U.S. Holder generally will recognize taxable gain or

loss upon a sale, exchange or other disposition of the Company’s common stock in an amount equal to

the difference between the amount realized by the U.S. Holder from such sale, exchange or other

disposition and the U.S. Holder’s tax basis in such stock. Such gain or loss will be treated as long-term

capital gain or loss if the U.S. Holder’s holding period in the common stock is greater than one year at the

time of the sale, exchange or other disposition. Long-term capital gain of a U.S. Non-Corporate Holder is

taxable at preferential U.S. Federal income tax rates. A U.S. Holder’s ability to deduct capital losses is

subject to certain limitations.

PFIC Status and Significant Tax Consequences

Special U.S. federal income tax rules apply to a U.S. Holder that holds stock in a foreign corporation

classified as a passive foreign investment company, or a “PFIC”, for U.S. federal income tax purposes. In

general, the Company will be treated as a PFIC with respect to a U.S. Holder if, for any taxable year in

which such Holder held the Company’s common stock, either:

• at least 75% of the Company’s gross income for such taxable year consists of passive

income (e.g., dividends, interest, capital gains and rents derived other than in the

active conduct of a rental business), or

• at least 50% of the average value of the assets held by the corporation during such

taxable year produce, or are held for the production of, such passive income.

For purposes of determining whether the Company is a PFIC, the Company will be treated as earning and

owning its proportionate share of the income and assets, respectively, of any of its subsidiary corporations

in which it owns at least 25% of the value of the subsidiary’s stock. Income earned, or deemed earned, by

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the Company in connection with the performance of services would not constitute passive income. By

contrast, rental income would generally constitute passive income unless the Company is treated under

specific rules as deriving its rental income in the active conduct of a trade or business.

Based on the Company’s current operations and future projections, the Company does not believe that it

is, nor does it expect to become, a PFIC with respect to any taxable year. Although there is no legal

authority directly on point, the Company’s belief is based principally on the position that, for purposes of

determining whether the Company is a PFIC, the gross income the Company derives or is deemed to

derive from the time chartering and voyage chartering activities of its wholly-owned subsidiaries should

constitute services income, rather than rental income. Correspondingly, the Company believes that such

income does not constitute passive income, and the assets that the Company or its wholly-owned

subsidiaries own and operate in connection with the production of such income, in particular, the vessels,

do not constitute assets that produce or are held for the production of passive income for purposes of

determining whether the Company is a PFIC. The Company believes there is substantial legal authority

supporting its position consisting of case law and Internal Revenue Service, or the “IRS”, pronouncements

concerning the characterization of income derived from time charters and voyage charters as services

income for other tax purposes. However, there is also authority which characterizes time charter income

as rental income rather than services income for other tax purposes. It should be noted that in the absence

of any legal authority specifically relating to the statutory provisions governing PFICs, the IRS or a court

could disagree with this position. In addition, although the Company intends to conduct its affairs in a

manner to avoid being classified as a PFIC with respect to any taxable year, there can be no assurance

that the nature of its operations will not change in the future.

As discussed more fully below, if the Company were to be treated as a PFIC for any taxable year, a U.S.

Holder would be subject to different U.S. federal income taxation rules depending on whether the U.S.

Holder makes an election to treat the Company as a “Qualified Electing Fund,” which election is referred

to as a “QEF Election.” As discussed below, as an alternative to making a QEF Election, a U.S. Holder

should be able to make a “mark-to-market” election with respect to the common stock, which election is

referred to as a “Mark-to-Market Election”. If the Company were to be treated as a PFIC, a U.S. Holder

would be required to file with respect to taxable years ending on or after December 31, 2013 IRS Form

8621 to report certain information regarding the Company.

Taxation of U.S. Holders Making a Timely QEF Election

If a U.S. Holder makes a timely QEF Election, which U.S. Holder is referred to as an “Electing Holder”, the

Electing Holder must report each year for U.S. federal income tax purposes his pro rata share of the

Company’s ordinary earnings and net capital gain, if any, for the Company’s taxable year that ends with or

within the taxable year of the Electing Holder, regardless of whether or not distributions were received by

the Electing Holder from the Company. The Electing Holder’s adjusted tax basis in the common stock will

be increased to reflect amounts included in the Electing Holder’s income. Distributions received by an

Electing Holder that had been previously taxed will result in a corresponding reduction in the adjusted tax

basis in the common stock and will not be taxed again once distributed. An Electing Holder would generally

recognize capital gain or loss on the sale, exchange or other disposition of the common stock.

Taxation of U.S. Holders Making a Mark-to-Market Election

Alternatively, if the Company were to be treated as a PFIC for any taxable year and, as anticipated, the

common stock is treated as “marketable stock,” a U.S. Holder would be allowed to make a Mark-to-Market

Election with respect to the Company’s common stock. If that election is made, the U.S. Holder generally

would include as ordinary income in each taxable year the excess, if any, of the fair market value of the

common stock at the end of the taxable year over such Holder’s adjusted tax basis in the common

stock. The U.S. Holder would also be permitted an ordinary loss in respect of the excess, if any, of the U.S.

Holder’s adjusted tax basis in the common stock over its fair market value at the end of the taxable year,

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but only to the extent of the net amount previously included in income as a result of the Mark-to-Market

Election. A U.S. Holder’s tax basis in his common stock would be adjusted to reflect any such income or

loss amount. Gain realized on the sale, exchange or other disposition of the common stock would be

treated as ordinary income, and any loss realized on the sale, exchange or other disposition of the common

stock would be treated as ordinary loss to the extent that such loss does not exceed the net mark-to-market

gains previously included by the U.S. Holder.

Taxation of U.S. Holders Not Making a Timely QEF Election or Mark-to-Market Election

Finally, if the Company were to be treated as a PFIC for any taxable year, a U.S. Holder who does not

make either a QEF Election or a Mark-to-Market Election for that year, whom is referred to as a “Non-

Electing Holder”, would be subject to special U.S. federal income tax rules with respect to (1) any excess

distribution (i.e., the portion of any distributions received by the Non-Electing Holder on the common stock

in a taxable year in excess of 125% of the average annual distributions received by the Non-Electing Holder

in the three (3) preceding taxable years, or, if shorter, the Non-Electing Holder’s holding period for the

common stock), and (2) any gain realized on the sale, exchange or other disposition of the common

stock. Under these special rules:

• the excess distribution or gain would be allocated ratably over the Non-Electing Holder’s

aggregate holding period for the common stock;

• the amount allocated to the current taxable year and any taxable years before the

Company became a PFIC would be taxed as ordinary income; and

• the amount allocated to each of the other taxable years would be subject to tax at the

highest rate of tax in effect for the applicable class of taxpayer for that year, and an

interest charge for the deemed tax deferral benefit would be imposed with respect to

the resulting tax attributable to each such other taxable year.

These penalties would not apply to a pension or profit sharing trust or other tax-exempt organization that

did not borrow funds or otherwise utilize leverage in connection with its acquisition of the common stock. If

a Non-Electing Holder who is an individual dies while owning the common stock, such Holder’s successor

generally would not receive a step-up in tax basis with respect to such stock.

U.S. Federal Income Taxation of “Non-U.S. Holders”

A beneficial owner of our common stock that is not a U.S. Holder (other than a partnership) is referred to

herein as a “Non-U.S. Holder.”

Dividends on Common Stock

Non-U.S. Holders generally will not be subject to U.S. federal income or withholding tax on dividends

received from us with respect to our common stock, unless that income is effectively connected with the

Non-U.S. Holder’s conduct of a trade or business in the United States. If the Non-U.S. Holder is entitled to

the benefits of a U.S. income tax treaty with respect to those dividends, that income is taxable in the United

States only if attributable to a permanent establishment maintained by the Non-U.S. Holder in the United

States.

Sale, Exchange or Other Disposition of Common Stock

Non-U.S. Holders generally will not be subject to U.S. federal income or withholding tax on any gain

realized upon the sale, exchange or other disposition of our common stock, unless:

• the gain is effectively connected with the Non-U.S. Holder’s conduct of a trade or

business in the United States. If the Non-U.S. Holder is entitled to the benefits of a U.S.

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income tax treaty with respect to that gain, the gain is taxable in the United States only

if attributable to a permanent establishment maintained by the Non-U.S. Holder in the

United States; or

• the Non-U.S. Holder is an individual who is present in the United States for 183 days or

more during the taxable year of disposition and other conditions are met.

If the Non-U.S. Holder is engaged in a U.S. trade or business for U.S. federal income tax purposes, the

income from our common stock, including dividends and the gain from the sale, exchange or other

disposition of the common stock, that is effectively connected with the conduct of that U.S. trade or

business will generally be subject to U.S. federal income tax in the same manner as discussed in the

previous section relating to the taxation of U.S. Holders. In addition, in the case of a corporate Non-U.S.

Holder, such Holder’s earnings and profits that are attributable to the effectively connected income, subject

to certain adjustments, may be subject to an additional U.S. federal branch profits tax at a rate of 30%, or

at a lower rate as may be specified by an applicable U.S. income tax treaty.

Backup Withholding and Information Reporting

In general, dividend payments, or other taxable distributions, made within the United States to a holder will

be subject to U.S. federal information reporting requirements. Such payments will also be subject to U.S.

federal “backup withholding” if paid to a non-corporate U.S. holder who:

• fails to provide an accurate taxpayer identification number;

• is notified by the IRS that he has failed to report all interest or dividends required to be

shown on his U.S. federal income tax returns; or

• in certain circumstances, fails to comply with applicable certification requirements.

Non-U.S. Holders may be required to establish their exemption from information reporting and backup

withholding by certifying their status on an applicable IRS Form W-8.

If a holder sells his common stock to or through a U.S. office of a broker, the payment of the proceeds is

subject to both backup withholding and information reporting unless the holder establishes an exemption. If

a holder sells his common stock through a non-U.S. office of a non-U.S. broker and the sales proceeds are

paid to the holder outside the United States, then information reporting and backup withholding generally

will not apply to that payment. However, information reporting requirements, but not backup withholding,

will apply to a payment of sales proceeds, including a payment made to a holder outside the United States,

if the holder sells his common stock through a non-U.S. office of a broker that is a U.S. person or has some

other contacts with the United States.

Backup withholding is not an additional tax. Rather, a taxpayer generally may obtain a refund of any

amounts withheld under backup withholding rules that exceed the taxpayer’s U.S. federal income tax

liability by filing a refund claim with the IRS.

U.S. Holders who are individuals (and to the extent specified in applicable Treasury Regulations, certain

U.S. entities) who hold “specified foreign financial assets” (as defined in Section 6038D of the Code) are

required to file IRS Form 8938 with information relating to the asset for each taxable year in which the

aggregate value of all such assets exceeds $75,000 at any time during the taxable year or $50,000 on the

last day of the taxable year (or such higher dollar amount as prescribed by applicable Treasury

Regulations). Specified foreign financial assets would include, among other assets, our common stock,

unless the common stock is held through an account maintained with a U.S. financial institution. Substantial

penalties apply to any failure to timely file IRS Form 8938, unless the failure is shown to be due to

reasonable cause and not due to willful neglect. Additionally, in the event a U.S. Holder who is an individual

(and to the extent specified in applicable Treasury regulations, a U.S. entity) that is required to file IRS

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Form 8938 does not file such form, the statute of limitations on the assessment and collection of U.S.

federal income taxes of such holder for the related tax year may not close until three (3) years after the

date that the required information is filed.

Changes in Global Tax Laws 

Long-standing international tax initiatives that determine each country’s jurisdiction to tax cross-border

international trade and profits are evolving as a result of, among other things, initiatives such as the Anti-

Tax Avoidance Directives, as well as the Base Erosion and Profit Shifting reporting requirements,

mandated and/or recommended by the EU, G8, G20 and Organization for Economic Cooperation and

Development, including the imposition of a minimum global effective tax rate for multinational businesses

regardless of the jurisdiction of operation and where profits are generated (Pillar Two). As these and other

tax laws and related regulations change (including changes in the interpretation, approach and guidance

of tax authorities), our financial results could be materially impacted. Given the unpredictability of these

possible changes and their potential interdependency, it is difficult to assess whether the overall effect of

such potential tax changes would be cumulatively positive or negative for our earnings and cash flow, but

such changes could adversely affect our financial results.

On December 12, 2022, the European Union member states agreed to implement the OECD’s Pillar Two

global corporate minimum tax rate of 15% on companies with revenues of at least €750 million effective

from 2024. Various countries have either adopted implementing legislation or are in the process of drafting

such legislation. Any new tax law in a jurisdiction where we conduct business or pay tax could have a

negative effect on our company.

F.

Dividends and paying agents

Not Applicable.

G. Statement by experts

Not Applicable.

H. Documents on display

We file reports and other information with the SEC. These materials, including this annual report and the

accompanying exhibits are available from the SEC’s website http://www.sec.gov. 

I. Subsidiary information

Not Applicable.

J. Annual Report to Security Holders

We intend to submit any annual report provided to security holders in electronic format as an exhibit to a

current report on Form 6-K. 

Item 11. Quantitative and Qualitative Disclosures about Market Risk

Interest Rates

We are exposed to market risks associated with changes in interest rates relating to our loan facilities,

according to which we were paying interest at LIBOR plus a margin until June 30, 2023 and since then we

110

pay term SOFR plus a margin. Increases in interest rates could affect our results of operations. An increase

of 1% in the interest rates of our loan facilities bearing a variable interest rate during 2023, could have

increased our interest cost from $29.6 million to $33.6 million. 

We will continue to have debt outstanding, which could impact our results of operations and financial

condition. We manage our exposure in interest rates, by maintaining a mix of financing under agreements

with floating and fixed interest rates. More specifically, during 2022, we refinanced part of our loans having

a floating interest rate, with sale and leaseback transactions with fixed rates. Also, in 2023, we entered into

an interest rate swap for 30% of our $100 million loan facility with DNB, dated June 26, 2023, under which

we pay fixed interest and receive floating. Through these agreements and our bond, also bearing fixed

interest rate, we manage part of our exposure in interest rates caused by the remaining agreements which

bear floating interest rates.

As of December 31, 2023, 2022 and 2021, and as of the date of this annual report, we did not and have

not designated any financial instruments as accounting hedging instruments. 

Currency and Exchange Rates

We generate all of our revenues in U.S. dollars but currently incur less than half of our operating expenses

(around 29% in 2023 and around 32% in 2022) and about half of our general and administrative expenses

(around 44% in 2023 and around 45% in 2022) in currencies other than the U.S. dollar, primarily the Euro.

For accounting purposes, including throughout this annual report, expenses incurred in Euros are

converted into U.S. dollars at the exchange rate prevailing on the date of each transaction. Because a

significant portion of our expenses are incurred in currencies other than the U.S. dollar, our expenses may

from time to time increase relative to our revenues as a result of fluctuations in exchange rates, particularly

between the U.S. dollar and the Euro, which could affect our results of operations in future periods.

Currently, we do not consider the risk from exchange rate fluctuations to be material for our results of

operations, as during 2023 and 2022, these non-US dollar expenses represented 15% and 12%,

respectively of our revenues and therefore, we are not engaged in extensive derivative instruments to

hedge a considerable part of those expenses. 

While we historically have not mitigated the risk associated with exchange rate fluctuations through the use

of financial derivatives, we may determine to employ such instruments from time to time in the future in

order to minimize this risk. Our use of financial derivatives would involve certain risks, including the risk

that losses on a hedged position could exceed the nominal amount invested in the instrument and the risk

that the counterparty to the derivative transaction may be unable or unwilling to satisfy its contractual

obligations, which could have an adverse effect on our results. 

Item 12. Description of Securities Other than Equity Securities

Not Applicable.

111

PART II

Item 13. Defaults, Dividend Arrearages and Delinquencies

None.

Item 14. Material Modifications to the Rights of Security Holders and Use

of Proceeds

None.

Item 15. Controls and Procedures

a) Disclosure Controls and Procedures 

Management, including our Chief Executive Officer and Chief Financial Officer, has conducted an

evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e)

and 15d-15(e) under the Exchange Act) as of the end of the period covered by this annual report. Based

upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our

disclosure controls and procedures are effective to ensure that information required to be disclosed by the

Company in the reports that it files or submits to the SEC under the Exchange Act is recorded, processed,

summarized and reported within the time periods specified in SEC rules and forms.

b) Management’s Annual Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial

reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. The Company’s internal control

over financial reporting is a process designed under the supervision of the Company’s Chief Executive

Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of the Company’s financial statements for external reporting purposes in

accordance with U.S. GAAP. A company’s internal control over financial reporting includes those policies

and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and

fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable

assurance that transactions are recorded as necessary to permit the preparation of financial statements in

accordance with U.S. GAAP, and that receipts and expenditures of the company are being made only in

accordance with authorizations of management and directors of the company; and (iii) provide reasonable

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the

company’s assets that could have a material effect on the financial statements.

Management has conducted an assessment of the effectiveness of the Company’s internal control over

financial reporting based on the framework established in Internal Control – Integrated Framework issued

by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based

on this assessment, management has determined that the Company’s internal control over financial

reporting as of December 31, 2023 is effective.

The registered public accounting firm that audited the financial statements included in this annual report

containing the disclosure required by this Item 15 has issued an attestation report on management's

assessment of our internal control over financial reporting.

112

c) Attestation Report of Independent Registered Public Accounting Firm 

The attestation report on the Company’s internal control over financial reporting issued by the registered

public accounting firm that audited the Company’s consolidated financial statements, Ernst Young (Hellas)

Certified Auditors Accountants S.A., appears on page F-4 of the financial statements filed as part of this

annual report.

d) Changes in Internal Control over Financial Reporting

None.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and our Chief Financial Officer, does not expect

that our disclosure controls or our internal control over financial reporting will prevent or detect all error and

all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not

absolute, assurance that the control system’s objectives will be met. Further, because of the inherent

limitations in all control systems, no evaluation of controls can provide absolute assurance that

misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any,

within the Company have been detected. These inherent limitations include the realities that judgments in

decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls

can also be circumvented by the individual acts of some persons, by collusion of two or more people, or

by management override of the controls. The design of any system of controls is based in part on certain

assumptions about the likelihood of future events, and there can be no assurance that any design will

succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of

controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate

because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

Item 16A. Audit Committee Financial Expert

Our Board of Directors has determined that both the members of our Audit Committee, Mr. Kyriacos Riris

and Mr. Apostolos Kontoyannis, qualify as “Audit Committee financial experts” and that they are both

considered to be “independent” according to SEC rules.

Item 16B. Code of Ethics

We have adopted a code of ethics that applies to officers, directors, employees and agents. Our code of

ethics is posted on our website,

 http://www.dianashippinginc.com

, under “About Us—Code of Ethics” and

is filed as Exhibit 11.1 to this Annual Report. Copies of our code of ethics are available in print, free of

charge, upon request to Diana Shipping Inc., Pendelis 16, 175 64 Palaio Faliro, Athens, Greece. We intend

to satisfy any disclosure requirements regarding any amendment to, or waiver from, a provision of this

code of ethics by posting such information on our website.

Item 16C. Principal Accountant Fees and Services

a) Audit Fees

Our principal accountants,

Ernst and Young

 (Hellas), Certified Auditors Accountants S.A., have billed us

for audit services. Audit fees in 2023 and 2022 amounted to € 383,250 and € 383,250, or approximately

$416,000 and $437,000, respectively, and relate to audit services provided in connection with timely AS

4105 reviews, the audit of our consolidated financial statements and the audit of internal control over

financial reporting. 

113

b) Audit-Related Fees

Audit related fees during 2023 amounted to € 22,050, as compared to € 71,288 in 2022 and relate to audit

services provided in connection with the Company’s filings with the SEC. 

c) Tax Fees

During 2023 and 2022, we received services for which fees amounted to $11,025 and $10,500,

respectively, for the calculation of Earnings and Profits of the Company.

d) All Other Fees

None.

e) Audit Committee’s Pre-Approval Policies and Procedures 

Our Audit Committee is responsible for the appointment, replacement, compensation, evaluation and

oversight of the work of our independent auditors. As part of this responsibility, the Audit Committee pre-

approves the audit and non-audit services performed by the independent auditors in order to assure that

they do not impair the auditor’s independence from the Company. The Audit Committee has adopted a

policy which sets forth the procedures and the conditions pursuant to which services proposed to be

performed by the independent auditors may be pre-approved.

f) Audit Work Performed by Other than Principal Accountant if Greater than 50%

Not applicable.

Item 16D. Exemptions from the Listing Standards for Audit Committees

Our Audit Committee consists of two independent members of our Board of Directors. Otherwise, our Audit

Committee conforms to each other requirement applicable to audit committees as required by the

applicable listing standards of the NYSE.

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated

Purchasers

On May 23, 2014, we announced that our Board of Directors authorized a share repurchase plan for up to

$100 million of the Company’s common shares. The plan does not have an expiration date. During 2023,

we did not repurchase any shares of common stock and as of December 31, 2023 and the date of this

report, there is an outstanding value of about $66.3 million of common shares that can be repurchased

under the plan. 

Item 16F. Change in Registrant’s Certifying Accountant

Not applicable.

114

Item 16G. Corporate Governance

Overview

Pursuant to an exception for foreign private issuers, we, as a Marshall Islands company, are not required

to comply with the corporate governance practices followed by U.S. companies under the NYSE listing

standards. We believe that our established practices in the area of corporate governance are in line with

the spirit of the NYSE standards and provide adequate protection to our shareholders. In fact, we have

voluntarily adopted NYSE required practices, such as (a) having a majority of independent directors, (b)

establishing audit, compensation, sustainability and nominating committees and (c) adopting a Code of

Ethics. The significant differences between our corporate governance practices and the NYSE standards

are set forth below. 

Executive Sessions

The NYSE requires that non-management directors meet regularly in executive sessions without

management. The NYSE also requires that all independent directors meet in an executive session at least

once a year. As permitted under Marshall Islands law and our bylaws, our non-management directors do

not regularly hold executive sessions without management and we do not expect them to do so in the

future.

Audit Committee

The NYSE requires, among other things, that a company have an audit committee with a minimum of three

members. Our Audit Committee consists of two independent members of our Board of Directors. Our Audit

Committee conforms to every other requirement applicable to audit committees set forth in the listing

standards of the NYSE.

Shareholder Approval of Equity Compensation Plans

The NYSE requires listed companies to obtain prior shareholder approval to adopt or materially revise any

equity compensation plan. As permitted under Marshall Islands law and our amended and restated bylaws,

we do not need prior shareholder approval to adopt or revise equity compensation plans, including our

equity incentive plan.

Corporate Governance Guidelines

The NYSE requires companies to adopt and disclose corporate governance guidelines. The guidelines

must address, among other things: director qualification standards, director responsibilities, director access

to management and independent advisers, director compensation, director orientation and continuing

education, management succession and an annual performance evaluation. We are not required to adopt

such guidelines under Marshall Islands law and we have not adopted such guidelines. 

Share Issuances

In lieu of obtaining shareholder approval prior to the issuance of designated securities, we will comply with

provisions of the Marshall Islands Business Corporations Act, which allows the Board of Directors to

approve share issuances. Additionally, the NYSE restricts the issuance of super voting stock such as our

Series C Preferred Shares. However, pursuant to 313.00 of Section 3 of the NYSE Listed Company

Manual, the NYSE will accept any action or issuance relating to the voting rights structure of a non-U.S.

company that is in compliance with the NYSE’s requirements for domestic companies or that is not

prohibited by the company's home country law. We are not subject to such restrictions under our home

country, Marshall Islands, law.

115

Item 16H. Mine Safety Disclosure

Not applicable.

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

Item 16J. Insider Trading Policies 

Pursuant to applicable SEC transition guidance, the disclosure required by Item 16J will be applicable to

us beginning in the fiscal year ending December 31, 2024.

Item 16K. Cybersecurity 

Risk management and strategy

We have security measures in place to mitigate the risk of cybersecurity threats affecting our technology

environment and our business. In 2023, the Company successfully achieved ISO 27001 certification,

demonstrating that our Information Security Management System (ISMS) meets the rigorous requirements

of this internationally recognized standard. The Company's security team regularly conducts significant

internal changes, and the underlying controls of our cyber risk management program are now formally

aligned with ISO 27001. 

Cybersecurity training is carried out on a company-wide basis to all employees and seafarers while online

performance cybersecurity is delivered to our crew monthly. To help build cultural awareness of these risks

within the Company, additional phishing campaigns have been implemented within the organization which

have motivated the staff to react, helping to enhance awareness of these risks and mitigate their

occurrence. The security team have further enhanced our processes and increased our defenses by

implementing a cybersecurity testing program, carried out on a yearly basis by external consultants.

Penetration testing was also carried out in parallel during 2023. A centralized monitoring system, powered

by Microsoft's cloud-based Security Information and Event Management (SIEM) solution, is in place

throughout the year. This system aggregates security data from various sources, uses built-in artificial

intelligence to detect and investigate threats, and enables our security team to respond to incidents rapidly.

We have also created a comprehensive Business Continuity and Disaster Recovery plan to ensure

business resilience and minimize potential disruptions. 

For the year 2024, the security team has planned a comprehensive collaboration with a third-party company

to enhance our cybersecurity awareness and training initiatives. This partnership includes the design and

implementation of a multi-faceted approach to staff training, encompassing synchronous and

asynchronous security awareness sessions, custom-tailored phishing campaigns and the creation of

informative cybersecurity awareness newsletters to keep our staff up to date on the latest best practices

and emerging risks. Furthermore, the collaboration will focus on the customization and digitalization of our

vessels' cybersecurity awareness program, ensuring that our seafarers maintain a robust security posture

while at sea.] We will continue to acquire relevant tools to support the identification of third-party risks and

further strengthen our defense. In parallel to these security measures, our Company has established a

Data Management Platform over Microsoft Azure Technologies, to act as a centralized and secure source

of truth for our operations. The Data Management Platform was integrated with our core systems and

implementation of key reports was initiated. The goal for 2024 is to build Financial and Operational reports

116

that will enable better, faster and more accurate monitoring of Company activities and improve decision

making and productivity. To further support this transition, relevant personnel will be digitally upskilled,

while being provided with the necessary tools to help them make better decisions, ensuring greater

productivity and enhancing vessel efficiency. We are committed to enhance and enrich our operational

excellence through our external 3rd parties’ inspections and audits (PSC-Vetting inspections Audits). We

openly share our results and “lessons learnt” within the industry and organizations, we compare and

benchmark our performance and we continuously improve our safety footprint.

Governance

Our board of directors considers cybersecurity risk as part of its risk oversight function and has delegated

the day-to-day oversight of cybersecurity and other technology risks to the Cyber Security Officer. The

Cyber Security Officer is responsible for assessing and managing cybersecurity threats and for reporting

cybersecurity updates, including updates on monitoring strategies and efforts to prevent cybersecurity

threats, to the board of directors on a quarterly basis or more often as needed.

The audit committee receives regular reports from management on our cybersecurity risks. In addition,

management updates the audit committee, as necessary, regarding any material cybersecurity incidents,

as well as any incidents with lesser impact potential. The audit committee reviews the Company's

cybersecurity risks and assess’ the steps that management has taken to protect against threats to the

Company's information systems and security.

Our board of directors oversees the Company’s cybersecurity risk exposures and the steps taken by

management to monitor and mitigate cybersecurity risks. The board of directors ensures allocation and

prioritization of resources and overall strategic direction for cybersecurity and ensures alignment with the

Company’s overall strategy.

Cybersecurity Threats

During the year ended December 31, 2023 and until the date of this annual report, we did not identify any

cybersecurity threats that have materially affected or are reasonably likely to materially affect our business

strategy, results of operations, or financial condition. For more information about the cybersecurity risks we

face, please see Item 3. Key Information — D. Risk Factors — “A cyber-attack could materially disrupt our

business.”

117

PART III

Item 17. Financial Statements

See Item 18.

Item 18. Financial Statements

The financial statements required by this Item 18 are filed as a part of this annual report beginning on page

F-1. 

Item 19. Exhibits

Exhibit

Number Description

1.1 

Amended and Restated Articles of Incorporation of Diana Shipping Inc. (originally known as Diana

Shipping Investment Corp.) (1)

1.2 

Amended and Restated By-laws of the Company (2)

1.3

Equity Distribution Agreement between Diana Shipping Inc. and Maxim Group LLC. dated April 23,

2021 (21)

1.4

Amendment No.1 to Equity Distribution Agreement between Diana Shipping Inc. and Maxim Group

LLC. dated July 7, 2021 (23)

2.1 

Form of Common Share Certificate (13)

2.2 

Form of Series B Preferred Stock Certificate (16)

2.3 

Statement of Designation of the 8.875% Series B Cumulative Redeemable Perpetual Preferred

Shares of the Company (3)

2.4 

Statement of Designations of the Series A Participating Preferred Stock of the Company (4)

2.5 

Base Indenture, dated May 28, 2015, by and between the Company and Deutsche Bank Trust

Company Americas (5)

2.6

First Supplemental Indenture to the Base Indenture, dated May 28, 2015, by and between the

Company and Deutsche Bank Trust Company Americas, as trustee, relating to the Company's

8.500% Senior Notes due 2020 (6)

2.7 

Statement of Designation of Rights, Preferences and Privileges of Series C Preferred Stock of the

Company (18)

2.8

Description of Securities

**

2.9

Amended and Restated Statement of Designation of Rights, Preferences and Privileges of Series D

Preferred Stock of the Company (22)

2.10

Warrant Agreement dated December 14, 2023, between Computershare Inc., and its affiliate,

Computershare Trust Company, N.A. and the Registrant (including the form of the Warrants) (27)

4.1 

Amended and Restated Stockholders Rights Agreement dated January 15, 2016 (7)

4.2 

2014 Equity Incentive Plan (as amended and restated effective January 8, 2021) (24)

4.3 

Form of Technical Manager Purchase Option Agreement (8)

4.4 

Form of Management Agreement (9)

4.5 

Loan Agreement with Bremer Landesbank dated October 22, 2009 (17)

4.6 

Loan Agreement with the Export-Import Bank of China and DnB Nor Bank ASA dated October 2,

2010 (17)

4.7 

Loan Agreement with Emporiki Bank of Greece S.A., dated September 13, 2011 (14)

118

4.8 

First Supplemental Agreement, by and between Bikar Shipping Company Inc., Diana Shipping Inc.,

DSS and Emporiki Bank of Greece S.A., dated December 11, 2012 (13)

4.9

Second Supplemental Agreement, by and between Bikar Shipping Company Inc., Diana Shipping

Inc., DSS and Credit Agricole Corporate and Investment Bank, dated December 13, 2012 (13)

4.10 

Loan Agreement, dated May 24, 2013, by and among Erikub Shipping Company Inc., Wotho

Shipping Company Inc., DNB Bank ASA, and Export-Import Bank of China (11)

4.11 

Loan Agreement, dated January 9, 2014, by and among Taka Shipping Company Inc., Fayo Shipping

Company Inc., and Commonwealth Bank of Australia (11)

4.12 

Loan Agreement, dated December 18, 2014, by and among Weno Shipping Company Inc., Pulap

Shipping Company Inc., the Banks and Financial Institutions listed therein and BNP Paribas (12)

4.13 

Loan Agreement, dated March 17, 2015, by and among Knox Shipping Company Inc., Bokak

Shipping Company Inc., Jemo Shipping Company Inc., Guam Shipping Company Inc., Palau

Shipping Company Inc., Makur Shipping Company Inc., Mandaringina Inc., Vesta Commercial, S.A.,

the Banks and Financial Institutions listed therein, Nordea Bank Finland Plc and Nordea Bank AB,

London Branch (12)

4.14 

Administrative Services Agreement, dated October 1, 2013, by and between Diana Shipping Inc. and

Diana Shipping Services S.A. (11)

4.15 

Amended and Restated Non-Competition Agreement, dated as of March 1, 2013, by and between

Diana Shipping Inc. and Diana Containerships Inc. (renamed to Performance Shipping Inc.) (11)

4.16 

Loan Agreement with ABN AMRO Bank N.V., dated March 26, 2015 (13)

4.17 

Loan Agreement with Danish Ship Finance, dated April 29, 2015 (13)

4.18 

Joint Venture and Subscription Agreement with Wilhelmsen Ship Management, dated January 16,

2015 (13)

4.19 

Loan Agreement with BNP Paribas, dated July 22, 2015 (13)

4.20 

Loan Agreement with ING Bank N.V., dated September 30, 2015 (13)

4.21 

Loan Agreement with The Export-Import Bank of China, dated January 7, 2016 (13)

4.22 

Loan Agreement with ABN AMRO Bank N.V., dated March 29, 2016 (15)

4.23 

Brokerage Services Agreement, dated April 1, 2016, by and between Diana Shipping Inc. and Diana

Enterprises Inc. (15)

4.24 

Loan Agreement with DNB Bank ASA and The Export-Import Bank of China, dated May 10, 2016

(15)

4.25 

Fourth Amendment to Loan Agreement, dated May 20, 2013, by and between Diana Shipping Inc.,

Eluk Shipping Company Inc. and Diana Containerships Inc. (renamed to Performance Shipping Inc.),

dated September 12, 2016 (15)

4.26 

Waiver Letter from Commonwealth Bank of Australia dated January 13, 2017 (15)

4.27 

Amendment to Loan Agreement dated October 2, 2010 with the Export-Import Bank of China and

DnB Nor Bank ASA, dated February 15, 2017 (15)

4.28 

Brokerage Services Agreement, dated April 1, 2019, by and between Diana Shipping Inc. and

Steamship Shipbroking Enterprises Inc. (formerly Diana Enterprises Inc.) (20)

4.29

Fifth Amendment to Loan Agreement, dated May 20, 2013, by and between Diana Shipping Inc.,

Kapa Shipping Company Inc. and Diana Containerships Inc. (renamed to Performance Shipping

Inc.), dated May 30, 2017 (19)

4.30 

Intercreditor Agreement with Diana Containerships Inc. (renamed to Performance Shipping Inc.),

dated June 30, 2017 (19)

4.31

Subordinated Facility Agreement by and between Diana Containerships Inc. (renamed to

Performance Shipping Inc.) and Diana Shipping Inc., dated June 30, 2017 (19)

4.32 

Amendment to Loan Agreement dated October 2, 2010 with the Export-Import Bank of China and

DnB Nor Bank ASA, dated May 18, 2017 (19)

4.33 

Loan Agreement dated July 2018 with BNP Paribas (20)

4.34 

Summary for Diana Shipping Inc. listing prospectus dated as of December 31, 2018 in respect of

9.50% USD 100,000,000 Senior Unsecured Callable Bond Issue 2018/2023 (20)

4.35 

Securities Note dated as of December 3, 2018, in respect of 9.50% USD 100,000,000 Senior

Unsecured Callable Bond Issue 2018/2023 (20)

119

4.36 

Registration Document dated as of December 3, 2018, in respect of 9.50% USD 100,000,000 Senior

Unsecured Callable Bond Issue 2018/2023 (20)

4.37 

Loan Agreement dated March 2019 with DNB Bank ASA (20)

4.38

Loan Agreement dated June 2019 with ABN AMRO Bank N.V.(24)

4.39

Third Amendment Agreement dated December 2020 with DNB Bank ASA (24)

4.40

Loan Agreement dated May 2020 with ABN AMRO Bank N.V. (24)

4.41

Loan Agreement dated May 2020 with Nordea Bank Abp, filial i Norge(24)

4.42 

Loan Agreement dated June 2020 with BNP Paribas(24)

4.43

Brokerage Services Agreement, dated July 1, 2020, by and between Diana Shipping Inc. and Diana

Enterprises Inc(24)

4.44

Loan Agreement dated May 2021 with ABN AMRO Bank N.V (25)

4.45:

Nordea Supplemental Agreement dated July, 29, 2021

(26)

4.46:

Nordea Loan Agreement dated September 30, 2022

(26)

4.47:

Right of First Refusal Agreement with OceanPal Inc.

(26)

4.48:

Amended and Restated Contribution and Conveyance Agreement with OceanPal Inc.

(26)

4.49:

Loan Agreement dated April 12, 2023 with Danish Ship Finance A/S

**

4.50:

Loan Agreement dated June 26, 2023 with DNB Bank ASA

**

4.51:

Loan Agreement dated June 20, 2023 with Nordea Bank ABP

**

4.52:

Amended and Restatement Deed re Secured Loan Agreement, dated July 19, 2023

**

4.53:

Brokerage Services Agreement, dated February 23, 2024

**

8.1

Subsidiaries of the Company**

11.1

Amended Code of Ethics (20)

12.1

Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer

**

12.2

Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer

**

13.1

Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant

to Section 906 of the Sarbanes-Oxley Act of 2002

**

13.2

Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant

to Section 906 of the Sarbanes-Oxley Act of 2002

**

15.1

Consent of Independent Registered Public Accounting Firm

**

97.1

Policy Regarding the Recovery of Erroneously Awarded Compensation

**.

101 The following materials from the Company's Annual Report on Form 20-F for the fiscal year ended

December 31, 2023, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated

Balance Sheets as of December 31, 2023 and 2022; (ii) Consolidated Statements of Income for the

years ended December 31, 2023, 2022 and 2021; (iii) Consolidated Statements of Comprehensive

Income for the years ended December 31, 2023, 2022 and 2021; (iv) Consolidated Statements of

Stockholders' Equity for the years ended December 31, 2023, 2022 and 2021; (v) Consolidated

Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021; and (v) the

Notes to Consolidated Financial Statements

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

** Filed herewith.

(1)

Filed as Exhibit 99.2 to the Company's Form 6-K filed on November 15, 2023

.

(2)

Filed as Exhibit 99.3 to the Company's Form 6-K filed on November 15, 2023.

(3) Filed as Exhibit 3.3 to the Company's Form 8-A filed on February 13, 2014.

(4) Filed as Exhibit 3.1 to the Company's Form 8-A12B/A filed on January 15, 2016.

(5) Filed as Exhibit 4.1 to the Company's Form 6-K filed on May 28, 2015.

(6) Filed as Exhibit 4.2 to the Company's Form 6-K filed on May 28, 2015.

(7) Filed as Exhibit 4.1 to the Company's Form 8-A12B/A filed on February 2, 2024.

(8) Filed as an Exhibit to the Company's Registration Statement (File No. 123052) on March 1, 2005.

(9) Filed as an Exhibit to the Company's Amended Registration Statement (File No. 123052) on March

15, 2005.

(10) Reserved.

120

(11) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on March 27, 2014. 

(12) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on March 25, 2015. 

(13) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on March 28, 2016. 

(14) Filed as an Exhibit to the Company's Annual Report filed on Form 20-F on April 20, 2012. 

(15) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on February 17, 2017.

(16) Filed as Exhibit 4.1 to the Company's Form 8-A12B filed on February 13, 2014.

(17) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 31, 2011.

(18) Filed as an Exhibit to the Company’s Form 6-K filed on February 6, 2019.

(19) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 16, 2018.

(20) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 12, 2019.

(21) Filed as an Exhibit to the Company’s Form 6-K filed on April 23, 2021.

(22) Filed as an Exhibit to the Company’s Form 6-K filed

on September 8, 2023

.

(23) Filed as an Exhibit to the Company’s Form 6-K filed on July 31, 2021.

(24) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 12, 2021.

(25) Filed as an Exhibit to the Company’s Form F-3 filed on June 4, 2021.

(26) Filed as an Exhibit to the Company’s Annual Report filed on Form 20-F on March 27, 2023.

(27) Filed as an Exhibit to the Company’s Form 6-K filed on December 14, 2023.

121

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and has duly

caused and authorized the undersigned to sign this annual report on its behalf.

DIANA SHIPPING INC.

/s/ Ioannis Zafirakis 

Ioannis Zafirakis

Chief Financial Officer 

Dated: April 4, 2024

F-1

DIANA SHIPPING INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Page

Report of Independent Registered Public Accounting Firm (PCAOB ID:

1457

) .................. 

F-2

Report of Independent Registered Public Accounting Firm ................................ ................ 

F-4

Consolidated Balance Sheets as of December 31, 2023 and 2022 ................................ ... 

F-6

Consolidated Statements of Income for the years ended December 31, 2023, 2022 and

2021 ................................................................ ................................ ................................ .. 

F-7

Consolidated Statements of Comprehensive Income for the years ended December 31,

2023, 2022 and 2021 ................................ ................................ ................................ ......... 

F-8

Consolidated Statements of Stockholders' Equity for the years ended December 31,

2023, 2022 and 2021 ................................ ................................ ................................ ......... 

F-9

Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022

and 2021 ................................ ................................ ................................ ........................... 

F-

11

Notes to Consolidated Financial Statements................................ ................................ ...... 

F-13

F-2

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Diana Shipping Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Diana Shipping Inc. (the Company)

as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive

income, stockholders' equity and cash flows for each of the three years in the period ended December 31,

2023, and the related notes (collectively referred to as the “consolidated financial statements”). In our

opinion, the consolidated financial statements present fairly, in all material respects, the financial position

of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for

each of the three years in the period ended December 31, 2023, in conformity with U.S. generally accepted

accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight

Board (United States) (PCAOB), the Company's internal control over financial reporting as of December

31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee

of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated April 4,

2024 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to

express an opinion on the Company’s financial statements based on our audits. We are a public accounting

firm registered with the PCAOB and are required to be independent with respect to the Company in

accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities

and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that

we plan and perform the audit to obtain reasonable assurance about whether the financial statements are

free of material misstatement, whether due to error or fraud. Our audits included performing procedures to

assess the risks of material misstatement of the financial statements, whether due to error or fraud, and

performing procedures that respond to those risks. Such procedures included examining, on a test basis,

evidence regarding the amounts and disclosures in the financial statements. Our audits also included

evaluating the accounting principles used and significant estimates made by management, as well as

evaluating the overall presentation of the financial statements. We believe that our audits provide a

reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the

financial statements that was communicated or required to be communicated to the audit committee and

that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our

especially challenging, subjective or complex judgments. The communication of the critical audit matter

does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we

are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit

matter or on the accounts or disclosure to which it relates.

F-3

Recoverability assessment of vessels held and used

Description

of the

matter

At December 31, 2023, the carrying value of the Company’s vessels plus

unamortized deferred costs was $

915,470 thousands. As discussed in Note 2 (l) to

the consolidated financial statements, the Company evaluates its vessels for

impairment whenever events or changes in circumstances indicate that the carrying

value of a vessel plus unamortized deferred costs may not be recoverable in

accordance with the guidance in ASC 360 – Property, Plant and Equipment (“ASC

360”). If indicators of impairment exist, management analyzes the future

undiscounted net operating cash flows expected to be generated throughout the

remaining useful life of each vessel and compares it to the carrying value of the

vessel plus unamortized deferred costs. Where a vessel’s carrying value plus

unamortized deferred costs exceeds the undiscounted net operating cash flows,

management will recognize an impairment loss equal to the excess of the carrying

value plus unamortized deferred costs over the fair value of the vessel. 

Auditing management’s recoverability assessment was complex given the

judgement and estimation uncertainty involved in determining the future charter

rates for non-contracted revenue days used in forecasting undiscounted net

operating cash flows. These rates are subjective as they involve the development

and use of assumptions about the dry-bulk shipping market through the end of the

useful lives of the vessels. This assumption is forward looking and subject to the

inherent unpredictability of future global economic and market conditions.

How we

addressed

the matter

in our audit

We obtained an understanding of the Company’s impairment process, evaluated the

design, and tested the operating effectiveness of the controls over the Company’s

recoverability assessment of vessels held and used, including the determination of

future charter rates for non-contracted revenue days.

We evaluated management’s recoverability assessment by comparing the

methodology and model used for each vessel against the accounting guidance in

ASC 360. To test management’s undiscounted net operating cash flow forecasts,

our procedures included, among others, comparing the future vessel charter rates

for non-contracted revenue days with external data such as available market data

from various analysts and recent economic and industry changes, and internal data

such as historical charter rates for the vessels. In addition, we performed sensitivity

analyses to assess the impact of changes to future charter rates for non-contracted

revenue days in the determination of the future undiscounted net operating cash

flows. We tested the completeness and accuracy of the data used within the

forecasts. We assessed the adequacy of the Company’s disclosures in Note 2 (l) to

the consolidated financial statements.

/s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A.

We have served as the Company’s auditor since 2004.

Athens, Greece 

April 4, 2024

F-4

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Diana Shipping Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Diana Shipping Inc.’s internal control over financial reporting as of December 31, 2023,

based on criteria established in Internal Control—Integrated Framework issued by the Committee of

Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our

opinion, Diana Shipping Inc. (the Company) maintained, in all material respects, effective internal control

over financial reporting as of December 31, 2023, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight

Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31,

2023 and 2022, the related consolidated statements of income, comprehensive income, stockholders’

equity and cash flows for each of the three years in the period ended December 31, 2023, and the related

notes and our report dated April 4, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial

reporting and for its assessment of the effectiveness of internal control over financial reporting included in

the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our

responsibility is to express an opinion on the Company’s internal control over financial reporting based on

our audit. We are a public accounting firm registered with the PCAOB and are required to be independent

with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules

and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we

plan and perform the audit to obtain reasonable assurance about whether effective internal control over

financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the

risk that a material weakness exists, testing and evaluating the design and operating effectiveness of

internal control based on the assessed risk, and performing such other procedures as we considered

necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 

F-5

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for

external purposes in accordance with generally accepted accounting principles. A company’s internal

control over financial reporting includes those policies and procedures that (1) pertain to the maintenance

of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the

assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with generally accepted accounting principles,

and that receipts and expenditures of the company are being made only in accordance with authorizations

of management and directors of the company; and (3) provide reasonable assurance regarding prevention

or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have

a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect

misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk

that controls may become inadequate because of changes in conditions, or that the degree of compliance

with the policies or procedures may deteriorate.

/s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A.

Athens, Greece

April 4, 2024

F-6

DIANA SHIPPING INC. 

CONSOLIDATED BALANCE SHEETS

December 31, 2023 and 2022

(Expressed in thousands of U.S. Dollars – except for share and per share data)

2023

2022

ASSETS

Current Assets

Cash and cash equivalents (Note 2(e))

$

101,592

$

76,428

Time deposits (Note 2(e))

40,000

46,500

Accounts receivable, trade (Note 2(f))

5,870

6,126

Due from related parties (Note 4)

149

216

Inventories (Note 2(g))

5,056

4,545

Prepaid expenses and other assets

8,696

6,749

Investments in equity securities (Note 5(b))

20,729

-

Fair value of derivatives

129

-

Total Current Assets

182,221

140,564

Fixed Assets:

Advances for vessel acquisitions (Note 6)

-

24,123

Vessels, net (Note 6)

900,192

949,616

Property and equipment, net (Note 7)

24,282

22,963

Total fixed assets

924,474

996,702

Other Noncurrent Assets

Restricted cash, non-current (Note 8)

20,000

21,000

Due from related parties, non-current (Note 4)

319

-

Equity method investments (Note 4)

15,769

506

Investments in related party (Note 5(a))

8,318

7,744

Other non-current assets

31

101

Deferred costs

15,278

16,302

Total Non-current Assets

984,189

1,042,355

Total Assets

$

1,166,410

$

1,182,919

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Current portion of long-term debt, net of deferred financing costs (Note 8)

$

49,512

$

91,495

Current portion of finance liabilities, net of deferred financing costs (Note 9)

9,221

8,802

Accounts payable

9,663

11,242

Due to related parties (Note 3)

759

136

Accrued liabilities

12,416

12,134

Deferred revenue

3,563

7,758

Total Current Liabilities

85,134

131,567

Non-current Liabilities

Long-term debt, net of current portion and deferred financing costs (Note 8)

461,131

431,016

Finance liabilities, net of current portion and deferred financing costs (Note 9)

122,908

132,129

Fair value of derivatives

568

-

Warrant liability (Note 11(g))

6,332

-

Other non-current liabilities

1,316

879

Total Noncurrent Liabilities

592,255

564,024

Commitments and contingencies (Note 10)

-

-

Stockholders' Equity

Preferred stock (Note 11)

26

26

Common stock, $

0.01

 par value;

1,000,000,000

 and

200,000,000

 shares authorized and

113,065,725

 and

102,653,619

 issued and outstanding on December 31, 2023 and 2022,

respectively (Note 11)

1,131

1,027

Additional paid in capital

1,101,425

1,061,015

Accumulated other comprehensive income

308

253

Accumulated deficit

(613,869)

(574,993)

Total Stockholders' Equity

489,021

487,328

 Total Liabilities and Stockholders' Equity

$

1,166,410

$

1,182,919

The accompanying notes are an integral part of these consolidated financial statements.

F-7

DIANA SHIPPING INC.

CONSOLIDATED STATEMENTS OF INCOME

For the years ended December 31, 2023, 2022 and 2021

(Expressed in thousands of U.S. Dollars – except for share and per share data)

2023

2022

2021

REVENUES:

Time charter revenues

$

262,098

$

289,972

$

214,203

OPERATING EXPENSES

Voyage expenses (Note 12)

13,621

6,942

5,570

Vessel operating expenses

85,486

72,033

74,756

Depreciation and amortization of deferred charges 

49,785

43,326

40,492

General and administrative expenses

32,968

29,367

29,192

Management fees to a related party (Note 4(a))

1,313

511

1,432

Gain on sale of vessels (Note 6)

(5,323)

(2,850)

(1,360)

Insurance recoveries

-

(1,789)

-

Other operating (income)/loss

(1,464)

(265)

603

Operating income, total

$

85,712

$

142,697

$

63,518

OTHER INCOME / (EXPENSES):

Interest expense and finance costs (Note 13)

(49,331)

(27,419)

(20,239)

Interest and other income

8,170

2,737

176

Loss on derivative instruments (Note 8)

(439)

-

-

Loss on extinguishment of debt (Note 8)

(748)

(435)

(980)

Gain on spin-off of OceanPal Inc.

-

-

15,252

Gain on deconsolidation of subsidiary (Note 4(b))

844

-

-

Gain on related party investments (Note 5(a))

1,502

589

-

Unrealized gain on equity securities (Note 5(b))

2,813

-

-

Unrealized gain on warrants (Note 11 (g))

1,583

-

-

Gain/(loss) from equity method investments (Note 4)

(262)

894

(333)

Total other expenses, net

$

(35,868)

$

(23,634)

$

(6,124)

Net income

$

49,844

$

119,063

$

57,394

Dividends on series B preferred shares (Notes 11(b) and

14)

(5,769)

(5,769)

(5,769)

Net income attributable to common stockholders

$

44,075

$

113,294

$

51,625

Earnings per common share, basic

 (Note 14)

$

0.44

$

1.42

$

0.64

Earnings per common share, diluted

 (Note 14)

$

0.42

$

1.36

$

0.61

Weighted average number of common shares

outstanding, basic

 (Note 14)

100,166,629

80,061,040

81,121,781

Weighted average number of common shares

outstanding, diluted

 (Note 14)

101,877,142

83,318,901

84,856,840

The accompanying notes are an integral part of these consolidated financial statements.

F-8

DIANA SHIPPING INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2023, 2022 and 2021

(Expressed in thousands of U.S. Dollars)

2023

2022

2021

Net income

$

49,844

$

119,063

$

57,394

Other comprehensive income - Defined benefit plan

55

182

2

Comprehensive income

$

49,899

$

119,245

$

57,396

The accompanying notes are an integral part of these consolidated financial statements.

F-9

DIANA SHIPPING INC. 

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the years ended December 31, 2023, 2022 and 2021

(Expressed in thousands of U.S. Dollars – except for share data)

Preferred Stock

Series B

Preferred Stock

Series C

Preferred Stock

Series D

Common Stock

Additional

Paid-in

Capital

Other

Comprehe

nsive

Income

Accumulat

ed Deficit

Total 

Equity

# of Shares

Par

Valu

e

# of

Shares

Par

Valu

e

# of

Shares

Par

Valu

e

# of Shares

Par

Value

BALANCE,

December 31, 2020

2,600,000

$

26

10,675

$

-

-

$

-

89,275,002

$

893

$

1,020,164

$

69

$

(592,582)

$

428,570

Net income

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

57,394

57,394

Issuance of Series

D Preferred Stock

(Note 11(d))

-

-

-

-

400

-

-

-

254

-

-

254

Issuance of

restricted stock and

compensation cost

(Note 11(h))

-

-

-

-

-

-

8,260,000

83

7,359

-

-

7,442

Stock repurchased

and retired (Note

11(e))

-

-

-

-

-

-

(12,862,744)

(129)

(45,240)

-

-

(45,369)

Dividends on series

B preferred stock

(Note 11(b))

-

-

-

-

-

-

-

-

-

-

(5,769)

(5,769)

Dividends on

common stock

(Note 11(f))

-

-

-

-

-

-

-

-

-

-

(8,820)

(8,820)

OceanPal Inc.

spinoff (Note 11(g))

-

-

-

-

-

-

-

-

-

-

(40,509)

(40,509)

Other

comprehensive

income

-

-

-

-

-

-

-

-

-

2

-

2

BALANCE,

December 31, 2021

2,600,000

$

26

10,675

$

-

400

$

-

84,672,258

$

847

$

982,537

$

71

$

(590,286)

$

393,195

Net income

-

-

-

-

-

-

-

-

-

-

119,063

119,063

Issuance of

restricted stock and

compensation cost

(Note 11(h))

-

-

-

-

-

-

1,470,000

15

9,267

-

-

9,282

Stock repurchased

and retired (Note

11(e))

-

-

-

-

-

-

(820,000)

(8)

(3,791)

-

-

(3,799)

Issuance of

common stock 

(Note 11(e))

-

-

-

-

-

-

877,581

9

5,313

-

-

5,322

Issuance of

common stock for

vessel acquisitions 

(Notes 6 and 11(e))

-

-

-

-

-

-

16,453,780

164

67,689

-

-

67,853

Dividends on series

B preferred stock 

(Note 11(b))

-

-

-

-

-

-

-

-

-

-

(5,769)

(5,769)

Dividends on

common stock

(Note 11(f))

-

-

-

-

-

-

-

-

-

-

(79,812)

(79,812)

Dividends in kind 

(Note 11(g))

-

-

-

-

-

-

-

-

-

-

(18,189)

(18,189)

F-10

Other

comprehensive

income

-

-

-

-

-

-

-

-

-

182

-

182

BALANCE,

December 31, 2022

2,600,000

$

26

10,675

$

-

400

$

-

102,653,619

$

1,027

$

1,061,015

$

253

$

(574,993)

$

487,328

Net income

-

-

-

-

-

-

-

-

-

-

49,844

49,844

Issuance of

restricted stock and

compensation cost

(Note 11(h))

-

-

-

-

-

-

1,750,000

18

9,920

-

-

9,938

Issuance of

common stock

(Note 11(e))

-

-

-

-

-

-

6,628,493

66

22,780

-

-

22,846

Issuance of

common stock for

vessel acquisitions

(Notes 6 and 11(e))

-

-

-

-

-

-

2,033,613

20

7,710

-

-

7,730

Dividends on series

B preferred stock

(Note 11(b))

-

-

-

-

-

-

-

-

-

-

(5,769)

(5,769)

Dividends on

common stock

(Note 11(f))

-

-

-

-

-

-

-

-

-

-

(64,276)

(64,276)

Warrants (Note

11(g))

-

-

-

-

-

-

-

-

-

-

(7,914)

(7,914)

Dividends in kind

(Note 11(g))

-

-

-

-

-

-

-

-

-

-

(10,761)

(10,761)

Other

comprehensive

income

-

-

-

-

-

-

-

-

-

55

-

55

BALANCE,

December 31, 2023

2,600,000

$

26

10,675

$

-

400

$

-

113,065,725

$

1,131

$

1,101,425

$

308

$

(613,869)

$

489,021

The accompanying notes are an integral part of these consolidated financial statements.

F-

11

DIANA SHIPPING INC. 

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2023, 2022 and 2021

(Expressed in thousands of U.S. Dollars)

2023

2022

2021

 Cash Flows from Operating Activities: 

Net income

$

49,844

$

119,063

$

57,394

Adjustments to reconcile net income to cash provided by

operating activities

Depreciation and amortization of deferred charges

49,785

43,326

40,492

Amortization of debt issuance costs (Note 13)

2,620

2,286

1,865

Compensation cost on restricted stock (Note 11(h))

9,938

9,282

7,442

Provision for credit loss

-

133

300

Dividend income (Note 5(a))

(3)

(100)

(69)

Pension and other postretirement benefits

55

182

2

Loss on derivative instruments (Note 8)

439

-

-

Gain on sale of vessels (Notes 6)

(5,323)

(2,850)

(1,360)

Gain on related parties investments (Note 5(a))

(1,502)

(589)

-

Loss on extinguishment of debt (Note 8)

748

435

980

Gain on OceanPal spinoff 

-

-

(15,252)

Gain on deconsolidation of subsidiary (Note 4 (b))

(844)

-

-

Gain / (Loss) from equity method investments (Note 4)

262

(894)

333

Unrealized gain on equity securities (Note 5(b))

(2,813)

-

-

Unrealized gain on warrants (Note 11(g))

(1,583)

-

-

(Increase) / Decrease

Accounts receivable, trade

256

(3,427)

1,568

Due from related parties

(252)

736

(56)

Inventories

(511)

1,768

(1,581)

Prepaid expenses and other assets

(1,950)

(1,265)

1,759

Other non-current assets

70

(16)

(1,177)

Investments in equity securities

(17,916)

Increase / (Decrease) 

Accounts payable, trade and other

(1,761)

1,465

1,219

Due to related parties

(57)

(72)

154

Accrued liabilities

282

3,956

(2,610)

Deferred revenue 

(4,195)

2,026

2,890

Other non-current liabilities

437

(218)

(57)

Drydock cost

(5,646)

(16,368)

(4,531)

Net Cash Provided by Operating Activities

$

70,380

$

158,859

$

89,705

 Cash Flows from Investing Activities: 

Payments to acquire vessels and vessel improvements (Notes

6 and 4(b))

(29,732)

(230,302)

(17,393)

Proceeds from sale of vessels, net of expenses (Note 6)

36,560

4,372

33,731

Payments to acquire investments (Note 4)

(10,595)

-

-

Time deposits

6,500

(46,500)

-

Payments to joint ventures

-

-

(375)

Payments to acquire other assets (Note 4(b))

(216)

-

-

Cash divested from deconsolidation (Note 4(b))

(771)

-

(1,000)

Proceeds from convertible loan with limited partnership (Note

4(b))

25,189

-

-

Payments to acquire property, furniture and fixtures (Note 7)

(2,006)

(667)

(1,600)

Net Cash Provided By/(Used in) Investing Activities

$

24,929

$

(273,097)

$

13,363

 Cash Flows from Financing Activities: 

Proceeds from issuance of long-term debt and finance liabilities

(Notes 8 and 9)

57,696

275,133

101,279

Proceeds from issuance of common stock (Note 11(e))

-

5,266

-

Payments for issuance of common stock (Note 11(e))

(79)

-

-

Proceeds from issuance of preferred stock, net of expenses

-

-

254

Payments of dividends, preferred stock (Note 11(b))

(5,769)

(5,769)

(5,769)

Payments of dividends, common stock (Note 11(f))

(41,427)

(79,812)

(8,820)

Payments for repurchase of common stock

-

(3,799)

(45,369)

Payments of financing costs (Notes 8 and 9)

(1,724)

(3,302)

(7,594)

Repayments of long-term debt and finance liabilities (Notes 8

and 9)

(79,842)

(102,839)

(93,170)

F-12

Net Cash Provided by/(Used In) Financing Activities

$

(71,145)

$

84,878

$

(59,189)

Cash, Cash Equivalents and Restricted Cash, Period

Increase/(Decrease)

24,164

(29,360)

43,879

Cash, Cash Equivalents and Restricted Cash, Beginning

Balance

97,428

126,788

82,909

Cash, Cash Equivalents and Restricted Cash, Ending

Balance

$

121,592

$

97,428

$

126,788

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Cash and cash equivalents

$

101,592

$

76,428

110,288

Restricted cash, non-current

20,000

21,000

16,500

Cash, Cash Equivalents and Restricted Cash, Total

$

121,592

$

97,428

$

126,788

SUPPLEMENTAL CASH FLOW INFORMATION

Non-cash acquisition of assets (Note 6)

$

7,809

$

136,038

-

Non-cash debt assumed

-

20,571

-

Non-cash Finance Liability

-

47,782

-

Stock issued in noncash financing activities (Note 6)

7,809

67,909

-

Non-cash investments acquired (Notes 6 and 5(a))

10,000

-

-

Noncash dividend (Note 11(f) and 11(g))

41,521

-

-

Transfer to Investments

-

1,370

441

Interest paid

$

46,473

$

21,306

19,608

The accompanying notes are an integral part of these consolidated financial statements.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-13

1. Basis of Presentation and General Information 

The accompanying consolidated financial statements include the accounts of Diana Shipping Inc., or DSI,

and its wholly owned subsidiaries (collectively, the “Company”). DSI was formed on

March 8, 1999

, as

Diana Shipping Investment Corp., under the laws of the Republic of Liberia. In February 2005, the

Company’s articles of incorporation were amended. Under the amended articles of incorporation, the

Company was renamed Diana Shipping Inc. and was re-domiciled from the Republic of Liberia to the

Republic of the Marshall Islands.

The Company is engaged in the ocean transportation of dry bulk cargoes worldwide through the ownership

and bareboat charter in of dry bulk carrier vessels. The Company operates its own fleet through Diana

Shipping Services S.A. (or “DSS”), a wholly owned subsidiary and through Diana Wilhelmsen Management

Limited, or DWM, a

50

% owned joint venture (Note 4(a)). The fees paid to DSS are eliminated in

consolidation.

2. Significant Accounting Policies

a) Principles of Consolidation

: The accompanying consolidated financial statements have been

prepared in accordance with U.S. generally accepted accounting principles and include the accounts of

Diana Shipping Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have

been eliminated upon consolidation. Under Accounting Standards Codification (“ASC”) 810

“Consolidation”, the Company consolidates entities in which it has a controlling financial interest, by first

considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is

deemed to be the primary beneficiary under the VIE model, or if the Company controls an entity through a

majority of voting interest based on the voting interest model. The Company evaluates financial

instruments, service contracts, and other arrangements to determine if any variable interests relating to an

entity exist. For entities in which the Company has a variable interest, the Company determines if the entity

is a VIE by considering whether the entity’s equity investment at risk is sufficient to finance its activities

without additional subordinated financial support and whether the entity’s at-risk equity holders have the

characteristics of a controlling financial interest. In performing the analysis of whether the Company is the

primary beneficiary of a VIE, the Company considers whether it individually has the power to direct the

activities of the VIE that most significantly affect the entity’s performance and also has the obligation to

absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. If

the Company holds a variable interest in an entity that previously was not a VIE, it reconsiders whether the

entity has become a VIE.

b) Use of Estimates:

The preparation of consolidated financial statements in conformity with U.S.

generally accepted accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at

the date of the consolidated financial statements and the reported amounts of revenues and expenses

during the reporting period. Actual results could differ from those estimates.

c) Other Comprehensive Income / (Loss):

The Company separately presents certain transactions,

which are recorded directly as components of stockholders’ equity. Other Comprehensive Income / (Loss)

is presented in a separate statement.

d) Foreign Currency Translation:

The functional currency of the Company is the U.S. dollar because

the Company’s vessels operate in international shipping markets, and therefore primarily transact business

in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving

other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-14

time of the transactions. At the balance sheet dates, monetary assets and liabilities which are denominated

in other currencies are translated into U.S. dollars at the year-end exchange rates. Resulting gains or

losses are included in other operating (income)/loss in the accompanying consolidated statements of

operations.

e) Cash, Cash Equivalents and Time Deposits:

The Company considers highly liquid investments

such as time deposits, certificates of deposit and their equivalents with an original maturity of up to about

three months to be cash equivalents. Time deposits with maturity above three months are removed from

cash and cash equivalents and are separately presented as time deposits. Restricted cash consists mainly

of cash deposits required to be maintained at all times under the Company’s loan facilities (Note 8). As of

December 31, 2023 and 2022, accrued interest income amounted to $

1,206

 and $

578

, respectively and is

included in prepaid expenses and other assets in the accompanying consolidated balance sheets.

f) Accounts Receivable, Trade:

The amount shown as accounts receivable, trade, at each balance

sheet date, includes receivables from charterers for hire from lease agreements, net of provisions for

doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed

individually for purposes of determining the appropriate provision for doubtful accounts. As of December

31, 2023 and 2022 there was

no

 provision for doubtful accounts. The Company does not recognize interest

income on trade receivables as all balances are settled within a year.

g) Inventories:

Inventories consist of lubricants and victualling which are stated, on a consistent

basis, at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the

ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When evidence exists that the net realizable value of inventory is lower than its cost, the difference is

recognized as a loss in earnings in the period in which it occurs. Cost is determined by the first in, first out

method. Amounts removed from inventory are also determined by the first in first out method. Inventories

may also consist of bunkers, when on the balance sheet date, a vessel is without employment. Bunkers, if

any, are also stated at the lower of cost or net realizable value and cost is determined by the first in, first

out method.

h) Vessel Cost

: Vessels are stated at cost which consists of the contract price and any material

expenses incurred upon acquisition or during construction. Expenditures for conversions and major

improvements are also capitalized when they appreciably extend the life, increase the earning capacity or

improve the efficiency or safety of the vessels; otherwise, these amounts are charged to expense as

incurred. Interest cost incurred during the assets' construction periods that theoretically could have been

avoided if expenditure for the assets had not been made is also capitalized. The capitalization rate, applied

on accumulated expenditures for the vessel, is based on interest rates applicable to outstanding borrowings

of the period.

i) Vessels held for sale:

 The Company classifies assets as being held for sale when the respective

criteria are met. Long-lived assets or disposal groups classified as held for sale are measured at the lower

of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet

the criteria to be held for sale. The fair value less cost to sell of an asset held for sale is assessed at each

reporting period it remains classified as held for sale. When the plan to sell an asset changes, the asset is

reclassified as held and used, measured at the lower of its carrying amount before it was recorded as held

for sale, adjusted for depreciation, and the asset’s fair value at the date of the decision not to sell.

j) Sale and leaseback:

 In accordance with ASC 842-40 in a sale-leaseback transaction where the

sale of an asset and leaseback of the same asset by the seller is involved, the Company, as seller-lessee,

should firstly determine whether the transfer of an asset shall be accounted for as a sale under ASC 606.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-15

For a sale to have occurred, the control of the asset would need to be transferred to the buyer and the

buyer would need to obtain substantially all the benefits from the use of the asset. As per the

aforementioned guidance, sale and leaseback transactions, which include an obligation for the Company,

as seller-lessee, to repurchase the asset, or other situations where the leaseback would be classified as a

finance lease, are determined to be failed sales under ASC 842-40. Consequently, the Company does not

derecognize the asset from its balance sheet and accounts for any amounts received under the sale and

leaseback agreement as a financing arrangement.

k) Property and equipment:

 The Company owns the land and building where its offices are located.

The Company also owns part of a plot acquired for office use (Note 7). Land is stated at cost and it is not

subject to depreciation. The building has an estimated useful life of

55 years

 with

no

 residual value.

Furniture, office equipment and vehicles have a useful life of

5 years

, except for a car owned by the

Company, which has a useful life of

10 years

. Computer software and hardware have a useful life of

three

years

. Depreciation is calculated on a straight-line basis.

l) Impairment of Long-Lived Assets:

Long-lived assets are reviewed for impairment whenever

events or changes in circumstances (such as market conditions, obsolesce or damage to the asset,

potential sales and other business plans) indicate that the carrying amount of an asset may not be

recoverable. When the estimate of undiscounted projected net operating cash flows, excluding interest

charges, expected to be generated by the use of an asset over its remaining useful life and its eventual

disposition is less than its carrying amount, the Company evaluates the asset for impairment loss.

Measurement of the impairment loss is based on the fair value of the asset, determined mainly by third

party valuations. 

For vessels, the Company calculates undiscounted projected net operating cash flows by considering the

historical and estimated vessels’ performance and utilization with the significant assumption being future

charter rates for the unfixed days, using the most recent

10

-year average of historical 1 year time charter

rates available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10

-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. Other assumptions used in

developing estimates of future undiscounted cash flow are charter rates calculated for the fixed days using

the fixed charter rate of each vessel from existing time charters, the expected outflows for scheduled

vessels’ maintenance; vessel operating expenses; fleet utilization, and the vessels’ residual value if sold

for scrap. Assumptions are in line with the Company’s historical performance and its expectations for future

fleet utilization under its current fleet deployment strategy. This calculation is then compared with the

vessels’ net book value plus unamortized deferred costs. The difference between the carrying amount of

the vessel plus unamortized deferred costs and their fair value is recognized in the Company's accounts

as impairment loss.

The Company’s impairment assessment did not result in the

recognition of impairment

 on any vessel and

therefore

no

 impairment loss was identified or recorded in 2023, 2022 and 2021.

For property and equipment, the Company determines undiscounted projected net operating cash flows

by considering an estimated monthly rent the Company would have to pay in order to lease a similar

property, during the useful life of the building. No impairment loss was identified or recorded for 2023, 2022

and 2021 and the Company has not identified any other facts or circumstances that would require the write

down of the value of its land or building in the near future.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-16

m) Vessel Depreciation:

Depreciation is computed using the straight-line method over the estimated

useful life of the vessels, after considering the estimated salvage (scrap) value. Each vessel’s salvage

value is equal to the product of its lightweight tonnage and estimated scrap rate. Management estimates

the useful life of the Company’s vessels to be

25 years

 from the date of initial delivery from the shipyard.

Second-hand vessels are depreciated from the date of their acquisition through their remaining estimated

useful life. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its

remaining useful life is adjusted at the date such regulations are adopted.

Effective July 1, 2023, the

Company changed its estimated scrap rate of its vessels from $250 per lightweight ton to $400 per

lightweight ton, calculated based on the average demolition prices in different markets, during the last 15

years.

 For the period from July 1, 2023 to December 31, 2023, this increase in vessels’ salvage values

resulted in decreased depreciation expense, increased operating income and increased net income by

$

3,773

 and increased earnings per share, basic and diluted, by $

0.04

.

n) Deferred Costs

: The Company follows the deferral method of accounting for dry-docking and

special survey costs whereby actual costs incurred are deferred and amortized on a straight-line basis over

the period through the date the next survey is scheduled to become due. Unamortized deferred costs of

vessels that are sold or impaired are written off and included in the calculation of the resulting gain or loss

in the year of the vessel’s sale (Note 6) or impairment.

o) Financing Costs

: Fees paid for obtaining finance liabilities, fees paid to lenders for obtaining new

loans, new bonds, or refinancing existing ones accounted as loan modification, are deferred and recorded

as a contra to debt. Other fees paid for obtaining loan facilities not used at the balance sheet date are

deferred. Fees relating to drawn loan facilities are amortized to interest and finance costs over the life of

the related debt using the effective interest method and fees incurred for loan facilities not used at the

balance sheet date are amortized using the straight-line method according to their availability terms.

Unamortized fees relating to loans or bonds repaid or repurchased or refinanced as debt extinguishment

are written off in the period the repayment, prepayment, repurchase or extinguishment is made and

included in the determination of gain/loss on debt extinguishment. Loan commitment fees are expensed in

the period incurred, unless they relate to loans obtained to finance vessels under construction, in which

case, they are capitalized to the vessels’ cost.

p) Concentration of Credit Risk

: Financial instruments, which potentially subject the Company to

significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The

Company places its temporary cash investments, consisting mostly of deposits, with various qualified

financial institutions and performs periodic evaluations of the relative credit standing of those financial

institutions that are considered in the Company’s investment strategy. The Company limits its credit risk

with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and

generally does not require collateral for its accounts receivable and does not have any agreements to

mitigate credit risk.

q) Accounting for Revenues and Expenses:

Revenues are generated from time charter

agreements which contain a lease as they meet the criteria of a lease under ASC 842. Agreements with

the same charterer are accounted for as separate agreements according to their specific terms and

conditions. All agreements contain a minimum non-cancellable period and an extension period at the option

of the charterer. Each lease term is assessed at the inception of that lease. Under a time charter agreement,

the charterer pays a daily hire for the use of the vessel and reimburses the owner for hold cleanings, extra

insurance premiums for navigating in restricted areas and damages caused by the charterers. Revenues

from time charter agreements providing for varying annual rates are accounted for as operating leases and

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-17

thus recognized on a straight-line basis over the non-cancellable rental periods of such agreements, as

service is performed. The charterer pays to third parties port, canal and bunkers consumed during the term

of the time charter agreement, unless they are for the account of the owner, in which case, they are included

in voyage expenses. Voyage expenses also include commissions on time charter revenue (paid to the

charterers, the brokers and the managers) and gain or loss from bunkers resulting mainly from the

difference in the value of bunkers paid by the Company when the vessel is redelivered to the Company

from the charterer under the vessel’s previous time charter agreement and the value of bunkers sold by

the Company when the vessel is delivered to a new charterer (Note 12). Under a time charter agreement,

the owner pays for the operation and the maintenance of the vessel, including crew, insurance, spares and

repairs, which are recognized in operating expenses. The Company, as lessor, has elected not to allocate

the consideration in the agreement to the separate lease and non-lease components (operation and

maintenance of the vessel) as their timing and pattern of transfer to the charterer, as the lessee, are the

same and the lease component, if accounted for separately, would be classified as an operating lease.

Additionally, the lease component is considered the predominant component, as the Company has

assessed that more value is ascribed to the vessel rather than to the services provided under the time

charter contracts. In time charter agreements apart from the agreed hire rate, the Company may be entitled

to an additional income, such as ballast bonus. Ballast bonus is paid by charterers for repositioning the

vessel. The Company analyzes terms of each contract to assess whether income from ballast bonus is

accounted together with the lease component over the duration of the charter or as service component

under ASC 606. Deferred revenue includes cash received prior to the balance sheet date for which all

criteria to recognize as revenue have not been met.

r) Repairs and Maintenance:

 All repair and maintenance expenses including underwater inspection

expenses are expensed in the year incurred. Such costs are included in vessel operating expenses in the

accompanying consolidated statements of operations.

s) Earnings / (loss) per Common Share:

 Basic earnings / (loss) per common share are computed

by dividing net income / (loss) available to common stockholders by the weighted average number of

common shares outstanding during the year. Shares issuable at little or no cash consideration upon

satisfaction of certain conditions, are considered outstanding and included in the computation of basic

earnings/(loss) per share as of the date that all necessary conditions have been satisfied. Diluted earnings

per common share, reflects the potential dilution that could occur if securities or other contracts to issue

common stock were exercised.

t) Segmental Reporting:

The Company engages in the operation of dry-bulk vessels which has been

identified as one reportable segment. The operation of the vessels is the main source of revenue

generation, the services provided by the vessels are similar and they all operate under the same economic

environment. Additionally, the vessels do not operate in specific geographic areas, as they trade worldwide;

they do not trade in specific trade routes, as their trading (route and cargo) is dictated by the charterers;

and the Company does not evaluate the operating results for each type of dry bulk vessels (i.e. Panamax,

Capesize etc.) for the purpose of making decisions about allocating resources and assessing performance.

u) Fair Value Measurements

: The Company classifies and discloses its assets and liabilities carried

at fair value in one of the following categories: Level 1: Quoted market prices in active markets for identical

assets or liabilities; Level 2: Observable market-based inputs or unobservable inputs that are corroborated

by market data; Level 3: Unobservable inputs that are not corroborated by market data.

v) Share Based Payments:

 The Company issues restricted share awards which are measured at

their grant date fair value and are not subsequently re-measured. That cost is recognized over the period

during which an employee is required to provide service in exchange for the award—the requisite service

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-18

period (usually the vesting period). No compensation cost is recognized for equity instruments for which

employees do not render the requisite service unless the board of directors determines otherwise.

Forfeitures of awards are accounted for when and if they occur. If an equity award is modified after the

grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair

value of the modified award over the fair value of the original award immediately before the modification.

w) Equity method investments:

 Investments in common stock in entities over which the Company

exercises significant influence but does not exercise control are accounted for by the equity method of

accounting. Under this method, the Company records such an investment at cost (or fair value if a

consequence of deconsolidation) and adjusts the carrying amount for its share of the earnings or losses of

the entity subsequent to the date of investment and reports the recognized earnings or losses in income.

Dividends received, if any, reduce the carrying amount of the investment and are recorded as receivable

on dividend declaration. When the carrying value of an equity method investment is reduced to zero

because of losses, the Company does not provide for additional losses unless it is committed to provide

further financial support to the investee. The Company also evaluates whether a loss in value of an

investment that is other than a temporary decline should be recognized. Evidence of a loss in value might

include absence of an ability to recover the carrying amount of the investment or inability of the investee to

sustain an earnings capacity that would justify the carrying amount of the investment. For equity method

investments that the Company has elected to account for using the fair value option, all subsequent

changes in fair value are included in gain/loss on related party investments.

x) Going concern:

Management evaluates, at each reporting period, whether there are conditions or

events that raise substantial doubt about the Company's ability to continue as a going concern within one

year from the date the financial statements are issued.

y) Shares repurchased and retired:

The Company’s shares repurchased for retirement, are

immediately cancelled and the Company’s share capital is accordingly reduced. Any excess of the cost of

the shares over their par value is allocated in additional paid-in capital, in accordance with ASC 505-30-

30, Treasury Stock.

z) Financial Instruments, credit losses

: At each reporting date, the Company evaluates its financial

assets individually for credit losses and presents such assets in the net amount expected to be collected

on such financial asset. When financial assets present similar risk characteristics, these are evaluated on

a collective basis. When developing an estimate of expected credit losses, the Company considers

available information relevant to assessing the collectability of cash flows such as internal information, past

events, current conditions and reasonable and supportable forecasts. As of December 31, 2021, the

Company assessed the financial condition of DWM, changed its estimate on the recoverability of its

receivable due from DWM relating to the fine paid by the Company on behalf of DWM (Notes 4(a)) and

determined that part of the amount may not be recoverable. As a result, the Company recorded as of

December 31, 2021, an allowance for credit losses amounting to $

300

, based on probability of default as

there was no previous loss record. The allowance for credit losses was included in other operating

(income)/loss in the 2021 accompanying consolidated statements of income. The allowance was reversed

in 2022 as the full amount was recovered and its reversal is included in other operating (income)/loss” in

the 2022 accompanying consolidated statements of operations.

No

 credit losses were identified and

recorded in 2023 and 2022.

aa) Financial Instruments, Investments-Equity Securities, Recognition and Measurement

: The

Company initially recognizes equity securities at the transaction price. Equity Investments with readily

determinable fair values are subsequently measured at fair value through net income. Unrealized holding

gains and losses for these securities are recorded in earnings. According to ASC 321-10-35-2, the

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-19

Company has elected to measure equity securities without a readily determinable fair value, that do not

qualify for the practical expedient in ASC 820

Fair Value Measurement

to estimate fair value using the NAV

per share (or its equivalent), at its cost minus impairment, if any. If the Company identifies observable price

changes in orderly transactions for the identical or a similar investment of the same issuer, it shall measure

equity securities at fair value as of the date that the observable transaction occurred. The Company shall

continue to apply this measurement until the investment does not qualify to be measured in accordance

with this paragraph. At each reporting period, the Company reassesses whether an equity investment

without a readily determinable fair value qualifies to be measured in accordance with this paragraph. The

Company may subsequently elect to measure equity securities at fair value and the election to measure

securities at fair value shall be irrevocable. Any resulting gains or losses on the securities for which that

election is made shall be recorded in earnings at the time of the election. At each reporting period, the

Company also evaluates indicators such as the investee’s performance and its ability to continue as going

concern and market conditions, to determine whether an investment is impaired in which case, the

Company will estimate the fair value of the investment to determine the amount of the impairment loss.

ab) Non-monetary transactions and spinoffs:

Non-monetary transactions are recorded based on the

fair values of the assets (or services) involved unless the fair value of neither the asset received, nor the

asset relinquished is determinable within reasonable limits. Also, under ASC 845-10-30-10 Nonmonetary

Transactions, Overall, Initial Measurement, Nonreciprocal Transfers with Owners and ASC 505-60 Spinoffs

and Reverse Spinoffs, if the pro-rata spinoff of a consolidated subsidiary or equity method investee does

not meet the definition of a business under ASC 805, the nonreciprocal transfer of nonmonetary assets is

accounted for at fair value, if the fair value of the nonmonetary asset distributed is objectively measurable

and would be clearly realizable to the distributing entity in an outright sale at or near the time of the

distribution, and the spinor recognizes a gain or loss for the difference between the fair value and book

value of the spinee. A transaction is considered pro rata if each owner receives an ownership interest in

the transferee in proportion to its existing ownership interest in the transferor (even if the transferor retains

an ownership interest in the transferee). In accordance with ASC 805 Business Combinations: Clarifying

the Definition of a Business, if substantially all of the fair value of the gross assets distributed in a spinoff

are concentrated in a single identifiable asset or group of similar identifiable assets, then the spinoff of a

consolidated subsidiary does not meet the definition of a business. Other nonreciprocal transfers of

nonmonetary assets to owners are accounted for at fair value if the fair value of the nonmonetary asset

distributed is objectively measurable and would be clearly realizable to the distributing entity in an outright

sale at or near the time of the distribution.

ac) Contracts in entity’s equity:

 Under ASC 815-40 contracts that require settlement in shares are

considered equity instruments, unless an event that is not in the entity’s control would require net cash

settlement. Additionally, the entity should have sufficient authorized and unissued shares, the contract

contains an explicit share limit, there is no requirement to net cash settle the contract in the event the entity

fails to make timely filings with the Securities and Exchange Commission (SEC) and there are no cash

settled top-off or make-whole provisions. The Company follows the provision of ASC 480 “Distinguishing

Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine the classification of certain

freestanding financial instruments as permanent equity, temporary equity or liability. The Company, when

assessing the accounting of the warrants and the pre-funded warrants, takes into consideration ASC 480

to determine whether the warrants and the pre-funded warrants should be classified as permanent equity

instead of temporary equity or liability. The Company further analyses the key features of the warrants and

the pre-funded warrants and examines whether these fall under the definition of a derivative according to

ASC 815 applicable guidance or whether certain of these features affect the classification. In cases when

derivative accounting is deemed inappropriate, no bifurcation of these features is performed.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-20

ad) Guarantees:

Guarantees issued by the Company, excluding those that guarantee its own

performance, are recognized at fair value at the time the guarantees are issued, or upon deconsolidation

of a subsidiary. A liability for the fair value of the obligation undertaken in issuing the guarantee is

recognized. If it becomes probable that the Company will have to perform under a guarantee (Note 10(c)),

the Company will recognize an additional liability if the amount of the loss can be reasonably estimated.

The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a

subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the

fair value recognition provision of the liability, financial statement disclosures of such items are made.

3. Transactions with related parties

a) Altair Travel Agency S.A. (“Altair”):

 The Company uses the services of an affiliated travel agent,

Altair, which is controlled by the Company’s Chairman of the Board Mr. Palios and the Company’s CEO

Mrs. Semiramis Paliou. Travel expenses for 2023, 2022 and 2021 amounted to $

2,525

, $

2,644

 and $

2,210

,

respectively, and are mainly included in vessel operating expenses and general and administrative

expenses in the accompanying consolidated financial statements. As of December 31, 2023 and 2022, an

amount of $

62

 and $

136

, respectively, was payable to Altair and is included in “Due to related parties” in

the accompanying consolidated balance sheets. 

b) Steamship Shipbroking Enterprises Inc. or Steamship:

 Steamship is a company controlled by

the Company’s CEO Mrs. Semiramis Paliou and provides brokerage services to DSI for a fixed monthly

fee plus commission on the sale of vessels, pursuant to a Brokerage Services Agreement. For 2023, 2022

and 2021 brokerage fees amounted to $

3,900

, $

3,309

 and $

3,309

, respectively, and are included in general

and administrative expenses in the accompanying consolidated statements of income. For 2023, 2022,

and 2021, commissions to Steamship amounted to $

906

, $

1,219

 and $

712

, respectively and are included

in gain on the sale of vessels, vessel cost and equity method investments. As of December 31, 2023 and

2022, an amount of $

697

 and $

0

, respectively, was due to Steamship.

4. Equity Method Investments

a) Diana Wilhelmsen Management Limited, or DWM:

 DWM is a joint venture between Diana Ship

Management Inc., a wholly owned subsidiary of DSI, and Wilhelmsen Ship Management Holding AS, an

unaffiliated third party, each holding

50

% of DWM. As of December 31, 2023 and 2022, the investment in

DWM amounted to $

734

 and $

506

 and is included in equity method investments in the accompanying

consolidated balance sheets. In 2023 and 2022, the investment in DWM resulted in a gain of $

228

, and

$

894

, respectively, and in 2021, resulted in a loss of $

333

, included in loss from equity method investments

in the accompanying consolidated statements of income.

From October 8, 2019 until May 24, 2021, DSS outsourced the management of certain vessels to DWM

for which DSS was paying a fixed monthly fee per vessel and a percentage of those vessels’ gross

revenues. On May 24, 2021, the management of the same vessels was transferred to DWM directly,

whereas the vessel owning companies of these vessels entered into new management agreements with

DWM under which they pay a fixed monthly fee and a percentage of their gross revenues. Management

fees to DWM in 2023, 2022 and 2021 amounted to $

1,313

, $

511

 and $

1,432

, respectively, and are

separately presented as management fees to related party in the accompanying consolidated statements

of income. Additionally, in 2023 and 2022, the Company paid to DWM management fees amounting to $

19

and $

272

, respectively, included in advances for vessel acquisitions and vessels, net, relating to the

management of four Ultramax vessels the Company assigned to DWM with new management agreements

and incurred during the predelivery period of the vessels. Commissions for 2023, 2022 and 2021 amounted

to $

390

, $

162

 and $

200

, respectively, and are included in voyage expenses (Note 12). As of December

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-21

31, 2023 and 2022, there was an amount of $

25

 and $

216

 due from DWM, included in due from related

parties in the accompanying consolidated balance sheets. 

b) Bergen Ultra LP, or Bergen:

 Bergen is a limited partnership which was established for the purpose

of acquiring, owning, chartering and/or operating a vessel. Bergen was a wholly owned subsidiary of Diana,

which on February 14, 2023, signed a Memorandum of Agreement to acquire for $

27,900

, from an

unrelated third-party an Ultramax dry bulk vessel, delivered on April 10, 2023. On March 30, 2023, Bergen

entered into a loan agreement with Nordea for a $

15,400

 loan to finance part of the purchase price of the

vessel. On the same date, the Company entered into a corporate guarantee with Nordea to secure

Bergen’s obligations under the loan. On April 28, 2023, the Company entered into (i) an investment

agreement with an unrelated third party to acquire

75

% of the limited partnership interests, for $

11,025

; (ii)

an amended limited partnership agreement under which the Company acts as the General Partner of the

partnership through its wholly owned subsidiary Diana General Partner Inc.; (iii) an administrative service

agreement under which DSS provides administrative services to Bergen for an annual fee of $

15

; (iv) a

commission agreement under which the Company is paid a commission of

0.8

% per annum, on the

outstanding balance of the loan, as compensation for the guarantee it provided to Nordea and (v) a

convertible loan agreement for $

27,900

 plus other expenses, with Bergen under which Bergen would have

to repay all expenditures made by the Company for the acquisition of the vessel. Pursuant to the terms of

the convertible loan, on April 28, 2023, the Company received from Bergen $

25,189

 in cash while an

amount of $

3,675

 was converted into partnership interests in Bergen, representing

25

% of the total

partnership interests.

Upon the provisions of the amended partnership agreement, the general partner irrevocably delegated the

authority to Bergen’s board of directors to have the power to oversee and direct the operations,

management and policies of Bergen. The Company evaluated its variable interests in Bergen under ASC

810 and concluded that Bergen is a VIE and that the Company does not individually have the power to

direct the activities of the VIE that most significantly affect the partnership’s performance. From April 28,

2023 the Company no longer retains the power to control the board of directors. As of the same date,

Bergen has been considered as an affiliate entity and not as a controlled subsidiary of the Company. The

Company accounted for the deconsolidation of Bergen in accordance with ASC 610 and the retained

noncontrolling interest of

25

% was accounted for under the equity method due to the Company’s significant

influence over Bergen.

On the date of deconsolidation, the Company measured the fair value of the retained noncontrolling interest

at $

4,519

 through Level 2 inputs of the fair value hierarchy. The Company in order to calculate the fair

value of its

25

% interest in accordance with ASC 610, took into consideration the fair value of the distinct

assets and liabilities of Bergen on the date of the deconsolidation. This resulted in gain on deconsolidation

amounting to $

844

, separately presented in the accompanying 2023 consolidated statement of income,

being the difference between the fair value of the retained noncontrolling interest plus the carrying value

the liabilities assumed by Bergen and the carrying value of the assets derecognized.

For 2023, the investment in Bergen resulted in gain of $

181

 and is included in loss from equity method

investments in the 2023 accompanying consolidated statement of income. As of December 31, 2023, the

investment in Bergen amounted to $

4,700

 and is included in equity method investments in the

accompanying 2023 consolidated balance sheet. Also, for 2023, income from management fees from

Bergen amounted to $

10

, included in time charter revenues and income from the commission paid on the

loan guarantee amounted to $

28

, included in interest and other income in the 2023 accompanying

consolidated statement of income. As of December 31, 2023, there was an amount of $

443

 due from

Bergen included in due from related parties, current and non-current.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-22

c) Windward Offshore GmbH, or Windward:

 On November 7, 2023, the Company through its wholly

owned subsidiary Diana Energize Inc., or Diana Energize, entered into a joint venture agreement, with

two

unrelated companies to form Windward Offshore GmbH & Co. KG or Windward, based in Germany, for the

purpose of establishing and operating an offshore wind vessel company with the aim of becoming a leading

provider of service vessels to the growing offshore wind industry and acquire certain vessels. Diana

Energize agreed to contribute

25,000,000

 Euro, being

45.45

% of the limited partnership’s capital and as of

December 31, 2023, the investment amounted to $

10,063

 mainly consisting of advances to fund the

construction of

two

 vessels and working capital. For 2023, the investment in Windward resulted in a loss

of $

671

 and is included in loss from equity method investments in the 2023 accompanying consolidated

statement of income.

d) Cohen Global Maritime Inc., or Cohen:

 On September 12, 2023, the Company through its wholly

owned subsidiary Cebu Shipping Company Inc., or Cebu, acquired

24

% of Cohen, a company organized

in the Republic of the Philippines for the purpose of engaging in the manning agency business. As of

December 31, 2023, the Company’s investment in Cohen amounted to $

272

, consisting of advances paid

to acquire the license required to engage in the manning agency business.

5. Investments in related parties and other

a) OceanPal Inc., or OceanPal:

 As of December 31, 2023 and 2022, the Company was the holder

of

500,000

 Series B Preferred Shares and

207

 and

10,000

, respectively, of Series C Convertible Preferred

Shares of OceanPal. 

Series B preferred shares entitle the holder to

2,000

 votes on all matters submitted to vote of the

stockholders of the Company, provided however, that the total number of votes shall not exceed

34

% of

the total number of votes, provided further, that the total number of votes entitled to vote, including common

stock or any other voting security, would not exceed

49

% of the total number of votes. Series B Preferred

Shares have no dividend or distribution rights.

Series C preferred shares do not have voting rights unless related to amendments of the Articles of

Incorporation that adversely alter the preference, powers or rights of the Series C Preferred Shares or to

issue Parity Stock or create or issue Senior Stock.

 Series C preferred shares have a liquidation preference

equal to the stated value of $

1,000

 and are convertible into common stock at the Company’s option

commencing upon the first anniversary of the issue date, at a conversion price equal to the lesser of $

6.5

and the 10-trading day trailing VWAP of OceanPal’s common shares, subject to adjustments. Dividends

on each share of Series C Preferred Shares are cumulative and accrue at the rate of

8

% per annum.

Dividends are payable in cash or, at OceanPal’s election, in kind.

On October 17, 2023, the Company converted

9,793

 of the

10,000

 Series C Preferred shares of OceanPal

to

3,649,474

 common shares, having a fair value of $

9,160

 determined through Level 1 inputs of the fair

value hierarchy, based on the closing price of OceanPal’s common shares on the date of conversion. Upon

conversion the Company realized a gain of $

1,742

, being the difference between the book value of the

9,793

 Series C Preferred shares and the fair value of the common shares acquired and is included in gain

on related party investments, separately presented in the accompanying consolidated statements of

income. Following the conversion, the Company is the beneficial owner of

49

% of the outstanding common

stock of OceanPal and since the shares are listed at NASDAQ, the Company elected to account for its

common stock ownership in OceanPal at fair value. 

As of December 31, 2023, the Company’s investment in the common stock of OceanPal amounted to

$

8,138

, being the fair value of OceanPal’s common shares on that date, determined through Level 1 inputs

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-23

of the fair value hierarchy, and the Company recorded an unrealized loss on investment of $

1,022

, included

in gain on related party investments, separately presented in the accompanying consolidated statements

of income.

As the Company applied the fair value option to its investment in the common shares of OceanPal that

would otherwise be accounted for under the equity method of accounting, it also applied fair value to all of

its financial interests in OceanPal, being the

Series B preferred shares and Series C preferred shares which

until then, the Company applied the guidance for equity securities without readily determinable fair values.

As of December 31, 2023 and 2022, the Company’s investment in Series B preferred shares and Series C

preferred shares, amounted to $

180

 and $

7,744

, respectively, including $

3

 and $

169

, respectively,

dividends receivable on the Series C preferred shares, and are separately presented in investments in

related parties in the accompanying consolidated balance sheets. As of December 31, 2023, the Company

recorded a gain of $

21

, presented in gain on related party Investments, being the difference between the

book value of the investments and the fair value determined through Level 3 inputs of the fair value

hierarchy, by using the income approach, taking into account the present value of the future cash flows,

the holder of shares would expect to receive from holding the equity instrument.

On September 20, 2022, the Company acquired

25,000

 OceanPal Cumulative Convertible Series D

Preferred Shares, par value $

0.01

 per share, as part of the consideration provided to the Company for the

sale of Baltimore to OceanPal, pursuant to a Memorandum of Agreement dated June 13, 2022 (Note 6).

Similarly, on February 8, 2023, the Company acquired

13,157

 shares of OceanPal Series D Cumulative

Convertible Preferred Shares, as part of the consideration provided to the Company for sale of Melia to

OceanPal, pursuant to a Memorandum of Agreement dated February 1, 2023 (Note 6).

Series D preferred shares were convertible into common stock at the holder’s option, at a conversion price

equal to the 10-trading day trailing VWAP of OceanPal’s common shares, provided however that the holder

would not beneficially own greater than

49

% of OceanPal’s outstanding shares of common stock. Series

D preferred shares have no voting rights; dividends were cumulative, accruing at the rate of

7

% per annum,

payable in cash or, at OceanPal’s election, in PIK shares (Series D Preferred shares issued to the holder

in lieu of cash dividends); and they had a liquidation preference equal $

1,000

 per share. 

On the date of issuance, the Company measured its investments on Series D preferred shares at their fair

value and elected to subsequently measure such investments in accordance with paragraph ASC 321-10-

35-2 (Note 2(aa)). The fair value of Series D Preferred Shares was determined by taking into consideration

a third-party valuation which was based on the income approach, taking into account the present value of

the future cash flows the Company expects to receive from holding the equity instrument. 

On December 15, 2022, the Company distributed the

25,000

 Series D Preferred Shares as non-cash

dividend to its shareholders of record on November 28, 2022. The shareholders had the option to receive

Series D Preferred Shares or common shares of OceanPal at the conversion rate determined before

distribution according to the terms of the designation statement. The Company accounted for the

transaction as a nonreciprocal transfer with its owners in accordance with ASC 845 and measured their

fair value on the date of declaration at $

18,189

. The fair value of the Series D Preferred Shares was

determined by using the income approach, taking into account the present value of the future cash flows,

the holder of shares would expect to receive from holding the equity instrument. This resulted in gain of

$

589

, being the difference between the fair value and the carrying value of the investment and is separately

presented as Gain on related party investments in the accompanying consolidated statements of income.

On June 9, 2023, the Company distributed the

13,157

 Series D Preferred Shares as a non-cash dividend

to its shareholders of record on April 24, 2023. The Company accounted for the transaction as a

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-24

nonreciprocal transfer with its owners in accordance with ASC 845 and measured the fair value of the

preferred shares on the date of declaration at $

10,761

. The fair value of the Series D Preferred Shares

was determined by using the income approach, taking into account the present value of the future cash

flows, the holder of shares would expect to receive from holding the equity instrument. This resulted in gain

of $

761

, being the difference between the fair value and the carrying value of the investment and is

separately presented as gain on related party investment in the 2023 accompanying consolidated

statement of income.

For 2023, 2022 and 2021, dividend income from the Series C and Series D OceanPal preferred shares

amounted to $

801

, $

917

 and $

69

, respectively, included in interest and other income in the accompanying

consolidated statements of income.

b) Investment in equity securities:

 During 2023, the Company acquired equity securities of an entity

listed in the NYSE which as of December 31, 2023 had a fair value of $

20,729

. The equity securities were

initially recorded at cost amounting to $

17,916

 and measured subsequently at fair value, since their fair

values were readily determinable, determined through Level 1 of the fair value hierarchy. The securities

are considered marketable securities that are available to be converted into cash to fund current operations

and classified in current assets in the accompanying 2023 consolidated balance sheet. Unrealized gain on

the investment amounted to $

2,813

 and is separately presented in unrealized gain on equity securities in

the accompanying consolidated statements of income.

6. Advances for vessel acquisitions and Vessels, net

Vessel Acquisitions

On July 15, 2021 the Company agreed to acquire from an unaffiliated third party, the 2011 built Kamsarmax

dry bulk vessel

Leonidas P.C.

, for a purchase price of $

22,000

, delivered on February 16, 2022. The

Company incurred $

927

 of additional predelivery expenses.

On December 3, 2021, the Company agreed to acquire from an unaffiliated third party, the Capesize dry

bulk vessel

Florida,

 for a purchase price of $

59,275

, delivered on March 29, 2022. The Company incurred

$

1,504

 of additional predelivery expenses.

On August 10, 2022, the Company entered into a master agreement with Sea Trade Holdings Inc. (or “Sea

Trade”), an unaffiliated third party, to acquire nine Ultramax vessels for an aggregate purchase price of

$

330,000

, of which $

220,000

 would be paid in cash and $

110,000

 through an aggregate of

18,487,393

newly issued common shares of the Company, issuable on the delivery of each vessel. In the fourth quarter

of 2022, the Company took delivery of

eight

 vessels for $

195,810

 in cash and

16,453,780

 newly issued

common shares having a fair value of $

67,909

 (Notes 11 and 16). The Company also incurred $

4,364

 of

additional predelivery expenses. 

On January 30, 2023, the Company took delivery of the ninth vessel for $

23,955

 in cash and

2,033,613

newly issued common shares, having a fair value of $

7,809

. Part of the purchase price of the vessel and

additional predelivery expenses were already paid in 2022 and presented as of December 31, 2022 in

advances for vessel acquisitions in the accompanying consolidated balance sheet. The Company incurred

$

555

 of additional predelivery expenses.

The value of the shares issued in 2022 and in 2023, was determined through Level 1 inputs of the fair value

hierarchy based on the closing price of the Company’s common stock on the date of issuance which was

the date of delivery of each vessel. 

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-25

On February 14, 2023, the Company signed a Memorandum of Agreement to acquire from an unaffiliated

third-party an Ultramax dry bulk vessel for a purchase price of $

27,900

. On April 28, 2023, the vessel’s

ship owning company was deconsolidated from the Company’s financial statements due to the Company’s

loss of control described in note 4(b) and the net book value of the vessel amounting to $

27,908

 is included

in both vessel acquisitions and vessel disposals. 

Vessel Disposals

On June 13, 2022, the Company sold to OceanPal, the vessel

Baltimore

, for a sale price of $

22,000

 of

which $

4,400

 in cash and $

17,600

 in

25,000

 newly issued OceanPal Series D Preferred Shares (Note

5(a)). On the date of the agreement, the vessel was classified as held for sale according to the provisions

of ASC 360, as all criteria required for this classification were met, at carrying value of $

16,722

 and

unamortized deferred costs of $

41

, measured at the lower of carrying value and fair value (sale price) less

costs to sell. The vessel was delivered to OceanPal on September 20, 2022 and the sale resulted in gain

amounting to $

2,850

, included in gain on sale of vessels in the accompanying consolidated statements of

income.

On January 23, 2023, the Company sold to an unrelated third party the vessel

Aliki

 for a sale price of

$

15,080

 and on February 1, 2023, the Company, sold to OceanPal the vessel

Melia

 for a sale price of

$

14,000

, of which $

4,000

 in cash and $

10,000

 in

13,157

 newly issued OceanPal Series D Preferred Shares

(Note 5(a)). On the date of the agreements, the vessels, having an aggregate carrying value of $

23,198

and unamortized deferred costs of $

405

 were classified as held for sale, measured at carrying value which

was the lower of their carrying value and fair value (sale price) less costs to sell. Both vessels were

delivered to their new owners on February 8, 2023. The sale of the vessels resulted in gain amounting to

$

4,995

, included in gain on sale of vessels in the accompanying consolidated statements of income.

On October 5, 2023, the Company sold to an unrelated third party the vessel Boston for a sale price of

$

17,998

. The vessel was delivered to the buyer on December 6, 2023 and the sale of the vessel resulted

in gain of $

328

, included in gain on sale of vessels in the accompanying consolidated statements of income.

The amounts reflected in Vessels, net in the accompanying consolidated balance sheets are analyzed as

follows:

Vessel Cost

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2021

$

810,429

$

(166,979)

$

643,450

- Additions for vessel acquisitions and improvements

358,504

-

358,504

- Additions for improvements reclassified from other non-

current assets

1,370

-

1,370

- Vessel disposals

(29,175)

12,453

(16,722)

- Depreciation for the year

-

(36,986)

(36,986)

Balance, December 31, 2022

$

1,141,128

$

(191,512)

$

949,616

- Additions for vessel acquisitions and improvements

61,682

-

61,682

- Vessel disposals

(60,655)

21,688

(38,967)

- Vessel disposal due to deconsolidation of subsidiary (Note

4(b))

(27,908)

-

(27,908)

- Depreciation for the year

-

(44,231)

(44,231)

Balance, December 31, 2023

$

1,114,247

$

(214,055)

$

900,192

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-26

Additions for vessel improvements mainly relate to the implementation of ballast water treatment and other

works necessary for the vessels to comply with new regulations and be able to navigate to additional ports.

As of December 31, 2022, an amount of $

1,370

 was reclassified to Vessels, net from other non-current

assets and related to ballast water treatment equipment paid in a previous period but delivered on the

vessels during the year ended December 31, 2022.

7. Property and Equipment, net

The Company owns the land and building of its principal corporate offices in Athens, Greece and a plot of

a land of which on July 6, 2023, DSS purchased 1/3 from Alpha Sigma Shipping Corp, a related party

company, for the purchase price of $

1,208

 and became its sole owner. Other assets consist of office

furniture and equipment, computer software and hardware and vehicles. The amount reflected in “Property

and equipment, net” is analyzed as follows:

Property and

Equipment

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2021

$

28,269

$

(5,427)

$

22,842

- Additions in property and equipment

667

-

667

- Depreciation for the year

-

(546)

(546)

Balance, December 31, 2022

$

28,936

$

(5,973)

$

22,963

- Additions in property and equipment

2,006

-

2,006

- Depreciation for the year

-

(687)

(687)

Balance, December 31, 2023

$

30,942

$

(6,660)

$

24,282

8. Long-term debt

The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as

follows:

2023

2022

Senior unsecured bond

119,100

125,000

Secured long-term debt

397,857

405,120

Total long-term debt

$

516,957

$

530,120

Less: Deferred financing costs 

(6,314)

(7,609)

Long-term debt, net of deferred financing costs

$

510,643

$

522,511

Less: Current long-term debt, net of deferred financing costs,

current

(49,512)

(91,495)

Long-term debt, excluding current maturities

$

461,131

$

431,016

Senior Unsecured Bond

: 

On

June 22, 2021

, the Company issued a $

125,000

 senior unsecured bond maturing in June 2026. The

bond ranks ahead of subordinated capital and ranks the same with all other senior unsecured obligations

of the Company other than obligations which are mandatorily preferred by law. Entities affiliated with

executive officers and directors of the Company purchased an aggregate of $

21,000

 principal amount of

the bond. The bond bears interest at a US Dollar fixed-rate coupon of

8.375

% and is payable semi-annually

in arrears in June and December of each year. The bond is callable in whole or in part in June 2024 at a

price equal to

103.35

% of nominal value; between June 2025 to December 2025 at a price equal to

101.675

% of nominal value and after December 2025 at a price equal to

100

% of nominal value. On June

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-27

29, 2023, the Company repurchased $

5,900

 nominal value of the bond for $

5,851

. In this respect, the

Company recognized an amount of $

159

 as loss on debt extinguishment, representing the difference

between the reacquisition price of $

5,851

 and the net carrying amount of the debt being extinguished of

$

5,900

 less deferred financing fees of $

208

. The bond includes financial and other covenants and is trading

at Oslo Stock Exchange under the ticker symbol “DIASH02”. 

Secured Term Loans:

Under the secured term loans outstanding as of December 31, 2023,

33

 vessels of the Company’s fleet

are mortgaged with first preferred or priority ship mortgages, having an aggregate carrying value of

$

699,014

. Additional securities required by the banks include first priority assignment of all earnings,

insurances, first assignment of time charter contracts that exceed a certain period, pledge over the shares

of the borrowers, manager’s undertaking and subordination and requisition compensation and either a

corporate guarantee by DSI (the “Guarantor”) or a guarantee by the ship owning companies (where

applicable), financial covenants, as well as operating account assignments. The lenders may also require

additional security in the future in the event the borrowers breach certain covenants under the loan

agreements. The secured term loans generally include restrictions as to changes in management and

ownership of the vessels, additional indebtedness, as well as minimum requirements regarding hull cover

ratio and minimum liquidity per vessel owned by the borrowers, or the Guarantor, maintained in the bank

accounts of the borrowers, or the Guarantor. 

As of December 31, 2023 and 2022, minimum cash deposits required to be maintained at all times under

the Company’s loan facilities, amounted to $

20,000

 and $

21,000

, respectively and are included in restricted

cash, non-current in the accompanying consolidated balance sheets. Furthermore, the secured term loans

contain cross default provisions and additionally the Company is not permitted to pay any dividends

following the occurrence of an event of default. In 2023 and 2022 , the weighted average interest rate of

the secured term loans was

7.3

% and

3.8

%, respectively.

As of December 31, 2023 and 2022, the Company had the following agreements with banks, either as a

borrower or as a guarantor, to guarantee the loans of its subsidiaries:

BNP Paribas (“BNP”):

 On December 19, 2014, the Company drew down $

53,500

 under a secured loan

agreement, to finance part of the acquisition cost of the

G. P. Zafirakis

 and the

P. S. Palios

maturing on

November 30, 2021

. The agreement was refinanced on June 29, 2020, to extend the maturity to

May 19,

2024

. The loan was repayable in equal semi-annual instalments of approximately $

1,574

 and a balloon of

$

23,596

 payable together with the last instalment. The refinanced loan bore interest at LIBOR plus a margin

of

2.5

%. 

On July 16, 2018, the Company drew down $

75,000

 under a secured loan agreement with BNP. The loan

was repayable in consecutive quarterly instalments of $

1,562.5

 and a balloon instalment of $

43,750

payable together with the last instalment on

July 17, 2023

. The loan bore interest at LIBOR plus a margin

of

2.3

%. 

In April 2023, both loans were refinanced through a new loan facility with Danish Ship Finance and the

outstanding balance of both loans, amounting to $

75,193

 was prepaid in full and the Company recorded a

loss on debt extinguishment amounting to $

107

.

Nordea Bank AB, London Branch (“Nordea”):

 On March 19, 2015, the Company drew down $

93,080

under a secured loan agreement, maturing on

March 19, 2021

. The loan agreement was amended on May

7, 2020, and supplemented on July 29, 2021, with an additional borrowing of $

460

. In July 2022 and in

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-28

February 2023, the Company prepaid an amount of $

4,786

 and $

8,134

, respectively, following the sale of

vessels. On June 20, 2023, the Company entered into a new loan agreement with Nordea to refinance the

outstanding balance of the existing loan amounting to $

20,934

. On June 27, 2023, the Company drew

down $

22,500

 and prepaid in full the outstanding balance of $

20,934

 and recorded a loss on debt

extinguishment amounting to $

220

. The new loan is repayable in

twenty

 equal

quarterly

 instalments of

$

1,125

 and bears interest at term SOFR plus a margin of

2.25

%. The loan matures on

June 27, 2028

.

On September 30, 2022, the Company entered into a $

200

 million loan agreement to finance the acquisition

price of 9 Ultramax vessels. The Company drew down $

197,236

 under the loan, in tranches for each vessel

on their delivery to the Company but prepaid $

21,937

 in December 2022 due to a vessel sale and leaseback

transaction. The loan is repayable in equal

quarterly

 instalments of an aggregate amount of $

3,719

, and a

balloon of $

100,912

 payable together with the last instalment on

October 11, 2027

. The loan bears interest

at term SOFR plus a margin of

2.25

%. Loan fees amounted to $

2,069

 presented as contra to debt and

commitment fees amounted to $

191

, included in interest expense and finance costs in the accompanying

2022 consolidated statement of income. 

ABN AMRO Bank N.V., or ABN:

 On May 22, 2020, the Company signed a term loan facility with ABN, in

the amount of $

52,885

 to combine two loans outstanding with ABN. Tranche A was repayable in

consecutive

quarterly

 instalments of $

800

 each and a balloon instalment of $

9,000

 payable together with

the last instalment on

June 28, 2024

. The tranche bore interest at LIBOR plus a margin of

2.25

%. Tranche

B was repayable in equal consecutive

quarterly

 instalments of about $

994

 each and a balloon of $

13,391

payable together with the last instalment on

June 28, 2024

, and bore interest at LIBOR plus a margin of

2.4

%. 

On May 20, 2021, the Company, drew down $

91,000

 under a secured sustainability linked loan facility with

ABN AMRO Bank N.V, dated May 14, 2021, which was used to refinance existing loans. In August 2022,

the Company prepaid $

30,791

 due to vessel sale and leaseback transactions and since then, the loan was

repayable in

quarterly

 instalments of $

1,980

 and a balloon of $

13,553

 payable together with the last

instalment, on

May 20, 2026

. The loan bore interest at LIBOR plus a margin of

2.15

% per annum, which

could be adjusted annually by maximum

10

 basis points upwards or downwards, subject to the

performance under certain sustainability KPIs.

On June 26, 2023, the Company prepaid in full both loans amounting to $

68,677

, which were refinanced

under a new loan agreement with DNB Bank ASA and the Company recorded a loss on debt

extinguishment amounting to $

237

.

Export-Import Bank of China:

 On January 4, 2017, the Company drew down $

57,240

 under a secured

loan agreement, which is repayable in equal

quarterly

 instalments of $

954

, each, until its maturity on

January 4, 2032

 and bears interest at term SOFR plus a margin of

2.45

%.

DNB Bank ASA or DNB:

 On March 14, 2019, the Company drew down $

19,000

 under a secured loan

agreement, which is repayable in consecutive

quarterly

 instalments of $

477.3

 and a balloon of $

9,454

payable together with the last instalment on

March 14, 2024

. The loan bore interest at LIBOR plus a margin

of

2.4

%. On March 14, 2023, the outstanding balance of the loan amounting to $

11,841

 was prepaid in full

and the Company recorded a loss on debt extinguishment amounting to $

25

.

On June 26, 2023, the Company entered into a $

100,000

 loan agreement which was drawn on June 27,

2023, to refinance the outstanding balance of the ABN loans mentioned above and for working capital

purposes. The loan is repayable in

26

 equal

quarterly

 instalments of $

3,846

 until

December 27, 2029

, and

bears term SOFR plus a margin of

2.2

%, subject to sustainability margin adjustment. Additionally, the loan

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-29

is subject to a margin reset, according to which the borrowers and the lenders will enter into discussions

to agree on a new margin. Unless the parties agree on a new margin, the loan will be mandatorily repayable

on June 27, 2027. As part of the loan agreement, on July 6, 2023, the Company entered into an interest

rate swap with DNB for a notional amount of $

30,000

, being

30

% of the loan amount and quarterly

amortization of $

1,154

. Under the interest rate swap, the Company pays a fixed rate of

4.268

% and

receives floating under term SOFR, has a trade date on June 27, 2023, and termination date on December

27, 2029, and also has a mandatory break on June 27, 2027, the margin reset date of the loan, according

to which the swap will be terminated if the loan is prepaid. As of December 31, 2023, the fair value of the

interest rate swap amounted to $

439

 and is separately presented in current assets and non-current

liabilities, amounting to $

129

 and $

568

 respectively, in the 2023 accompanying consolidated balance

sheet. Loss from the interest rate swap amounted to $

439

 and is separately presented as loss on derivative

instruments in the 2023 consolidated statement of income.

Danish Ship Finance A/S or Danish:

 On April 12, 2023, the Company signed a term loan facility with

Danish, for $

100,000

 to refinance the outstanding balance of the Company’s loans with DNB Bank ASA

and BNP, mentioned above and working capital. On April 18 and 19, 2023, the Company drew down

$

100,000

 which is repayable in

twenty

 equal consecutive

quarterly

 instalments of $

3,301

 each and a

balloon of $

33,972

 payable together with the last instalment on April 19, 2028, and bears interest at term

SOFR plus a margin of

2.2

%. 

As of December 31, 2023 and 2022, the Company was in compliance with all of its loan covenants.

As of December 31, 2023, the maturities of the Company’s bond and debt facilities throughout their term,

are shown in the table below and do not include the related debt issuance costs.

Period

Principal Repayment

Year 1

$

51,783

Year 2

51,783

Year 3

170,883

Year 4

152,696

Year 5

62,026

Year 6 and thereafter

27,786

Total

$

516,957

9. Finance Liabilities

The amount of finance liabilities shown in the accompanying consolidated balance sheet is analyzed as

follows:

December 31, 2023

December 31, 2022

Finance liabilities

133,337

142,370

Less: Deferred financing costs 

(1,208)

(1,439)

Finance liabilities, net of deferred financing costs

$

132,129

$

140,931

Less: Current finance liabilities, net of deferred financing costs,

current

(9,221)

(8,802)

Finance liabilities, excluding current maturities

$

122,908

$

132,129

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-30

On March 29, 2022, the Company sold

Florida

 to an unrelated third party for $

50,000

 (Note 6) and leased

back the vessel under a bareboat agreement, for a period of

ten years

, under which the Company pays

hire, monthly in advance. Under the bareboat charter, the Company has the option to repurchase the vessel

after the end of the third year of the charter period, or each year thereafter, until the termination of the

lease, at specific prices, subject to irrevocable and written notice to the owner. If not repurchased earlier,

the Company has the obligation to repurchase the vessel for $

16,350

, on the expiration of the lease on the

tenth year. 

On August 17, 2022, the Company entered into

two

 sale and leaseback agreements with two unaffiliated

Japanese third parties for

New Orleans

 and

Santa Barbara,

for an aggregate amount of $

66,400

. The

vessels were delivered to their buyers on September 8, 2022 and September 12, 2022, respectively and

the Company chartered in both vessels under bareboat charter parties for a period of

eight years

, each,

and has purchase options beginning at the end of the third year of each vessel's bareboat charter period,

or each year thereafter, until the termination of the lease, at specific prices, subject to irrevocable and

written notice to the owner. If not repurchased earlier, the Company has the obligation to repurchase the

vessels for $

13,000

, each, on the expiration of each lease on the eighth year.

On December 6, 2022, the Company sold

DSI Andromeda

 to an unrelated third party for $

29,850

 (Note 6)

and leased back the vessel under a bareboat agreement, for a period of

ten years

, under which the

Company pays hire, monthly in advance. Under the bareboat charter, the Company has the option to

repurchase the vessel after the end of the third year of the charter period, or each year thereafter, until the

termination of the lease, at specific prices, subject to irrevocable and written notice to the owner. If not

repurchased earlier, the Company has the obligation to repurchase the vessel for $

8,050

, on the expiration

of the lease on the tenth year.

Under the bareboat charter parties, the Company is responsible for the operation and maintenance of the

vessels and the owner of the vessels shall not retain any control, possession, or command of the vessel

during the charter period.

The Company determined that, under ACS 842-40 Sale and Leaseback Transactions, the transactions are

failed sales and consequently the assets were not derecognized from the financial statements and the

proceeds from the sale of the vessels were accounted for as financial liabilities. As of December 31, 2023,

the weighted average remaining lease term of the above lease agreements was

7.70

 years, the average

interest rate was

4.83

% and the sublease income during 2023 was $

34,560

, included in time charter

revenues.

As of December 31, 2023, and throughout the term of the leases, the Company has annual finance liabilities

as shown in the table below:

Period

Principal Repayment

Year 1

$

9,437

Year 2

9,808

Year 3

10,224

Year 4

10,661

Year 5

11,151

Year 6 and thereafter

82,056

Total

$

133,337

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-31

10. Commitments and Contingencies

a)

 Various claims, suits, and complaints, including those involving government regulations and product

liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes

with charterers, agents, insurance and other claims with suppliers relating to the operations of the

Company’s vessels. The Company accrues for the cost of environmental and other liabilities when

management becomes aware that a liability is probable and is able to reasonably estimate the probable

exposure. The Company’s vessels are covered for pollution in the amount of $

1

 billion per vessel per

incident, by the P&I Association in which the Company’s vessels are entered. In 2022, the Company

recorded a gain of $

1,789

 from insurance recoveries received from its insurers for claims covered under

its insurance policies, which is separately presented as insurance recoveries in the accompanying 2022

consolidated statement of operations.

b)

 Pursuant to the sale and lease back agreements signed between the Company and its counterparties,

the Company has purchase obligations to repurchase the vessels

Florida, Santa Barbara, New Orleans

and

 DSI Andromeda

upon expiration of their lease contracts, as described in Note 9.

c)

 On March 30, 2023, the Company entered into a corporate guarantee with Nordea under which the

Company guarantees the performance by Bergen of all of its obligations under the loan until the maturity

of the loan on March 30, 2028 (Note 4 (b)). The Company considers the likelihood of having to make

any payments under the guarantee to be remote, as the loan is also secured by an account pledge by

Bergen, first preferred mortgage on the vessel, a first priority general assignment of the earnings,

insurances and requisition compensation of the vessel, a charter party assignment, a partnership

interests security deed, and a manager’s undertaking. Accordingly, as of December 31, 2023, the

Company did not record a provision for losses under the guarantee of Bergen’s loan amounting to

$

14,778

 on that date.

d)

 As of December 31, 2023, the Company’s vessels, owned and chartered-in, were fixed under time

charter agreements, considered operating leases. The minimum contractual gross charter revenue

expected to be generated from fixed and non-cancelable time charter contracts existing as of December

31, 2023 and until their expiration was as follows:

Period

Amount

Year 1

$

127,297

Year 2

24,629

Year 3

9,454

Year 4

725

 Total

$

162,105

11. Capital Stock and Changes in Capital Accounts

a) Preferred stock

:

 As of December 31, 2023, and 2022, the Company’s authorized preferred stock

consists of

50,000,000

 shares and

25,000,000

 shares, respectively (all in registered form), par value $

0.01

per share, of which

1,000,000

 shares are designated as Series A Participating Preferred Shares,

5,000,000

shares are designated as Series B Preferred Shares,

10,675

 shares are designated as Series C Preferred

Shares and

400

 shares are designated as Series D Preferred Shares. As of December 31, 2023 and 2022,

the Company had

zero

 Series A Participating Preferred Shares issued and outstanding.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-32

b) Series B Preferred Stock:

 As of December 31, 2023, and 2022, the Company had

2,600,000

Series B Preferred Shares issued and outstanding with par value $

0.01

 per share, at $

25.00

 per share and

with liquidation preference at $

25.00

 per share.

Holders of Series B Preferred Shares have no voting rights

other than the ability, subject to certain exceptions, to elect one director if dividends for six quarterly

dividend periods (whether or not consecutive) are in arrears and certain other limited protective voting

rights.

 Also, holders of Series B Preferred Shares rank prior to the holders of common shares with respect

to dividends, distributions and payments upon liquidation and are subordinated to all of the existing and

future indebtedness.

Dividends on the Series B Preferred Shares are cumulative from the date of original issue and are payable

on the 15th day of January, April, July and October of each year at the dividend rate of

8.875

% per annum,

or $

2.21875

 per share per annum. In 2023, 2022 and 2021, dividends on Series B Preferred Shares

amounted to $

5,769

, $

5,769

 and $

5,769

, respectively. Since February 14, 2019, the Company may

redeem, in whole or in part, the Series B Preferred Shares at a redemption price of $

25.00

 per share plus

an amount equal to all accumulated and unpaid dividends thereon to the date of redemption, whether or

not declared. 

c) Series C Preferred Stock

: As of December 31, 2023, and 2022, the Company had

10,675

 shares

of Series C Preferred Stock, issued and outstanding, with par value $

0.01

 per share, owned by an affiliate

of its Chief Executive Officer, Mrs. Semiramis Paliou.

The Series C Preferred Stock votes with the common

shares of the Company, and each share entitles the holder thereof to 1,000 votes on all matters submitted

to a vote of the shareholders of the Company.

 The Series C Preferred Stock has no dividend or liquidation

rights and cannot be transferred without the consent of the Company except to the holder’s affiliates and

immediate family members.

d) Series D Preferred Stock

: As of December 31, 2023, and 2022, the Company had

400

 shares of

Series D Preferred Stock, issued and outstanding, with par value $

0.01

 per share, owned by an affiliate of

its Chief Executive Officer, Mrs. Semiramis Paliou. The Series D Preferred Stock is not redeemable and

has

no

 dividend or liquidation rights.

The Series D Preferred Stock vote with the common shares of the

Company, and each share of the Series D Preferred Stock entitles the holder thereof to up to 200,000

votes,

 on all matters submitted to a vote of the stockholders of the Company, provided however, that,

notwithstanding any other provision of the Series D Preferred Stock statement of designation, to the extent

that the total number of votes one or more holders of Series D Preferred Stock is entitled to vote (including

any voting power of such holders derived from Series D Preferred Stock, shares of Common Stock or any

other voting security of the Company issued and outstanding as of the date hereof or that may be issued

in the future) on any matter submitted to a vote of stockholders of the Company would exceed

36.0

% of

the total number of votes eligible to be cast on such matter, the total number of votes that holders of Series

D Preferred Stock may exercise derived from the Series D Preferred Stock together with Common Shares

and any other voting securities of the Company beneficially owned by such holder, shall be reduced to

36

% of the total number of votes that may be cast on such matter submitted to a vote of stockholders.

e) Issuance and Repurchase of Common Shares:

In February 2021, the Company repurchased in

a tender offer

6,000,000

 shares at the price of $

2.50

 per share. In

August 2021, the Company repurchased,

in another tender offer,

3,333,333

 shares, at a price of $

4.50

 per share and in December 2021, repurchased

3,529,411

 shares at a price of $

4.25

 per share. The aggregate cost of the share repurchases was $

45,369

,

including expenses. In 2022, the Company issued under its ATM program

877,581

 shares of common

stock, at an average price of $

6.27

 per share and received net proceeds of $

5,322

. During 2022, the

Company repurchased under its share repurchase program

820,000

 shares of common stock, at an

average price of $

4.56

 per share, for an aggregate cost of $

3,799

, including expenses. In addition, in the

fourth quarter of 2022, the Company issued

16,453,780

 common shares to Sea Trade (Note 6), upon

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-33

exercise by Sea Trade of the eight out of nine warrants mentioned in (i) below, for the acquisition of eight

vessels, at an average price of $

4.13

. On January 30, 2023, the Company issued

2,033,613

 common

shares, at $

3.84

, to Sea Trade upon exercise by Sea Trade of a warrant it held for the acquisition of a

vessel (Note 6). The Company did

no

t receive any proceeds from the exercise of the warrants by Sea

Trade and the exercise price of the shares issued was included in the price of the vessels acquired.

f) Dividend on Common Stock:

On March 21, 2022, the Company paid a dividend on its common

stock of $

0.20

 per share, to its shareholders of record as of March 9, 2022. On June 17, 2022, the Company

paid a dividend on its common stock of $

0.25

 per share, to its shareholders of record as of June 6, 2022.

On August 19, 2022, the Company paid a dividend on its common stock of $

0.275

 per share, to its

shareholders of record as of August 8, 2022. On December 15, 2022, the Company paid a dividend on its

common stock of $

0.175

 per share, to its shareholders of record as of November 28, 2022. During 2022,

the Company paid total cash dividends on common stock amounting to $

79,812

.

On March 20, 2023, the Company paid a dividend of $

0.15

 per share, or $

15,965

, to its shareholders of

record as of March 13, 2023. On July 10, 2023, the Company distributed a dividend of $

0.15

 per share to

all shareholders of record as of June 12, 2023, and paid $

12,424

 in cash to its shareholders who elected

to receive cash and distributed

965,044

 newly issued common shares to its shareholders who elected to

receive shares. On September 8, 2023, the Company distributed a dividend of $

0.15

 per share to all

shareholders of record as of August 14, 2023, and paid $

13,041

 in cash to its shareholders who elected to

receive cash and distributed

831,672

 newly issued common shares to its shareholders who elected to

receive shares. On December 4, 2023, the Company distributed a dividend of $

0.15

 per share to all

shareholders of record as of November 27, 2023 in the form of common stock and distributed

4,831,777

newly issued common shares.

g) Dividend in Kind:

On November 29, 2021, the Company distributed to its shareholders of record

on November 3, 2021, the common stock of OceanPal, acquired in a spin-off, amounting to $

40,509

. On

December 15, 2022, the Company distributed the Company’s investment in the Series D Preferred Shares

of OceanPal in the form of a stock dividend amounting to $

18,189

, or $

0.18

 per share, to its shareholders

of record as of November 28, 2022. On June 9, 2023, the Company distributed the Company’s investment

in the Series D Preferred Shares of OceanPal in the form of a stock dividend amounting to $

10,761

, or

$

0.10

 per share, to its shareholders of record as of April 24, 2023 (Notes 5(a)). 

On December 14, 2023, the Company distributed

22,613,070

 warrants to its shareholders of record on

December 6, 2023. Holders received one warrant for every five shares of issued and outstanding shares

of common stock held as of the record date (rounded down to the nearest whole number for any fractional

warrant. Each Warrant entitle the Holder to purchase, at the Holder’s sole and exclusive election, at the

exercise price of $

4

 per warrant,

one

 share of common stock plus a bonus share fraction. A bonus share

fraction entitles a Holder to receive an additional

half

 of a share of common stock for each warrant exercised

without payment of any additional exercise price. If all warrants were exercised as of December 31, 2023,

the Company would have issued

33,919,605

 common shares with a fair value of $

100,741

 and would have

received $

90,452

 of proceeds. The warrants were measured on the date of distribution at fair value,

determined through level 1 account hierarchy, being the opening price of the warrants on the NYSE on the

date of distribution as they are listed under the ticker DSX_W. The value of the warrants was measured at

$

7,914

, or $

0.35

 per warrant and was recorded as liability under the terms of ASC 480. As of December

31, 2023, the warrant liability was remeasured at fair value and recorded at $

6,332

, resulting in a gain of

$

1,583

 separately presented in the 2023 consolidated statement of income as unrealized gain on warrants.

As of December 31, 2023,

no

 warrants had been exercised.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-34

h) Incentive Plan:

As of December 31, 2023,

13,444,759

 shares remained reserved for issuance

according to the Company’s incentive plan.

Restricted stock in 2023, 2022 and 2021 is analyzed as follows:

Number of Shares

Weighted Average

Grant Date Price

Outstanding as of December 31, 2020

2,423,012

$

2.95

Granted

8,260,000

2.85

Vested

(1,168,363)

3.20

Outstanding as of December 31, 2021

9,514,649

$

2.83

Granted

1,470,000

4.15

Vested

(3,118,060)

2.86

Outstanding as of December 31, 2022

7,866,589

$

3.07

Granted

1,750,000

4.54

Vested

(2,822,753)

3.05

Outstanding as of December 31, 2023

6,793,836

$

3.45

The fair value of the restricted shares has been determined with reference to the closing price of the

Company’s stock on the date such awards were approved by the Company’s board of directors. The

aggregate compensation cost is recognized ratably in the consolidated statement of income over the

respective vesting periods. In 2023, 2022 and 2021, compensation cost amounted to $

9,938

, $

9,282

 and

$

7,442

, respectively, and is included in general and administrative expenses in the accompanying

consolidated statements of income.

As of December 31, 2023 and 2022, the total unrecognized cost relating to restricted share awards was

$

14,880

 and $

16,873

, respectively. As of December 31, 2023, the weighted-average period over which the

total compensation cost related to non-vested awards not yet recognized is expected to be recognized is

1.95

 years.

i) Warrants:

On August 11, 2022, the Company issued

nine

 warrants to Sea Trade (Note 6) that

permitted the holder to purchase from the Company

18,487,393

, at $

0.01

 per share, each exercisable on

the delivery of each vessel from Sea Trade to the Company. The warrants would expire and no longer be

exercisable upon the earlier of the termination date of each memorandum of agreement and the date before

the delivery date of a vessel if a registration statement had not been declared effective. The holder of the

warrants would not be considered a shareholder prior to the issuance of the shares. As of December 31,

2022, there was only

one

 warrant not exercised by Sea Trade, which was exercised on January 30, 2023,

upon delivery of the ninth Ultramax vessel (Note 6). The Company did

no

t receive any proceeds from the

exercise of the warrants by Sea Trade and the exercise price of the shares issued was included in the price

of the vessels acquired.

12. Voyage expenses

The amounts in the accompanying consolidated statements of income are analyzed as follows:

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-35

2023

2022

2021

Commissions

$

13,331

$

14,412

$

10,794

Gain from bunkers

(474)

(8,100)

(5,955)

Port expenses and other

764

630

731

Total 

$

13,621

$

6,942

$

5,570

13. Interest and Finance Costs

The amounts in the accompanying consolidated statements of income are analyzed as follows:

2023

2022

2021

Interest expense, debt

$

39,617

$

21,983

$

18,067

Finance liabilities interest expense

6,786

2,735

-

Amortization of debt and finance liabilities issuance 

costs

2,620

2,286

1,865

Loan and other expenses

308

415

307

Interest expense and finance costs

$

49,331

$

27,419

$

20,239

14. Earnings per Share

All common shares issued (including the restricted shares issued under the Company’s incentive plans)

are the Company’s common stock and have equal rights to vote and participate in dividends. The

calculation of basic earnings per share does not treat the non-vested shares (not considered participating

securities) as outstanding until the time/service-based vesting restriction has lapsed.

The dilutive effect on

unexercised warrants (Note 11(g)) that are in-the-money, is computed using the treasury stock method

which assumes that the proceeds upon exercise of these warrants are used to purchase common shares

at the average market price for the period. Incremental shares are the number of shares assumed issued

under the treasury stock method weighted for the periods the non-vested shares were outstanding. In 2023,

2022 and 2021, there were

1,710,513

,

3,257,861

, and

3,735,059

 incremental shares, respectively,

included in the denominator of the diluted earnings per share calculation. 

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-36

Net income attributable to common stockholders is adjusted by the dividends on Series B Preferred Stock.

Net income attributable to common stockholders is further adjusted by the unrealized gain on warrants as

of December 31, 2023 to calculate the diluted earnings per share.

2023

2022

2021

Net income

$

49,844

$

119,063

$

57,394

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Net income attributable to common stockholders

$

44,075

$

113,294

$

51,625

Weighted average number of common shares, basic

100,166,629

80,061,040

81,121,781

Earnings per share, basic

$

0.44

$

1.42

$

0.64

Net income

$

49,844

$

119,063

$

57,394

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Unrealized gain on warrants

(1,583)

-

-

Adjusted net income attributable to common

stockholders

$

42,492

$

113,294

$

51,625

Weighted average number of common shares, basic

100,166,629

80,061,040

81,121,781

Incremental shares 

1,710,513

3,257,861

3,735,059

Weighted average number of common shares, diluted 

101,877,142

83,318,901

84,856,840

Earnings per share, diluted

$

0.42

$

1.36

$

0.61

15. Income Taxes

Under the laws of the countries of the companies’ incorporation and / or vessels’ registration, the

companies are not subject to tax on international shipping income; however, they are subject to registration

and tonnage taxes, which are included in vessel operating expenses in the accompanying consolidated

statements of operations.

The vessel-owning companies with vessels that have called on the United States are obliged to file tax

returns with the Internal Revenue Service. However, pursuant to the Internal Revenue Code of the United

States, U.S. source income from the international operations of ships is generally exempt from U.S. tax.

The applicable tax is

50

% of

4

% of U.S.-related gross transportation income unless an exemption applies.

The Company and each of its subsidiaries expects it qualifies for this statutory tax exemption for the 2023,

2022 and 2021 taxable years, and the Company takes this position for United States federal income tax

return reporting purposes.

16. Financial Instruments and Fair Value Disclosures

Interest rate risk and concentration of credit risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk,

consist principally of cash and trade accounts receivable. The ability and willingness of each of the

Company’s counterparties to perform their obligations under a contract depend upon a number of factors

that are beyond the Company’s control and may include, among other things, general economic conditions,

the state of the capital markets, the condition of the shipping industry and charter hire rates. The

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-37

Company’s credit risk with financial institutions is limited as it has temporary cash investments, consisting

mostly of deposits, placed with various qualified financial institutions and performs periodic evaluations of

the relative credit standing of those financial institutions. The Company limits its credit risk with accounts

receivable by performing ongoing credit evaluations of its customers’ financial condition and by receiving

payments of hire in advance. The Company, generally, does not require collateral for its accounts

receivable and does not have any agreements to mitigate credit risk. 

In 2023, 2022 and 2021, charterers that individually accounted for

10

% or more of the Company’s time

charter revenues were as follows:

Charterer

2023

2022

2021

Cargill International SA

13%

19%

10%

Koch Shipping PTE LTD. Singapore

*

15%

*

*Less than 10%

The Company is exposed to interest rate fluctuations associated with its variable rate borrowings. On July

6, 2023, the company entered into an interest rate swap with DNB (Notes 8 and 13) to manage part of such

exposure.

Fair value of assets and liabilities

The carrying values of financial assets reflected in the accompanying consolidated balance sheet

approximate their respective fair values due to the short-term nature of these financial instruments. The

fair value of long-term bank loans with variable interest rates approximates the recorded values, generally

due to their variable interest rates. 

Fair value measurements disclosed 

As of December 31, 2023, the Bond having a fixed interest rate and a carrying value of $

119,100

 (Note 8)

had a fair value of $

118,505

 determined through the Level 1 input of the fair value hierarchy as defined in

FASB guidance for Fair Value Measurements.

On September 20, 2022, the Company acquired

25,000

 Series D Preferred Shares of OceanPal at

$

17,600

, determined by taking into consideration a third-party valuation which was based on the income

approach, taking into account the present value of the future cash flows the Company expects to receive

from holding the equity instrument.

On December 15, 2022, the Company distributed the Series D Preferred Shares as non-cash dividend and

measured their fair value on the date of declaration at $

18,189

. Their fair value was determined by using

the income approach, taking into account the present value of the future cash flows, the holder of shares

would expect to receive from holding the equity instrument which resulted in gain of $

589

.

On February 8, 2023, the Company acquired

13,157

 shares of OceanPal Series D Preferred Shares, as

part of the consideration provided to the Company for sale of Melia to OceanPal, at $

10,000

, taking into

consideration a third-party valuation which was based on the income approach, taking into account the

present value of the future cash flows the Company expects to receive from holding the equity instrument.

On June 9, 2023, the Company distributed the Series D Preferred Shares as a non-cash dividend and

measured their fair value on the date of declaration at $

10,761

. The fair value was determined by using

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-38

the income approach, taking into account the present value of the future cash flows, the holder of shares

would expect to receive from holding the equity instrument which resulted in gain of $

761

.

Other Fair value measurements

Description (in thousands of US Dollars)

December 31,

2022

Quoted Prices

in Active

Markets

(Level 1)

Non-recurring fair value measurements

Long-lived assets held for use

$

67,909

$

67,909

Total non-recurring fair value measurements

67,909

67,909

December 31,

2023

Quoted Prices

in Active

Markets

(Level 1)

Significant

Other

Observable

Inputs (Level 2)

Significant

Other

Observable

Inputs (Level 3)

Assets

Recurring fair value measurements

Investments in equity securities

$

20,729

20,729

$

$

Investments in related party

8,315

8,138

177

Interest rate swap, asset

129

129

Total recurring fair value measurements

$

29,173

$

28,867

$

129

$

177

Non-recurring fair value measurements

Equity method investments

$

4,519

$

$

4,519

$

Long-lived assets held for use

7,809

7,809

-

Total non-recurring fair value measurements

$

12,328

$

7,809

$

4,519

-

Liabilities

Recurring fair value measurements

Interest rate swap, liability

568

568

Warrant liability

6,332

6,332

Total recurring fair value measurements

6,900

6,332

568

-

17. Subsequent Events

a)

Exercise of warrants:

Since January 4, 2024 and until April 1, 2024, holders of warrants exercised

3,051,471

 warrants under which

4,597,192

 shares of common stock were issued and the proceeds

from the exercise of warrants amounted to $

12,206

.

b)

 Series B Preferred Stock Dividends

: On January 15, 2024, the Company paid a quarterly

dividend on its series B preferred stock, amounting to $

0.5546875

 per share, or $

1,442

, to its

stockholders of record as of January 12, 2024.

c)

Acquisition of property:

On January 18, 2024, the Company acquired from unaffiliated third

parties a plot of land for the purchase price of Euro

310,000

 to be utilized for corporate purposes.

On March 6, 2024, the Company acquired from unaffiliated third parties another plot of land for the

purchase price of Euro

1,300,000

.

DIANA SHIPPING INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

(Expressed in thousands of U.S. Dollars – except share, per share data, unless otherwise stated)

F-39

d)

 Sale of Vessel Artemis:

 On January 19, 2024, the Company, through a wholly owned subsidiary,

entered into an agreement with an unrelated third party to sell the vessel Artemis for the sale price

of $

12,990

. The vessel was delivered to the new owners on March 5, 2024.

e)

Commissioning Service Operation Vessels (CSOVs):

On January 24, 2024, Diana Energize Inc.

increased its equity commitment to Euro

50

 million, being approximately

45.87

% of the limited

partnership’s capital (Note 4 (c)).

f)

Methanol Dual Fuel New-Building Kamsarmax Dry Bulk Vessels:

On February 8, 2024, the

Company signed an agreement to order through Marubeni Corporation or its guaranteed nominee,

an unaffiliated third party,

two

 81,200 dwt methanol dual fuel new-building Kamsarmax dry bulk

vessels, for a purchase price of $

46,000

 each, built at Tsuneishi Group (Zhoushan) Shipbuilding

Inc., China. The vessels are expected to be delivered to the Company by the second half of 2027

and the first half of 2028 respectively. On February 15, 2024, the Company paid the first instalment,

amounted $

8,050

 for each vessel, representing the

17.5

% of the contract price. 

g)

 Sale of Vessel Houston:

 On February 22, 2024, the Company, through a wholly owned subsidiary,

entered into an agreement with an unrelated third party to sell the vessel Houston for the sale price

of $

23,300

,

with delivery to the new owners latest by September 16, 2024.

h)

 Common Stock Dividend:

 On February 23, 2024, the Company declared a cash dividend on its

common stock of $

0.075

 per share, based on the Company’s results of operations during the fourth

quarter ended December 31, 2023. The cash dividend was paid on March 12, 2024, to all

shareholders of record as of March 5, 2024.

EX-2.8

DESCRIPTION OF THE REGISTRANT'S SECURITIES REGISTERED PURSUANT TO SECTION 12

OF THE SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2022, Diana Shipping Inc. (the “Company”) had five classes of securities registered

under Section 12 of the Securities Exchange Act of 1934, as amended:

(1) Common stock, $0.01 par value (the “common shares”);

(2) Preferred stock purchase rights (the “Preferred Stock Purchase Rights”);

(3) Series C Preferred Shares;

(4) Series D Preferred Shares;

(5) 8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value (the “Series

B Preferred Shares”); and

(6) Warrants to purchase common stock. 

The following description sets forth certain material provisions of these securities. The following summary

does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the applicable

provisions of (i) the Company’s Amended and Restated Articles of Incorporation, as amended (the “Articles

of Incorporation”) and

(ii) the Company’s Amended and Restated Bylaws (the “Bylaws”), each of which is incorporated by

reference as an exhibit to the Annual Report on Form 20-F of which this Exhibit is a part. We encourage you

to refer to our Articles of Incorporation and Bylaws for additional information.

Please note in this description of securities, “we”, “us”, “our” and “the Company” all refer to Diana Shipping

Inc. and its subsidiaries, unless the context requires otherwise.

DESCRIPTION OF COMMON SHARES

The respective number of common shares issued and outstanding as of the last day of the fiscal year for the

annual report on Form 20-F to which this description is attached or incorporated by reference as an exhibit,

is provided on the cover page of such annual report on Form 20-

F.

Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of

stockholders. Subject to preferences that may be applicable to any outstanding shares of preferred stock,

holders of shares of common stock are entitled to receive ratably all dividends, if any, declared by our board

of directors out of funds legally available for dividends. Upon our dissolution or liquidation or the sale of all

or substantially all of our assets, after payment in full of all amounts required to be paid to creditors and to

the holders of preferred stock having liquidation preferences, if any, the holders of our common stock will

be entitled to receive pro rata our remaining assets available for distribution. Holders of common stock do

not have conversion, redemption or preemptive rights to subscribe to any of our securities. The rights,

preferences and privileges of holders of common stock are subject to the rights of the holders of our preferred

stock.

Voting Rights

Each outstanding common share entitles the holder to one vote on all matters submitted to a vote of

shareholders. At any annual or special general meeting of shareholders where there is a quorum, the

affirmative vote of a majority of the votes cast by holders of shares of stock represented at the meeting shall

be the act of the shareholders. (Under the Bylaws, at all meetings of shareholders except otherwise expressly

provided by law, there must be present in person or proxy shareholders of record holding at least 33 1/3% of

the shares issued and outstanding and entitled to vote at such meeting in order to constitute a quorum.)

Our Bylaws do not confer any conversion, redemption or preemptive rights attached to our common shares

Dividend Rights

Subject to preferences that may be applicable to any outstanding preferred shares, holders of common shares

are entitled to receive ratably all dividends, if any, declared by our board of directors out of funds legally

available for dividends.

Liquidation Rights

Upon our dissolution or liquidation or the sale of all or substantially all of our assets, after payment in full of

all amounts required to be paid to creditors and to the holders of our preferred shares having liquidation

preferences, if any, the holders of our common shares will be entitled to receive pro rata our remaining assets

available for distribution.

Variation of Rights

Generally, the rights or privileges attached to our common shares may be varied or abrogated by the rights

of the holders of our preferred shares, including our existing classes of preferred shares and any preferred

shares we may issue in the future.

Limitations on Ownership

Under Marshall Islands law generally, there are no limitations on the right of non-residents of the Marshall

Islands or owners who are not citizens of the Marshall Islands to hold or vote our common shares.

Anti-takeover Effect of Certain Provisions of our Amended and Restated Articles of In Company and

Bylaws

Several provisions of our amended and restated articles of incorporation and bylaws may have anti-takeover

effects.

These provisions, which are summarized below, are intended to avoid costly takeover battles, lessen our

vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize

stockholder value in connection with any unsolicited offer to acquire us. However, these anti-takeover

provisions could also discourage, delay or prevent (i) the merger or acquisition of our company by means of

a tender offer, a proxy contest or otherwise that a stockholder may consider in its best interest and (ii) the

removal of incumbent officers and directors.

Business Combinations

Our amended and restated articles of incorporation generally prohibit us from entering into a business

combination with an "interested shareholder" for a period of three years following the date on which the

person became an interested shareholder. Interested shareholder is defined, with certain exceptions, as a

person who (i) owns more than 15% of our outstanding voting stock, or (ii) is an affiliate or associate of the

Company that owned more than 15% of our outstanding stock at any time in the prior three years from the

date the determination is being made as to whether he or she is an interested shareholder.

This prohibition does not apply in certain circumstances such as if (i) prior to the person becoming an

interested shareholder, our board of directors approved the business combination or the transaction which

resulted in the person becoming an interested shareholder, or (ii) the person became an interested shareholder

prior to the Company's initial public offering.

Blank Check Preferred Stock

Under the terms of our amended and restated articles of incorporation, our board of directors has authority,

without any further vote or action by our stockholders, to issue up to 25,000,000 shares of blank check

preferred stock. Our board of directors may issue shares of preferred stock on terms calculated to discourage,

delay or prevent a change of control of our company or the removal of our management.

Classified Board of Directors

Our amended and restated articles of incorporation provide for the division of our board of directors into

three classes of directors, with each class as nearly equal in number as possible, serving staggered, three-year

terms. Approximately one-third of our board of directors is elected each year. This classified board provision

could discourage a third party from making a tender offer for our shares or attempting to obtain control of

us. It could also delay stockholders who do not agree with the policies of our board of directors from removing

a majority of our board of directors for two years

.

Election and Removal of Directors

Our amended and restated articles of incorporation prohibit cumulative voting in the election of directors.

Our amended and restated bylaws require parties other than the board of directors to give advance written

notice of nominations for the election of directors. Our amended and restated articles of incorporation also

provide that our directors may be removed only for cause and only upon the affirmative vote of a majority of

the outstanding shares of our capital stock entitled to vote for those directors. These provisions may

discourage, delay or prevent the removal of incumbent officers and directors. The Articles prohibit the use

of cumulative voting to elect Directors.

Limited Actions by Stockholders

Our amended and restated articles of incorporation and bylaws provide that special meetings of the

shareholders may be called by the Board of Directors who shall state the purpose or purposes of the proposed

special meeting. The business transacted at any special meeting shall be limited to the purposes stated in the

notice of such meeting. If there is a failure to hold the annual meeting within a period of ninety (90) days

after the date designated therefor, or if no date has been designated for a period of thirteen (13) months after

the organization of the Corporation or after its last annual meeting, holders of not less than one-fifth of the

shares entitled to vote in an election of directors may, in writing, demand the call of a special meeting in lieu

of the annual meeting specifying the time thereof, which shall not be less than two (2) nor more than three

(3) months from the date of such call. The Chairman, Chief Executive Officer or Secretary of the Corporation

upon receiving the written demand shall promptly give notice of such meeting, or if the Chairman, Chief

Executive Officer or Secretary fails to do so within five (5) business days thereafter, any shareholder signing

such demand may give such notice. Such notice shall state the purpose or purposes of the proposed special

meeting. The business transacted at any special meeting shall be limited to the purposes stated in the notice

of such meeting.

Advance Notice Requirements for Stockholder Proposals and Director Nominations

Our amended and restated bylaws provide that stockholders seeking to nominate candidates for election as

directors or to bring business before an annual meeting of stockholders must provide timely notice of their

proposal in writing to the corporate secretary. Generally, to be timely, a stockholder's notice must be received

at our principal executive offices not less than 90 days nor more than 120 days prior to the date on which we

first mailed our proxy materials for the preceding year's annual meeting. Our bylaws also specify

requirements as to the form and content of a stockholder's notice. These provisions may impede stockholders'

ability to bring matters before an annual meeting of stockholders or make nominations for directors at an

annual meeting of stockholders.

DESCRIPTION OF THE SERIES B PREFERRED SHARES

On February 3, 2014, we filed a Prospectus Statement for the registration of 2,400,000 of our 8.875% Series

B Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, with a liquidation

preference of $25.00 per share.

We have summarized the material terms and conditions of the rights of these Series B Preferred Shares below.

For a complete description of the rights, we encourage you to read the “Description of Registrant’s Securities

to be Registered”, which we have filed as an exhibit to the Form 8-A on February 13, 2014.

Dividends

Under the Agreement, we declared a dividend payment of 8.875% per annum per $25.00 liquidation

preference per share (equal to $2.21875 per annum per share). These dividends accrue and are cumulative

from the date the Series B Cumulative shares are originally issued. The dividends are payable, as and if

declared by the Board on January 15, April 15, July 15 and October 15 of each year.

Liquidation Preference

Holders of the Series B Preferred Shares are entitled to a liquidation preference. Upon the occurrence of a

liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary (a

“Liquidation Event”), Holders of Series B Preferred Shares shall be entitled to receive out of the assets of the

Company or proceeds thereof legally available for distribution to stockholders of the Company, (i) after

satisfaction of all liabilities, if any, to creditors of the Company, (ii) after all applicable distributions of such

assets or proceeds being made to or set aside for the holders of any Senior Stock then outstanding in respect

of such Liquidation Event, (iii) concurrently with any applicable distributions of such assets or proceeds

being made to or set aside for holders of any Parity Stock then outstanding in respect of such Liquidation

Event and (iv) before any distribution of such assets or proceeds is made

to or set aside for the holders of Common Stock and any other classes or series of Junior Stock as to such

distribution, a liquidating distribution or payment in full redemption of such Series B Preferred Shares in an

amount initially equal

to $25.00 per share in cash, plus an amount equal to accumulated and unpaid dividends thereon to the date

fixed for payment of such amount (whether or not declared).

Voting Rights

In the event that six quarterly dividends, whether consecutive or not, payable on the Series B Preferred Shares

are in arrears, the Holders of Series B Preferred Shares shall have the right, voting as a class together with

holders of any Parity Stock upon which like voting rights have been conferred and are exercisable, at the next

meeting of stockholders called for the election of directors, to elect one member of the Board of Directors,

and the size of the Board of Directors shall be increased as needed to accommodate such change.

Unless the Company shall have received the affirmative vote or consents of the Holders of at least two-thirds

of the outstanding Series B Preferred Shares, voting as a single class, the Company may not adopt any

amendment to the Articles of Incorporation that adversely alters the preferences, powers or rights of the

Series B Preferred Shares.

Unless the Company shall have received the affirmative vote or consent of the Holders of at least two-thirds

of the outstanding Series B Preferred Shares, voting as a class together with holders of any other Parity Stock

upon which like voting rights have been conferred and are exercisable, the Company may not (x) issue any

Parity Stock if the cumulative dividends payable on outstanding Series B Preferred Shares are in arrears or

(y) create or issue any Senior Stock.

Redemption Rights

The Company shall have the right at any time on or after February 14, 2019 to redeem the Series B Preferred

Shares, in whole or from time to time in part, from any funds available for such purpose. Any such redemption

shall occur on a date set by the Company.

DESCRIPTION OF THE SERIES C PREFERRED SHARES

We filed a statement of designations with the Marshall Islands registry establishing our Series C Preferred

Stock, of which 10,675 are issued and outstanding, par value $0.01 per share. The Series C Preferred Stock

will vote with the common shares of the Company, and each share of the Series C Preferred Stock shall

entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Company.

The Series C Preferred Stock has no dividend or liquidation rights and cannot be transferred without the

consent of the Company except to the holder's affiliates and immediate family members.

For a complete description of the rights, we encourage you to read the “Certificate of Designation of Rights,

Preferences, and Privileges of Series C Preferred Stock of the Company”, which we have filed as exhibit 3.1

to the Form 6-K on February 6, 2019.

DESCRIPTION OF THE SERIES D PREFERRED SHARES

We filed a statement of designations with the Marshall Islands registry establishing our Series D Preferred

Stock, of which 400 are issued and outstanding, par value $0.01 per share. The Series D Preferred Stock has

no dividend or liquidation rights. The Series D Preferred Stock votes with the common shares of the

Company, and each share of the Series D Preferred Stock shall entitle the holder thereof to up to 200,000

votes, on all matters submitted to a vote of the stockholders of the Company, notwithstanding any other

provision of the Statement of Designation of the Series D Preferred Stock, to the extent that the total number

of votes one or more holders of Series D Preferred Stock is entitled to vote (including any voting power of

such holders derived from Series D Preferred Stock, shares of common stock or any other voting security of

the Company issued and outstanding as of the date hereof or that may be issued in the future) on any matter

submitted to a vote of stockholders of the Company would exceed 36.0% of the total number of votes eligible

to be cast on such matter, the total number of votes that holders of Series D Preferred Stock may exercise

derived from the Series D Preferred Stock together with Common Shares and any other voting securities of

the Company beneficially owned by such holder, shall be reduced to 36% of the total number of votes that

may be cast on such matter submitted to a vote of stockholders.

For a complete description of the rights, we encourage you to read the “Statement of Designation of Rights,

Preferences and Privileges of Series D Preferred Stock of the Company”, which we have filed as Exhibit 3.1

to the Form 6-K on September 8, 2023.

DESCRIPTION OF WARRANTS

On December 14, 2023, we issued warrants to purchase common shares (the “Warrants”) to the holders of

record of Common Stock as of the close of business on December 6, 2023 (the “Record Date”) on the terms

and conditions described in the Warrant Agreement (as defined below and attached as exhibit 2.10 to this

annual report). Each holder received one Warrant for every five shares of issued and outstanding shares of

common stock held as of the Record Date (rounded down to the nearest whole number for any fractional

Warrant). Each Warrant entitles the holder to purchase, at the holder’s sole and exclusive election, at the

exercise price, one share of common stock plus, to the extent, described below, the Bonus Share Fraction. A

Bonus Share Fraction entitles a holder to receive an additional 0.5 of a share of common stock for each

Warrant exercised (the “Bonus Share Fraction”) without payment of any additional exercise price. Since the

dividend ex-Date on March 4, 2024, the Bonus Share Fraction was adjusted to 0.51292 of a share of common

stock for each Warrant exercised.

The right to receive the Bonus Share Fraction will expire at 5:00 p.m. New York City time (the “Bonus Share

Expiration Date”) upon the earlier of (i) the date specified by the Registrant upon not less than 20 business

days’ notice and (ii) the first business day following the last day of the first 30 consecutive trading day period

in which the daily VWAP of the shares of common stock has been at least equal to the then applicable trigger

price for at least 20 trading days (whether or not consecutive) (the “Bonus Price Condition”). Any Warrant

exercised with an exercise date after the Bonus Share Expiration Date will not be entitled to any Bonus Share

Fraction. The Company will make a public announcement of the Bonus Share Expiration Date (i) at least 20

business days prior to such date, in the case of the Company setting a Bonus Share Expiration Date and (ii)

prior to market open on the Bonus Share Expiration Date in the case of a Bonus Price Condition.

Unless earlier redeemed, the Warrants will expire and cease to be exercisable at 5:00 p.m. New York City

time on December 14, 2026 (the “Expiration Date”).

In connection with the Warrant distribution, we filed a prospectus supplement, dated December 14, 2023,

pursuant to our existing shelf registration statement on Form F-3 declared effective on July 9, 2021,

registering up to 33,919,605 shares of common stock to be issued upon exercise of the Warrants under the

Securities Act of 1933, as amended.

The Warrants commenced trading on the New York Stock Exchange under the ticker “DSX WS” on

December 14, 2023.

DESCRIPTION OF PREFERRED STOCK PURCHASE RIGHTS

On February 2, 2024, we entered into an Amended and Restated Stockholders Rights Agreement with

Computershare Trust Company, N.A., as Rights Agent, to amend and restate the Stockholders Rights

Agreement, dated January 15, 2016.

Under the Rights Agreement, we declared a dividend payable of one preferred stock purchase right, or Right,

for each share of common stock outstanding at the close of business on January 26, 2016. Each Right entitles

the registered holder to purchase from us one one-thousandth of a share of Series A Participating Preferred

Stock, par value $0.01 per share, at an exercise price of $25.00 per share. The Rights will separate from the

common stock and become exercisable only if a person or group acquires beneficial ownership of 15% or

more of our common stock (including through entry into certain derivative positions) in a transaction not

approved by our board of directors. In that situation, each holder of a Right (other than the acquiring person,

whose Rights will become void and will not be exercisable) will have the right to purchase, upon payment of

the exercise price, a number of shares of our common stock having a then-current market value equal to twice

the exercise price. In addition, if the Company is acquired in a merger or other business combination after an

acquiring person acquires 15% or more of our common stock, each holder of the Right will thereafter have

the right to purchase, upon payment of the exercise price, a number of shares of common stock of the

acquiring person having a then-current market value equal to twice the exercise price. The acquiring person

will not be entitled to exercise these Rights. Until a Right is exercised, the holder of a Right will have no

rights to vote or receive dividends or any other stockholder rights.

The Rights may have anti-takeover effects. The Rights will cause substantial dilution to any person or group

that attempts to acquire us without the approval of our board of directors. As a result, the overall effect of the

Rights may be to render more difficult or discourage any attempt to acquire us. Because our board of directors

can approve a redemption of the Rights or a permitted offer, the Rights should not interfere with a merger or

other business combination approved by our board of directors.

We have summarized the material terms and conditions of the Rights Agreement and the Rights below. For

a complete description of the Rights, we encourage you to read the Rights Agreement, which we have filed

as an exhibit to the registration statement filed with the Commission on February 2, 2024.

Detachment of the Rights

The Rights are attached to all certificates representing our currently outstanding common stock, or, in the

case of uncertificated common shares registered in book entry form, which we refer to as "book entry shares,"

by notation in book entry accounts reflecting ownership, and will attach to all common stock certificates and

book entry shares we issue prior to the Rights distribution date that we describe below. The Rights are not

exercisable until after the Rights distribution date and will expire at the close of business on January 14,

2026, unless we redeem or exchange them earlier as we describe below. The Rights will separate from the

common stock and a Rights distribution date would occur, subject to specified exceptions, on the earlier of

the following two dates:

•

the 10th day after public announcement that a person or group has acquired ownership of 15%

or more of the Company's common stock; or

•

the 10th business day (or such later date as determined by the Company's board of directors)

after a person or group announces a tender or exchange offer which would result in that person

or group holding 15% or more of the Company's common stock.

"Acquiring person" is generally defined in the Rights Agreement as any person, together with all affiliates or

associates, who beneficially owns 15% or more of the Company's common stock. However, the Company,

any subsidiary of the Company or any employee benefit plan of the Company or of any subsidiary of the

Company, or any person holding shares of common stock for or pursuant to the terms of any such plan, are

excluded from the definition of "acquiring person." In addition, persons who beneficially own 15% or more

of the Company's common stock on the effective date of the Rights Agreement are excluded from the

definition of "acquiring person" unless and until such time as such Person shall become the Beneficial Owner

of an aggregate of 18.5% or more of the Company’s then outstanding Common Stock, (excluding shares

acquired pursuant to a grant under a Company equity incentive plan, a dividend or distribution paid or made

by the Company on the outstanding shares of Common Stock in shares of Common Stock or securities

convertible into shares of Common Stock or pursuant to a split or subdivision of the outstanding shares of

Common Stock), and provided further, that Tuscany Shipping Corp. individually or together with one or

more of its Affiliates shall not be or become an “Acquiring Person” as defined herein.

Our board of directors may defer the Rights distribution date in some circumstances, and some inadvertent

acquisitions will not result in a person becoming an acquiring person if the person promptly divests itself of

a sufficient number of shares of common stock.

Until the Rights distribution date:

•

our common stock certificates and book entry shares will evidence the Rights, and the Rights

will be transferable only with those certificates; and

•

any new common stock will be issued with Rights and new certificates or book entry shares,

as applicable, will contain a notation incorporating the Rights Agreement by reference.

As soon as practicable after the Rights distribution date, the Rights agent will mail certificates representing

the Rights to holders of record of common stock at the close of business on that date. After the Rights

distribution date, only separate Rights certificates will represent the Rights.

We will not issue Rights with any shares of common stock we issue after the Rights distribution date, except

as our board of directors may otherwise determine.

Flip-In Event

A "flip-in event" will occur under the Rights Agreement when a person becomes an acquiring person other

than pursuant to certain kinds of permitted offers. An offer is permitted under the Rights Agreement if a

person will become an acquiring person pursuant to a merger or other acquisition agreement that has been

approved by our board of directors prior to that person becoming an acquiring person.

If a flip-in event occurs and we have not previously redeemed the Rights as described under the heading

"Redemption of Rights" below or, if the acquiring person acquires less than 50% of our outstanding common

stock and we do not exchange the Rights as described under the heading "Exchange of Rights" below, each

Right, other than any Right that has become void, as we describe below, will become exercisable at the time

it is no longer redeemable for the number of shares of common stock, or, in some cases, cash, property or

other of our securities, having a current market price equal to two times the exercise price of such right.

When a flip-in event occurs, all Rights that then are, or in some circumstances that were, beneficially owned

by or transferred to an acquiring person or specified related parties will become void in the circumstances

the Rights Agreement specifies.

Transfer of Shares

The Board of Directors has the power and authority to make such rules and regulations as they may deem

expedient concerning the issuance, registration and transfer of shares of the Company’s stock, and may

appoint transfer agents and registrars thereof.

Comparison of Marshall Island Law to Delaware Law

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Delaware

Sharholder Meetings

Held at a time and place as designated in the

bylaws.

Special meetings of the shareholders may be

called by the board of directors or by such

person or persons as may be authorized by the

articles of incorporation or by the bylaws.

May be held within or without the Marshall

Islands.

Notice:

Whenever shareholders are required to take

any action at a meeting, written notice of the

meeting shall be given which shall state the

place, date and hour of the meeting and,

unless it is an annual meeting, indicate that it

is being issued by or at the direction of the

person calling the meeting. Notice of a

special meeting shall also state the purpose

for which the meeting is called.

A copy of the notice of any meeting shall be

given personally, sent by mail or by

electronic mail not less than 15 nor more than

60 days before the meeting.

May be held at such time or place as

designated in the certificate of incorporation

or the bylaws, or if not so designated, as

determined by the board of directors. Special

meetings of the shareholders may be called by 

the board of directors or by such person or

persons as may be authorized by the

certificate of incorporation or by the bylaws.

May be held within or without Delaware.

Notice:

Whenever shareholders are required to take

any action at a meeting, a written notice of the

meeting shall be given which shall state the

place, if any, date and hour of the meeting,

and the means of remote communication, if

any.

Written notice shall be given not less than 10

nor more than 60 days before the meeting.

Shareholders’ Voting Rights

Unless otherwise provided in the articles of

incorporation, any action required to be taken

at a meeting of shareholders may be taken

without a meeting, without prior notice and

Any action required to be taken at a meeting

of shareholders may be taken without a

meeting if a consent for such action is in

writing and is signed by shareholders having

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without a vote, if a consent in writing, setting

forth the action so taken, is signed by all the

shareholders entitled to vote with respect to

the subject matter thereof, or if the articles of

incorporation so provide, by the holders of

outstanding shares having not less than the

minimum number of votes that would be

necessary to authorize or take such action at a

meeting at which all shares entitled to vote

thereon were present and voted.

Any person authorized to vote may authorize

another person or persons to act for him by

proxy.

Unless otherwise provided in the articles of

incorporation or bylaws, a majority of shares

entitled to vote constitutes a quorum. In no

event shall a quorum consist of fewer than

one-third of the shares entitled to vote at a

meeting.

When a quorum is once present to organize a

meeting, it is not broken by the subsequent

withdrawal of any shareholders.

The articles of incorporation may provide for

cumulative voting in the election of directors.

not fewer than the minimum number of votes

that would be necessary to authorize or take

such action at a meeting at which all shares

entitled to vote thereon were present and

voted. 

Any person authorized to vote may authorize

another person or persons to act for him by

proxy.

For stock corporations, the certificate of

incorporation or bylaws may specify the

number of shares required to constitute a

quorum but in no event shall a quorum consist

of less than one-third of shares entitled to vote

at a meeting. In the absence of such

specifications, a majority of shares entitled to

vote shall constitute a quorum.

When a quorum is once present to organize a

meeting, it is not broken by the subsequent

withdrawal of any shareholders.

The certificate of incorporation may provide

for cumulative voting in the election of

directors. 

Marshall Islands Merger or Consolidation 

Any two or more domestic corporations may

merge into a single corporation if approved

by the board and if authorized by a majority

vote of the holders of outstanding shares at a

shareholder meeting.

Any sale, lease, exchange or other disposition

of all or substantially all the assets of a

corporation, if not made in the corporation’s

usual or regular course of business, once

approved by the board, shall be authorized by

the affirmative vote of two-thirds of the

shares of those entitled to vote at a

shareholder meeting.

Any domestic corporation owning at least

90% of the outstanding shares of each class of

another domestic corporation may merge such

Any two or more corporations existing under

the laws of the state may merge into a single

corporation pursuant to a board resolution and

upon the majority vote by shareholders of

each constituent corporation at an annual or

special meeting.

Every corporation may at any meeting of the

board sell, lease or exchange all or

substantially all of its property and assets as

its board deems expedient and for the best

interests of the corporation when so

authorized by a resolution adopted by the

holders of a majority of the outstanding stock

of the corporation entitled to vote.

Any corporation owning at least 90% of the

outstanding shares of each class of another

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other corporation into itself without the

authorization of the shareholders of any

corporation.

Any mortgage, pledge of or creation of a

security interest in all or any part of the

corporate property may be authorized without

the vote or consent of the shareholders, unless

otherwise provided for in the articles of

incorporation.

corporation may merge the other corporation

into itself and assume all of its obligations

without the vote or consent of shareholders;

however, in case the parent corporation is not

the surviving corporation, the proposed

merger shall be approved by a majority of the

outstanding stock of the parent corporation

entitled to vote at a duly called shareholder

meeting. Any mortgage or pledge of a

corporation’s property and assets may be

authorized without the vote or consent of

shareholders, except to the extent that the

certificate of incorporation otherwise

provides.

Directors 

The board of directors must consist of at least

one member.

The number of board members may be

changed by an amendment to the bylaws, by

the shareholders, or by action of the board

under the specific provisions of a bylaw.

If the board is authorized to change the

number of directors, it can only do so by a

majority of the entire board and so long as no

decrease in the number shall shorten the term

of any incumbent director.

Removal:

Any or all of the directors may be removed

for cause by vote of the shareholders.

If the articles of incorporation or the bylaws

so provide, any or all of the directors may be

removed without cause by vote of the

shareholders.

The board of directors must consist of at least

one member.

The number of board members shall be fixed

by, or in a manner provided by, the bylaws,

unless the certificate of incorporation fixes

the number of directors, in which case a

change in the number shall be made only by

an amendment to the certificate of

incorporation.

If the number of directors is fixed by the

certificate of incorporation, a change in the

number shall be made only by an amendment

of the certificate.

Removal:

Any or all of the directors may be removed,

with or without cause, by the holders of a

majority of the shares entitled to vote unless

the certificate of incorporation otherwise

provides.

In the case of a classified board, shareholders

may effect removal of any or all directors

only for cause. 

Appraisal rights shall be available for the

shares of any class or series of stock of a

corporation in a merger or consolidation,

subject to limited exceptions, such as a

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Delaware

merger or consolidation of corporations listed

on a national securities exchange in which

listed stock is offered for consideration is (i)

listed on a national securities exchange or (ii)

held of record by more than 2,000 holders.

Dissenters’ Rights of Appraisal 

Shareholders have a right to dissent from any

plan of merger, consolidation or sale of all or

substantially all assets not made in the usual

course of business, and receive payment of

the fair value of their shares. However, the

right of a dissenting shareholder under the

BCA to receive payment of the appraised fair

value of his shares shall not be available for

the shares of any class or series of stock,

which shares or depository receipts in respect

thereof, at the record date fixed to determine

the shareholders entitled to receive notice of

and to vote at the meeting of the shareholders

to act upon the agreement of merger or

consolidation, were either (i) listed on a

securities exchange or admitted for trading on

an interdealer quotation system or (ii) held of

record by more than 2,000 holders. The right

of a dissenting shareholder to receive

payment of the fair value of his or her shares

shall not be available for any shares of stock

of the constituent corporation surviving a

merger if the merger did not require for its

approval the vote of the shareholders of the

surviving corporation.

A holder of any adversely affected shares

who does not vote on or consent in writing to

an amendment to the articles of incorporation

has the right to dissent and to receive

payment for such shares if the amendment:

• Alters or abolishes any preferential

right of any outstanding shares having

preference; or

• Creates, alters, or abolishes any

provision or right in respect to the

redemption of any outstanding shares;

or

In any derivative suit instituted by a

shareholder of a corporation, it shall be

averred in the complaint that the plaintiff was

a shareholder of the corporation at the time of

the transaction of which he complains or that

such shareholder’s stock thereafter devolved

upon such shareholder by operation of law.

Other requirements regarding derivative suits

have been created by judicial decision,

including that a shareholder may not bring a

derivative suit unless he or she first demands

that the corporation sue on its own behalf and

that demand is refused (unless it is shown that

such demand would have been futile).

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Delaware

• Alters or abolishes any preemptive

right of such holder to acquire shares

or other securities; or

• Excludes or limits the right of such

holder to vote on any matter, except

as such right may be limited by the

voting rights given to new shares then

being authorized of any existing or

new class.

Shareholder’s Derivative Actions

An action may be brought in the right of a

corporation to procure a judgment in its favor,

by a holder of shares or of voting trust

certificates or of a beneficial interest in such

shares or certificates. It shall be made to

appear that the plaintiff is such a holder at the

time of bringing the action and that he was

such a holder at the time of the transaction of

which he complains, or that his shares or his

interest therein devolved upon him by

operation of law. A complaint shall set forth

with particularity the efforts of the plaintiff to

secure the initiation of such action by the

board or the reasons for not making such

effort.

Such action shall not be discontinued,

compromised or settled, without the approval

of the High Court of the Republic of the

Marshall Islands.

Reasonable expenses including attorney’s

fees may be awarded if the action is

successful.

A corporation may require a plaintiff bringing

a derivative suit to give security for

reasonable expenses if the plaintiff owns less

than 5% of any class of outstanding shares or

holds voting trust certificates or a beneficial

interest in shares representing less than 5% of

any class of such shares and the shares, voting

trust certificates or beneficial interest of such

plaintiff has a fair value of $50,000 or less.

EX-8.1

Exhibit 8.1

SUBSIDIARIES AS AT DECEMBER 31, 2023

Company

Country Of Incorporation

Aerik Shipping Company Inc.

The Republic Of The Marshall Islands

Arorae Shipping Company Inc. 

The Republic Of The Marshall Islands

Aster Shipping Company Inc.

The Republic Of The Marshall Islands

Beru Shipping Company Inc. 

The Republic Of The Marshall Islands

Bikati Shipping Company Inc.

The Republic Of The Marshall Islands

Bikini Shipping Company Inc.

The Republic Of The Marshall Islands

Bokak Shipping Company Inc.

The Republic Of The Marshall Islands

Bonriki Shipping Company Inc. 

The Republic Of The Marshall Islands

Bulk Carriers (USA) LLC

State Of Delaware

Cebu Shipping Company Inc.

The Republic Of The Marshall Islands

Cerada International S.A.

Republic Of Panama

Diana Energize Inc.

The Republic Of The Marshall Islands

Diana General Partner Inc.

The Republic Of The Marshall Islands

Diana Ship Management Inc.

The Republic Of The Marshall Islands

Diana Shipping Services S.A.

Panama

Ebadon Shipping Company Inc.

The Republic Of The Marshall Islands

Ejite Shipping Company Inc. 

The Republic Of The Marshall Islands

Erikub Shipping Company Inc.

The Republic Of The Marshall Islands

Fayo Shipping Company Inc.

The Republic Of The Marshall Islands

Gala Properties Inc.

The Republic Of The Marshall Islands

Guam Shipping Company Inc.

The Republic Of The Marshall Islands

Jabat Shipping Company Inc.

The Republic Of The Marshall Islands

Jabwot Shipping Company Inc. 

The Republic Of The Marshall Islands

Jemo Shipping Company Inc.

The Republic Of The Marshall Islands

Kaben Shipping Company Inc.

The Republic Of The Marshall Islands

Kili Shipping Company Inc.

The Republic Of The Marshall Islands

Kiribati Shipping Company Inc. 

The Republic Of The Marshall Islands

Knox Shipping Company Inc.

The Republic Of The Marshall Islands

Komi Shipping Company Inc.

The Republic Of The Marshall Islands

Lae Shipping Company Inc.

The Republic Of The Marshall Islands

Lakeba Shipping Company Inc.

The Republic Of The Marshall Islands

Lelu Shipping Company Inc.

The Republic Of The Marshall Islands

Lib Shipping Company Inc.

The Republic Of The Marshall Islands

Majuro Shipping Company Inc.

The Republic Of The Marshall Islands

Makur Shipping Company Inc.

The Republic Of The Marshall Islands

Mandaringina Inc.

The Republic Of The Marshall Islands

Manra Shipping Company Inc. 

The Republic Of The Marshall Islands

Mejato Shipping Company Inc.

The Republic Of The Marshall Islands

Monu Shipping Company Inc.

The Republic Of The Marshall Islands

Namorik Shipping Company Inc.

The Republic Of The Marshall Islands

Namu Shipping Company Inc. 

The Republic Of The Marshall Islands

Palau Shipping Company Inc.

The Republic Of The Marshall Islands

Pulap Shipping Company Inc.

The Republic Of The Marshall Islands

Rairok Shipping Company Inc.

The Republic Of The Marshall Islands

Rakaru Shipping Company Inc.

The Republic Of The Marshall Islands

Silver Chandra Shipping Company Limited

Republic Of Cyprus

Tamana Shipping Company Inc. 

The Republic Of The Marshall Islands

Taongi Shipping Company Inc. 

The Republic Of The Marshall Islands

Taroa Shipping Company Inc.

The Republic Of The Marshall Islands

Toku Shipping Company Inc.

The Republic Of The Marshall Islands

Tuvalu Shipping Company Inc.

The Republic Of The Marshall Islands

Ujae Shipping Company Inc.

The Republic Of The Marshall Islands

Wake Shipping Company Inc.

The Republic Of The Marshall Islands

Weno Shipping Company Inc.

The Republic Of The Marshall Islands

Wotho Shipping Company Inc.

The Republic Of The Marshall Islands

EX-12.1

Exhibit 12.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

I, Semiramis Paliou, certify that:

1. I have reviewed this annual report on Form 20-F of Diana Shipping Inc. for the year ended December 31, 2023;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a

material fact necessary to make the statements made, in light of the circumstances under which such statements were

made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the company as of, and

for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls

and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial

reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be

designed under our supervision, to ensure that material information relating to the company, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to

be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and

the preparation of financial statements for external purposes in accordance with generally accepted accounting

principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by

this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during

the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the

company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal

control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors

(or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and

report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in

the company’s internal control over financial reporting.

Date: April 4, 2024

/s/ Semiramis Paliou

Semiramis Paliou

Chief Executive Officer (Principal Executive Officer)

EX-12.2

Exhibit 12.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

I, Ioannis Zafirakis, certify that:

1. I have reviewed this annual report on Form 20-F of Diana Shipping Inc. for the year ended December

31, 2023;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to

state a material fact necessary to make the statements made, in light of the circumstances under which

such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,

fairly present in all material respects the financial condition, results of operations and cash flows of the

company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure

controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control

over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and

have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures

to be designed under our supervision, to ensure that material information relating to the company, including

its consolidated subsidiaries, is made known to us by others within those entities, particularly during the

period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial

reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this

report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of

the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that

occurred during the period covered by the annual report that has materially affected, or is reasonably likely

to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of

internal control over financial reporting, to the company’s auditors and the audit committee of the company’s

board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over

financial reporting which are reasonably likely to adversely affect the company’s ability to record, process,

summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant

role in the company’s internal control over financial reporting.

Date: April 4, 2024

/s/ Ioannis Zafirakis

Ioannis Zafirakis

Chief Financial Officer (Principal Financial Officer)

EX-13.1

Exhibit 13.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Annual Report of Diana Shipping Inc. (the “Company”) on Form 20-F for the year

ended December 31, 2023 as filed with the Securities and Exchange Commission (the “SEC”) on or about

the date hereof (the “Report”), I, Semiramis Paliou, Chief Executive Officer of the Company, certify,

pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of

2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities

Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial

condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the

Company and furnished to the SEC or its staff upon request.

Date: April 4, 2024

/s/ Semiramis Paliou

Semiramis Paliou

Chief Executive Officer (Principal Executive Officer)

EX-13.2

Exhibit 13.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Annual Report of Diana Shipping Inc. (the “Company”) on Form 20-F for the year

ended December 31, 2023 as filed with the Securities and Exchange Commission (the “SEC”) on or about

the date hereof (the “Report”), I, Ioannis Zafirakis, Chief Financial Officer of the Company, certify, pursuant

to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities

Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial

condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the

Company and furnished to the SEC or its staff upon request.

Date: April 4, 2024

/s/ Ioannis Zafirakis

Ioannis Zafirakis

Chief Financial Officer (Principal Financial Officer)

EX-15.1

ERNST & YOUNG (HELLAS)

Certified Auditors-Accountants S.A.

8

B

Chimarras str., Maroussi

151 25 Athens, Greece

Tel: +30 210 2886 000

Fax:+30 210 2886 905

ey.com

Exhibit 15.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1)

Registration Statement (Form F-3 No. 333– 256791) of Diana Shipping Inc., and

(2)

Registration Statement (Form F-3 No. 333-266999) of Diana Shipping Inc.; 

of our reports dated April 4, 2024, with respect to the consolidated financial statements of Diana Shipping

Inc. and the effectiveness of internal control over financial reporting of Diana Shipping Inc. included in this

Annual Report (Form 20-F) for the year ended December 31, 2023. 

/s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A.

Athens, Greece

April 4, 2024

EX-4.49

Dated April 2023

$100,000,000

TERM LOAN FACILITY

MAJURO SHIPPING COMPANY INC.

TOKU SHIPPING COMPANY INC.

MEJATO SHIPPING COMPANY INC.

RAKARU SHIPPING COMPANY INC.

EBADON SHIPPING COMPANY INC.

PULAP SHIPPING COMPANY INC.

WENO SHIPPING COMPANY INC.

ERIKUB SHIPPING COMPANY INC.

WOTHO SHIPPING COMPANY INC.

as joint and several Borrowers

and

DIANA SHIPPING INC.

as Parent Guarantor

and

DANISH SHIP FINANCE A/S

as Original Lender

FACILITY AGREEMENT

relating to

(i) the refinancing of the Existing Indebtedness secured on m.vs. "ALCMENE", "SEATTLE", "PHAIDRA",

"ELECTRA", "ASTARTE", "P. S. PALIOS" and "G. P. ZAFIRAKIS",

(ii) the refinancing of the Borrowers' equity in respect of m.vs "CRYSTALIA " and "ATALANDI " 

and (iii) the provision to the Borrowers of working capital for their general corporate purposes

Index

Clause Page

Section 1 Interpretation ........................................................................................................................... 3

1 Definitions and Interpretation .................................................................................................... 3

Section 2 The Facility ..............................................................................................................................30

2 The Facility .................................................................................................................................30

3 Purpose......................................................................................................................................30

4 Conditions of Utilisation ............................................................................................................31

Section 3 Utilisation................................................................................................................................33

5 Utilisation ..................................................................................................................................33

Section 4 Repayment, Prepayment and Cancellation ............................................................................36

6 Repayment ................................................................................................................................36

7 Prepayment and Cancellation ...................................................................................................37

Section 5 Costs of Utilisation ..................................................................................................................41

8 Interest ......................................................................................................................................41

9 Interest Periods .........................................................................................................................42

10 Changes to the Calculation of Interest ......................................................................................42

11 Fees ...........................................................................................................................................47

Section 6 Additional Payment Obligations .............................................................................................49

12 Tax Gross Up and Indemnities ...................................................................................................49

13 Increased Costs .........................................................................................................................52

14 Other Indemnities .....................................................................................................................54

15 Mitigation by the Lender and force Majeure ............................................................................56

16 Costs and Expenses ...................................................................................................................57

Section 7 Guarantees and Joint and Several Liability of Borrowers .......................................................59

17 Guarantee and Indemnity – Parent Guarantor .........................................................................59

18 Joint and Several Liability of the Borrowers ..............................................................................62

Section 8 Representations, Undertakings and Events of Default ..........................................................64

19 Representations ........................................................................................................................64

20 Information Undertakings .........................................................................................................71

21 Financial Covenants ...................................................................................................................74

22 General Undertakings ...............................................................................................................76

23 Insurance Undertakings ............................................................................................................83

24 General Ship Undertakings ........................................................................................................89

25 Security Cover ...........................................................................................................................96

26 Earnings Accounts and Application of Earnings ........................................................................98

27 Events of Default .......................................................................................................................99

Section 9 The Lender and the Obligors ................................................................................................104

28 Changes to the Lender ............................................................................................................104

29 Changes to the Transaction Obligors ......................................................................................105

Section 10 Administration ....................................................................................................................107

30 Payment Mechanics ................................................................................................................107

31 Set-Off .....................................................................................................................................109

32 Conduct of Business by the Lender .........................................................................................109

33 Bail-In .......................................................................................................................................109

34 Notices .....................................................................................................................................109

35 Calculations and Certificates ...................................................................................................111

36 Partial Invalidity .......................................................................................................................112

37 Remedies and Waivers ............................................................................................................112

38 Entire Agreement ....................................................................................................................112

39 Settlement or Discharge Conditional ......................................................................................112

40 Irrevocable Payment ...............................................................................................................112

41 Amendments ...........................................................................................................................113

42 Confidential Information .........................................................................................................113

43 Confidentiality of Funding Rates .............................................................................................116

44 Counterparts ...........................................................................................................................117

Section 11 Governing Law and Enforcement .......................................................................................118

45 Governing Law .........................................................................................................................118

46 Enforcement ............................................................................................................................118

Schedules

Schedule 1 The Parties .........................................................................................................................119

Part A The Obligors ................................................................................................................. 119

Part B The Original Lender ...................................................................................................... 121

Schedule 2 Conditions Precedent ........................................................................................................122

Part A Conditions Precedent to Utilisation Request .............................................................. 122

Part B Conditions Precedent to Utilisation under each Tranche ............................................ 126

Schedule 3 Utilisation Request .............................................................................................................128

Schedule 4 Form of Compliance Certificate .........................................................................................130

Schedule 5 Details of the Ships ............................................................................................................131

Schedule 6 Timetables..........................................................................................................................133

Execution

Execution Pages ....................................................................................................................................134

THIS AGREEMENT

is made on April 2023

PARTIES

(1)

MAJURO SHIPPING CO MPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower A

")

(2)

TOKU

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower B

")

(3)

MEJATO

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower C

")

(4)

RAKARU

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower D

")

(5)

EBADON

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower E

")

(6)

PULAP

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower F

")

(7)

WENO

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower G

")

(8)

ERIKUB

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower H

")

(9)

WOTHO

SHIPPING COMPANY INC.

, a corporation incorporated in the Republic of The Marshall

Islands whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH96960, The Marshall Islands as a borrower ("

Borrower I

")

(10)

DIANA SHIPPING INC.

, a corporation incorporated in the Republic of The Marshall Islands whose

registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro MH96960,

The Marshall Islands as guarantor (the "

Parent Guarantor

")

(11)

DANISH SHIP FINANCE A/S

 as lender (the "

Original Lender

")

BACKGROUND

The Lender has agreed to make available to the Borrowers a term loan facility of up to the lesser of (i)

$100,000,000 and (ii) 60 per cent. of the aggregate Initial Market Value of the Ships in nine Tranches for

the purposes of:

(a)

refinancing the Existing Indebtedness secured on Ship A, Ship B, Ship C, Ship D and Ship E

under Existing Loan Agreement A;

(b)

refinancing the Existing Indebtedness secured on Ship F and Ship G under Existing Loan

Agreement B;

(c)

refinancing the Borrowers' equity which has been applied against prepayment of the

indebtedness under Loan Agreement C; and

(d)

providing the Borrowers with working capital for their general corporate purposes.

OPERATIVE PROVISIONS

SECTION 1

INTERPRETATION

1

DEFINITIONS AND INTERPRETATION

1.1

Definitions

In this Agreement:

"

Account Bank

" means, in relation to the Earnings Account held in the name of:

(a)

Borrower B, Borrower F, Borrower G, Borrower H and Borrower I, ABN AMRO Bank N.V.

acting through its office at Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands,

and registered with the Dutch Commercial Register (

Handelsregister

) under number

34334259; and

(b)

Borrower A, Borrower C, Borrower D and Borrower E, Joh. Berenberg, Gossler & Co. KG,

acting through its office at Neuer Jungfernstieg 20, 20354 Hamburg, Germany,

or any replacement bank or other financial institution as may be approved by the

Lender.

"

Account Security

" means a document creating Security over any Earnings Account in agreed

form.

"

Advance

" means a borrowing of all or part of a Tranche under this Agreement.

"

Affiliate

" means, in relation to any person, a Subsidiary of that person or a Holding Company of

that person or any other Subsidiary of that Holding Company.

"

Annex VI

" means Annex VI of the Protocol of 1997 (as subsequently amended from time to time)

to amend the International Convention for the Prevention of Pollution from Ships 1973 (Marpol),

as modified by the Protocol of 1978 relating thereto.

"

Anti-Money Laundering Laws

" means all applicable anti-corruption laws, anti-bribery laws, anti-

money laundering laws and reporting requirements, regulations or rules in any applicable

jurisdiction.

"

Approved Brokers

" means any firm or firms of insurance brokers approved in writing by the

Lender.

"

Approved Classification

" means, in relation to a Ship:

(a)

as at the date of this Agreement, the classification in relation to that Ship specified in

Schedule 5 (

Details of the Ships

); 

(b)

the equivalent classification with another Approved Classification Society; or

(c)

another classification approved by the Lender as its classification, at the request of the

relevant Borrower.

"

Approved Classification Society

" means, in relation to a Ship:

(a)

 as at the date of this Agreement the classification society in relation to that Ship specified

in Schedule 5 (

Details of the Ships

) subject to Clause 4.5 (

Conditions subsequent

) and

paragraph (c) of Clause 24.3 (

Repair and classification

); and

(b)

American Bureau of Shipping, Bureau Veritas, Det Norske Veritas/Germanischer Lloyd,

Lloyd's Register, Nippon Kaiji, Polish Register of Shipping, Registro Italiano Navale (RINA)

or any other classification society which is a member of the International Association of

Classification Societies and is approved in writing by the Lender. 

"

Approved Commercial Manager

" means, in relation to a Ship:

(a)

as at the date of this Agreement, the manager specified as the approved commercial

manager in relation to that Ship in Schedule 5 (

Details of the Ships

); 

(b)

DWM or Diana Shipping; or

(c)

any other person approved in writing by the Lender, as the commercial manager of that

Ship.

"

Approved Flag

" means, in relation to a Ship, as at the date of this Agreement, the flag in relation

to that Ship specified in Schedule 5 (

Details of the Ships

) or such other flag and, if applicable port

of registry, approved in writing by the Lender and a reference to "the Approved Flag" in respect of

a Ship shall be a reference to the flag and, if applicable port of registry, under which that Ship is

then flagged with the agreement of the Lender.

"

Approved Manager

" means, in relation to a Ship, the Approved Commercial Manager or the

Approved Technical Manager of that Ship.

"

Approved Technical Manager

" means in relation to a Ship:

(a)

 as at the date of this Agreement, the manager specified as the approved technical

manager in relation to that Ship in Schedule 5 (

Details of the Ships

); 

(b)

DWM or Diana Shipping; or

(c)

any other person approved in writing by the Lender, as the technical manager of that Ship.

"

Approved Valuer

" means Arrow Valuations, Braemar ACM Valuations, Clarksons, Fearnleys,

Galbraith, Howe Robinson and SSY (or any Affiliate of such person through which valuations are

commonly issued) or any other firm or firms of independent sale and purchase shipbrokers

approved in writing by the Lender.

"

Article 55 BRRD

" means Article 55 of Directive 2014/59/EU establishing a framework for the

recovery and resolution of credit institutions and investment firms.

"

Assignable Charter

" means, in relation to a Ship:

(a)

any time or consecutive voyage Charter in respect of that Ship which exceeds or, by virtue

of any optional extensions, is capable of exceeding, a duration of 12 months, made on

terms and with a third party charterer approved in writing by the Lender; and

(b)

any intra-Group time or consecutive voyage Charter for any tenor in respect of that Ship.

"

Authorisation

" means an authorisation, consent, approval, resolution, licence, exemption, filing,

notarisation, legalisation or registration.

"

Availability Period

" means, in relation to each Tranche, the period from and including the date

of this Agreement to and including 1 May 2023.

"

Available Facility

" means the Commitment minus:

(a)

the amount of the outstanding Loan; and

(b)

in relation to any proposed Utilisation, the amount of any Advance that is due to be made

on or before the proposed Utilisation Date.

"

Bail-In Action

" means the exercise of any Write-down and Conversion Powers.

"

Bail-In Legislation

" means:

(a)

in relation to an EEA Member Country which has implemented, or which at any time

implements, Article 55 BRRD, the relevant implementing law or regulation as described in

the EU Bail-In Legislation Schedule from time to time; 

(b)

in relation to any state other than such an EEA Member Country and the United Kingdom,

any analogous law or regulation from time to time which requires contractual recognition

of any Write-down and Conversion Powers contained in that law or regulation; and

(c)

in relation to the United Kingdom, the UK Bail-In Legislation.

"

Borrower

" means Borrower A, Borrower B, Borrower C, Borrower D, Borrower E, Borrower F,

Borrower G, Borrower H or Borrower I.

"

Break Costs

" means all costs, liability or loss including a loss of prospective profit, premiums or

penalties incurred by the Lender in the circumstances contemplated by Clause 14.2 (

Other

indemnities

), or as a result of it receiving any prepayment of all or any part of the Loan (whether

pursuant to Clause 6 (

Repayment) and Clause 7 (Prepayment and Cancellation

) or otherwise), or

any other payment under or in relation to the Finance Documents on a day other than the due

date for payment of the sum in question, and includes (without limitation) any losses or costs

incurred in such circumstances in liquidating or re-employing any funding obtained from third

parties acquired to effect or maintain the Loan, and any liabilities, expenses or losses incurred by

the Lender in terminating or reversing, or otherwise in connection with, any interest rate and/or

currency swap, transaction or arrangement entered into by the Lender to hedge any exposure

arising under this Agreement, or in terminating or reversing, or otherwise in connection with, any

open position arising under this Agreement or a number of transactions of which this Agreement

is one.

"

Business Day

" means a day (other than a Saturday or Sunday) on which banks are open for

general business in Athens, Copenhagen and: 

(a)

New York; and

(b)

(in relation to the fixing of an interest rate) which is a US Government Securities Business

Day.

"

Change of Control

" means the occurrence of any of the following acts, events or circumstances

without the prior written consent of the Lender: 

(a)

the shares of the Parent Guarantor cease to be listed on the New York Stock Exchange or

any other stock exchange acceptable to the Lender; and/or

(b)

the Palios Family (either directly or indirectly through companies legally and beneficially

owned) ceases to own at least 12.5 per cent. of the common stock in the Parent

Guarantor; and/or

(c)

the Palios Family (either directly or indirectly through companies legally and beneficially

owned) ceases to control at least 25 per cent. of the maximum number of votes that might

be cast in respect of any matter submitted to the vote of the shareholders of the Parent

Guarantor; and/or

(d)

Semiramis Paliou ceases to hold the Chief Executive Officer position in the Parent

Guarantor and active role in the decision making in respect of the Parent Guarantor.

"

Charter

" means, in relation to a Ship, any charter relating to that Ship, or other contract for its

employment, whether or not already in existence.

"

Charter Guarantee

" means any guarantee, bond, letter of credit or other instrument (whether or

not already issued) supporting a Charter.

"

Charterparty Assignment

" means, in respect of any Assignable Charter, a first priority assignment

of the rights of the relevant Borrower in respect of that Assignable Charter in agreed form.

"

Code

" means the US Internal Revenue Code of 1986.

"

Commercial Management Agreement

" means the agreement entered into between a Borrower

and the Approved Commercial Manager regarding the commercial management of a Ship.

"

Commitment

" means $100,000,000, to the extent not cancelled or reduced under this

Agreement.

"

Compliance Certificate

" means a certificate in the form set out in Schedule 4 (

Form of Compliance

Certificate

) or in any other form agreed between the Parent Guarantor and the Lender. 

"

Confidential Information

" means all information relating to any Transaction Obligor, the Group,

the Finance Documents or the Facility of which the Lender becomes aware in its capacity as, or for

the purpose of becoming, the Lender or which is received by the Lender in relation to, or for the

purpose of becoming the Lender under, the Finance Documents or the Facility from any member

of the Group or any of its advisers in whatever form, and includes information given orally and any

document, electronic file or any other way of representing or recording information which

contains or is derived or copied from such information but excludes:

(a)

information that:

(i)

is or becomes public information other than as a direct or indirect result of any

breach by the Lender of Clause 42 (

Confidential Information

);

(ii)

is identified in writing at the time of delivery as non-confidential by any member

of the Group or any of its advisers; or

(iii)

is known by the Lender before the date the information is disclosed to it by any

member of the Group or any of its advisers or is lawfully obtained by the Lender

after that date, from a source which is, as far as the Lender is aware, unconnected

with the Group and which, in either case, as far as the Lender is aware, has not

been obtained in breach of, and is not otherwise subject to, any obligation of

confidentiality; and

(b)

any Funding Rate.

"

Confidentiality Undertaking

" means a confidentiality undertaking in substantially the

appropriate form recommended by the LMA from time to time or in any other form agreed

between the Borrowers and the Lender.

"

Deed of Release

" means, in respect of each Existing Loan Agreement, a deed releasing the

relevant Existing Security in a form acceptable to the Lender.

"

Default

" means an Event of Default or a Potential Event of Default.

"

Delegate

" means any delegate, agent, attorney or co-trustee appointed by the Lender.

"

Diana Shipping

" means Diana Shipping Services S.A., a company incorporated and existing under

the laws of Panama having its registered office at Edificio Universal, Piso 12, Avenida Federico

Boyd, Panama, Republic of Panama and maintaining an office at 16 Pendelis Street, 175 64, Palaio

Faliro, Greece.

"

Disruption Event

" means either or both of:

(a)

a material disruption to those payment or communications systems or to those financial

markets which are, in each case, required to operate in order for payments to be made in

connection with the Facility (or otherwise in order for the transactions contemplated by

the Finance Documents to be carried out) which disruption is not caused by, and is beyond

the control of, any of the Parties or, if applicable, any Transaction Obligor; or

(b)

the occurrence of any other event which results in a disruption (of a technical or systems-

related nature) to the treasury or payments operations of a Party or, if applicable, any

Transaction Obligor preventing that, or any other, Party or, if applicable, any Transaction

Obligor:

(i)

from performing its payment obligations under the Finance Documents; or

(ii)

from communicating with other Parties or, if applicable, any Transaction Obligor

in accordance with the terms of the Finance Documents,

and which (in either such case) is not caused by, and is beyond the control of, the Party or, if

applicable, any Transaction Obligor whose operations are disrupted.

"

Document of Compliance

" has the meaning given to it in the ISM Code.

"

dollars

" and "

$

" mean the lawful currency, for the time being, of the United States of America.

"

DWM

" means Diana Wilhelmsen Management Limited, a company incorporated and existing

under the laws of the Republic of Cyprus having its registered office at 21 Vasili Michailidi Street,

3026 Limassol, Cyprus and maintaining an office at 350 Syngrou Avenue, Kalithea, Greece.

"

Earnings

" means, in relation to a Ship, all moneys whatsoever which are now, or later become,

payable (actually or contingently) to a Borrower or the Lender and which arise out of or in

connection with or relate to the use or operation of that Ship, including (but not limited to):

(a)

the following, save to the extent that any of them is, with the prior written consent of the

Lender, pooled or shared with any other person:

(i)

all freight, hire and passage moneys including, without limitation, all moneys

payable under, arising out of or in connection with a Charter or a Charter

Guarantee;

(ii)

the proceeds of the exercise of any lien on sub-freights;

(iii)

compensation payable to a Borrower or the Lender in the event of requisition of

that Ship for hire or use;

(iv)

remuneration for salvage and towage services;

(v)

demurrage and detention moneys;

(vi)

without prejudice to the generality of sub-paragraph (i) above, damages for

breach (or payments for variation or termination) of any charterparty or other

contract for the employment of that Ship;

(vii)

all moneys which are at any time payable under any Insurances in relation to loss

of hire;

(viii)

all monies which are at any time payable to a Borrower in relation to general

average contribution; and

(b)

if and whenever that Ship is employed on terms whereby any moneys falling within sub-

paragraphs (i) to (viii) of paragraph (a) above are pooled or shared with any other person,

that proportion of the net receipts of the relevant pooling or sharing arrangement which

is attributable to that Ship.

"

Earnings Account

" means, in relation to a Borrower:

(a)

an account in the name of that Borrower with the Account Bank designated "Earnings

Account";

(b)

any other account in the name of that Borrower with the Account Bank which may, with

the prior written consent of the Lender, be opened in lieu of the account referred to in

paragraph (a) above, irrespective of the number or designation of such replacement

account; or

(c)

any sub-account of any account referred to in paragraphs (a) or (b) above.

"

EEA Member Country

" means any member state of the European Union, Iceland, Liechtenstein

and Norway.

"

Environmental Approval

" means any present or future permit, ruling, variance or other

Authorisation required under Environmental Law.

"

Environmental Claim

" means any claim by any governmental, judicial or regulatory authority or

any other person which arises out of an Environmental Incident or an alleged Environmental

Incident or which relates to any Environmental Law and, for this purpose, "

claim

" includes a claim

for damages, compensation, contribution, injury, fines, losses and penalties or any other payment

of any kind, including in relation to clean-up and removal, whether or not similar to the foregoing;

an order or direction to take, or not to take, certain action or to desist from or suspend certain

action; and any form of enforcement or regulatory action, including the arrest or attachment of

any asset.

"

Environmental Incident

" means:

(a)

any release, emission, spill or discharge of Environmentally Sensitive Material whether

within a Ship or from a Ship into any other vessel or into or upon the air, water, land or

soils (including the seabed) or surface water; or

(b)

any incident in which Environmentally Sensitive Material is released, emitted, spilled or

discharged into or upon the air, water, land or soils (including the seabed) or surface water

from a vessel other than any Ship and which involves a collision between any Ship and

such other vessel or some other incident of navigation or operation, in either case, in

connection with which a Ship is actually or potentially liable to be arrested, attached,

detained or injuncted and/or a Ship and/or any Transaction Obligor and/or any operator

or manager of a Ship is at fault or allegedly at fault or otherwise liable to any legal or

administrative action; or

(c)

any other incident in which Environmentally Sensitive Material is released, emitted, spilled

or discharged into or upon the air, water, land or soils (including the seabed) or surface

water otherwise than from a Ship and in connection with which a Ship is actually or

potentially liable to be arrested and/or where any Transaction Obligor and/or any

operator or manager of a Ship is at fault or allegedly at fault or otherwise liable to any

legal or administrative action.

"

Environmental Law

" means any present or future law relating to vessel disposal, energy

efficiency, carbon reduction, emissions, emissions trading, pollution or protection of human

health or the environment, to conditions in the workplace, to the carriage, generation, handling,

storage, use, release or spillage of Environmentally Sensitive Material or to actual or threatened

releases of Environmentally Sensitive Material.

"

Environmentally Sensitive Material

" means and includes all contaminants, oil, oil products, toxic

substances and any other substance (including any chemical, gas or other hazardous or noxious

substance) which is (or is capable of being or becoming) polluting, toxic or hazardous.

"

EU Bail-In Legislation Schedule

" means the document described as such and published by the

LMA from time to time.

"

EU Ship Recycling Regulation

" means Regulation (EU) No 1257/2013 of the European Parliament

and of the Council of 20 November 2013 on ship recycling and amending Regulation (EC) No

1013/2006 and Directive 2009/16/EC.

"

Event of Default

" means any event or circumstance specified as such in Clause 27 (

Events of

Default

).

"

Existing Agent

" means, in respect of Existing Loan Agreement A and Existing Loan Agreement B,

BNP Paribas, acting through its office at 9 rue du débarcadère, 93500 Pantin, France.

"

Existing Indebtedness

" means, in respect of an Existing Loan Agreement, at any date, the

outstanding Financial Indebtedness of the Parent Guarantor or, as the case may be, the relevant

Borrowers on that date under that Existing Loan Agreement.

"

Existing Loan Agreement

" means Existing Loan Agreement A or Existing Loan Agreement B.

"

Existing Loan Agreement A

" means the loan agreement dated 13 July 2018 (as from time to time

amended and/or supplemented) and entered into between (i) the Parent Guarantor as borrower,

(ii) the banks and financial institutions listed in schedule 1 therein as lenders, (iii) BNP Paribas as

swap bank, bookrunner and security trustee and (iv) the Existing Agent as agent secured on Ship

A, Ship B, Ship C, Ship D and Ship E.

"

Existing Loan Agreement B

" means the loan agreement dated 18 December 2014 (as from time

to time amended and/or supplemented) and entered into between (i) Borrower F and Borrower E

as joint and several borrowers, (ii) the banks and financial institutions listed in schedule 1 therein

as lenders, (iii) BNP Paribas as swap bank and security trustee and (iv) the Existing Agent as agent

secured on Ship F and Ship G.

"

Existing Security

" means, in respect of an Existing Loan Agreement, any Security created to

secure the relevant Existing Indebtedness under Existing Loan Agreement A and Existing Loan

Agreement B.

"

Facility

" means the term loan facility made available under this Agreement as described in Clause

2 (

The Facility

).

"

Facility Office

" means the office or offices through which the Lender will perform its obligations

under this Agreement.

"

FATCA

" means:

(a)

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

(b)

any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental

agreement between the US and any other jurisdiction, which (in either case) facilitates the

implementation of any law or regulation referred to in paragraph (a) above; or

(c)

any agreement pursuant to the implementation of any treaty, law or regulation referred

to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US government

or any governmental or taxation authority in any other jurisdiction.

"

FATCA Deduction

" means a deduction or withholding from a payment under a Finance Document

required by FATCA.

"

FATCA Exempt Party

" means a Party that is entitled to receive payments free from any FATCA

Deduction.

"

Finance Document

" means:

(a)

this Agreement;

(b)

the Utilisation Request;

(c)

any Security Document;

(d)

any Manager's Undertaking;

(e)

any Subordination Agreement;

(f)

any other document which is executed for the purpose of establishing any priority or

subordination arrangement in relation to the Secured Liabilities; or

(g)

any other document designated as such by the Lender and the Borrowers.

"

Financial Indebtedness

" means any indebtedness for or in relation to:

(a)

moneys borrowed;

(b)

any amount raised by acceptance under any acceptance credit facility or dematerialised

equivalent;

(c)

any amount raised pursuant to any note purchase facility or the issue of bonds, notes,

debentures, loan stock or any similar instrument;

(d)

the amount of any liability in relation to any lease or hire purchase contract which would,

in accordance with GAAP, be treated as a balance sheet liability;

(e)

receivables sold or discounted (other than any receivables to the extent they are sold on

a non-recourse basis);

(f)

any amount raised under any other transaction (including any forward sale or purchase

agreement) of a type not referred to in any other paragraph of this definition having the

commercial effect of a borrowing;

(g)

any derivative transaction entered into in connection with protection against or benefit

from fluctuation in any rate or price (and, when calculating the value of any derivative

transaction, only the marked to market value (or, if any actual amount is due as a result

of the termination or close-out of that derivative transaction, that amount) shall be taken

into account);

(h)

any counter-indemnity obligation in relation to a guarantee, indemnity, bond, standby or

documentary letter of credit or any other instrument issued by a bank or financial

institution; and

(i)

the amount of any liability in relation to any guarantee or indemnity for any of the items

referred to in paragraphs (a) to (h) above.

"

Financial Year

" means the 12-month period commencing on 1 January and ending on 31

December. 

"

Fleet Vessels

" means all of the vessels (including, but not limited to, the Ships) from time to time

wholly owned by members of the Group or bareboat chartered by members of the Group on long

term leases the duration of which is equal to or exceeds (or is capable of exceeding by virtue of

any optional extensions) 12 months (each a "

Fleet Vessel

").

"

Funding Rate

" means any individual rate notified by the Lender to an Obligor pursuant to any

Finance Document.

"

GAAP

" means generally accepted accounting principles in the United States of America.

"

General Assignment

" means, in relation to a Ship, the general assignment creating Security over:

(a)

that Ship's Earnings, its Insurances and any Requisition Compensation in relation to that

Ship; and

(b)

any Charter and any Charter Guarantee in relation to that Ship,

in agreed form.

"

Group

" means the Parent Guarantor and its Subsidiaries from time to time (including, for the

avoidance of doubt and without limitation, Diana Shipping).

"

Historic Term SOFR

" means, in relation to the Loan or any part of the Loan, the most recent

applicable Term SOFR for a period equal in length to the Interest Period of the Loan or that part

of the Loan and which is as of a day which is no more than three US Government Securities

Business Days before the Quotation Day.

"

Holding Company

" means, in relation to a person, any other person in relation to which it is a

Subsidiary.

"

Indemnified Person

" has the meaning given to it in Clause 14.2 (

Other indemnities

).

"

Initial Market Value

" means, in relation to a Ship, the Market Value of that Ship calculated in

accordance with the valuation relative thereto referred to in paragraph 6.1 of Part A of Schedule

2 (

Conditions Precedent

). 

"

Insurances

" means, in relation to a Ship:

(a)

all policies and contracts of insurance, including entries of that Ship in any protection and

indemnity or war risks association, effected in relation to that Ship, the Earnings or

otherwise in relation to that Ship whether before, on or after the date of this Agreement;

and

(b)

all rights and other assets relating to, or derived from, any of such policies, contracts or

entries, including any rights to a return of premium and any rights in relation to any claim

whether or not the relevant policy, contract of insurance or entry has expired on or before

the date of this Agreement.

"

Interest Payment Date

" has the meaning given to it in paragraph (a) of Clause 8.1 (

Payment of

interest

).

"

Interest Period

" means, in relation to the Loan or any part of the Loan, each period determined

in accordance with Clause 9 (

Interest Periods

) and, in relation to an Unpaid Sum, each period

determined in accordance with Clause 8.3 (

Default interest

).

"

Interpolated Historic Term SOFR

" means, in relation to the Loan or any part of the Loan, the rate

(rounded to the same number of decimal places as Term SOFR) which results from interpolating

on a linear basis between:

(a)

either: 

(i)

the most recent applicable Term SOFR (as of a day which is not more than three

US Government Securities Business Days before the Quotation Day) for the

longest period (for which Term SOFR is available) which is less than the Interest

Period of the Loan or that part of the Loan; or

(ii)

if no such Term SOFR is available for a period which is less than the Interest Period

of the Loan or that part of the Loan, the most recent SOFR for a day which is no

more than five US Government Securities Business Days (and no less than two US

Government Securities Business Days) before the Quotation Day; and

(b)

the most recent applicable Term SOFR (as of a day which is not more than three US

Government Securities Business Days before the Quotation Day) for the shortest period

(for which Term SOFR is available) which exceeds the Interest Period of the Loan or that

part of the Loan.

"

Interpolated Term SOFR

" means, in relation to the Loan or any part of the Loan, the rate

(rounded to the same number of decimal places as Term SOFR) which results from interpolating

on a linear basis between:

(a)

either: 

(i)

the applicable Term SOFR (at or after 5 am Chicago Time on the Quotation Day)

for the longest period (for which Term SOFR is available) which is less than the

Interest Period of the Loan or that part of the Loan; or

(ii)

if no such Term SOFR is available for a period which is less than the Interest Period

of the Loan or that part of the Loan, the SOFR for the day which is two US

Government Securities Business Days before the Quotation Day; and

(b)

the applicable Term SOFR (at or after 5 am Chicago Time on the Quotation Day) for the

shortest period (for which Term SOFR is available) which exceeds the Interest Period of

the Loan or that part of the Loan.

"

Inventory of Hazardous Materials

" means, in relation to a Ship, an inventory certificate or

statement of compliance (as applicable) supplemented by a list of any and all materials known to

be potentially hazardous utilised in the construction of, or otherwise installed on, that Ship, which

is certified in accordance with the EU Ship Recycling Regulation, 2013 (EU SRR) and/or the Hong

Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009

(HKC) as further described by the International Maritime Organisation and/or the Approved

Classification Society. 

"

ISM Code

" means the International Safety Management Code for the Safe Operation of Ships and

for Pollution Prevention (including the guidelines on its implementation), adopted by the

International Maritime Organisation, as the same may be amended or supplemented from time

to time.

"

ISPS Code

" means the International Ship and Port Facility Security (ISPS) Code as adopted by the

International Maritime Organization's (IMO) Diplomatic Conference of December 2002, as the

same may be amended or supplemented from time to time.

"

ISSC

" means an International Ship Security Certificate issued under the ISPS Code.

"

Lender

" means:

(a)

the Original Lender; and

(b)

any bank, financial institution, trust, fund or other entity which has become the Lender in

accordance with Clause 28 (

Changes to the Lender

),

which in each case has not ceased to be a Party in accordance with this Agreement.

"

Limitation

Acts

" means the Limitation Act 1980 and the Foreign Limitation Periods Act 1984.

"

LMA

" means the Loan Market Association or any successor organisation from time to time.

"

Loan

" means the loan to be made available under the Facility or the aggregate principal amount

outstanding for the time being of the borrowings under the Facility and a "

part of the Loan

" means

an Advance, a Tranche, a part of a Tranche or any other part of the Loan as the context may

require.

"

Loan Agreement C

" means the loan agreement dated 5 March 2019 (as from time to time

amended and/or supplemented) and entered into between (i) Borrower H and Borrower I as joint

and several borrowers and (ii) the banks and financial institutions listed in schedule 1 therein as

lenders and (iii) DNB Bank ASA as arranger, agent, swap provider and security agent secured on

Ship H and Ship I.

"

Major

Casualty

" means, in relation to a Ship, any casualty to that Ship in relation to which the

claim or the aggregate of the claims against all insurers, before adjustment for any relevant

franchise or deductible, exceeds $1,000,000 or the equivalent in any other currency.

"

Management Agreement

" means a Technical Management Agreement or a Commercial

Management Agreement.

"

Manager's

Undertaking

" means, in relation to a Ship, the letter of undertaking from its Approved

Technical Manager and the letter of undertaking from its Approved Commercial Manager

subordinating the rights of such Approved Technical Manager and such Approved Commercial

Manager respectively against that Ship and the relevant Borrower to the rights of the Lender and

assigning the rights and interests of such Approved Technical Manager and such Approved

Commercial Manager respectively in the Insurances to the Lender in agreed form.

"

Margin

" means 2.20 per cent. per annum.

"

Market Disruption Rate

" means the percentage rate per annum which is the aggregate of the

Reference Rate and 1.366 per cent. 

"

Market

Value

" means, in relation to a Ship or any other vessel (including any Fleet Vessel), at any

date, an amount determined in dollars by the Lender as being an amount equal to the market

value of that Ship or vessel shown by the arithmetic mean of two valuations (subject to paragraph

(b)(ii) of Clause 25.7 (

Provision of valuations

)), each addressed to the Lender and prepared:

(a)

as at a date not more than 30 days previously;

(b)

by an Approved Valuer selected by the Borrowers and appointed by the Lender;

(c)

with or without physical inspection of that Ship or vessel (as the Lender may require); and

(d)

on the basis of a sale for prompt delivery for cash on normal arm's length commercial

terms as between a willing seller and a willing buyer, and on an "as is where is" basis

without taking into account the benefit or detriment of any charter commitment/free of

any existing charter or other contract of employment,

Provided that

 if the difference between the two valuations is greater than 10 per cent. a third

valuation shall be carried out on the same basis by an Approved Valuer appointed by the Lender

at the cost of the Borrowers and the Market Value shall be the arithmetic mean of the three

valuations. For the avoidance of doubt, if a valuation is provided as a range between two figures,

the figure to be used shall be the arithmetic mean of those two figures.

"

Material

Adverse

Effect

" means a material adverse effect on:

(a)

the business, operations, property, condition (financial or otherwise) or prospects of any

member of the Group or the Group as a whole; or

(b)

the ability of any Transaction Obligor to perform its obligations under any Finance

Document; or

(c)

the validity or enforceability of, or the effectiveness or ranking of any Security granted or

intended to be granted pursuant to any of, the Finance Documents or the rights or

remedies of the Lender under any of the Finance Documents.

"

Month

" means a period starting on one day in a calendar month and ending on the numerically

corresponding day in the next calendar month, except that:

(a)

(subject to sub-paragraph (c) below) if the numerically corresponding day is not a Business

Day, that period shall end on the next Business Day in that calendar month in which that

period is to end if there is one, or if there is not, on the immediately preceding Business

Day;

(b)

if there is no numerically corresponding day in the calendar month in which that period is

to end, that period shall end on the last Business Day in that calendar month; and

(c)

if an Interest Period begins on the last Business Day of a calendar month, that Interest

Period shall end on the last Business Day in the calendar month in which that Interest

Period is to end.

The above rules will only apply to the last Month of any period.

"

Mortgage

" means, in relation to a Ship, a first priority or, as the case may be, first preferred ship

mortgage on that Ship in agreed form or any replacement first preferred or first priority ship

mortgage on that Ship under the laws of an Approved Flag, and if required by the laws of the

relevant Approved Flag a deed of covenant collateral thereto, each in agreed form.

"

Obligor

" means a Borrower or the Parent Guarantor.

"

Operational Carbon Intensity Rating

" means, in respect of each Ship, the A to E rating

determined based on that Ship's carbon intensity indicator calculation as set out in Annex VI.

"

Original

Financial

Statements

" means, in relation to the Parent Guarantor the audited

consolidated financial statements of the Group for the Financial Year ending on 31 December

2022.

"

Original Jurisdiction

" means, in relation to an Obligor, the jurisdiction under whose laws that

Obligor is incorporated as at the date of this Agreement.

"

Overseas

Regulations

" means the Overseas Companies Regulations 2009 (SI 2009/1801).

"Palios Family

" means, together, each of the following:

(a)

Mr. Simeon Palios; 

(a)

all the lineal descendants in direct line of Mr. Simeon Palios;

(b)

a husband or wife or widower or widow of any of the above persons;

(c)

the estates, trusts or legal representatives of which any of the above persons are the

beneficiaries; and

(d)

each company legally and beneficially owned or (as the case may be) controlled by one or

more of the persons or entities which would fall within paragraphs (a) to (d) of this

definition,

and each one of the above shall be referred to as "

a member of the Palios Family

".

"

Participating Member State

" means any member state of the European Union that has the euro

as its lawful currency in accordance with legislation of the European Union relating to Economic

and Monetary Union.

"

Party

" means a party to this Agreement.

"

Permitted

Charter

" means, in relation to a Ship, a Charter:

(a)

which is a time, voyage or consecutive voyage charter (i) the duration of which does not

exceed and is not capable of exceeding, by virtue of any optional extensions, 12 months

plus a redelivery allowance of not more than 30 days or (ii) which is an intra-Group

consecutive voyage Charter for any tenor provided that the relevant Borrower has

complied with Clause 24.22 (

Charterparty Assignment

); 

(b)

which is entered into on

bona fide

 arm's length terms at the time at which that Ship is

fixed; and

(c)

in relation to which not more than two months' hire is payable in advance,

and any other Charter which is approved in writing by the Lender.

"

Permitted

Financial

Indebtedness

" means:

(a)

any Financial Indebtedness incurred under the Finance Documents;

(b)

in relation to each Borrower, until the Utilisation Date of the Advance under the relevant

Tranche, the relevant Existing Indebtedness; 

(c)

any Financial Indebtedness that is subordinated to all Financial Indebtedness incurred

under the Finance Documents pursuant to a Subordination Agreement or otherwise and

which is, in the case of any such Financial Indebtedness of a Borrower, the subject of

Subordinated Debt Security; and

(d)

incurred or created in respect of the Parent Guarantor in the normal course of its business

of holding the shares of single purpose shipowning Subsidiaries and assisting its

Subsidiaries with acquiring and financing vessels and with their arrangements in respect

of the operation of such vessels or for working capital purposes. 

"

Permitted

Security

" means:

(a)

Security created by the Finance Documents;

(b)

in relation to each Borrower, until the Utilisation Date of the Advance under the relevant

Tranche, the relevant Existing Security;

(c)

liens for unpaid master's and crew's wages in accordance with first class ship ownership

and management practice provided that it is outstanding for no more than 30 days;

(d)

liens for salvage;

(e)

liens for master's disbursements incurred in the ordinary course of trading provided the

underlying payment obligation has not yet fallen due for payment or has been contested

in good faith by the Borrowers; and

(f)

any other lien arising by operation of law or otherwise in the ordinary course of the

operation, repair or maintenance of any Ship:

(i)

which is not yet overdue for payment according to its payment terms; or

(ii)

which is being contested in good faith by the relevant Borrower by appropriate

proceedings and for which adequate reserves or security are maintained or

provided; or

(iii)

subject, in the case of liens for repair or maintenance, to Clause 24.17 (

Restrictions

on chartering, appointment of managers etc.

).

"

Poseidon Principles

" means the financial industry framework for assessing and disclosing the

climate alignment of ship finance portfolios published in June 2019 as the same may be amended

or replaced from time to time.

"

Potential

Event

of

Default

" means any event or circumstance specified in Clause 27 (

Events of

Default

) which would (with the expiry of a grace period, the giving of notice, the making of any

determination under the Finance Documents or any combination of any of the foregoing) be an

Event of Default.

"

Prohibited Person

" means a person that is:

(a)

listed on, or directly or indirectly owned or otherwise controlled by a person listed on, or

acting on behalf of or for the benefit of any one or more persons listed on, any Sanctions

List;

(b)

resident, located or having a place of business in, incorporated or organised under the

laws of, or owned or (directly or indirectly) controlled by, or acting on behalf of, a person

resident, located or having a place of business in, incorporated or organised under the

laws of a country or territory that is, or whose government is, the target of country-wide,

region-wide or territory-wide Sanctions or comprehensive Sanctions (currently Crimea,

Donetsk oblast, Luhansk oblast, Zaporizjzja oblast and Kherson oblast, Cuba, Iran, North

Korea, Syria and Venezuela); or

(c)

otherwise a target of Sanctions (including a person with whom a US person or other

national under the jurisdiction of a Sanctions Authority would be prohibited or restricted

by law from engaging in trade, business or other activities).

"

Quotation Day

" means, in relation to any period for which an interest rate is to be determined,

two US Government Securities Business Days before the first day of that period unless market

practice differs in the relevant syndicated loan market in which case the Quotation Day will be

determined by the Lender in accordance with that market practice (and if quotations would

normally be given on more than one day, the Quotation Day will be the last of those days).

"

Receiver

" means a receiver or receiver and manager or administrative receiver of the whole or

any part of the Security Assets.

"

Reference Rate

" means, in relation to the Loan or any part of the Loan:

(a)

the applicable Term SOFR at or after 5 am Chicago Time on the Quotation Day and for a

period equal in length to the Interest Period of the Loan or that part of the Loan; or

(b)

as otherwise determined pursuant to Clause 10.1 (

Temporary unavailability of Term

SOFR

),

and if, in either case, that rate is less than zero, the Reference Rate shall be deemed to be zero.

"

Related

Fund

" in relation to a fund (the "first fund"), means a fund which is managed or advised

by the same investment manager or investment adviser as the first fund or, if it is managed by a

different investment manager or investment adviser, a fund whose investment manager or

investment adviser is an Affiliate of the investment manager or investment adviser of the first

fund.

"

Relevant

Jurisdiction

" means, in relation to a Transaction Obligor:

(a)

Its Original Jurisdiction;

(b)

any jurisdiction where any asset subject to, or intended to be subject to, any of the

Transaction Security created, or intended to be created, by it is situated;

(c)

any jurisdiction where it conducts its business; and

(d)

the jurisdiction whose laws govern the perfection of any of the Security Documents

entered into by it.

"

Relevant Market

" means the market for overnight cash borrowing collateralised by US

Government Securities.

"

Repayment

Date

" means each date on which a Repayment Instalment is required to be paid

under Clause 6.1 (

Repayment of Loan

).

"

Repayment

Instalment

" has the meaning given to it in Clause 6.1 (

Repayment of Loan

).

"

Repeating

Representation

" means each of the representations set out in Clause 19

(

Representations

) except Clause 19.10 (

Insolvency

), Clause 19.11 (

No filing or stamp taxes

) and

Clause 19.12 (

Deduction of Tax

) and any representation of any Transaction Obligor made in any

other Finance Document that is expressed to be a "Repeating Representation" or is otherwise

expressed to be repeated.

"

Representative

" means any delegate, agent, manager, administrator, nominee, attorney, trustee

or custodian.

"

Requisition

" means, in relation to a Ship:

(a)

any expropriation, confiscation, requisition (excluding a requisition for hire or use which

does not involve a requisition for title) or acquisition of that Ship, whether for full

consideration, a consideration less than its proper value, a nominal consideration or

without any consideration, which is effected (whether

de jure

 or

de facto

) by any

government or official authority or by any person or persons claiming to be or to represent

a government or official authority; and

(b)

any capture or seizure of that Ship (including any hijacking or theft) by any person

whatsoever.

"

Requisition

Compensation

" includes all compensation or other moneys payable to a Borrower

by reason of any Requisition or any arrest or detention of a Ship in the exercise or purported

exercise of any lien or claim.

"

Resolution Authority

" means any body which has authority to exercise any Write-down and

Conversion Powers.

"

Safety

Management

Certificate

" has the meaning given to it in the ISM Code.

"

Safety

Management

System

" has the meaning given to it in the ISM Code.

"

Sanctioned Country

" means a country or territory that is, or whose government is, the target of

country-wide, region-wide or territory-wide Sanctions or comprehensive Sanctions (currently

Crimea, Donetsk oblast, Luhansk oblast, Zaporizjzja oblast and Kherson oblast, Cuba, Iran, North

Korea, Syria and Venezuela).

"

Sanctions

" means the economic or financial sanctions laws, orders and/or regulations, trade

embargoes prohibitions, decisive executive orders or other restrictive measures implemented,

adapted, improved, administered, enacted and/or enforced from time to time by any Sanctions

Authority (whether or not any Transaction Obligor, any Affiliate of any Transaction Obligor or the

Lender is legally bound to comply with such laws, regulations, embargoes or measures).

"

Sanctions Authority

" means any of:

(a)

the United States of America;

(b)

the United Nations; 

(c)

the European Union; 

(d)

any member state of the European Economic Area;

(e)

the United Kingdom; or

(f)

any country which any Transaction Obligor is registered or has material (financial or

otherwise) interests or operations,

and includes any government entity of any of the above, including, without limitation, the Office

of Foreign Assets Control of the US Department of Treasury (OFAC), the United States Department

of State, the United States Department of Commerce or any other agency of the United States

Government, the United Nations Security Council, the European Union or His Majesty's Treasury

of the United Kingdom and HM Treasury Office of Financial Sanctions Implementation of the

United Kingdom. 

"

Sanctions List

" means any of the lists of designated sanctions targets maintained by a Sanctions

Authority from time to time, including (without limitation) as at the date of this Agreement:

(a)

the "Specially Designated Nationals and Blocked Persons" list and the Consolidated

Sanctions List maintained by OFAC;

(b)

the Consolidated List of persons, groups and entities subject to the European Union

financial sanctions; and

(c)

in the case of His Majesty's Treasury of the United Kingdom, the Consolidated List of

Financial Sanctions Targets and the List of Persons Subject to Restrictive Measures in View

of Russia's Actions Destabilising the Situation in Ukraine.

"

Secured

Liabilities

" means all present and future obligations and liabilities, (whether actual or

contingent and whether owed jointly or severally or in any other capacity whatsoever) of each

Transaction Obligor to the Lender under or in connection with each Finance Document.

"

Security

" means a mortgage, pledge, lien, charge, assignment, hypothecation or security interest

or any other agreement or arrangement having the effect of conferring security.

"

Security Assets

" means all of the assets of the Transaction Obligors which from time to time are,

or are expressed to be, the subject of the Transaction Security.

"

Security Cover Ratio

" means:

(a)

the aggregate Market Value (or, if less in relation to an individual Ship, the maximum

amount capable of being secured by the Mortgage of such Ship) of all of the Ships which

are then subject to a Mortgage and have not then become a Total Loss; plus

(b)

the net realisable value of additional Security previously provided under Clause 25

(

Security Cover

),

expressed as a percentage of the Loan.

"

Security Document

" means:

(a)

any Shares Security;

(b)

any Mortgage;

(c)

any General Assignment;

(d)

any Charterparty Assignment;

(e)

any Account Security;

(f)

any Subordinated Debt Security;

(g)

any other document (whether or not it creates Security) which is executed as security for

the Secured Liabilities; or

(h)

any other document designated as such by the Lender and the Borrowers.

"

Security

Period

" means the period starting on the date of this Agreement and ending on the date

on which the Lender is satisfied that there is no outstanding Commitment in force and that the

Secured Liabilities have been irrevocably and unconditionally paid and discharged in full.

"

Security

Property

" means:

(a)

the Transaction Security expressed to be granted in favour of the Lender and all proceeds

of that Transaction Security;

(b)

all obligations expressed to be undertaken by a Transaction Obligor to pay amounts in

relation to the Secured Liabilities to the Lender and secured by the Transaction Security

together with all representations and warranties expressed to be given by a Transaction

Obligor or any other person in favour of the Lender; and

(c)

the Lender's interest in any turnover trust created under the Finance Documents.

"

Shares

Security

" means, in relation to a Borrower, a document creating Security over the share

capital in that Borrower in agreed form.

"

Ship

" means Ship A, Ship B, Ship C, Ship D, Ship E, Ship F, Ship G, Ship H or Ship I.

"

Ship

A

" means m.v. ALCMENE, details of which are set out opposite its name in Schedule 5

(

Details of the Ships

).

"

Ship

B

" means m.v. SEATTLE, details of which are set out opposite its name in Schedule 5 (

Details

of the Ships

).

"

Ship

C

" means m.v. PHAIDRA, details of which are set out opposite its name in Schedule 5 (

Details

of the Ships

).

"

Ship

D

" means m.v. ELECTRA, details of which are set out opposite its name in Schedule 5 (

Details

of the Ships

).

"

Ship

E

" means m.v. ASTARTE , details of which are set out opposite its name in Schedule 5 (

Details

of the Ships

).

"

Ship

F

" means m.v. P. S. PALIOS , details of which are set out opposite its name in Schedule 5

(

Details of the Ships

).

"

Ship

G

" means m.v. G. P. ZAFIRAKIS, details of which are set out opposite its name in Schedule 5

(

Details of the Ships

).

"

Ship

H

" means m.v. CRYSTALIA , details of which are set out opposite its name in Schedule 5

(

Details of the Ships

).

"

Ship

I

" means m.v. ATALANDI , details of which are set out opposite its name in Schedule 5 (

Details

of the Ships

).

"

SOFR

" means the secured overnight financing rate administered by the Federal Reserve Bank of

New York (or any other person which takes over the administration of that rate) published by the

Federal Reserve Bank of New York (or any other person which takes over the publication of that

rate).

"

Specified

Time

" means a day or time determined in accordance with Schedule 6 (

Timetables

).

"

Statement of Compliance

" means a Statement of Compliance related to fuel oil consumption

pursuant to regulations 6.6 and 6.7 of Annex VI.

"

Subordinated

Creditor

" means:

(a)

a member of the Group; or

(b)

any other person who becomes a Subordinated Creditor in accordance with this

Agreement.

"

Subordinated Debt Security

" means a Security over Subordinated Liabilities entered into or to

be entered into by a Subordinated Creditor in favour of the Lender in an agreed form.

"

Subordinated Finance Document

" means:

(a)

a Subordinated Loan Agreement; and

(b)

any other document relating to or evidencing Subordinated Liabilities.

"

Subordinated Liabilities

" means all indebtedness owed or expressed to be owed by the

Borrowers to a Subordinated Creditor whether under the Subordinated Finance Documents or

otherwise.

"

Subordinated Loan Agreement

" means a loan agreement made between (a) a Borrower and (b)

a Subordinated Creditor.

"

Subordination Agreement

" means a subordination agreement entered into or to be entered into

by each Subordinated Creditor and the Lender in agreed form.

"

Subsidiary

" means a subsidiary within the meaning of section 1159 of the Companies Act 2006.

"

Tax

" means any tax, levy, impost, duty or other charge or withholding of a similar nature

(including any penalty or interest payable in connection with any failure to pay or any delay in

paying any of the same).

"

Tax

Credit

" has the meaning given to it in Clause 12.1 (

Definitions

).

"

Tax

Deduction

" has the meaning given to it in Clause 12.1 (

Definitions

).

"

Tax

Payment

" has the meaning given to it in Clause 12.1 (

Definitions

).

"

Technical Management Agreement

" means the agreement entered into between a Borrower

and the Approved Technical Manager regarding the technical management of a Ship.

"

Term SOFR

" means the term SOFR reference rate administered by CME Group Benchmark

Administration Limited (or any other person which takes over the administration of that rate) for

the relevant period published (before any correction, recalculation or republication by the

administrator) by CME Group Benchmark Administration Limited (or any other person which takes

over the publication of that rate).

"

Termination

Date

" means, in relation to each Tranche, the earlier of (i) the fifth anniversary of

the first Utilisation Date and (ii) 1 May 2028. 

"

Third

Parties

Act

" has the meaning given to it in Clause 1.5 (

Third party rights

).

"

Total

Loss

" means, in relation to a Ship:

(a)

actual, constructive, compromised, agreed or arranged total loss of that Ship; or

(b)

any Requisition of that Ship unless that Ship is returned to the full control of the relevant

Borrower within 30 days of such Requisition.

"

Total Loss Date

" means, in relation to the Total Loss of a Ship:

(a)

in the case of an actual loss of that Ship, the date on which it occurred or, if that is

unknown, the date when that Ship was last heard of;

(b)

in the case of a constructive, compromised, agreed or arranged total loss of that Ship, the

earlier of:

(i)

the date on which a notice of abandonment is given (or deemed or agreed to be

given) to the insurers; and

(ii)

the date of any compromise, arrangement or agreement made by or on behalf of

the relevant Borrower with that Ship's insurers in which the insurers agree to treat

that Ship as a total loss; and

(c)

in the case of any other type of Total Loss, the date (or the most likely date) on which it

appears to the Lender that the event constituting the total loss occurred.

"

Tranche

" means Tranche A, Tranche B, Tranche C, Tranche D, Tranche E, Tranche F, Tranche G,

Tranche H or Tranche I.

"

Tranche

A

" means that part of the Loan made or to be made available to Borrower A to (inter

alia) refinance the Existing Indebtedness secured on Ship A in a principal amount not exceeding

$8,513,342 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

B

" means that part of the Loan made or to be made available to Borrower B to (inter

alia) refinance the Existing Indebtedness secured on Ship B in a principal amount not exceeding

$12,706,480 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

C

" means that part of the Loan made or to be made available to Borrower C to (inter

alia) refinance the Existing Indebtedness secured on Ship C in a principal amount not exceeding

$9,656,925 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

D

" means that part of the Loan made or to be made available to Borrower D to (inter

alia) refinance the Existing Indebtedness secured on Ship D in a principal amount not exceeding

$9,656,925 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

E

" means that part of the Loan made or to be made available to Borrower E to (inter alia)

refinance the Existing Indebtedness secured on Ship E in a principal amount not exceeding

$11,944,091 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

F

" means that part of the Loan made or to be made available to Borrower F to (inter alia)

refinance the Existing Indebtedness secured on Ship F in a principal amount not exceeding

$14,231,258 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

G

" means that part of the Loan made or to be made available to Borrower G to (inter

alia) refinance the Existing Indebtedness secured on Ship G in a principal amount not exceeding

$12,452,351 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

H

" means that part of the Loan made or to be made available to Borrower H to (inter

alia) refinance the Existing Indebtedness secured on Ship H in a principal amount not exceeding

$10,419,314 or as the context may require, the amount outstanding thereunder from time to time.

"

Tranche

I

" means that part of the Loan made or to be made available to Borrower I to (inter alia)

refinance the Existing Indebtedness secured on Ship I in a principal amount not exceeding

$10,419,314 or as the context may require, the amount outstanding thereunder from time to time.

"

Transaction Document

" means:

(a)

a Finance Document;

(b)

a Subordinated Finance Document;

(c)

any Charter; or

(d)

any other document designated as such by the Lender and a Borrower.

"

Transaction Obligor

" means an Obligor, any Approved Manager and any other person (other than

the Lender) who executes a Finance Document.

"

Transaction Security

" means the Security created or evidenced or expressed to be created or

evidenced under the Security Documents.

"

UK Bail-In Legislation

" means Part 1 of the United Kingdom Banking Act 2009 and any other law

or regulation applicable in the United Kingdom relating to the resolution of unsound or failing

banks, investment firms or other financial institutes or their affiliates (otherwise than through

liquidation, administration or other insolvency proceedings).

"

UK

Establishment

" means a UK establishment as defined in the Overseas Regulations.

"

Unpaid

Sum

" means any sum due and payable but unpaid by a Transaction Obligor under the

Finance Documents.

"

US

" means the United States of America.

"

US Government Securities Business Day

" means any day other than:

(a)

a Saturday or a Sunday; and

(b)

a day on which the Securities Industry and Financial Markets Association (or any successor

organisation) recommends that the fixed income departments of its members be closed

for the entire day for purposes of trading in US Government securities.

"

US Tax Obligor

" means:

(a)

a person which is resident for tax purposes in the US; or

(b)

a person some or all of whose payments under the Finance Documents are from sources

within the US for US federal income tax purposes.

"

Utilisation

" means a utilisation of the Facility.

"

Utilisation

Date

" means the date of a Utilisation, being the date on which the relevant Advance

is to be made.

"

Utilisation

Request

" means a notice substantially in the form set out in Schedule 3 (Utilisation

Request

).

"

VAT

" means:

(a)

any value added tax imposed by the Value Added Tax Act 1994;

(b)

any tax imposed in compliance with the Council Directive of 28 November 2006 on the

common system of value added tax (EC Directive 2006/112); and

(c)

any other tax of a similar nature, whether imposed in the United Kingdom or a member

state of the European Union in substitution for, or levied in addition to, such tax referred

to in paragraph (a) or (b) above, or imposed elsewhere.

"

Write-down and Conversion Powers

" means:

(a)

in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from

time to time, the powers described as such in relation to that Bail-In Legislation in the EU

Bail-In Legislation Schedule;

(b)

in relation to any other applicable Bail-In Legislation other than the UK Bail-In Legislation:

(i)

any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued

by a person that is a bank or investment firm or other financial institution or

affiliate of a bank, investment firm or other financial institution, to cancel, reduce,

modify or change the form of a liability of such a person or any contract or

instrument under which that liability arises, to convert all or part of that liability

into shares, securities or obligations of that person or any other person, to provide

that any such contract or instrument is to have effect as if a right had been

exercised under it or to suspend any obligation in respect of that liability or any of

the powers under that Bail-In Legislation that are related to or ancillary to any of

those powers; and

(ii)

any similar or analogous powers under that Bail-In Legislation; and 

(c)

in relation to the UK Bail-In Legislation, any powers under that UK Bail-In Legislation to

cancel, transfer or dilute shares issued by a person that is a bank or investment firm or

other financial institution or affiliate of a bank, investment firm or other financial

institution, to cancel, reduce, modify or change the form of a liability of such a person or

any contract or instrument under which that liability arises, to convert all or part of that

liability into shares, securities or obligations of that person or any other person, to provide

that any such contract or instrument is to have effect as if a right had been exercised under

it or to suspend any obligation in respect of that liability or any of the powers under that

UK Bail-In Legislation that are related to or ancillary to any of those powers.

1.2

Construction

(a)

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

(i)

the "

Account

Bank

", the "

Lender

", any "

Obligor

", any "

Party

", any "

Transaction

Obligor

"

or any other person shall be construed so as to include its successors in title and permitted

assigns;

(ii)

"

applicable Sanctions

" includes (but is not limited to): 

(A)

any Sanctions applicable to any of the Transaction Obligors or any other member

of the Group or any of their Affiliates, directors, officers or employees; and

(B)

any Sanctions which would otherwise apply either directly or indirectly to the

performance of any of the Parties ' (including the Lender's) rights and obligations

under this Agreement;

(iii)

"

assets

" includes present and future properties, revenues and rights of every description;

(iv)

a liability which is "

contingent

" means a liability which is not certain to arise and/or the

amount of which remains unascertained;

(v)

"

document

" includes a deed and also a letter, fax, email or telex;

(vi)

"

expense

" means any kind of cost, charge or expense (including all legal costs, charges and

expenses) and any applicable Tax including VAT;

(vii)

the Lender's "

cost of funds

" in relation to the Loan or any part of the Loan is a reference

to the average cost (determined either on an actual or a notional basis) which the Lender

would incur if it were to fund, from whatever source(s) it may reasonably select, an

amount equal to the amount of the Loan or that part of the Loan for a period equal in

length to the Interest Period of the Loan or that part of the Loan;

(viii)

a "

Finance Document

", a "

Security Document

" or "

Transaction Document

" or any other

agreement or instrument is a reference to that Finance Document, Security Document or

Transaction Document or other agreement or instrument as amended, replaced, novated,

supplemented, extended or restated;

(ix)

"

indebtedness

" includes any obligation (whether incurred as principal or as surety) for the

payment or repayment of money, whether present or future, actual or contingent;

(x)

"

law

" includes any order or decree, any form of delegated legislation, any treaty or

international convention and any regulation or resolution of the Council of the European

Union, the European Commission, the United Nations or its Security Council;

(xi)

"

proceedings

" means, in relation to any enforcement provision of a Finance Document,

proceedings of any kind, including an application for a provisional or protective measure;

(xii)

a "

person

" includes any individual, firm, company, corporation, government, state or

agency of a state or any association, trust, joint venture, consortium, partnership or other

entity (whether or not having separate legal personality);

(xiii)

a "

regulation

" includes any regulation, rule, official directive, request or guideline

(whether or not having the force of law) of any governmental, intergovernmental or

supranational body, agency, department or regulatory, self-regulatory or other authority

or organisation;

(xiv)

a reference to a "

Ship

", its name, its flag and, if applicable, its port of registry shall include

any replacement name, flag and, if applicable, replacement port of registry, in each case,

as may be approved in writing from time to time by the Lender;

(xv)

a provision of law is a reference to that provision as amended or re-enacted from time to

time;

(xvi)

a time of day is a reference to Copenhagen time;

(xvii)

any English legal term for any action, remedy, method of judicial proceeding, legal

document, legal status, court, official or any legal concept or thing shall, in respect of a

jurisdiction other than England, be deemed to include that which most nearly

approximates in that jurisdiction to the English legal term;

(xviii)

words denoting the singular number shall include the plural and vice versa; and

(xix)

"

including

" and "

in

particular

" (and other similar expressions) shall be construed as not

limiting any general words or expressions in connection with which they are used.

(b)

The determination of the extent to which a rate is "

for a period equal in length

" to an Interest

Period shall disregard any inconsistency arising from the last day of that Interest Period being

determined pursuant to the terms of this Agreement.

(c)

Section, Clause and Schedule headings are for ease of reference only and are not to be used for

the purposes of construction or interpretation of the Finance Documents.

(d)

Unless a contrary indication appears, a term used in any other Finance Document or in any notice

given under, or in connection with, any Finance Document has the same meaning in that Finance

Document or notice as in this Agreement.

(e)

A reference in this Agreement to a page or screen of an information service displaying a rate shall

include:

(i)

any replacement page of that information service which displays that rate; and

(ii)

the appropriate page of such other information service which displays that rate from time

to time in place of that information service,

and, if such page or service ceases to be available, shall include any other page or service displaying

that rate specified by the Lender after consultation with the Borrowers.

(f)

A Potential Event of Default is "

continuing

" if it has not been remedied or waived and an Event of

Default is "

continuing

" if it has not been waived.

1.3

Construction of insurance terms

In this Agreement:

"

approved

" means, for the purposes of Clause 23 (

Insurance Undertakings

), approved in writing

by the Lender.

"

excess

risks

" means, in respect of a Ship, the proportion of claims for general average, salvage

and salvage charges not recoverable under the hull and machinery policies in respect of that Ship

in consequence of its insured value being less than the value at which that Ship is assessed for the

purpose of such claims.

"

obligatory

insurances

" means all insurances effected, or which any Borrower is obliged to effect,

under Clause 22.23 (

Insurance Undertakings

) or any other provision of this Agreement or of

another Finance Document.

"

policy

" includes a slip, cover note, certificate of entry or other document evidencing the contract

of insurance or its terms.

"

protection

and

indemnity

risks

" means the usual risks covered by a protection and indemnity

association which is a member of the International Group of Protection and Indemnity

Associations, including pollution risks and the proportion (if any) of any sums payable to any other

person or persons in case of collision which are not recoverable under the hull and machinery

policies by reason of the incorporation in them of clause 6 of the International Hull Clauses

(1/11/02) (1/11/03), clause 8 of the Institute Time Clauses (Hulls) (1/10/83) (1/11/95) or the

Institute Amended Running Down Clause (1/10/71) or any equivalent provision.

"

war

risks

" includes the risk of mines and all risks excluded by clauses 29, 30 or 31 of the

International Hull Clauses (1/11/02), clauses 29 or 30 of the International Hull Clauses (1/11/03),

clauses 24, 25 or 26 of the Institute Time Clauses (Hulls) (1/11/95) or clauses 23, 24 or 25 of the

Institute Time Clauses (Hulls) (1/10/83) or any equivalent provision.

1.4

Agreed forms of Finance Documents

References in Clause 1.1 (

Definitions

) to any Finance Document being in "

agreed form

" are to that

Finance Document:

(a)

in a form attached to a certificate dated the same date as this Agreement (and signed by each

Borrower and the Lender); or

(b)

in any other form agreed in writing between each Borrower and the Lender.

1.5

Third party rights

(a)

Unless expressly provided to the contrary in a Finance Document, a person who is not a Party has

no right under the Contracts (Rights of Third Parties) Act 1999 (the "

Third Parties Act

") to enforce

or to enjoy the benefit of any term of this Agreement.

(b)

Notwithstanding any term of any Finance Document, the consent of any person who is not a Party

is not required to rescind or vary this Agreement at any time.

(c)

Any Affiliate, Receiver or Delegate or any other person described in paragraph (f) of Clause 14.2

(

Other indemnities

), may, subject to this Clause 1.5 (

Third party rights

) and the Third Parties Act,

rely on any Clause of this Agreement which expressly confers rights on it.

SECTION 2

THE FACILITY

2

THE FACILITY

2.1

The Facility

Subject to the terms of this Agreement, the Lender makes available to the Borrowers a dollar term

loan facility in nine Tranches in an aggregate amount not exceeding the Commitment.

2.2

Borrowers' Agent

(a)

Each Borrower by its execution of this Agreement irrevocably appoints the Parent Guarantor to

act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:

(i)

the Parent Guarantor on its behalf to supply all information concerning itself

contemplated by this Agreement to the Lender and to give all notices and instructions

(including the Utilisation Request), to make such agreements and to effect the relevant

amendments, supplements and variations capable of being given, made or effected by any

Borrower notwithstanding that they may affect the Borrower, without further reference

to or the consent of that Borrower; and

(ii)

the Lender to give any notice, demand or other communication to that Borrower pursuant

to the Finance Documents to the Parent Guarantor,

and in each case each Borrower shall be bound as though each Borrower itself had given the

notices and instructions (including, without limitation, the Utilisation Request) or executed or

made the agreements or effected the amendments, supplements or variations, or received the

relevant notice, demand or other communication.

(b)

Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement,

variation, notice or other communication given or made by the Parent Guarantor or given to the

Parent Guarantor under any Finance Document on behalf of a Borrower or in connection with any

Finance Document (whether or not known to any Borrower) shall be binding for all purposes on

that Borrower as if that Borrower had expressly made, given or concurred with it. In the event of

any conflict between any notices or other communications of the Parent Guarantor and any

Borrower, those of the Parent Guarantor shall prevail.

3

PURPOSE

3.1

Purpose

Each Borrower shall apply all amounts borrowed by it under the Facility only for the purposes of:

(a)

refinancing the Existing Indebtedness secured on Ship A, Ship B, Ship C, Ship D and Ship E

respectively under Existing Loan Agreement A; or

(b)

refinancing the Existing Indebtedness secured on Ship F and Ship G respectively under Existing

Loan Agreement B; or

(c)

refinancing the Borrowers' equity which has been applied against prepayment of the indebtedness

under Loan Agreement C; or 

(d)

providing the Borrowers with working capital for their general corporate purposes.

3.2

Monitoring

The Lender is not bound to monitor or verify the application of any amount borrowed pursuant to

this Agreement.

4

CONDITIONS OF UTILISATION

4.1

Initial conditions precedent

The Borrowers may not deliver the Utilisation Request unless the Lender has received all of the

documents and other evidence listed in Part A of Schedule 2 (

Conditions Precedent

) in form and

substance satisfactory to the Lender.

4.2

Further conditions precedent

The Lender will only be obliged to comply with Clause 5.4 (

Advances

) if:

(a)

on the date of the Utilisation Request and on the proposed Utilisation Date and before the

Advance is made available:

(i)

no Default is continuing or would result from the proposed Advance;

(ii)

the Repeating Representations to be made by each Obligor are true;

(iii)

no Change of Control has occurred; 

(iv)

in the case of an Advance under any Tranche, the Ship in respect of which such Advance is

to be made has neither been sold nor become a Total Loss; 

(v)

nothing has occurred which the Lender shall determine has had or could reasonably be

expected to have a Material Adverse Effect; 

(vi)

no other prepayment or cancellation event under Clause 7 (

Prepayment and Cancellation

)

has occurred; and

(vii)

if the minimum Security Cover Ratio required under Clause 25.1 (

Minimum required

security cover

) were applied immediately following the making of the Loan, the Borrowers

would not be obliged to provide additional security or prepay part of the Loan under that

Clause; and

(b)

in the case of the Advance under each Tranche, the Lender has received on or before the relevant

Utilisation Date, or is satisfied it will receive when the Advance is made available, all of the

documents and other evidence listed in

Part B of Schedule 2 (

Conditions Precedent

) in form and

substance satisfactory to the Lender.

4.3

Notification of satisfaction of conditions precedent

The Lender shall notify the Borrowers promptly upon being satisfied as to the satisfaction of the

conditions precedent referred to in Clause 4.1 (

Initial conditions precedent

) and Clause 4.2 (

Further

conditions precedent

).

4.4

Waiver of conditions precedent

If the Lender, at its discretion, permits an Advance to be borrowed before any of the conditions

precedent referred to in Clause 4.1 (

Initial conditions precedent

) or Clause 4.2 (

Further conditions

precedent

) has been satisfied, the Borrowers shall ensure that that condition is satisfied within five

Business Days after the relevant Utilisation Date or such later date as the Lender may agree in

writing with the Borrowers.

4.5

Conditions subsequent

Each of Borrower D and Borrower G shall ensure that the Lender receives, no later than 1 October

2023, evidence that the Ship owned by it has changed China Classification Society to another

Approved Classification Society.

SECTION 3

UTILISATION

5

UTILISATION

5.1

Delivery of Utilisation Request

The Borrowers may utilise the Facility by delivery to the Lender of a duly completed Utilisation

Request not later than the Specified Time.

5.2

Completion of Utilisation Request

(a)

The Utilisation Request is irrevocable and will not be regarded as having been duly completed

unless:

(i)

the proposed Utilisation Date is a Business Day within the relevant Availability Period;

(ii)

the currency and amount of the Utilisation comply with Clause 5.3 (

Currency and amount

);

(iii)

all applicable deductible items have been completed; and

(iv)

the proposed Interest Period complies with Clause 9 (

Interest Periods

).

(b)

Only one Advance may be requested under each Tranche.

(c)

The Utilisation Date in respect of Tranche H and Tranche I shall coincide with the day that any

funds under Tranche A, Tranche B, Tranche C, Tranche D, Tranche E, Tranche F and Tranche G

which have been prepositioned pursuant to Clause 5.8 (

Prepositioning of funds

) are released. 

5.3

Currency and amount

(a)

The currency specified in the Utilisation Request must be dollars.

(b)

The amount of each Tranche shall be not more than in respect of:

(i)

Tranche A, $8,513,342; 

(ii)

Tranche B, $12,706,480; 

(iii)

Tranche C, $9,656,925; 

(iv)

Tranche D, $9,656,925; 

(v)

Tranche E, $11,944,091; 

(vi)

Tranche F, $14,231,258; 

(vii)

Tranche G, $12,452,351; 

(viii)

Tranche H, $10,419,314; and

(ix)

Tranche I, $10,419,314.

(c)

The aggregate amount of all Tranches shall not exceed 60 per cent. of the aggregate Initial Market

Values of the Ships. 

5.4

Advances

If the conditions set out in this Agreement have been met, the Lender shall make each Advance

available by the relevant Utilisation Date through its Facility Office.

5.5

Cancellation of Commitment

The Commitment in respect of any Tranche which is unutilised at the end of the Availability Period

for such Tranche shall then be cancelled.

5.6

Retentions and payment to third parties

The Borrowers irrevocably authorise the Lender:

(a)

to deduct from the proceeds of any Advance any fees then payable to the Lender in accordance

with Clause 11 (

Fees

), any solicitors fees and disbursements together with any applicable VAT and

any other items listed as deductible items in the Utilisation Request and to apply them in payment

of the items to which they relate; and

(b)

on each Utilisation Date, to pay to, or for the account of, the relevant Borrower which is to utilise

the relevant Advance, the balance (after any deduction made in accordance with paragraph (a)

above) of the amount such Advance. That payment shall be made:

(i)

in the case of Tranche A, Tranche B, Tranche C, Tranche D, Tranche E, Tranche F and

Tranche G to the account of the Existing Agent under the Existing Loan Agreement A and

the Existing Loan Agreement B, which the Borrowers specify in the Utilisation Request;

and

(ii)

in the case of Tranche H and Tranche I, to the account which the Borrowers specify in the

Utilisation Request.

5.7

Disbursement of Advance to third party

Payment by the Lender under Clause 5.6 (

Retentions and payment to third parties

) to a person

other than a Borrower shall constitute the making of the relevant Advance and the Borrowers shall

at that time become indebted, as principal and direct obligor, to the Lender in an amount equal to

that Advance.

5.8

Prepositioning of funds

(a)

Notwithstanding the foregoing provisions of this Clause 5 (

Utilisation

), in the event that any

proposed Advance under Tranche A, Tranche B, Tranche C, Tranche D, Tranche E, Tranche F or

Tranche G, is required to be utilised prior to the satisfaction of the requirements of paragraphs 2,

3.1

 and 3.2(b) of Part B of Schedule 2 (

Conditions precedent

) and remitted to the Existing Agent or

any other bank (the "

Relevant Bank

"), the Lender may in its absolute discretion agree to remit

such amount to the Relevant Bank prior to satisfaction of the requirements of paragraphs 2, 3.1

and 3.2(b) of Part B of Schedule 2 (

Conditions precedent

)

Provided that

:

(i)

the amount remitted shall be held in an account with the Relevant Bank in the name and

to the order of the Lender;

(ii)

such amount will only be released to the Existing Agent upon receipt by the Relevant Bank

of a release letter in such form as may be agreed between the Lender and the Existing

Agent, duly signed on behalf of the Lender by a person named in the Lender's remittance

instructions;

(iii)

such amount so released may be used only for payment in satisfaction of the Existing

Indebtedness (or any part thereof);

(iv)

in the event that the said amount so remitted (or any part thereof) is not released in

accordance with the Lender's instructions, the money held by the Relevant Bank shall be

returned to the account specified in the Lender's remittance instructions within 5 Business

Days after receipt by the Relevant Bank (or such other period as the Lender may specify in

its remittance instructions) and shall be applied towards prepayment of the Loan and

payment of any other amounts due under the Finance Documents; and

(v)

the requirements of paragraphs 2, 3.1 and 3.2(b) of Part B of Schedule 2 (

Conditions

precedent

) shall be satisfied simultaneously with any release to the Existing Agent

pursuant to paragraph (ii) above.

(b)

The prepositioning of an Advance pursuant to paragraph (a) above shall constitute the making of

that Advance and the Obligors shall at that time become indebted, as principal and direct obligors

on a joint and several basis, to the Lender in an amount equal to that Lender's participation in that

Advance.

(c)

The value date on which an Advance is remitted pursuant to paragraph (a) above shall constitute

the Utilisation Date in respect of that Advance.

(d)

The Obligors shall, without duplication, indemnify the Lender against any costs, loss or liability it

may incur in connection with the arrangements described in paragraph (a) above.

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

6

REPAYMENT

6.1

Repayment of Loan

(a)

The Borrowers shall repay the Loan as follows:

(i)

Tranche A shall be repaid by 20 consecutive quarterly instalments, the first such instalment

in an amount of $425,669 followed by nineteen instalments each in an amount of

$425,667 (together, the "

Tranche A Repayment Instalments

" and each a "

Tranche A

Repayment Instalment

");

(ii)

Tranche B shall be repaid by 20 consecutive quarterly instalments, each in an amount of

$529,437 together, (the "

Tranche B Repayment Instalments

" and each a "

Tranche B

Repayment Instalment

") plus a balloon instalment in an amount of $2,117,740 (the

"

Tranche B Balloon Instalment

");

(iii)

Tranche C shall be repaid by 20 consecutive quarterly instalments each in an amount of

$301,779 (together, the "

Tranche C Repayment Instalments

" and each a "

Tranche C

Repayment Instalment

") plus a balloon instalment in an amount of $3,621,345 (the

"

Tranche C Balloon Instalment

");

(iv)

Tranche D shall be repaid by 20 consecutive quarterly instalments each in an amount of

$301,779 (together, the "

Tranche D Repayment Instalments

" and each a "

Tranche D

Repayment Instalment

") plus a balloon instalment in an amount of $3,621,345 (the

"

Tranche D Balloon Instalment

");

(v)

Tranche E shall be repaid by 20 consecutive quarterly instalments each in an amount of

$373,253 (together, the "

Tranche E Repayment Instalments

" and each a "

Tranche E

Repayment Instalment

") plus a balloon instalment in an amount of $4,479,031 (the

"

Tranche E Balloon Instalment

");

(vi)

Tranche F shall be repaid by 20 consecutive quarterly instalments each in an amount of

$444,727 (together, the "

Tranche F Repayment Instalments

" and each a "

Tranche F

Repayment Instalment

") plus a balloon instalment in an amount of $5,336,718 (the

"

Tranche F Balloon Instalment

"); 

(vii)

Tranche G shall be repaid by 20 consecutive quarterly instalments each in an amount of

$345,899 (together, the "

Tranche G Repayment Instalments

" and each a "

Tranche G

Repayment Instalment

") plus a balloon instalment in an amount of $5,534,371 (the

"

Tranche G Balloon Instalment

"); 

(viii)

Tranche H shall be repaid by 20 consecutive quarterly instalments each in an amount of

$289,425 (together, the "

Tranche H Repayment Instalments

" and each a "

Tranche H

Repayment Instalment

") plus a balloon instalment in an amount of $4,630,814 (the

"

Tranche H Balloon Instalment

"); and 

(ix)

Tranche I shall be repaid by 20 consecutive quarterly instalments each in an amount of

$289,425 (together, the "

Tranche I Repayment Instalments

" and each a "

Tranche I

Repayment Instalment

" and together with the Tranche A Repayment Instalments, the

Tranche B Repayment Instalments, the Tranche C Repayment Instalments, the Tranche D

Repayment Instalments, the Tranche E Repayment Instalments, the Tranche F Repayment

Instalments, the Tranche G Repayment Instalments and the Tranche H Repayment

Instalments, the "

Repayment Instalments

" and each a "

Repayment Instalment

") plus a

balloon instalment in an amount of $4,630,814 (the "

Tranche I Balloon Instalment

" and

together with the Tranche B Balloon Instalment, the Tranche C Balloon Instalment, the

Tranche D Balloon Instalment, the Tranche E Balloon Instalment, the Tranche F Balloon

Instalment, the Tranche G Balloon Instalment and the Tranche H Balloon Instalment, the

"

Balloon Instalments

" and each a "

Balloon Instalment

").

(b)

The first Repayment Instalment under each Tranche shall be repaid on the date falling three

months after the first Utilisation Date, each subsequent Repayment Instalment under such

Tranche shall be repaid at three monthly intervals thereafter and the last Repayment Instalment

under such Tranche , together with the relevant Balloon Instalment (if applicable), shall be repaid

on the Termination Date.

6.2

Reduction of Repayment Instalments

If any part of a Tranche is cancelled, the Repayment Instalments in respect of that Tranche falling

after that cancellation shall be reduced

pro rata

 by the amount cancelled.

6.3

Termination Date

On the Termination Date, the Borrowers shall additionally pay to the Lender all other sums then

accrued and owing under the Finance Documents.

6.4

Reborrowing

No Borrower may reborrow any part of the Facility which is repaid.

7

PREPAYMENT AND CANCELLATION

7.1

Illegality 

If it becomes unlawful or contrary to Sanctions in any applicable jurisdiction for the Lender to

perform any of its obligations as contemplated by this Agreement or to fund or maintain all or any

part of the Loan or to determine or charge interest rates based upon Term SOFR or it becomes

unlawful for any Affiliate of the Lender for the Lender to do so:

(a)

the Lender shall promptly notify the Borrowers upon becoming aware of that event and the

Available Facility will be immediately cancelled; and

(b)

the Borrowers shall prepay the Loan on the last day of the Interest Period for the Loan occurring

after the Lender has notified the Borrowers or, if earlier, the date specified by the Lender in the

notice delivered to the Borrowers (being no earlier than the last day of any applicable grace period

permitted by law) and the Commitment shall be cancelled; and

(c)

accrued interest and all other amounts accrued for the Lender under the Finance Documents shall

be immediately due and payable.

7.2

Change of control

If a Change of Control occurs:

(a)

the Borrowers and/or the Parent Guarantor shall promptly notify the Lender upon becoming

aware of that event; and

(b)

the Lender may, by not less than 5 days' notice to the Borrowers, cancel the Facility and declare

the Loan, together with accrued interest, and all other amounts accrued under the Finance

Documents due and payable within 30 days of the occurrence of the Change of Control,

whereupon the Facility will be cancelled and Borrowers shall prepay to the Lender the Loan and

all outstanding interest and other amounts due and payable under the Finance Documents within

30 days of the occurrence of the Change of Control.

7.3

Voluntary and automatic cancellation

(a)

The Borrowers may, if they give the Lender not less than 10 Business Days' (or such shorter period

as the Lender may agree) prior notice, cancel the whole or any part (being a minimum amount of

$1,000,000) of the Available Facility. Any cancellation under this Clause 7.3 (

Voluntary and

automatic cancellation

) shall reduce the amount of each Tranche then unutilised rateably.

(b)

The unutilised Commitment (if any) shall be automatically cancelled at close of business on the

date on which the Facility is made available.

7.4

Voluntary prepayment of Loan

(a)

Subject to paragraph (b) and (d) below, the Borrowers may, if they give the Lender not less than

10 US Government Securities Business Days (or such shorter period as the Lender may agree) prior

notice, prepay the whole or any part of a Tranche (but, if in part, being an amount that reduces

the amount of that Tranche by a minimum amount equal to one Repayment Instalment in respect

of that Tranche (other than the first Repayment Instalment) or a multiple of that amount).

(b)

The Loan may only be prepaid after the last day of the Availability Period (or, if earlier, the day on

which the Available Facility is zero).

(c)

Any partial prepayment under this Clause 7.4 (

Voluntary prepayment of Loan

) shall reduce

pro rata

the amount of each Repayment Instalment under the relevant Tranche and, if applicable, the

Balloon Instalment under that Tranche falling after that prepayment by the amount prepaid.

(d)

Subject to the fee provided for in Clause 11.2 (

Prepayment fee)

, there may be no more than three

voluntary prepayments in part of a Tranche made in each 12-month period beginning on the first

Utilisation Date. 

7.5

Mandatory prepayment on sale or Total Loss

(a)

If a Ship is sold (without prejudice to paragraph (a) of Clause 22.12 (

Disposals

)) or becomes a Total

Loss, the Borrowers shall on the Relevant Date prepay the Tranche applicable to that Ship.

(b)

On the Relevant Date, the Borrowers shall also prepay:

(i)

such part of the Loan as shall eliminate any shortfall arising if the ratio set out in Clause 25

(

Security Cover

) were applied immediately following the payment referred to in paragraph

(a) above; and

(ii)

if applicable, such amount as may be required to maintain the Security Cover Ratio which

applied immediately before the sale or Total Loss.

(c)

In this Clause 7.5 (

Mandatory prepayment on sale or Total Loss

):

"

Relevant Date

" means:

(i)

in the case of a sale of a Ship, on the date of transfer of title of such Ship; and

(ii)

in the case of a Total Loss of a Ship:

(A)

if and to the extent that such prepayment is not, in the reasonable opinion of the

Lender, covered by the proceeds of the relevant Insurances, within 30 days after

the Total Loss Date; and

(B)

if and to the extent that such prepayment is, in the reasonable opinion of the

Lender, covered by the proceeds of the Insurance relating to such Total Loss, on

the earlier of (1) the date falling 180 days after the Total Loss Date (or, if the Lender

has received the relevant insurers' written confirmation that the full insurance

claim relating to such Total Loss will be covered in such form as the Lender may

reasonably require, such period shall be extended to 360 days after the Total Loss

Date) and (2) the date of receipt by the Lender of the proceeds of insurance

relating to such Total Loss.

(d)

Any partial prepayment of the Loan under this Clause 7.5 (

Mandatory prepayment on sale or Total

Loss

) shall be applied towards full prepayment of the Tranche applicable to the Ship which is sold

or has become a Total Loss. Any excess amount prepaid pursuant to paragraph (b) of this Clause

7.5 (

Mandatory prepayment on sale or Total Loss

) shall be applied pro rata towards prepayment

of the other Tranches and shall reduce

pro rata

 the amount of each Repayment Instalment falling

after that prepayment and, if applicable, the Balloon Instalment of each such Tranche.

7.6

Restrictions

(a)

Any notice of cancellation or prepayment given by any Party under this Clause 7 (

Prepayment and

Cancellation

) shall be irrevocable and, unless a contrary indication appears in this Agreement, shall

specify the date or dates upon which the relevant cancellation or prepayment is to be made and

the amount of that cancellation or prepayment.

(b)

Any prepayment under this Agreement shall be made together with accrued interest on the

amount prepaid and, subject to the fee provided for in Clause 11.2 (

Prepayment fee)

and any Break

Costs, without premium or penalty.

(c)

No Borrower may reborrow any part of the Facility which is prepaid.

(d)

No Borrower shall repay or prepay all or any part of the Loan or cancel all or any part of the

Commitment except at the times and in the manner expressly provided for in this Agreement.

(e)

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

SECTION 5

COSTS OF UTILISATION

8

INTEREST

8.1

Calculation of interest

The rate of interest on the Loan or any part of the Loan for each Interest Period is the percentage

rate per annum which is the aggregate of the applicable:

(a)

Margin; and

(b)

Reference Rate. 

8.2

Payment of interest

(a)

The Borrowers shall pay accrued interest on the Loan or any part of the Loan on the last day of

each Interest Period (each an "

Interest

Payment

Date

").

(b)

If an Interest Period is longer than three Months, the Borrowers shall also pay interest then

accrued on the Loan or the relevant part of the Loan on the dates falling at three Monthly intervals

after the first day of the Interest Period.

8.3

Default interest

(a)

If a Transaction Obligor fails to pay any amount payable by it under a Finance Document on its due

date, interest shall accrue on the Unpaid Sum from the due date up to the date of actual payment

(both before and after judgment) at a rate which, subject to paragraph (b) below, is two per cent.

per annum higher than the rate which would have been payable if the Unpaid Sum had, during the

period of non-payment, constituted part of the Loan in the currency of the Unpaid Sum for

successive Interest Periods, each of a duration selected by the Lender. Any interest accruing under

this Clause 8.3 (

Default interest

) shall be immediately payable by the Obligor on demand by the

Lender.

(b)

If an Unpaid Sum consists of all or part of the Loan which became due on a day which was not the

last day of an Interest Period relating to the Loan or that part of the Loan:

(i)

the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired

portion of the current Interest Period relating to the Loan or that part of the Loan; and

(ii)

the rate of interest applying to that Unpaid Sum during that first Interest Period shall be

two per cent. per annum higher than the rate which would have applied if that Unpaid

Sum had not become due.

(c)

Default interest (if unpaid) arising on an Unpaid Sum will be compounded with the Unpaid Sum at

the end of each Interest Period applicable to that Unpaid Sum but will remain immediately due

and payable.

8.4

Notifications

The Lender shall promptly notify the Borrowers of the determination of a rate of interest under

this Agreement.

The Lender shall promptly notify the Borrowers of each Funding Rate relating to the Loan or any

part of the Loan.

9

INTEREST PERIODS

9.1

Length of Interest Periods

(a)

The Interest Period for each Tranche will, subject to Clause 9.2 (

Changes to Interest Periods

), be

three Months or any other period agreed between the Borrowers and the Lender.

(b)

An Interest Period in respect of a Tranche or any part of a Tranche shall not extend beyond the

Termination Date.

(c)

The first Interest Period for each Tranche shall start on the Utilisation Date relating to such Tranche

and end on the first Repayment Date upon which all Tranches shall be consolidated for the

purposes of interest and be treated as the Loan. Each subsequent Interest Period shall start on the

last day of its preceding Interest Period.

(d)

Except for the purposes of Clause 9.2 (

Changes to Interest Periods

), each Tranche shall have one

Interest Period only at any time.

9.2

Changes to Interest Periods

(a)

In respect of a Repayment Instalment, prior to determining the interest rate for the relevant

Tranche, the Lender may establish an Interest Period for a part of the relevant Tranche equal to

such Repayment Instalment to end on the Repayment Date relating to it and the remaining part

of that Tranche shall have an Interest Period of three Months.

(b)

If the Lender makes any change to an Interest Period referred to in this Clause 9.2 (

Changes to

Interest Periods

), it shall promptly notify the Borrowers.

9.3

Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period

will instead end on the next Business Day in that calendar month (if there is one) or the preceding

Business Day (if there is not).

10

CHANGES TO THE CALCULATION OF INTEREST

10.1

Temporary unavailability of Term SOFR

Subject to Clause 10.4 (

Permanent cessation of Published Rate

):

Interpolated Term SOFR

: If no Term SOFR is available for the Interest Period of the Loan or any

part of the Loan, the applicable Reference Rate shall be the Interpolated Term SOFR for a period

equal in length to the Interest Period of the Loan or that part of the Loan.

Historic Term SOFR

: If no Term SOFR is available for the Interest Period of the Loan or that part of

the Loan and it is not possible to calculate the Interpolated Term SOFR, the applicable Reference

Rate shall be the Historic Term SOFR for the Loan or that part of the Loan.

Interpolated Historic Term SOFR:

If paragraph (b) above applies but no Historic Term SOFR is

available for the Interest Period of the Loan or any part of the Loan, the applicable Reference Rate

shall be the Interpolated Historic Term SOFR for a period equal in length to the Interest Period of

the Loan or that part of the Loan.

Cost of funds

: If paragraph (c) above applies but it is not possible to calculate the Interpolated

Historic Term SOFR, there shall be no Reference Rate for the Loan or that part of the Loan (as

applicable) and Clause 10.3 (

Cost of funds

) shall apply to the Loan or that part of the Loan for that

Interest Period, unless otherwise determined pursuant to Clause 10.4 (

Permanent cessation of

Published Rate

). 

10.2

Market disruption

If before close of business in Copenhagen on the Quotation Day for the relevant Interest Period

the Lender notifies the Borrowers that its cost of funds relating to the Loan or the relevant part of

the Loan would be in excess of the Market Disruption Rate then Clause 10.3 (

Cost of funds

) shall

apply to the Loan or that part of the Loan (as applicable) for the relevant Interest Period.

10.3

Cost of funds

(a)

If this Clause 10.3 (

Cost of funds

) applies to the Loan or part of the Loan for an Interest Period,

Clause 8.1 (

Calculation of interest

) shall not apply to the Loan or that part of the Loan for that

Interest Period and the rate of interest on the Loan or that part of the Loan for the relevant Interest

Period shall be the percentage rate per annum which is the sum of:

(i)

the Margin; and

(ii)

the rate notified by the Lender to the Borrowers as soon as practicable and in any event

no later than on the date falling 2 Business Days before the date on which interest is due

to be paid in respect of that Interest Period for that Loan, to be that which expresses as a

percentage rate per annum its cost of funds relating to the Loan or that part of the Loan.

(b)

If any rate notified by the Lender pursuant to paragraph (a) above is less than zero, the relevant

rate shall be deemed to be zero.

(c)

If this Clause 10.3 (

Cost of funds

) applies pursuant to Clause 10.2 (

Market disruption

) and the

Lender's Funding Rate is less than the Market Disruption Rate, the Lender's cost of funds in relation

to the Loan or any part of the Loan for that Interest Period shall be deemed to be the Market

Disruption Rate. 

(d)

If this Clause 10.3 (

Cost of funds

) applies and the Lender or the Borrowers so requires, the Lender

and the Borrowers shall enter into negotiations (for a period of not more than thirty days) with a

view to agreeing a substitute basis for determining the rate of interest.

(e)

If this Clause 10.3 (

Cost of funds

) applies, the Lender shall, as soon as practicable, notify the Parent

Guarantor on behalf of the Borrowers.

10.4

Permanent cessation of Published Rate

If a Published Rate Replacement Event occurs, the Lender and the Borrowers shall enter into

negotiations (for a period of not more than 30 days (the "

Negotiation Period

")) with a view to

agreeing an appropriate Replacement Reference Rate.

After the occurrence of Published Rate Replacement Event and as long as the Parties have not

agreed on a Replacement Reference Rate (including during the Negotiation Period) or if an agreed

Replacement Reference Rate has not become effective, the interest under this Agreement shall

accrue and be calculated, at the Lender's option, on the basis of:

(i)

Clause 10.3 (

Cost of funds

); or

(ii)

A Compounded Reference Rate calculated in accordance with the methodology set out in

the LMA's template for Single Currency Term and Revolving Facilities Agreement

incorporating backward looking compounded rates (Lookback without Observation Shift)

(LMA. STR. Compounded Rate LB.02) of 28 May 2021 (the "

Template

") with the following

amendments and selections:

(A)

Cost of funds: to apply as fallback and to be determined in accordance with this

Agreement;

(B)

Central Bank Rate: to include the full wording of the Template;

(C)

Central Bank Rate Adjustment: to be defined as "In relation to the Central Bank

Rate prevailing at close of business on any US Government Securities Business Day,

the 20 per cent trimmed arithmetic mean (calculated by the Lender) of the Central

Bank Rate Spreads for the five most immediately preceding US Government

Securities Business Days for which the SOFR is available."

(D)

Central Bank Rate Spread: to be defined as "In relation to any US Government

Securities Business Day, the difference (expressed as a percentage rate per

annum) calculated by the Lender of (a) the SOFR for that US Government

Securities Business Day; and (b) the Central Bank Rate prevailing at close of

business on that US Government Securities Business Day."

(E)

Daily Rate: to include full wording from the Template and "5 US Government

Securities Business Days" to be inserted under item (c)(i);

(F)

Lookback Period: to be 5 US Government Securities Business Days;

(G)

Market Disruption Rate: to be defined as "the Cumulative Compounded RFR Rate

for the Interest Period of the Loan or the relevant part of the Loan.";

(H)

Margin: equivalent to "Margin" (as defined in this Agreement);

(I)

RFR Contingency Period: to be 15 days;

(J)

Interest Periods: to apply unchanged as set out in this Agreement;

(K)

Reporting Day: to be the Business Day which follows the day which is the Lookback

Period prior to the last day of the Interest Period;

Reporting Times: to be, in respect of (aa) the Market Disruption Rate, close of

business in Copenhagen on the Reporting Day for the Loan or the relevant part of

the Loan and (bb) the Lender's cost of funds, close of business on the date falling

three (3) Business Days after the Reporting Day for the Loan or the relevant part

of the Loan (or, if earlier, on the date falling two (2) Business Days before the date

on which interest is due to be paid in respect of the Interest Period for the Loan or

the relevant part of the Loan); or

(iii)

any other Replacement Reference Rate;

(in each case with the addition of the applicable Margin) and any such interest rate, interest

methodology and/or calculation shall apply forthwith at such time without the need for any

amendment to any Finance Documents other than any amendment required by the Lender in

accordance with paragraph (c) below.

If the Lender and the Borrowers agree on a Replacement Reference Rate pursuant to paragraph

(a) above or if an interest rate is determined pursuant to paragraph (b) above, the Obligors shall

and shall procure that each other Transaction Obligor shall as soon as possible following the

Lender's request:

(i)

execute such documents as the Lender may specify (including any agreement

supplemental to this Agreement and any new or amended Security Documents) to

document such new interest rate and to implement any Replacement Reference Rate

Conforming Changes; and

(ii)

deliver to the Lender such documents and evidence of the type referred to in Schedule 2

(

Conditions precedent

) in relation to the documents referred to in paragraph (i) above as

the Lender may deem necessary or desirable.

In this Clause 10.4 (

Permanent cessation of Published Rate

):

"

Published Rate

" means:

(a)

the SOFR; 

(b)

Term SOFR for any Quoted Tenor; or

(c)

any Replacement Reference Rate to the extent it has replaced the SOFR or Term SOFR

pursuant to this Clause 10.4 (

Permanent cessation of Published Rate

).

"

Published Rate Replacement Event

" means, in relation to a Published Rate:

(a)

the methodology, formula or other means of determining that Published Rate has, in the

opinion of the Lender and the Borrowers materially changed;

(b)

(i)

(A)

the administrator of that Published Rate or its supervisor publicly

announces that such administrator is insolvent; or

(B)

information is published in any order, decree, notice, petition or filing,

however described, of or filed with a court, tribunal, exchange, regulatory

authority or similar administrative, regulatory or judicial body which

reasonably confirms that the administrator of that Published Rate is

insolvent,

provided that

, in each case, at that time, there is no successor administrator to

continue to provide that Published Rate;

(ii)

the administrator of that Published Rate publicly announces that it has ceased or

will cease, to provide that Published Rate permanently or indefinitely and, at that

time, there is no successor administrator to continue to provide that Published

Rate;

(iii)

the supervisor of the administrator of that Published Rate publicly announces that

such Published Rate has been or will be permanently or indefinitely discontinued;

or

(iv)

the administrator of that Published Rate or its supervisor announces that that

Published Rate may no longer be used; or

(c)

the administrator of that Published Rate (or the administrator of an interest rate which is

a constituent element of that Published Rate) determines that that Published Rate should

be calculated in accordance with its reduced submissions or other contingency or fallback

policies or arrangements and either:

(i)

the circumstance(s) or event(s) leading to such determination are not (in the

opinion of the Lender and the Borrowers) temporary; or

(ii)

that Published Rate is calculated in accordance with any such policy or

arrangement for a period which is no less than the period specified as the "RFR

Contingency Period" in the Reference Rate Terms ; or 

(d)

in the opinion of the Lender and the Borrowers, that Published Rate is otherwise no longer

appropriate for the purposes of calculating interest under this Agreement.

"

Quoted Tenor"

 means 3 Months.

"

Relevant Nominating Body

" means any applicable central bank, regulator or other supervisory

authority or a group of them, or any working group or committee sponsored or chaired by, or

constituted at the request of, any of them or the Financial Stability Board.

"

Replacement Reference Rate

" means a reference rate which is:

(a)

formally designated, nominated or recommended as the replacement for a Published Rate

by:

(i)

the administrator of that Published Rate (provided that the market or economic

reality that such reference rate measures is the same as that measured by that

Published Rate); or

(ii)

any Relevant Nominating Body,

and if replacements have, at the relevant time, been formally designated, nominated or

recommended under both paragraphs, the "Replacement Reference Rate" will be the

replacement under sub-paragraph (ii) above;

(b)

in the opinion of the Lender and the Borrowers, generally accepted in the international or

any relevant domestic syndicated loan markets as the appropriate successor to a

Published Rate; or

(c)

in the opinion of the Lender and the Borrowers, an appropriate successor to a Published

Rate.

"

Replacement Reference Rate Conforming Changes

" means, with respect to any Replacement

Reference Rate, any technical, administrative or operational changes (including changes to the

definition of "Term SOFR", "Reference Rate", "Interest Period" or "Business Day", timing and

frequency of determining rates and making payments of interest and other technical,

administrative or operational matters) that the Lender decides may be appropriate to reflect the

adoption and implementation of such Replacement Reference Rate or to permit the use and

administration thereof by the Lender in a manner substantially consistent with market practice

(or, if the Lender decides that adoption of any portion of such market practice is not

administratively feasible or if the Lender determines that no market practice for the

administration of the Replacement Reference Rate exists, in such other manner of administration

as the Lender decides is reasonably necessary in connection with the administration of this

Agreement and the other Finance Documents).

10.5

Break Costs

The Borrowers shall, within three Business Days of demand by the Lender, pay to the Lender its

Break Costs (if any) attributable to all or any part of the Loan or an Unpaid Sum being paid by a

Borrower on a day prior to the last day of an Interest Period for the Loan, the relevant part of the

Loan or that Unpaid Sum.

11

FEES

11.1

Upfront fee

The Borrowers shall pay (and in the case of paragraph (a) below have paid) to the Lender a non-

refundable upfront fee of $750,000 (representing 0.75 per cent. of the maximum amount of the

Commitment) payable in two instalments as follows:

(a)

the first instalment of $375,000 has been paid on 21 March 2023 (being the date the Borrowers

accepted the Lender's offer letter) and the Lender acknowledges receipt of such instalment; and 

(b)

the second instalment in the amount of $375,000 shall be payable on the first Utilisation Date.

11.2

Prepayment fee

If more than three voluntary prepayments are made in accordance with Clause 7.4 (

Voluntary

prepayment of Loan

) in each 12-month period beginning on the first Utilisation Date, the

Borrowers shall, on demand, pay to the Lender, a prepayment fee of $5,000 for any additional

voluntary prepayment on the date of such prepayment of all or any part of a Tranche.

11.3

Reflagging fee

The Borrowers shall pay to the Lender a non-refundable reflagging fee of $2,500 for every change

of flag in respect of a Ship on or prior to the occurrence of such change.

SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

12

TAX GROSS UP AND INDEMNITIES

12.1

Definitions

(a)

In this Agreement:

"

Tax Credit

" means a credit against, relief or remission for, or repayment of any Tax.

"

Tax Deduction

" means a deduction or withholding for or on account of Tax from a payment under

a Finance Document, other than a FATCA Deduction.

"

Tax Payment

" means either the increase in a payment made by an Obligor to the Lender under

Clause 12.2 (

Tax gross-up

) or a payment under Clause 12.3 (

Tax indemnity

).

(b)

Unless a contrary indication appears, in this Clause 12 (

Tax Gross Up and Indemnities

) reference

to "

determines

" or "

determined

" means a determination made in the absolute discretion of the

person making the determination.

12.2

Tax gross-up

(a)

Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax

Deduction is required by law.

(b)

The Borrowers shall promptly upon becoming aware that an Obligor must make a Tax Deduction

(or that there is any change in the rate or the basis of a Tax Deduction) notify the Lender

accordingly. Similarly, the Lender shall notify the Borrowers and that Obligor on becoming so

aware in respect of a payment payable to the Lender.

(c)

If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due

from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves

an amount equal to the payment which would have been due if no Tax Deduction had been

required.

(d)

If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and

any payment required in connection with that Tax Deduction within the time allowed and in the

minimum amount required by law.

(e)

Within 30 days of making either a Tax Deduction or any payment required in connection with that

Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Lender evidence

reasonably satisfactory to the Lender that the Tax Deduction has been made or (as applicable) any

appropriate payment paid to the relevant taxing authority.

12.3

Tax indemnity

(a)

The Obligors shall (within three Business Days of demand by the Lender) pay to the Lender an

amount equal to the loss, liability or cost which the Lender determines will be or has been (directly

or indirectly) suffered for or on account of Tax by the Lender in respect of a Finance Document.

(b)

Paragraph (a) above shall not apply:

(i)

with respect to any Tax assessed on the Lender:

(A)

under the law of the jurisdiction in which the Lender is incorporated or, if different,

the jurisdiction (or jurisdictions) in which the Lender is treated as resident for tax

purposes; or

(B)

under the law of the jurisdiction in which the Lender's Facility Office is located in

respect of amounts received or receivable in that jurisdiction,

if that Tax is imposed on or calculated by reference to the net income received or

receivable (but not any sum deemed to be received or receivable) by the Lender; or

(ii)

to the extent a loss, liability or cost:

(A)

is compensated for by an increased payment under Clause 12.2 (

Tax gross-up

); or

(B)

relates to a FATCA Deduction required to be made by a Party.

(c)

The Lender shall, if making, or intending to make, a claim under paragraph (a) above, promptly

notify the Obligors of the event which will give, or has given, rise to the claim.

12.4

Tax Credit

If an Obligor makes a Tax Payment and the Lender determines that:

(a)

a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that

Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was received; and

(b)

the Lender has obtained and utilised that Tax Credit,

the Lender shall pay an amount to the Obligor which the Lender determines will leave it (after that

payment) in the same after-Tax position as it would have been in had the Tax Payment not been

required to be made by the Obligor.

12.5

Stamp taxes

The Obligors shall pay and, within three Business Days of demand, indemnify the Lender against

any cost, loss or liability which the Lender incurs in relation to all stamp duty, registration and

other similar Taxes payable in respect of any Finance Document.

12.6

VAT

(a)

All amounts expressed to be payable under a Finance Document by any Party to the Lender which

(in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to

be exclusive of any VAT which is chargeable on that supply, and accordingly, if VAT is or becomes

chargeable on any supply made by the Lender to any Party under a Finance Document and the

Lender is required to account to the relevant tax authority for the VAT, that Party must pay to the

Lender (in addition to and at the same time as paying any other consideration for such supply) an

amount equal to the amount of the VAT (and the Lender must promptly provide an appropriate

VAT invoice to that Party).

(b)

Where a Finance Document requires any Party to reimburse or indemnify the Lender for any cost

or expense, that Party shall reimburse or indemnify (as the case may be) the Lender for the full

amount of such cost or expense, including such part of it as represents VAT, save to the extent

that the Lender reasonably determines that it is entitled to credit or repayment in respect of such

VAT from the relevant tax authority.

(c)

Any reference in this Clause 12.6 (

VAT

) to any Party shall, at any time when that Party is treated

as a member of a group or unity (or fiscal unity) for VAT purposes, include (where appropriate and

unless the context otherwise requires) a reference to the person who is treated at that time as

making the supply, or (as appropriate) receiving the supply, under the grouping rules provided for

in Article 11 of Council Directive 2006/112/EC (or as implemented by the relevant member state

of the European Union or equivalent provisions imposed elsewhere) so that a reference to a Party

shall be construed as a reference to that Party or the relevant group or unity (or fiscal unity) of

which that Party is a member for VAT purposes at the relevant time or the relevant representative

member (or representative or head) of that group or unity at the relevant time (as the case may

be).

(d)

In relation to any supply made by the Lender to any Party under a Finance Document, if reasonably

requested by the Lender, that Party must promptly provide the Lender with details of that Party's

VAT registration and such other information as is reasonably requested in connection with the

Lender's VAT reporting requirements in relation to such supply. 

12.7

FATCA Information

(a)

Subject to paragraph (c) below, each Party shall, within ten Business Days of a reasonable request

by another Party:

(i)

confirm to that other Party whether it is:

(A)

a FATCA Exempt Party; or

(B)

not a FATCA Exempt Party; and

(ii)

supply to that other Party such forms, documentation and other information relating to

its status under FATCA as that other Party reasonably requests for the purposes of that

other Party's compliance with FATCA; and

(iii)

supply to that other Party such forms, documentation and other information relating to

its status as that other Party reasonably requests for the purposes of that other Party's

compliance with any other law, regulation or exchange of information regime.

(b)

If a Party confirms to another Party pursuant to sub-paragraph (i) of paragraph (a) above that it is

a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a

FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

(c)

Paragraph (a) above shall not oblige the Lender to do anything and sub-paragraph (iii) of paragraph

(a) above shall not oblige any other Party to do anything which would or might in its reasonable

opinion constitute a breach of:

(i)

any law or regulation;

(ii)

any fiduciary duty; or

(iii)

any duty of confidentiality.

(d)

If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms,

documentation or other information requested in accordance with sub-paragraphs (i) or (ii) of

paragraph (a) above (including, for the avoidance of doubt, where paragraph (c) above applies),

then such Party shall be treated for the purposes of the Finance Documents (and payments under

them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the

requested confirmation, forms, documentation or other information. 

12.8

FATCA Deduction

(a)

Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment

required in connection with that FATCA Deduction, and no Party shall be required to increase any

payment in respect of which it makes such a FATCA Deduction or otherwise compensate the

recipient of the payment for that FATCA Deduction.

(b)

Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that

there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it

is making the payment.

13

INCREASED COSTS

13.1

Increased costs

(a)

Subject to Clause 13.3 (

Exceptions

), the Borrowers shall, within three Business Days of a demand

by the Lender, pay for the account of the Lender the amount of any Increased Costs incurred by

the Lender or any of its Affiliates as a result of:

(i)

the introduction of or any change in (or in the interpretation, administration or application

of) any law or regulation; or

(ii)

compliance with any law or regulation made,

in each case after the date of this Agreement; or

(iii)

the implementation, application of or compliance with Basel III or CRD IV or any law or

regulation that implements or applies Basel III or CRD IV.

(b)

In this Agreement:

(i)

"

Basel III

" means:

(A)

the agreements on capital requirements, a leverage ratio and liquidity standards

contained in "Basel III: A global regulatory framework for more resilient banks and

banking systems", "Basel III: International framework for liquidity risk

measurement, standards and monitoring" and "Guidance for national authorities

operating the countercyclical capital buffer" published by the Basel Committee on

Banking Supervision in December 2010, each as amended, supplemented or

restated;

(B)

the rules for global systemically important banks contained in "Global systemically

important banks: assessment methodology and the additional loss absorbency

requirement - Rules text" published by the Basel Committee on Banking

Supervision in November 2011, as amended, supplemented or restated; and

(C)

any further guidance or standards published by the Basel Committee on Banking

Supervision relating to "Basel III".

(ii)

"

CRD IV

" means:

(A)

Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26

June 2013 on prudential requirements for credit institutions and investment firms

and amending regulation (EU) No. 648/2012, as amended by Regulation (EU)

2019/876;

(B)

Directive 2013/36/EU of the European Parliament and of the Council of 26 June

2013 on access to the activity of credit institutions and the prudential supervision

of credit institutions and investment firms, amending Directive 2002/87/EC and

repealing Dire ctives 2006/48/EC and 2006/49/EC, as amended by Directive (EU)

2019/878; and

(C)

any other law or regulation which implements Basel III.

(iii)

"

Increased Costs

" means:

(A)

a reduction in the rate of return from the Facility or on the Lender's (or its

Affiliate's) overall capital;

(B)

an additional or increased cost; or

(C)

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

which is incurred or suffered by the Lender or any of its Affiliates to the extent that it is

attributable to the Lender having entered into the Commitment or funding or performing

its obligations under any Finance Document.

13.2

Increased cost claims

If the Lender intends to make a claim pursuant to Clause 13.1 (

Increased costs

) it shall promptly

notify the Borrowers.

13.3

Exceptions

Clause 13.1 (

Increased costs

) does not apply to the extent any Increased Cost is:

(a)

attributable to a Tax Deduction required by law to be made by an Obligor;

(b)

attributable to a FATCA Deduction required to be made by a Party;

(c)

compensated for by Clause 12.3 (

Tax indemnity

) (or would have been compensated for under

Clause 12.3 (

Tax indemnity

) but was not so compensated solely because any of the exclusions in

paragraph (b) of Clause 12.3 (

Tax indemnity

) applied);

(d)

compensated for by any payment made pursuant to Clause 14.3 (

Mandatory Cost

); or

(e)

attributable to the wilful breach by the Lender or its Affiliates of any law or regulation.

14

OTHER INDEMNITIES

14.1

Currency indemnity

(a)

If any sum due from an Obligor under the Finance Documents (a "

Sum

"), or any order, judgment

or award given or made in relation to a Sum, has to be converted from the currency (the "

First

Currency

") in which that Sum is payable into another currency (the "

Second Currency

") for the

purpose of:

(i)

making or filing a claim or proof against that Obligor; or

(ii)

obtaining or enforcing an order, judgment or award in relation to any litigation or

arbitration proceedings,

that Obligor shall, as an independent obligation, on demand, indemnify the Lender against any

cost, loss or liability arising out of or as a result of the conversion including any discrepancy

between (A) the rate of exchange used to convert that Sum from the First Currency into the Second

Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of

that Sum.

(b)

Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance

Documents in a currency or currency unit other than that in which it is expressed to be payable.

14.2

Other indemnities

(a)

Each Obligor shall, on demand, indemnify the Lender and any Receiver and Delegate against:

(i)

any cost, loss or liability incurred by it as a result of:

(A)

the occurrence of any Event of Default;

(B)

a failure by a Transaction Obligor to pay any amount due under a Finance

Document on its due date;

(C)

funding, or making arrangements to fund, an Advance requested by the Borrowers

in the Utilisation Request but not made by reason of the operation of any one or

more of the provisions of this Agreement (other than by reason of default or

negligence by the Lender alone); or

(D)

the Loan (or part of the Loan) not being prepaid in accordance with a notice of

prepayment given by the Borrowers; or

(E)

investigating any event which it reasonably believes is a Default; and

(ii)

any cost, loss or liability (including, without limitation, for negligence or any other category

of liability whatsoever) incurred by the Lender (otherwise than by reason of the Lender's

gross negligence or wilful misconduct) or, in the case of any cost, loss or liability pursuant

to Clause 30.8 (

Disruption to Payment Systems etc.

) notwithstanding the Lender's

negligence, gross negligence or any other category of liability whatsoever but not including

any claim based on the fraud of the Lender in acting as Lender under the Finance

Documents.

(b)

Each Obligor shall, on demand, indemnify the Lender, each Affiliate of the Lender and any Receiver

and Delegate and each officer or employee of the Lender or its Affiliate or any Receiver or Delegate

(as applicable) (each such person for the purposes of this Clause 14.2 (

Other indemnities

) an

"

Indemnified Person

"), against any cost, loss or liability (including, without limitation, for

negligence or any other category of liability whatsoever) incurred by that Indemnified Person

pursuant to or in connection with any litigation, arbitration or administrative proceedings or

regulatory enquiry, in connection with or arising out of the entry into and the transactions

contemplated by the Finance Documents, having the benefit of any Security constituted by the

Finance Documents or which relates to the condition or operation of, or any incident occurring in

relation to, any Ship unless such cost, loss or liability is caused by the gross negligence or wilful

misconduct of that Indemnified Person.

(c)

No Party other than the Lender or the Receiver or Delegate (as applicable) may take any

proceedings against any officer, employee or agent of the Lender or the Receiver or Delegate (as

applicable) in respect of any claim it might have against the Lender or the Receiver or Delegate or

in respect of any act or omission of any kind by that officer, employee or agent in relation to any

Transaction Document or any Security Property.

(d)

Without limiting, but subject to any limitations set out in paragraph (b) above, the indemnity in

paragraph (b) above shall cover any cost, loss or liability incurred by each Indemnified Person in

any jurisdiction:

(i)

arising or asserted under or in connection with any law relating to safety at sea, the ISM

Code, any Environmental Law or any Sanctions; or

(ii)

in connection with any Environmental Claim.

(e)

Each Obligor shall, on demand, indemnify the Lender and every Receiver and Delegate against any

cost, loss or liability (including, without limitation, for negligence or any other category of liability

whatsoever) incurred by any of them:

(i)

in relation to or as a result of:

(A)

any failure by any Borrower to comply with its obligations under Clause 16 (

Costs

and Expenses

);

(B)

acting or relying on any notice, request or instruction which it reasonably believes

to be genuine, correct and appropriately authorised;

(C)

the taking, holding, protection or enforcement of the Finance Documents and the

Transaction Security;

(D)

the exercise of any of the rights, powers, discretions, authorities and remedies

vested in the Lender and each Receiver and Delegate by the Finance Documents

or by law;

(E)

any default by any Transaction Obligor in the performance of any of the obligations

expressed to be assumed by it in the Finance Documents;

(F)

any action by any Transaction Obligor which vitiates, reduces the value of, or is

otherwise prejudicial to, the Transaction Security; and

(G)

instructing lawyers, accountants, tax advisers, surveyors or other professional

advisers or experts as permitted under the Finance Documents;

(ii)

which otherwise relates to any of the Security Property or the performance of the terms

of this Agreement or the other Finance Documents (otherwise, in each case, than by

reason of the Lender's or Receiver's or Delegate's gross negligence or wilful misconduct).

(f)

Any Affiliate or Receiver or Delegate or any officer or employee of the Lender, or of any of its

Affiliates or any Receiver or Delegate (as applicable) may rely on this Clause 14.2 (

Other

indemnities

) and the provisions of the Third Parties Act, subject to Clause 1.5 (

Third party rights

)

and the provisions of the Third Parties Act. 

14.3

Mandatory Cost

Each Borrower shall, on demand by the Lender, pay to the Lender, such amount which the Lender

certifies in a notice to the Borrowers to be its good faith determination of the amount necessary

to compensate it for complying with:

(a)

if the Lender is lending from a Facility Office in a Participating Member State, the minimum reserve

requirements (or other requirements having the same or similar purpose) of the European Central

Bank (or any other authority or agency which replaces all or any of its functions) in respect of loans

made from that Facility Office; and

(b)

if the Lender is lending from a Facility Office in the United Kingdom, any reserve asset, special

deposit or liquidity requirements (or other requirements having the same or similar purpose) of

the Bank of England (or any other governmental authority or agency) and/or paying any fees to

the Financial Conduct Authority and/or the Prudential Regulation Authority (or any other

governmental authority or agency which replaces all or any of their functions),

which, in each case, is referable to the Loan. 

14.4

Lender's management time

Any amount payable to the Lender under Clause 14.2 (

Other indemnities

) and Clause 16 (

Costs and

Expenses

) shall include the cost of utilising the Lender's management time or other resources and

will be calculated on the basis of such reasonable daily or hourly rates as the Lender may notify to

the Borrowers, and is in addition to any fee paid or payable to the Lender under Clause 11 (

Fees

).

15

MITIGATION BY THE LENDER AND FORCE MAJEURE 

15.1

Mitigation

(a)

The Lender shall, in consultation with the Borrowers, take all reasonable steps to mitigate any

circumstances which arise and which would result in any amount becoming payable under or

pursuant to, or cancelled pursuant to, any of Clause 7.1 (

Illegality

), Clause 12 (

Tax Gross Up and

Indemnities

), Clause 13 (

Increased Costs

) or paragraph (a) of Clause 14.3 (

Mandatory Cost

)

including (but not limited to) assigning its rights under the Finance Documents to another Affiliate

or Facility Office.

(b)

Paragraph (a) above does not in any way limit the obligations of any Transaction Obligor under the

Finance Documents.

15.2

Limitation of liability

(a)

Each Obligor shall, on demand, indemnify the Lender for all costs and expenses reasonably

incurred by the Lender as a result of steps taken by it under Clause 15.1 (

Mitigation

).

(b)

The Lender is not obliged to take any steps under Clause 15.1 (

Mitigation

) if either:

(i)

a Default has occurred and is continuing;

or

(ii)

in the opinion of the Lender (acting reasonably), to do so might be prejudicial to it.

15.3

Force Majeure and limitation of liability 

(a)

The Lender shall not be held responsible for any damage arising out of any legal enactment, or any

measure undertaken by a public authority, or war, strike, lockout, boycott, blockade or any other

similar circumstance. The reservation in respect of strikes, lockouts, boycotts and blockades

applies even if the Lender takes such measures, or is subject to such measures.

(b)

Unless the Lender's liabilities have been limited otherwise in the Finance Documents, any damage

that may arise in other cases shall not be indemnified by the Lender if the Lender has observed

normal care. The Lender shall not in any case be held responsible for any indirect damage,

consequential damage and/or loss of profit. Should there be an obstacle as described above for

the Lender to take any action in compliance with this Agreement, such action may be postponed

until the obstacle has been removed.

16

COSTS AND EXPENSES

16.1

Transaction expenses

The Obligors shall, promptly on demand, pay the Lender the amount of all costs and expenses

(including legal fees) reasonably incurred by it in connection with the negotiation, preparation,

printing, execution and perfection of:

(a)

this Agreement and any other documents referred to in this Agreement or in a Security Document;

and

(b)

any other Finance Documents executed after the date of this Agreement.

16.2

Amendment costs

Subject to Clause 16.4 (

Reference rate transition costs

) if:

(a)

a Transaction Obligor requests an amendment, waiver or consent;

(b)

an amendment is required either pursuant to Clause 30.6 (

Change of currency

) or as contemplated

in Clause 10.4 (

Permanent cessation of Published Rate

); or

(c)

a Transaction Obligor requests, and the Lender agrees to, the release of all or any part of the

Security Assets from the Transaction Security,

the Obligors shall, on demand, reimburse the Lender for the amount of all costs and expenses

(including legal fees) reasonably incurred by the Lender in responding to, evaluating, negotiating

or complying with that request or requirement.

16.3

Enforcement and preservation costs

The Obligors shall, on demand, pay to the Lender the amount of all costs and expenses (including

legal fees) incurred by the Lender in connection with the enforcement of, or the preservation of

any rights under, any Finance Document or the Transaction Security and with any proceedings

instituted by or against the Lender as a consequence of it entering into a Finance Document, taking

or holding the Transaction Security, or enforcing those rights.

16.4

Reference rate transition costs

The Borrowers shall on demand reimburse the Lender for the amount of all costs and expenses

(including legal fees) reasonably incurred by it in connection with any change arising as a result of

an amendment required under Clause 10.4 (

Permanent cessation of Published Rate

).

SECTION 7

GUARANTEES AND JOINT AND SEVERAL LIABILITY OF BORROWERS

17

GUARANTEE AND INDEMNITY – PARENT GUARANTOR

17.1

Guarantee and indemnity

The Parent Guarantor irrevocably and unconditionally:

(a)

guarantees to the Lender punctual performance by each Transaction Obligor other than the Parent

Guarantor of all such other Transaction Obligor's obligations under the Finance Documents;

(b)

undertakes with the Lender that whenever a Transaction Obligor other than the Parent Guarantor

does not pay any amount when due under or in connection with any Finance Document, the Parent

Guarantor shall immediately on demand pay that amount as if it were the principal obligor; and

(c)

agrees with the Lender that if any obligation guaranteed by it is or becomes unenforceable, invalid

or illegal, it will, as an independent and primary obligation, indemnify the Lender immediately on

demand against any cost, loss or liability it incurs as a result of a Transaction Obligor other than

the Parent Guarantor not paying any amount which would, but for such unenforceability, invalidity

or illegality, have been payable by it under any Finance Document on the date when it would have

been due. The amount payable by the Parent Guarantor under this indemnity will not exceed the

amount it would have had to pay under this Clause 17 (

Guarantee and Indemnity – Parent

Guarantor

) if the amount claimed had been recoverable on the basis of a guarantee.

17.2

Continuing guarantee

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable

by any Transaction Obligor under the Finance Documents, regardless of any intermediate payment

or discharge in whole or in part.

17.3

Reinstatement

If any discharge, release or arrangement (whether in respect of the obligations of any Transaction

Obligor or any security for those obligations or otherwise) is made by the Lender in whole or in

part on the basis of any payment, security or other disposition which is avoided or must be

restored in insolvency, liquidation, administration or otherwise, without limitation, then the

liability of the Parent Guarantor under this Clause 17 (

Guarantee and Indemnity – Parent

Guarantor

) will continue or be reinstated as if the discharge, release or arrangement had not

occurred.

17.4

Waiver of defences

The obligations of the Parent Guarantor under this Clause 17 (

Guarantee and Indemnity – Parent

Guarantor

) and in respect of any Transaction Security will not be affected or discharged by an act,

omission, matter or thing which, but for this Clause 17.4 (

Waiver of defences

), would reduce,

release or prejudice any of its obligations under this Clause 17 (

Guarantee and Indemnity – Parent

Guarantor

) or in respect of any Transaction Security (without limitation and whether or not known

to it or the Lender) including:

(a)

any time, waiver or consent granted to, or composition with, any Transaction Obligor or other

person;

(b)

the release of any other Transaction Obligor or any other person under the terms of any

composition or arrangement with any creditor of any member of the Group;

(c)

the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect

or delay in perfecting, or refusal or neglect to take up or enforce, or delay in taking or enforcing

any rights against, or security over assets of, any Tr ansaction Obligor or other person or any non-

presentation or non-observance of any formality or other requirement in respect of any

instrument or any failure to realise the full value of any security;

(d)

any incapacity or lack of power, authority or legal personality of or dissolution or change in the

members or status of a Transaction Obligor or any other person;

(e)

any amendment, novation, supplement, extension, restatement (however fundamental and

whether or not more onerous) or replacement of any Finance Document or any other document

or security including, without limitation, any change in the purpose of, any extension of or any

increase in any facility or the addition of any new facility under any Finance Document or other

document or security;

(f)

any unenforceability, illegality or invalidity of any obligation of any person under any Finance

Document or any other document or security; or

(g)

any insolvency or similar proceedings.

17.5

Immediate recourse

The Parent Guarantor waives any right it may have of first requiring the Lender (or any trustee or

agent on its behalf) to proceed against or enforce any other rights or security or claim payment

from any person (including without limitation to commence any proceedings under any Finance

Document or to enforce any Transaction Security) before claiming or commencing proceedings

under this Clause 17 (

Guarantee and Indemnity – Parent Guarantor

). This waiver applies

irrespective of any law or any provision of a Finance Document to the contrary.

17.6

Appropriations

Until all amounts which may be or become payable by the Transaction Obligors under or in

connection with the Finance Documents have been irrevocably paid in full, the Lender (or any

trustee or agent on its behalf) may:

(a)

refrain from applying or enforcing any other moneys, security or rights held or received by the

Lender (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce

the same in such manner and order as it sees fit (whether against those amounts or otherwise)

and the Parent Guarantor shall not be entitled to the benefit of the same; and

(b)

hold in an interest-bearing suspense account any moneys received from the Parent Guarantor or

on account of the Parent Guarantor's liability under this Clause 17 (

Guarantee and Indemnity –

Parent Guarantor

).

17.7

Deferral of Parent Guarantor's rights

All rights which the Parent Guarantor at any time has (whether in respect of this guarantee, a

mortgage or any other transaction) against any Borrower, any other Transaction Obligor or their

respective assets shall be fully subordinated to the rights of the Lender under the Finance

Documents and until the end of the Security Period and unless the Lender otherwise directs, the

Parent Guarantor will not exercise any rights which it may have (whether in respect of any Finance

Document to which it is a Party or any other transaction) by reason of performance by it of its

obligations under the Finance Documents or by reason of any amount being payable, or liability

arising, under this Clause 17 (

Guarantee and Indemnity – Parent Guarantor

):

(a)

to be indemnified by a Transaction Obligor;

(b)

to claim any contribution from any third party providing security for, or any other guarantor of,

any Transaction Obligor's obligations under the Finance Documents;

(c)

to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any

rights of the Lender under the Finance Documents or of any other guarantee or security taken

pursuant to, or in connection with, the Finance Documents by the Lender;

(d)

to bring legal or other proceedings for an order requiring any Transaction Obligor to make any

payment, or perform any obligation, in respect of which the Parent Guarantor has given a

guarantee, undertaking or indemnity under Clause 17.1 (

Guarantee and indemnity

);

(e)

to exercise any right of set-off against any Transaction Obligor; and/or

(f)

to claim or prove as a creditor of any Transaction Obligor in competition with the Lender.

If the Parent Guarantor receives any benefit, payment or distribution in relation to such rights it

shall hold that benefit, payment or distribution to the extent necessary to enable all amounts

which may be or become payable to the Lender by the Transaction Obligors under or in connection

with the Finance Documents to be repaid in full on trust for the Lender and shall promptly pay or

transfer the same to the Lender or as the Lender may direct for application in accordance with

Clause 30 (

Payment Mechanics

).

17.8

Additional security

This guarantee and any other Security given by the Parent Guarantor is in addition to and is not in

any way prejudiced by, and shall not prejudice, any other guarantee or Security or any other right

of recourse now or subsequently held by the Lender or any right of set-off or netting or right to

combine accounts in connection with the Finance Documents.

17.9

Applicability of provisions of Guarantee to other Security

Clauses 17.2 (

Continuing guarantee

), 17.3 (

Reinstatement

), 17.4 (

Waiver of defences

), 17.5

(

Immediate recourse

), 17.6 (

Appropriations

), 17.7 (

Deferral of Parent Guarantor's rights

) and 17.8

(

Additional security

) shall apply, with any necessary modifications, to any Security which the

Parent Guarantor creates (whether at the time at which it signs this Agreement or at any later

time) to secure the Secured Liabilities or any part of them.

18

JOINT AND SEVERAL LIABILITY OF THE BORROWERS

18.1

Joint and several liability

All liabilities and obligations of the Borrowers under this Agreement shall, whether expressed to

be so or not, be joint and several.

18.2

Waiver of defences

The liabilities and obligations of a Borrower shall not be impaired by:

(a)

this Agreement being or later becoming void, unenforceable or illegal as regards any other

Borrower;

(b)

the Lender entering into any rescheduling, refinancing or other arrangement of any kind with any

other Borrower;

(c)

the Lender releasing any other Borrower or any Security created by a Finance Document;

(d)

any time, waiver or consent granted to, or composition with any other Borrower or other person;

(e)

the release of any other Borrower or any other person under the terms of any composition or

arrangement with any creditor of any member of the Group;

(f)

the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect,

take up or enforce, any rights against, or security over assets of, any other Borrower or other

person or any non-presentation or non-observance of any formality or other requirement in

respect of any instrument or any failure to realise the full value of any security;

(g)

any incapacity or lack of power, authority or legal personality of or dissolution or change in the

members or status of any other Borrower or any other person;

(h)

any amendment, novation, supplement, extension, restatement (however fundamental, and

whether or not more onerous) or replacement of a Finance Document or any other document or

security including, without limitation, any change in the purpose of, any extension of or any

increase in any facility or the addition of any new facility under any Finance Document or other

document or security;

(i)

any unenforceability, illegality or invalidity of any obligation or any person under any Finance

Document or any other document or security; or

(j)

any insolvency or similar proceedings.

18.3

Principal Debtor

Each Borrower declares that it is and will, throughout the Security Period, remain a principal

debtor for all amounts owing under this Agreement and the Finance Documents and no Borrower

shall, in any circumstances, be construed to be a surety for the obligations of any other Borrower

under this Agreement.

18.4

Borrower restrictions

(a)

Subject to paragraph (b) below, during the Security Period no Borrower shall:

(i)

claim any amount which may be due to it from any other Borrower whether in respect of

a payment made under, or matter arising out of, this Agreement or any Finance Document,

or any matter unconnected with this Agreement or any Finance Document;

(ii)

take or enforce any form of security from any other Borrower for such an amount, or in

any way seek to have recourse in respect of such an amount against any asset of any other

Borrower;

(iii)

set off such an amount against any sum due from it to any other Borrower;

(iv)

prove or claim for such an amount in any liquidation, administration, arrangement or

similar procedure involving any other Borrower; or

(v)

exercise or assert any combination of the foregoing.

(b)

If during the Security Period, the Lender, by notice to a Borrower, requires it to take any action

referred to in paragraph (a) above in relation to any other Borrower, that Borrower shall take that

action as soon as practicable after receiving the Lender's notice.

18.5

Deferral of Borrowers' rights

Until all amounts which may be or become payable by the Borrowers under or in connection with

the Finance Documents have been irrevocably paid in full and unless the Lender otherwise directs,

no Borrower will exercise any rights which it may have by reason of performance by it of its

obligations under the Finance Documents:

(a)

to be indemnified by any other Borrower; or

(b)

to claim any contribution from any other Borrower in relation to any payment made by it under

the Finance Documents.

SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

19

REPRESENTATIONS

19.1

General

Each Obligor makes the representations and warranties set out in this Clause 19 (

Representations

)

to the Lender on the date of this Agreement.

19.2

Status

(a)

It is a limited liability corporation, duly incorporated and validly existing and in good standing

under the law of its Original Jurisdiction.

(b)

It and each Transaction Obligor has the power to own its assets and carry on its business as it is

being conducted.

19.3

Share capital and ownership

(a)

Each Borrower is authorised to issue 500 registered shares of $0.01 each, all of which shares have

been issued fully paid.

(b)

The legal title to and beneficial interest in the shares in each Borrower is held by the Parent

Guarantor free of any Security (other than relevant Shares Security) or any other claim.

(c)

None of the shares in any Borrower is subject to any option to purchase, pre-emption rights or

similar rights.

19.4

Binding obligations

The obligations expressed to be assumed by it in each Transaction Document to which it is a party

are legal, valid, binding and enforceable obligations.

19.5

Validity, effectiveness and ranking of Security

(a)

Each Finance Document to which it is a party does now or, as the case may be, will upon execution

and delivery create the Security it purports to create over any assets to which such Security, by its

terms, relates, and such Security will, when created or intended to be created, be valid and

effective.

(b)

No third party has or will have any Security (except for Permitted Security) over any assets that

are the subject of any Transaction Security granted by it.

(c)

The Transaction Security granted by it to the Lender has or will when created or intended to be

created have first ranking priority or such other priority it is expressed to have in the Finance

Documents and is not subject to any prior ranking or

pari passu

 ranking Security.

(d)

No concurrence, consent or authorisation of any person is required for the creation of or otherwise

in connection with any Transaction Security.

19.6

Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, each Transaction

Document to which it is a party do not and will not conflict with:

(a)

any law or regulation applicable to it;

(b)

the constitutional documents of any member of the Group; or

(c)

any agreement or instrument binding upon it or any member of the Group or any of its assets or

any member of the Group's assets or constitute a default or termination event (however

described) under any such agreement or instrument.

19.7

Power and authority

(a)

It has the power to enter into, perform and deliver, and has taken all necessary action to authorise

its entry into, performance and delivery of, each Transaction Document to which it is or will be a

party and the transactions contemplated by those Transaction Documents.

(b)

No limit on its powers will be exceeded as a result of the borrowing, granting of security or giving

of guarantees or indemnities contemplated by the Transaction Documents to which it is a party.

19.8

Validity and admissibility in evidence

All Authorisations required or desirable:

(a)

to enable it lawfully to enter into, exercise its rights and comply with its obligations in the

Transaction Documents to which it is a party; and

(b)

to make the Transaction Documents to which it is a party admissible in evidence in its Relevant

Jurisdictions,

have been obtained or effected and are in full force and effect.

19.9

Governing law and enforcement

(a)

The choice of governing law of each Transaction Document to which it is a party will be recognised

and enforced in its Relevant Jurisdictions.

(b)

Any judgment obtained in relation to a Transaction Document to which it is a party in the

jurisdiction of the governing law of that Transaction Document will be recognised and enforced in

its Relevant Jurisdictions.

19.10

Insolvency

No:

(a)

corporate action, legal proceeding or other procedure or step described in paragraph (a) of Clause

27.8 (

Insolvency proceedings

); or

(b)

creditors' process described in Clause 27.9 (

Creditors' process

),

has been taken or, to its knowledge, threatened in relation to a member of the Group; and none

of the circumstances described in Clause 27.7 (

Insolvency

) applies to a member of the Group.

19.11

No filing or stamp taxes

Under the laws of its Relevant Jurisdictions it is not necessary that the Finance Documents to which

it is a party be registered, filed, recorded, notarised or enrolled with any court or other authority

in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in

relation to the Finance Documents to which it is a party or the transactions contemplated by those

Finance Documents.

19.12

Deduction of Tax

It is not required to make any Tax Deduction from any payment it may make under any Finance

Document to which it is a party.

19.13

No default

(a)

No Event of Default and, on the date of this Agreement and on each Utilisation Date, no Default is

continuing or might reasonably be expected to result from the making of any Utilisation or the

entry into, the performance of, or any transaction contemplated by, any Transaction Document.

(b)

No other event or circumstance is outstanding which constitutes a default or a termination event

(however described) under any other agreement or instrument which is binding on it or any of its

Subsidiaries or to which its (or any of its Subsidiaries') assets are subject.

19.14

No misleading information

(a)

All factual information provided by any member of the Group for the purposes of this Agreement

was true and accurate in all material respects as at the date it was provided or as at the date (if

any) at which it is stated.

(b)

The financial projections contained in any such information have been prepared on the basis of

recent historical information and on the basis of reasonable assumptions.

(c)

Nothing has occurred or been omitted from any such information and no information has been

given or withheld that results in any such information being untrue or misleading in any material

respect.

19.15

Financial Statements

(a)

The Original Financial Statements were prepared in accordance with GAAP consistently applied.

(b)

The Original Financial Statements give a true and fair view of (if audited) or fairly represent (if

unaudited) the Group's consolidated financial condition as at the end of the relevant Financial Year

and the Group's consolidated results of operations during the relevant Financial Year.

(c)

There has been no material adverse change in the assets, business or consolidated financial

condition of the Group since the date of the annual Original Financial Statements.

(d)

The Parent Guarantor's most recent financial statements delivered pursuant to Clause 20.2

(

Financial statements

):

(i)

have been prepared in accordance with Clause 20.4 (

Requirements as to financial

statements

); and

(ii)

give a true and fair view of (if audited) or fairly represent (if unaudited) its consolidated

financial condition as at the end of the relevant Financial Year and operations during the

relevant Financial Yea

r.

(e)

Since the date of the most recent financial statements delivered pursuant to Clause 20.2 (

Financial

statements

) there has been no material adverse change in the business or consolidated financial

condition of the Group.

19.16

Pari passu ranking

Its payment obligations under the Finance Documents to which it is a party rank at least

pari passu

with the claims of all its other unsecured and unsubordinated creditors, except for obligations

mandatorily preferred by law applying to companies generally.

19.17

No proceedings pending or threatened

(a)

No litigation, arbitration or administrative proceedings or investigations (including proceedings or

investigations relating to any alleged or actual breach of the ISM Code or of the ISPS Code) of or

before any court, arbitral body or agency which, if adversely determined, might reasonably be

expected to have a Material Adverse Effect have (to the best of its knowledge and belief (having

made due and careful enquiry)) been started or threatened against it or any other Transaction

Obligor or any member of the Group.

(b)

No judgment or order of a court, arbitral tribunal or other tribunal or any order or sanction of any

governmental or other regulatory body which might reasonably be expected to have a Material

Adverse Effect has (to the best of its knowledge and belief (having made due and careful enquiry))

been made against it or any other Transaction Obligor or any member of the Group.

19.18

Validity and completeness of Deed of Release

(a)

Each Deed of Release constitutes legal, valid, binding and enforceable obligations of the relevant

Existing Agent.

(b)

The copy of each Deed of Release delivered to the Lender is a true and complete copy.

(c)

No amendments or additions to any Deed of Release have been agreed nor have any rights under

any Deed of Release been waived.

19.19

Valuations

(a)

All information supplied by it or on its behalf to an Approved Valuer for the purposes of a valuation

delivered to the Lender in accordance with this Agreement was true and accurate as at the date it

was supplied or (if appropriate) as at the date (if any) at which it is stated to be given.

(b)

It has not omitted to supply any information to an Approved Valuer which, if disclosed, would

adversely affect any valuation prepared by such Approved Valuer.

(c)

There has been no change to the factual information provided pursuant to paragraph (a) above in

relation to any valuation between the date such information was provided and the date of that

valuation which, in either case, renders that information untrue or misleading in any material

respect.

19.20

No breach of laws

It has not (and no other member of the Group has) breached any law or regulation which breach

has or is reasonably likely to have a Material Adverse Effect.

19.21

No Charter

No Ship is subject to any Charter other than a Permitted Charter.

19.22

Compliance with Environmental Laws

All Environmental Laws relating to the ownership, operation and management of each Ship and

the business of each member of the Group (as now conducted and as reasonably anticipated to

be conducted in the future) and the terms of all Environmental Approvals have been complied

with.

19.23

No Environmental Claim

No Environmental Claim has been made or threatened against any member of the Group or any

Ship.

19.24

No Environmental Incident

No Environmental Incident has occurred and no person has claimed that an Environmental

Incident has occurred.

19.25

ISM and ISPS Code compliance

All requirements of the ISM Code and the ISPS Code as they relate to each Borrower, each

Approved Technical Manager and each Ship have been complied with.

19.26

Taxes paid

(a)

It is not and no other member of the Group is materially overdue in the filing of any Tax returns

and it is not (and no other member of the Group is) overdue in the payment of any amount in

respect of Tax.

(b)

No claims or investigations are being, or are reasonably likely to be, made or conducted against it

(or any other member of the Group) with respect to Taxes.

19.27

Financial Indebtedness

No Obligor has any Financial Indebtedness outstanding other than Permitted Financial

Indebtedness.

19.28

Overseas companies

No Transaction Obligor has delivered particulars, whether in its name stated in the Finance

Documents or any other name, of any UK Establishment to the Registrar of Companies as required

under the Overseas Regulations or, if it has so registered, it has provided to the Lender sufficient

details to enable an accurate search against it to be undertaken by the Lender at the Companies

Registry.

19.29

Good title to assets

It and each other member of the Group has good, valid and marketable title to, or valid leases or

licences of, and all appropriate Authorisations to use, the assets necessary to carry on its business

as presently conducted.

19.30

Ownership

(a)

Each Borrower is the sole legal and beneficial owner of the Ship owned by it, its Earnings and its

Insurances.

(b)

With effect on and from the date of its creation or intended creation, each Transaction Obligor

will be the sole legal and beneficial owner of any asset that is the subject of any Transaction

Security created or intended to be created by such Transaction Obligor.

(c)

The constitutional documents of each Transaction Obligor do not and could not restrict or inhibit

any transfer of the shares of the Borrowers on creation or enforcement of the security conferred

by the Security Documents.

(d)

Diana Shipping is a wholly owned Subsidiary of the Parent Guarantor.

(e)

DWM is 50 per cent. owned by the Parent Guarantor.

19.31

Centre of main interests and establishments

For the purposes of The Council of the European Union Regulation No. 2015/848 on Insolvency

Proceedings (recast)(the "Regulation"), its centre of main interest (as that term is used in Article

3(1) of the Regulation) is situated at the address for notices specified in Schedule 1 (

The Parties

)

and it has no "establishment" (as that term is used in Article 2(10) of the Regulation) in any other

jurisdiction.

19.32

Place of business

No Transaction Obligor has a place of business in any country other than the Hellenic Republic and

its head office functions are carried out at the address for notices specified in Schedule 1 (

The

Parties

).

19.33

No employee or pension arrangements

No Transaction Obligor has any employees or any liabilities under any pension scheme.

19.34

Sanctions

(a)

No Transaction Obligor nor any other member of the Group nor any Affiliate of any member of the

Group, nor any of their respective directors, officers or employees nor, to the knowledge of any

Transaction Obligor, any persons acting on any of their behalf:

(i)

is a Prohibited Person or is involved in any transaction through which it is likely to become

a Prohibited Person;

(ii)

owns or controls a Prohibited Person;

(iii)

is in breach of applicable Sanctions; or

(iv)

is involved in or has received notice of or is aware of any claim, action, suit, proceeding or

investigation against it with respect to Sanctions by any Sanctions Authority.

(b)

None of the Ships is a vessel with which any person is prohibited or restricted from dealing with

under any Sanctions.

(c)

Each Transaction Obligor has instituted and maintains policies and procedures designed to

promote and achieve compliance by each member of the Group and each other Transaction

Obligor with applicable Sanctions. 

(d)

No proceeds of any part of the Loan shall be made available directly or indirectly, to or for the

benefit of a Prohibited Person that could result in the Lender being in violation of Sanctions or in

a manner that would be contrary to Sanctions nor shall they be otherwise directly or indirectly

applied in a manner or for a purpose prohibited by applicable Sanctions.

(e)

No member of the Group, no Transaction Obligor and no Affiliate of any member of the Group or

Transaction Obligor is the subject of any Sanctions or is subject to any restrictive measures,

embargoes or prohibitions by a Sanctions Authority.

19.35

US Tax Obligor

No Transaction Obligor is a US Tax Obligor.

19.36

No immunity

No Borrower, 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 judgement, execution or other enforcement).

19.37

No other business 

(a)

No Borrower is engaged in any business other than the ownership and operation of the relevant

Ship or other shipping activities in connection therewith.

(b)

The Parent Guarantor is not engaged in any business other than holding the shares of single

purpose shipowning Subsidiaries and assisting its Subsidiaries with acquiring and financing vessels

and with their arrangements in respect of the operation of such vessels.

19.38

Material adverse change

No event or circumstance has occurred which has or is reasonably likely to have a Material Adverse

Effect.

19.39

Anti-bribery, anti-corruption and anti-money laundering

No Transaction Obligor nor any of its Subsidiaries, directors or officers, beneficial owners or, to

the best knowledge of such Transaction Obligor, any affiliate, agent or employee of it, has engaged

in any activity or conduct which would violate any Anti-Money Laundering Laws and each

Transaction Obligor has instituted and maintains policies and procedures designed to prevent

violation of such Anti-Money Laundering Laws. 

19.40

Repetition

The Repeating Representations are deemed to be made by each Obligor by reference to the facts

and circumstances then existing on the date of the Utilisation Request and the first day of each

Interest Period.

20

INFORMATION UNDERTAKINGS

20.1

General

The undertakings in this Clause 20 (

Information Undertakings

) remain in force throughout the

Security Period unless the Lender otherwise permits.

20.2

Financial statements

The Obligors shall supply to the Lender:

(a)

as soon as they become available, but in any event within 150 days after the end of each of its

Financial Years , the audited consolidated financial statements of the Parent Guarantor for that

Financial Year (including balance sheet and profit and loss statement); and

(b)

as soon as the same become available, but in any event within 90 days after the end of each

quarter of each of its Financial Years, the unaudited consolidated financial statements of the

Parent Guarantor for that financial quarter, in the form they were published in the relevant press

release.

20.3

Compliance Certificate

(a)

The Parent Guarantor shall supply to the Lender, no later than 150 days after 31 December and 90

days after 30 June of each year in each Financial Year, together with the relevant financial

statements delivered pursuant to paragraph (a) and paragraph (b) of Clause 20.2 (

Financial

statements

), a Compliance Certificate.

(b)

Each Compliance Certificate shall be signed by the chief financial officer of the Parent Guarantor.

(c)

For the avoidance of doubt, each Compliance Certificate shall not be accompanied by valuations

of the Fleet Vessels (other than the Ships) unless the Lender in its sole discretion doubts the

accuracy of the vessel values serving as basis for the calculation of the Market Value Adjusted Net

Worth (as defined in Clause 21 (

Financial covenants

)), in which case the Lender shall have the right

to request the Borrowers to obtain one valuation (at the Borrowers' cost) for each Fleet Vessel

from an Approved Valuer, appointed by the Lender, such valuations to be addressed to the Lender.

20.4

Requirements as to financial statements

(a)

Each set of financial statements delivered by the Parent Guarantor pursuant to Clause 20.2

(

Financial statements

) shall be certified by the chief financial officer of the Parent Guarantor.

(b)

The Obligors shall procure that each set of financial statements delivered pursuant to Clause 20.2

(

Financial statements

) is prepared using GAAP accounting practices and financial reference periods

consistent with those applied in the preparation of the Original Financial Statements.

20.5

DAC6

(a)

In this Clause 20.5 (

DAC6

), "

DAC6

" means the Council Directive of 25 May 2018 (2018/822/EU)

amending Directive 2011/16/EU or any replacement legislation applicable in the United Kingdom.

(b)

The Parent Guarantor shall supply to the Lender:

(i)

promptly upon the making of such analysis or the obtaining of such advice, any analysis

made or advice obtained on whether any transaction contemplated by the Transaction

Documents or any transaction carried out (or to be carried out) in connection with any

transaction contemplated by the Transaction Documents contains a hallmark as set out in

Annex IV of DAC6; and

(ii)

promptly upon the making of such reporting and to the extent permitted by applicable law

and regulation, any reporting made to any governmental or taxation authority by or on

behalf of any member of the Group or by any adviser to such member of the Group in

relation to DAC6 or any law or regulation which implements DAC6 and any unique

identification number issued by any governmental or taxation authority to which any such

report has been made (if available).

20.6

Information: miscellaneous

Each Obligor shall, and shall procure that each other Transaction Obligor shall, supply to the

Lender:

(a)

all documents dispatched by it to its shareholders (or any class of them) or its creditors generally

at the same time as they are dispatched;

(b)

the filing or commencement of any action, suit, investigation or proceeding by or before any

arbitrator or governmental authority against or affecting any Transaction Obligor including

pursuant to any applicable Sanctions;

(c)

other than in relation to paragraph (b) above, promptly upon becoming aware of them, the details

of any litigation, arbitration or administrative proceedings or investigations (including proceedings

or investigations relating to any alleged or actual breach of the ISM Code or of the ISPS Code)

which are current, threatened or pending against any member of the Group, and which might, if

adversely determined, have a Material Adverse Effect;

(d)

promptly upon becoming aware of them, the details of any judgment or order of a court, arbitral

body or agency which is made against any member of the Group and which might have a Material

Adverse Effect;

(e)

promptly, its constitutional documents where these have been amended or varied;

(f)

promptly, such further information and/or documents regarding:

(i)

each Ship, goods transported on each Ship, its Earnings and its Insurances;

(ii)

the Security Assets;

(iii)

compliance of the Transaction Obligors with the terms of the Finance Documents;

(iv)

the financial condition, business and operations of any member of the Group (including

any press releases),

as the Lender may reasonably request; 

(g)

promptly, such further information and/or documents as the Lender may reasonably request so

as to enable the Lender to comply with any laws applicable to it or as may be required by any

regulatory authority; and

(h)

 upon request of the Lender, all of the relevant data and information relating to the environmental,

social and governance (i.e. sustainability) aspects of the Parent Guarantor's business model

necessary to build the Lender's environmental, social and governance rating of the Parent

Guarantor.

20.7

Notification of Default

(a)

Each Obligor shall, and shall procure that each other Transaction Obligor shall, notify the Lender

of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of

its occurrence (unless that Obligor is aware that a notification has already been provided by

another Obligor).

(b)

Promptly upon a request by the Lender, each Borrower shall supply to the Lender a certificate

signed by two of its directors or senior officers on its behalf certifying that no Default is continuing

(or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy

it).

20.8

"

Know your customer

"

 checks

(a)

If:

(i)

the introduction of or any change in (or in the interpretation, administration or application

of) any law or regulation made after the date of this Agreement;

(ii)

any change in the status of a Transaction Obligor (or the Holding Company of a Transaction

Obligor) (including, without limitation, a change of ownership of a Transaction Obligor or

the Holding Company of a Transaction Obligor) after the date of this Agreement; or

(iii)

a proposed assignment by the Lender of any of its rights under this Agreement,

obliges the Lender (or, in the case of paragraph (iii) above, any prospective assignee) to comply

with "know your customer" or similar identification procedures in circumstances where the

necessary information is not already available to it, each Obligor shall promptly upon the request

of the Lender supply, or procure the supply of, such documentation and other evidence as is

reasonably requested by the Lender (for itself or, in the case of the event described in paragraph

(iii) above, on behalf of any prospective assignee) in order for the Lender or, in the case of the

event described in paragraph (iii) above, any prospective assignee to carry out and be satisfied it

has complied with all necessary "know your customer" or other similar checks under the Danish

Consolidating Act no. 1022 of 13

th

 of August 2013 on Measures to Prevent Money Laundering and

Financing of Terrorism (as amended and supplemented) and all applicable laws and regulations

pursuant to the transactions contemplated in the Finance Documents.

(b)

Each Obligor shall promptly upon the request of the Lender supply copies of the signing authority

of any person executing a document on behalf of the Customers (as defined in paragraph 6.7 of

Part A of Schedule 2 (

Conditions Precedent

)) in such form as specified by the Lender (acting

reasonably and having regard to the forms of authorities that were provided by that Transaction

Obligor pursuant to the relevant provisions of Clause 4 (

Conditions of Utilisation

)).

(c)

The Borrowers shall promptly upon the request of the Lender supply a statement from the

Customers (as defined in paragraph 6.7 of Part A of Schedule 2 (

Conditions Precedent

)) confirming

that the documents, data or information previously provided to the Lender under paragraph (b)

above and paragraph 6.7 of Part A of Schedule 2 (

Conditions Precedent

) is up-to-date, or,

alternatively, any relevant updated documents, data or information.

(d)

The Borrowers shall supply or procure to supply, upon the request of the Lender, all information

necessary in order for the Lender to carry out all relevant sanctions screenings and be satisfied it

has complied with all applicable sanctions regulations including the Lender's internal Sanction

Compliance Procedure and such other documentation and information as the Lender deems

necessary and/or advisable in order to comply with any law and/or regulation regarding money

laundering and/or the financing of terrorist activities (including, without limitation, such

documentation and information as the Lender deems necessary and/or advisable in order to

comply with customer due diligence measures for purposes of AML/CTF checks as required by the

Danish Consolidating Act no. 1782 of November 27, 2020 on Measures to Prevent Money

Laundering and Financing of Terrorism (as amended and supplemented) and with the Lender's

internal AML/CTF policies).

21

FINANCIAL COVENANTS

21.1

Financial covenants

(a)

The Parent Guarantor shall ensure that at all times:

(i)

the aggregate of all Cash and Cash Equivalents held by the Parent Guarantor on a

consolidated basis shall at all times be no less than $500,000 per Fleet Vessel; and

(ii)

the Market Value Adjusted Net Worth of the Group shall be no less than the higher of (A)

$150,000,000 and (B) 25 per cent. of the Market Value Adjusted Total Assets. 

(b)

The Parent Guarantor shall:

(i)

comply with the financial covenants as set out in paragraph (a) above at all times

throughout the Security Period , such financial covenants to be calculated on the basis of

the consolidated financial statements of the Parent Guarantor delivered pursuant to

paragraph (a) and paragraph (b) of Clause 20.2 (

Financial statements

); and

(ii)

provide to the Lender a Compliance Certificate and any other required information in

accordance with Clause 20.3 (

Compliance Certificate

). 

21.2

Definitions

In this Clause 21 (

Financial covenants

):

"

Applicable Accounts

" means, as at the date of calculation or, as the case may be, in respect of an

accounting period, the annual audited consolidated financial statements of the Parent Guarantor

or the quarterly unaudited consolidated financial statements for the second quarter (including the

balance for the first six-month period of the relevant Financial Year), in each case, which the Parent

Guarantor is obliged to deliver to the Lender pursuant to Clause 20.2 (

Financial statements

) (in

accordance with the provisions of Clause 20.4 (

Requirements as to financial statements

));

"

Cash and Cash Equivalents

" means, at any time, the aggregate of:

(a)

the amount of freely available and unencumbered credit balances on any deposit or

current account;

(b)

the market value of transferable certificates of deposit in a freely convertible currency

acceptable to the Lender issued by a prime international bank; and

(c)

the market value of equity securities (if and to the extent that the Lender is satisfied that

such equity securities are readily saleable for cash and that there is a ready market

therefor) and investment grade debt securities which are publicly traded on a major stock

exchange or investment market (valued at market value as at any applicable date of

determination); 

in each case owned free of any Security (other than a Security in favour of the Lender) by the

Parent Guarantor and any of its Subsidiaries where:

(i)

the market value of any asset specified in paragraph (b) and (c) shall be the bid

price quoted for it on the relevant calculation date by the Lender; and

(ii)

the amount or value of any asset denominated in a currency other than dollars

shall be converted into dollars using the Lender's spot rate for the purchase of

Dollars with that currency on the relevant calculation date;

"

Market Value Adjusted Net Worth

" means Market Value Adjusted Total Assets less Total Debt;

"

Market Value Adjusted Total Assets

" means, at any time, the Total Assets adjusted to reflect the

difference between the book values of all Fleet Vessels and the aggregate Market Value of all Fleet

Vessels;

"

Total Assets

" means, at any date of calculation, the amount of the total assets of the Group

determined on a consolidated basis as shown in the most recent Applicable Accounts delivered by

the Parent Guarantor pursuant to Clause 20.2 (

Financial statements

); and

"

Total Debt

" means, at any date of calculation or, as the case may be, for any accounting period,

the total liabilities of the Group on a consolidated basis as at that date or for that period as shown

in the most recent Applicable Accounts delivered by the Parent Guarantor pursuant to Clause 20.2

(

Financial statements

).

22

GENERAL UNDERTAKINGS

22.1

General

The undertakings in this Clause 22 (

General Undertakings

) remain in force throughout the Security

Period except as the Lender may otherwise permit.

22.2

Authorisations

Each Obligor shall, and shall procure that each other Transaction Obligor will, promptly:

(a)

obtain, comply with and do all that is necessary to maintain in full force and effect; 

(b)

supply certified copies to the Lender of,

any Authorisation required under any law or regulation of a Relevant Jurisdiction or the state of

the Approved Flag at any time of each Ship to enable it to:

(i)

perform its obligations under the Transaction Documents to which it is a party;

(ii)

ensure the legality, validity, enforceability or admissibility in evidence in any Relevant

Jurisdiction or in the state of the Approved Flag at any time of each Ship of any Transaction

Document to which it is a party; 

(iii)

own and operate each Ship (in the case of the Borrowers); and 

(c)

without prejudice to the generality of the above, ensure that if, but for the obtaining of an

Authorisation, an Obligor would be in breach of any of the provisions of this Agreement which

relate to Sanctions or, by reason of Sanctions, would be prohibited from performing any provision

of this Agreement, such an Authorisation is obtained so as to avoid such breach or to enable such

performance.

22.3

Compliance with laws

Each Obligor shall, and shall procure that each other Transaction Obligor will, comply in all respects

with all laws and regulations to which it may be subject, if failure so to comply has or is reasonably

likely to have a Material Adverse Effect and shall ensure that no Transaction Obligor shall engage

or conspire to engage in any activity or conduct which would violate any Anti-Money Laundering

Laws.

22.4

Environmental compliance

Each Obligor shall, and shall procure that each other Transaction Obligor will, and the Parent

Guarantor shall ensure that each other member of the Group will:

(a)

comply with all Environmental Laws;

(b)

obtain, maintain and ensure compliance with all requisite Environmental Approvals;

(c)

implement procedures to monitor compliance with and to prevent liability under any

Environmental Law.

22.5

Environmental Claims

Each Obligor shall, and shall procure that each other Transaction Obligor will, (through the Parent

Guarantor) promptly upon becoming aware of the same, inform the Lender in writing of:

(a)

any Environmental Claim against any member of the Group which is current, pending or

threatened; and

(b)

any facts or circumstances which are reasonably likely to result in any Environmental Claim being

commenced or threatened against any member of the Group,

where the claim, if determined against that member of the Group, has or is reasonably likely to

have a Material Adverse Effect.

22.6

Taxation

(a)

Each Obligor shall, and shall procure that each other Transaction Obligor will, and the Parent

Guarantor shall ensure that each other member of the Group will pay and discharge all Taxes

imposed upon it or its assets within the time period allowed without incurring penalties unless and

only to the extent that:

(i)

such payment is being contested in good faith;

(ii)

adequate reserves are maintained for those Taxes and the costs required to contest them

and both have been disclosed in its latest financial statements delivered to the Lender

under Clause 20.2 (

Financial statements

); and

(iii)

such payment can be lawfully withheld.

(b)

No member of the Group shall and the Obligors shall procure that no other Transaction Obligor

will, change its residence for Tax purposes.

22.7

Overseas companies

Each Obligor shall, and shall procure that each other Transaction Obligor will, promptly inform the

Lender if it delivers to the Registrar particulars required under the Overseas Regulations of any UK

Establishment and it shall comply with any directions given to it by the Lender regarding the

recording of any Transaction Security on the register which it is required to maintain under The

Overseas Companies (Execution of Documents and Registration of Charges) Regulations 2009.

22.8

No change to centre of main interests

No Obligor shall change the location of its centre of main interest (as that term is used in

Article 3(1) of the Regulation) from that stated in relation to it in Clause 19.31 (

Centre of main

interests and establishments

) and it will create no "

establishment

" (as that term is used in Article

2(10) of the Regulation) in any other jurisdiction.

22.9

Pari passu ranking

Each Obligor shall, and shall procure that each other Transaction Obligor will, ensure that at all

times any unsecured and unsubordinated claims of the Lender against it under the Finance

Documents rank at least

pari passu

 with the claims of all its other unsecured and unsubordinated

creditors except those creditors whose claims are mandatorily preferred by laws of general

application to companies.

22.10

Title

(a)

Each Borrower shall hold the legal title to, and own the entire beneficial interest in the Ship owned

by it, its Earnings and its Insurances.

(b)

With effect on and from its creation or intended creation, each Obligor shall hold the legal title to,

and own the entire beneficial interest in any other assets the subject of any Transaction Security

created or intended to be created by such Obligor.

22.11

Negative pledge

(a)

No Borrower will create or permit to subsist any Security over any of its assets.

(b)

No Borrower shall:

(i)

sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may

be leased to or re-acquired by a Transaction Obligor or any other member of the Group;

(ii)

sell, transfer or otherwise dispose of any of its receivables on recourse terms;

(iii)

enter into any arrangement under which money or the benefit of a bank or other account

may be applied, set-off or made subject to a combination of accounts; or

(iv)

enter into any other preferential arrangement having a similar effect,

in circumstances where the arrangement or transaction is entered into primarily as a method of

raising Financial Indebtedness or of financing the acquisition of an asset.

(c)

Paragraphs (a) and (b) above do not apply to any Permitted Security.

22.12

Disposals

(a)

No Borrower shall enter into a single transaction or a series of transactions (whether related or

not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset

(including without limitation any Ship, its Earnings or its Insurances).

(b)

The Parent Guarantor shall not enter into a single transaction or a series of transactions (whether

related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose

all or substantially all of its assets.

(c)

Paragraph (a) above does not apply to any Charter as all Charters are subject to Clause 24.17

(

Restrictions on chartering, appointment of managers etc.

).

22.13

Merger

(a)

No Borrower will enter into any amalgamation, demerger, merger, consolidation or corporate

reconstruction.

(b)

The Parent Guarantor will not enter into any amalgamation, demerger, merger, consolidation or

corporate reconstruction, unless after such amalgamation, demerger, merger, consolidation or

corporate reconstruction (i) the Parent Guarantor remains the surviving entity, (ii) the financial

covenants set out in Clause 21 (

Financial Covenants

) are complied with and (iii) no Default has

occurred which is continuing at the relevant time. 

22.14

Change of business

(a)

The Parent Guarantor shall: 

(i)

procure that no substantial change is made to the general nature of the business of the

Parent Guarantor or the Group from that carried on at the date of this Agreement; and

(ii)

maintain its listing on the New York Stock Exchange or any other stock exchange

acceptable to the Lender.

(b)

No Borrower shall engage in any business other than the ownership and operation of its Ship.

(c)

No Borrower shall sell all or a substantial part of its business (to the effect that turnover and

income will be moved outside the direct ownership of that Borrower). 

22.15

Financial Indebtedness

(a)

No Obligor shall or permit to be outstanding any Financial Indebtedness except Permitted Financial

Indebtedness.

(b)

Each Obligor shall procure that each shareholder loan and each intercompany loan shall be fully

subordinated to any and all obligations of the Obligors and the rights of the Lender under the

Finance Documents in accordance with the terms of the relevant Subordination Agreement.

22.16

Expenditure

No Borrower shall incur any expenditure or liabilities, except for expenditure and liabilities

reasonably incurred in the ordinary course of owning, operating, maintaining and repairing its

Ship.

22.17

Share capital

No Borrower shall:

(a)

purchase, cancel or redeem any of its issued shares;

(b)

increase or reduce the number of shares it is authorised to issue; 

(c)

issue any further shares except to the Parent Guarantor and provided such new shares are made

subject to the terms of the Shares Security applicable to that Borrower immediately upon the issue

of such new shares in a manner satisfactory to the Lender and the terms of that Shares Security

are complied with;

(d)

appoint any further director, officer or secretary of that Borrower (unless the provisions of the

Shares Security applicable to that Borrower are complied with).

22.18

Dividends

An Obligor may:

(a)

declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid

dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share

capital (or any class of its share capital) (each a "

Distrubtion

");

(b)

repay or distribute any dividend or share premium reserve;

(c)

pay any management, advisory or other fee to or to the order of any of its shareholders; or 

(d)

redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so,

provided that

:

(i)

no Event of Default has occurred or would occur as a result of such Distribution; 

(ii)

the minimum Security Cover Ratio required under Clause 25.1 (

Minimum required security

cover

) is complied with; and

(iii)

 the Parent Guarantor is in compliance with the provisions in clause 21 (

Financial

covenants

).

22.19

Other transactions

(a)

No Borrower shall:

(i)

be the creditor in respect of any loan or any form of credit to any person other than

another Transaction Obligor and where such loan or form of credit is Permitted Financial

Indebtedness;

(ii)

give or allow to be outstanding any guarantee or indemnity to or for the benefit of any

person in respect of any obligation of any other person or enter into any document under

which that Transaction Obligor assumes any liability of any other person other than any

guarantee or indemnity given under the Finance Documents; 

(iii)

enter into any material agreement other than:

(A)

the Transaction Documents; and

(B)

any other agreement expressly allowed under any other term of this Agreement; 

(iv)

acquire any shares or other securities other than US or UK Treasury bills and certificates

of deposit issued by major North American or European banks;

(v)

amend or terminate any material agreement to which it is a party; or

(vi)

amend its constitutional documents.

(b)

No Obligor shall enter into any transaction on terms which are, in any respect, less favourable to

that Transaction Obligor than those which it could obtain in a bargain made at arms' length.

(c)

No Borrower shall acquire any Subsidiaries or make or participate in any investment or in any joint

venture.

22.20

Unlawfulness, invalidity and ranking; Security imperilled

No Obligor shall, and the Obligors shall procure that no other Transaction Obligor will, (and the

Parent Guarantor shall procure that no other member of the Group will) do (or fail to do) or cause

or permit another person to do (or omit to do) anything which is likely to:

(a)

make it unlawful or contrary to Sanctions for a Transaction Obligor to perform any of its obligations

under the Transaction Documents;

(b)

cause any obligation of a Transaction Obligor under the Transaction Documents to cease to be

legal, valid, binding or enforceable;

(c)

cause any Transaction Document to cease to be in full force and effect;

(d)

cause any Transaction Security to rank after, or lose its priority to, any other Security; and

(e)

imperil or jeopardise the Transaction Security.

22.21

Sanctions undertakings

(a)

No Transaction Obligor, nor any of their respective directors, officers or employees or, to the

knowledge of any Transaction Obligor, any Affiliate of any Transaction Obligor, will (and the

Obligors shall procure that no other member of the Group will): 

(i)

directly or indirectly, make any proceeds of the Loans available to, or for the benefit of, a

Prohibited Person or permit or authorise any such proceeds to be applied directly or

indirectly in a manner that could result in the Lender being in violation of Sanctions or that

would be contrary to Sanctions or otherwise for a purpose prohibited by Sanctions;

(ii)

engage in any activities, business or transactions that could result in it or any other

member of the Group or the Lender being designated as a Prohibited Person; and/or

(iii)

directly or indirectly fund all or part of any payment or repayment under the Facility out

of proceeds derived from transactions which would be prohibited by Sanctions or by

sanctions policies of the Lender or which would otherwise cause the Lender or other

national under the jurisdiction of a Sanctions Authority to be in breach of Sanctions.

(b)

Each Transaction Obligor shall (and the Obligors shall procure that each other member of the

Group will) comply in all respects with applicable Sanctions.

(c)

The Transaction Obligors shall institute and maintain policies and procedures designed to promote

and achieve compliance by each member of the Group with applicable Sanctions.

22.22

Further assurance

(a)

Each Obligor shall, and shall procure that each other Transaction Obligor will, (and the Parent

Guarantor shall procure that each member of the Group will) promptly, and in any event within

the time period specified by the Lender do all such acts (including procuring or arranging any

registration, notarisation or authentication or the giving of any notice) or execute or procure

execution of all such documents (including assignments, transfers, mortgages, charges, notices,

instructions, acknowledgments, proxies and powers of attorney), as the Lender may specify (and

in such form as the Lender may require in favour of the Lender or its nominee(s)):

(i)

to create, perfect, vest in favour of the Lender or protect the priority of the Security or any

right of any kind created or intended to be created under or evidenced by the Finance

Documents (which may include the execution of a mortgage, charge, assignment or other

Security over all or any of the assets which are, or are intended to be, the subject of the

Transaction Security) or for the exercise of any rights, powers and remedies of the Lender

or any Receiver or Delegate provided by or pursuant to the Finance Documents or by law;

(ii)

to confer on the Lender Security over any property and assets of that Transaction Obligor

located in any jurisdiction equivalent or similar to the Security intended to be conferred

by or pursuant to the Finance Documents;

(iii)

to facilitate or expedite the realisation and/or sale of, the transfer of title to or the grant

of, any interest in or right relating to the assets which are, or are intended to be, the

subject of the Transaction Security or to exercise any power specified in any Finance

Document in respect of which the Security has become enforceable; and/or

(iv)

to enable or assist the Lender to enter into any transaction to commence, defend or

conduct any proceedings and/or to take any other action relating to any item of the

Security Property.

(b)

Each Obligor shall, and shall procure that each other Transaction Obligor will, (and the Parent

Guarantor shall procure that each member of the Group will) take all such action as is available to

it (including making all filings and registrations) as may be necessary for the purpose of the

creation, perfection, protection or maintenance of any Security conferred or intended to be

conferred on the Lender by or pursuant to the Finance Documents.

(c)

At the same time as an Obligor delivers to the Lender any document executed by itself or another

Transaction Obligor pursuant to this Clause 22.22 (

Further assurance

), that Obligor shall deliver,

or shall procure that such other Transaction Obligor will deliver, to the Lender a certificate signed

by two of that Obligor's or Transaction Obligor's directors or officers which shall:

(i)

set out the text of a resolution of that Obligor's or Transaction Obligor's directors

specifically authorising the execution of the document specified by the Lender; and

(ii)

state that either the resolution was duly passed at a meeting of the directors validly

convened and held, throughout which a quorum of directors entitled to vote on the

resolution was present, or that the resolution has been signed by all the directors or

officers and is valid under that Obligor's or Transaction Obligor's articles of association or

other constitutional documents.

22.23

Anti-corruption law

(a)

No Borrower shall directly or indirectly use the proceeds of the Loan for any purpose which would

breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other

similar legislation in other jurisdictions.

(b)

Each Obligor shall, and shall procure that each Transaction Obligor and each of their respective

Subsidiaries, directors or officers, beneficial owners, affiliates, agents or employees shall:

(i)

conduct its business and operations at all times in compliance with Anti-Money Laundering

Laws;

(ii)

in the case of the Borrowers, not use the transaction proceeds for any purpose that would

breach Anti-Money Laundering Laws; and

(iii)

maintain policies and procedures designed to promote and achieve compliance with Anti-

Money Laundering Laws.

22.24

Change in Financial Year

No Obligor shall change its Financial Year end date.

22.25

No change of domicile 

No Obligor shall change its Original Jurisdiction or its place of domicile.

23

INSURANCE UNDERTAKINGS

23.1

General

The undertakings in this Clause 23 (

Insurance Undertakings

) remain in force from the date of this

Agreement throughout the rest of the Security Period except as the Lender may otherwise permit.

23.2

Maintenance of obligatory insurances

Each Borrower shall keep the Ship owned by it insured at its expense against:

(a)

hull and machinery risks (excluding hull interest and excess risks);

(b)

freight interest and hull interest and any other usual marine risks such as increased value and

excess risks;

(c)

war risks (including the London Blocking and Trapping addendum or similar arrangement and acts

of terrorism and piracy);

(d)

protection and indemnity risks (including liability for oil pollution and excess war risk protection

and indemnity cover); and

(e)

any other risks against which the relevant Borrower is required to insure in light of the relevant

Ship's trading pattern and as are from time to time required by any public body, the relevant

Approved Classification Society or similar entity having authority over that Borrower, that Ship or

the relevant Approved Managers and on the basis of usual insurances that a prudent owner would

take out in the ordinary course of business.

23.3

Terms of obligatory insurances

Each Borrower shall effect such insurances:

(a)

in dollars;

(b)

in the case of hull and machinery risks (but excluding hull interest and excess risks) in an amount

on an agreed value basis equal to 80 per cent. of the Market Value of its Ship;

(c)

in the case of hull and machinery risks, plus freight interest and hull interest and any other usual

marine risks such as increased value and excess risks, in an amount on an agreed value basis at

least equal to the greater of:

(i)

120 per cent. of the outstanding amount under the relevant Tranche relating to its Ship;

and

(ii)

the Market Value of that Ship;

(d)

in the case of war risks (including the London Blocking and Trapping addendum or similar

arrangement and acts of terrorism and piracy), in an amount on an agreed value basis of at least

equal to the greater of:

(i)

120 per cent. of the outstanding amount under the relevant Tranche relating to its Ship;

and

(ii)

the Market Value of that Ship;

(e)

in the case of oil pollution liability risks, for an aggregate amount equal to the highest level of cover

from time to time available under basic protection and indemnity club entry and in the

international marine insurance market (minimum $1,000,000,000);

(f)

in the case of protection and indemnity risks, in respect of the full tonnage of its Ship;

(g)

on approved terms (based on Nordic Marine Insurance Plan, Institute Time Clauses Terms or other

recognised marine insurance terms and in respect of the protection and indemnity risks, on

standard Club Rules); and

(h)

through Approved Brokers and with approved insurance companies and/or underwriters with a

minimum having A- (S&P) or A3 (Moody's) rating or, in the case of war risks and protection and

indemnity risks, in approved war risks and protection and indemnity risks associations.

23.4

Further protections for the Lender

In addition to the terms set out in Clause 23.3 (

Terms of obligatory insurances

), each Borrower

shall procure that the obligatory insurances effected by it shall:

(a)

subject always to paragraph (b), name that Borrower as the sole named insured unless the interest

of every other named insured or co-insured is included on the policies (e.g. as owner, manager,

crew manager, holding company etc.) and the interest of such other named insured or co-insured

is limited:

(i)

in respect of any obligatory insurances for hull and machinery and war risks;

(A)

to any provable out-of-pocket expenses that it has incurred and which form part

of any recoverable claim on underwriters; and

(B)

to any third party liability claims where cover for such claims is provided by the

policy (and then only in respect of discharge of any claims made against it); and

(ii)

in respect of any obligatory insurances for protection and indemnity risks, to any

recoveries it is entitled to make by way of reimbursement following discharge of any third

party liability claims made specifically against it;

and every other named insured has undertaken in writing to the Lender (in such form as it requires)

that any deductible shall be apportioned between that Borrower and every other named insured

in proportion to the gross claims made or paid by each of them and that it shall do all things

necessary and provide all documents, evidence and information to enable the Lender to collect or

recover any moneys which at any time become payable in respect of the obligatory insurances;

(b)

whenever the Lender requires, name (or be amended to name) the Lender as additional named

insured for its rights and interests, warranted no operational interest and with full waiver of rights

of subrogation against the Lender, but without the Lender being liable to pay (but having the right

to pay) premiums, calls or other assessments in respect of such insurance;

(c)

name the Lender as loss payee with such directions for payment as the Lender may specify;

(d)

provide that all payments by or on behalf of the insurers under the obligatory insurances to the

Lender shall be made without set off, counterclaim or deductions or condition whatsoever and

include waiver of lien for any fleet premiums;

(e)

provide that the obligatory insurances shall be primary without right of contribution from other

insurances which may be carried by the Lender; and

(f)

provide that the Lender may make proof of loss if that Borrower fails to do so.

23.5

Renewal of obligatory insurances

Each Borrower shall:

(a)

at least 21 days before the expiry of any obligatory insurance effected by it:

(i)

notify the Lender of the Approved Brokers (or other insurers) and any protection and

indemnity or war risks association through or with which it proposes to renew that

obligatory insurance and of the proposed terms of renewal; and

(ii)

obtain the Lender's approval to the matters referred to in sub-paragraph (i) above;

(b)

at least 14 days before the expiry of any obligatory insurance, renew that obligatory insurance in

accordance with the Lender's approval pursuant to paragraph (a) above; and

(c)

procure that the Approved Brokers and/or the approved war risks and protection and indemnity

associations with which such a renewal is effected shall promptly after the renewal notify the

Lender in writing of the terms and conditions of the renewal.

23.6

Copies of policies; letters of undertaking

Each Borrower shall ensure that the Approved Brokers provide the Lender with:

(a)

pro forma

 copies of all policies relating to the obligatory insurances which they are to effect or

renew; and

(b)

a letter or letters of undertaking in a form required by the Lender and including undertakings by

the Approved Brokers that:

(i)

they will have endorsed on each policy, immediately upon issue, a loss payable clause and

a notice of assignment complying with the provisions of Clause 23.4 (

Further protections

for the Lender

);

(ii)

they will hold such policies, and the benefit of such insurances, to the order of the Lender

in accordance with such loss payable clause;

(iii)

they will advise the Lender immediately of any material change to the terms of the

obligatory insurances;

(iv)

they will, if they have not received notice of renewal instructions from the relevant

Borrower or its agents, notify the Lender not less than 14 days before the expiry of the

obligatory insurances;

(v)

if they receive instructions to renew the obligatory insurances, they will promptly notify

the Lender of the terms of the instructions;

(vi)

they will not set off against any sum recoverable in respect of a claim relating to the Ship

owned by that Borrower under such obligatory insurances any premiums or other

amounts due to them or any other person whether in respect of that Ship or otherwise,

they waive any lien on the policies, or any sums received under them, which they might

have in respect of such premiums or other amounts and they will not cancel such

obligatory insurances by reason of non-payment of such premiums or other amounts; and

(vii)

they will arrange for a separate policy to be issued in respect of the Ship owned by that

Borrower forthwith upon being so requested by the Lender.

23.7

Copies of certificates of entry

Each Borrower shall ensure that any protection and indemnity and/or war risks associations in

which the Ship owned by it is entered provide the Lender with:

(a)

a certified copy of the certificate of entry for that Ship;

(b)

a letter or letters of undertaking in such form as may be required by the Lender; and

(c)

a certified copy of each certificate of financial responsibility for pollution by oil or other

Environmentally Sensitive Material issued by the relevant certifying authority in relation to that

Ship.

23.8

Deposit of original policies

Each Borrower shall ensure that all policies relating to obligatory insurances effected by it are

deposited with the Approved Brokers through which the insurances are effected or renewed.

23.9

Payment of premiums

Each Borrower shall punctually pay all premiums or other sums payable in respect of the obligatory

insurances effected by it and produce all relevant receipts when so required by the Lender.

23.10

Guarantees

Each Borrower shall ensure that any guarantees required by a protection and indemnity or war

risks association are promptly issued and remain in full force and effect.

23.11

Compliance with terms of insurances

(a)

No Borrower shall do or omit to do (nor permit to be done or not to be done) any act or thing

which would or might render any obligatory insurance invalid, void, voidable or unenforceable or

render any sum payable under an obligatory insurance repayable in whole or in part.

(b)

Without limiting paragraph (a) above, each Borrower shall:

(i)

take all necessary action and comply with all requirements which may from time to time

be applicable to the obligatory insurances, and (without limiting the obligation contained

in sub-paragraph (iii) of paragraph (b) of Clause 23.6 (

Copies of policies; letters of

undertaking

)) ensure that the obligatory insurances are not made subject to any exclusions

or qualifications to which the Lender has not given its prior approval;

(ii)

not make any changes relating to the classification or classification society or manager or

operator of the Ship owned by it unless they are approved by the underwriters of the

obligatory insurances;

(iii)

make (and promptly supply copies to the Lender of) all quarterly or other voyage

declarations which may be required by the protection and indemnity risks association in

which the Ship owned by it is entered to maintain cover for trading to the United States of

America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act

1990 or any other applicable legislation); and

(iv)

not employ the Ship owned by it, nor allow it to be employed, otherwise than in

conformity with the terms and conditions of the obligatory insurances, without first

obtaining the consent of the insurers and complying with any requirements (as to extra

premium or otherwise) which the insurers specify.

23.12

Alteration to terms of insurances

No Borrower shall make or agree to any alteration to the terms of any obligatory insurance or

waive any right relating to any obligatory insurance.

23.13

Settlement of claims

Each Borrower shall:

(a)

not settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for

a Major Casualty; and

(b)

do all things necessary and provide all documents, evidence and information to enable the Lender

to collect or recover any moneys which at any time become payable in respect of the obligatory

insurances.

23.14

Provision of copies of communications

Each Borrower shall provide the Lender, at the time of each such communication, with copies of

all written communications between that Borrower and:

(a)

the Approved Brokers;

(b)

the approved protection and indemnity and/or war risks associations; and

(c)

the approved insurance companies and/or underwriters,

which relate directly or indirectly to:

(i)

that Borrower's obligations relating to the obligatory insurances including, without

limitation, all requisite declarations and payments of additional premiums or calls; and

(ii)

any credit arrangements made between that Borrower and any of the persons referred to

in paragraphs (a) or (b) above relating wholly or partly to the effecting or maintenance of

the obligatory insurances.

23.15

Provision of information

Each Borrower shall promptly provide the Lender (or any persons which it may designate) with

any information which the Lender (or any such designated person) requests for the purpose of:

(a)

obtaining or preparing any report from an independent marine insurance broker as to the

adequacy of the obligatory insurances effected or proposed to be effected; and/or

(b)

effecting, maintaining or renewing any such insurances as are referred to in Clause 23.16

(

Mortgagee's interest and additional perils insurances

) or dealing with or considering any matters

relating to any such insurances,

and the Borrowers shall, forthwith upon demand, indemnify the Lender in respect of all fees and

other expenses incurred by or for the account of the Lender in connection with any such report as

is referred to in paragraph (a) above.

23.16

Mortgagee's interest and additional perils insurances

(a)

The Lender shall be entitled from time to time to effect, maintain and renew a mortgagee's interest

marine insurance and a mortgagee's interest additional perils insurance in respect of each Ship,

each in an amount no greater than 110 per cent. of the relevant Tranche, on such terms, through

such insurers and generally in such manner as the Lender may from time to time consider

appropriate.

(b)

The Borrowers shall upon demand fully indemnify the Lender in respect of all premiums and other

expenses which are incurred in connection with or with a view to effecting, maintaining or

renewing any insurance referred to in paragraph

(a) above or dealing with, or considering, any

matter arising out of any such insurance.

(c)

The Lender shall be entitled to disclose all necessary information for the purpose of effecting the

insurance cover under paragraph (a) above, including without limitation, the name of the relevant

Ship, the IMO number of the relevant Ship and the outstanding amount of the Secured Liabilities.

23.17

Review of insurance requirements

The Lender shall be entitled to review the requirements of this Clause 23 (

Insurance Undertakings

)

from time to time in order to take account of any changes in circumstances after the date of this

Agreement which are, in the opinion of the Lender, significant and capable of affecting the relevant

Borrower or its Ship and its or their insurance (including, without limitation, changes in the

availability or the cost of insurance coverage or the risks to which that Borrower may be subject).

23.18

Modification of insurance requirements

The Lender shall notify the relevant Borrower of any proposed modification under Clause 23.17

(

Review of insurance requirements

) to the requirements of this Clause 23 (

Insurance Undertakings

)

which the Lender considers appropriate in the circumstances, and such modification shall take

effect on and from the date it is notified in writing to the relevant Borrower as an amendment to

this Clause 23 (

Insurance Undertakings

) and shall bind the Borrowers accordingly.

24

GENERAL SHIP UNDERTAKINGS

24.1

General

The undertakings in this Clause 24 (

General Ship Undertakings

) remain in force on and from the

date of this Agreement and throughout the rest of the Security Period except as the Lender may

otherwise permit.

24.2

Ships' names and registration

Each Borrower shall, in respect of the Ship owned by it:

(a)

keep that Ship registered in its name under the Approved Flag from time to time at its port of

registration;

(b)

not do or allow to be done anything as a result of which such registration might be suspended,

cancelled or imperilled;

(c)

not enter into any dual flagging arrangement in respect of that Ship; and

(d)

not change the name of that Ship,

provided that

 any agreed change of name or flag of a Ship shall be subject to:

(i)

that Ship remaining subject to Security securing the Secured Liabilities created by a first

priority or preferred ship mortgage on that Ship and, if appropriate, a first priority deed of

covenant collateral to that mortgage (or equivalent first priority Security) on substantially

the same terms as the Mortgage on that Ship and on such other terms and in such other

form as the Lender shall approve or require; 

(ii)

the execution of such other documentation amending and supplementing the Finance

Documents as the Lender shall approve or require; and

(iii)

in the case of a change of flag of a Ship, payment of the reflagging fee set out in Clause

11.3 (

Reflagging fee

).

24.3

Repair and classification

(a)

Each Borrower shall keep the Ship owned by it in a good and safe condition and state of repair:

(i)

consistent with first class ship ownership and management practice;

(ii)

so as to ensure that that Ship's Market Value is not materially reduced; and

(iii)

so as to maintain the Approved Classification free of material overdue recommendations

and conditions or adverse notations.

(b)

Subject to Clause 4.5 (

Conditions subsequent

), no Borrower may change the Approved

Classification Society in respect of its Ship. 

(c)

Notwithstanding that each of Ship H and Ship I are classified with two Approved Classification

Societies, the rules of Det Norske Veritas shall apply in full extent to those Ships.

24.4

Classification society undertaking

Each Borrower shall, in respect of the Ship owned by it, instruct the relevant Approved

Classification Society (and procure that the Approved Classification Society undertakes with the

Lender):

(a)

to send to the Lender, following receipt of a written request from the Lender, certified true copies

of all original class records held by the Approved Classification Society in relation to that Ship;

(b)

to allow the Lender (or its agents), at any time and from time to time, to inspect the original class

and related records of that Borrower and that Ship at the offices of the Approved Classification

Society and to take copies of them;

(c)

to notify the Lender immediately in writing if the Approved Classification Society:

(i)

receives notification from that Borrower or any person that that Ship's Approved

Classification Society is to be changed; or

(ii)

becomes aware of any facts or matters which may result in or have resulted in a change,

suspension, discontinuance, withdrawal or expiry of that Ship's class under the rules or

terms and conditions of that Borrower or that Ship's membership of the Approved

Classification Society;

(d)

following receipt of a written request from the Lender:

(i)

to confirm that that Borrower is not in default of any of its contractual obligations or

liabilities to the Approved Classification Society, including confirmation that it has paid in

full all fees or other charges due and payable to the Approved Classification Society; or

(ii)

to confirm that that Borrower is in default of any of its contractual obligations or liabilities

to the Approved Classification Society, to specify to the Lender in reasonable detail the

facts and circumstances of such default, the consequences of such default, and any

remedy period agreed or allowed by the Approved Classification Society.

24.5

Modifications

No Borrower shall make any modification or repairs to, or replacement of, any Ship or equipment

installed on it which would or might materially alter the structure, type or performance

characteristics of that Ship or materially reduce its value.

24.6

Removal and installation of parts

(a)

Subject to paragraph (b) below, no Borrower shall remove any material part of any Ship, or any

item of equipment installed on any Ship unless:

(i)

the part or item so removed is forthwith replaced by a suitable part or item which is in the

same condition as or better condition than the part or item removed;

(ii)

the replacement part or item is free from any Security in favour of any person other than

the Lender; and

(iii)

the replacement part or item becomes, on installation on that Ship, the property of that

Borrower and subject to the security constituted by the Mortgage on that Ship.

(b)

A Borrower may install equipment owned by a third party if the equipment can be removed

without any risk of damage to the Ship owned by that Borrower.

24.7

Surveys

Each Borrower shall submit the Ship owned by it regularly to all periodic or other surveys which

may be required for classification purposes and, if so required by the Lender, provide the Lender,

with copies of all survey reports.

24.8

Inspection

(a)

Each Borrower shall permit the Lender (acting through surveyors or other persons appointed by it

for that purpose provided that such surveyor shall not be required to execute any letter of

indemnity) to board the Ship owned by it to inspect its condition or to satisfy themselves about

proposed or executed repairs and shall afford all proper facilities for such inspections (i) if no Event

of Default has occurred at all reasonable times, without interfering in the ordinary trading of that

Ship and with reasonable prior notice and (ii) following the occurrence of an Event of Default at all

times.

(b)

So long as no Event of Default shall have occurred, the Borrowers shall not be obliged to pay any

fees and expenses in respect of more than one inspection of each Ship in any calendar year.

24.9

Access to books and records

Each Borrower shall permit (and shall procure that any Approved Manager or other operator shall

permit) the Lender, at the request of the Lender, to have access to the class records of its Ship.

24.10

Prevention of and release from arrest

(a)

Each Borrower shall, in respect of the Ship owned by it, promptly discharge:

(i)

all liabilities which give or may give rise to maritime or possessory liens on or claims

enforceable against that Ship, its Earnings or its Insurances;

(ii)

all Taxes, dues and other amounts charged in respect of that Ship, its Earnings or its

Insurances; and

(iii)

all other outgoings whatsoever in respect of that Ship, its Earnings or its Insurances.

(b)

Each Borrower shall, immediately upon receiving notice of the arrest of the Ship owned by it or of

its detention in exercise or purported exercise of any lien or claim, take all steps necessary to

procure its release by providing bail or otherwise as the circumstances may require.

24.11

Compliance with laws etc.

Each Borrower shall:

(a)

comply, or procure compliance with all laws or regulations:

(i)

relating to its business generally; and

(ii)

relating to the Ship owned by it, its ownership, employment, operation, management and

registration,

including, but not limited to:

(A)

the ISM Code;

(B)

the ISPS Code;

(C)

all Environmental Laws;

(D)

all Sanctions; and 

(E)

the laws of the Approved Flag; and

(b)

obtain, comply with and do all that is necessary to maintain in full force and effect any

Environmental Approvals.

24.12

ISPS Code

Without limiting paragraph (a) of Clause 24.11 (

Compliance with laws etc.

), each Borrower shall:

(a)

procure that the Ship owned by it and the company responsible for that Ship's compliance with

the ISPS Code comply with the ISPS Code;

(b)

maintain an ISSC for that Ship; and

(c)

notify the Lender immediately in writing of any actual or threatened withdrawal, suspension,

cancellation or modification of the ISSC.

24.13

Sanctions 

(a)

Each Borrower undertakes that it will prevent the Ships from being used, directly or indirectly: 

(i)

by, or for the benefit of, any Prohibited Person or in trading to or from a Sanctioned

Country;

(ii)

in any trade which could expose a Ship, the Lender, any Approved Manager, a Ship's crew

or a Ship's insurers to enforcement proceedings arising from Sanctions or any other

consequences whatsoever arising from Sanctions; and/or

(iii)

in any trade which would trigger the operation of any sanctions limitation or exclusion

clause (or similar) in the Insurances, irrespective of whether a Ship is subject to a bareboat

charterparty.

(b)

Each Borrower shall procure that each charterparty in respect of its Ship shall include standard

clauses on "Sanctions and Designated Entities" included in BIMCO's standard documentation or

any equivalent language.

24.14

Illegal trading and trading in war zones or excluded areas

(a)

No Borrower shall cause or permit any Ship to enter or trade to any zone which is declared a war

zone by any government or by that Ship's war risks insurers or which is otherwise excluded from

the scope of coverage of the obligatory insurances unless:

(i)

the prior written consent of the Lender has been given; and

(ii)

that Borrower has (at its expense) effected any special, additional or modified insurance

cover which the Lender may require.

(b)

No Borrower shall cause or permit its Ship to enter or trade in any manner contrary to law or in

any area which is not covered by that Ship's Insurances.

24.15

Provision of information

Without prejudice to Clause 20.6 (

Information: miscellaneous

) each Borrower shall, in respect of

the Ship owned by it, promptly provide the Lender with any information which it requests

regarding:

(a)

that Ship, its employment, position and engagements;

(b)

the Earnings and payments and amounts due to its master and crew;

(c)

any expenditure incurred, or likely to be incurred, in connection with the operation, maintenance

or repair of that Ship and any payments made by it in respect of that Ship;

(d)

any towages and salvages; and

(e)

its compliance, the Approved Manager's compliance and the compliance of that Ship with the ISM

Code and the ISPS Code,

and, upon the Lender's request, promptly provide copies of any current Charter relating to that

Ship, of any current guarantee of any such Charter, the Ship's Safety Management Certificate and

any relevant Document of Compliance.

24.16

Notification of certain events

Each Borrower shall, in respect of the Ship owned by it, immediately notify the Lender by email,

confirmed forthwith by letter, of:

(a)

any casualty to that Ship which is or is likely to be or to become a Major Casualty;

(b)

any occurrence as a result of which that Ship has become or is, by the passing of time or otherwise,

likely to become a Total Loss;

(c)

any requisition of that Ship for hire;

(d)

any requirement or recommendation made in relation to that Ship by any insurer or classification

society or by any competent authority which is not immediately complied with;

(e)

any arrest or detention of that Ship or any exercise or purported exercise of any lien on that Ship

or the Earnings;

(f)

any intended dry docking of that Ship;

(g)

any Environmental Claim made against that Borrower or in connection with that Ship, or any

Environmental Incident;

(h)

any claim for breach of the ISM Code or the ISPS Code being made against that Borrower, an

Approved Manager or otherwise in connection with that Ship; 

(i)

any other matter, event or incident, actual or threatened, the effect of which will or could lead to

the ISM Code or the ISPS Code not being complied with,

(j)

any notice, or such Borrower becoming aware, of any claim, action, suit, proceeding or

investigation against any Transaction Obligor, any of its Subsidiaries or any of their respective

directors, officers, employees or agents with respect to Sanctions; or

(k)

any circumstances which could give rise to a breach of any representation or undertaking in this

Agreement, or any Event of Default, relating to Sanctions,

and each Borrower shall keep the Lender advised in writing on a regular basis and in such detail as

the Lender shall require as to that Borrower's, any such Approved Manager's or any other person's

response to any of those events or matters.

24.17

Restrictions on chartering, appointment of managers etc.

No Borrower shall, in relation to the Ship owned by it:

(a)

let that Ship on demise charter or bareboat charter for any period;

(b)

enter into any time, voyage or consecutive voyage charter in respect of that Ship (other than a

Permitted Charter) or "charter-in" any vessel;

(c)

amend, supplement or terminate a Management Agreement;

(d)

appoint a manager of that Ship other than its Approved Commercial Manager and its Approved

Technical Manager or agree to any alteration to the terms of an Approved Manager's

appointment;

(e)

de activate or lay up (either cold, lukewarm or warm) that Ship; or

(f)

put that Ship into the possession of any person for the purpose of work being done upon it in an

amount exceeding or likely to exceed $1,000,000 (or the equivalent in any other currency) unless

that person has first given to the Lender and in terms satisfactory to it a written undertaking not

to exercise any lien on that Ship or its Earnings for the cost of such work or for any other reason.

24.18

Notice of Mortgage

Each Borrower shall keep the relevant Mortgage registered against the Ship owned by it as a valid

first priority or, as the case may be, preferred mortgage, carry on board that Ship a certified copy

of the relevant Mortgage and place and maintain in a conspicuous place in the navigation room

and the master's cabin of that Ship a framed printed notice stating that that Ship is mortgaged by

that Borrower to the Lender.

24.19

Sharing of Earnings

No Borrower shall enter into any agreement or arrangement for the sharing of any Earnings

provided that if a Borrower enters into pool arrangements (with the Lender's prior consent), it will

provide the Lender with (a) a copy of the relevant pool agreement and on-hire certificate and (b)

an original subordination undertaking executed by the relevant pool manager in such form as the

Lender may require (together with evidence of authority of such pool manager). 

24.20

Poseidon Principles

Each Borrower shall, upon the request of the Lender and at the cost of the Borrowers on or before

31st July in each calendar year, supply or procure the supply to the Lender of all information

necessary in order for the Lender to comply with its obligations under the Poseidon Principles in

respect of the preceding year, including, without limitation, all ship fuel oil consumption data

required to be collected and reported in accordance with Regulation 22A of Annex VI and any

Statement of Compliance, in each case relating to the Ship owned by it for the preceding calendar

year provided always that, for the avoidance of doubt, such information shall be "Confidential

Information" for the purposes of Clause 42 (

Confidential Information

) but the Borrowers

acknowledge that, in accordance with the Poseidon Principles, such information will form part of

the information published regarding the Lender's portfolio climate alignment.

24.21

Inventory of Hazardous Materials

Each Borrower shall maintain a valid and up to date Inventory of Hazardous Materials in respect

of the Ship owned by it. 

24.22

Charterparty Assignment

If any Borrower enters into an Assignable Charter, that Borrower shall execute in favour of the

Lender a Charterparty Assignment in respect of that Assignable Charter and shall: 

(a)

serve notice of that Charterparty Assignment on the relevant charterer and procure that that

charterer acknowledges such notice in such form as the Lender may approve or require; and 

(b)

deliver to the Lender such other documents equivalent to those referred to at paragraphs 1.2, 1.3,

1.4, 1.5, 2.3, 4.1, 6.2 and 6.3 of Part A of Schedule 2 (

Conditions Precedent

) as the Lender may

require.

24.23

Sustainable and socially responsible dismantling of a Ship

(a)

Each Borrower shall institute and maintain policies and procedures to ensure that its Ship or, as

the case may be, any other vessel previously financed by the Lender shall be dismantled, scrapped

or, as the case may be, recycled as follows:

(i)

in the case of it being EU flagged and to the extent applicable to its Ship or, as the case

may be, the relevant vessel, be recycled at an approved yard under the EU Ship Recycling

Regulation; and

(ii)

in the case of it being non-EU flagged and to the extent applicable to its Ship or, as the

case may be, the relevant vessel, be recycled at a yard certified (by a classification society

acceptable to the Lender and which is a member of IACS) to operate under The Hong Kong

International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009

and/or the EU Ship Recycling Regulation,

Provided that

 its Ship or, as the case may be, the relevant vessel is, at the time of such dismantling,

scrapping or recycling, owned by any member of the Group or any intermediary to which the

ownership has been transferred for the purposes of dismantling, scrapping or recycling.

(b)

Each Borrower shall institute and maintain safe, sustainable, socially and environmentally

responsible policies and procedures with respect to dismantling of its Ship.

24.24

Notification of compliance

Each Borrower shall promptly provide the Lender from time to time with evidence (in such form

as the Lender requires) that it is complying with this Clause 24 (

General Ship Undertakings

).

25

SECURITY COVER

25.1

Minimum required security cover

Clause 25.2 (

Provision of additional security; prepayment

) applies if the Lender notifies the

Borrowers that the Security Cover Ratio is below 125 per cent.

25.2

Provision of additional security; prepayment

(a)

If the Lender serves a notice on the Borrowers under Clause 25.1 (

Minimum required security

cover

), the Borrowers shall, on or before the date falling 45 days after the date on which the

Lender's notice is served (the "

Prepayment Date

"), prepay such part of the Loan as shall eliminate

the shortfall.

(b)

A Borrower may, instead of making a prepayment as described in paragraph (a) above, provide, or

ensure that a third party has provided, additional security which, in the opinion of the Lender:

(i)

has a net realisable value at least equal to the shortfall; and

(ii)

is documented in such terms as the Lender may approve or require,

before the Prepayment Date; and conditional upon such security being provided in such manner,

it shall satisfy such prepayment obligation.

25.3

Value of additional vessel security

The net realisable value of any additional security which is provided under Clause 25.2 (

Provision

of additional security; prepayment

) which constitutes a first preferred or first priority mortgage

over a vessel shall be the Market Value of the vessel concerned.

25.4

Valuations binding

Any valuation under this Clause 25 (

Security Cover

) shall be binding and conclusive as regards each

Borrower.

25.5

Provision of information

(a)

Each Borrower shall promptly provide the Lender and any shipbroker acting under this Clause 25

(

Security Cover

) with any information which the Lender or the shipbroker may request for the

purposes of the valuation.

(b)

If a Borrower fails to provide the information referred to in paragraph (a) above by the date

specified in the request, the valuation may be made on any basis and assumptions which the

shipbroker or the Lender considers prudent.

25.6

Prepayment mechanism

Any prepayment pursuant to Clause 25.2 (

Provision of additional security; prepayment

) shall be

made in accordance with the relevant provisions of Clause 7 (

Prepayment and Cancellation

) and

shall be applied pro rata towards prepayment of all Tranches and within each Tranche it will reduce

pro rata each Repayment Instalment falling after that prepayment and, if applicable, the Balloon

Instalment under that Tranche.

25.7

Provision of valuations

(a)

The Borrowers shall provide the Lender with two valuations of each Ship and any other vessel over

which additional Security has been created in accordance with Clause 25.2 (

Provision of additional

security; prepayment

), to enable the Lender to determine the Market Value of that Ship or any

other vessel.

(b)

The valuations referred to in this Clause 25.7 (

Provision of valuations

) are to be obtained:

(i)

not more than 30 days prior to each Utilisation Date as required pursuant to paragraph

6.1 of Part A of Schedule 2 (

Conditions Precedent

);

(ii)

on two occasions in each year, on 30 June and 31 December

Provided that

 in respect of

the Market Value of the Ships which will be tested in the second quarter in each Financial

Year, the Market Value shall be determined based on one valuation; and

(iii)

subject to paragraph (c) below, at any other time as the Lender shall deem necessary.

(c)

The valuations referred to in paragraph (b) of this Clause 25.7 (

Provision of valuations

) shall be at

the Borrowers' cost, but, in relation to the valuations referred to in paragraph (b)(iii) above, at the

Lender's cost, unless:

(i)

an Event of Default has occurred and is continuing; or

(ii)

the Borrowers are required to prepay the Loan or any part thereof pursuant to Clause 7.5

(

Mandatory prepayment on sale or Total Loss

); or

(iii)

the minimum Security Cover Ratio required pursuant to Clause 25.1 (

Minimum required

security cover

) is not maintained,

in which case any additional valuations will be at the Borrowers' cost.

(d)

For the sake of clarity, the Lender may test compliance with Clause 25.1 (

Minimum required

security cover

) at any time. The frequency of such testing shall neither be limited to the delivery

of a Compliance Certificate nor the delivery of valuations of the Market Value pursuant to

paragraph (a) above. 

26

EARNINGS ACCOUNTS AND APPLICATION OF EARNINGS 

26.1

Earnings Accounts

No Borrower may, without the prior consent of the Lender, maintain any bank account other than

its Earnings Account and the balance of such Earnings Account shall, unless a Default has occurred,

be freely available to the relevant Borrower.

26.2

Payment of Earnings

Each Borrower shall ensure that, subject only to the provisions of the General Assignment to which

it is a party, all the Earnings in respect of the Ship owned by it are paid in to its Earnings Account.

26.3

Location of Earnings Accounts

Each Borrower shall promptly:

(a)

comply with any requirement of the Lender as to the location or relocation of its Earnings Account; 

(b)

execute any documents which the Lender specifies to create or maintain in favour of the Lender

Security over (and/or rights of set-off, consolidation or other rights in relation to) the Earnings

Accounts; and

(c)

ensure that Account Bank shall have no right of set-off in relation to the Earnings Accounts.

27

EVENTS OF DEFAULT

27.1

General

Each of the events or circumstances set out in this Clause 27 (

Events of Default

) is an Event of

Default except for Clause 27.21 (

Acceleration

) and Clause 27.22 (

Enforcement of security

).

27.2

Non-payment

A Transaction Obligor does not pay on the due date any amount payable pursuant to a Finance

Document at the place at and in the currency in which it is expressed to be payable unless:

(a)

its failure to pay is caused by:

(i)

administrative or technical error; or

(ii)

a Disruption Event; and

(b)

payment is made within three Business Days of its due date.

27.3

Specific obligations

A breach occurs of Clause 4.4 (

Waiver of conditions precedent

), 4.5 (

Conditions subsequent

), 

Clause 19.34 (

Sanctions

), Clause 21 (

Financial Covenants

), Clause 22.10 (

Title

), Clause 22.11

(

Negative pledge

), Clause 22.20 (

Unlawfulness, invalidity and ranking; Security imperilled

), Clause

22.21 (

Sanctions undertakings

), Clause 23.2 (

Maintenance of obligatory insurances

), Clause 23.3

(

Terms of obligatory insurances

), Clause 23.5 (

Renewal of obligatory insurances

), Clause 24.2

(

Ship's name and registration

), Clause 24.3 (

Repair and classification

), Clause 24.11 (

Compliance

with laws etc.

) (insofar as that Clause relates to Sanctions), Clause 24.13 (

Sanctions

), paragraph (d)

of Clause 24.17 (

Restrictions on chartering, appointment of managers, etc

.) or, save to the extent

such breach is a failure to pay and therefore subject to Clause 27.2 (

Non-payment

), Clause 25

(

Security Cover

).

27.4

Other obligations

(a)

A Transaction Obligor does not comply with any provision of the Finance Documents (other than

those referred to in Clause 27.2 (

Non-payment

) and Clause 27.3 (

Specific obligations

)).

(b)

No Event of Default under paragraph (a) above will occur if the failure to comply is capable of

remedy and is remedied within five Business Days of the Lender giving notice to the Borrowers or

(if earlier) any Transaction Obligor becoming aware of the failure to comply.

27.5

Misrepresentation

Any representation or statement made or deemed to be made by a Transaction Obligor in the

Finance Documents or any other document delivered by or on behalf of any Transaction Obligor

under or in connection with any Finance Document is or proves to have been incorrect or

misleading when made or deemed to be made.

27.6

Cross default

(a)

Any Financial Indebtedness of a Transaction Obligor or any member of the Group is not paid when

due nor within any originally applicable grace period.

(b)

Any Financial Indebtedness of a Transaction Obligor or any member of the Group is declared to be

or otherwise becomes due and payable prior to its specified maturity as a result of an event of

default (however described).

(c)

Any commitment for any Financial Indebtedness of a Transaction Obligor or any member of the

Group is cancelled or suspended by a creditor of a Transaction Obligor or any member of the Group

as a result of an event of default (however described).

(d)

Any creditor of a Transaction Obligor or any member of the Group becomes entitled to declare

any Financial Indebtedness of a Transaction Obligor or any member of the Group due and payable

prior to its specified maturity as a result of an event of default (however described).

(e)

Any of the events described in paragraphs (a) to (d) of this Clause 27.6 (

Cross default

) occurs in

relation to the Financial Indebtedness of a Transaction Obligor or a member of the Group (in any

capacity) under any agreement with the Lender. 

(f)

No Event of Default will occur under paragraphs (a) to (d) of this Clause 27.6 (

Cross default

) in

respect of a person if the aggregate amount of the Financial Indebtedness or commitment for

Financial Indebtedness falling within paragraphs (a) to (d) above is less than (A) $500,000 in respect

of a Borrower, (B) $10,000,000 in respect of the Parent Guarantor or (C) $1,000,000 in respect of

a Transaction Obligor or

any other member of the Group (or, in each case, its equivalent in any

other currency).

27.7

Insolvency

(a)

A Transaction Obligor or a member of the Group:

(i)

is unable or admits inability to pay its debts as they fall due;

(ii)

is deemed to, or is declared to, be unable to pay its debts under applicable law;

(iii)

suspends or threatens to suspend making payments on any of its debts; or

(iv)

by reason of actual or anticipated financial difficulties, commences negotiations with one

or more of its creditors (excluding the Lender in its capacity as such) with a view to

rescheduling any of its indebtedness.

(b)

The value of the assets of a Transaction Obligor or any member of the Group is less than its

liabilities (taking into account contingent and prospective liabilities).

(c)

A moratorium is declared in respect of any indebtedness of a Transaction Obligor or any member

of the Group. If a moratorium occurs, the ending of the moratorium will not remedy any Event of

Default caused by that moratorium.

27.8

Insolvency proceedings

(a)

Any corporate action, legal proceedings or other procedure or step is taken in relation to:

(i)

the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution,

administration or reorganisation (by way of voluntary arrangement, scheme of

arrangement or otherwise) of a Transaction Obligor or any member of the Group;

(ii)

a composition, compromise, assignment or arrangement with any creditor of a

Transaction Obligor or any member of the Group;

(iii)

the appointment of a liquidator, receiver, administrator, administrative receiver,

compulsory manager or other similar officer in respect of a Transaction Obligor or any

member of the Group or any of its assets; or

(iv)

enforcement of any Security over any assets of a Transaction Obligor or any member of

the Group,

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

(b)

Paragraph (a) above shall not apply to any winding-up petition which is frivolous or vexatious and

is discharged, stayed or dismissed within 14 days of commencement.

27.9

Creditors' process

Any expropriation, attachment, sequestration, distress or execution (or any analogous process in

any jurisdiction) affects any asset or assets of a Transaction Obligor or a member of the Group

(other than an arrest or detention of a Ship referred to in Clause 27.14 (

Arrest

)).

27.10

Ownership of the Borrowers

A Borrower is not or ceases to be a wholly-owned Subsidiary of the Parent Guarantor.

27.11

Unlawfulness, invalidity and ranking

(a)

It is or becomes unlawful for a Transaction Obligor to perform any of its obligations under the

Finance Documents.

(b)

Any obligation of a Transaction Obligor under the Finance Documents is not or ceases to be legal,

valid, binding or enforceable.

(c)

Any Finance Document ceases to be in full force and effect or to be continuing or is or purports to

be determined or any Transaction Security is alleged by a party to it (other than the Lender) to be

ineffective.

(d)

Any Transaction Security proves to have ranked after, or loses its priority to, any other Security.

27.12

Security imperilled

Any Security created or intended to be created by a Finance Document is in any way imperilled or

in jeopardy.

27.13

Cessation of business

Any Transaction Obligor or any member of the Group suspends or ceases to carry on (or threatens

to suspend or cease to carry on) all or a material part of its business and in the case of a member

of the Group other than a Transaction Obligor such cessation is reasonably likely to have a Material

Adverse Effect.

27.14

Arrest

Any arrest of a Ship or its detention in the exercise or the purported exercise of any lien or claim

unless it is redelivered to the full control of the relevant Borrower within 30 days of such arrest or

detention.

27.15

Expropriation

The authority or ability of any member of the Group to conduct its business is limited or wholly or

substantially curtailed by any seizure, expropriation, nationalisation, intervention, restriction or

other action by or on behalf of any governmental, regulatory or other authority or other person in

relation to any member of the Group or any of its assets other than:

(a)

an arrest or detention of a Ship referred to in Clause 27.14 (

Arrest

); or

(b)

any Requisition.

27.16

Repudiation and rescission of agreements

A Transaction Obligor (or any other relevant party) rescinds or purports to rescind or repudiates

or purports to repudiate a Transaction Document or any of the Transaction Security or evidences

an intention to rescind or repudiate a Transaction Document or any Transaction Security or a

Transaction Document or any of the Transaction Security otherwise ceases to remain in full force

and effect for any reason.

27.17

Litigation

Any litigation, arbitration or administrative proceedings or investigations of, or before, any court,

arbitral body or agency are started or threatened , or any judgment or order of a court, arbitral

body or agency is made, in relation to any of the Transaction Documents or the transactions

contemplated in any of the Transaction Documents or against any member of the Group or its

assets which has or is reasonably likely to have a Material Adverse Effect.

27.18

Material adverse change

Any event or circumstance occurs which has or is reasonably likely to have a Material Adverse

Effect.

27.19

Audit qualification

The Parent Guarantor's auditors qualify their report on any audited annual consolidated financial

statements of the Parent Guarantor. 

27.20

Constitutional documents

An Obligor has materially amended its constitutional documents and such amendment has a

negative effect on the Lender's rights under the Finance Documents.

27.21

Acceleration

On and at any time after the occurrence of an Event of Default the Lender may by notice to the

Borrowers:

(a)

cancel the Commitment, whereupon it shall immediately be cancelled;

(b)

declare that all or part of the Loan, together with accrued interest, and all other amounts accrued

or outstanding under the Finance Documents be immediately due and payable, whereupon it shall

become immediately due and payable; and/or

(c)

declare that all or part of the Loan be payable on demand, whereupon it shall immediately become

payable on demand by the Lender,

and the Lender may serve notices under paragraphs (a), (b) and (c) above simultaneously or on

different dates and the Lender may take any action referred to in Clause 27.22 (

Enforcement of

security

) if no such notice is served or simultaneously with or at any time after the service of any

of such notice.

27.22

Enforcement of security

On and at any time after the occurrence of an Event of Default the Lender may take any action

which, as a result of the Event of Default or any notice served under Clause 27.21 (

Acceleration

),

the Lender is entitled to take under any Finance Document or any applicable law or regulation.

SECTION 9

THE LENDER AND THE OBLIGORS

28

CHANGES TO THE LENDER

28.1

Assignment by the Lender

Subject to this Clause 28 (

Changes to the Lender

), the Lender (the "

Existing Lender

") may assign

all (but not part) of its rights under the Finance Documents to another bank or financial institution

or to a trust, fund or other entity which is regularly engaged in or established for the purpose of

making, purchasing or investing in loans, securities or other financial assets (the "

New Lender

").

28.2

Conditions of assignment

(a)

The consent of the Borrowers is required for an assignment by the Existing Lender, unless the

assignment is:

(i)

to an Affiliate of the Existing Lender;

(ii)

if the Existing Lender is a fund, to a fund which is a Related Fund; or

(iii)

made following the occurrence of an Event of Default.

(b)

The consent of the Borrowers to an assignment must not be unreasonably withheld or delayed.

Each Borrower will be deemed to have given its consent 10 Business Days after the Existing Lender

has requested it unless consent is expressly refused by that Borrower within that time.

(c)

The consent of a Borrower to an assignment must not be withheld solely because the assignment

may result in an increase to any amount payable under Clause 14.3 (

Mandatory Cost

).

(d)

If:

(i)

the Existing Lender assigns any of its rights or obligations under the Finance Documents or

changes its Facility Office; and

(ii)

as a result of circumstances existing at the date the assignment or change occurs, a

Transaction Obligor would be obliged to make a payment to the New Lender or the Existing

Lender acting through its new Facility Office under Clause 12 (

Tax Gross Up and

Indemnities

) or under that Clause as incorporated by reference or in full in any other

Finance Document or Clause 13 (

Increased Costs

),

then the New Lender or the Existing Lender acting through its new Facility Office is only entitled

to receive payment under those Clauses to the same extent as the Existing Lender would have

been if the assignment or change had not occurred.

(e)

Each Obligor on behalf of itself and each Transaction Obligor agrees that all rights and interests

(present, future or contingent) which the Existing Lender has under or by virtue of the Finance

Documents are assigned to the New Lender absolutely, free of any defects in the Existing Lender's

title and of any rights or equities which any Borrower or any other Transaction Obligor had against

the Existing Lender.

 Following such assignment, each Obligor and the Existing Lender shall be

released from further obligations towards one another under the Finance Documents and their

respective rights against one another under the Finance Documents (other than any indemnity

rights of the Lender which are intended to survive) shall be cancelled.

28.3

Security over Lender's rights

In addition to the other rights provided to the Lender under this Clause 28 (

Changes to the Lender

),

the Lender may without consulting with or obtaining consent from any Transaction Obligor, at any

time charge, assign or otherwise create Security in or over (whether by way of collateral or

otherwise) all or any of its rights under any Finance Document to secure obligations of the Lender

including, without limitation:

(a)

any charge, assignment or other Security to secure obligations to a federal reserve or central bank;

and

(b)

if the Lender is a fund, any charge, assignment or other Security granted to any holders (or trustee

or representatives of holders) of obligations owed, or securities issued, by the Lender as security

for those obligations or securities,

except that no such charge, assignment or Security shall:

(i)

release the Lender from any of its obligations under the Finance Documents or substitute

the beneficiary of the relevant charge, assignment or Security for the Lender as a party to

any of the Finance Documents; or

(ii)

require any payments to be made by a Transaction Obligor other than or in excess of, or

grant to any person any more extensive rights than, those required to be made or granted

to the Lender under the Finance Documents.

29

CHANGES TO THE TRANSACTION OBLIGORS

29.1

Assignment or transfer by Transaction Obligors

No Transaction Obligor may assign any of its rights or transfer any of its rights or obligations under

the Finance Documents.

29.2

Additional Subordinated Creditors

(a)

The Borrowers may request that any person becomes a Subordinated Creditor, with the prior

approval of the Lender, by delivering to the Lender:

(i)

a duly executed Subordination Agreement;

(ii)

a duly executed Subordinated Debt Security; and

(iii)

such constitutional documents, corporate authorisations and other documents and

matters as the Lender may reasonably require, in form and substance satisfactory to the

Lender, to verify that the person's obligations are legally binding, valid and enforceable

and to satisfy any applicable legal and regulatory requirements.

(b)

A person referred to in paragraph (a) above will become a Subordinated Creditor on the date the

Lender enters into the Subordination Agreement and the Subordinated Debt Security delivered

under paragraph (a) above.

SECTION 10

ADMINISTRATION

30

PAYMENT MECHANICS

30.1

Payments to the Lender

(a)

On each date on which a Transaction Obligor is required to make a payment under a Finance

Document, that Transaction Obligor shall make an amount equal to such payment available to the

Lender (unless a contrary indication appears in a Finance Document) for value on the due date at

the time and in such funds specified by the Lender as being customary at the time for settlement

of transactions in the relevant currency in the place of payment.

(b)

Payment shall be made to such account in the principal financial centre of the country of that

currency (or, in relation to euro, in a principal financial centre in such Participating Member State

or London, as specified by the Lender) and with such bank as the Lender, in each case, specifies.

30.2

Application of receipts; partial payments

(a)

If the Lender receives a payment that is insufficient to discharge all the amounts then due and

payable by a Transaction Obligor under the Finance Documents, the Lender may apply that

payment towards the obligations of that Transaction Obligor under the Finance Documents in any

manner it may decide.

(b)

Paragraph (a) above will override any appropriation made by a Transaction Obligor.

30.3

No set-off by Transaction Obligors

All payments to be made by a Transaction Obligor under the Finance Documents shall be

calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

30.4

Business Days

(a)

Any payment under the Finance Documents which is due to be made on a day that is not a Business

Day shall be made on the next Business Day in the same calendar month (if there is one) or the

preceding Business Day (if there is not).

(b)

During any extension of the due date for payment of any principal or an Unpaid Sum under this

Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original

due date.

30.5

Currency of account

(a)

Subject to paragraphs (b) and (c) below, dollars is the currency of account and payment for any

sum due from a Transaction Obligor under any Finance Document.

(b)

Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the

costs, expenses or Taxes are incurred.

(c)

Any amount expressed to be payable in a currency other than dollars shall be paid in that other

currency.

30.6

Change of currency

(a)

Unless otherwise prohibited by law, if more than one currency or currency unit are at the same

time recognised by the central bank of any country as the lawful currency of that country, then:

(i)

any reference in the Finance Documents to, and any obligations arising under the Finance

Documents in, the currency of that country shall be translated into, or paid in, the currency

or currency unit of that country designated by the Lender (after consultation with the

Parent Guarantor on behalf of the Borrowers); and

(ii)

any translation from one currency or currency unit to another shall be at the official rate

of exchange recognised by the central bank for the conversion of that currency or currency

unit into the other, rounded up or down by the Lender (acting reasonably).

(b)

If a change in any currency of a country occurs, this Agreement will, to the extent the Lender

(acting reasonably and after consultation with the Parent Guarantor on behalf of the Borrowers)

specifies to be necessary, be amended to comply with any generally accepted conventions and

market practice in the Relevant Market and otherwise to reflect the change in currency.

30.7

Currency conversion

The obligations of any Obligor to pay in the due currency shall only be satisfied to the extent of

the amount of the due currency purchased after deducting the costs of conversion.

30.8

Disruption to Payment Systems etc.

If either the Lender determines (in its discretion) that a Disruption Event has occurred or the

Lender is notified by a Borrower that a Disruption Event has occurred:

(a)

the Lender may, and shall if requested to do so by a Borrower, consult with the Parent Guarantor

on behalf of the Borrowers with a view to agreeing with the Parent Gurantor such changes to the

operation or administration of the Facility as the Lender may deem necessary in the circumstances;

(b)

the Lender shall not be obliged to consult with the Parent Guarantor in relation to any changes

mentioned in paragraph (a) above if, in its opinion, it is not practicable to do so in the

circumstances and, in any event, shall have no obligation to agree to such changes;

(c)

any such changes agreed upon by the Lender and the Parent Guarantor shall (whether or not it is

finally determined that a Disruption Event has occurred) be binding upon the Parties and any

Transaction Obligors as an amendment to (or, as the case may be, waiver of) the terms of the

Finance Documents;

(d)

the Lender shall not be liable for any damages, costs or losses to any person, any diminution in

value or any liability whatsoever (including, without limitation for negligence, gross negligence or

any other category of liability whatsoever but not including any claim based on the fraud of the

Lender) arising as a result of its taking, or failing to take, any actions pursuant to or in connection

with this Clause 30.8 (

Disruption to Payment Systems etc.

).

31

SET-OFF

The Lender may set off any matured obligation due from a Transaction Obligor under the Finance

Documents (to the extent beneficially owned by the Lender) against any matured obligation owed

by the Lender to that Transactio n Obligor, regardless of the place of payment, booking branch or

currency of either obligation. If the obligations are in different currencies, the Lender may convert

either obligation at a market rate of exchange in its usual course of business for the purpose of

the set-off.

32

CONDUCT OF BUSINESS BY THE LENDER

No provision of this Agreement will:

(a)

interfere with the right of the Lender to arrange its affairs (tax or otherwise) in whatever manner

it thinks fit;

(b)

oblige the Lender to investigate or claim any credit, relief, remission or repayment available to it

or the extent, order and manner of any claim; or

(c)

oblige the Lender to disclose any information relating to its affairs (tax or otherwise) or any

computations in respect of Tax.

33

BAIL-IN

Notwithstanding any other term of any Finance Document or any other agreement, arrangement

or understanding between the parties to a Finance Document, each Party acknowledges and

accepts that any liability of any party to a Finance Document under or in connection with the

Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and

acknowledges and accepts to be bound by the effect of:

(a)

any Bail-In Action in relation to any such liability, including (without limitation):

(i)

a reduction, in full or in part, in the principal amount, or outstanding amount due

(including any accrued but unpaid interest) in respect of any such liability;

(ii)

a conversion of all, or part of, any such liability into shares or other instruments of

ownership that may be issued to, or conferred on, it; and

(iii)

a cancellation of any such liability; and

(b)

a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-

In Action in relation to any such liability.

34

NOTICES

34.1

Communications in writing

Any communication to be made under or in connection with the Finance Documents shall be made

in writing and, unless otherwise stated, may be made by fax or letter.

34.2

Addresses

The address and fax number (and the department or officer, if any, for whose attention the

communication is to be made) of each Party for any communication or document to be made or

delivered under or in connection with the Finance Documents are:

(a)

in the case of the Borrowers, that specified in Schedule 1 (

The Parties

); and

(b)

in the case of any other Obligor or the Lender, that specified in Schedule 1 (

The Parties

) or, if it

becomes a Party after the date of this Agreement, that notified in writing to the Lender on or

before the date on which it becomes a Party;

or any substitute address, fax number or department or officer as an Obligor may notify to the

Lender (or the Lender may notify to the other Parties, if a change is made by the Lender) by not

less than five Business Days' notice.

34.3

Delivery

(a)

Any communication or document made or delivered by one person to another under or in

connection with the Finance Documents will only be effective:

(i)

if by way of fax, when received in legible form; or

(ii)

if by way of letter, when it has been left at the relevant address or five Business Days after

being deposited in the post postage prepaid in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details provided under

Clause 34.2 (

Addresses

), if addressed to that department or officer.

(b)

Any communication or document to be made or delivered to the Lender will be effective only

when actually received by it and then only if it is expressly marked for the attention of the

department or officer of the Lender specified in Schedule 1 (

The Parties

) (or any substitute

department or officer as the Lender shall specify for this purpose).

(c)

Any communication or document made or delivered to the Borrowers in accordance with this

Clause will be deemed to have been made or delivered to each of the Transaction Obligors.

(d)

Any communication or document which becomes effective, in accordance with paragraphs (a) to

(c) above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the

following day.

34.4

Electronic communication

(a)

Any communication to be made or document to be delivered by one Party to another under or in

connection with the Finance Documents may be made or delivered by electronic mail or other

electronic means (including, without limitation, by way of posting to a secure website) if those two

Parties:

(i)

notify each other in writing of their electronic mail address and/or any other information

required to enable the transmission of information by that means; and

(ii)

notify each other of any change to their address or any other such information supplied

by them by not less than five Business Days' notice.

(b)

Any such electronic communication or delivery as specified in paragraph (a) above to be made

between an Obligor and the Lender may only be made in that way to the extent that those two

Parties agree that, unless and until notified to the contrary, this is to be an accepted from of

communication or delivery.

(c)

Any such electronic communication or document as specified in paragraph (a) above made or

delivered by one Party to another will be effective only when actually received (or made available)

in readable form and in the case of any electronic communication or document made or delivered

by a Party to the Lender only if it is addressed in such a manner as the Lender shall specify for this

purpose.

(d)

Any electronic communication or document which becomes effective, in accordance with

paragraph (c) above, after 5.00 p.m. in the place in which the Party to whom the relevant

communication or document is sent or made available has its address for the purpose of this

Agreement shall be deemed only to become effective on the following day.

(e)

Any reference in a Finance Document to a communication being sent or received or a document

being delivered shall be construed to include that communication or document being made

available in accordance with this Clause 34.4 (

Electronic communication

).

34.5

English language

(a)

Any notice given under or in connection with any Finance Document must be in English.

(b)

All other documents provided under or in connection with any Finance Document must be:

(i)

in English; or

(ii)

if not in English, and if so required by the Lender, accompanied by a certified English

translation prepared by a translator approved by the Lender and, in this case, the English

translation will prevail unless the document is a constitutional, statutory or other official

document.

35

CALCULATIONS AND CERTIFICATES

35.1

Accounts

In any litigation or arbitration proceedings arising out of or in connection with a Finance

Document, the entries made in the accounts maintained by the Lender are

prima facie

 evidence

of the matters to which they relate.

35.2

Certificates and determinations

Any certification or determination by the Lender of a rate or amount under any Finance Document

is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

35.3

Day count convention 

Any interest, commission or fee accruing under a Finance Document will accrue from day to day

and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in

any case where the practice in the Relevant Market differs, in accordance with that market

practice.

36

PARTIAL INVALIDITY

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or unenforceable

in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of

the remaining provisions under the law of that jurisdiction nor the legality, validity or

enforceability of such provision under the law of any other jurisdiction will in any way be affected

or impaired.

37

REMEDIES AND WAIVERS

(a)

No failure to exercise, nor any delay in exercising, on the part of the Lender or any Receiver or

Delegate, any right or remedy under a Finance Document shall operate as a waiver of any such

right or remedy or constitute an election to affirm any Finance Document. No election to affirm

any Finance Document on the part of the Lender or any Receiver or Delegate shall be effective

unless it is in writing. No single or partial exercise of any right or remedy shall prevent any further

or other exercise or the exercise of any other right or remedy. The rights and remedies provided

in each Finance Document are cumulative and not exclusive of any rights or remedies provided by

law.

(b)

No variation or amendment of a Finance Document shall be valid unless in writing and signed by

the Lender.

38

ENTIRE AGREEMENT

(a)

This Agreement, in conjunction with the other Finance Documents, constitutes the entire

agreement between the Parties and supersedes all previous agreements, understandings and

arrangements between them, whether in writing or oral, in respect of its subject matter.

(b)

 Each Obligor acknowledges that it has not entered into this Agreement or any other Finance

Document in reliance on, and shall have no remedies in respect of, any representation or warranty

that is not expressly set out in this Agreement or in any other Finance Document.

39

SETTLEMENT OR DISCHARGE CONDITIONAL

Any settlement or discharge under any Finance Document between the Lender and any

Transaction Obligor shall be conditional upon no security or payment to the Lender by any

Transaction Obligor or any other person being set aside, adjusted or ordered to be repaid, whether

under any insolvency law or otherwise.

40

IRREVOCABLE PAYMENT

If the Lender considers that an amount paid or discharged by, or on behalf of, a Transaction Obligor

or by any other person in purported payment or discharge of an obligation of that Transaction

Obligor to the Lender under the Finance Documents is capable of being avoided or otherwise set

aside on the liquidation or administration of that Transaction Obligor or otherwise, then that

amount shall not be considered to have been unconditionally and irrevocably paid or discharged

for the purposes of the Finance Documents.

41

AMENDMENTS

41.1

Obligor Intent

Without prejudice to the generality of Clauses 1.2 (

Construction

), 17.4 (

Waiver of defences

) and

18.2 (

Waiver of defences

), each Obligor expressly confirms that it intends that any guarantee

contained in this Agreement or any other Finance Document and any Security created by any

Finance Document shall extend from time to time to any (however fundamental) variation,

increase, extension or addition of or to any of the Finance Documents and/or any facility or

amount made available under any of the Finance Documents for the purposes of or in connection

with any of the following: business acquisitions of any nature; increasing working capital; enabling

investor distributions to be made; carrying out restructurings; refinancing existing facilities;

refinancing any other indebtedness; making facilities available to new borrowers; any other

variation or extension of the purposes for which any such facility or amount might be made

available from time to time; and any fees, costs and/or expenses associated with any of the

foregoing.

42

CONFIDENTIAL INFORMATION

42.1

Confidentiality

The Lender agrees to keep all Confidential Information confidential and not to disclose it to

anyone, save to the extent permitted by Clause 42.2 (

Disclosure of Confidential Information

) and

to ensure that all Confidential Information is protected with security measures and a degree of

care that would apply to its own confidential information.

42.2

Disclosure of Confidential Information

The Lender may disclose:

(a)

to any of its Affiliates and Related Funds and any of its or their officers, directors, employees,

professional advisers, auditors, insurers, insurance advisors, insurance brokers, partners and

Representatives such Confidential Information as the Lender shall consider appropriate if any

person to whom the Confidential Information is to be given pursuant to this paragraph (a) is

informed in writing of its confidential nature and that some or all of such Confidential Information

may be price-sensitive information except that there shall be no such requirement to so inform if

the recipient is subject to professional obligations to maintain the confidentiality of the

information or is otherwise bound by requirements of confidentiality in relation to the Confidential

Information;

(b)

to any person:

(i)

to (or through) whom it assigns (or may potentially assign) all or any of its rights and/or

obligations under one or more Finance Documents and, in each case, to any of that

person's Affiliates, Related Funds, Representatives and professional advisers;

(ii)

with (or through) whom it enters into (or may potentially enter into), whether directly or

indirectly, any sub-participation in relation to, or any other transaction under which

payments are to be made or may be made by reference to, one or more Finance

Documents and/or one or more Transaction Obligors and to any of that person's Affiliates,

Related Funds, Representatives and professional advisers;

(iii)

appointed by the Lender or by a person to whom sub-paragraph (i) or (ii) of paragraph (b)

above applies to receive communications, notices, information or documents delivered

pursuant to the Finance Documents on its behalf;

(iv)

who invests in or otherwise finances (or may potentially invest in or otherwise finance),

directly or indirectly, any transaction referred to in sub-paragraph (i) or (ii) of paragraph

(b) above;

(v)

to whom information is required or requested to be disclosed by any court of competent

jurisdiction or any governmental, banking, taxation or other regulatory authority or similar

body, the rules of any relevant stock exchange or pursuant to any applicable law or

regulation;

(vi)

to whom information is required to be disclosed in connection with, and for the purposes

of, any litigation, arbitrations, administrative or other investigations, proceedings or

disputes;

(vii)

to whom or for whose benefit the Lender charges, assigns or otherwise creates Security

(or may do so) pursuant to Clause 28.3 (

Security over Lender's rights

);

(viii)

which is a classification society or other entity which the Lender has engaged to make the

calculations necessary to enable the Lender to comply with its reporting obligations under

the Poseidon Principles;

(ix)

who is a Party, a member of the Group or any related entity of a Transaction Obligor;

(x)

as a result of the registration of any Finance Document as contemplated by any Finance

Document or any legal opinion obtained in connection with any Finance Document; or

(xi)

with the consent of the Parent Guarantor;

in each case, such Confidential Information as the Lender shall consider appropriate if:

(A)

in relation to sub-paragraphs (i), (ii) and (iii) of paragraph (b) above, the person to

whom the Confidential Information is to be given has entered into a

Confidentiality Undertaking except that there shall be no requirement for a

Confidentiality Undertaking if the recipient is a professional adviser and is subject

to professional obligations to maintain the confidentiality of the Confidential

Information;

(B)

in relation to sub-paragraphs (iv) and (viii) of paragraph (b) above, the person to

whom the Confidential Information is to be given has entered into a

Confidentiality Undertaking or is otherwise bound by requirements of

confidentiality in relation to the Confidential Information they receive and is

informed that some or all of such Confidential Information may be price-sensitive

information;

(C)

in relation to sub-paragraphs (v), (vi) and (vii) of paragraph (b) above, the person

to whom the Confidential Information is to be given is informed of its confidential

nature and that some or all of such Confidential Information may be price-

sensitive information except that there shall be no requirement to so inform if, in

the opinion of the Lender, it is not practicable so to do in the circumstances;

(c)

to any person appointed by the Lender or by a person to whom sub-paragraph (i) or (ii) of

paragraph (b) above applies to provide administration or settlement services in respect of one or

more of the Finance Documents including without limitation, in relation to the trading of

participations in respect of the Finance Documents, such Confidential Information as may be

required to be disclosed to enable such service provider to provide any of the services referred to

in this paragraph (c) if the service provider to whom the Confidential Information is to be given

has entered in to a confidentiality agreement substantially in the form of the LMA Master

Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such

other form of confidentiality undertaking agreed between the Borrowers and the Lender;

(d)

to any rating agency (including its professional advisers) such Confidential Information as may be

required to be disclosed to enable such rating agency to carry out its normal rating activities in

relation to the Finance Documents and/or the Transaction Obligors. 

42.3

DAC6

Nothing in any Finance Document shall prevent disclosure of any Confidential Information or other

matter to the extent that preventing that disclosure would otherwise cause any transaction

contemplated by the Finance Documents or any transaction carried out in connection with any

transaction contemplated by the Finance Documents to become an arrangement described in Part

II A 1 of Annex IV of Directive 2011/16/EU.

42.4

Entire agreement

This Clause 42 (

Confidential Information

) constitutes the entire agreement between the Parties in

relation to the obligations of the Lender under the Finance Documents regarding Confidential

Information and supersedes any previous agreement, whether express or implied, regarding

Confidential Information.

42.5

Inside information

The Lender acknowledges that some or all of the Confidential Information is or may be

price-sensitive information and that the use of such information may be regulated or prohibited

by applicable legislation including securities law relating to insider dealing and market abuse and

the Lender undertakes not to use any Confidential Information for any unlawful purpose.

42.6

Notification of disclosure

The Lender agrees (to the extent permitted by law and regulation) to inform the Borrowers:

(a)

of the circumstances of any disclosure of Confidential Information made pursuant to

sub-paragraph (v) of paragraph (b) of Clause 42.2 (

Disclosure of Confidential Information

) except

where such disclosure is made to any of the persons referred to in that paragraph during the

ordinary course of its supervisory or regulatory function; and

(b)

upon becoming aware that Confidential Information has been disclosed in breach of this Clause 42

(

Confidential Information

).

42.7

Continuing obligations

The obligations in this Clause 42 (

Confidential Information

) are continuing and, in particular, shall

survive and remain binding on the Lender for a period of 12 months from the earlier of:

(a)

the date on which all amounts payable by the Obligors under or in connection with this Agreement

have been paid in full and the Commitment has been cancelled or otherwise ceased to be

available; and

(b)

the date on which the Lender otherwise ceases to be the Lender.

43

CONFIDENTIALITY OF FUNDING RATES 

43.1

Confidentiality and disclosure

(a)

Each Obligor agrees to keep each Funding Rate confidential and not to disclose it to anyone, save

to the extent permitted by paragraph (b) below.

(b)

Each Obligor may disclose any Funding Rate, to:

(i)

any of its Affiliates and any of its or their officers, directors, employees, professional

advisers, auditors, partners and Representatives, if any person to whom that Funding Rate

is to be given pursuant to this paragraph (i) is informed in writing of its confidential nature

and that it may be price sensitive information except that there shall be no such

requirement to so inform if the recipient is subject to professional obligations to maintain

the confidentiality of that Funding Rate or is otherwise bound by requirements of

confidentiality in relation to it;

(ii)

any person to whom information is required or requested to be disclosed by any court of

competent jurisdiction or any governmental, banking, taxation or other regulatory

authority or similar body, the rules of any relevant stock exchange or pursuant to any

applicable law or regulation if the person to whom that Funding Rate is to be given is

informed in writing of its confidential nature and that it may be price sensitive information

except that there shall be no requirement to so inform if, in the opinion of the Lender or

the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;

(iii)

any person to whom information is required to be disclosed in connection with, and for

the purposes of, any litigation, arbitration, administrative or other investigations,

proceedings or disputes if the person to whom that Funding Rate is to be given is informed

in writing of its confidential nature and that it may be price sensitive information except

that there shall be no requirement to so inform if, in the opinion of the Lender or the

relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;

and

(iv)

any person with the consent of the Lender.

43.2

Related obligations

(a)

Each Obligor acknowledges that each Funding Rate is or may be price sensitive information and

that its use may be regulated or prohibited by applicable legislation including securities law

relating to insider dealing and market abuse and each Obligor undertakes not to use any Funding

Rate for any unlawful purpose.

(b)

Each Obligor agrees (to the extent permitted by law and regulation) to inform the Lender:

(i)

of the circumstances of any disclosure made pursuant to sub-paragraph (ii) of paragraph

(b) of Clause 43.1 (

Confidentiality and disclosure

) except where such disclosure is made to

any of the persons referred to in that paragraph during the ordinary course of its

supervisory or regulatory function; and

(ii)

upon becoming aware that any information has been disclosed in breach of this Clause 43

(

Confidentiality of Funding Rates

).

43.3

No Event of Default

No Event of Default will occur under Clause 27.4 (

Other obligations

) by reason only of an Obligor's

failure to comply with this Clause 43 (

Confidentiality of Funding Rates

).

44

COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this has the same

effect as if the signatures on the counterparts were on a single copy of the Finance Document.

SECTION 11

GOVERNING LAW AND ENFORCEMENT

45

GOVERNING LAW

This Agreement and any non-contractual obligations arising out of or in connection with it are

governed by English law.

46

ENFORCEMENT

46.1

Jurisdiction

(a)

Unless specifically provided in another Finance Document in relation to that Finance Document,

the courts of England have exclusive jurisdiction to settle any dispute arising out of or in

connection with any Finance Document (including a dispute regarding the existence, validity or

termination of any Finance Document or any non-contractual obligation arising out of or in

connection with any Finance Document) (a "

Dispute

").

(b)

The Obligors accept that the courts of England are the most appropriate and convenient courts to

settle Disputes and accordingly no Obligor will argue to the contrary.

(c)

To the extent allowed by law, this Clause 46.1 (

Jurisdiction

) is for the benefit of the Lender only.

As a result, the Lender shall be not be prevented from taking proceedings relating to a Dispute in

any other courts with jurisdiction. To the extent allowed by law, the Lender may take concurrent

proceedings in any number of jurisdictions.

46.2

Service of process

(a)

Without prejudice to any other mode of service allowed under any relevant law, each Obligor

(other than an Obligor incorporated in England and Wales):

(i)

irrevocably appoints Hill Dickinson Services (London) Ltd at its registered office for the

time being at The Broadgate Tower, 20 Primrose Street, London EC2A 2EW, United

Kingdom as its agent for service of process in relation to any proceedings before the

English courts in connection with any Finance Document; and

(ii)

agrees that failure by a process agent to notify the relevant Obligor of the process will not

invalidate the proceedings concerned.

(b)

If any person appointed as an agent for service of process is unable for any reason to act as agent

for service of process, the Borrowers (on behalf of all the Obligors) must immediately (and in any

event within three days of such event taking place) appoint another agent on terms acceptable to

the Lender. Failing this, the Lender may appoint another agent for this purpose.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

SCHEDULE 1

THE PARTIES

PART A

THE OBLIGORS

Name of

Borrower

Place of

Incorporation

Registration

number (or

equivalent, if any)

Address for Communication

Majuro Shipping

Company Inc.

Marshall Islands

20080

c/o Approved Manager

350 Syngrou Avenue,

7

th

 Floor, Syngrou Tower,

Kalithea, 17674, Athens, Greece

E-mail: info@dwm.com.cy 

Toku Shipping

Company Inc.

Marshall Islands

71580

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Mejato Shipping

Company Inc.

Marshall Islands

85176

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Rakaru Shipping

Company Inc.

Marshall Islands

85177

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Ebadon Shipping

Company Inc.

Marshall Islands

89308

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Pulap Shipping

Company Inc.

Marshall Islands

61194

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Weno Shipping

Company Inc.

Marshall Islands

61192

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Erikub Shipping

Company Inc.

Marshall Islands

53880

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Wotho Shipping

Company Inc.

Marshall Islands

53882

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

Name of Parent

Guarantor

Place of

Incorporation

Registration

number (or

equivalent, if any)

Address for Communication

Diana Shipping

Inc.

Marshall Islands

13671

c/o Approved Manager

16 Pendelis Street

175 64 Palaio Faliro

Athens, Greece

E-mail:

corpgov@dianashippingservices.com

PART B

THE ORIGINAL LENDER

Name of Original Lender

Address for Communication

Danish Ship Finance A/S

Sankt Annae Plads 3

DK-1250 Copenhagen K

Denmark

Attn: 

Henrik Rohde Søgaard hso@shipfinance.dk 

Iben Nordland inj@shipfinance.dk 

Loan Administration loanadmin@shipfinance.dk

Fax: +45 3333 9666

SCHEDULE 2

CONDITIONS PRECEDENT

PART A

CONDITIONS PRECEDENT TO UTILISATION REQUEST

1

Obligors

1.1

A copy of the constitutional documents of each Obligor.

1.2

A copy of a resolution of the board of directors of each Obligor (other than the Parent Guarantor)

and a copy of a resolution of the executive committee of the Parent Guarantor:

(a)

evidencing corporate benefit;

(b)

approving the terms of, and the transactions contemplated by, the Finance Documents to which

it is a party and resolving that it execute the Finance Documents to which it is a party;

(c)

authorising a specified person or persons to execute the Finance Documents to which it is a party

on its behalf; and

(d)

authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and

notices (including, if relevant, the Utilisation Request) to be signed and/or despatched by it under,

or in connection with, the Finance Documents to which it is a party.

1.3

An original of the power of attorney of any Obligor authorising a specified person or persons to

execute the Finance Documents to which it is a party.

1.4

A specimen of the signature of each person authorised by the resolution referred to in paragraph

1.2 above.

1.5

A copy of a resolution signed by the Parent Guarantor as the holder of the issued shares in each

Borrower, approving the terms of, and the transactions contemplated by, the Finance Documents

to which that Borrower is a party.

1.6

A certificate of each Obligor (signed by a director) confirming that borrowing or guaranteeing, as

appropriate, the Commitment would not cause any borrowing, guaranteeing or similar limit

binding on that Obligor to be exceeded.

1.7

A certificate of each Transaction Obligor that is incorporated outside the UK (signed by a director)

certifying either that (i) it has not delivered particulars of any UK Establishment to the Registrar of

Companies as required under the Overseas Regulations or (ii) it has a UK Establishment and

specifying the name and registered number under which it is registered with the Registrar of

Companies.

1.8

A certificate of an authorised signatory of the relevant Obligor certifying that each copy document

relating to it specified in this Part A of Schedule 2 (

Conditions Precedent

) is a true copy of the

original and it is

correct, complete and in full force and effect as at a date no earlier than the date

of this Agreement.

1.9

A copy of a goodstanding certificate in respect of each Transaction Obligor dated not earlier than

three months from the date of this Agreement. 

2

Finance Documents

2.1

If applicable, a duly executed original of the Subordination Agreement and copies of each

Subordinated Finance Document.

2.2

A duly executed original of any Finance Document not otherwise referred to in this Schedule 2

(

Conditions Precedent

).

2.3

A duly executed original of any other document required to be delivered by each Finance

Document if not otherwise referred to this Schedule 2 (

Conditions Precedent

).

3

Security

3.1

A duly executed original of the Account Security in relation to each Earnings Account and of the

Shares Security in respect of each Borrower (and of each document to be delivered under each of

them).

3.2

If applicable, a duly executed original of the Subordinated Debt Security.

4

Legal opinions

4.1

A legal opinion of Watson Farley & Williams, Greece, legal advisers to the Lender in England.

4.2

If an Obligor is incorporated in a jurisdiction other than England and Wales, a legal opinion of the

legal advisers to the Lender in the relevant jurisdiction.

5

Shareholder's loans

If there are any shareholder loans agreements in respect of any loan from the Parent Guarantor

to a Borrower, copies of such loan agreements together with evidence:

(a)

of corporate benefit; and

(b)

that any relevant financial assistance laws have been complied with.

6

Other documents and evidence

6.1

A valuation of each Ship, addressed to the Lender, stated to be for the purposes of this Agreement

and dated not earlier than 30 days before the Utilisation Date for the Advance under each Tranche

from an Approved Valuer.

6.2

Draft cover notes and certificates of the relevant P&I Club in respect of each Ship evidencing that

each Ship is insured in accordance with the provisions of this Agreement together with draft 

letters o

f undertaking by the Approved Brokers in accordance with paragraph (b) of Clause 23.6

(

Copies of policies; letters of undertaking

), in each case in forms acceptable to the Lender. 

6.3

Evidence that any process agent referred to in Clause 46.2 (

Service of process

), if not an Obligor,

has accepted its appointment.

6.4

A copy of any other Authorisation or other document, opinion or assurance which the Lender

considers to be necessary or desirable (if it has notified the Borrowers accordingly) in connection

with the entry into and performance of the transactions contemplated by any Transaction

Document or for the validity and enforceability of any Transaction Document.

6.5

The Original Financial Statements of the Parent Guarantor.

6.6

The original of any mandates or other documents required in connection with the opening or

operation of the Earnings Accounts.

6.7

Evidence that the fees, costs and expenses then due from the Borrowers pursuant to Clause 11

(

Fees

) and Clause 16 (

Costs and Expenses

) have been paid or will be paid by the first Utilisation

Date.

6.8

Such documentation and information as the Lender deem necessary and/or advisable to comply

with: 

(a)

relevant sanction regulations including the Lender's sanction compliance procedures with a view

to carry out relevant sanctions' screenings; and

(b)

customer due diligence measures for purposes of AML/CTF checks as required by the Danish

Consolidating Act no. 1022 of 13

th

 of August 2013 on Measures to Prevent Money Laundering and

Financing of Terrorism (as amended and supplemented) including, without limitation:

(i)

Ownership and structure: evidence satisfactory to the Lender of the complete ownership

and control structure of the Customers including the ownership stake belonging to

beneficial owners meaning the natural person(s) who ultimately owns or controls through

direct or indirect ownership of more than 20 per cent. of the shares or voting rights in the

Customers (except for beneficial owners in companies listed on a regulated market that is

subject to disclosure requirements consistent with EU law or equivalent international

standards, provided that if only part of such companies shares are listed, the beneficial

owners, if any, of such remaining unlisted shares shall be subject to the disclosure

requirements) or, if no such person(s) are identified or if there is any doubt that the

person(s) identified are the beneficial owner(s), the natural person(s) who hold the

position of senior management in the Parent Guarantor;

(ii)

Verification: copies of proof of identity and country of residence (which may be

documented by copy of bank statement, utility bills, lease contracts or other official

documents from a reliable and independent source) no older than 3 Months from date of

receipt, in Roman Latin letters ( i.e. not Hebrew, Greek, Arabic or Russian letters in

readable form) of the Customers and any beneficial owner (except for beneficial owners

in listed companies as described in sub-paragraph (a) above) or, if no such person(s) are

identified or if there is any doubt that the person(s) identified are the beneficial owner(s),

in addition to the so identified beneficial owner(s), the natural person(s) who hold the

position of senior management officials in the Parent Guarantor and of any signatories

shall be verified in the following manner:

(A)

in relation to natural persons (e.g. beneficial owner(s) or senior management

officials): proof of identity shall include name, date of birth and civil registration

number verified on the basis of copies of passports or driver's licenses, other

government issued documents, lawyer's statements or a legal opinion; and

(B)

in relation to legal persons (e.g. Customers and/or any listed parent company):

proof of identity shall include registered name, country of incorporation, business

registration number, tax identification number (TIN), legal entity identifier (LEI) or

similar government issued identification number verified on the basis of transcript

from companies house or companies registry, Articles of Association and

Memorandum of Association, or other government issued documents.

Alternatively, bank statements, lawyer's statements, legal opinion or confirmation

from the Danish Consulate in the country

 of

the registered office of the Customer

or listed parent company confirming name or business identification number; 

(iii)

Signing authority and verification: 

(A)

Authorised signatory: copies of Articles of Association and Memorandum of

Association, Board Resolution, or legal opinion. Proof of identity of the signatory

shall be verified on the basis of passport, identity card issued by a governmental

authority or driver's license in relation to the signing of authority of any person

executing a document on behalf of the Customers; and

(B)

Attorneys in fact: copies of any powers of attorney, documentation evidencing

general authority or legal opinion in relation to the signing authority of any

attorney-in-fact executing a document on behalf of the Customers, in each case

no older than 3 months. The proof of identity of any attorney-in-fact shall be

verified on the basis of passport, identity card issued by a governmental authority

or driver's license. Alternatively, if the attorney-in-fact is an attorney-at-law

qualified in a EU/EEA member state, a print-out of the webpage of the relevant

law firm with whom the attorney-at-law is employed evidencing such

employment; and

(iv)

a statement from the Customers confirming that the documents, data or information

previously provided to the Lender under paragraphs (i), (ii) and (iii) above is up-to-date,

or, alternatively, any relevant updated documents, data or information.

PART B

CONDITIONS PRECEDENT TO UTILISATION UNDER EACH TRANCHE 

In this Part B, the

"

Relevant Ship

" means the particular Ship to which the relevant Tranche relates and

"

Relevant Borrower

" means the Borrower owning that Ship.

1

Borrowers

A certificate of an authorised signatory of the Relevant Borrower certifying that each copy

document which it is required to provide under this Part B of Schedule 2 (

Conditions Precedent

) a

true copy of the original and it is correct, complete and in full force and effect as at the Utilisation

Date of the Advance under the relevant Tranche.

2

Release of Existing Security

An original of the relevant Deed of Release and of each document to be delivered under or

pursuant to it, together with evidence satisfactory to the Lender of its due execution by the parties

to it.

3

Ship and other security

3.1

A duly executed original of the Mortgage, the General Assignment and, if applicable, any

Charterparty Assignment in respect of the Relevant Ship and of each document to be delivered

under or pursuant to each of them together with documentary evidence that the Mortgage in

respect of the Relevant Ship has been duly registered or, as the case may be, recorded as a valid

first preferred or, as the case may be, first priority ship mortgage in accordance with the laws of

the jurisdiction of its Approved Flag.

3.2

Documentary evidence that the Relevant Ship:

(a)

is definitively and permanently registered in the name of the Relevant Borrower under the

Approved Flag applicable to the Relevant Ship;

(b)

is in the absolute and unencumbered ownership of the Relevant Borrower save as contemplated

by the Finance Documents;

(c)

maintains the Approved Classification with the Approved Classification Society(ies) free of all

material overdue recommendations and conditions or adverse notations of the Approved

Classification Society and if the Relevant Ship is Ship H or Ship I, evidence that the rules of Det

Norske Veritas shall apply in full extent to such Ship; and

(c)

is insured in accordance with the provisions of this Agreement (including final cover notes from

the relevant underwriters and certificate of entry of the relevant P&I Club in the forms previously

approved by the Lender) and all requirements in this Agreement in respect of insurances

(including, without limitation, letters of undertaking by the Approved Brokers in accordance with

paragraph (b) of Clause 23.6 (

Copies of policies; letters of undertaking

)) have been complied with.

3.3

Documents establishing that the Relevant Ship will, as from the Utilisation Date of the Advance

under the relevant Tranche, be managed commercially by its Approved Commercial Manager and

managed technically by its Approved Technical Manager on terms acceptable to the Lender,

together with:

(a)

a Manager's Undertaking for each of the Approved Technical Manager and the Approved

Commercial Manager in respect of the Relevant Ship; and

(b)

copies of the Inventory of Hazardous Materials relating to the Relevant Ship, the relevant

Approved Technical Manager's Document of Compliance and of the Relevant Ship's Safety

Management Certificate (together with any other details of the applicable Safety Management

System which the Lender requires), and of any other documents required under the ISM Code and

the ISPS Code in relation to the Relevant Ship including without limitation an ISSC and a Tonnage

Certificate.

3.4

An opinion from an independent insurance consultant acceptable to the Lender on such matters

relating to the Insurances as the Lender may require.

4

Legal opinions

Legal opinions of the legal advisers to the Lender in the jurisdiction of the Approved Flag of the

Relevant Ship and such other relevant jurisdictions as the Lender may require.

5

Other documents and evidence

5.1

A copy of any other Authorisation or other document, opinion or assurance which the Lender

considers to be necessary or desirable (if it has notified the Borrowers accordingly) in connection

with the entry into and performance of the transactions contemplated by any Transaction

Document referred to in paragraph 3 (

Ship and other security

) above or for the validity and

enforceability of any such Transaction Document.

5.2

Any charterparties, pool agreement and on-hire certificate in respect of the Relevant Ship.

5.3

Evidence satisfactory to it of the current status of the Relevant Ship regarding EEXI (Energy

Efficiency Existing Ship Index) and of the Operational Carbon Intensity Rating of the Relevant Ship. 

5.4

If the Relevant Ship is Ship B, Ship C, Ship D, Ship E or Ship F, a report on the fuel type used and

the fuel consumption (at service and economy speed for Ship B, Ship E or Ship F or at service for

Ship C and Ship D) of that Relevant Ship based on the Regulation (EU) 2015/757 of the European

Parliament and of the Council of 29 April 2015 on the monitoring, reporting and verification of

carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC.

5.5

Evidence that the fees, costs and expenses then due from the Borrowers pursuant to Clause 11

(

Fees

) and Clause 16 (

Costs and Expenses

) have been paid or will be paid by the Utilisation Date

for the Advance under the relevant Tranche.

5.6

Evidence that all sums then due (if any) to the Lender in respect of the relevant Existing

Indebtedness have been paid in full.

SCHEDULE 3

UTILISATION REQUEST

From:

Majuro Shipping Company Inc.

Toku Shipping Company Inc.

Mejato Shipping Company Inc.

Rakaru Shipping Company Inc.

Ebadon Shipping Company Inc.

Pulap Shipping Company Inc.

Weno Shipping Company Inc.

Erikub Shipping Company Inc.

Wotho Shipping Company Inc.

To:

Danish Ship Finance A/S

Dated: [

●

] 2023

Majuro Shipping Company Inc., Toku Shipping Company Inc., Mejato Shipping Company Inc., Rakaru

Shipping Company Inc., Ebadon Shipping Company Inc., Pulap Shipping Company Inc., Weno Shipping

Company Inc., Erikub Shipping Company Inc., Wotho Shipping Company Inc. – $100,000,000 Facility

Agreement dated [

●

] April 2023 (the

"

Agreement

"

)

1

We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have

the same meaning in this Utilisation Request unless given a different meaning in this Utilisation

Request.

2

We wish to borrow the Facility on the following terms:

Proposed Utilisation Date: [

●

] (or, if that is not a Business Day, the next Business

Day)

Amount: $[

●

] or, if less, the Available Facility

Interest Period for the first Advance: [

●

]

3

[You are authorised and requested to deduct from the Advance prior to funds being remitted the

following amounts set out against the following items:

Deductible Items $

Upfront Fee

Lender's solicitors' fees inclusive of disbursements and VAT

[

●

] legal opinion fees (if any)

Net proceeds of Advance _____________]

4

We confirm that each condition specified in Clause 4.1 (

Initial conditions precedent

) and Clause 4.2

(

Further conditions precedent

) of the Agreement as they relate to the Advance to which this

Utilisation Request refers is satisfied on the date of this Utilisation Request.

5

The [net] proceeds of this Advance should be credited to [account].

6

This Utilisation Request is irrevocable.

Yours faithfully

____________________

[

●

]

authorised signatory for

Majuro Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Toku Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Mejato Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Rakaru Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Ebadon Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Pulap Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Weno Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Erikub Shipping Company Inc.

____________________

[

●

]

authorised signatory for

Wotho Shipping Company Inc.

SCHEDULE 4

FORM OF COMPLIANCE CERTIFICATE

To: Danish Ship Finance A/S as Lender

From: Diana Shipping Inc.

Dated: [

●

]

Majuro Shipping Company Inc., Toku Shipping Company Inc., Mejato Shipping Company Inc., Rakaru

Shipping Company Inc., Ebadon Shipping Company Inc., Pulap Shipping Company Inc., Weno Shipping

Company Inc., Erikub Shipping Company Inc., Wotho Shipping Company Inc. – $100,000,000 Facility

Agreement dated [

●

] April 2023 (the

"

Agreement

"

)

1

We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have

the same meaning when used in this Compliance Certificate unless given a different meaning in

this Compliance Certificate.

2

We confirm that: 

(a)

the aggregate of all Cash and Cash Equivalents held by the Parent Guarantor on a consolidated

basis are [●]; 

(b)

the Market Value Adjusted Net Worth of the Group is [●]; 

(c)

the Market Value Adjusted Total Assets of the Group are [●]; and

(d)

the Security Cover Ratio is [●].

3

[We confirm that no Default is continuing.]

Signed:

________________________ 

Chief Finance Officer 

of 

Diana Shipping Inc. 

SCHEDULE 5

DETAILS OF THE SHIPS

Ship name

Name 

of the

Borrower/o

wner

IMO Number

Type

DWT

Approved Flag

and port of

registration

Approved

Classification

Society

Approved Classification

Approved

Commercial

Manager

Approved Technical Manager

ALCMENE

Majuro

Shipping

Company

Inc.

9568586

Post-

panamax

bulk carrier

93,193

Marshall Islands

Bureau Veritas

I +[ HULL + MACH

Bulk carrier CSR BC-A (holds 2,4, 6

may be empty) ESP GRAB (20)

Unrestricted navigation + AUT-

UMS , + AUT -PORT , MON-SHAFT , 

+ ALP , INWATERSURVEY

Diana Wilhelmsen

Management Limited

Diana Wilhelmsen

Management Limited

SEATTLE

Toku

Shipping

Company

Inc.

9476848

Capesize

bulk carrier

179,362

Marshall Islands

Nippon Kaiji Kyokai

NS* I MNS*

(CSR, BC-A, BC-XII, GRAB 20, PSPC-

WBT)(ESP)(IWS)(PSCM)

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

PHAIDRA

Mejato

Shipping

Company

Inc.

9661211

Post-

panamax

bulk carrier

87,146

Marshall Islands

American Bureau

of Shipping

+A1, Bulk Carrier, BC-A (holds 2,4

and 6 may be empty), ESP,

Ⓔ

 ,

+AMS, +ACCU, CPS, CSR AB-CM

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

ELECTRA

Rakaru

Shipping

Company

Inc.

9661223

Post-

panamax

bulk carrier

87,150

Marshall Islands

China

Classification

Society 

☆

 CSA Bulk Carrier, Double Side

Skin; CSR; BC-A(Holds Nos. 2,4 ^6

may be Empty); GRAB[20];

PSPC(R,D); Loading Computer (S, I,

G); ESP; In-Water Survey FTP;

BWMP

☆

 CSM Al/T-D; SCM; SEEMP (I)

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

ASTARTE

Ebadon

Shipping

Company

Inc.

9600645

Kamsarmax

bulk carrier

81,513

Marshall Islands

American Bureau

of Shipping

+A1, Bulk Carrier, BC-A (holds 2, 4

and 6 may be empty), ESP,

Ⓔ

,

+AMS, +ACCU, CPS, CSR, AB-CM

Additional Notations

GP, GRAB 30, RW, TCM, UWILD

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

P. S. PALIOS

Pulap

Shipping

Company

Inc.

9573103

Capesize

bulk carrier

179,134

Marshall Islands

Bureau Veritas

I + HULL + MACH

Bulk carrier CSR CPS(WBT) BC-A

(holds 2,4,6

☆

 8 may be empty)

GRAB+ 20cv ESP Unrestricted

navigation + AUT-UMS , MON-

SHAFT , GREEN PASSPORT , + ALP ,

CYBER MANAGED ,

INWATERSURVEY , LI-HG 

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

G. P. ZAFIRAKIS

Weno

Shipping

Company

Inc.

9671931

Capesize

bulk carrier

179,492

Marshall Islands

China

Classification

Society

☆

 CSA Bulk Carrier; CSR; BD-

A(Holds Nos. 2,4,6 & 8 may be

Empty); GRAB[25]; ERS*; PSPC(B);

Loading Computer (S, I, G, D); ESP;

In-Water Survey

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

CRYSTALIA

Erikub

Shipping

Company

Inc.

9658874

Panamax

bulk carrier

77,525

Greek (at the port

of Piraeus)

China

Classification

Society/Det

Norske Veritas

+ 1A1 Bulk carrier BC(A) BIS

BWM(T) CSR E0 ESP Grab(20 t)

Holds(2,4 & 6)may be empty

Ice(1B) TMON

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

ATALANDI

Wotho

Shipping

Company

Inc.

9658886

Panamax

bulk carrier

77,529

Greek (at the port

of Chios)

China

Classification

Society/Det

Norske Veritas

+ 1A1 Bulk carrier BC(A) BIS

BWM(T) CSR E0 ESP Grab(20 t)

Holds(2,4 & 6)may be empty

Ice(1B) TMON

Diana Shipping

Services S.A.

Diana Shipping Services S.A.

SCHEDULE 6

TIMETABLES

Delivery of a duly completed Utilisation Request

(Clause 5.1 (

Delivery of Utilisation Request

)) 

Three Business Days before the intended

Utilisation Date (Clause 5.1 (

Delivery of

Utilisation Request

)) 

EXECUTION PAGES

BORROWERS

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

MAJURO SHIPPING COMPANY INC. 

)

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

TOKU SHIPPING COMPANY INC.

 )

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

MEJATO SHIPPING COMPANY INC. 

)

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

RAKARU SHIPPING COMPANY INC. )

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

EBADON SHIPPING COMPANY INC. 

)

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

PULAP SHIPPING COMPANY INC. 

)

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

WENO SHIPPING COMPANY INC. 

)

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

ERIKUB SHIPPING COMPANY INC. 

)

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

WOTHO SHIPPING COMPANY INC. 

)

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

PARENT GUARANTOR

SIGNED

 by [

●

] )

duly authorised )

for and on behalf of )

DIANA SHIPPING INC.

 )

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

ORIGINAL LENDER

SIGNED

 by [●] )

duly authorised )

for and on behalf of )

DANISH SHIP FINANCE A/S

 )

in the presence of: )

Witness' signature: )

Witness' name: )

Witness' address: )

EX-4.50

exhibit450

EX-4.51

exhibit451

EX-4.52

Amendment and Restatement Deed re Secured Loan Agreement dated 7 January

2016

Dated July 2023

(1)

Aster Shipping Company Inc.

Aerik Shipping Company Inc.

(as Borrowers)

(2)

Diana Shipping Inc.

(as Guarantor)

(3)

Diana Shipping Services S.A.

(as Other Security Party)

(4)

The Export-Import Bank of China

(as Lenders)

(5)

The Export-Import Bank of China

(as Arranger)

(6)

The Export-Import Bank of China

(as Agent)

(7)

The Export-Import Bank of China

(as Security Agent)

LONLIVE\107669195

.3

Contents

Page1

Definitions and Interpretation ................................ ................................ ........... 2

2

Conditions ................................................................ ................................ ....... 2

3

Representations ................................................................ .............................. 3

4

Amendment and restatement of Loan Agreement............................................ 3

5

Release of Outgoing Borrower................................ ................................ ......... 3

6

Continuing obligations ................................ ................................ ..................... 3

7

Confirmations and Undertakings ................................ ................................ ...... 3

8

Partial Invalidity, Notices, Counterparts, Governing Law and Enforcement ...... 4

Schedule 1 The Lenders ................................ ................................ ................................ .... 5

Schedule 2 Conditions ................................................................ ................................ ....... 6

Schedule 3 Amended and Restated Loan Agreement ................................ ........................ 8

LONLIVE\107669195.3

Amendment and Restatement Deed

Dated July 2023

Between:

(1)

Aster Shipping Company Inc.

and

Aerik Shipping Company Inc.

each a company

incorporated under the law of the Republic of the Marshall Islands, with registered

address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,

MH96960, Marshall Islands (the "

Borrowers

") and

Houk Shipping Company Inc.

,

a company incorporated under the law of the Republic of the Marshall Islands, with

registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro, MH96960 (the "

Outgoing Borrower"

); and

(2)

Diana Shipping Inc.

, a company incorporated under the law of the Republic of the

Marshall Islands, with registered address at Trust Company Complex, Ajeltake

Road,

Ajeltake Island, Majuro, MH96960, Marshall Islands (the "

Guarantor

"); and

(3)

Diana Shipping Services S.A.

, a company incorporated under the law of Panama,

with registered office at Edificio Universal, Piso 12, Avenida Federico Boyd,

Panama,

Panama (the "

Other Security Party

"); and

(4)

The financial institutions listed in Schedule 1, each acting through its office at the

address indicated against its name in Schedule 1 (together the "

Lenders

" and each a

"

Lender

"); and

(5)

The Export-Import Bank of China

, acting as arranger through its office at No. 30,

Fu Xing Men Nei Street, Xicheng District, Beijing 10003, China (in that capacity the

"

Arranger

"); and

(6)

The Export-Import Bank of China

, acting as agent through its office at No. 30, Fu

Xing Men Nei Street, Xicheng District, Beijing 10003, China (in that capacity the

"

Agent

"); and

(7)

The Export-Import Bank of China

, acting as security agent through its office at No.

30, Fu Xing Men Nei Street, Xicheng District, Beijing 10003, China (in that capacity

the "

Security Agent

").

Background

(A)

This Deed is supplemental to and amends and restates a secured loan agreement

dated 7 January 2016 (the "

Loan Agreement

") made between the Borrowers, the

Lenders, the Arranger, the Agent and the Security Agent on the terms and subject to

the conditions of which each of the Lenders agreed to advance to the Borrowers on a

joint and several basis its respective Commitment of an aggregate amount not

exceeding, as of the date of this Deed, $58,440,000.

(B)

The parties to the Loan Agreement have agreed to amend and restate the Loan

Agreement in the form attached to this Deed at Schedule 3 (

Amended and Restated

Loan Agreement

) and the Finance Parties have agreed to release the Outgoing

Borrower from its obligations under the Loan Agreement.

(C)

It is intended that this document takes effect as a deed notwithstanding the fact that

a party may only execute this document under hand.

IT IS AGREED

as follows:

1

Definitions and Interpretation

1.1

Definitions

In this Deed:

"

Effective Date

" means 21 July 2023.

"

Finance Parties

" means the Arranger, the Agent, the Security Agent and the

Lenders.

"

Mortgage Addenda

" means the mortgage addenda in respect of the Vessels, to be

entered into by the Borrowers in favour of the Security Agent.

"

Security Parties

" means any party to this Deed (other than any Finance Party and

the Outgoing Borrower).

1.2

Construction

1.2.1

Capitalised terms defined in the Loan Agreement have the same meaning in

this Deed unless expressly defined in this Deed.

1.2.2

The provisions of clause 1.2 of the Loan Agreement apply to this Deed as

though they were set out in full in this Deed except that references to the

Loan Agreement will be construed as references to this Deed.

1.2.3

References to a Clause, a paragraph or a Schedule are to a Clause,

paragraph or Schedule of this Deed unless otherwise specified.

1.3

Finance Document

The Agent and the Borrowers hereby designate this Deed as a

Finance Document.

1.4

Joint and several obligations

All obligations, representations, warranties,

covenants and undertakings of the Borrowers under or pursuant to this Deed shall,

unless otherwise expressly provided, be entered into, made or given by them jointly

and severally.

2

Conditions

2.1

The Borrowers shall deliver or cause to be delivered to or to the order of the Agent, no

later than five Business Days from the Effective Date, all the documents and other

evidence listed in Schedule 2 (

Conditions

).

2.2

All documents and evidence delivered to the Agent pursuant to Clause 2.1 shall:

2.2.1

be in form and substance acceptable to the Agent;

2.2.2

if required by the Agent, be certified, notarised, legalised or attested in a

manner acceptable to the Agent.

3

Representations

3.1

Each of the representations contained in clause 11 (

Representations

) of the Loan

Agreement shall be deemed repeated by the Borrowers and the Guarantor at the

date of this Deed and at the Effective Date, by reference to the facts and

circumstances then pertaining, as if references to the Finance Documents include

this Deed.

3.2

Any representation made by any Security Party in any of the Security Documents to

which it is a party shall be deemed repeated by that Security Party at the date of this

Deed and at the Effective Date, by reference to the facts and circumstances then

pertaining.

4

Amendment and restatement of Loan Agreement

4.1

With effect from the Effective Date, the Loan Agreement shall be amended and

restated in the form set out in Schedule 3 (

Amended and Restated Loan Agreement

).

5

Release of Outgoing Borrower

Without prejudice to the obligations of the Borrowers or the Guarantor under, or to the

validity of, the Loan Agreement and without prejudice to the obligations of the Security

Parties under, or to the validity of, the Security Documents all of which shall remain in

full force and effect in accordance with Clause 7, (

Confirmations and Undertakings

),

the Agent on behalf of all the Finance Parties, hereby releases and discharges the

Outgoing Borrower from all obligations, liabilities, claims and demands whatsoever

under the Loan Agreement with effect from the date of this Deed.

6

Continuing obligations

6.1

Subject to the provisions of this Deed:

6.1.1

the Loan Agreement and all other Finance Documents will remain in full

force and effect;

6.1.2

on and from the Effective Date, the Loan Agreement shall be read and

construed as amended and restated by this Deed and references to the

Loan Agreement in each of the Finance Documents will be read and

construed as references to the Loan Agreement as amended and restated in

this Deed; and

6.1.3

nothing in this Deed shall constitute or be construed as a waiver or release of

any right or remedy of the Finance Parties under the Finance Documents

nor otherwise prejudice any right or remedy of a Finance Party under the

Loan Agreement or any other Finance Document.

6.2

The definition of any term defined in any of the Security Documents shall, to the extent

necessary, be modified to reflect the amendment and restatement of the Loan

Agreement made in this Deed.

7

Confirmations and Undertakings

7.1

Each Security Party confirms that on and after the Effective Date, all of its respective

obligations under or pursuant to each of the Security Documents to which it is a party

remain in full force and effect, despite the amendment and restatement of the Loan

Agreement made in this Deed, as if all references in any of the Security Documents to

the Loan Agreement are references to the Loan Agreement as amended and

restated in this Deed.

7.2

The Guarantor also confirms that its Guarantee will extend to each Borrower's

obligations under the Loan Agreement (as amended and restated in this Deed).

7.3

If, and to the extent that, the guarantee, undertaking or indemnity provided under its

Guarantee is not, for any reason, enforceable on or after the Effective Date in relation

to each Borrower's obligations under the Finance Documents (as amended and

restated by this Deed), the Guarantor hereby guarantees to, undertakes with and

indemnifies each Finance Party on the terms of those clauses in relation to those

obligations on and after the Effective Date.

8

Partial Invalidity, Notices, Counterparts, Governing Law and Enforcement

The provisions of clauses 19 (

Partial Invalidity

), 18 (

Notices

), 22.5 (

Counterparts

) and

23 (

Law and Jurisdiction

) of the Loan Agreement shall apply to this Deed as if they are

set out in full and as if (a) references to each Party are references to each party to this

Deed and (b) references to the Loan Agreement are references to this Deed.

In witness

of which the parties to this Deed have executed this Deed as a deed the day and

year first before written.

Schedule 1

The Lenders

Lenders

Name

Lending office

The Export-Import Bank of China

No. 30, Fu Xing Men Nei Street, Xicheng

District, Beijing 10003, China

Schedule 2

Conditions

1

Corporate documents

(a)

Constitutional documents

Copies of the constitutional documents of

each of the Borrowers and the Guarantor together with such other evidence

as the Agent may reasonably require that Borrower or the Guarantor is duly

incorporated in its country of incorporation and remains in existence with

power to enter into, and perform its obligations under, this Deed and any

document to be executed by that Borrower or the Guarantor pursuant to

this Deed.

(b)

Certificates of good standing

A certificate of good standing in respect of

each of the Borrowers and the Guarantor (if such a certificate can be

obtained).

(c)

Board resolutions

A copy of a resolution of the board of directors of each

of the Borrowers and a copy of a resolution of the executive committee of

the Guarantor:

(i)

approving the terms of, and the transactions contemplated by, this

Deed and any document to be executed by that Borrower or

Guarantor (as applicable) pursuant to this Deed and resolving that

it execute this Deed and any such document; and

(ii)

authorising a specified person or persons to execute this Deed

and any such document (including all documents and notices to

be signed and/or dispatched under any such document) on its

behalf.

(d)

Specimen signatures

A specimen of the signature of each person

authorised by the resolutions referred to in (c).

(e)

Shareholder resolutions

A copy of a resolution signed by all the holders

of the issued shares in each of the Borrowers, approving the terms of,

and the transactions contemplated by, this Deed and any document to be

executed by that Borrower pursuant to this Deed.

(f)

Officer's certificates

An original certificate of a duly authorised officer of

each of the Borrowers and the Guarantor:

(i)

certifying that each copy document relating to it specified in this

Schedule 2 is correct, complete and in full force and effect;

(ii)

setting out the names of the directors, officers and shareholders

of that Borrower or the names of the directors and officers of the

Guarantor (as applicable) and the proportion of shares held by

each shareholder of that Borrower; and

(iii)

confirming that, subject only to the documents provided to the

Agent pursuant to this Part 1 of this Schedule 2, none of the

equivalent documents delivered to the Agent pursuant to 

clause 3.1 of the Loan Agreement have been amended or

modified in any way since the date of their delivery to the Agent,

or certifying copies, as true, complete, accurate and neither

amended nor revoked, of any which have been amended or

modified.

(g)

Evidence of registration

Where such registration is required or permitted

under the laws of the relevant jurisdiction, evidence that the names of the

directors, officers and shareholders of each of the Borrowers and the

directors and officers of the Guarantor are duly registered in the

companies registry or other registry in the country of incorporation of that

Borrower or Guarantor (as applicable).

(h)

Powers of attorney

The original notarially attested and legalised power

of attorney of each of the Borrowers and the Guarantor under which this

Deed and any document to be executed by that Borrower or Guarantor (as

applicable) pursuant to this Deed are to be executed by that Borrower or

Guarantor (as applicable).

2

Security and related documents

(a)

Mortgage Addenda

the Mortgage Addenda in respect of the Vessels, duly

executed.

(b)

Evidence of registration

Certificates of ownership and encumbrance (or

equivalent) issued by the Registrar of Ships of the Marshall Islands flag

confirming that the Mortgage Addenda have been registered against the

Vessels and that there are no further Encumbrances registered against

the Vessels.

3

Legal opinions

The following legal opinions:

(a)

a legal opinion of Stephenson Harwood LLP, legal advisers to the Agent

as to English law substantially in the form distributed to the Lender

s

prior

to signing this Deed;

(b)

a legal opinion of Hill Dickinson International as to Marshall Islands law.

4

Other documents and evidence

(a)

Process agent

Evidence that any process agent appointed pursuant to

Clause 8 has accepted its appointment.

(b)

Other Authorisations

A copy of any other Authorisation or other

document, opinion or assurance which the Agent considers to be

necessary or desirable (if it has notified the Borrower accordingly) in

connection with the entry into and performance of the transactions

contemplated by this Deed or for the validity and enforceability of this

Deed and any document to be executed pursuant to this Deed.

Schedule 3

Amended and Restated Loan Agreement

US$58,440,000 Secured Loan Agreement dated 7 January 2016 as amended and

restated by a deed of amendment and restatement dated _ July 2023

Aster shipping company Inc.

Aerik shipping company Inc.

(as Borrowers)

-

and -

The Export-Import Bank of China

(as Lenders)

-

and -

The Export-Import Bank of China

(as Arrangers)

-

and -

The Export-Import Bank of China

(as Agent)

-

and -

The Export-Import Bank of China

(as Security Agent)

LONLIVE\107610866.5

Contents

Page1234567891011121314151617181920212223

Schedule 1 The Lenders and the Arrangers ................................ ................................ ..... 61

Part 1 The Lenders and the Commitments ................................ .................... 61

Part 2 The Arrangers ................................ ................................ ..................... 62

Schedule 2 Conditions Precedent and Subsequent ................................ .......................... 63

LONLIVE\107610866.5

Part 1 Conditions precedent ................................ ................................ .......... 63

Part 2 Conditions subsequent ................................ ................................ ........ 68

Schedule 3 Form of Drawdown Notice ................................ ................................ ............. 69

Schedule 4 Form of Transfer Certificate ................................ ................................ ........... 71

Schedule 5 Form of Compliance Certificate ................................................................ ..... 74

LONLIVE\107610866.5

3

Loan Agreement dated 7 January 2016 as amended and restated by a deed of

amendment and restatement dated July 2023

Between:

(1)

Aster Shipping Company Inc.

and

Aerik Shipping Company Inc.

each a company

incorporated under the laws of the Marshall Islands whose registered address is at

Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960,

Marshall Islands (together the "

Borrowers

" and each a "

Borrower

") jointly and

severally; and

(2)

the banks listed in Schedule 2, Part 1 (

The Lenders and the Commitments

), each

acting as lender through its office at the address indicated against its name in

Schedule 2,

Part I (together the "

Lenders

" and each a "

Lender

"); and

(3)

the banks listed in Schedule 2, Part 2 (

The Arrangers

), each acting as arranger

through its office at the address indicated against its name in Schedule 2, Part 2

(together the "

Arrangers

" and each an "

Arranger

"); and

(4)

The Export-Import Bank Of China

, acting as agent through its office at No. 30, Fu

Xing Men Nei Street, Xicheng District, Beijing 100031, The People's Republic of

China (in that capacity the "

Agent

"); and

(5)

The Export-Import Bank Of China

, acting as security agent through its office at No.

30, Fu Xing Men Nei Street, Xicheng District, Beijing 100031, The People's Republic

of China (in that capacity the "

Security Agent

").

Whereas:

(A)

Each Borrower has agreed to purchase the relevant Vessel from the Builder on the

terms of the relevant Building Contract and intends to register that Vessel under an

Approved Flag.

(B)

Each of the Lenders has agreed to advance to the Borrowers on a joint and several

basis its Commitment (aggregating, with all the other Commitments up to the

Maximum Loan Amount) in two (2) Tranches to assist the Borrowers to finance part of

the acquisition cost of the Vessels.

It is agreed

as follows:

1

Definitions and Interpretation

1.1

In this Agreement:

"

Account Holder

" means DNB Bank ASA acting through its branch at 8th Floor, The

Walbrook Building, 25 Walbrook, London EC4N 8AF or any other bank or financial

institution which at any time, with the Security Agent's prior written consent, holds the

Earnings Account.

"

Administration

" has the meaning given to it in paragraph 1.1.3 of the ISM Code.

"

Annex VI

" means Annex VI (Regulations for the Prevention of Air Pollution from

Ships) to the International Convention for the Prevention of Pollution from Ships 1973

(as modified in 1978 and 1997).

LONLIVE\107610866.5

1

"

Approved Brokers

" means together, H. Clarkson and Company Ltd of London,

England, Arrow Research Ltd. of London, England, Astrup Fearnley A/S of Oslo,

Norway, R.S. Platou Shipbrokers of Oslo, Norway, Braemar Seascope of London,

England, Galbraiths Limited of London, England, Simpson Spence & Young of

London, England, VesselsValue, Maersk Brokers K/S and E.A. Gibson Shipbrokers

London and any other independent firm of shipbrokers nominated by the Borrowers

and approved by the Agent and "

Approved Broker

" means any one of them.

"

Approved Flag

" means, in respect of each Vessel, the flag of the Marshall Islands.

"

Assignments

" means the first priority deeds of assignment from the Borrowers

referred to in Clauses 10.1.2 and 10.1.7 (

Security Documents

).

"

Availability Termination Date

" means 12 March 2017 or such later date as all the

Lenders may in their discretion agree.

"

Break Costs

" means all sums payable by the Borrowers from time to time under

Clause 8.3 (

Break Costs

).

"

Builder

" means Jiangnan Shipyard (Group) Co., Ltd., a company incorporated

under the laws of the People's Republic of China with its registered office at 988,

Changxing Jiangnan Road, Changxing District, Chongming County, Shanghai

201913, the People’s Republic of China.

"

Building Contracts

" means the two contracts each dated 17 May 2013 on the terms

and subject to the conditions of which the Builder has agreed to construct the

Vessels for, and deliver the Vessel to, the Borrowers and "

Building Contract

" means

any one of them.

"

Business Day

" means a day (other than a Saturday or Sunday) on which banks are

open for general business in New York, London, Athens and Beijing and (in relation

to the fixing of an interest rate) which is a US Government Securities Business Day.

"

Charter

" means in respect of a Vessel any bareboat charter, time charter or other

contract of employment, with a period of duration of more than twelve (12) months

(or which is capable of exceeding twelve (12) months duration (inclusive of any

extension options)), in respect of that Vessel entered or to be entered into between

the relevant Borrower (as owner) and a charterer and "

Charters

" means all of them.

''

CME Term SOFR

'' means the Term SOFR reference rate administered by CME

Group Benchmark Administration Limited (or any other person which takes over the

administration of that rate) for the relevant period published (before any correction,

recalculation or republication by the administrator) by CME Group Benchmark

Administration Limited (or any other person which takes over the publication of that

rate).

"

Code

" means the US Internal Revenue Code of 1986.

"

Commitment

" means, in relation to a Lender, the amount of the Loan which that

Lender agrees to advance to the Borrowers as its several liability as indicated

against the name of that Lender in Schedule 2 (

The Lenders and the Commitments

)

and/or, where the context permits, the amount of the Loan advanced by that Lender

and remaining outstanding and "

Commitments

" means more than one of them.

"

Compliance Certificate

" means a certificate substantially in the form set out in

Schedule 6 (

Form of Compliance Certificate

).

"

Credit Adjustment Spread

" means 0.15% per annum.

"

Currency of Account

" means, in relation to any payment to be made to a Finance

Party under a Finance Document, the currency in which that payment is required to be

made by the terms of that Finance Document.

"

Default

" means an Event of Default or any event or circumstance which would (with

the expiry of a grace period, the giving of notice, the making of any determination

under the Finance Documents or any combination of any of the foregoing) be an

Event of Default.

"

Delivery Date

" means the date of actual delivery of a Vessel to a Borrower under a

Building Contract.

"

Diana

" means Diana Shipping Services S.A., a company incorporated under the

laws of the Republic of Panama with its registered office at Edificio Universal, Piso

12, Avenida Federico Boyd, Panama, Republic of Panama, having its established

office in Greece at Pendelis 16, 175 64 Palaio Faliro, Athens, Greece pursuant to the

provisions of Greek Law 27/1975.

"

DOC

" means, in relation to the ISM Company, a valid Document of Compliance

issued for the ISM Company by the Administration under paragraph 13.2 of the ISM

Code.

"

Dollars

", "

$

" and "

USD

" each means available and freely transferable and convertible

funds in the lawful currency of the United States of America.

"

Drawdown Date

" means the date on which the relevant Tranche is advanced under

Clause 4 (

Advance

).

"

Drawdown Notice

" means a notice substantially in the form set out in Schedule 5

(

Form of Drawdown Notice

).

"

Earnings

" means (i) all hires, freights, pool income and other sums payable to or for

the account of a Borrower in respect of a Vessel including (without limitation) all

remuneration for salvage and towage services, demurrage and detention moneys,

contributions in general average, compensation in respect of any requisition for hire,

and damages and other payments (whether awarded by any court or arbitral tribunal

or by agreement or otherwise) for breach, termination or variation of any contract for

the operation, employment or use of a Vessel and (ii) to the extent not included in (i)

above all rights, title, interest and benefits of any Charter.

"

Earnings Accounts

" means the bank accounts to be opened in the names of the

Borrowers with the Account Holder and designated "Aster Shipping Company Inc. -

Earnings Account" and "Aerik Shipping Company Inc. - Earnings Account"

respectively, and "

Earnings Account

" means any one of them.

"

Earnings Account Charges

" means the deeds of charge referred to in Clause

10.1.4 (

Security Documents

) and "

Earnings Account Charge

" means any one of

them.

"

Encumbrance

" means a mortgage, charge, assignment, pledge, lien, or other

security interest securing any obligation of any person or any other agreement or

arrangement having a similar effect.

"

Environmental Laws

" means all local, state, provincial, federal, state local, foreign

and international laws, regulations, treaties and conventions (including any

amendments and/or protocols thereto) for the time being in force pertaining to the

pollution or protection of human health or the environment (including ambient air,

surface water, ground water, land surface or subsurface strata and all or any part of

navigable waters, waters of the contiguous zone, ocean waters and international

waters (howsoever called)), including laws, regulations, treaties and conventions

(including any amendments and/or protocols thereto) for the time being in force.

"

Event of Default

" means any of the events or circumstances set out in Clause 13.1

(

Events of Default

).

"

Facility Period

" means the period beginning on the date of this Agreement and

ending on the date when the whole of the Indebtedness has been paid in full and the

Security Parties have ceased to be under any further actual or contingent liability to

the Finance Parties under or in connection with the Finance Documents.

"

Fair Market Value

" means the market value of a Vessel calculated in accordance

with Clause 10.13 (

Fair Market Value determination

).

"

FATCA

" means:

(a)

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

(b)

any treaty, law or regulation of any other jurisdiction, or relating to an

intergovernmental agreement between the US and any other jurisdiction,

which (in either case) facilitates the implementation of any law or regulation

referred to in paragraph (a) above; or

(c)

any agreement pursuant to the implementation of any treaty, law or

regulation referred to in paragraphs (a) or (b) above with the US Internal

Revenue Service, the US government or any governmental or taxation

authority in any other jurisdiction.

"

FATCA Application Date

" means:

(a)

in relation to a "withholdable payment" described in section 1473(1)(A)(i) of

the Code (which relates to payments of interest and certain other payments

from sources within the US), 1 July 2014; or

(b)

in relation to a "passthru payment" described in section 1471(d)(7) of the

Code not falling within (a), the first date from which such payment may

become subject to a deduction or withholding required by FATCA.

"

FATCA Deduction

" means a deduction or withholding from a payment under a

Finance Document required by FATCA.

"

FATCA Exempt Party

" means a Party that is entitled to receive payments free from

any FATCA Deduction.

"

Final Maturity Date

" means the earlier of (a) the date falling 180 months after the

Drawdown Date of the relevant Tranche and (b) 12 March 2032.

"

Finance Documents

" means this Agreement, the Security Documents and any other

document designated as such by the Agent and the Borrowers and "

Finance

Document

" means any one of them.

"

Finance Parties

" means the Agent, the Arrangers, the Security Agent and the

Lenders and "

Finance Party

" means any one of them.

"

Financial Indebtedness

" means any obligation for the payment or repayment of

money, whether present or future, actual or contingent, in respect of:

(a)

moneys borrowed or raised and debit balances at banks;

(b)

any acceptance or documentary credit facilities;

(c)

any bond, note, debenture, loan stock or similar debt instrument;

(d)

any finance leases and hire purchase contracts;

(e)

receivables sold or discounted (other than on a non-recourse basis);

(f)

swaps, forward exchange contracts, futures and other derivatives;

(g)

any other transaction (including without limitation forward sale or purchase

agreements) having the commercial effect of a borrowing or raising of money

or of any of (b) to (f) above; and

(h)

guarantees in respect of indebtedness of any person falling within any of (a)

to (g) above.

"

GAAP

" means generally accepted accounting principles in the United States of

America.

"

Guarantee

" means the guarantee and indemnity referred to in Clause 10.1.3

(

Security Documents

).

"

Guarantor

" means Diana Shipping Inc., a company incorporated under the laws of

the Republic of the Marshall Islands with its registered address at Trust Company

Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 and/or

(where the context permits) any other person who shall at any time during the Facility

Period give to the Lenders or to the Security Agent on their behalf a guarantee and/or

indemnity for the repayment of all or part of the Indebtedness.

"

Group

" means the Guarantor and its Subsidiaries from time to time (including, but

not limited to, the Borrowers) and "

member of the Group

" shall be construed

accordingly.

"

IAPPC

" means a valid international air pollution prevention certificate for a Vessel

issued under Annex VI.

"

Indebtedness

" means the aggregate from time to time of: the amount of the Loan

outstanding; all accrued and unpaid interest on the Loan; and all other sums of any

nature (together with all accrued and unpaid interest on any of those sums) payable

to any of the Finance Parties under all or any of the Finance Documents.

"

Insurances

" means all policies and contracts of insurance (including all entries in

protection and indemnity or war risks associations) which are from time to time taken

out or entered into in respect of or in connection with a Vessel or her increased value

or her Earnings and (where the context permits) all benefits under such contracts and

policies, including all claims of any nature and returns of premium.

"

Interpolated CME Term SOFR

" means the rate (rounded to the same number of

decimal places as CME Term SOFR) which results from interpolating on a linear

basis between:

(a)

either:

(i)

the applicable CME Term SOFR (as of the Quotation Day) for the

longest period (for which CME Term SOFR is available) which is

less than the Interest Period of the relevant Tranche; or

(ii)

if no such CME Term SOFR is available for a period which is less

than the Interest Period of the relevant Tranche, SOFR for the day

which is two US Government Securities Business Days before the

Quotation Day; and

(b)

the applicable CME Term SOFR (as of the Quotation Day) for the shortest

period (for which CME Term SOFR is available) which exceeds the Interest

Period of the relevant Tranche.

"

Interest Payment Date

" means each date for the payment of interest in accordance

with Clause 7.6 (

Accrual and payment of interest

).

"

Interest Period

" means each period for the determination and payment of interest

selected by the Borrowers or agreed or selected by the Agent pursuant to Clause 6

(

Interest

).

"

ISM Code

" means the International Management Code for the Safe Operation of

Ships and for Pollution Prevention.

"

ISM Company

" means, at any given time, the company responsible for a Vessel's

compliance with the ISM Code under paragraph 1.1.2 of the ISM Code.

"

ISPS Code

" means the International Ship and Port Facility Security Code.

"

ISPS Company

" means, at any given time, the company responsible for a Vessel's

compliance with the ISPS Code.

"

ISSC

" means a valid international ship security certificate for a Vessel issued under

the ISPS Code.

"

LIBOR

" means:

(a)

the applicable Screen Rate; or

(b)

(if no Screen Rate is available for any Interest Period) the arithmetic mean of

the rates (rounded upwards to four decimal places) as supplied to the Agent

at its request by leading banks in the London interbank market,

at 11.00 a.m. two (2) Business Days before the first day of the relevant Interest Period

for the offering of deposits in Dollars in an amount comparable to the relevant Tranche

and for a period comparable to the relevant Interest Period and, if any such rate is

below zero, LIBOR will be deemed to be zero.

"

Loan

" means the aggregate amount of the Tranches advanced or to be advanced

by the Lenders to the Borrowers under Clause 4 (

Advance

) or, where the context

permits, the amount advanced and for the time being outstanding.

"

Majority Lenders

" means a Lender or Lenders whose Commitments aggregate

more than eighty per cent (80%) of the aggregate of all the Commitments.

"

Management Agreements

" means the agreements for the commercial and/or

technical management of the Vessels entered or to be entered into between the

Borrowers respectively and the Managers and "

Management Agreement

" means any

one of them.

"

Managers

" means Diana or such other commercial and/or technical managers of the

Vessels as nominated by the Borrowers and approved by the Agent.

"

Managers' Undertakings

" means the letters of undertaking in respect of the Vessels

referred to in Clause 10.1.7 (

Security Documents

) and "

Managers' Undertaking

"

means any one of them.

"

Margin

" means two point three per cent (2.3%) per annum.

"

Market Disruption Rate

" means the percentage rate per annum which is the

aggregate of the Reference Rate and the Credit Adjustment Spread.

"

Maximum Tranche Amount

" means:

(a)

in respect of Tranche A, an amount not exceeding the lesser of (i) twenty nine

million and two hundred and twenty thousand Dollars ($29,220,000) and (ii)

seventy per cent (70%) of the Fair Market Value of Vessel A on the basis of

the valuations to be obtained by the Agent pursuant to Clause 3.1 (

Conditions

precedent

); and

(b)

in respect of Tranche B, an amount not exceeding the lesser of (i) twenty nine

million and two hundred and twenty thousand Dollars ($29,220,000) and (ii)

seventy per cent (70%) of the Fair Market Value of Vessel B on the basis of

the valuations to be obtained by the Agent pursuant to Clause 3.1 (

Conditions

precedent

).

"

Maximum Loan Amount

" means an aggregate amount not exceeding $58,440,000.

"

Mortgages

" means the preferred or statutory (as the context shall require)

mortgages referred to in Clause 10.1.1 (

Security Documents

) and "

Mortgage

" means

any one of them.

"

Negative Share Pledges

" means the negative pledges of shares referred to in

Clause 10.1.5 (

Security Documents

) and "

Negative Share Pledge

" means any one

of them.

"

Original Financial Statements

" means the audited consolidated financial

statements of the Borrowers and the Guarantor for the financial year ended 31

December 2014.

"

Palios Family

" means, together, each of the following:

(a)

Mr Simeon Palios;

(b)

all the lineal descendants in direct line of Mr Palios;

(c)

a husband or wife or widower or widow of any of the above persons;

(d)

the estates, trusts or legal representatives of which any of the above persons

are the beneficiaries; and

(e)

each company legally or beneficially owned or (as the case may be)

controlled by one or more of the persons or entities which would fall within

paragraphs

(a)

to (d) of this definition,

and each one of the above shall be referred to as "

a member of the Palios Family

";

"

Party

" means a party to this Agreement.

"

Permitted Encumbrance

" means (a) any Encumbrance which has been disclosed

in writing to, and approved in writing by, the Agent on the date of this Agreement, or

(b) any Encumbrance in favour of the Security Agent pursuant to the Finance

Documents, or (c) any lien on a Vessel for master's, officer's or crew's wages

outstanding in the ordinary course of trading, or (d) any lien for salvage, or (e) any

ship repairer's or outfitter's possessory lien on a Vessel for a sum not (except with

the prior written consent of the Agent) exceeding two million Dollars ($2,000,000), or

(f) any other liens incurred in the ordinary course of business by operation of law and

securing Borrowers' overdue obligations of no longer than thirty (30) days from the

date of their occurrence or (g) Encumbrances arising by operation of law in respect of

taxes which are not overdue for payment in respect of taxes being contested in good

faith by appropriate steps and, in each case, in respect of which appropriate reserves

have been made.

"

Pledgor

" means the Guarantor in its capacity as pledgor and shareholder of the

Borrowers.

"

Prepositioning Date

" means the date which is three Business Days before the

Delivery Date.

"

Proportionate Share

" means, at any time, the proportion which a Lender's

Commitment (whether or not advanced) then bears to the aggregate Commitments of

all the Lenders (whether or not advanced).

"

Quotation Day

" means, in relation to any period for which an interest rate is to be

determined two US Government Securities Business Days before the first day of that

period, unless market practice differs in the relevant syndicated loan market, in which

case the Quotation Day will be determined by the Agent in accordance with that market

practice (and if quotations would normally be given on more than one day, the

Quotation Day will be the last of those days).

"

Rate Switch Date

" means 21 July 2023. "

Reference

Rate

" means, in relation to any Tranche:

(a)

the applicable CME Term SOFR as of the Quotation Day and for a period

equal in length to the Interest Period of that Tranche; or

(b)

as otherwise determined pursuant to Clauses 7.9.1 or 7.9.2,

and if, in either case, that rate is less than zero, the Reference Rate shall be deemed

to be zero.

"

Relevant Documents

" means the Finance Documents, the Building Contracts, the

Charters, the Management Agreements and the Account Holder's confirmation

specified in Part 1 of Schedule 3 (

Conditions precedent

).

"

Relevant Market

" means the market for overnight cash borrowing collateralised by

US Government securities.

"

Repayment Date

" means the date for payment of any Repayment Instalment in

accordance with Clause 5.1 (

Repayment of Tranches

).

"

Repayment Instalment

" means any instalment of the Loan to be repaid by the

Borrowers under Clause 5.1 (

Repayment of Tranches

).

"

Requisition Compensation

" means all compensation or other money which may

from time to time be payable to a Borrower as a result of a Vessel being requisitioned

for title or in any other way compulsorily acquired (other than by way of requisition for

hire).

"

Screen Rate

" means, in relation to LIBOR, the London interbank offered rate

administered by ICE Benchmark Administration Limited (or any other person which

takes over the administration of that rate) for the relevant currency and period

displayed on pages LIBOR01 or LIBOR02 of the Reuters screen (or any replacement

Reuters page which displays that rate) or on the appropriate page of such other

information service which publishes that rate from time to time in place of Reuters. If

such page or the service ceases to be available, the Agent may specify another page

or service displaying the appropriate rate after consultation with the Borrowers and

the Lenders.

"

Security Documents

" means the Mortgages, the Assignments, the Guarantee, the

Earnings Account Charges, the Negative Share Pledges, the Managers

Undertakings and any other agreement or document which may at any time be

executed by any person as security for the payment of all or any part of the

Indebtedness and "

Security Document

" means any one of them.

"

Security Parties

" means the Borrowers, the Guarantor, the Pledgor, the Managers

and any other person who may at any time during the Facility Period be liable for, or

provide security for, all or any part of the Indebtedness, and "

Security Party

" means

any one of them.

"

SMC

" means a valid safety management certificate issued for a Vessel by or on

behalf of the Administration under paragraph 13.7 of the ISM Code.

"

SMS

" means a safety management system for a Vessel developed and

implemented in accordance with the ISM Code.

"

SOFR

" means the secured overnight financing rate (SOFR) administered by the

Federal Reserve Bank of New York (or any other person which takes over the

administration of that rate) published (before any correction, recalculation or

republication by the administrator) by the Federal Reserve Bank of New York (or any

other person which takes over the publication of that rate).

"

Subsidiaries

" means any company or entity directly or indirectly controlled by such

person, and for this purpose "control" means either the ownership of more than fifty

per cent (50%) of the voting share capital (or equivalent rights of ownership) of such

company or entity or the power to direct its policies and management, whether by

contract or otherwise and "

Subsidiary

" means any one of them.

"

Tax

" means any tax, levy, impost, duty or other charge or withholding of a similar

nature (including any penalty or interest payable in connection with any failure to pay

or any delay in paying any of the same).

"

Total Loss

" means:

(a)

an actual, constructive, arranged, agreed or compromised total loss of a

Vessel; or

(b)

the requisition for title or compulsory acquisition of a Vessel by any

government or other competent authority (other than by way of requisition

for hire); or

(c)

the capture, seizure, arrest, detention, hijacking, theft, condemnation as

prize, confiscation or forfeiture of a Vessel (not falling within (b) above),

unless that Vessel is released and returned to the possession of the

relevant Borrower within thirty (30) days after the capture, seizure, arrest,

detention, hijacking, theft, condemnation as prize, confiscation or forfeiture in

question.

"

Tranches

" means Tranche A and Tranche B and "

Tranche

" means any one of them.

"

Tranche A

" means an amount of the Loan advanced or to be advanced by the

Lenders to the Borrowers in respect of Vessel A not exceeding the relevant

Maximum Tranche Amount or, where the context permits, the amount thereof

advanced and for the time being outstanding.

"

Tranche B

" means an amount of the Loan advanced or to be advanced by the

Lenders to the Borrowers in respect of Vessel B not exceeding the relevant

Maximum Tranche Amount or, where the context permits, the amount thereof

advanced and for the time being outstanding.

"

Transfer Certificate

" means a certificate substantially in the form set out in

Schedule 6 (

Form of Transfer Certificate

) or any other form agreed between the Agent

and the Borrowers.

"

Transfer Date

" means, in relation to any Transfer Certificate, the later of:

(a)

the proposed Transfer Date specified in the Transfer Certificate; and

(b)

the date on which the Agent executes the Transfer

Certificate. "

Trust Property

" means:

(a)

all benefits derived by the Security Agent from Clause 10 (

Security and

Application of Moneys

); and

(b)

all benefits arising under (including, without limitation, all proceeds of the

enforcement of) each of the Security Documents,

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

"

US

" means the United States of America.

"

US Tax Obligor

" means:

(a)

a Borrower which is resident for tax purposes in the US; or

(b)

a Security Party some or all of whose payments under the Finance

Documents are from sources within the US for US federal income tax

purposes.

"

Vessels

" means Vessel A and Vessel B and "

Vessel

" means any one of them.

"

Vessel A

" means the 208,500 dwt bulk carrier and everything now or in the future

belonging to her on board and ashore, currently under construction by the Builder with

the Builder's hull number H2548 for Aster Shipping Company Inc. on the terms of the

relevant Building Contract and, on delivery to that Borrower, intended to be registered

under an Approved Flag in the ownership of that Borrower.

"

Vessel B

" means the 208,500 dwt bulk carrier and everything now or in the future

belonging to her on board and ashore, currently under construction by the Builder with

the Builder's hull number H2549 for Aerik Shipping Company Inc. on the terms of the

relevant Building Contract and, on delivery to that Borrower, intended to be registered

under an Approved Flag in the ownership of that Borrower.

"

US Government Securities Business Day

" means a day other than:

(a)

a Saturday or Sunday; and

(b)

a day on which the Securities Industry and Financial Markets Association

(or any successor organisation) recommends that the fixed income

departments of its members be closed for the entire day for purposes of

trading in US Government securities.

1.2

In this Agreement:

1.2.1

words denoting the plural number include the singular and vice versa;

1.2.2

words denoting persons include corporations, partnerships, associations of

persons (whether incorporated or not) or governmental or quasi-

governmental bodies or authorities and vice versa;

1.2.3

references to Recitals, Clauses and Schedules are references to recitals,

clauses and schedules to or of this Agreement;

1.2.4

references to this Agreement include the Recitals and the Schedules;

1.2.5

the headings and contents page(s) are for the purpose of reference only, have

no legal or other significance, and shall be ignored in the interpretation of this

Agreement;

1.2.6

references to any document (including, without limitation, to all or any of the

Relevant Documents) are, unless the context otherwise requires, references

to that document as amended, supplemented, novated or replaced from time

to time;

1.2.7

a Lender's "

cost of funds

" in relation to its participation in a Tranche is a

reference to the average cost (determined either on an actual or a notional

basis) which that Lender would incur if it were to fund, from whatever

source(s) it may reasonably select, an amount equal to the amount of that

participation in that Tranche for a period equal in length to the Interest Period

of that Tranche;

1.2.8

references to "

indebtedness

" include any obligation (whether incurred as

principal or as surety) for the payment or repayment of money, whether

present or future, actual or contingent;

1.2.9

references to statutes or provisions of statutes are references to those

statutes, or those provisions, as from time to time amended, replaced or re-

enacted;

1.2.10

references to any Finance Party include its successors, transferees and

assignees; and

1.2.11

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

1.3

Offer letter

This Agreement supersedes the terms and conditions contained in any

correspondence relating to the subject matter of this Agreement exchanged between

any Finance Party and the Borrowers or their representatives prior to the date of this

Agreement.

2

The Loan and its Purpose

2.1

Amount

Subject to the terms of this Agreement, the Lenders agree to make available to the

Borrowers a term loan comprising all the Tranches and not exceeding in aggregate

the Maximum Loan Amount.

2.2

Finance Parties' obligations

The obligations of each Finance Party under the Finance Documents are several.

Failure by a Finance Party to perform its obligations under the Finance Documents

does not affect the obligations of any other party to the Finance Documents. No

Finance Party is responsible for the obligations of any other Finance Party under the

Finance Documents.

2.3

Purpose

The Borrowers shall apply the Loan for the purposes referred to in Recital (B).

2.4

Monitoring

No Finance Party is bound to monitor or verify the application of any amount borrowed

under this Agreement.

3

Conditions of Utilisation

3.1

Conditions precedent

The Borrowers are not entitled to have any Tranche advanced unless the Agent has

received all of the documents and other evidence listed in Part 1 of Schedule 3

(

Conditions precedent

), save that references in Section 2 of that Part 1 to "the Vessel"

or to any person or document relating to a Vessel shall be deemed to relate solely to

any Vessel specified in the relevant Drawdown Notice or to any person or document

relating to that Vessel respectively.

3.2

Further conditions precedent

The Lenders will only be obliged to advance a Tranche if on the date of the

Drawdown Notice and on the proposed Drawdown Date:

3.2.1

no Default has occurred or would result from the advance of that Tranche;

3.2.2

the representations made by the Borrowers under Clause 11

(

Representations

) are true in all material respects; and

3.2.3

no event or series of events has occurred which, in the opinion of the Agent,

is likely to have a materially adverse effect on the business, assets, financial

condition or credit worthiness of a Security Party.

3.3

Tranche limit

The Lenders will only be obliged to advance a Tranche if that Tranche will not

exceed the relevant Maximum Tranche Amount nor increase the Loan to a sum in

excess of the Maximum Loan Amount Tranche Amount for the relevant Vessel.

3.4

Conditions subsequent

The Borrowers undertake to deliver or to cause to be delivered to the Agent on, or as

soon as practicable after, the relevant Drawdown Date or on such other later date as

the Agent may agree in its discretion, the additional documents and other evidence

listed in Part 2 of Schedule 3 (

Conditions subsequent

), save that references in that

Part 2 to "the Vessel" or to any person or document relating to a Vessel shall be

deemed to relate solely to any Vessel specified in the relevant Drawdown Notice or

to any person or document relating to that Vessel respectively.

3.5

No waiver

If the Lenders in their sole discretion agree to advance a Tranche to the Borrowers

before all of the documents and evidence required by Clause 3.1 (

Conditions

precedent

) have been delivered to or to the order of the Agent, the Borrowers

undertake to deliver all outstanding documents and evidence to or to the order of the

Agent no later than the date specified by the Agent (acting on the instructions of all

the Lenders).

The advance of a Tranche under this Clause 3.5 shall not be taken as a waiver of the

Lenders' right to require production of all the documents and evidence required by

Clause 3.1 (

Conditions precedent

).

3.6

Form and content

All documents and evidence delivered to the Agent under this Clause 3 shall:

3.6.1

be in form and substance acceptable to the Agent; and

3.6.2

if required by the Agent, be certified, notarised, legalised or attested in a

manner acceptable to the Agent.

4

Advance

4.1

Drawdown Request

The Borrowers may request a Tranche to be advanced in one amount on any

Business Day prior to the relevant Availability Termination Date by delivering to the

Agent a duly completed original Drawdown Notice not fewer than six (6) Business

Days before the proposed Drawdown Date and any undrawn part of a Tranche shall

be cancelled and shall not be available for borrowing by the Borrowers on the earlier

of (a) the relevant Drawdown Date, once the Tranche has been advanced and (b)

the relevant Availability Termination Date. Any such Drawdown Notice shall be signed

by authorised signatories of the Borrowers and, once delivered, is irrevocable.

4.2

Lenders' participation

Subject to Clauses 2 (

The Loan and its Purpose

)

,

3 (

Conditions of Utilisation

) and

4.3 (

Prepositioning of funds

), the Agent shall promptly notify each Lender of the

receipt of a Drawdown Notice, following which each Lender shall advance its

Proportionate Share of the relevant Tranche to the Borrowers through the Agent on

the relevant Drawdown Date.

4.3

Prepositioning of funds

The Agent shall, subject to the Agent being satisfied that it will receive by no later than

the Delivery Date all of the documents and evidence listed in Part 1 of Schedule 4

(

Conditions precedent

) (unless waived pursuant to this Agreement), at the request of

the Borrower and in accordance with the terms of the relevant Building Contract and

on terms and conditions reasonably acceptable to all the Lenders, preposition on the

Prepositioning Date such part of the Loan as is to be used to finance the amount of

the instalment of the contract price payable on the Delivery Date of the relevant

Vessel under the relevant Building Contract to the Builder as has been received by it

from the Lenders.

The prepositioning of such funds shall constitute an advance of the Loan under this

Clause 4 (

Advance

).

5

Repayment

5.1

Repayment of Tranches

The Borrowers agree to repay each Tranche to the Agent for the account of the

Lenders by 60 quarterly instalments, each in the relevant amount set out below:

Tranche A

$487,000.00

Tranche B

$487,000.00

The first instalment shall fall due on whichever of 21 January, 21 April, 21 July or 21

October that next falls not less than six weeks after the Drawdown Date in respect of

that Tranche and subsequent instalments shall fall due on each 21 January, 21 April,

21 July or 21 October thereafter. The final instalment shall fall due on the earlier of:

5.1.1

whichever of 21 January, 21 April, 21 July or 21 October that next falls after

the 59th instalment; and

5.1.2

the Final Maturity Date in respect of that Tranche.

5.2

Reduction of Repayment Instalments

If the aggregate amount advanced to the Borrowers under a Tranche is less than

$29,220,000, the amount of each Repayment Instalment in respect of that Tranche

shall be reduced pro rata to the amount actually advanced.

5.3

Reborrowing

The Borrowers may not reborrow any part of the Loan which is repaid or prepaid.

6

Prepayment

6.1

Illegality

If it becomes unlawful in any jurisdiction for a Lender to perform any of its obligations

as contemplated by this Agreement or to fund or maintain its Commitment:

6.1.1

that Lender shall promptly notify the Agent of that event;

6.1.2

upon the Agent notifying the Borrowers, such Lender's Commitment (to the

extent not already advanced) will be immediately cancelled; and

6.1.3

the Borrowers shall repay a sum equal to such Lender's Commitment in

respect of each Tranche (to the extent already advanced) on the last day of

its current Interest Period or, if earlier, the date specified by that Lender in

the notice delivered to the Agent and notified by the Agent to the Borrowers

(being no earlier than the last day of any applicable grace period permitted

by law) and the remaining Repayment Instalments in respect of that Tranche

shall be reduced pro rata.

6.2

Voluntary prepayment of Tranches

The Borrowers may prepay the whole or any part of a Tranche (but, if in part, being

an amount that reduces that Tranche by an amount which is an integral multiple of

the amount of a quarterly instalment in respect of that Tranche pursuant to Clause 5

(

Repayment

)) subject as follows:

6.2.1

they give the Agent not less than fifteen (15) Business Days' prior written

notice;

6.2.2

no prepayment may be made until after the relevant Availability Termination

Date; and

6.2.3

any prepayment under this Clause 6.2 shall be applied in prepayment of the

remaining Repayment Instalments in respect of the relevant Tranche in

inverse order of maturity.

6.3

Mandatory prepayment on sale or Total Loss

If a Vessel is sold by a Borrower or becomes a Total Loss, the Borrowers shall,

simultaneously with any such sale or on the earlier of the date falling one hundred and

twenty (120) days after any such Total Loss and the date on which the proceeds of

any such Total Loss are realised, prepay the whole of the outstanding Indebtedness

in respect of the Tranche for the Vessel in question.

6.4

Restrictions

Any notice of prepayment given under this Clause 6 shall be irrevocable and, unless

a contrary indication appears in this Agreement, shall specify the date or dates upon

which the relevant prepayment is to be made and the amount of that prepayment.

Any prepayment under this Agreement shall be made together with accrued interest

on the amount prepaid and, subject to any Break Costs without premium or penalty.

If the Agent receives a notice under this Clause 6 it shall promptly forward a copy of

that notice to the Borrowers or the Lenders, as appropriate.

7A Rate Switch

7A.1

Switch to CME Term SOFR Rate

Subject to Clause 7A.2 (

Delayed switch

), on and

from the Rate Switch Date:

7A.1.1 use of the Reference Rate will replace the use of LIBOR for the calculation

of interest; and

7A.1.2 Clause 7.5.2 shall apply to each Tranche or Unpaid Sum.

8A.2

Delayed switch

If the Rate Switch Date falls before the last day of an Interest Period

for a Tranche:

7A.2.1 Clause 7.5.1 shall continue to apply to that Tranche for that Interest Period;

and

7A.2.2 on and from the first day of the next Interest Period (if any) for that Tranche,

Clause 7.5.2 shall apply to that Tranche.

7

Interest

7.1

Interest Periods

The period during which each Tranche shall be outstanding under this Agreement

shall be divided into consecutive Interest Periods of three (3) months' duration or such

other duration as may be agreed between the Borrowers and the Lenders not

later than

11.00 a.m. on the third Business Day before the beginning of the Interest Period in

question.

7.2

Beginning and end of Interest Periods

Each Interest Period shall start on the Drawdown Date of the relevant Tranche or (if a

Tranche is already made) on the last day of the preceding Interest Period and end on

whichever of 21 January, 21 April, 21 July or 21 October that next falls after the

Drawdown Date of that Tranche or the last day of the preceding Interest Period in the

relevant calendar month which shall be a Repayment Date, except that, if there is no

numerically corresponding date in that calendar month, the Interest Period shall end

on the last Business Day in that month.

7.3

Interest Periods to meet Repayment Dates

If an Interest Period will expire after the next Repayment Date in respect of the

relevant Tranche, there shall be a separate Interest Period for a part of that Tranche

equal to the Repayment Instalment due on that next Repayment Date and that

separate Interest Period shall expire on that next Repayment Date.

7.4

Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that

Interest Period will instead end on the next Business Day in that calendar month (if

there is one) or the preceding Business Day (if there is not).

7.5

Interest rate

7.5.1

During each Interest Period starting prior to the Rate Switch Date, interest

shall accrue on the Loan at the rate determined by the Agent to be the

aggregate of (a) the Margin and (b) LIBOR.

7.5.2

On or after the Rate Switch Date (and subject to Clause 7A.2 (

Delayed

switch

)), the rate of interest on each Tranche for each relevant Interest Period

is the percentage rate per annum which is the aggregate of the applicable:

(a)

Margin; and

(b)

Reference Rate; and

(c)

Credit Adjustment Spread.

7.6

Accrual and payment of interest

Interest shall accrue from day to day, shall be calculated on the basis of a 360 day

year and the actual number of days elapsed (or, in any circumstance where market

practice differs, in accordance with the prevailing market practice) and shall be paid

by the Borrowers to the Agent for the account of the Lenders on the last day of each

Interest Period and, if the Interest Period is longer than three (3) months, on the dates

falling at three (3) monthly intervals after the first day of that Interest Period.

7.7

Default interest

If (a) a Borrower fails to pay any amount payable by it under a Finance Document on

its due date or (b) an Event of Default has occurred and is continuing and notice has

been given to the Borrowers, interest shall accrue on the overdue amount or on the

amount of the Loan respectively from the due date or the date of the notice

respectively up to the date of actual payment (both before and after judgment) or the

date of remedy of the Event of Default to the Agent's full satisfaction at a rate which

is two per cent (2%) higher than the rate which would have been payable if the

overdue amount had, during the period of non-payment or Event of Default,

constituted the Loan in the currency of the overdue amount for successive Interest

Periods, each selected by the Agent (acting reasonably). Any interest accruing under

this Clause 7.7 shall be immediately payable by that Borrower on demand by the

Agent. If unpaid, any such interest will be compounded with the overdue amount at

the end of each Interest Period applicable to that overdue amount but will remain

immediately due and payable.

7.8

Changes to calculation of Interest prior to Rate Switch Date

If prior to the Rate Switch Date, either:

7.8.1

the applicable Screen Rate is not available for any Interest Period and no

rates are quoted to the Agent to determine LIBOR for that Interest Period; or

7.8.2

a Lender or Lenders inform the Agent by written notice that its cost of funds

for any Interest Period would be in excess of LIBOR and that notice is

received by the Agent no later than close of business in London on the day

LIBOR is determined for that Interest Period,

then Clause 7.10 (

Cost of funds

) shall apply to the relevant Tranche for the relevant

Interest Period.

7.9

Changes to calculation of Interest on or after Rate Switch Date

On or after the Rate Switch Date:

7.9.1

if no CME Term SOFR is available for the Interest Period of a Tranche, the

applicable Reference Rate shall be the Interpolated CME Term SOFR for a

period equal in length to the Interest Period of that Tranche;

7.9.2

if no CME Term SOFR is available for the Interest Period of a Tranche and

it is not possible to calculate the Interpolated CME Term SOFR, then Clause

7.10 (

Cost of funds

) shall apply to that Tranche for the relevant Interest

Period;

7.9.3

if before close of business in London on the Quotation Day for the relevant

Interest Period, the Agent receives notifications from a Lender or Lenders that

its cost of funds relating to its participation in a Tranche exceeds the Market

Disruption Rate in relation to that Tranche, then Clause 7.10 (

Cost of funds

)

shall apply to the relevant Tranche for the relevant Interest Period.

7.10

Cost of funds

If this Clause 7.10 applies for any Interest Period, then:

7.10.1

the Agent shall give notice to the Lenders and the Borrowers of the

occurrence of such event; and

7.10.2

the rate of interest on the relevant Lender's Commitment for that Interest

Period shall be the rate per annum which is the sum of:

(a)

the Margin; and

(b)

the rate notified to the Agent by that Lender as soon as practicable,

and in any event before interest is due to be paid in respect of that

Interest Period, to be that which expresses as a percentage rate per

annum that Lender's cost of funds relating its Commitment in the

relevant Tranche.

7.10.3

If this Clause 7.10 (Cost of funds) applies and the Agent or the Borrowers

so require, the Agent and the Borrowers shall enter into negotiations (for a

period of not more than thirty days) with a view to agreeing a substitute basis

for determining the rate of interest.

7.10.4

Any substitute or alternative basis agreed pursuant to Clause 7.10.3 above

shall, with the prior consent of all the Lenders and the Borrowers, be binding

on all Parties.

7.11

Changes to reference rates

7.11.1

If a Published Rate Replacement Event has occurred in relation to any

Published Rate, any amendment or waiver which relates to:

(a)

providing for the use of a Replacement Reference Rate in place of

that Published Rate; and

(b)

any or all of the following:

(i)

aligning any provision of any Finance Document to the use

of that Replacement Reference Rate;

(ii)

enabling that Replacement Reference Rate to be used for

the calculation of interest under this Agreement (including,

without limitation, any consequential changes required to

enable that Replacement Reference Rate to be used for

the purposes of this Agreement);

(iii)

implementing market conventions applicable to that

Replacement Reference Rate;

(iv)

providing for appropriate fallback (and market disruption)

provisions for that Replacement Reference Rate; or

(v)

adjusting the pricing to reduce or eliminate, to the extent

reasonably practicable, any transfer of economic value from

one Party to another as a result of the application of that

Replacement Reference Rate (and if any adjustment or

method for calculating any adjustment has been formally

designated, nominated or recommended by the Relevant

Nominating Body, the adjustment shall be determined on

the basis of that designation, nomination or

recommendation),

may be made with the consent of the Agent (acting on the instructions of the

Majority Lenders) and the Borrowers.

7.11.2

In this Clause 7.11:

"

Published Rate

" means SOFR or the Term SOFR for any Quoted Tenor.

"

Published Rate Replacement Event

" means, in relation to a Published

Rate:

(a)

the methodology, formula or other means of determining that

Published Rate has, in the opinion of the Majority Lenders, materially

changed; or

(b)(i)

either

(A)

the administrator of that Published Rate or its

supervisor publicly announces that such

administrator is insolvent; or

(B)

information is published in any order, decree,

notice, petition or filing, however described, of or

filed with a court, tribunal, exchange, regulatory

authority or similar administrative, regulatory or

judicial body which reasonably confirms that the

administrator of that Published Rate is insolvent,

provided that, in each case, at that time, there is no

successor administrator to continue to provide that

Published Rate;

(ii)

the administrator of that Published Rate publicly announces

that it has ceased or will cease to provide that Published

Rate permanently or indefinitely and, at that time, there is

no successor administrator to continue to provide that

Published Rate;

(iii)

the supervisor of the administrator of that Published Rate

publicly announces that such Published Rate has been or

will be permanently or indefinitely discontinued; or

(iv)

the administrator of that Published Rate or its supervisor

announces that that Published Rate may no longer be

used; or

(c)

the administrator of that Published Rate (or the administrator of an

interest rate which is a constituent element of that Published Rate)

determines that that Published Rate should be calculated in

accordance with its reduced submissions or other contingency or

fallback policies or arrangements and either:

(i)

the circumstance(s) or event(s) leading to such

determination are not (in the opinion of the Majority

Lenders) temporary; or

(ii)

that Published Rate is calculated in accordance with any

such policy or arrangement for a period of no less than 15

Business Days; or

(b) the administrator of that Published Rate (or the administrator

of an interest rate which is a constituent element of that

Published Rate) determines that that Published Rate

should be calculated in accordance with its reduced

submissions or other contingency or fallback policies or

arrangements and either:

(d)

in the opinion of the Majority Lenders, that Published Rate is

otherwise no longer appropriate for the purposes of calculating

interest under this Agreement.

"

Quoted Tenor

" means, in relation to Term SOFR, any period for which that

rate is customarily displayed on the relevant page or screen of an information

service.

"

Relevant Nominating Body

" means any applicable central bank, regulator

or other supervisory authority or a group of them, or any working group or

committee sponsored or chaired by, or constituted at the request of, any of

them or the Financial Stability Board.

"

Replacement Reference Rate

" means a reference rate which is:

(a)

formally designated, nominated or recommended as the replacement

for a Published Rate by:

(i)

the administrator of that Published Rate (provided that the

market or economic reality that such reference rate

measures is the same as that measured by that Published

Rate); or

(ii)

any Relevant Nominating Body,

and if replacements have, at the relevant time, been formally

designated, nominated or recommended under both paragraphs, the

"

Replacement Reference Rate

" will be the replacement under

paragraph (ii) above;

(b)

in the opinion of the Majority Lenders and the Borrowers, generally

accepted in the international or any relevant domestic syndicated

loan markets as the appropriate successor to a Published Rate; or

(c)

in the opinion of the Majority Lenders and the Borrowers, an

appropriate successor to a Published Rate.

7.12

Determinations conclusive

The Agent shall promptly notify the Borrowers of the determination of a rate of interest

under this Clause 7 and each such determination shall (save in the case of manifest

error) be final and conclusive.

8

Indemnities

8.1

Transaction expenses

The Borrowers will, promptly on the Agent's written demand, pay the Agent (for the

account of the Finance Parties) the amount of all costs and expenses (including legal

fees and Value Added Tax or any similar or replacement tax if applicable) incurred

by the Finance Parties or any of them in connection with:

8.1.1

the negotiation, preparation, printing, execution, syndication and distribution

of information under this Agreement and registration of the Finance

Documents (whether or not any Finance Document is actually executed or

registered and whether or not all or any part of the Loan is advanced);

8.1.2

any amendment, addendum or supplement to any Finance Document

(whether or not completed) (other than any amendment, addendum or

supplement to any Finance Document made pursuant to Clause 14

(

Assignment and Sub-Participation

));

8.1.3

any other document which may at any time be required by a Finance Party to

give effect to any Finance Document or which a Finance Party is entitled to

call for or obtain under any Finance Document (including, without limitation,

any valuation of the Vessels obtained in accordance with this Agreement

and any insurance report); and

8.1.4

any discharge, release or reassignment of any of the Security Documents.

8.2

Funding costs

The Borrowers shall indemnify each Finance Party, by payment to the Agent (for the

account of that Finance Party) promptly on the Agent's written demand, against all

losses and costs incurred or sustained by that Finance Party if, for any reason, a

Tranche is not advanced to the Borrowers after the relevant Drawdown Notice has

been given to the Agent, or is advanced on a date other than that requested in the

Drawdown Notice (unless, in either case, as a result of any default by a Finance

Party).

8.3

Break Costs

The Borrowers shall pay to the Agent (for the account of each Lender) promptly on the

Agent's written demand the amount of all costs, losses, premiums or penalties incurred

or to be incurred by that Lender as a result of its receiving any prepayment of all or

any part of the Loan (whether pursuant to Clause 6 (

Prepayment

) or otherwise) on a

day other than the last day of an Interest Period for the Loan or relevant part of the

Loan, or any other payment under or in relation to the Finance Documents on a day

other than the due date for payment of the sum in question, including (without

limitation) any losses or costs incurred or to be incurred in liquidating or re-employing

deposits from third parties acquired to effect or maintain all or any part of the Loan.

8.4

Currency indemnity

In the event of a Finance Party receiving or recovering any amount payable under a

Finance Document in a currency other than the Currency of Account, and if the

amount received or recovered is insufficient when converted into the Currency of

Account at the date of receipt to satisfy in full the amount due, the Borrowers shall,

promptly on the Agent's written demand, pay to the Agent for the account of the

relevant Finance Party such further amount in the Currency of Account as is

sufficient to satisfy in full the amount due and that further amount shall be due to the

Agent on behalf of the relevant Finance Party as a separate debt under this

Agreement.

8.5

Increased costs (subject to Clause 8.6 (

Exceptions to increased costs

))

If, by reason of the introduction of any law, or any change in any law, or any change

in the interpretation or administration of any law, or compliance with any request or

requirement from any central bank or any fiscal, monetary or other authority occurring

after the date of this Agreement (including the implementation or application of or

compliance with the Basel II Accord or any other Basel II Regulation or Basel III

(whether such implementation, application or compliance is by any central bank or any

fiscal, monetary or other authority, a Finance Party or the holding company of a

Finance Party)):

8.5.1

a Finance Party (or the holding company of a Finance Party) shall be

subject to any Tax with respect to payment of all or any part of the

Indebtedness (other than Tax on overall net income); or

8.5.2

the basis of Taxation of payments to a Finance Party in respect of all or any

part of the Indebtedness shall be changed; or

8.5.3

any reserve requirements shall be imposed, modified or deemed applicable

against assets held by or deposits in or for the account of or loans by any

branch of a Finance Party; or

8.5.4

the manner in which a Finance Party allocates capital resources to its

obligations under this Agreement or any ratio (whether cash, capital

adequacy, liquidity or otherwise) which a Finance Party is required or

requested to maintain shall be affected; or

8.5.5

there is imposed on a Finance Party (or on the holding company of a

Finance Party) any other condition in relation to the Indebtedness or the

Finance Documents;

and the result of any of the above shall be to increase the cost to a Finance Party (or

to the holding company of a Finance Party) of that Finance Party making or maintaining

its Commitment, or to cause a Finance Party to suffer (in its opinion) a material

reduction in the rate of return on its overall capital below the level which it reasonably

anticipated at the date of this Agreement and which it would have been able to achieve

but for its entering into this Agreement, and/or performing its obligations under this

Agreement, or to cause a reduction in any amount due and payable to a Finance

Party under any of the Finance Documents, then, subject to Clause 8.6 (

Exceptions

to increased costs

), the Finance Party affected shall notify the Agent and the

Borrowers shall from time to time pay to the Agent on demand for the account of that

Finance Party the amount which shall compensate that Finance Party (or the

relevant holding company) for such additional cost or reduced return or reduced

amount. A certificate signed by an authorised signatory of that Finance Party setting

out the amount of that payment and the basis of its calculation shall be submitted to

the Borrowers and shall be conclusive evidence of such amount save for manifest

error or on any question of law.

For the purposes of this Clause 8.5:

"

Basel II Accord

" means the "International Convergence of Capital Measurement and

Capital Standards, a Revised Framework" published by the Basel Committee on

Banking Supervision in June 2004 in the form existing on the date of this Agreement;

"

Basel II Approach

" means, in relation to a Finance Party, either the Standardised

Approach or the relevant Internal Ratings Based Approach (each as defined in the

Basel II Accord) adopted by that Finance Party (or its holding company) for the purpose

of implementing or complying with the Basel II Accord;

"

Basel II Regulation

" means (a) any law or regulation implementing the Basel II

Accord or (b) any Basel II Approach adopted by a Finance Party;

"

Basel III

" means (a) the agreements on capital requirements, a leverage ratio and

liquidity standards contained in "Basel III: A global regulatory framework for more

resilient banks and banking systems", "Basel III: International framework for liquidity

risk measurement, standards and monitoring" and "Guidance for national authorities

operating the countercyclical capital buffer" published by the Basel Committee on

Banking Supervision in December 2010, each as amended, supplemented or

restated,

(b) the rules for global systemically important banks contained in "Global systemically

important banks: assessment methodology and the additional loss absorbency

requirement – Rules text" published by the Basel Committee on Banking Supervision

in November 2011, as amended, supplemented or restated and (c) any further

guidance or standards published by the Basel Committee on Banking Supervision

relating to "Basel III"; and

"

holding company

" means, in respect of a Finance Party, the company or entity (if

any) within the consolidated supervision of which that Finance Party is included.

8.6

Exceptions to increased costs

Clause 8.5 (

Increased costs

) does not apply to the extent any additional cost or

reduced return referred to in that Clause is:

8.6.1

compensated for by a payment made under Clause 8.10 (

Taxes

); or

8.6.2

compensated for by a payment made under Clause 17.3 (

Grossing-up

); or

8.6.3

attributable to a FATCA Deduction required to be made by a Party; or

8.6.4

attributable to the wilful breach by the relevant Finance Party (or the holding

company of that Finance Party) of any law or regulation.

8.7

Events of Default

The Borrowers shall indemnify each Finance Party from time to time, by payment to

the Agent (for the account of that Finance Party) promptly on the Agent's written

demand, against all losses, costs, expenses and liabilities incurred or sustained by

that Finance Party as a consequence of any Event of Default.

8.8

Enforcement costs

The Borrowers shall pay to the Agent (for the account of each Finance Party)

promptly on the Agent's written demand the amount of all costs and expenses

(including legal fees) incurred by that Finance Party in connection with the

enforcement of, or the preservation of any rights under, any Finance Document

including (without limitation) any losses, costs and expenses which that Finance

Party may from time to time sustain, incur or become liable for by reason of that

Finance Party being mortgagee of a Vessel and/or a lender to the Borrowers, or by

reason of that Finance Party being deemed by any court or authority to be an

operator or controller, or in any way concerned in the operation or control, of a

Vessel.

8.9

Other costs

The Borrowers shall pay to the Agent (for the account of each Finance Party)

promptly on the Agent's written demand the amount of all sums which that Finance

Party may pay or become actually or contingently liable for on account of a Borrower in

connection with a Vessel (whether alone or jointly or jointly and severally with any

other person) including (without limitation) all sums which that Finance Party may pay

or guarantees which it may give in respect of the Insurances, any expenses incurred

by that Finance Party in connection with the maintenance or repair of a Vessel or in

discharging any lien, bond or other claim relating in any way to a Vessel, and any

sums which that Finance Party may pay or guarantees which it may give to procure

the release of a Vessel from arrest or detention.

8.10

Taxes

The Borrowers shall pay all Taxes to which all or any part of the Indebtedness or any

Finance Document may be at any time subject (other than Tax on a Finance Party's

overall net income and FATCA Deductions required to be made by a Party) and shall

indemnify the Finance Parties, by payment to the Agent (for the account of the Finance

Parties) promptly on the Agent's written demand, against all liabilities, costs, claims

and expenses resulting from any omission to pay or delay in paying any such Taxes.

8.11

Mitigation

If circumstances arise which would, or would upon the giving of notice, result in an

increased payment required to be made by the Borrowers under Clause 8.5

(

Increased costs (subject to Clause 8.6 (Exceptions to increased costs)

) or Clause

17.3 (

Grossing- up

) then, without in any way limiting the obligations of the Borrowers

under either of these clauses, the relevant Finance Party shall use reasonable

endeavours to transfer its obligations, liabilities and rights under this Agreement and

the other Finance Documents to another of its offices not affected by the

circumstances which gave rise to such increased payment.

9

Fees

9.1

Commitment fee

The Borrowers shall pay to the Agent (for the account of the Lenders in proportion to

their Commitments) a non-refundable fee computed at the rate of 0.2% per annum

on the undrawn Commitment from time to time from the date of this Agreement until

the last Availability Termination Date. The accrued commitment fee is payable on the

last day of each successive period of three (3) months from the date of this Agreement

and on the last Availability Termination Date.

9.2

Arrangement fee

The Borrowers shall pay to the Agent (for its own account) a non-refundable

arrangement fee in the amount of $378,674.50 on the date of this Agreement.

10

Security and Application of Moneys

10.1

Security Documents

As security for the payment of the Indebtedness, the Borrowers shall execute and

deliver to the Security Agent or cause to be executed and delivered to the Security

Agent the following documents in such forms and containing such terms and

conditions as the Security Agent shall require:

10.1.1

first preferred cross-collaterised mortgages over the Vessels;

10.1.2

first priority deeds of assignment of the Insurances, Earnings and Requisition

Compensation of the Vessels;

10.1.3

a guarantee and indemnity from the Guarantor;

10.1.4

first priority deeds of charge over the Earnings Accounts and all amounts from

time to time standing to the credit of the Earnings Accounts;

10.1.5

first priority negative pledges in respect of all the issued shares of the

Borrowers from the Pledgor;

10.1.6

letters of undertaking and subordination (including an assignment of

Insurances) in respect of the Vessels from the Managers; and

10.1.7

first priority deeds of assignment of any Charter.

10.2

Earnings Accounts

The Borrowers shall maintain the Earnings Accounts with the Account Holder for the

duration of the Facility Period free of Encumbrances and rights of set off other than

those created by or under the Finance Documents.

10.3

Earnings

The Borrowers shall procure that all Earnings and any Requisition Compensation are

credited to the relevant Earnings Account.

10.4

Application of Earnings Accounts

The Borrowers shall procure that there is transferred from the relevant Earnings

Account to the Agent:

10.4.1

on each Repayment Date in respect of a Tranche, the amount of the

Repayment Instalment then due; and

10.4.2

on each Interest Payment Date in respect of the relevant Tranche, the amount

of interest then due,

and the Borrowers irrevocably authorise the Agent to instruct the Account Holder to

make those transfers.

10.5

Borrowers' obligations not affected

If for any reason the amount standing to the credit of the relevant Earnings Account

is insufficient to pay any Repayment Instalment or to make any payment of interest

when due, the Borrowers' obligation to pay that Repayment Instalment or to make

that payment of interest shall not be affected.

10.6

Withdrawals

Unless and until a Default occurs and the Agent shall direct to the contrary, the

Borrowers may withdraw sums remaining to the credit of the Earnings Account

provided however that Clause 12.2.1 is complied with at any relevant time during the

Facility Period.

10.7

Access to information

The Borrowers agree that the Security Agent (and its nominees) may from time to

time during the Facility Period review the records held by the Account Holder (whether

in written or electronic form) in relation to the Accounts, and irrevocably waives any

right of confidentiality which may exist in relation to those records.

10.8

Statements

Without prejudice to the rights of the Security Agent under Clause 9.7 (

Access to

information

), the Borrowers will procure that the Account Holder provides to the

Security Agent, no less frequently than once every six calendar months during the

Facility Period (unless any Event of Default is continuing, in which case it shall be

once

every calendar month), written statements of account showing all entries made to the

credit and debit of each of the Accounts during the immediately preceding six calendar

months or (where an Event of Default is continuing) the preceding calendar month.

10.9

Application after acceleration

From and after the giving of notice to the Borrowers by the Agent under Clause 13.2

(

Acceleration

), the Borrowers shall procure that all sums from time to time standing

to the credit of any of the Earnings Accounts are immediately transferred to the

Security Agent for application in accordance with Clause 10.9 (

Application of moneys

by Security Agent

) and the Borrowers irrevocably authorise the Security Agent to

instruct the Account Holder to make those transfers.

10.10

Application of moneys by Security Agent

The Borrowers and the Finance Parties irrevocably authorise the Security Agent to

apply all moneys which it receives and is entitled to receive:

10.10.1

pursuant to a sale or other disposition of a Vessel or any right, title or interest

in a Vessel; or

10.10.2

by way of payment of any sum in respect of the Insurances, Earnings or

Requisition Compensation; or

10.10.3

by way of transfer of any sum from any of the Earnings Accounts; or

10.10.4

otherwise under or in connection with any Security Document,

in or towards satisfaction of the Indebtedness in the following order:

10.10.5

first, any unpaid fees, costs, expenses and default interest due to the Agent

and the Security Agent under all or any of the Finance Documents, such

application to be apportioned between the Agent and the Security Agent pro

rata to the aggregate amount of such items due to each of them;

10.10.6

second, any unpaid fees, costs, expenses (including any sums paid by the

Lenders under Clause 15.12 (

Indemnity

)) of the Lenders due under this

Agreement, such application to be apportioned between the Lenders pro

rata to the aggregate amount of such items due to each of them;

10.10.7

third, any accrued but unpaid default interest due to the Lenders under this

Agreement, such application to be apportioned between the Lenders pro

rata to the aggregate amount of such default interest due to each of them;

10.10.8

fourth, any other accrued but unpaid interest due to the Lenders under this

Agreement, such application to be apportioned between the Lenders pro

rata to the aggregate amount of such interest due to each of them;

10.10.9

fifth, any principal of the Loan due and payable but unpaid under this

Agreement, such application to be apportioned between the Lenders pro

rata to each Lender's Proportionate Share; and

10.10.10

sixth, any other sum due and payable to any Finance Party but unpaid

under all or any of the Finance Documents, such application to be

apportioned between the Finance Parties pro rata to the aggregate amount

of any such sum due to each of them;

PROVIDED THAT the balance (if any) of the moneys received shall be paid to the

Security Parties from whom or from whose assets those sums were received or

recovered or to any other person entitled to them.

10.11

Retention on account

Moneys to be applied by the Security Agent under Clause 10.9 (

Application of

moneys by Security Agent

) shall be applied as soon as practicable after the relevant

moneys are received by it, or otherwise become available to it, save that (without

prejudice to any other provisions contained in any of the Security Documents) the

Security Agent or any receiver or administrator may retain any such moneys by

crediting them to a suspense account for so long and in such manner as the Security

Agent or such receiver or administrator may from time to time determine with a view to

preserving the rights of the Finance Parties or any of them to prove for the whole of

the Indebtedness (or any relevant part) against the Borrowers or any of them or any

other person liable.

10.12

Additional security

If at any time during the Facility Period the aggregate of the Fair Market Value of the

Vessels and the value of any additional security (such value to be the face amount of

the deposit (in the case of cash), determined conclusively by appropriate advisers

appointed by the Agent (in the case of other charged assets), and determined by the

Agent in its discretion (in all other cases)) for the time being provided to the Security

Agent under this Clause 10.12 is less than one hundred and twenty five per cent

(125%) of the amount of the Loan then outstanding, the Borrowers shall, upon the

Agent's written request, at the Borrowers' option:

10.12.1

pay to the Security Agent or to its nominee a cash deposit in the amount of

the shortfall to be held in the Earnings Accounts and secured in favour of the

Security Agent as additional security for the payment of the Indebtedness; or

10.12.2

give to the Security Agent other additional security in amount and form

acceptable to the Security Agent in its discretion; or

10.12.3

prepay the Loan in the amount of the shortfall.

Clauses 5.3 (

Reborrowing

), 6.2.3 (

Voluntary prepayment of Tranches

) and 6.4

(

Restrictions

) shall apply,

mutatis mutandis

, to any prepayment made under this

Clause 9.12 and the value of any additional security provided shall be determined as

stated above.

10.13

Fair Market Value determination

10.13.1

For the purposes of Clause 10.12 (

Additional Security

), the Fair Market

Value of each Vessel shall be determined by one valuation, or (if a breach

of Clause 10.12 (

Additional Security

) or an Event of Default has occurred)

by the average of two (2) valuations, each such valuation to be obtained by

one (1), or two (2) (as the case may be) Approved Brokers nominated by

the Borrowers approved by the Lenders and appointed by, and reporting to

the Agent, each such valuation to be addressed to the Agent and made

on the

basis of a charter-free sale for prompt delivery for cash at arm's length, on

normal commercial terms as between a willing buyer and a willing seller. The

Fair Market Value of the Vessels for the purposes of determining the

relevant percentage referred to in Clause 10.12 (

Additional Security

) shall

be tested no later than the date of each Drawdown Notice in accordance

with the provisions of Clause 10.13.2 and on the 31

st

of December of each

calendar year during the Facility Period or, at the Agent's discretion (acting

reasonably), at any other time during the Facility Period, each valuation

obtained by the Agent pursuant to this Clause 10.12 shall be (a) dated not

earlier than thirty (30) days prior to the date the valuations are provided and

(b) at the cost of the Borrowers and the Fair Market Value of a Vessel shall

be determined by one (1) valuation in accordance to the terms and conditions

of this clause, subject to the Lender's right to request a second valuation for

each Vessel if the first one is not in line with market level.

10.13.2

For the purposes of Clause 3.1 (

Conditions precedent

), the Fair Market

Value of a Vessel shall be determined by the average of two (2) valuations

in accordance with the valuation method and on the terms and conditions as

set out in Clause 10.13.1.

11

Representations

11.1

Representations

The Borrowers make the representations and warranties set out in this Clause 11.1 to

each Finance Party on the date of this Agreement.

11.1.1

Status

Each Security Party (which is not an individual) is a corporation, duly

incorporated and validly existing under the law of its jurisdiction of

incorporation and has the power to own its assets and carry on its business

as it is being conducted.

11.1.2

Binding obligations

The obligations expressed to be assumed by each

Security Party in each Finance Document to which it is a party are legal, valid,

binding and enforceable obligations.

11.1.3

Non-conflict with other obligations

The entry into and performance by

each Security Party of, and the transactions contemplated by, the Finance

Documents do not conflict with:

(a)

any law or regulation applicable to that Security Party;

(b)

the constitutional documents of that Security Party; or

(c)

any document binding on that Security Party or any of its assets,

and in borrowing the Loan, the Borrowers are acting for their own account.

11.1.4

Power and authority

Each Security Party has the power to enter into,

perform and deliver, and has taken all necessary action to authorise its entry

into, performance and delivery of, the Finance Documents to which it is a

party and the transactions contemplated by those Finance Documents.

11.1.5

Validity and admissibility in evidence

All consents, licences, approvals,

authorisations, filings and registrations required or desirable:

(a)

to enable each Security Party lawfully to enter into, exercise its rights

and comply with its obligations in the Finance Documents to which it

is a party or to enable each Finance Party to enforce and exercise

all its rights under the Finance Documents; and

(b)

to make the Finance Documents to which any Security Party is a

party admissible in evidence in its jurisdiction of incorporation,

have been obtained or effected and are in full force and effect, with the

exception only of the registrations referred to in Part 2 of Schedule 3

(

Conditions subsequent

).

11.1.6

Governing law and enforcement

The choice of a particular law as the

governing law of any Finance Document expressed to be governed by that

law will be recognised and enforced in the jurisdiction of incorporation of each

relevant Security Party, and any judgment obtained in the jurisdiction

submitted to in any Finance Document will be recognised and enforced in

the jurisdiction of incorporation of each relevant Security Party.

11.1.7

Deduction of Tax

No Security Party is required under the law of its

jurisdiction of incorporation to make any deduction for or on account of Tax

from any payment it may make under any Finance Document.

11.1.8

No filing or stamp taxes

Under the law of jurisdiction of incorporation of

each relevant Security Party it is not necessary that the Finance Documents

be filed, recorded or enrolled with any court or other authority in that

jurisdiction or that any stamp, registration or similar tax be paid on or in

relation to the Finance Documents or the transactions contemplated by the

Finance Documents.

11.1.9

No default

No Event of Default is continuing or might be expected to result

from the advance of a Tranche.

11.1.10

No misleading information

Any factual information provided by any

Security Party to any Finance Party was true and accurate in all material

respects as at the date it was provided.

11.1.11

Pari passu ranking

The payment obligations of each Security Party under

the Finance Documents to which it is a party rank at least pari passu with the

claims of all its other unsecured and unsubordinated creditors, except for

obligations mandatorily preferred by law applying to companies generally.

11.1.12

No proceedings pending or threatened

No litigation, arbitration or

administrative proceedings of or before any court, arbitral body or agency

have been started or (to the best of the Borrowers' knowledge threatened)

which, if adversely determined, might reasonably be expected to have a

materially adverse effect on the business, assets, financial condition or credit

worthiness of any Security Party.

11.1.13

Disclosure of material facts

The Borrowers are not aware of any material

facts or circumstances which have not been disclosed to the Agent and

which might, if disclosed, have adversely affected the decision of a person

considering whether or not to make loan facilities of the nature contemplated

by this Agreement available to the Borrowers.

11.1.14

Completeness of Relevant Documents

The copies of any Relevant

Documents provided or to be provided by the Borrowers to the Agent in

accordance with Clause 3 (

Conditions of Utilisation

) are, or will be, true and

accurate copies of the originals and represent, or will represent, the full

agreement between the parties to those Relevant Documents in relation to

the subject matter of those Relevant Documents and there are no

commissions, rebates, premiums or other payments due or to become due in

connection with the subject matter of those Relevant Documents other than

in the ordinary course of business or as disclosed to, and approved in writing

by, the Agent.

11.1.15

Environmental compliance

The Borrowers comply with all applicable

Environmental Laws, all required governmental approvals and all

requirements relating to the establishment of financial responsibility.

11.2

Repetition

Each representation and warranty in Clause 11.1 (

Representations

) is

deemed to be repeated by the Borrowers by reference to the facts and

circumstances then existing on the date of each Drawdown Notice and the first day

of each Interest Period.

12

Undertakings and Covenants

The undertakings and covenants in this Clause 12 remain in force for the duration of

the Facility Period.

12.1

Information undertakings

12.1.1

Financial statements

The Borrowers shall procure that the Guarantor shall

supply to the Agent as soon as the same become available, but in any event

within one hundred and eighty (180) days after the end of each of the

Guarantor's financial years, the Group's annual audited consolidated

financial statements for that financial year, in each case together with a

Compliance Certificate, signed by the Chief Finance Officer of the

Guarantor, setting out (in reasonable detail) computations as to compliance

with Clause 12.1 (

Financial covenants

) and Clause 10.12 (

Additional

Security

) as at the date as at which those financial statements were drawn

up.

12.1.2

Requirements as to financial statements

Each set of financial statements

delivered by the Guarantor under Clause 12.1.1 (

Financial statements

):

(a)

shall be certified by a director of the Guarantor as fairly representing

its financial condition as at the date as at which those financial

statements were drawn up; and

(b)

shall be prepared using GAAP, accounting practices and financial

reference periods consistent with those applied in the preparation of

the Original Financial Statements unless, in relation to any set of

financial statements, the Guarantor notifies the Agent that there has

been a change in GAAP, the accounting practices or reference

periods and the Guarantor's auditors deliver to the Agent:

(i)

a description of any change necessary for those financial

statements to reflect the GAAP, accounting practices and

reference periods upon which the Original Financial

Statements were prepared; and

(ii)

sufficient information, in form and substance as may be

reasonably required by the Agent, to enable the Agent to

make an accurate comparison between the financial

position indicated in those financial statements and that

indicated in the Original Financial Statements.

12.1.3

Interim financial statements

The Borrowers shall procure that the

Guarantor shall supply to the Agent as soon as the same become available,

but in any event within ninety (90) days after the end of each quarter during

each of the Guarantor's financial years, the Group's consolidated unaudited

quarterly financial statements for that quarter, in each case together with a

Compliance Certificate, signed by the Chief Financial Officer of the

Guarantor, setting out (in reasonable detail) computations as to compliance

with Clause 12.2 (

Financial covenants

) and Clause 10.12 (

Additional

Security

) as at the date as at which those financial statements were drawn

up.

12.1.4

Information: miscellaneous

The Borrowers shall, and shall procure that

the Guarantor shall supply to the Agent:

(a)

all documents dispatched by a Borrower or the Guarantor to its

shareholders (or any class of them) or its creditors generally at the

same time as they are dispatched;

(b)

promptly upon becoming aware of them, details of any material

litigation, arbitration or administrative proceedings which are

current, threatened or pending against any Security Party, and which

might, if adversely determined, have a materially adverse effect on

the business, assets, financial condition or credit worthiness of that

Security Party; and

(c)

promptly, such further information regarding the financial condition,

business and operations of any Security Party as the Agent may

reasonably request and which can be provided to the Agent without

breaching any rules of confidentiality including, without limitation,

cash flow analyses and details of the operating costs of any Vessel.

12.1.5

Notification of default

(a)

The Borrowers shall notify the Agent of any Default (and the steps,

if any, being taken to remedy it) promptly upon becoming aware of

its occurrence.

(b)

Promptly upon a request by the Agent, each Borrower shall supply

to the Agent a certificate signed by two of its directors or senior

officers on its behalf certifying that no Default is continuing (or if a

Default is continuing, specifying the Default and the steps, if any,

being taken to remedy it).

12.1.6

"Know your customer" checks

If:

(a)

the introduction of or any change in (or in the interpretation,

administration or application of) any law or regulation made after

the date of this Agreement;

(b)

any change in the status of a Borrower after the date of this

Agreement; or

(c)

a proposed assignment or transfer by a Lender of any of its rights

and obligations under this Agreement to a party that is not a Lender

prior to such assignment or transfer,

obliges the Agent or any Lender (or, in the case of (c) above, any prospective

new Lender) to comply with "know your customer" or similar identification

procedures in circumstances where the necessary information is not already

available to it, the Borrowers shall promptly upon the request of the Agent or

any Lender supply, or procure the supply of, such documentation and other

evidence as is reasonably requested by the Agent (for itself or on behalf of

any Lender) (or, in the case of (c) above, on behalf of any prospective new

Lender) in order for the Agent or that Lender (or, in the case of (c) above,

any prospective new Lender) to carry out and be satisfied it has complied with

all necessary "know your customer" or other similar checks under all

applicable laws and regulations pursuant to the transactions contemplated

in the Finance Documents. Notwithstanding the above, the Agent shall be at

liberty at all times during the Facility Period to request the Borrowers to

provide the Agent with any documentation and other evidence as is

reasonably requested by the Agent (for itself or on behalf of any Lender) in

order for the Agent or that Lender to be satisfied it has complied with all

"know your customer" or other similar checks under all applicable laws and

regulations pursuant to the transactions contemplated in the Finance

Documents.

12.2

Financial covenants

12.2.1

Each Borrower shall, from the relevant Drawdown Date and throughout the

Facility Period, maintain in its Earnings Account a credit balance of not less

than two hundred thousand Dollars ($200,000) for its Vessel.

12.2.2

The Borrowers shall procure that the Guarantor shall (A) maintain from the

first Drawdown Date and throughout the Facility Period Cash of not less

than five hundred thousand Dollars ($500,000) for each Fleet Vessel

and (B)

maintain the following financial ratios on a consolidated basis throughout the

Facility Period:

(a)

Adjusted Net Worth shall not be less than one hundred and fifty

million Dollars ($150,000,000); and

(b)

Adjusted Net Worth shall exceed twenty five per cent (25%) of the

Total Assets.

For the purposes of this Clause 12.2:

"

Accounting Information

" means the quarterly consolidated financial statements

and/or the annual consolidated financial statements to be provided by the Guarantor

to the Agent in accordance with Clauses 12.1.1 and 12.1.3.

"

Accounting Period

" means each consecutive period of approximately three

months falling during the Facility Period (ending on the last day in March, June,

September and December of each year) for which quarterly Accounting Information is

required to be delivered pursuant to Clause 12.1.3.

"

Adjusted Net Worth

" means, in respect of an Accounting Period, the amount of

Total Assets less Debt.

"

Cash

" means cash in hand or in bank accounts which is not subject to any charge

back or other Encumbrance (save for Encumbrances in favour of the Finance

Parties) and to which a Borrower or the Guarantor or any other member of the Group

(as the context requires) has free, immediate and direct access.

"

Debt

" means, in respect of an Accounting Period, in relation to any member of the

Group (the "

debtor

"):

(a)

any Financial Indebtedness of the debtor;

(b)

liability of 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 GAAP, should be

recorded in the notes to the Accounting Information;

(d)

any 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 Vessels

" means any vessel directly or indirectly owned by the Group, excluding

however any vessels which are at any given time during the Facility Period under

construction and not yet delivered to the relevant Subsidiary.

"

Total Assets

" means, in respect of an Accounting Period, the total assets of the

Group determined on a consolidated basis as shown in the then most recent

Accounting Information Provided that, for the purposes of determining

compliance with the

covenants set forth in Clause 12.2.2 the value of attributable to the Fleet Vessels shall

be equal to the aggregate Fair Market Value of such Fleet Vessels rather than the

value of such Fleet Vessels as stated in the then most recent Accounting

Information.

12.2.3

General undertakings

12.2.4

Authorisations

The Borrowers shall promptly:

(a)

obtain, comply with and do all that is necessary to maintain in full

force and effect; and

(b)

supply certified copies to the Agent of,

any consent, licence, approval or authorisation required under any law or

regulation to enable each Security Party to perform its obligations under the

Finance Documents to which it is a party and to ensure the legality, validity,

enforceability or admissibility in evidence in the jurisdiction of incorporation

of each relevant Security Party of any Finance Document.

12.2.5

Compliance with laws

Each Borrower shall comply in all respects with all

laws to which it may be subject, if failure so to comply would materially impair

its ability to perform its obligations under the Finance Documents.

12.2.6

Conduct of business

Each Borrower shall carry on and conduct its

business in a proper and efficient manner, file all requisite tax returns and

pay all tax which becomes due and payable (except where contested in

good faith).

12.2.7

Evidence of good standing

The Borrowers will from time to time if

requested by the Agent provide the Agent with evidence in form and

substance satisfactory to the Agent that the Security Parties and all corporate

shareholders of any Security Party (other than the Guarantor) remain in good

standing.

12.2.8

Negative pledge and no disposals

No Borrower shall without the prior

written consent of the Agent create nor permit to subsist any Encumbrance

or other third party rights (other than a Permitted Encumbrance) over any of

its present or future assets or undertaking nor dispose of any of those assets

or of all or part of that undertaking.

12.2.9

Merger

No Borrower nor the Guarantor shall without the prior written

consent of the Agent enter into any amalgamation, demerger, merger or

corporate reconstruction.

12.2.10

Change of business or corporate structure

No Borrower nor the

Guarantor shall without the prior written consent of the Lenders make any

substantial change to (a) the general nature of its business from that carried

on at the date of this Agreement or (b) the corporate structure of the

Borrowers as at the date of this Agreement.

12.2.11

No other business

No Borrower shall without the prior written consent of

the Agent engage in any business other than the ownership, operation,

chartering and management of its Vessel.

12.2.12

No borrowings

No Borrower shall without the prior written consent of the

Agent borrow any money (except for the Loan and normal trade credit in the

ordinary course of business) nor incur any obligations under leases.

12.2.13

Subordination of shareholder loans

The Borrowers shall procure that any

shareholder loans and/or inter company borrowings or other indebtedness

permitted by the terms of this Agreement are fully subordinated to the

Indebtedness on terms acceptable to the Agent.

12.2.14

No substantial liabilities

Except in the ordinary course of business, no

Borrower shall without the prior written consent of the Agent incur any liability

to any third party which is in the Agent's opinion of a substantial nature.

12.2.15

No loans or other financial commitments

No Borrower shall without the

prior written consent of the Agent make any loan nor enter into any guarantee

or indemnity or otherwise voluntarily assume any actual or contingent liability

in respect of any obligation of any other person except for loans made or

guarantees or indemnities from time to time required by any protection and

indemnity or war risks association in the ordinary course of business in

connection with the chartering, operation or repair of its Vessel.

12.2.16

No dividends or reduction of share capital

No Borrower shall without the

prior written consent of the Agent (A) pay or declare any dividends or make

any other distributions to shareholders provided however that a Borrower

may pay or declare dividends or make distributions to the Guarantor if no

Event of Default has occurred and is continuing at the time of such payment

or declaration or distribution or would occur as a result thereof or

(B) issue any new shares or (C) reduce its share capital as at the date of this

Agreement.

12.2.17

Inspection of records

Each Borrower will permit the inspection of its

financial records and accounts from time to time by the Agent or its nominee.

12.2.18

Transactions with affiliated companies

No Borrower shall without the

prior written consent of the Agent, enter into any transactions (except on

arm's length terms) with any affiliated companies.

12.2.19

No change in Relevant Documents

The Borrowers shall procure that,

without the prior written consent of the Agent, there shall be no termination

of, alteration to, or waiver of any material, in the Agent's opinion, term of,

any of the Relevant Documents which are not Finance Documents.

12.2.20

No change in ownership and control

Each Borrower undertakes that its

ownership shall remain at all times a wholly owned direct or indirect

Subsidiary of the Guarantor throughout the Facility Period and shall not permit

any change thereof without the prior written consent of the Agent.

12.2.21

Ownership of the Guarantor

The Borrowers shall procure that, at all times

during the Facility Period: (a) the shares of the Guarantor are listed on the

New York Stock Exchange or any other stock exchange acceptable to the

Lender; and (b) the Palios Family (either directly or indirectly through

companies legally and beneficially owned) shall own at least 12.5 per cent. of

the common stock in the Guarantor; and (c) the Palios Family (either directly

or indirectly through companies legally and beneficially owned) shall control

at least 25 per cent. of the maximum number of votes that might be cast in

respect of any matter submitted to the vote of the shareholders of the

Guarantor; and (d) Semiramis Paliou shall hold the Chief Executive Officer

position in the Guarantor and active role in the decision making in respect of

the Guarantor.

12.2.22

No Subsidiaries

No Borrower shall without the prior written consent of the

Agent form or acquire any Subsidiaries.

12.3

Vessel undertakings

12.3.1

No sale of Vessel

No Borrower shall sell or otherwise dispose of its Vessel

or any shares in its Vessel nor agree to do so without the prior written consent

of the Agent.

12.3.2

No chartering after Event of Default

Following the occurrence and during

the continuation of an Event of Default no Borrower shall without the prior

written consent of the Agent let its Vessel on charter or renew or extend any

charter or other contract of employment of its Vessel (nor agree to do so).

12.3.3

No change in management

Each Borrower shall procure that, without the

prior written consent of the Lenders, there shall be no termination of,

alteration to, or waiver of any material, in the Agent's opinion, term of, the

Management Agreement in respect of its Vessel and no Borrower shall

without the prior written consent of the Agent permit the Managers to sub-

contract or delegate the commercial or technical management of its Vessel

to any third party.

12.3.4

Registration of Vessel

Each Borrower undertakes to maintain the

registration of its Vessel under an Approved Flag for the duration of the

Facility Period and not to change its Vessel's flag without the Lenders' prior

written consent (such consent not to be unreasonably withheld).

12.3.5

Evidence of current COFR

Each Borrower will, if and for so long as its

Vessel trades in the United States of America and Exclusive Economic

Zone (as defined in the United States Oil Pollution Act 1990), obtain and

retain a valid Certificate of Financial Responsibility for its Vessel under that

Act, will provide the Agent with evidence of that Certificate, and will comply

strictly with the requirements of that Act.

12.3.6

ISM Code compliance

Each Borrower will:

(a)

procure that its Vessel remains for the duration of the Facility Period

subject to a SMS;

(b)

maintain a valid and current SMC for its Vessel throughout the

Facility Period and provide a copy to the Agent;

(c)

procure that the ISM Company maintains a valid and current DOC

throughout the Facility Period and provide a copy to the Agent; and

(d)

immediately notify the Agent in writing of any actual or threatened

withdrawal, suspension, cancellation or modification of the SMC of

its Vessel or of the DOC of the ISM Company.

12.3.7

ISPS Code compliance

Each Borrower will:

(a)

for the duration of the Facility Period comply with the ISPS Code in

relation to its Vessel and procure that its Vessel and the ISPS

Company comply with the ISPS Code;

(b)

maintain a valid and current ISSC for its Vessel throughout the

Facility Period and provide a copy to the Agent; and

(c)

immediately notify the Agent in writing of any actual or threatened

withdrawal, suspension, cancellation or modification of the ISSC of

its Vessel.

12.3.8

Annex VI compliance

Each Borrower will:

(a)

for the duration of the Facility Period comply with Annex VI in relation

to its Vessel and procure that its Vessel's master and crew are

familiar with, and that its Vessel complies with, Annex VI;

(b)

maintain a valid and current IAPPC for its Vessel throughout the

Facility Period and provide a copy to the Agent; and

(c)

immediately notify the Agent in writing of any actual or threatened

withdrawal, suspension, cancellation or modification of the IAPPC

of its Vessel.

12.3.9

Class

Each Vessel shall be classed with a classification society acceptable

to the Lenders and, commencing from the relevant Delivery Date shall be

classed on a dual basis with China Classification Society (CCS) and:

(a)

in the case of Vessel A and Vessel B, Bureau Veritas; or

with the highest class without any material overdue recommendations or

adverse notations and no Borrower shall without the prior written consent of

the Lenders change the class of its Vessel.

12.3.10

Environmental Laws

All Environmental Laws applicable to a Vessel shall

be complied with in all material respects and all material consents, licenses

and approvals required under such Environmental Laws shall be obtained

and complied with in all material respects.

12.3.11

Assignment of Charter

Each Borrower undertakes, immediately upon the

execution of any Charter, to execute and deliver to the Security Agent a

specific assignment of that Charter in form and substance satisfactory to the

Security Agent together with (i) all other documents required by it, including

without limitation all notices of assignment and evidence that those notices

will be duly acknowledged by the recipients and (ii) the documents referred

to in paragraphs 2(vii), 3 and 4(b) of Schedule 3, Part 1, and such other

documents as the Security Agent may reasonably require.

13

Events of Default

13.1

Events of Default

Each of the events or circumstances set out in this Clause 13.1 is an Event of Default.

13.1.1

Non-payment

The Borrowers do not pay on the due date any amount

payable by them under a Finance Document at the place at and in the

currency in which it is expressed to be payable.

13.1.2

Other obligations

A Security Party or any other person (except a Finance

Party) does not comply with any provision of any of the Relevant

Documents to which that Security Party or person is a party (other than as

referred to in Clause 13.1.1 (

Non-payment

)).

No Event of Default under this Clause 13.1.2 will occur if:

(a)

the failure to comply is capable of remedy and does not relate either

to the Insurances or to compliance with Clause 10.12 (

Additional

security

) and is remedied within ten (10) Business Days of the Agent

giving notice to the Borrowers or the Borrowers becoming aware of

the failure to comply; or

(b)

the failure to comply relates to a Charter and, if it is capable of

remedy is remedied within seven (7) Business Days of the

Borrowers becoming aware of such failure to comply.

13.1.3

Misrepresentation

Any representation, warranty or statement made or

deemed to be repeated by a Security Party in any Finance Document or any

other document delivered by or on behalf of a Security Party under or in

connection with any Finance Document is or proves to have been incorrect

or misleading in any material respect when made or deemed to be repeated.

13.1.4

Cross default

(a)

Any Financial Indebtedness of any Security Party or any other

member of the Group is not paid when due; or

(b)

any Financial Indebtedness of any Security Party or any other

member of the Group becomes (whether by declaration or

automatically in accordance with the relevant agreement or

instrument constituting the same) due and payable prior to the date

when it would otherwise have become due (unless as a result of the

exercise by the relevant Security Party or any other member of the

Group of a voluntary right of prepayment); or

(c)

any creditor of any Security Party or any other member of the Group

becomes entitled to declare any such Financial Indebtedness due

and payable or any facility or commitment available to any Security

Party or other member of the Group relating to Financial

Indebtedness is withdrawn, suspended or cancelled by reason of

any default (however described) of the person concerned unless

the relevant Security Party or any other member of the Group shall

have satisfied

the Agent that such withdrawal, suspension or cancellation will not

affect or prejudice in any way the ability of the relevant Security

Party or of the relevant member of the Group to pay its debts as they

fall due and fund its commitments or any guarantee given by any

Security Party; or

(d)

any other member of the Group in respect of the Financial

Indebtedness is not honoured when due and called upon

provided that the amount or aggregate amount at any one time, of all

Financial Indebtedness of any Security Party or any other member of the

Group in relation to which any of the foregoing events shall have occurred

and be continuing, is equal to or greater than fifteen million Dollars

($15,000,000) or its equivalent in the currency which the same is

denominated or payable.

For the avoidance of doubt, for the purpose of this Clause 13.1.4 references

to Financial Indebtedness shall exclude the Indebtedness.

13.1.5

Insolvency

(a)

A Security Party is unable or admits inability to pay its debts as they

fall due, suspends making payments on any of its debts or, by reason

of actual or anticipated financial difficulties, commences negotiations

with one or more of its creditors with a view to rescheduling any of

its indebtedness.

(b)

The value of the assets of the Guarantor is less than its liabilities

(taking into account contingent and prospective liabilities other than

commitments in respect of vessels under construction and not yet

delivered to that Security Party).

(c)

A moratorium is declared in respect of any indebtedness of a Security

Party.

13.1.6

Insolvency proceedings

Any corporate action, legal proceedings or other

procedure or step is taken for:

(a)

the suspension of payments, a moratorium of any indebtedness,

winding-up, dissolution, administration, bankruptcy or

reorganisation (by way of voluntary arrangement, scheme of

arrangement or otherwise) of a Security Party;

(b)

a composition, compromise, assignment or arrangement with any

creditor of a Security Party;

(c)

the appointment of a liquidator, receiver, administrative receiver,

administrator, compulsory manager, or trustee or other similar

officer in respect of any Security Party or any of its assets; or

(d)

enforcement of any Encumbrance over any assets of a Security

Party,

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

13.1.7

Creditors' process

Any expropriation, attachment, sequestration, distress

or execution affects any asset or assets of a Security Party and is not

discharged within seven (7) days.

13.1.8

Change in ownership of a Borrower or the Guarantor

(a) There is any

change in the ownership of a Borrower from that advised at the date of this

Agreement or (b) the Palios Family (either directly or indirectly through

companies legally and beneficially owned) ceases to own at least 12.5% of

the common stock in the Guarantor; or (c) the Palios Family (either directly

or indirectly through companies legally and beneficially owned) ceases to

control at least 25% of the maximum number of votes that might be cast in

respect of any matter submitted to the vote of the shareholders of the

Guarantor.

13.1.9

Repudiation etc

A Security Party or any other person (except a Finance

Party) repudiates any of the Relevant Documents to which that Security Party

or person is a party or evidences an intention to do so.

No Event of Default under this Clause 13.1.9 will occur if the repudiation is in

relation to a Charter and such repudiation is beyond the control of the relevant

Borrower and, if it is capable of remedy, is remedied within seven (7) Business

Days of the Borrowers becoming aware of such repudiation.

13.1.10

Impossibility or illegality

Any event occurs which would, or would with the

passage of time, render performance of any of the Relevant Documents by

a Security Party or any other party to any such document impossible,

unlawful or unenforceable by a Finance Party or a Security Party.

No Event of Default under this Clause 13.1.11 will occur if the impossibility or

illegality is in relation to a Charter or a Management Agreement and such

impossibility or illegality is beyond the control of the relevant Borrower and,

if it is capable of remedy, is remedied within seven (7) Business Days of the

Borrowers becoming aware of such impossibility or illegality.

13.1.11

Conditions subsequent

Any of the conditions referred to in Clause 3.4

(

Conditions subsequent

) is not satisfied within the time reasonably required

by the Agent.

13.1.12

Revocation or modification of authorisation

Any consent, licence,

approval, authorisation, filing, registration or other requirement of any

governmental, judicial or other public body or authority which is now, or which

at any time during the Facility Period becomes, necessary to enable a

Security Party or any other person (except a Finance Party) to comply with

any of its obligations under any of the Relevant Documents is not obtained,

is revoked, suspended, withdrawn or withheld, or is modified in a manner

which the Agent considers is, or may be, prejudicial to the interests of a

Finance Party, or ceases to remain in full force and effect.

No Event of Default under this Clause 13.1.12 will occur if the revocation or

modification of authorisation is in relation to a Charter or a Management

Agreement and such revocation or modification of authorisation is beyond the

control of the relevant Borrower and, if it is capable of remedy, is remedied

within seven (7) Business Days of the Borrowers becoming aware of such

revocation or modification of authorisation.

13.1.13

Curtailment of business 

A Security Party ceases, or threatens to cease,

to carry on all or a substantial part of its business or, as a result of intervention

by or under the authority of any government, the business of a Security Party

is wholly or partially curtailed or suspended, or all or a substantial part of the

assets or undertaking of a Security Party is seized, nationalised, expropriated

or compulsorily acquired.

13.1.14

Reduction of capital

A Security Party reduces its authorised or issued or

subscribed capital.

13.1.15

Loss of Vessel

A Vessel suffers a Total Loss or is otherwise destroyed or

abandoned, or a similar event occurs in relation to any other vessel which

may from time to time be mortgaged to the Security Agent as security for the

payment of all or any part of the Indebtedness, except that a Total Loss

(which term shall for the purposes of the remainder of this Clause 13.1.12

include an event similar to a Total Loss in relation to any other vessel) shall

not be an Event of Default if:

(a)

that Vessel or other vessel is insured in accordance with the

Security Documents and a claim for Total Loss is available under

the terms of the relevant insurances; and

(b)

no insurer has refused to meet or has disputed the claim for Total

Loss and it is not apparent to the Agent in its discretion that any

such refusal or dispute is likely to occur; and

(c)

payment of all insurance proceeds in respect of the Total Loss is

made in full to the Security Agent within one hundred and twenty

(120) days of the occurrence of the casualty giving rise to the Total

Loss in question or such longer period as the Agent may in its

discretion agree.

13.1.16

Challenge to registration

The registration of a Vessel or a Mortgage is

contested or becomes void or voidable or liable to cancellation or termination,

or the validity or priority of a Mortgage is contested.

13.1.17

War

The country of registration of a Vessel becomes involved in war

(whether or not declared) or civil war or is occupied by any other power and

the Agent in its discretion considers that, as a result, the security conferred

by any of the Security Documents is materially prejudiced.

13.1.18

Notice of termination

The Guarantor gives notice to the Security Agent to

determine its obligations under the Guarantee.

13.1.19

Material adverse change

Any event or series of events occurs which, in

the opinion of the Agent, is likely to have a materially adverse effect on the

business, assets, financial condition or credit worthiness of a Security Party.

13.1.20

Arrest

A Vessel is arrested or detained or seized by any person other than

any government or persons acting on behalf of any government and not

released and returned to the possession of the relevant Borrower within

fifteen (15) Business Days after the arrest or detention or seizure in question.

13.2

Acceleration

If an Event of Default is continuing the Agent may by notice to the Borrowers cancel

any part of the Maximum Loan Amount not then advanced and:

13.2.1

declare that the Loan, together with accrued interest, and all other amounts

accrued or outstanding under the Finance Documents are immediately due

and payable, whereupon they shall become immediately due and payable;

and/or

13.2.2

declare that the Loan is payable on demand, whereupon it shall immediately

become payable on demand by the Agent.

14

Assignment and Sub-Participation

14.1

Lenders' rights

A Lender may (A) without the Borrowers' prior written consent and so long as such

assignment does not result in any additional cost to the Borrowers, assign any of its

rights under this Agreement to any of its branches, wholly owned subsidiaries and

affiliates or (B) subject to the Borrowers' prior written consent (such consent not to be

unreasonably withheld or delayed), assign any of its rights under this Agreement or

transfer by novation any of its rights and obligations under this Agreement to any other

bank or financial institution or, in each case (for the purpose of a securitisation of that

Lender's rights or obligations under the Finance Documents or a similar transaction

of broadly equivalent economic effect) to any special purpose vehicle, and may grant

sub-participations in all or any part of its Commitment.

14.2

Borrowers' co-operation

The Borrowers will co-operate fully with a Lender in connection with any assignment,

transfer or sub-participation by that Lender; will execute and procure the execution of

such documents as that Lender may require in that connection; and irrevocably

authorise any Finance Party to disclose to any proposed assignee, transferee or sub-

participant (whether before or after any assignment, transfer or sub-participation and

whether or not any assignment, transfer or sub-participation shall take place) all

information relating to the Security Parties, the Loan, the Relevant Documents and the

Vessels which any Finance Party may in its discretion consider necessary or

desirable, subject to the execution by the recipients of such information of a

confidentiality undertaking substantially in the recommended form of the Loan Market

Association at the relevant time.

14.3

Rights of assignee

Any assignee of a Lender shall (unless limited by the express terms of the

assignment) take the full benefit of every provision of the Finance Documents

benefitting that Lender PROVIDED THAT an assignment will only be effective on

notification by the Agent to that Lender and the assignee that the Agent is satisfied it

has complied with

all necessary "Know your customer" or other similar checks under all applicable laws

and regulations in relation to the assignment to the assignee.

14.4

Transfer Certificates

If a Lender wishes to transfer any of its rights and obligations under or pursuant to

this Agreement, it may do so by delivering to the Agent a duly completed Transfer

Certificate, in which event on the Transfer Date:

14.4.1

to the extent that that Lender seeks to transfer its rights and obligations, the

Borrowers (on the one hand) and that Lender (on the other) shall be released

from further obligations towards the other;

14.4.2

the Borrowers (on the one hand) and the transferee (on the other) shall

assume obligations towards the other identical to those released pursuant to

Clause 14.4.1 ; and

14.4.3

the Agent, each of the Lenders and the transferee shall have the same rights

and obligations between themselves as they would have had if the transferee

had been an original party to this Agreement as a Lender with the rights and

obligations transferred to it as a result of the transfer

PROVIDED THAT the Agent shall only be obliged to execute a Transfer Certificate once:

(a)

it is satisfied it has complied with all necessary "know your customer" or other

similar checks under all applicable laws and regulations in relation to the

transfer to the transferee; and

(b)

the transferee has paid to the Agent for its own account a transfer fee of two

thousand Dollars ($2,000).

The Agent shall, as soon as reasonably practicable after it has executed a Transfer

Certificate, send to the Borrowers a copy of that Transfer Certificate.

14.5

Finance Documents

Unless otherwise expressly provided in any Finance Document or otherwise

expressly agreed between a Lender and any proposed transferee and notified by

that Lender to the Agent on or before the relevant Transfer Date, there shall

automatically be assigned to the transferee with any transfer of a Lender's rights and

obligations under or pursuant to this Agreement the rights of that Lender under or

pursuant to the Finance Documents (other than this Agreement) which relate to the

portion of that Lender's rights and obligations transferred by the relevant Transfer

Certificate.

14.6

No assignment or transfer by the Borrowers

No Borrower may assign any of its rights or transfer any of its rights or obligations

under the Finance Documents.

14.7

Securitisation

A Lender may disclose the size and term of the Loan and the name of each of the

Security Parties to any investor or potential investor in a securitisation (or similar

transaction of broadly equivalent economic effect) of that Lender's rights or obligations

under the Finance Documents.

15

The Agent, the Security Agent and the Lenders

15.1

Appointment

15.1.1

Each Lender appoints the Agent to act as its agent under and in connection

with the Finance Documents and each Lender and the Agent appoints the

Security Agent to act as its security agent for the purpose of the Security

Documents.

15.1.2

Each Lender authorises the Agent and each Lender and the Agent

authorises the Security Agent to exercise the rights, powers, authorities and

discretions specifically given to the Agent or the Security Agent (as the case

may be) under or in connection with the Finance Documents together with

any other incidental rights, powers, authorities and discretions.

15.1.3

Except where the context otherwise requires or where expressly provided to

the contrary, references in this Clause 15 to the "

Agent

" shall mean the Agent

and the Security Agent individually and collectively.

15.2

Authority

Each of the other Finance Parties irrevocably authorises the Agent (subject to

Clauses 15.4 (

Limitations on authority

) and 15.18 (

Instructions

)):

15.2.1

to execute on its behalf any Finance Document (other than this Agreement)

and any variation or amendment of any Finance Document (including this

Agreement);

15.2.2

to collect, receive, release or pay any money on its behalf;

15.2.3

acting on the instructions from time to time of the Majority Lenders to give or

withhold any waivers, consents or approvals under or pursuant to any

Finance Document; and

15.2.4

acting on the unanimous instructions from time to time of the Lenders to

exercise, or refrain from exercising, any rights, powers, authorities or

discretions (including, without limitation, determining matters to be

acceptable to or agreed by the Agent) under or pursuant to any Finance

Document.

The Agent shall have no duties or responsibilities as agent or as security agent other

than those expressly conferred on it by the Finance Documents and shall not be

obliged to act on any instructions from the Lenders or the Majority Lenders if to do so

would, in the opinion of the Agent, be contrary to any provision of the Finance

Documents or to any law, or would expose the Agent to any actual or potential

liability to any third party.

15.3

Trust

The Security Agent agrees and declares, and each of the other Finance Parties

acknowledges, that, subject to the terms and conditions of this Clause 15.3, the

Security Agent holds the Trust Property on trust for the Finance Parties absolutely.

Each of the other Finance Parties agrees that the obligations, rights and benefits

vested in the Security Agent shall be performed and exercised in accordance with

this Clause 15.3. The Security Agent shall have the benefit of all of the provisions of

this Agreement benefiting it in its capacity as security agent for the Finance Parties,

and all the powers and discretions conferred on trustees by the Trustee Act 1925 (to

the extent not inconsistent with this Agreement). In addition:

15.3.1

the Security Agent and any attorney, agent or delegate of the Security Agent

may indemnify itself or himself out of the Trust Property against all liabilities,

costs, fees, damages, charges, losses and expenses sustained or incurred

by it or him in relation to the taking or holding of any of the Trust Property or

in connection with the exercise or purported exercise of the rights, trusts,

powers and discretions vested in the Security Agent or any other such

person by or pursuant to the Security Documents or in respect of anything

else done or omitted to be done in any way relating to the Security

Documents;

15.3.2

the other Finance Parties acknowledge that the Security Agent shall be

under no obligation to insure any property nor to require any other person to

insure any property and shall not be responsible for any loss which may be

suffered by any person as a result of the lack or insufficiency of any

insurance; and

15.3.3

the Finance Parties agree that the perpetuity period applicable to the trusts

declared by this Agreement shall be the period of 125 years from the date of

this Agreement.

The provisions of Part I of the Trustee Act 2000 shall not apply to the Security Agent

or the Trust Property.

15.4

Limitations on authority

Except with the prior written consent of all the Lenders, the Agent shall not be entitled

to:

15.4.1

release or vary any security given for the Borrowers' obligations under this

Agreement; nor

15.4.2

waive the payment of any sum of money payable by any Security Party under

the Finance Documents; nor

15.4.3

reduce the Margin; nor

15.4.4

change the meaning of the expression "

Majority Lenders

"; nor

15.4.5

change the order of application of any moneys set out in this Agreement; nor

15.4.6

exercise, or refrain from exercising, any right, power, authority or discretion,

or give or withhold any consent, the exercise or giving of which is, by the

terms of this Agreement, expressly reserved to the Lenders or dependent

on the instructions of all the Lenders; nor

15.4.7

extend the due date for the payment of any sum of money payable by any

Security Party under any Finance Document; nor

15.4.8

take or refrain from taking any step if the effect of such action or inaction

may lead to the increase of the obligations of a Lender under any Finance

Document; nor

15.4.9

agree to change the currency in which any sum is payable under any

Finance Document (other than in accordance with the terms of the relevant

Finance Document); nor

15.4.10

agree to change this Clause 15.4;

and any amendment or waiver which relates to any of the matters referred to in this

Clause 15.4 shall not be entered into by the Agent until all the Lenders have agreed

its terms.

15.5

Liability

Neither the Agent nor any of its directors, officers, employees or agents shall be liable

to the Lenders for anything done or omitted to be done by the Agent under or in

connection with any of the Relevant Documents unless as a result of the Agent's

gross negligence or wilful misconduct.

15.6

Acknowledgement

Each Lender acknowledges that:

15.6.1

it has not relied on any representation made by the Agent or any of the

Agent's directors, officers, employees or agents or by any other person acting

or purporting to act on behalf of the Agent to induce it to enter into any

Finance Document;

15.6.2

it has made and will continue to make without reliance on the Agent, and

based on such documents and other evidence as it considers appropriate,

its own independent investigation of the financial condition and affairs of the

Security Parties in connection with the making and continuation of the Loan;

15.6.3

it has made its own appraisal of the creditworthiness of the Security Parties;

and

15.6.4

the Agent shall not have any duty or responsibility at any time to provide it

with any credit or other information relating to any Security Party unless that

information is received by the Agent pursuant to the express terms of a

Finance Document.

Each Lender agrees that it will not assert nor seek to assert against any director,

officer, employee or agent of the Agent or against any other person acting or

purporting to act on behalf of the Agent any claim which it might have against them

in respect of any of the matters referred to in this Clause 15.6.

15.7

Limitations on responsibility

The Agent shall have no responsibility to any Security Party or to any Lender on

account of:

15.7.1

the failure of a Lender or of any Security Party to perform any of its obligations

under a Finance Document; nor

15.7.2

the financial condition of any Security Party; nor

15.7.3

the completeness or accuracy of any statements, representations or

warranties made in or pursuant to any Finance Document, or in or pursuant

to any document delivered pursuant to or in connection with any Finance

Document; nor

15.7.4

the negotiation, execution, effectiveness, genuineness, validity,

enforceability, admissibility in evidence or sufficiency of any Finance

Document or of any document executed or delivered pursuant to or in

connection with any Finance Document.

15.8

The Agent's rights

The Agent may:

15.8.1

assume that all representations or warranties made or deemed repeated by

any Security Party in or pursuant to any Finance Document are true and

complete, unless, in its capacity as the Agent, it has acquired actual

knowledge to the contrary;

15.8.2

assume that no Default has occurred unless, in its capacity as the Agent, it

has acquired actual knowledge to the contrary;

15.8.3

rely on any document or notice believed by it to be genuine;

15.8.4

rely as to legal or other professional matters on opinions and statements of

any legal or other professional advisers selected or approved by it;

15.8.5

rely as to any factual matters which might reasonably be expected to be

within the knowledge of any Security Party on a certificate signed by or on

behalf of that Security Party; and

15.8.6

refrain from exercising any right, power, discretion or remedy unless and until

instructed to exercise that right, power, discretion or remedy and as to the

manner of its exercise by the Lenders or the Majority Lenders (as the case

may be) and unless and until the Agent has received from the Lenders any

payment which the Agent may require on account of, or any security which

the Agent may require for, any costs, claims, expenses (including legal and

other professional fees) and liabilities which it considers it may incur or

sustain in complying with those instructions.

15.9

The Agent's duties

The Agent shall:

15.9.1

if requested in writing to do so by a Lender, make enquiry and advise the

Lenders as to the performance or observance of any of the provisions of

any Finance Document by any Security Party or as to the existence of an

Event of Default; and

15.9.2

inform the Lenders promptly of any Event of Default of which the Agent has

actual knowledge.

15.10

No deemed knowledge

The Agent shall not be deemed to have actual knowledge of the falsehood or

incompleteness of any representation or warranty made or deemed repeated by any

Security Party or actual knowledge of the occurrence of any Default unless a Lender

or a Security Party shall have given written notice thereof to the Agent in its capacity

as the Agent. Any information acquired by the Agent other than specifically in its

capacity as the Agent shall not be deemed to be information acquired by the Agent in

its capacity as the Agent.

15.11

Other business

The Agent may, without any liability to account to the Lenders, generally engage in

any kind of banking or trust business with a Security Party or with a Security Party's

subsidiaries or associated companies or with a Lender as if it were not the Agent.

15.12

Indemnity

The Lenders shall, promptly on the Agent's request, reimburse the Agent in their

respective Proportionate Shares, for, and keep the Agent fully indemnified in respect

of all liabilities, damages, costs and claims sustained or incurred by the Agent in

connection with the Finance Documents, or the performance of its duties and

obligations, or the exercise of its rights, powers, discretions or remedies under or

pursuant to any Finance Document, to the extent not paid by the Security Parties and

not arising solely from the Agent's gross negligence or wilful misconduct.

15.13

Employment of agents

In performing its duties and exercising its rights, powers, discretions and remedies

under or pursuant to the Finance Documents, the Agent shall be entitled to employ

and pay agents to do anything which the Agent is empowered to do under or pursuant

to the Finance Documents (including the receipt of money and documents and the

payment of money) and to act or refrain from taking action in reliance on the opinion

of, or advice or information obtained from, any lawyer, banker, broker, accountant,

valuer or any other person believed by the Agent in good faith to be competent to give

such opinion, advice or information.

15.14

Distribution of payments

The Agent (which term shall not for the purposes of this Clause 15.14 include the

Security Agent) shall pay promptly to the order of each Finance Party every sum of

money received by the Agent pursuant to the Finance Documents for that Finance

Party and until so paid such amount shall be held by the Agent on trust absolutely for

that Finance Party. If the Agent receives a sum of money which is insufficient to

discharge all the amounts then due and payable to every Finance Party under any

one or more of the Finance Documents, the Agent shall apply that sum in accordance

with the order set out in Clauses 10.10.5 to 10.10.10 inclusive (

Application of

moneys by Security Agent

).

15.15

Reimbursement

The Agent shall have no liability to pay any sum to a Lender until it has itself received

payment of that sum. If, however, the Agent does pay any sum to a Lender on account

of any amount prospectively due to that Lender pursuant to Clause 15.14 (

Distribution

of payments

) before it has itself received payment of that amount, that Lender will, on

demand by the Agent, refund to the Agent an amount equal to the sum so paid,

together with an amount sufficient to reimburse the Agent for any interest which the

Agent may certify that it has been required to pay on money borrowed to fund the

sum in question during the period beginning on the date of payment and ending on

the date on which the Agent receives reimbursement.

15.16

Redistribution of payments

Unless otherwise agreed between the Lenders and the Agent, if at any time a Lender

receives or recovers by way of set-off, the exercise of any lien or otherwise from any

Security Party, an amount greater than that Lender's Proportionate Share of any sum

due from that Security Party to the Lenders under the Finance Documents (the amount

of the excess being referred to in this Clause 15.16 and in Clause 15.17 (

Rescission

of Excess Amount

) as the "

Excess Amount

") then:

15.16.1

that Lender shall promptly notify the Agent (which shall promptly notify each

other Lender);

15.16.2

that Lender shall pay to the Agent an amount equal to the Excess Amount

within ten (10) days of its receipt or recovery of the Excess Amount; and

15.16.3

the Agent shall treat that payment as if it were a payment by the Security

Party in question on account of the sum due from that Security Party to the

Lenders and shall account to the Lenders in respect of the Excess Amount

in accordance with the provisions of Clause 15.14 (

Distribution of

payments

).

However, if a Lender has commenced any legal proceedings to recover

sums owing to it under the Finance Documents and, as a result of, or in

connection with, those proceedings has received an Excess Amount, the

Agent shall not distribute any of that Excess Amount to any other Lender

which had been notified of the proceedings and had the legal right to, but

did not, join those proceedings or commence and diligently prosecute

separate proceedings to enforce its rights in the same or another court.

15.17

Rescission of Excess Amount

If all or any part of any Excess Amount is rescinded or must otherwise be restored to

any Security Party or to any other third party, the Lenders which have received any

part of that Excess Amount by way of distribution from the Agent pursuant to 

Clause 15.16 (

Redistribution of payments

) shall repay to the Agent for the account of

the Lender which originally received or recovered the Excess Amount, the amount

which shall be necessary to ensure that the Lenders share rateably in accordance

with their Proportionate Shares in the amount of the receipt or payment retained,

together with interest on that amount at a rate equivalent to that (if any) paid by the

Lender receiving or recovering the Excess Amount to the person to whom that Lender

is liable

to make payment in respect of such amount, and Clause 15.16.3 (

Redistribution of

payments

) shall apply only to the retained amount.

15.18

Instructions

Where the Agent is authorised or directed to act or refrain from acting in accordance

with the instructions of the Lenders or of the Majority Lenders (as the case may be)

each of the Lenders shall provide the Agent with instructions within three (3) Business

Days of the Agent's request (which request may be made orally or in writing). If a

Lender does not provide the Agent with instructions within that period, that Lender

shall be bound by the decision of the Agent. Nothing in this Clause 15.18 shall limit

the right of the Agent to take, or refrain from taking, any action without obtaining the

instructions of the Lenders or the Majority Lenders (as the case may be) if the Agent

in its discretion considers it necessary or appropriate to take, or refrain from taking,

such action in order to preserve the rights of the Lenders under or in connection with

the Finance Documents. In that event, the Agent will notify the Lenders of the action

taken by it as soon as reasonably practicable, and the Lenders agree to ratify any

action taken by the Agent pursuant to this Clause 15.18.

15.19

Payments

All amounts payable to a Lender under this Clause 15 shall be paid to such account

at such bank as that Lender may from time to time direct in writing to the Agent.

15.20

"Know your customer" checks

Each Lender shall promptly upon the request of the Agent supply, or procure the supply

of, such documentation and other evidence as is reasonably requested by the Agent

(for itself) in order for the Agent to carry out and be satisfied it has complied with all

necessary "know your customer" or other similar checks under all applicable laws

and regulations pursuant to the transactions contemplated in the Finance

Documents.

15.21

Resignation

Subject to a successor being appointed in accordance with this Clause 15.21, the

Agent may resign as agent and/or security agent at any time without assigning any

reason by giving to the Borrowers and the Lenders notice of its intention to do so, in

which event the following shall apply:

15.21.1

the Lenders may within thirty (30) days after the date of the Agent's notice

appoint a successor to act as agent and/or security agent or, if they fail to do

so, the Agent may appoint any other bank or financial institution as its

successor;

15.21.2

the resignation of the Agent shall take effect simultaneously with the

appointment of its successor on written notice of that appointment being

given to the Borrowers and the Lenders;

15.21.3

the Agent shall thereupon be discharged from all further obligations as agent

and/or security agent but shall remain entitled to the benefit of the provisions

of this Clause 15; and

15.21.4

the Agent's successor and each of the other parties to this Agreement shall

have the same rights and obligations amongst themselves as they would

have had if that successor had been a party to this Agreement.

15.22

No fiduciary relationship

Except as provided in Clauses 15.3 (

Trust

) and 15.14 (

Distribution of payments

), the

Agent shall not have any fiduciary relationship with or be deemed to be a trustee of or

for any other person and nothing contained in any Finance Document shall constitute

a partnership between any two or more Lenders or between the Agent and any other

person.

16

Set-Off

A Finance Party may set off any matured obligation due from the Borrowers under any

Finance Document (to the extent beneficially owned by that Finance Party) against

any matured obligation owed by that Finance Party to any Borrower, regardless of the

place of payment, booking branch or currency of either obligation. If the obligations

are in different currencies, that Finance Party may convert either obligation at a

market rate of exchange in its usual course of business for the purpose of the set-off.

17

Payments

17.1

Payments

Each amount payable by a Borrower under a Finance Document shall be paid to

such account at such bank as the Agent may from time to time direct to the

Borrowers in the Currency of Account and in such funds as are customary at the time

for settlement of transactions in the relevant currency in the place of payment.

Payment shall be deemed to have been received by the Agent on the date on which

the Agent receives authenticated advice of receipt, unless that advice is received by

the Agent on a day other than a Business Day or at a time of day (whether on a

Business Day or not) when the Agent in its discretion considers that it is impossible or

impracticable for the Agent to utilise the amount received for value that same day, in

which event the payment in question shall be deemed to have been received by the

Agent on the Business Day next following the date of receipt of advice by the Agent.

17.2

No deductions or withholdings

Each payment (whether of principal or interest or otherwise) to be made by a Borrower

under a Finance Document shall, subject only to Clause 17.3 (

Grossing-up

), be

made free and clear of and without deduction for or on account of any Taxes (other

than a FATCA Deduction) or other deductions, withholdings, restrictions, conditions

or counterclaims of any nature.

17.3

Grossing-up

If at any time any law requires (or is interpreted to require) a Borrower to make any

deduction or withholding from any payment (other than a FATCA Deduction), or to

change the rate or manner in which any required deduction or withholding is made,

under a Finance Document, the Borrowers will promptly notify the Agent and,

simultaneously with that payment, will pay to the Agent whatever additional amount

(after taking into account any additional Taxes on, or deductions or withholdings from,

or restrictions or conditions on, that additional amount) is necessary to ensure that,

after the deduction or withholding, the relevant Finance Parties receive a net sum equal

to the sum which they would have received had no deduction or withholding been

made.

17.4

Evidence of deductions

If at any time a Borrower is required by law to make any deduction or withholding

from any payment to be made by it under a Finance Document, that Borrower will pay

the amount required to be deducted or withheld to the relevant authority within the

time allowed under the applicable law and will, no later than thirty (30) days after

making that payment, deliver to the Agent an original receipt issued by the relevant

authority, or other evidence acceptable to the Agent, evidencing the payment to that

authority of all amounts required to be deducted or withheld.

17.5

Adjustment of due dates

If any payment or transfer of funds to be made under a Finance Document, other than

a payment of interest on the Loan, shall be due on a day which is not a Business

Day, that payment shall be made on the next succeeding Business Day (unless the

next succeeding Business Day falls in the next calendar month in which event the

payment shall be made on the next preceding Business Day). Any such variation of

time shall be taken into account in computing any interest in respect of that payment.

17.6

Control account

The Agent shall open and maintain on its books a control account in the names of

the Borrowers showing the advance of the Loan and the computation and payment

of interest and all other sums due under this Agreement. The Borrowers' obligations

to repay the Loan and to pay interest and all other sums due under this Agreement

shall be evidenced by the entries from time to time made in the control account

opened and maintained under this Clause 17.6 and those entries will, in the absence

of manifest error, be conclusive and binding.

17.7

Clawback

The Agent shall have no liability to pay any sum to the Borrowers until it has itself

received payment of that sum. If, however, the Agent does pay any sum to the

Borrowers on account of any amount prospectively due to the Borrowers pursuant to

Clause 3 (

Advance)

before it has itself received payment of that amount, the Borrowers

will, on demand by the Agent, refund to the Agent an amount equal to the sum so

paid, together with an amount sufficient to reimburse the Agent for any interest which

the Agent may certify that it has been required to pay on money borrowed to fund the

sum in question during the period beginning on the date of payment and ending on

the date on which the Agent receives reimbursement.

17.8

FATCA Deduction and gross-up by a Security Party

(a)

Each Party may make any FATCA Deduction it is required to make by

FATCA and any payment required in connection with that FATCA

Deduction, and no Party shall be required to increase any payment in

respect of which it makes

such a FATCA Deduction or otherwise compensate the recipient of the

payment for that FATCA Deduction.

(b)

Each Party shall promptly, upon becoming aware that it must make a

FATCA Deduction (or that there is any change in the rate or the basis of

such FATCA Deduction), notify the Party to whom it is making the payment

and, in addition, shall notify the Borrowers and the Agent and the Agent

shall notify the other Finance Parties.

18

Notices

18.1

Communications in writing

Any communication to be made under or in connection with this Agreement shall be

made in writing and, unless otherwise stated, may be made by fax or letter.

18.2

Addresses

The address and fax number (and the department or officer, if any, for whose attention

the communication is to be made) of each party to this Agreement for any

communication or document to be made or delivered under or in connection with this

Agreement are:

18.2.1

in the case of the Borrowers:

c/o Diana Shipping Services

S.A. Pendelis 16

175 64 Palaio Faliro

Athens

Greece (fax no: +30 210 9470101), email:

corpgov@dianashippingservices.com)

marked for the attention of Ms Margarita Veniou;

18.2.2

in the case of each Lender, those appearing opposite its name in Schedule

2, Part 1 (

The Lenders and the Commitments

):

The Export-Import Bank of China

No.30, Fu Xing Men Nei Street, Xicheng

District Beijing 100031, The People's Republic

of China (fax no: +86 10 8357 8428/29)

marked for the attention of: Transportation Finance Department

18.2.3

in the case of each Arranger, those appearing opposite its name in

Schedule 2, Part 2 (

the Arrangers

):

The Export-Import Bank of China

No.30, Fu Xing Men Nei Street, Xicheng

District Beijing 100031, The People's Republic

of China (fax no: +86 10 8357 8428/29)

marked for the attention of: Transportation Finance Department

18.2.4

in the case of the Agent:

The Export-Import Bank of China

No.30, Fu Xing Men Nei Street, Xicheng

District Beijing 100031, The People's Republic

of China (fax no: +86 10 8357 8428/29)

marked for the attention of: Transportation Finance Department

18.2.5

in the case of the Security Agent:

The Export-Import Bank of China

No.30, Fu Xing Men Nei Street, Xicheng

District Beijing 100031, The People's Republic

of China (fax no: +86 10 8357 8428/29)

marked for the attention of: Transportation Finance Department

or any substitute address, fax number, department or officer as any party may notify

to the Agent (or the Agent may notify to the other parties, if a change is made by the

Agent) by not less than five (5) Business Days' notice.

18.3

Delivery

Any communication or document made or delivered by one party to this Agreement to

another under or in connection with this Agreement will only be effective:

18.3.1

if by way of fax, when received in legible form; or

18.3.2

if by way of letter, when it has been left at the relevant address or five (5)

Business Days after being deposited in the post postage prepaid in an

envelope addressed to it at that address;

and, if a particular department or officer is specified as part of its address details

provided under Clause 18.2 (

Addresses

), if addressed to that department or officer.

Any communication or document to be made or delivered to the Agent will be effective

only when actually received by the Agent.

All notices from or to the Borrowers shall be sent through the Agent.

Any communication or document which becomes effective, in accordance with this

Clause 18.3, after 5.00 p.m. in the place of receipt shall be deemed only to become

effective on the following day.

18.4

Notification of address and fax number

Promptly upon receipt of notification of an address, fax number or change of address,

pursuant to Clause 18.2 (

Addresses

) or changing its own address or fax number, the

Agent shall notify the other parties to this Agreement.

18.5

English language

Any notice given under or in connection with this Agreement must be in English. All

other documents provided under or in connection with this Agreement must be:

18.5.1

in English; or

18.5.2

if not in English, and if so required by the Agent, accompanied by a certified

English translation and, in this case, the English translation will prevail unless

the document is a constitutional, statutory or other official document.

19

Partial Invalidity

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or

unenforceable in any respect under any law of any jurisdiction, neither the legality,

validity or enforceability of the remaining provisions nor the legality, validity or

enforceability of such provision under the law of any other jurisdiction will in any way

be affected or impaired.

20

Remedies and Waivers

No failure to exercise, nor any delay in exercising, on the part of any Finance Party,

any right or remedy under a Finance Document shall operate as a waiver of any

such right or remedy or constitute an election to affirm any of the Finance

Documents. No election to affirm any of the Finance Documents on the part of any

Finance Party shall be effective unless it is in writing. No single or partial exercise of

any right or remedy shall prevent any further or other exercise or the exercise of any

other right or remedy. The rights and remedies provided in this Agreement are

cumulative and not exclusive of any rights or remedies provided by law.

21

Joint and several liability

21.1

Nature of liability

The representations, warranties, covenants, obligations and undertakings of the

Borrowers contained in this Agreement shall be joint and several so that each

Borrower shall be jointly and severally liable with all the Borrowers for all of the same

and such liability shall not in any way be discharged, impaired or otherwise affected

by:

21.1.1

any forbearance (whether as to payment or otherwise) or any time or other

indulgence granted to any other Borrower or any other Security Party under

or in connection with any Finance Document;

21.1.2

any amendment, variation, novation or replacement of any other Finance

Document;

21.1.3

any failure of any Finance Document to be legal valid binding and

enforceable in relation to any other Borrower or any other Security Party for

any reason;

21.1.4

the winding-up or dissolution of any other Borrower or any other Security

Party;

21.1.5

the release (whether in whole or in part) of, or the entering into of any

compromise or composition with, any other Borrower or any other Security

Party; or

21.1.6

any other act, omission, thing or circumstance which would or might, but for

this provision, operate to discharge, impair or otherwise affect such liability.

21.2

No rights as surety

Until the Indebtedness has been unconditionally and irrevocably paid and discharged

in full, each Borrower agrees that it shall not, by virtue of any payment made under

this Agreement on account of the Indebtedness or by virtue of any enforcement by a

Finance Party of its rights under this Agreement or by virtue of any relationship

between, or transaction involving, the relevant Borrower and any other Borrower or

any other Security Party:

21.2.1

exercise any rights of subrogation in relation to any rights, security or moneys

held or received or receivable by a Finance Party or any other person; or

21.2.2

exercise any right of contribution from any other Borrower or any other

Security Party under any Finance Document; or

21.2.3

exercise any right of set-off or counterclaim against any other Borrower or

any other Security Party; or

21.2.4

receive, claim or have the benefit of any payment, distribution, security or

indemnity from any other Borrower or any other Security Party; or

21.2.5

unless so directed by the Agent (when the relevant Borrower will prove in

accordance with such directions), claim as a creditor of any other Borrower

or any other Security Party in competition with any Finance Party

and each Borrower shall hold in trust for the Finance Parties and forthwith pay or

transfer (as appropriate) to the Agent any such payment (including an amount equal

to any such set-off), distribution or benefit of such security, indemnity or claim in fact

received by it.

22

Miscellaneous

22.1

No oral variations

No variation or amendment of a Finance Document shall be valid unless in writing

and signed on behalf of all the Finance Parties.

22.2

Further assurance

If any provision of a Finance Document shall be invalid or unenforceable in whole or

in part by reason of any present or future law or any decision of any court, or if the

documents at any time held by or on behalf of the Finance Parties or any of them are

considered by the Lenders for any reason insufficient to carry out the terms of this

Agreement, then from time to time the Borrowers will promptly, on demand by the

Agent, execute or procure the execution of such further documents as in the opinion

of the Lenders are necessary to provide adequate security for the repayment of the

Indebtedness.

22.3

Rescission of payments etc.

Any discharge, release or reassignment by a Finance Party of any of the security

constituted by, or any of the obligations of a Security Party contained in, a Finance

Document shall be (and be deemed always to have been) void if any act (including,

without limitation, any payment) as a result of which such discharge, release or

reassignment was given or made is subsequently wholly or partially rescinded or

avoided by operation of any law.

22.4

Certificates

Any certificate or statement signed by an authorised signatory of the Agent purporting

to show the amount of the Indebtedness (or any part of the Indebtedness) or any

other amount referred to in any Finance Document shall, save for manifest error or on

any question of law, be conclusive evidence as against the Borrowers of that amount.

22.5

Counterparts

This Agreement may be executed in any number of counterparts each of which shall

be original but which shall together constitute the same instrument.

22.6

Contracts (Rights of Third Parties) Act 1999

A person who is not a party to this Agreement has no right under the Contracts (Rights

of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this

Agreement.

22.7

Disclosure

Each Borrower irrevocably authorises, and shall procure that each of the other

Security Parties authorises, each Finance Party to disclose from time to time any

information relating to the Security Parties, the Loan, the Commitments, the Earnings

Accounts, the Relevant Documents and the Vessels to (a) any private, public or

internationally recognised authorities, (b) any Finance Party's head office, branches,

affiliates and professional advisors, (c) any other parties to the Finance Documents,

(d) rating agencies or their professional advisors and (e) any person with whom any

Finance Party proposes entering into, or has entered into, contractual relations in

connection with the Loan or any Commitment, provided in each case that the person

to whom such information is to be given has entered in a confidentiality undertaking

substantially in the recommended form of the Loan Market Association at the relevant

time.

23

Law and Jurisdiction

23.1

Governing law

This Agreement and any non-contractual obligations arising from or in connection with

it shall in all respects be governed by and interpreted in accordance with English law.

23.2

Jurisdiction

For the exclusive benefit of the Finance Parties, the parties to this Agreement

irrevocably agree that the courts of England are to have exclusive jurisdiction to settle

any dispute (a) arising from or in connection with this Agreement or (b) relating to any

non-contractual obligations arising from or in connection with this Agreement and that

any proceedings may be brought in those courts.

23.3

Alternative jurisdictions

Nothing contained in this Clause 23 shall limit the right of the Finance Parties to

commence any proceedings against the Borrowers in any other court of competent

jurisdiction nor shall the commencement of any proceedings against the Borrowers in

one or more jurisdictions preclude the commencement of any proceedings in any other

jurisdiction, whether concurrently or not.

23.4

Waiver of objections

Each Borrower irrevocably waives any objection which it may now or in the future have

to the laying of the venue of any proceedings in any court referred to in this Clause 23,

and any claim that those proceedings have been brought in an inconvenient or

inappropriate forum, and irrevocably agrees that a judgment in any proceedings

commenced in any such court shall be conclusive and binding on it and may be

enforced in the courts of any other jurisdiction.

23.5

Service of process

Without prejudice to any other mode of service allowed under any relevant law, each

Borrower:

23.5.1

irrevocably appoints Hill Dickinson Services (London) Ltd, The Broadgate

Tower, 20 Primrose Street, London EC2A 2EW as its agent for service of

process in relation to any proceedings before the English courts in

connection with this Agreement; and

23.5.2

agrees that failure by a process agent to notify any Borrower of the process

will not invalidate the proceedings concerned.

Schedule 2

The Lenders and the Arrangers

Part 1

The Lenders and the Commitments

The Lenders The Commitments

The Export-Import Bank of China $58,440,000

No.30, Fu Xing Men Nei Street, Xicheng

District

Beijing 100031, The People's Republic of

China

(fax no: +86 10 8357 8428/29)

marked for the attention of: Transportation

Finance Department

Part 2

The Arrangers

The Export-Import Bank of China

No.30, Fu Xing Men Nei Street, Xicheng

District Beijing 100031, The People's Republic

of China (fax no: +86 10 8357 8428/29)

marked for the attention of: Transportation Finance Department

Schedule 3

Conditions Precedent and Subsequent

Part 1

Conditions precedent

1

Security Parties

(a)

Constitutional Documents

Copies of the constitutional documents of each

Security Party together with such other evidence as the Agent may reasonably

require that each Security Party is duly incorporated in its country of

incorporation and remains in existence with power to enter into, and perform

its obligations under, the Relevant Documents to which it is or is to become

a party.

(b)

Certificates of good standing

A

certificate of good standing in respect of

each Security Party (if such a certificate can be obtained).

(c)

Board resolutions

A copy of a resolution of the board of directors of each

Security Party (and, in the case of the Guarantor, of the executive committee

of the board of directors of the Guarantor):

(i)

approving the terms of, and the transactions contemplated by, the

Relevant Documents to which it is a party and resolving that it

execute those Relevant Documents; and

(ii)

authorising a specified person or persons to execute those

Relevant Documents (and all documents and notices to be signed

and/or despatched under those documents) on its behalf.

(d)

Specimen signatures

A specimen of the signature of each person

authorised by the resolutions referred to in paragraph (c) above.

(e)

Shareholder resolutions 

A copy of a resolution signed by all the holders

of the issued shares in each Security Party (other than the Guarantor),

approving the terms of, and the transactions contemplated by, the Relevant

Documents to which that Security Party is a party.

(f)

Officer's certificates

A certificate of a duly authorised officer of each

Security Party certifying that each copy document relating to it specified in

this Part 1 of Schedule 3 is correct, complete and in full force and effect and

setting out the names of the directors, officers and shareholders of that

Security Party and the proportion of shares held by each shareholder.

(g)

Evidence of registration

Evidence that the names of the directors and

officers of the Manager are duly registered in the companies registry or other

registry in the country of incorporation of the Manager.

(h)

Powers of attorney

The power of attorney of each Security Party (notarially

attested and legalised if required) under which any documents are to be

executed or transactions undertaken by that Security Party.

2

Security and related documents

(a)

Vessel documents

(a)

Photocopies, certified as true, accurate and complete by a director

or the secretary of the Borrower, of:

(i)

the Building Contract;

(ii)

such documents as the Agent may reasonably require to

evidence the nomination of or novation in favour of (as the

case may be) the Borrower as purchaser of the Vessel

pursuant to the Building Contract;

(iii)

the builder's certificate and/or bill of sale transferring title in

the Vessel to the Borrower free of all encumbrances,

maritime liens or other debts;

(iv)

the protocol of delivery and acceptance evidencing the

unconditional physical delivery of the Vessel by the Builder

to the Borrower pursuant to the Building Contract;

(v)

the commercial invoice issued by the Builder in respect of

the final contract price of the Vessel;

(vi)

the declaration of warranty issued by the Builder to the

Borrower pursuant to the Building Contract;

(vii)

any charterparty or other contract of employment of the

Vessel which will be in force on the Drawdown Date

including, without limitation, any Charter;

(viii)

the Management Agreement;

(ix)

the Vessel's current Safety Construction, Safety

Equipment, Safety Radio, Oil Pollution Prevention and

Load Line Certificates;

(x)

evidence of the Vessel's current Certificate of Financial

Responsibility issued pursuant to the United States Oil

Pollution Act 1990, if applicable;

(xi)

the Vessel's current SMC;

(xii)

the ISM Company's current DOC;

(xiii)

the Vessel's current ISSC;

(xiv)

the Vessel's current IAPPC;

(xv)

the Vessel's current Tonnage Certificate;

in each case together with all addenda, amendments or supplements.

(b)

Evidence of Borrower's title

Evidence that any prior registration of the

Vessel in the ownership of the Builder and any Encumbrance registered

against that ownership have been cancelled (or confirmation from the Builder

that there was no such prior registration) and evidence that on the Delivery

Date (i) the Vessel will be at least provisionally registered under an Approved

Flag in the ownership of the Borrower and (ii) the Mortgage will be capable of

being registered against the Vessel with first priority.

(c)

Evidence of insurance

Evidence that the Vessel is insured in the manner

required by the Security Documents and that letters of undertaking will be

issued in the manner required by the Security Documents, together with an

opinion on the Insurances by an insurance adviser appointed by the Agent at

the cost of the Borrowers (to be borne directly by the Borrowers).

(d)

Confirmation of class

A Certificate of Confirmation of Class for hull and

machinery confirming that the Vessel is classed with the highest class

applicable to vessels of her type with Bureau Veritas or NKK, as the case

may be, and on a dual basis with China Classification Society or such other

classification society as may be acceptable to the Agent free of material

overdue recommendations or adverse notations, in case affecting class.

(e)

Valuations

Two valuations of the Vessel from Approved Brokers acceptable

to the Agent addressed to the Agent to be issued in accordance with the

requirements of Clause 10.13

(Fair Market Value determination)

certifying the

Fair Market Value of the Vessel in order for the Lenders to assess

compliance with Clause 10.12 (

Additional security

) and determine the

Maximum Tranche Amount.

(f)

Security Documents

The Mortgage and the Assignments in respect of the

Vessel, the Managers' Undertaking, the Guarantee, the Account Charges,

the Negative Share Pledges, together with all other documents required by

any of them, including, without limitation, all notices of assignment and/or

charge and evidence that those notices will be duly acknowledged by the

recipients.

(g)

Mandates

Such duly signed forms of mandate, and/or other evidence of the

opening of the Earnings Accounts, as the Security Agent may require.

(h)

No disputes

The written confirmation of the Borrower that there is no

dispute under any of the Relevant Documents as between the parties to any

such document.

(i)

Account Holder's confirmation

The written confirmation of the Account

Holder that the Accounts have been opened with the Account Holder and to

its actual knowledge are free from Encumbrances and rights of set off other

than as created by or pursuant to the Security Documents.

(j)

Equity contribution

Evidence of full payment to the Builder of any part of

the contract price of the Vessel under the Building Contract which is payable

on or before the relevant Drawdown Date and which is not being financed

by the Loan, including without limitation that part of the delivery instalment

not being financed by the Loan.

(k)

Cash balance

Written statement of account issued by the Account Holder

and a Compliance Certificate signed by Chief Financial Officer of the

Guarantor, each confirming that the Borrowers are in compliance with the

financial covenant of Clause 12.2.1, to be delivered to the Agent on or before

the due date for delivering the Drawdown Request pursuant to Clause 4.1

(

Drawdown Request

).

(l)

Other Relevant Documents

Copies of each of the Relevant Documents,

including the Shareholder Letter, not otherwise comprised in the documents

listed in this Part 1 of Schedule 3.

3

Legal opinions

(a)

If a Security Party is incorporated in a jurisdiction other than England and

Wales or if any Finance Document is governed by the laws of a jurisdiction

other than England and Wales, a legal opinion of the legal advisers to the

Agent in each relevant jurisdiction, substantially in the form or forms provided

to the Agent prior to signing this Agreement or confirmation satisfactory to

the Agent that such an opinion will be given.

4

Other documents and evidence

(a)

Drawdown Notice

A duly completed Drawdown Notice.

(b)

Process agent

Evidence that any process agent referred to in Clause 23.5

(

Service of process

) and any process agent appointed under any other

Finance Document has accepted its appointment.

(c)

Other authorisations

A copy of any other consent, licence, approval,

authorisation or other document, opinion or assurance which the Agent

considers to be necessary or desirable (if it has notified the Borrowers

accordingly) in connection with the entry into and performance of the

transactions contemplated by any of the Relevant Documents or for the

validity and enforceability of any of the Relevant Documents.

(d)

Financial statements

Copies of the Original Financial Statements of each

Borrower and the Guarantor.

(e)

Compliance Certificate

A Compliance Certificate signed by the Chief

Financial Officer of the Guarantor setting out (in reasonable detail)

computations as to compliance with Clause 12.2 (

Financial covenants

) and

Clause 10.12 (

Additional Security

) as at the date as at which the Guarantor's

latest financial statements were drawn up, to be delivered to the Agent on or

before the due date for delivering the Drawdown Request pursuant to

Clause 4.1 (

Drawdown Request

).

(f)

Fees

Evidence that the fees, costs and expenses then due from the

Borrowers under Clause 8 (

Indemnities

) and Clause 9 (

Fees

) have been

paid or will be paid by the relevant Drawdown Date.

(g)

"Know your customer" documents

Such documentation and other

evidence as is reasonably requested by the Agent in order for the Lenders

to comply with all necessary "know your customer" or similar identification

procedures in relation to the transactions contemplated in the Finance

Documents, including (without limitation) documentation in relation to the

Borrowers, the Guarantor's signatories to the Finance Documents, directors

and the Shareholder.

Part 2

Conditions subsequent

1

Evidence of Borrower's title

Certificate of ownership and encumbrance (or equivalent) issued by the Registrar of

Ships (or equivalent official) of the Approved Flag confirming that (a) the Vessel is

permanently registered under that flag in the ownership of the Borrower, (b) the

Mortgage has been registered with first priority against the Vessel and (c) there are

no further Encumbrances registered against the Vessel.

2

Letters of undertaking

Letters of undertaking in respect of the Insurances as required by the Security

Documents together with copies of the relevant policies or cover notes or entry

certificates duly endorsed with the interest of the Finance Parties.

3

Acknowledgements of notices

Acknowledgements of all notices of assignment and/or charge given pursuant to any

Security Documents received by the Agent pursuant to Part 1 of this Schedule 3.

4

Legal opinions

Such of the legal opinions specified in Part 1 of this Schedule 3 as have not already

been provided to the Agent.

5

Master's receipt

If applicable, the master's receipt for the Mortgage.

Schedule 4

Form of Drawdown Notice

To:

The Export-Import Bank of China

From:

Aster Shipping Company Inc.

Aerik Shipping Company Inc.

[ ] 2016

Dear Sirs

Drawdown Notice

We refer to the Loan Agreement dated 2016 made between ourselves and

yourselves (the "

Agreement

").

Words and phrases defined in the Agreement have the same meaning when used in this

Drawdown Notice.

[Pursuant to Clause 3.1 of the Agreement, we irrevocably request that you advance the

Tranche in respect of the Vessel with hull number [H2548] [H2548] [DY2006] in the 

sum of [ ] to us on 20 ,

which is a Business Day, by paying the amount of that Tranche in accordance with the terms of

the Building Contract for hull no. [H2548] [H2549].]

OR*

[Pursuant to Clause 3.3 (

Prepositioning of funds

) of the Agreement, we irrevocably request that

you advance the Tranche in respect of the Vessel with hull number [H2548] [H2548] [DY2006]

in the sum of [ ] to us on 20

, which is a Prepositioning Date, by prepositioning such sum in accordance with the terms of

the Building Contract for hull no. [H2548] [H2549]. We acknowledge that the prepositioning of

such funds shall constitute an advance of the Vessel Loan under Clause 3 (Advance) of the

Agreement.]

We warrant that the representations and warranties contained in Clause 10.1 of the Agreement

are true and correct at the date of this Drawdown Notice and will be true and correct on

 20 , that no Default has occurred and is continuing, and that no Default will result

from the advance of the Tranche requested in this Drawdown Notice.

We select the period of [ ] months as the first Interest Period.

Yours faithfully

.................................

For and on behalf of

Aster Shipping Company Inc.

Aerik Shipping Company Inc.

*Delete as appropriate

Schedule 5

Form of Transfer Certificate

To:

The Export–Import Bank of China

Transfer Certificate

This transfer certificate relates to a secured loan facility agreement (as from time to time

amended, varied, supplemented or novated the "

Loan Agreement

") dated 2016,

on the terms and subject to the conditions of which a secured loan facility of up to $58,440,000

was made available to Aster Shipping Company Inc. and Aerik Shipping Company Inc. on a

joint and several basis by a syndicate of banks on whose behalf you act as agent and security

agent.

1

Terms defined in the Loan Agreement shall, unless otherwise expressly indicated,

have the same meaning when used in this certificate. The terms "

Transferor

" and

"

Transferee

" are defined in the schedule to this certificate.

2

The Transferor:

2.1

confirms that the details in the Schedule under the heading "

Transferor's

Commitment

" accurately summarise its Commitment; and

2.2

requests the Transferee to accept by way of novation the transfer to the

Transferee of the amount of the Transferor's Commitment specified in the

Schedule by counter-signing and delivering this certificate to the Agent at its

address for communications specified in the Loan Agreement.

3

The Transferee requests the Agent to accept this certificate as being delivered to the

Agent pursuant to and for the purposes of clause 14.4 of the Loan Agreement so as

to take effect in accordance with the terms of that clause on the Transfer Date

specified in the Schedule.

4

The Agent confirms its acceptance of this certificate for the purposes of clause 14.4

of the Loan Agreement.

5

The Transferee confirms that:

5.1

it has received a copy of the Loan Agreement together with all other

information which it has required in connection with this transaction;

5.2

it has not relied and will not in the future rely on the Transferor or any other

party to the Loan Agreement to check or enquire on its behalf into the legality,

validity, effectiveness, adequacy, accuracy or completeness of any such

information; and

5.3

it has not relied and will not in the future rely on the Transferor or any other

party to the Loan Agreement to keep under review on its behalf the financial

condition, creditworthiness, condition, affairs, status or nature of any Security

Party.

6

Execution of this certificate by the Transferee constitutes its representation and

warranty to the Transferor and to all other parties to the Loan Agreement that it has

the power to become a party to the Loan Agreement as a Lender on the terms of the

Loan Agreement and has taken all steps to authorise execution and delivery of this

certificate.

7

The Transferee undertakes with the Transferor and each of the other parties to the

Loan Agreement that it will perform in accordance with their terms all those obligations

which by the terms of the Loan Agreement will be assumed by it after delivery of this

certificate to the Agent and the satisfaction of any conditions subject to which this

certificate is expressed to take effect.

8

The Transferor makes no representation or warranty and assumes no responsibility

with respect to the legality, validity, effectiveness, adequacy or enforceability of any

Finance Document or any document relating to any Finance Document, and

assumes no responsibility for the financial condition of any Finance Party or for the

performance and observance by any Security Party of any of its obligations under

any Finance Document or any document relating to any Finance Document and any

conditions and warranties implied by law are expressly excluded.

9

The Transferee acknowledges that nothing in this certificate or in the Loan

Agreement shall oblige the Transferor to:

9.1

accept a re-transfer from the Transferee of the whole or any part of the rights,

benefits and/or obligations transferred pursuant to this certificate; or

9.2

support any losses directly or indirectly sustained or incurred by the

Transferee for any reason including, without limitation, the non-performance

by any party to any Finance Document of any obligations under any Finance

Document.

10

The address and fax number of the Transferee for the purposes of clause 18 of the

Loan Agreement are set out in the Schedule.

11

This certificate may be executed in any number of counterparts each of which shall

be original but which shall together constitute the same instrument.

12

This certificate and any non-contractual obligations arising out of or in connection with

it shall be governed by and interpreted in accordance with English law.

The Schedule

1

Transferor:

2

Transferee:

3

Transfer Date (not earlier than the fifth Business Day after the date of delivery of the

Transfer Certificate to the Agent):

4

Transferor's Commitment:

5

Amount transferred:

6

Transferee's address and fax number for the purposes of clause 18 of the Loan

Agreement:

[

name of Transferor

] [

name of Transferee

]

By: By:

Date: Date:

The Export-Import Bank of China

as Agent

By:

Date:

Schedule 6

Form of Compliance Certificate

To:

The Export – Import Bank of China

From:

Diana Shipping Inc.

Dated:

Dear Sirs

Aster Shipping Company Inc.

and

Aerik Shipping Company Inc. - Loan Agreement

dated [ ] 2016 (the "Agreement")

We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement

have the same meaning when used in this Compliance Certificate unless given a different

meaning in this Compliance Certificate.

We confirm that:

We maintain Cash of not less than five hundred thousand Dollars ($500,000) for each

Fleet Vessel;

Each Borrower maintains in the relevant Earnings Account a credit balance of not less than

two hundred thousand Dollars ($200,000);

The Adjusted Net Worth is not less than one hundred and fifty million Dollars ($150,000,000);

and

The Adjusted Net Worth exceeds twenty five per cent (25%) of the Total Assets.

We also confirm that the Borrowers are in compliance with Clause 10.12 (

Additional Security

)

[and that no Default is continuing.]

Signed

by

Chief Financial Officer of

Diana Shipping

Inc.

In witness

of which the parties to this Agreement have executed this Agreement the day and

year first before written.

Signed

by

As duly authorized for and on behalf of

Aster Shipping Company Inc.

signature of witness

signature

print name

name address

print name of witness

Signed

by

As duly authorized for and on behalf of

Aerik Shipping Company Inc.

signature of witness

signature

print name

name address

print name of witness

Signed

by

As duly authorized for and on behalf of

The Export-Import Bank of China

(as the Lender)

signature

Signed

by

As duly authorized for and on behalf of

The Export-Import Bank of China

(as the Arranger)

signature of witness

signature

print name

name address

print name of witness

Signed

by

As duly authorized for and on behalf of

The Export-Import Bank of China

(as the Agent)

signature of witness

signature

print name

name address

print name of witness

Signed

by

As duly authorized for and on behalf of

The Export-Import Bank of China

(as the Security Agent)

signature

Signatures

The Borrowers

Executed

as a deed by

Aster Shipping Company Inc.

acting by its attorney-in- fact/authorised

signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

Executed

as a deed by

Aerik Shipping Company Inc.

acting by its attorney-in- fact/authorised

signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

The Guarantor

Executed

as a deed by

Diana Shipping Inc.

acting by its attorney-in-fact/authorised signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

The Other Obligor

Executed

as a deed by

Diana Shipping Services S.A.

acting by its attorney-in- fact/authorised

signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

The Lenders

Executed

as a deed by

The Export-Import Bank of China

acting by its attorney-in- fact/authorised

signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

The Arranger

Executed

as a deed by

The Export-Import Bank of China

acting by its attorney-in- fact/authorised

signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

The Agent

Executed

as a deed by

The Export-Import Bank of China

acting by its attorney-in- fact/authorised

signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

The Security Agent

Executed

as a deed by

The Export-Import Bank of China

acting by its attorney-in- fact/authorised

signatory*

(*delete as applicable)

in the presence of:

----------------------------------

signature

print name

signature of witness

print name of witness

address of witness

EX-4.53

exhibit453

EX-97.1

DIANA SHIPPING INC.

POLICY REGARDING THE RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION

I.

 Introduction

The Board of Diana Shipping Inc., a Marshall Islands corporation (the “Company”), is dedicated to

maintaining and enhancing a culture that emphasizes integrity and accountability and that reinforces the

Company’s pay-for-performance compensation philosophy. In accordance with the applicable rules of the

New York Stock Exchange (the “Exchange Rules”), and Section 10D and Rule 10D-1 of the Securities

Exchange Act of 1934, as amended (the “Exchange Act”), the Board has therefore adopted this Policy,

which provides for the recoupment, otherwise referred to as “clawback”, of certain erroneously awarded

Incentive-Based Compensation from Executive Officers in the event of an Accounting Restatement

resulting from material noncompliance with financial reporting requirements under the federal securities

laws, and which is intended to comply with Section 954 of the Dodd-Frank Wall Street Reform and

Consumer Protection Act. All capitalized terms used and not otherwise defined herein shall have the

meanings set forth in Section II.

II.

 Definitions 

(1)

“

Accounting Restatement

” means an accounting restatement due to the material noncompliance

of the Company with any financial reporting requirement under the securities laws, including any

required accounting restatement to correct an error in previously issued financial statements that is

material to the previously issued financial statements (a “Big R” or reissuance restatement), or that

would result in a material misstatement if the error were corrected in the current period or left

uncorrected in the current period (a “little r” or revision restatement). For the avoidance of doubt, in

no event will a restatement of the Company’s financial statements that is not due in whole or in part

to the Company’s material noncompliance with any financial reporting requirement under applicable

law (including any rule or regulation promulgated thereunder) be considered an Accounting

Restatement under this Policy. For example, a restatement due exclusively to a retrospective

application of any one or more of the following will not be considered an Accounting Restatement

under this Policy: (i) a change in accounting principles; (ii) revision to reportable segment

information due to a change in the structure of the Company’s internal organization; (iii)

reclassification due to a discontinued operation; (iv) application of a change in reporting entity, such

as from a reorganization of entities under common control; and (v) revision for stock splits, reverse

stock splits, stock dividends or other changes in capital structure.

(2)

“

Board

”

means the Board of Directors of the Company. 

(3)

“

Clawback Eligible Incentive Compensation

” means all Incentive-Based Compensation

Received by an Executive Officer (i) on or after the effective date of the applicable Exchange rules

adopted in order to comply with Rule 10D-1, (ii) after beginning service as an Executive Officer, (iii)

who served as an Executive Officer at any time during the applicable performance period relating

to the applicable Incentive-Based Compensation (whether or not such Executive Officer is serving

as such at the time the Erroneously Awarded Compensation is required to be repaid to the

Company), (iv) while the Company has a class of securities listed on a national securities exchange

or a national securities association, and (v) during the applicable Clawback Period (as defined

below).

(4)

“

Clawback Period

” means, with respect to any Accounting Restatement, the three completed fiscal

years of the Company immediately preceding the Restatement Date (as defined below), and if the

Company changes its fiscal year, any transition period of less than nine months within or

immediately following those three completed fiscal years.

(5)

“

Committee

”

means the

Compensation Committee of the Company (if composed entirely of

independent directors, or in the absence of such a committee, a majority of independent directors

serving on the Board).

(6)

“

Erroneously Awarded Compensation

” means, with respect to each Executive Officer in

connection with an Accounting Restatement, the amount of Clawback Eligible Incentive

Compensation that exceeds the amount of Incentive-Based Compensation that otherwise would

have been Received had it been determined based on the restated amounts, computed without

regard to any taxes paid.

(7)

“

Exchange

” means the New York Stock Exchange.

(8)

“

Executive Officer

” means each individual who is (a) a current or former executive officer, as

determined by the Committee (as defined below) in accordance with Section 10D and Rule 10D-1 of

the Exchange Act and the listing standards of the Exchange, (b) a current or former employee who is

classified by the Committee as an executive officer of the Company, which includes without limitation

any of the Company’s president, principal financial officer, principal accounting officer (or if there is no

such accounting officer, the controller), vice president in charge of a principal business unit, division

or function (such as sales, administration or finance), and any other person who performs policy-

making functions for the Company (including executive officers of a parent or subsidiary if they perform

policy-making functions for the Company), and (3) an employee who may from time to time be deemed

subject to the Policy by the Committee. For the avoidance of doubt, the identification of an executive

officer for purposes of this Policy shall include each executive officer who is or was identified pursuant

to Item 401(b) of Regulation S-K or Item 6.A of Form 20-F, as applicable.

(9)

“

Financial Reporting Measures

” means measures that are determined and presented in

accordance with the accounting principles used in preparing the Company’s financial statements,

and all other measures that are derived wholly or in part from such measures. Stock price and total

shareholder return (and any measures that are derived wholly or in part from stock price or total

shareholder return) shall, for purposes of this Policy, be considered Financial Reporting Measures.

For the avoidance of doubt, a Financial Reporting Measure need not be presented in the Company’s

financial statements or included in a filing with the SEC. 

(10)

“

Incentive-Based Compensation

” shall have the meaning set forth in Section III below.

(11)

“

Exchange Effective Date

”

 means October 2, 2023.

(12)

“

Policy

”

means this Clawback Policy, as the same may be amended and/or restated from time to

time.

(13)

Incentive-Based Compensation will be deemed “

Received

” in the Company’s fiscal period during

which the Financial Reporting Measure specified in the Incentive-Based Compensation

documentation is attained, even if (a) the payment or grant of the Incentive-Based Compensation

to the Executive Officer occurs after the end of that period or (b) the Incentive-Based Compensation

remains contingent and subject to further conditions thereafter, such as time-based vesting. 

(14)

“

Restatement Date

” means the earlier to occur of (i) the date the Board, a committee of the Board,

or the officer(s) of the Company authorized to take such action if Board action is not required,

concludes, or reasonably should have concluded, that the Company is required to prepare an

Accounting Restatement, or (ii) the date a court, regulator or other legally authorized body directs

the Company to prepare an Accounting Restatement.

(15)

“

SARs

”

means shareholder appreciate rights.

(16)

“

SEC

”

means the U.S. Securities and Exchange Commission. 

III.

 Incentive-Based Compensation

“Incentive-Based Compensation” shall mean any compensation that is granted, earned or vested wholly or

in part upon the attainment of a Financial Reporting Measure.

 For purposes of this Policy, specific examples of Incentive-Based Compensation include, but are not

limited to:

●

 Non-equity incentive plan awards that are earned based, wholly or in part, on satisfaction of a

Financial Reporting Measure performance goal;

●

 Bonuses paid from a “bonus pool,” the size of which is determined, wholly or in part, based on

satisfaction of a Financial Reporting Measure performance goal;

●

 Other cash awards based on satisfaction of a Financial Reporting Measure performance goal;

●

 Restricted stock, restricted stock units, performance share units, stock options and SARs that are

granted or become vested, wholly or in part, on satisfaction of a Financial Reporting Measure

performance goal; and

●

 Proceeds received upon the sale of shares acquired through an incentive plan that were granted

or vested based, wholly or in part, on satisfaction of a Financial Reporting Measure performance

goal.

For purposes of this Policy, Incentive-Based Compensation excludes:

●

 Any base salaries (except with respect to any salary increases earned, wholly or in part, based on

satisfaction of a Financial Reporting Measure performance goal);

●

 Bonuses paid solely at the discretion of the Committee or Board that are not paid from a “bonus

pool” that is determined by satisfying a Financial Reporting Measure performance goal;

●

 Bonuses paid solely upon satisfying one or more subjective standards and/or completion of a

specified employment period;

●

 Non-equity incentive plan awards earned solely upon satisfying one or more strategic measures

(e.g., consummating a merger or divestiture) or operational measures (e.g., completion of a project,

acquiring a specified number of vessels, attainment of a certain market share); and

●

 Equity awards that vest solely based on the passage of time and/or satisfaction of one or more non-

Financial Reporting Measures (e.g., a time-vested award, including time-vesting stock options or

restricted share rights).

IV.

 Administration and Interpretation 

This Policy shall be administered by the Committee, and any determinations made by the Committee shall

be final and binding on all affected individuals. The Committee shall determine the amount of any

Erroneously Awarded Compensation Received by each Executive Officer and shall promptly deliver written

notice to each Executive Officer containing the amount of any Erroneously Awarded Compensation and a

demand for repayment or return of such compensation, as applicable. For the avoidance of doubt, recovery

of Erroneously Awarded Compensation is on a “no fault” basis, meaning that it will occur regardless of

whether the Executive Officer engaged in misconduct or was otherwise directly or indirectly responsible, in

whole or in part, for the Accounting Restatement.

The Committee is authorized to interpret and construe this Policy and to make all determinations and to

take such actions as may be necessary, appropriate, or advisable for the administration of this Policy and

for the Company’s compliance with the Exchange Rules, Section 10D, Rule 10D-1 and any other applicable

law, regulation, rule or interpretation of the SEC or the Exchange promulgated or issued in connection

therewith.

V.

Recovery of Erroneously Awarded Compensation

(1)

 In the event of an Accounting Restatement, the Committee shall promptly determine in good faith

the amount of any Erroneously Awarded Compensation Received in accordance with the Exchange

Rules and Rule 10D-1 for each Executive Officer in connection with such Accounting Restatement

and shall promptly thereafter provide each Executive Officer with a written notice containing the

amount of Erroneously Awarded Compensation (without regard to any taxes paid thereon by the

Executive Officer) and a demand for repayment or return, as applicable.

a.

 Cash Awards. With respect to cash awards, the Erroneously Awarded Compensation is the

difference between the amount of the cash award (whether payable as a lump sum or over

time) that was Received and the amount that should have been received applying the

restated Financial Reporting Measure.

b.

 Cash Awards Paid from Bonus Pools. With respect to cash awards paid from bonus pools,

the Erroneously Awarded Compensation is the pro rata portion of any deficiency that results

from the aggregate bonus pool that is reduced based on applying the restated Financial

Reporting Measure.

c.

 Equity Awards. With respect to equity awards, if the shares, options or SARs are still held

at the time of recovery, the Erroneously Awarded Compensation is the number of such

securities Received in excess of the number that should been received applying the restated

Financial Reporting Measure (or the value in excess of that number). If the options or SARs

have been exercised, but the underlying shares have not been sold, the Erroneously

Awarded Compensation is the number of shares underlying the excess options or SARs (or

the value thereof). If the underlying shares have already been sold, then the Committee

shall determine the amount which most reasonably estimates the Erroneously Awarded

Compensation.

d.

 Compensation Based on Stock Price or Total Shareholder Return. For Incentive-Based

Compensation based on (or derived from) stock price or total shareholder return, where the

amount of Erroneously Awarded Compensation is not subject to mathematical recalculation

directly from the information in the applicable Accounting Restatement, (i) the amount shall

be determined by the Committee based on a reasonable estimate of the effect of the

Accounting Restatement on the stock price or total shareholder return upon which the

Incentive-Based Compensation was Received; and (ii) the Committee and/or Board shall

maintain documentation of such determination of that reasonable estimate and provide such

documentation to the Exchange in accordance with applicable listing standards.

(2)

 The Committee shall have discretion to determine the appropriate means of recovering

Erroneously Awarded Compensation based on the particular facts and circumstances.

Notwithstanding the foregoing, except as set forth in Section VI below, in no event may the

Company accept an amount that is less than the amount of Erroneously Awarded

Compensation in satisfaction of an Executive Officer’s obligations hereunder.

(3)

 To the extent that the Executive Officer has already reimbursed the Company for any

Erroneously Awarded Compensation Received under any duplicative recovery obligations

established by the Company or applicable law, it shall be appropriate for any such reimbursed

amount to be credited to the amount of Erroneously Awarded Compensation that is subject to

recovery under this Policy. To the extent that the Erroneously Awarded Compensation is

recovered under a foreign recovery regime, the recovery would meet the obligations of Rule

10D-1.

(4)

 To the extent that an Executive Officer fails to repay all Erroneously Awarded Compensation

to the Company when due, the Company shall take all actions reasonable and appropriate to

recover such Erroneously Awarded Compensation from the applicable Executive Officer. The

applicable Executive Officer shall be required to reimburse the Company for any and all

expenses reasonably incurred (including legal and other collection related fees) by the

Company in recovering such Erroneously Awarded Compensation.

VI.

 Discretionary Recovery

Notwithstanding anything herein to the contrary, the Company shall not be required to take the actions

contemplated by Section V above if the Committee determines that recovery would be impracticable and

any of the following three conditions are met.

(1)

 The Committee has determined that the direct expenses, such as reasonable legal expenses and

consulting fees, paid to a third party to assist in enforcing the Policy would exceed the amount to

be recovered. In order for the Committee to make this determination, the Company must make a

reasonable attempt to recover the Erroneously Awarded Compensation, document such attempt(s)

to recover, and provide such documentation to the Exchange; 

(2)

 Recovery would violate home country law where that law was adopted prior to November 28, 2022,

provided that, before determining that it would be impracticable to recover any amount of

Erroneously Awarded Compensation based on violation of home country law, the Company has

obtained an opinion of home country counsel, acceptable to the Exchange, that recovery would

result in such a violation and a copy of the opinion is provided to Exchange;

(3)

 Recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are

broadly available to employees of the Company, to fail to meet the requirements of Section

401(a)(13) or Section 411(a) of the Internal Revenue Code of 1986, as amended, and regulations

thereunder.

VII.

 Recoupment Period Covered and Amount

If an Accounting Restatement occurs, the Committee shall review all Incentive-Based Compensation that

was granted, vested or earned on the basis of having met or exceeded Financial Reporting Measures and

that was Received by an Executive Officer during the Clawback Period. With respect to each Executive

Officer, the Committee shall, as provided under this Policy, seek to require the forfeiture or repayment of

(1) the Erroneously Awarded Compensation, whether vested or unvested and including proceeds received

upon the sale of shares acquired through an incentive plan that were granted or vested based wholly or in

part on satisfying a Financial Reporting Measure, Received during the Clawback Period in the event of an

Accounting Restatement, and (2) to the extent the Executive Officer engages in Detrimental Conduct,

applicable Incentive-Based Compensation received thereafter.

Compensation shall be deemed to have been Received in the fiscal period in which the Financial Reporting

Measure is attained, even if the Incentive-Based Compensation is not actually paid until a later date or

where the compensation is subject to additional service-based or non-financial goal-based vesting

conditions after the period ends. The amount to be recovered will be as provided for in this Policy.

VIII.

 Method of Recovery of Erroneously Awarded Compensation

The Committee will determine, in its sole discretion, the method for recovering Erroneously Awarded

Compensation hereunder, which may include, without limitation:

(1)

 Requiring reimbursement of cash Incentive-Based Compensation previously paid;

(2)

 Seeking recovery of any gain realized on the granting, vesting, exercise, settlement, sale, transfer

or other disposition of any equity or equity-based awards;

(3)

 Offsetting the recouped amount from any compensation otherwise owed by the Company or its

affiliates to the Executive Officer;

(4)

 Cancelling outstanding vested or unvested equity or equity-based awards and/or reducing

outstanding future payments due or possibly due in respect of amounts already Received; and/or

(5)

 Taking any other remedial and recovery action permitted by law, as determined by the Committee.

IX.

 Disclosure Requirements

The Company shall file all disclosures with respect to this Policy in accordance with the requirements of

the federal securities laws, including the disclosure required by the rules and applicable filings required to

be made with the SEC.

X.

 No Indemnification

The Company shall not be permitted to insure or indemnify any Executive Officer against (i) the loss of any

Erroneously Awarded Compensation that is repaid, returned or recovered pursuant to the terms of this

Policy, or (ii) any claims relating to the Company’s enforcement of its rights under this Policy. Further, the

Company shall not enter into any agreement that exempts any Incentive-Based Compensation that is

granted, paid or awarded to an Executive Officer from the application of this Policy or that waives the

Company’s right to recovery of any Erroneously Awarded Compensation, and this Policy shall supersede

any such agreement (whether entered into before, on or after the Effective Date of this Policy). While an

Executive Officer may purchase a third-party insurance policy to fund potential recovery obligations under

this Policy, the Company may not pay or reimburse the Executive Officer for premiums for such an

insurance policy.

XI.

 Effective Date

This Policy shall be effective as of the Exchange Effective Date.

XII.

 Amendment; Termination

The Committee and thereafter, the Board, may amend this Policy from time to time in its discretion and

shall amend this Policy as it deems necessary to comply with the requirements of any federal securities

laws, SEC rule or the rules of any national securities exchange or national securities association on which

the Company’s securities are then listed. Notwithstanding anything in this Section XII to the contrary, no

amendment or termination of this Policy shall be effective if such amendment or termination would (after

taking into account any actions taken by the Company contemporaneously with such amendment or

termination) cause the Company to violate any federal securities laws, SEC rule, or the rules of any national

securities exchange or national securities association on which the Company’s securities are then listed.

XIII.

 Other Recovery Rights

This Policy will be applied to the fullest extent of the law. The Board and/or the Committee may, to the

fullest extent of the law, require that any employment agreement, equity award agreement, or other plan,

agreement or arrangement providing for incentive compensation shall, as a condition to the grant, receipt

or vesting of any benefit thereunder, require an Executive Officer to agree to abide by the terms of this

Policy, including requiring the execution of the attestation and acknowledgement set forth in Exhibit A to

this Policy. Any right of recoupment under this Policy is in addition to, and not in lieu of, any other remedies

or rights of recoupment that may be available to the Company pursuant to the terms of any similar policy

in any employment agreement, equity or equity-based plan or award agreement, or other plan, agreement

or arrangement providing for incentive compensation and any other legal remedies available to the

Company. However, this Policy shall not provide for recovery of Incentive-Based Compensation that the

Company has already recovered pursuant to Section 304 of the Sarbanes-Oxley Act or other recovery

obligations.

XIV.

 Successors

This Policy shall be binding and enforceable against all Executive Officers and their beneficiaries,

executors, administrators, permitted transferees, permitted assignees or other legal representatives, and

shall inure to the benefit of any successor or assignee of the Company.

Exhibit A

ATTESTATION AND ACKNOWLEDGEMENT OF POLICY REGARDING THE RECOVERY OF

ERRONEOUSLY AWARDED COMPENSATION

By my signature below, I acknowledge and agree that:

●

I have received and read the attached Policy Regarding the Recovery of Erroneously Awarded

Compensation (this “

Policy

”).

●

I hereby agree to abide by all of the terms of this Policy both during and after my employment with

the Company, including, without limitation, by promptly repaying or returning any Erroneously

Awarded Compensation to the Company as determined in accordance with this Policy.

Signature:_____________________

Printed Name:_________________

Date:________________________

XML

Cover	12 Months Ended
	Dec. 31, 2023 shares
Entity Listings [Line Items]
Document type	20-F
Document registration statement	false
Document annual report	true
Document period end date	Dec. 31, 2023
Current fiscal year end date	--12-31
Document transition report	false
Document shell company report	false
Entity file number	001-32458
Entity registrant name	DIANA SHIPPING INC.
Entity incorporation state country code	1T
Entity address, address line one	Pendelis 16
Entity address, city or town	Athens
Entity address, postal zip code	175 64 Palaio Faliro
Entity address, country	GR
Contact personnel name	Mr. Ioannis Zafirakis
Entity common stock shares outstanding	113,065,725
Entity well known seasoned issuer	No
Entity voluntary filers	No
Entity current reporting status	Yes
Entity interactive data current	Yes
Entity filer category	Accelerated Filer
Entity emerging growth company	false
Document accounting standard	U.S. GAAP
Entity shell company	false
Entity central index key	0001318885
Document fiscal year focus	2023
Document fiscal period focus	FY
Document Fin Stmt Error Correction Flag	false
ICFR auditor attestation flag	true
Amendment flag	false
Auditor firm ID	1457
Auditor name	Ernst and Young
Auditor location	Athens, Greece
Business Contact [Member]
Entity Listings [Line Items]
Entity address, address line one	Pendelis 16
Entity address, city or town	Athens
Entity address, postal zip code	175 64 Palaio Faliro
Entity address, country	GR
Contact personnel name	Mr. Ioannis Zafirakis
Country Region	30
City area code	210
Local phone number	9470-100
Contact personnel fax number	30-210-9470-101
Contact personnel email address	izafirakis@dianashippinginc.com
Common Stock [Member]
Entity Listings [Line Items]
Title of 12(b) security	Common Stock, $0.01 par value including the Preferred Stock Purchase Rights
Trading symbol	DSX
Security exchange name	NYSE
Series B Cumulative Redeemable Perpetual Preferred Shares at 8.875% [Member]
Entity Listings [Line Items]
Title of 12(b) security	8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value
Trading symbol	DSXPRB
Security exchange name	NYSE
Warrants To Purchase Common Stock [Member]
Entity Listings [Line Items]
Title of 12(b) security	Warrants to Purchase Common Stock, Expiring on or about December 14, 2026
Trading symbol	DSX WS
Security exchange name	NYSE

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents (Note 2(e))	$ 101,592	$ 76,428
Time deposits (Note 2(e))	40,000	46,500
Accounts receivable, trade (Note 2(f))	5,870	6,126
Due from related parties (Note 4)	149	216
Inventories (Note 2(g))	5,056	4,545
Prepaid expenses and other assets	8,696	6,749
Investments in equity securities (Note 5 (b))	20,729	0
Fair value of derivatives	129	0
Total Current Assets	182,221	140,564
Fixed Assets:
Advances for vessel acquisitions (Note 6)	0	24,123
Vessels, net (Note 6)	900,192	949,616
Property and equipment, net (Note 7)	24,282	22,963
Total fixed assets	924,474	996,702
Other Noncurrent Assets
Restricted cash, non-current (Note 8)	20,000	21,000
Due from related parties, non-current (Note 4)	319	0
Equity method investments (Note 4)	15,769	506
Investments in related party (Note 5(a))	8,318	7,744
Other non-current assets	31	101
Deferred costs	15,278	16,302
Total Non-current Assets	984,189	1,042,355
Total assets	1,166,410	1,182,919
Current Liabilities
Current portion of long-term debt, net of deferred financing costs (Note 6)	49,512	91,495
Current portion of finance liabilities, net of deferred financing costs (Note 7)	9,221	8,802
Accounts payable	9,663	11,242
Due to related parties (Note 3)	759	136
Accrued liabilities	12,416	12,134
Deferred revenue	3,563	7,758
Total Current Liabilities	85,134	131,567
Non-current Liabilities
Long-term debt, net of current portion and deferred financing costs (Note 8)	461,131	431,016
Finance liabilities, net of current portion and deferred financing costs (Note 9)	122,908	132,129
Fair value of derivatives	568	0
Warrant liability (Note 11(g))	6,332	0
Other non-current liabilities	1,316	879
Total Noncurrent Liabilities	592,255	564,024
Commitments and contingencies (Note 10)
Stockholders' Equity
Preferred stock (Note 11)	26	26
Common stock, $0.01 par value; 1,000,000,000 and 200,000,000 shares authorized and 113,065,725 and 102,653,619 issued and outstanding on December 31, 2023 and 2022, respectively (Note 11)	1,131	1,027
Additional paid in capital	1,101,425	1,061,015
Accumulated other comprehensive income	308	253
Accumulated deficit	(613,869)	(574,993)
Total Stockholders' Equity	489,021	487,328
Total Liabilities and Stockholders' Equity	$ 1,166,410	$ 1,182,919

XML

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	200,000,000
Common stock, shares issued	113,065,725	102,653,619
Common stock, shares outstanding	113,065,725	102,653,619

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
REVENUES:
Time charter revenues	$ 262,098	$ 289,972	$ 214,203
OPERATING EXPENSES
Voyage expenses (Note 12)	13,621	6,942	5,570
Vessel operating expenses	85,486	72,033	74,756
Depreciation and amortization of deferred charges	49,785	43,326	40,492
General and administrative expenses	32,968	29,367	29,192
Management fees to a related party (Note 4(a))	1,313	511	1,432
Insurance recoveries	0	(1,789)	0
Gain on sale of vessels (Notes 6)	(5,323)	(2,850)	(1,360)
Other operating (income)/loss	(1,464)	(265)	603
Operating income, total	85,712	142,697	63,518
OTHER INCOME / (EXPENSES):
Interest expense and finance costs (Note 13)	(49,331)	(27,419)	(20,239)
Interest and other income	8,170	2,737	176
Loss on derivative instruments (Note 8)	(439)	0	0
Loss on extinguishment of debt (Note 8)	(748)	(435)	(980)
Gain on spin-off of OceanPal Inc.	0	0	15,252
Gain on deconsolidation of subsidiary (Note 4(b))	844	0	0
Gain on related party investments (Note 5(a))	1,502	589	0
Unrealized gain on equity securities (Note 5(b))	2,813	0	0
Unrealized gain on warrants (Note 11(g))	1,583	0	0
Gain/(loss) from equity method investments (Note 4)	(262)	894	(333)
Total other expenses, net	(35,868)	(23,634)	(6,124)
Net income	49,844	119,063	57,394
Dividends on series B preferred shares (Notes 11(b) and 14)	(5,769)	(5,769)	(5,769)
Net income attributable to common stockholders	$ 44,075	$ 113,294	$ 51,625
Earnings per common share, basic (Note 14)	$ 0.44	$ 1.42	$ 0.64
Earnings per common share, diluted (Note 14)	$ 0.42	$ 1.36	$ 0.61
Weighted average number of common shares outstanding, basic (Note 14)	100,166,629	80,061,040	81,121,781
Weighted average number of common shares outstanding, diluted (Note 14)	101,877,142	83,318,901	84,856,840

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 49,844	$ 119,063	$ 57,394
Other comprehensive income - Defined benefit plan	55	182	2
Comprehensive income	$ 49,899	$ 119,245	$ 57,396

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Series B Preferred Stock [Member]	Preferred Stock [Member] Series B Preferred Stock [Member]	Preferred Stock [Member] Series C Preferred Stock [Member]	Preferred Stock [Member] Series D Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Other Comprehensive Income / (Loss) [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Series B Preferred Stock [Member]
Balance, shares at Dec. 31, 2020			2,600,000	10,675		89,275,002
Balance at Dec. 31, 2020	$ 428,570		$ 26			$ 893	$ 1,020,164	$ 69	$ (592,582)
Net income	57,394								57,394
Issuance of stock, shares					400
Issuance of stock	254						254
Issuance of restricted stock and compensation cost, shares (Note 11(h))						8,260,000
Issuance of restricted stock and compensation cost (Note 11(h))	7,442					$ 83	7,359
Stock repurchased and retired, shares (Note 11(e))						(12,862,744)
Stock repurchased and retired (Note 11(e))	(45,369)					$ (129)	(45,240)
Dividends on series B preferred stock (Note 11(b))	(5,769)								(5,769)
Dividends on common stock (Note 11(f))	(8,820)								(8,820)
OceanPal Inc. spin-off (Note 11(g))	(40,509)								(40,509)
Other comprehensive income	2							2
Balance, shares at Dec. 31, 2021			2,600,000	10,675	400	84,672,258
Balance at Dec. 31, 2021	393,195		$ 26			$ 847	982,537	71	(590,286)
Net income	119,063								119,063
Issuance of stock, shares						877,581
Issuance of stock	5,322					$ 9	5,313
Issuance of restricted stock and compensation cost, shares (Note 11(h))						1,470,000
Issuance of restricted stock and compensation cost (Note 11(h))	9,282					$ 15	9,267
Stock repurchased and retired, shares (Note 11(e))						(820,000)
Stock repurchased and retired (Note 11(e))	(3,799)					$ (8)	(3,791)
Issuance of common stock for vessel acquisitions, shares (Notes 6 and 11(e))						16,453,780
Issuance of common stock for vessel acquisitions (Notes 6 and 11(e))	67,853					$ 164	67,689
Dividends on series B preferred stock (Note 11(b))	(5,769)								(5,769)
Dividends on common stock (Note 11(f))	(79,812)								(79,812)
Dividends in kind (Note 9(g))	(18,189)								(18,189)
Other comprehensive income	182							182
Balance, shares at Dec. 31, 2022			2,600,000	10,675	400	102,653,619
Balance at Dec. 31, 2022	487,328		$ 26			$ 1,027	1,061,015	253	(574,993)
Net income	49,844								49,844
Issuance of stock, shares						6,628,493
Issuance of stock	22,846					$ 66	22,780
Issuance of restricted stock and compensation cost, shares (Note 11(h))						1,750,000
Issuance of restricted stock and compensation cost (Note 11(h))	9,938					$ 18	9,920
Issuance of common stock for vessel acquisitions, shares (Notes 6 and 11(e))						2,033,613
Issuance of common stock for vessel acquisitions (Notes 6 and 11(e))	7,730					$ 20	7,710
Dividends on series B preferred stock (Note 11(b))		$ (5,769)								$ (5,769)
Dividends on common stock (Note 11(f))	(64,276)								(64,276)
Warrants (Note 11(g))	(7,914)								(7,914)
Dividends in kind (Note 9(g))	(10,761)								(10,761)
Other comprehensive income	55							55
Balance, shares at Dec. 31, 2023			2,600,000	10,675	400	113,065,725
Balance at Dec. 31, 2023	$ 489,021		$ 26			$ 1,131	$ 1,101,425	$ 308	$ (613,869)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flows from Operating Activities:
Net income	$ 49,844,000	$ 119,063,000	$ 57,394,000
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization of deferred charges	49,785,000	43,326,000	40,492,000
Amortization of debt issuance costs (Note 13)	2,620,000	2,286,000	1,865,000
Compensation cost on restricted stock (Note 11(h))	9,938,000	9,282,000	7,442,000
Provision for credit loss and write offs	0	133,000	300,000
Dividend income (Note 5(a))	(3,000)	(100,000)	(69,000)
Pension and other postretirement benefits	55,000	182,000	2,000
Loss on derivative instruments (Notes 8)	439,000	0	0
Gain on sale of vessels (Notes 6)	(5,323,000)	(2,850,000)	(1,360,000)
Gain on related parties investments (Note 5(a))	(1,502,000)	(589,000)	0
Loss on extinguishment of debt (Note 8)	748,000	435,000	980,000
Gain on OceanPal spinoff	0	0	(15,252,000)
Gain on deconsolidation of subsidiary (Note 4(b))	(844,000)	0	0
Gain / (Loss) from equity method investments (Note 4)	262,000	(894,000)	333,000
Unrealized gain on equity securities (Note 5(b))	(2,813,000)	0	0
Unrealized gain from warrants (Note 11(g))	(1,583,000)	0	0
(Increase) / Decrease
Accounts receivable, trade	256,000	(3,427,000)	(1,568,000)
Due from related parties	(252,000)	736,000	(56,000)
Inventories	(511,000)	1,768,000	(1,581,000)
Prepaid expenses and other assets	(1,950,000)	(1,265,000)	1,759,000
Other non-current assets	70,000	(16,000)	(1,177,000)
Investments in equity securities	(17,916,000)
Increase / (Decrease)
Accounts payable, trade and other	(1,761,000)	1,465,000	1,219,000
Due to related parties	(57,000)	(72,000)	154,000
Accrued liabilities	282,000	3,956,000	(2,610,000)
Deferred revenue	(4,195,000)	2,026,000	2,890,000
Other non-current liabilities	437,000	(218,000)	(57,000)
Drydock cost	(5,646,000)	(16,368,000)	(4,531,000)
Net Cash Provided by Operating Activities	70,380,000	158,859,000	89,705,000
Cash Flows from Investing Activities:
Payments to acquire vessels and vessel improvements (Notes 6 and 4(b))	(29,732,000)	(230,302,000)	(17,393,000)
Proceeds from sale of vessels, net of expenses (Note 6)	36,560,000	4,372,000	33,731,000
Payments to acquire investments (Note 4)	(10,595,000)	0	0
Time deposits	6,500,000	(46,500,000)	0
Payments to joint ventures	0	0	(375,000)
Payments to acquire other assets (Note 4(b))	(216,000)	0	0
Cash divested from deconsolidation (Note 4(b))	(771,000)	0	(1,000,000)
Proceeds from convertible loan with limited partnership (Note 4(b))	25,189,000	0	0
Payments to acquire property, furniture and fixture (Note 7))	(2,006,000)	(667,000)	(1,600,000)
Net Cash Provided By/(Used in) Investing Activities	24,929,000	(273,097,000)	13,363,000
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt and finance liabilities (Notes 6 and 7)	57,696,000	275,133,000	101,279,000
Proceeds from issuance of common stock, (Note 11(e))	0	5,266,000	0
Payments for issuance of common stock (Note 11(e))	(79,000)	0	0
Proceeds from issuance of preferred stock, net of expenses	0	0	254,000
Payments of dividends, preferred stock (Note 11(b))	(5,769,000)	(5,769,000)	(5,769,000)
Payments of dividends, common stock (Note 11(f))	(41,427,000)	(79,812,000)	(8,820,000)
Payments for repurchase of common stock	0	(3,799,000)	(45,369,000)
Payments of financing costs (Notes 8 and 9)	(1,724,000)	(3,302,000)	(7,594,000)
Repayments of long-term debt and finance liabilities (Notes 8)	(79,842,000)	(102,839,000)	(93,170,000)
Net Cash Provided by/(Used In) Financing Activities	(71,145,000)	84,878,000	(59,189,000)
Cash, Cash Equivalents and Restricted Cash, Period Increase/(Decrease)	24,164,000	(29,360,000)	43,879,000
Cash, Cash Equivalents and Restricted Cash, Beginning Balance	97,428,000	126,788,000	82,909,000
Cash, Cash Equivalents and Restricted Cash, Ending Balance	121,592,000	97,428,000	126,788,000
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents	101,592,000	76,428,000	110,288,000
Restricted cash, non-current	20,000,000	21,000,000	16,500,000
Cash, Cash Equivalents and Restricted Cash, Total	121,592,000	97,428,000	126,788,000
SUPPLEMENTAL CASH FLOW INFORMATION
Non-cash acquisition of assets (Note 6)	7,809,000	136,038,000	0
Non-cash debt assumed	0	20,571,000
Non-cash Finance Liability	0	47,782,000
Stock issued in noncash financing activities (Note 6)	7,809,000	67,909,000	0
Non-cash investments acquired (Notes 6 and 5(a))	10,000,000	0	0
Noncash dividend (Note 11(f) and 11(g))	41,521,000	0	0
Transfer to investments	0	1,370,000	441,000
Interest paid	$ 46,473,000	$ 21,306,000	$ 19,608,000

XML

Basis of Presentation and General Information

12 Months Ended

Dec. 31, 2023

Basis of Presentation and General Information [Abstract]

Basis of Presentation and General Information

1. Basis of Presentation and General Information 

The accompanying consolidated financial statements include the accounts of Diana Shipping Inc., or DSI,

and its wholly owned subsidiaries (collectively, the “Company”). DSI was formed on

March 8, 1999

, as

Diana Shipping Investment Corp., under the laws of the Republic of Liberia. In February 2005, the

Company’s articles of incorporation were amended. Under the amended articles of incorporation, the

Company was renamed Diana Shipping Inc. and was re-domiciled from the Republic of Liberia to the

Republic of the Marshall Islands.

The Company is engaged in the ocean transportation of dry bulk cargoes worldwide through the ownership

and bareboat charter in of dry bulk carrier vessels. The Company operates its own fleet through Diana

Shipping Services S.A. (or “DSS”), a wholly owned subsidiary and through Diana Wilhelmsen Management

Limited, or DWM, a

50

% owned joint venture (Note 4(a)). The fees paid to DSS are eliminated in

consolidation.

XML

Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

a) Principles of Consolidation

: The accompanying consolidated financial statements have been

prepared in accordance with U.S. generally accepted accounting principles and include the accounts of

Diana Shipping Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have

been eliminated upon consolidation. Under Accounting Standards Codification (“ASC”) 810

“Consolidation”, the Company consolidates entities in which it has a controlling financial interest, by first

considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is

deemed to be the primary beneficiary under the VIE model, or if the Company controls an entity through a

majority of voting interest based on the voting interest model. The Company evaluates financial

instruments, service contracts, and other arrangements to determine if any variable interests relating to an

entity exist. For entities in which the Company has a variable interest, the Company determines if the entity

is a VIE by considering whether the entity’s equity investment at risk is sufficient to finance its activities

without additional subordinated financial support and whether the entity’s at-risk equity holders have the

characteristics of a controlling financial interest. In performing the analysis of whether the Company is the

primary beneficiary of a VIE, the Company considers whether it individually has the power to direct the

activities of the VIE that most significantly affect the entity’s performance and also has the obligation to

absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. If

the Company holds a variable interest in an entity that previously was not a VIE, it reconsiders whether the

entity has become a VIE.

b) Use of Estimates:

The preparation of consolidated financial statements in conformity with U.S.

generally accepted accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at

the date of the consolidated financial statements and the reported amounts of revenues and expenses

during the reporting period. Actual results could differ from those estimates.

c) Other Comprehensive Income / (Loss):

The Company separately presents certain transactions,

which are recorded directly as components of stockholders’ equity. Other Comprehensive Income / (Loss)

is presented in a separate statement.

d) Foreign Currency Translation:

The functional currency of the Company is the U.S. dollar because

the Company’s vessels operate in international shipping markets, and therefore primarily transact business

in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving

other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the

time of the transactions. At the balance sheet dates, monetary assets and liabilities which are denominated

in other currencies are translated into U.S. dollars at the year-end exchange rates. Resulting gains or

losses are included in other operating (income)/loss in the accompanying consolidated statements of

operations.

e) Cash, Cash Equivalents and Time Deposits:

The Company considers highly liquid investments

such as time deposits, certificates of deposit and their equivalents with an original maturity of up to about

three months to be cash equivalents. Time deposits with maturity above three months are removed from

cash and cash equivalents and are separately presented as time deposits. Restricted cash consists mainly

of cash deposits required to be maintained at all times under the Company’s loan facilities (Note 8). As of

December 31, 2023 and 2022, accrued interest income amounted to $

1,206

 and $

578

, respectively and is

included in prepaid expenses and other assets in the accompanying consolidated balance sheets.

f) Accounts Receivable, Trade:

The amount shown as accounts receivable, trade, at each balance

sheet date, includes receivables from charterers for hire from lease agreements, net of provisions for

doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed

individually for purposes of determining the appropriate provision for doubtful accounts. As of December

31, 2023 and 2022 there was

no

 provision for doubtful accounts. The Company does not recognize interest

income on trade receivables as all balances are settled within a year.

g) Inventories:

Inventories consist of lubricants and victualling which are stated, on a consistent

basis, at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the

ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When evidence exists that the net realizable value of inventory is lower than its cost, the difference is

recognized as a loss in earnings in the period in which it occurs. Cost is determined by the first in, first out

method. Amounts removed from inventory are also determined by the first in first out method. Inventories

may also consist of bunkers, when on the balance sheet date, a vessel is without employment. Bunkers, if

any, are also stated at the lower of cost or net realizable value and cost is determined by the first in, first

out method.

h) Vessel Cost

: Vessels are stated at cost which consists of the contract price and any material

expenses incurred upon acquisition or during construction. Expenditures for conversions and major

improvements are also capitalized when they appreciably extend the life, increase the earning capacity or

improve the efficiency or safety of the vessels; otherwise, these amounts are charged to expense as

incurred. Interest cost incurred during the assets' construction periods that theoretically could have been

avoided if expenditure for the assets had not been made is also capitalized. The capitalization rate, applied

on accumulated expenditures for the vessel, is based on interest rates applicable to outstanding borrowings

of the period.

i) Vessels held for sale:

 The Company classifies assets as being held for sale when the respective

criteria are met. Long-lived assets or disposal groups classified as held for sale are measured at the lower

of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet

the criteria to be held for sale. The fair value less cost to sell of an asset held for sale is assessed at each

reporting period it remains classified as held for sale. When the plan to sell an asset changes, the asset is

reclassified as held and used, measured at the lower of its carrying amount before it was recorded as held

for sale, adjusted for depreciation, and the asset’s fair value at the date of the decision not to sell.

j) Sale and leaseback:

 In accordance with ASC 842-40 in a sale-leaseback transaction where the

sale of an asset and leaseback of the same asset by the seller is involved, the Company, as seller-lessee,

should firstly determine whether the transfer of an asset shall be accounted for as a sale under ASC 606.

For a sale to have occurred, the control of the asset would need to be transferred to the buyer and the

buyer would need to obtain substantially all the benefits from the use of the asset. As per the

aforementioned guidance, sale and leaseback transactions, which include an obligation for the Company,

as seller-lessee, to repurchase the asset, or other situations where the leaseback would be classified as a

finance lease, are determined to be failed sales under ASC 842-40. Consequently, the Company does not

derecognize the asset from its balance sheet and accounts for any amounts received under the sale and

leaseback agreement as a financing arrangement.

k) Property and equipment:

 The Company owns the land and building where its offices are located.

The Company also owns part of a plot acquired for office use (Note 7). Land is stated at cost and it is not

subject to depreciation. The building has an estimated useful life of

55 years

 with

no

 residual value.

Furniture, office equipment and vehicles have a useful life of

5 years

, except for a car owned by the

Company, which has a useful life of

10 years

. Computer software and hardware have a useful life of

three

years

. Depreciation is calculated on a straight-line basis.

l) Impairment of Long-Lived Assets:

Long-lived assets are reviewed for impairment whenever

events or changes in circumstances (such as market conditions, obsolesce or damage to the asset,

potential sales and other business plans) indicate that the carrying amount of an asset may not be

recoverable. When the estimate of undiscounted projected net operating cash flows, excluding interest

charges, expected to be generated by the use of an asset over its remaining useful life and its eventual

disposition is less than its carrying amount, the Company evaluates the asset for impairment loss.

Measurement of the impairment loss is based on the fair value of the asset, determined mainly by third

party valuations. 

For vessels, the Company calculates undiscounted projected net operating cash flows by considering the

historical and estimated vessels’ performance and utilization with the significant assumption being future

charter rates for the unfixed days, using the most recent

10

-year average of historical 1 year time charter

rates available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10

-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. Other assumptions used in

developing estimates of future undiscounted cash flow are charter rates calculated for the fixed days using

the fixed charter rate of each vessel from existing time charters, the expected outflows for scheduled

vessels’ maintenance; vessel operating expenses; fleet utilization, and the vessels’ residual value if sold

for scrap. Assumptions are in line with the Company’s historical performance and its expectations for future

fleet utilization under its current fleet deployment strategy. This calculation is then compared with the

vessels’ net book value plus unamortized deferred costs. The difference between the carrying amount of

the vessel plus unamortized deferred costs and their fair value is recognized in the Company's accounts

as impairment loss.

The Company’s impairment assessment did not result in the

recognition of impairment

 on any vessel and

therefore

no

 impairment loss was identified or recorded in 2023, 2022 and 2021.

For property and equipment, the Company determines undiscounted projected net operating cash flows

by considering an estimated monthly rent the Company would have to pay in order to lease a similar

property, during the useful life of the building. No impairment loss was identified or recorded for 2023, 2022

and 2021 and the Company has not identified any other facts or circumstances that would require the write

down of the value of its land or building in the near future.

m) Vessel Depreciation:

Depreciation is computed using the straight-line method over the estimated

useful life of the vessels, after considering the estimated salvage (scrap) value. Each vessel’s salvage

value is equal to the product of its lightweight tonnage and estimated scrap rate. Management estimates

the useful life of the Company’s vessels to be

25 years

 from the date of initial delivery from the shipyard.

Second-hand vessels are depreciated from the date of their acquisition through their remaining estimated

useful life. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its

remaining useful life is adjusted at the date such regulations are adopted.

Effective July 1, 2023, the

Company changed its estimated scrap rate of its vessels from $250 per lightweight ton to $400 per

lightweight ton, calculated based on the average demolition prices in different markets, during the last 15

years.

 For the period from July 1, 2023 to December 31, 2023, this increase in vessels’ salvage values

resulted in decreased depreciation expense, increased operating income and increased net income by

$

3,773

 and increased earnings per share, basic and diluted, by $

0.04

.

n) Deferred Costs

: The Company follows the deferral method of accounting for dry-docking and

special survey costs whereby actual costs incurred are deferred and amortized on a straight-line basis over

the period through the date the next survey is scheduled to become due. Unamortized deferred costs of

vessels that are sold or impaired are written off and included in the calculation of the resulting gain or loss

in the year of the vessel’s sale (Note 6) or impairment.

o) Financing Costs

: Fees paid for obtaining finance liabilities, fees paid to lenders for obtaining new

loans, new bonds, or refinancing existing ones accounted as loan modification, are deferred and recorded

as a contra to debt. Other fees paid for obtaining loan facilities not used at the balance sheet date are

deferred. Fees relating to drawn loan facilities are amortized to interest and finance costs over the life of

the related debt using the effective interest method and fees incurred for loan facilities not used at the

balance sheet date are amortized using the straight-line method according to their availability terms.

Unamortized fees relating to loans or bonds repaid or repurchased or refinanced as debt extinguishment

are written off in the period the repayment, prepayment, repurchase or extinguishment is made and

included in the determination of gain/loss on debt extinguishment. Loan commitment fees are expensed in

the period incurred, unless they relate to loans obtained to finance vessels under construction, in which

case, they are capitalized to the vessels’ cost.

p) Concentration of Credit Risk

: Financial instruments, which potentially subject the Company to

significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The

Company places its temporary cash investments, consisting mostly of deposits, with various qualified

financial institutions and performs periodic evaluations of the relative credit standing of those financial

institutions that are considered in the Company’s investment strategy. The Company limits its credit risk

with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and

generally does not require collateral for its accounts receivable and does not have any agreements to

mitigate credit risk.

q) Accounting for Revenues and Expenses:

Revenues are generated from time charter

agreements which contain a lease as they meet the criteria of a lease under ASC 842. Agreements with

the same charterer are accounted for as separate agreements according to their specific terms and

conditions. All agreements contain a minimum non-cancellable period and an extension period at the option

of the charterer. Each lease term is assessed at the inception of that lease. Under a time charter agreement,

the charterer pays a daily hire for the use of the vessel and reimburses the owner for hold cleanings, extra

insurance premiums for navigating in restricted areas and damages caused by the charterers. Revenues

from time charter agreements providing for varying annual rates are accounted for as operating leases and

thus recognized on a straight-line basis over the non-cancellable rental periods of such agreements, as

service is performed. The charterer pays to third parties port, canal and bunkers consumed during the term

of the time charter agreement, unless they are for the account of the owner, in which case, they are included

in voyage expenses. Voyage expenses also include commissions on time charter revenue (paid to the

charterers, the brokers and the managers) and gain or loss from bunkers resulting mainly from the

difference in the value of bunkers paid by the Company when the vessel is redelivered to the Company

from the charterer under the vessel’s previous time charter agreement and the value of bunkers sold by

the Company when the vessel is delivered to a new charterer (Note 12). Under a time charter agreement,

the owner pays for the operation and the maintenance of the vessel, including crew, insurance, spares and

repairs, which are recognized in operating expenses. The Company, as lessor, has elected not to allocate

the consideration in the agreement to the separate lease and non-lease components (operation and

maintenance of the vessel) as their timing and pattern of transfer to the charterer, as the lessee, are the

same and the lease component, if accounted for separately, would be classified as an operating lease.

Additionally, the lease component is considered the predominant component, as the Company has

assessed that more value is ascribed to the vessel rather than to the services provided under the time

charter contracts. In time charter agreements apart from the agreed hire rate, the Company may be entitled

to an additional income, such as ballast bonus. Ballast bonus is paid by charterers for repositioning the

vessel. The Company analyzes terms of each contract to assess whether income from ballast bonus is

accounted together with the lease component over the duration of the charter or as service component

under ASC 606. Deferred revenue includes cash received prior to the balance sheet date for which all

criteria to recognize as revenue have not been met.

r) Repairs and Maintenance:

 All repair and maintenance expenses including underwater inspection

expenses are expensed in the year incurred. Such costs are included in vessel operating expenses in the

accompanying consolidated statements of operations.

s) Earnings / (loss) per Common Share:

 Basic earnings / (loss) per common share are computed

by dividing net income / (loss) available to common stockholders by the weighted average number of

common shares outstanding during the year. Shares issuable at little or no cash consideration upon

satisfaction of certain conditions, are considered outstanding and included in the computation of basic

earnings/(loss) per share as of the date that all necessary conditions have been satisfied. Diluted earnings

per common share, reflects the potential dilution that could occur if securities or other contracts to issue

common stock were exercised.

t) Segmental Reporting:

The Company engages in the operation of dry-bulk vessels which has been

identified as one reportable segment. The operation of the vessels is the main source of revenue

generation, the services provided by the vessels are similar and they all operate under the same economic

environment. Additionally, the vessels do not operate in specific geographic areas, as they trade worldwide;

they do not trade in specific trade routes, as their trading (route and cargo) is dictated by the charterers;

and the Company does not evaluate the operating results for each type of dry bulk vessels (i.e. Panamax,

Capesize etc.) for the purpose of making decisions about allocating resources and assessing performance.

u) Fair Value Measurements

: The Company classifies and discloses its assets and liabilities carried

at fair value in one of the following categories: Level 1: Quoted market prices in active markets for identical

assets or liabilities; Level 2: Observable market-based inputs or unobservable inputs that are corroborated

by market data; Level 3: Unobservable inputs that are not corroborated by market data.

v) Share Based Payments:

 The Company issues restricted share awards which are measured at

their grant date fair value and are not subsequently re-measured. That cost is recognized over the period

during which an employee is required to provide service in exchange for the award—the requisite service

period (usually the vesting period). No compensation cost is recognized for equity instruments for which

employees do not render the requisite service unless the board of directors determines otherwise.

Forfeitures of awards are accounted for when and if they occur. If an equity award is modified after the

grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair

value of the modified award over the fair value of the original award immediately before the modification.

w) Equity method investments:

 Investments in common stock in entities over which the Company

exercises significant influence but does not exercise control are accounted for by the equity method of

accounting. Under this method, the Company records such an investment at cost (or fair value if a

consequence of deconsolidation) and adjusts the carrying amount for its share of the earnings or losses of

the entity subsequent to the date of investment and reports the recognized earnings or losses in income.

Dividends received, if any, reduce the carrying amount of the investment and are recorded as receivable

on dividend declaration. When the carrying value of an equity method investment is reduced to zero

because of losses, the Company does not provide for additional losses unless it is committed to provide

further financial support to the investee. The Company also evaluates whether a loss in value of an

investment that is other than a temporary decline should be recognized. Evidence of a loss in value might

include absence of an ability to recover the carrying amount of the investment or inability of the investee to

sustain an earnings capacity that would justify the carrying amount of the investment. For equity method

investments that the Company has elected to account for using the fair value option, all subsequent

changes in fair value are included in gain/loss on related party investments.

x) Going concern:

Management evaluates, at each reporting period, whether there are conditions or

events that raise substantial doubt about the Company's ability to continue as a going concern within one

year from the date the financial statements are issued.

y) Shares repurchased and retired:

The Company’s shares repurchased for retirement, are

immediately cancelled and the Company’s share capital is accordingly reduced. Any excess of the cost of

the shares over their par value is allocated in additional paid-in capital, in accordance with ASC 505-30-

30, Treasury Stock.

z) Financial Instruments, credit losses

: At each reporting date, the Company evaluates its financial

assets individually for credit losses and presents such assets in the net amount expected to be collected

on such financial asset. When financial assets present similar risk characteristics, these are evaluated on

a collective basis. When developing an estimate of expected credit losses, the Company considers

available information relevant to assessing the collectability of cash flows such as internal information, past

events, current conditions and reasonable and supportable forecasts. As of December 31, 2021, the

Company assessed the financial condition of DWM, changed its estimate on the recoverability of its

receivable due from DWM relating to the fine paid by the Company on behalf of DWM (Notes 4(a)) and

determined that part of the amount may not be recoverable. As a result, the Company recorded as of

December 31, 2021, an allowance for credit losses amounting to $

300

, based on probability of default as

there was no previous loss record. The allowance for credit losses was included in other operating

(income)/loss in the 2021 accompanying consolidated statements of income. The allowance was reversed

in 2022 as the full amount was recovered and its reversal is included in other operating (income)/loss” in

the 2022 accompanying consolidated statements of operations.

No

 credit losses were identified and

recorded in 2023 and 2022.

aa) Financial Instruments, Investments-Equity Securities, Recognition and Measurement

: The

Company initially recognizes equity securities at the transaction price. Equity Investments with readily

determinable fair values are subsequently measured at fair value through net income. Unrealized holding

gains and losses for these securities are recorded in earnings. According to ASC 321-10-35-2, the

Company has elected to measure equity securities without a readily determinable fair value, that do not

qualify for the practical expedient in ASC 820

Fair Value Measurement

to estimate fair value using the NAV

per share (or its equivalent), at its cost minus impairment, if any. If the Company identifies observable price

changes in orderly transactions for the identical or a similar investment of the same issuer, it shall measure

equity securities at fair value as of the date that the observable transaction occurred. The Company shall

continue to apply this measurement until the investment does not qualify to be measured in accordance

with this paragraph. At each reporting period, the Company reassesses whether an equity investment

without a readily determinable fair value qualifies to be measured in accordance with this paragraph. The

Company may subsequently elect to measure equity securities at fair value and the election to measure

securities at fair value shall be irrevocable. Any resulting gains or losses on the securities for which that

election is made shall be recorded in earnings at the time of the election. At each reporting period, the

Company also evaluates indicators such as the investee’s performance and its ability to continue as going

concern and market conditions, to determine whether an investment is impaired in which case, the

Company will estimate the fair value of the investment to determine the amount of the impairment loss.

ab) Non-monetary transactions and spinoffs:

Non-monetary transactions are recorded based on the

fair values of the assets (or services) involved unless the fair value of neither the asset received, nor the

asset relinquished is determinable within reasonable limits. Also, under ASC 845-10-30-10 Nonmonetary

Transactions, Overall, Initial Measurement, Nonreciprocal Transfers with Owners and ASC 505-60 Spinoffs

and Reverse Spinoffs, if the pro-rata spinoff of a consolidated subsidiary or equity method investee does

not meet the definition of a business under ASC 805, the nonreciprocal transfer of nonmonetary assets is

accounted for at fair value, if the fair value of the nonmonetary asset distributed is objectively measurable

and would be clearly realizable to the distributing entity in an outright sale at or near the time of the

distribution, and the spinor recognizes a gain or loss for the difference between the fair value and book

value of the spinee. A transaction is considered pro rata if each owner receives an ownership interest in

the transferee in proportion to its existing ownership interest in the transferor (even if the transferor retains

an ownership interest in the transferee). In accordance with ASC 805 Business Combinations: Clarifying

the Definition of a Business, if substantially all of the fair value of the gross assets distributed in a spinoff

are concentrated in a single identifiable asset or group of similar identifiable assets, then the spinoff of a

consolidated subsidiary does not meet the definition of a business. Other nonreciprocal transfers of

nonmonetary assets to owners are accounted for at fair value if the fair value of the nonmonetary asset

distributed is objectively measurable and would be clearly realizable to the distributing entity in an outright

sale at or near the time of the distribution.

ac) Contracts in entity’s equity:

 Under ASC 815-40 contracts that require settlement in shares are

considered equity instruments, unless an event that is not in the entity’s control would require net cash

settlement. Additionally, the entity should have sufficient authorized and unissued shares, the contract

contains an explicit share limit, there is no requirement to net cash settle the contract in the event the entity

fails to make timely filings with the Securities and Exchange Commission (SEC) and there are no cash

settled top-off or make-whole provisions. The Company follows the provision of ASC 480 “Distinguishing

Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine the classification of certain

freestanding financial instruments as permanent equity, temporary equity or liability. The Company, when

assessing the accounting of the warrants and the pre-funded warrants, takes into consideration ASC 480

to determine whether the warrants and the pre-funded warrants should be classified as permanent equity

instead of temporary equity or liability. The Company further analyses the key features of the warrants and

the pre-funded warrants and examines whether these fall under the definition of a derivative according to

ASC 815 applicable guidance or whether certain of these features affect the classification. In cases when

derivative accounting is deemed inappropriate, no bifurcation of these features is performed.

ad) Guarantees:

Guarantees issued by the Company, excluding those that guarantee its own

performance, are recognized at fair value at the time the guarantees are issued, or upon deconsolidation

of a subsidiary. A liability for the fair value of the obligation undertaken in issuing the guarantee is

recognized. If it becomes probable that the Company will have to perform under a guarantee (Note 10(c)),

the Company will recognize an additional liability if the amount of the loss can be reasonably estimated.

The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a

subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the

fair value recognition provision of the liability, financial statement disclosures of such items are made.

XML

Transactions with Related Parties

12 Months Ended

Dec. 31, 2023

Transactions/Investments with Related Parties [Abstract]

Transactions with related parties

3. Transactions with related parties

a) Altair Travel Agency S.A. (“Altair”):

 The Company uses the services of an affiliated travel agent,

Altair, which is controlled by the Company’s Chairman of the Board Mr. Palios and the Company’s CEO

Mrs. Semiramis Paliou. Travel expenses for 2023, 2022 and 2021 amounted to $

2,525

, $

2,644

 and $

2,210

,

respectively, and are mainly included in vessel operating expenses and general and administrative

expenses in the accompanying consolidated financial statements. As of December 31, 2023 and 2022, an

amount of $

62

 and $

136

, respectively, was payable to Altair and is included in “Due to related parties” in

the accompanying consolidated balance sheets. 

b) Steamship Shipbroking Enterprises Inc. or Steamship:

 Steamship is a company controlled by

the Company’s CEO Mrs. Semiramis Paliou and provides brokerage services to DSI for a fixed monthly

fee plus commission on the sale of vessels, pursuant to a Brokerage Services Agreement. For 2023, 2022

and 2021 brokerage fees amounted to $

3,900

, $

3,309

 and $

3,309

, respectively, and are included in general

and administrative expenses in the accompanying consolidated statements of income. For 2023, 2022,

and 2021, commissions to Steamship amounted to $

906

, $

1,219

 and $

712

, respectively and are included

in gain on the sale of vessels, vessel cost and equity method investments. As of December 31, 2023 and

2022, an amount of $

697

 and $

0

, respectively, was due to Steamship.

XML

Equity Method Investments

12 Months Ended

Dec. 31, 2023

Equity Method Investments [Abstract]

Equity Method Investments

4. Equity Method Investments

a) Diana Wilhelmsen Management Limited, or DWM:

 DWM is a joint venture between Diana Ship

Management Inc., a wholly owned subsidiary of DSI, and Wilhelmsen Ship Management Holding AS, an

unaffiliated third party, each holding

50

% of DWM. As of December 31, 2023 and 2022, the investment in

DWM amounted to $

734

 and $

506

 and is included in equity method investments in the accompanying

consolidated balance sheets. In 2023 and 2022, the investment in DWM resulted in a gain of $

228

, and

$

894

, respectively, and in 2021, resulted in a loss of $

333

, included in loss from equity method investments

in the accompanying consolidated statements of income.

From October 8, 2019 until May 24, 2021, DSS outsourced the management of certain vessels to DWM

for which DSS was paying a fixed monthly fee per vessel and a percentage of those vessels’ gross

revenues. On May 24, 2021, the management of the same vessels was transferred to DWM directly,

whereas the vessel owning companies of these vessels entered into new management agreements with

DWM under which they pay a fixed monthly fee and a percentage of their gross revenues. Management

fees to DWM in 2023, 2022 and 2021 amounted to $

1,313

, $

511

 and $

1,432

, respectively, and are

separately presented as management fees to related party in the accompanying consolidated statements

of income. Additionally, in 2023 and 2022, the Company paid to DWM management fees amounting to $

19

and $

272

, respectively, included in advances for vessel acquisitions and vessels, net, relating to the

management of four Ultramax vessels the Company assigned to DWM with new management agreements

and incurred during the predelivery period of the vessels. Commissions for 2023, 2022 and 2021 amounted

to $

390

, $

162

 and $

200

, respectively, and are included in voyage expenses (Note 12). As of December

31, 2023 and 2022, there was an amount of $

25

 and $

216

 due from DWM, included in due from related

parties in the accompanying consolidated balance sheets. 

b) Bergen Ultra LP, or Bergen:

 Bergen is a limited partnership which was established for the purpose

of acquiring, owning, chartering and/or operating a vessel. Bergen was a wholly owned subsidiary of Diana,

which on February 14, 2023, signed a Memorandum of Agreement to acquire for $

27,900

, from an

unrelated third-party an Ultramax dry bulk vessel, delivered on April 10, 2023. On March 30, 2023, Bergen

entered into a loan agreement with Nordea for a $

15,400

 loan to finance part of the purchase price of the

vessel. On the same date, the Company entered into a corporate guarantee with Nordea to secure

Bergen’s obligations under the loan. On April 28, 2023, the Company entered into (i) an investment

agreement with an unrelated third party to acquire

75

% of the limited partnership interests, for $

11,025

; (ii)

an amended limited partnership agreement under which the Company acts as the General Partner of the

partnership through its wholly owned subsidiary Diana General Partner Inc.; (iii) an administrative service

agreement under which DSS provides administrative services to Bergen for an annual fee of $

15

; (iv) a

commission agreement under which the Company is paid a commission of

0.8

% per annum, on the

outstanding balance of the loan, as compensation for the guarantee it provided to Nordea and (v) a

convertible loan agreement for $

27,900

 plus other expenses, with Bergen under which Bergen would have

to repay all expenditures made by the Company for the acquisition of the vessel. Pursuant to the terms of

the convertible loan, on April 28, 2023, the Company received from Bergen $

25,189

 in cash while an

amount of $

3,675

 was converted into partnership interests in Bergen, representing

25

% of the total

partnership interests.

Upon the provisions of the amended partnership agreement, the general partner irrevocably delegated the

authority to Bergen’s board of directors to have the power to oversee and direct the operations,

management and policies of Bergen. The Company evaluated its variable interests in Bergen under ASC

810 and concluded that Bergen is a VIE and that the Company does not individually have the power to

direct the activities of the VIE that most significantly affect the partnership’s performance. From April 28,

2023 the Company no longer retains the power to control the board of directors. As of the same date,

Bergen has been considered as an affiliate entity and not as a controlled subsidiary of the Company. The

Company accounted for the deconsolidation of Bergen in accordance with ASC 610 and the retained

noncontrolling interest of

25

% was accounted for under the equity method due to the Company’s significant

influence over Bergen.

On the date of deconsolidation, the Company measured the fair value of the retained noncontrolling interest

at $

4,519

 through Level 2 inputs of the fair value hierarchy. The Company in order to calculate the fair

value of its

25

% interest in accordance with ASC 610, took into consideration the fair value of the distinct

assets and liabilities of Bergen on the date of the deconsolidation. This resulted in gain on deconsolidation

amounting to $

844

, separately presented in the accompanying 2023 consolidated statement of income,

being the difference between the fair value of the retained noncontrolling interest plus the carrying value

the liabilities assumed by Bergen and the carrying value of the assets derecognized.

For 2023, the investment in Bergen resulted in gain of $

181

 and is included in loss from equity method

investments in the 2023 accompanying consolidated statement of income. As of December 31, 2023, the

investment in Bergen amounted to $

4,700

 and is included in equity method investments in the

accompanying 2023 consolidated balance sheet. Also, for 2023, income from management fees from

Bergen amounted to $

10

, included in time charter revenues and income from the commission paid on the

loan guarantee amounted to $

28

, included in interest and other income in the 2023 accompanying

consolidated statement of income. As of December 31, 2023, there was an amount of $

443

 due from

Bergen included in due from related parties, current and non-current.

c) Windward Offshore GmbH, or Windward:

 On November 7, 2023, the Company through its wholly

owned subsidiary Diana Energize Inc., or Diana Energize, entered into a joint venture agreement, with

two

unrelated companies to form Windward Offshore GmbH & Co. KG or Windward, based in Germany, for the

purpose of establishing and operating an offshore wind vessel company with the aim of becoming a leading

provider of service vessels to the growing offshore wind industry and acquire certain vessels. Diana

Energize agreed to contribute

25,000,000

 Euro, being

45.45

% of the limited partnership’s capital and as of

December 31, 2023, the investment amounted to $

10,063

 mainly consisting of advances to fund the

construction of

two

 vessels and working capital. For 2023, the investment in Windward resulted in a loss

of $

671

 and is included in loss from equity method investments in the 2023 accompanying consolidated

statement of income.

d) Cohen Global Maritime Inc., or Cohen:

 On September 12, 2023, the Company through its wholly

owned subsidiary Cebu Shipping Company Inc., or Cebu, acquired

24

% of Cohen, a company organized

in the Republic of the Philippines for the purpose of engaging in the manning agency business. As of

December 31, 2023, the Company’s investment in Cohen amounted to $

272

, consisting of advances paid

to acquire the license required to engage in the manning agency business.

XML

Investments in Related Parties and Other

12 Months Ended

Dec. 31, 2023

Transactions/Investments with Related Parties [Abstract]

Investments in Related Parties and Other

5. Investments in related parties and other

a) OceanPal Inc., or OceanPal:

 As of December 31, 2023 and 2022, the Company was the holder

of

500,000

 Series B Preferred Shares and

207

 and

10,000

, respectively, of Series C Convertible Preferred

Shares of OceanPal. 

Series B preferred shares entitle the holder to

2,000

 votes on all matters submitted to vote of the

stockholders of the Company, provided however, that the total number of votes shall not exceed

34

% of

the total number of votes, provided further, that the total number of votes entitled to vote, including common

stock or any other voting security, would not exceed

49

% of the total number of votes. Series B Preferred

Shares have no dividend or distribution rights.

Series C preferred shares do not have voting rights unless related to amendments of the Articles of

Incorporation that adversely alter the preference, powers or rights of the Series C Preferred Shares or to

issue Parity Stock or create or issue Senior Stock.

 Series C preferred shares have a liquidation preference

equal to the stated value of $

1,000

 and are convertible into common stock at the Company’s option

commencing upon the first anniversary of the issue date, at a conversion price equal to the lesser of $

6.5

and the 10-trading day trailing VWAP of OceanPal’s common shares, subject to adjustments. Dividends

on each share of Series C Preferred Shares are cumulative and accrue at the rate of

8

% per annum.

Dividends are payable in cash or, at OceanPal’s election, in kind.

On October 17, 2023, the Company converted

9,793

 of the

10,000

 Series C Preferred shares of OceanPal

to

3,649,474

 common shares, having a fair value of $

9,160

 determined through Level 1 inputs of the fair

value hierarchy, based on the closing price of OceanPal’s common shares on the date of conversion. Upon

conversion the Company realized a gain of $

1,742

, being the difference between the book value of the

9,793

 Series C Preferred shares and the fair value of the common shares acquired and is included in gain

on related party investments, separately presented in the accompanying consolidated statements of

income. Following the conversion, the Company is the beneficial owner of

49

% of the outstanding common

stock of OceanPal and since the shares are listed at NASDAQ, the Company elected to account for its

common stock ownership in OceanPal at fair value. 

As of December 31, 2023, the Company’s investment in the common stock of OceanPal amounted to

$

8,138

, being the fair value of OceanPal’s common shares on that date, determined through Level 1 inputs

of the fair value hierarchy, and the Company recorded an unrealized loss on investment of $

1,022

, included

in gain on related party investments, separately presented in the accompanying consolidated statements

of income.

As the Company applied the fair value option to its investment in the common shares of OceanPal that

would otherwise be accounted for under the equity method of accounting, it also applied fair value to all of

its financial interests in OceanPal, being the

Series B preferred shares and Series C preferred shares which

until then, the Company applied the guidance for equity securities without readily determinable fair values.

As of December 31, 2023 and 2022, the Company’s investment in Series B preferred shares and Series C

preferred shares, amounted to $

180

 and $

7,744

, respectively, including $

3

 and $

169

, respectively,

dividends receivable on the Series C preferred shares, and are separately presented in investments in

related parties in the accompanying consolidated balance sheets. As of December 31, 2023, the Company

recorded a gain of $

21

, presented in gain on related party Investments, being the difference between the

book value of the investments and the fair value determined through Level 3 inputs of the fair value

hierarchy, by using the income approach, taking into account the present value of the future cash flows,

the holder of shares would expect to receive from holding the equity instrument.

On September 20, 2022, the Company acquired

25,000

 OceanPal Cumulative Convertible Series D

Preferred Shares, par value $

0.01

 per share, as part of the consideration provided to the Company for the

sale of Baltimore to OceanPal, pursuant to a Memorandum of Agreement dated June 13, 2022 (Note 6).

Similarly, on February 8, 2023, the Company acquired

13,157

 shares of OceanPal Series D Cumulative

Convertible Preferred Shares, as part of the consideration provided to the Company for sale of Melia to

OceanPal, pursuant to a Memorandum of Agreement dated February 1, 2023 (Note 6).

Series D preferred shares were convertible into common stock at the holder’s option, at a conversion price

equal to the 10-trading day trailing VWAP of OceanPal’s common shares, provided however that the holder

would not beneficially own greater than

49

% of OceanPal’s outstanding shares of common stock. Series

D preferred shares have no voting rights; dividends were cumulative, accruing at the rate of

7

% per annum,

payable in cash or, at OceanPal’s election, in PIK shares (Series D Preferred shares issued to the holder

in lieu of cash dividends); and they had a liquidation preference equal $

1,000

 per share. 

On the date of issuance, the Company measured its investments on Series D preferred shares at their fair

value and elected to subsequently measure such investments in accordance with paragraph ASC 321-10-

35-2 (Note 2(aa)). The fair value of Series D Preferred Shares was determined by taking into consideration

a third-party valuation which was based on the income approach, taking into account the present value of

the future cash flows the Company expects to receive from holding the equity instrument. 

On December 15, 2022, the Company distributed the

25,000

 Series D Preferred Shares as non-cash

dividend to its shareholders of record on November 28, 2022. The shareholders had the option to receive

Series D Preferred Shares or common shares of OceanPal at the conversion rate determined before

distribution according to the terms of the designation statement. The Company accounted for the

transaction as a nonreciprocal transfer with its owners in accordance with ASC 845 and measured their

fair value on the date of declaration at $

18,189

. The fair value of the Series D Preferred Shares was

determined by using the income approach, taking into account the present value of the future cash flows,

the holder of shares would expect to receive from holding the equity instrument. This resulted in gain of

$

589

, being the difference between the fair value and the carrying value of the investment and is separately

presented as Gain on related party investments in the accompanying consolidated statements of income.

On June 9, 2023, the Company distributed the

13,157

 Series D Preferred Shares as a non-cash dividend

to its shareholders of record on April 24, 2023. The Company accounted for the transaction as a

nonreciprocal transfer with its owners in accordance with ASC 845 and measured the fair value of the

preferred shares on the date of declaration at $

10,761

. The fair value of the Series D Preferred Shares

was determined by using the income approach, taking into account the present value of the future cash

flows, the holder of shares would expect to receive from holding the equity instrument. This resulted in gain

of $

761

, being the difference between the fair value and the carrying value of the investment and is

separately presented as gain on related party investment in the 2023 accompanying consolidated

statement of income.

For 2023, 2022 and 2021, dividend income from the Series C and Series D OceanPal preferred shares

amounted to $

801

, $

917

 and $

69

, respectively, included in interest and other income in the accompanying

consolidated statements of income.

b) Investment in equity securities:

 During 2023, the Company acquired equity securities of an entity

listed in the NYSE which as of December 31, 2023 had a fair value of $

20,729

. The equity securities were

initially recorded at cost amounting to $

17,916

 and measured subsequently at fair value, since their fair

values were readily determinable, determined through Level 1 of the fair value hierarchy. The securities

are considered marketable securities that are available to be converted into cash to fund current operations

and classified in current assets in the accompanying 2023 consolidated balance sheet. Unrealized gain on

the investment amounted to $

2,813

 and is separately presented in unrealized gain on equity securities in

the accompanying consolidated statements of income.

XML

Advances for Vessel Acquisitions and Vessels, net

12 Months Ended

Dec. 31, 2023

Advances for Vessel Acquisitions and Vessels, net [Abstract]

Advances for Vessel Acquisitions and Vessels, net

6. Advances for vessel acquisitions and Vessels, net

Vessel Acquisitions

On July 15, 2021 the Company agreed to acquire from an unaffiliated third party, the 2011 built Kamsarmax

dry bulk vessel

Leonidas P.C.

, for a purchase price of $

22,000

, delivered on February 16, 2022. The

Company incurred $

927

 of additional predelivery expenses.

On December 3, 2021, the Company agreed to acquire from an unaffiliated third party, the Capesize dry

bulk vessel

Florida,

 for a purchase price of $

59,275

, delivered on March 29, 2022. The Company incurred

$

1,504

 of additional predelivery expenses.

On August 10, 2022, the Company entered into a master agreement with Sea Trade Holdings Inc. (or “Sea

Trade”), an unaffiliated third party, to acquire nine Ultramax vessels for an aggregate purchase price of

$

330,000

, of which $

220,000

 would be paid in cash and $

110,000

 through an aggregate of

18,487,393

newly issued common shares of the Company, issuable on the delivery of each vessel. In the fourth quarter

of 2022, the Company took delivery of

eight

 vessels for $

195,810

 in cash and

16,453,780

 newly issued

common shares having a fair value of $

67,909

 (Notes 11 and 16). The Company also incurred $

4,364

 of

additional predelivery expenses. 

On January 30, 2023, the Company took delivery of the ninth vessel for $

23,955

 in cash and

2,033,613

newly issued common shares, having a fair value of $

7,809

. Part of the purchase price of the vessel and

additional predelivery expenses were already paid in 2022 and presented as of December 31, 2022 in

advances for vessel acquisitions in the accompanying consolidated balance sheet. The Company incurred

$

555

 of additional predelivery expenses.

The value of the shares issued in 2022 and in 2023, was determined through Level 1 inputs of the fair value

hierarchy based on the closing price of the Company’s common stock on the date of issuance which was

the date of delivery of each vessel. 

On February 14, 2023, the Company signed a Memorandum of Agreement to acquire from an unaffiliated

third-party an Ultramax dry bulk vessel for a purchase price of $

27,900

. On April 28, 2023, the vessel’s

ship owning company was deconsolidated from the Company’s financial statements due to the Company’s

loss of control described in note 4(b) and the net book value of the vessel amounting to $

27,908

 is included

in both vessel acquisitions and vessel disposals. 

Vessel Disposals

On June 13, 2022, the Company sold to OceanPal, the vessel

Baltimore

, for a sale price of $

22,000

 of

which $

4,400

 in cash and $

17,600

 in

25,000

 newly issued OceanPal Series D Preferred Shares (Note

5(a)). On the date of the agreement, the vessel was classified as held for sale according to the provisions

of ASC 360, as all criteria required for this classification were met, at carrying value of $

16,722

 and

unamortized deferred costs of $

41

, measured at the lower of carrying value and fair value (sale price) less

costs to sell. The vessel was delivered to OceanPal on September 20, 2022 and the sale resulted in gain

amounting to $

2,850

, included in gain on sale of vessels in the accompanying consolidated statements of

income.

On January 23, 2023, the Company sold to an unrelated third party the vessel

Aliki

 for a sale price of

$

15,080

 and on February 1, 2023, the Company, sold to OceanPal the vessel

Melia

 for a sale price of

$

14,000

, of which $

4,000

 in cash and $

10,000

 in

13,157

 newly issued OceanPal Series D Preferred Shares

(Note 5(a)). On the date of the agreements, the vessels, having an aggregate carrying value of $

23,198

and unamortized deferred costs of $

405

 were classified as held for sale, measured at carrying value which

was the lower of their carrying value and fair value (sale price) less costs to sell. Both vessels were

delivered to their new owners on February 8, 2023. The sale of the vessels resulted in gain amounting to

$

4,995

, included in gain on sale of vessels in the accompanying consolidated statements of income.

On October 5, 2023, the Company sold to an unrelated third party the vessel Boston for a sale price of

$

17,998

. The vessel was delivered to the buyer on December 6, 2023 and the sale of the vessel resulted

in gain of $

328

, included in gain on sale of vessels in the accompanying consolidated statements of income.

The amounts reflected in Vessels, net in the accompanying consolidated balance sheets are analyzed as

follows:

Vessel Cost

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2021

$

810,429

$

(166,979)

$

643,450

- Additions for vessel acquisitions and improvements

358,504

-

358,504

- Additions for improvements reclassified from other non-

current assets

1,370

-

1,370

- Vessel disposals

(29,175)

12,453

(16,722)

- Depreciation for the year

-

(36,986)

(36,986)

Balance, December 31, 2022

$

1,141,128

$

(191,512)

$

949,616

- Additions for vessel acquisitions and improvements

61,682

-

61,682

- Vessel disposals

(60,655)

21,688

(38,967)

- Vessel disposal due to deconsolidation of subsidiary (Note

4(b))

(27,908)

-

(27,908)

- Depreciation for the year

-

(44,231)

(44,231)

Balance, December 31, 2023

$

1,114,247

$

(214,055)

$

900,192

Additions for vessel improvements mainly relate to the implementation of ballast water treatment and other

works necessary for the vessels to comply with new regulations and be able to navigate to additional ports.

As of December 31, 2022, an amount of $

1,370

 was reclassified to Vessels, net from other non-current

assets and related to ballast water treatment equipment paid in a previous period but delivered on the

vessels during the year ended December 31, 2022.

XML

Property and Equipment, net

12 Months Ended

Dec. 31, 2023

Property and Equipment, net [Abstract]

Property and Equipment, net

7. Property and Equipment, net

The Company owns the land and building of its principal corporate offices in Athens, Greece and a plot of

a land of which on July 6, 2023, DSS purchased 1/3 from Alpha Sigma Shipping Corp, a related party

company, for the purchase price of $

1,208

 and became its sole owner. Other assets consist of office

furniture and equipment, computer software and hardware and vehicles. The amount reflected in “Property

and equipment, net” is analyzed as follows:

Property and

Equipment

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2021

$

28,269

$

(5,427)

$

22,842

- Additions in property and equipment

667

-

667

- Depreciation for the year

-

(546)

(546)

Balance, December 31, 2022

$

28,936

$

(5,973)

$

22,963

- Additions in property and equipment

2,006

-

2,006

- Depreciation for the year

-

(687)

(687)

Balance, December 31, 2023

$

30,942

$

(6,660)

$

24,282

XML

Long-term Debt

12 Months Ended

Dec. 31, 2023

Long-term Debt [Abstract]

Long-term Debt

8. Long-term debt

The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as

follows:

2023

2022

Senior unsecured bond

119,100

125,000

Secured long-term debt

397,857

405,120

Total long-term debt

$

516,957

$

530,120

Less: Deferred financing costs 

(6,314)

(7,609)

Long-term debt, net of deferred financing costs

$

510,643

$

522,511

Less: Current long-term debt, net of deferred financing costs,

current

(49,512)

(91,495)

Long-term debt, excluding current maturities

$

461,131

$

431,016

Senior Unsecured Bond

: 

On

June 22, 2021

, the Company issued a $

125,000

 senior unsecured bond maturing in June 2026. The

bond ranks ahead of subordinated capital and ranks the same with all other senior unsecured obligations

of the Company other than obligations which are mandatorily preferred by law. Entities affiliated with

executive officers and directors of the Company purchased an aggregate of $

21,000

 principal amount of

the bond. The bond bears interest at a US Dollar fixed-rate coupon of

8.375

% and is payable semi-annually

in arrears in June and December of each year. The bond is callable in whole or in part in June 2024 at a

price equal to

103.35

% of nominal value; between June 2025 to December 2025 at a price equal to

101.675

% of nominal value and after December 2025 at a price equal to

100

% of nominal value. On June

29, 2023, the Company repurchased $

5,900

 nominal value of the bond for $

5,851

. In this respect, the

Company recognized an amount of $

159

 as loss on debt extinguishment, representing the difference

between the reacquisition price of $

5,851

 and the net carrying amount of the debt being extinguished of

$

5,900

 less deferred financing fees of $

208

. The bond includes financial and other covenants and is trading

at Oslo Stock Exchange under the ticker symbol “DIASH02”. 

Secured Term Loans:

Under the secured term loans outstanding as of December 31, 2023,

33

 vessels of the Company’s fleet

are mortgaged with first preferred or priority ship mortgages, having an aggregate carrying value of

$

699,014

. Additional securities required by the banks include first priority assignment of all earnings,

insurances, first assignment of time charter contracts that exceed a certain period, pledge over the shares

of the borrowers, manager’s undertaking and subordination and requisition compensation and either a

corporate guarantee by DSI (the “Guarantor”) or a guarantee by the ship owning companies (where

applicable), financial covenants, as well as operating account assignments. The lenders may also require

additional security in the future in the event the borrowers breach certain covenants under the loan

agreements. The secured term loans generally include restrictions as to changes in management and

ownership of the vessels, additional indebtedness, as well as minimum requirements regarding hull cover

ratio and minimum liquidity per vessel owned by the borrowers, or the Guarantor, maintained in the bank

accounts of the borrowers, or the Guarantor. 

As of December 31, 2023 and 2022, minimum cash deposits required to be maintained at all times under

the Company’s loan facilities, amounted to $

20,000

 and $

21,000

, respectively and are included in restricted

cash, non-current in the accompanying consolidated balance sheets. Furthermore, the secured term loans

contain cross default provisions and additionally the Company is not permitted to pay any dividends

following the occurrence of an event of default. In 2023 and 2022 , the weighted average interest rate of

the secured term loans was

7.3

% and

3.8

%, respectively.

As of December 31, 2023 and 2022, the Company had the following agreements with banks, either as a

borrower or as a guarantor, to guarantee the loans of its subsidiaries:

BNP Paribas (“BNP”):

 On December 19, 2014, the Company drew down $

53,500

 under a secured loan

agreement, to finance part of the acquisition cost of the

G. P. Zafirakis

 and the

P. S. Palios

maturing on

November 30, 2021

. The agreement was refinanced on June 29, 2020, to extend the maturity to

May 19,

2024

. The loan was repayable in equal semi-annual instalments of approximately $

1,574

 and a balloon of

$

23,596

 payable together with the last instalment. The refinanced loan bore interest at LIBOR plus a margin

of

2.5

%. 

On July 16, 2018, the Company drew down $

75,000

 under a secured loan agreement with BNP. The loan

was repayable in consecutive quarterly instalments of $

1,562.5

 and a balloon instalment of $

43,750

payable together with the last instalment on

July 17, 2023

. The loan bore interest at LIBOR plus a margin

of

2.3

%. 

In April 2023, both loans were refinanced through a new loan facility with Danish Ship Finance and the

outstanding balance of both loans, amounting to $

75,193

 was prepaid in full and the Company recorded a

loss on debt extinguishment amounting to $

107

.

Nordea Bank AB, London Branch (“Nordea”):

 On March 19, 2015, the Company drew down $

93,080

under a secured loan agreement, maturing on

March 19, 2021

. The loan agreement was amended on May

7, 2020, and supplemented on July 29, 2021, with an additional borrowing of $

460

. In July 2022 and in

February 2023, the Company prepaid an amount of $

4,786

 and $

8,134

, respectively, following the sale of

vessels. On June 20, 2023, the Company entered into a new loan agreement with Nordea to refinance the

outstanding balance of the existing loan amounting to $

20,934

. On June 27, 2023, the Company drew

down $

22,500

 and prepaid in full the outstanding balance of $

20,934

 and recorded a loss on debt

extinguishment amounting to $

220

. The new loan is repayable in

twenty

 equal

quarterly

 instalments of

$

1,125

 and bears interest at term SOFR plus a margin of

2.25

%. The loan matures on

June 27, 2028

.

On September 30, 2022, the Company entered into a $

200

 million loan agreement to finance the acquisition

price of 9 Ultramax vessels. The Company drew down $

197,236

 under the loan, in tranches for each vessel

on their delivery to the Company but prepaid $

21,937

 in December 2022 due to a vessel sale and leaseback

transaction. The loan is repayable in equal

quarterly

 instalments of an aggregate amount of $

3,719

, and a

balloon of $

100,912

 payable together with the last instalment on

October 11, 2027

. The loan bears interest

at term SOFR plus a margin of

2.25

%. Loan fees amounted to $

2,069

 presented as contra to debt and

commitment fees amounted to $

191

, included in interest expense and finance costs in the accompanying

2022 consolidated statement of income. 

ABN AMRO Bank N.V., or ABN:

 On May 22, 2020, the Company signed a term loan facility with ABN, in

the amount of $

52,885

 to combine two loans outstanding with ABN. Tranche A was repayable in

consecutive

quarterly

 instalments of $

800

 each and a balloon instalment of $

9,000

 payable together with

the last instalment on

June 28, 2024

. The tranche bore interest at LIBOR plus a margin of

2.25

%. Tranche

B was repayable in equal consecutive

quarterly

 instalments of about $

994

 each and a balloon of $

13,391

payable together with the last instalment on

June 28, 2024

, and bore interest at LIBOR plus a margin of

2.4

%. 

On May 20, 2021, the Company, drew down $

91,000

 under a secured sustainability linked loan facility with

ABN AMRO Bank N.V, dated May 14, 2021, which was used to refinance existing loans. In August 2022,

the Company prepaid $

30,791

 due to vessel sale and leaseback transactions and since then, the loan was

repayable in

quarterly

 instalments of $

1,980

 and a balloon of $

13,553

 payable together with the last

instalment, on

May 20, 2026

. The loan bore interest at LIBOR plus a margin of

2.15

% per annum, which

could be adjusted annually by maximum

10

 basis points upwards or downwards, subject to the

performance under certain sustainability KPIs.

On June 26, 2023, the Company prepaid in full both loans amounting to $

68,677

, which were refinanced

under a new loan agreement with DNB Bank ASA and the Company recorded a loss on debt

extinguishment amounting to $

237

.

Export-Import Bank of China:

 On January 4, 2017, the Company drew down $

57,240

 under a secured

loan agreement, which is repayable in equal

quarterly

 instalments of $

954

, each, until its maturity on

January 4, 2032

 and bears interest at term SOFR plus a margin of

2.45

%.

DNB Bank ASA or DNB:

 On March 14, 2019, the Company drew down $

19,000

 under a secured loan

agreement, which is repayable in consecutive

quarterly

 instalments of $

477.3

 and a balloon of $

9,454

payable together with the last instalment on

March 14, 2024

. The loan bore interest at LIBOR plus a margin

of

2.4

%. On March 14, 2023, the outstanding balance of the loan amounting to $

11,841

 was prepaid in full

and the Company recorded a loss on debt extinguishment amounting to $

25

.

On June 26, 2023, the Company entered into a $

100,000

 loan agreement which was drawn on June 27,

2023, to refinance the outstanding balance of the ABN loans mentioned above and for working capital

purposes. The loan is repayable in

26

 equal

quarterly

 instalments of $

3,846

 until

December 27, 2029

, and

bears term SOFR plus a margin of

2.2

%, subject to sustainability margin adjustment. Additionally, the loan

is subject to a margin reset, according to which the borrowers and the lenders will enter into discussions

to agree on a new margin. Unless the parties agree on a new margin, the loan will be mandatorily repayable

on June 27, 2027. As part of the loan agreement, on July 6, 2023, the Company entered into an interest

rate swap with DNB for a notional amount of $

30,000

, being

30

% of the loan amount and quarterly

amortization of $

1,154

. Under the interest rate swap, the Company pays a fixed rate of

4.268

% and

receives floating under term SOFR, has a trade date on June 27, 2023, and termination date on December

27, 2029, and also has a mandatory break on June 27, 2027, the margin reset date of the loan, according

to which the swap will be terminated if the loan is prepaid. As of December 31, 2023, the fair value of the

interest rate swap amounted to $

439

 and is separately presented in current assets and non-current

liabilities, amounting to $

129

 and $

568

 respectively, in the 2023 accompanying consolidated balance

sheet. Loss from the interest rate swap amounted to $

439

 and is separately presented as loss on derivative

instruments in the 2023 consolidated statement of income.

Danish Ship Finance A/S or Danish:

 On April 12, 2023, the Company signed a term loan facility with

Danish, for $

100,000

 to refinance the outstanding balance of the Company’s loans with DNB Bank ASA

and BNP, mentioned above and working capital. On April 18 and 19, 2023, the Company drew down

$

100,000

 which is repayable in

twenty

 equal consecutive

quarterly

 instalments of $

3,301

 each and a

balloon of $

33,972

 payable together with the last instalment on April 19, 2028, and bears interest at term

SOFR plus a margin of

2.2

%. 

As of December 31, 2023 and 2022, the Company was in compliance with all of its loan covenants.

As of December 31, 2023, the maturities of the Company’s bond and debt facilities throughout their term,

are shown in the table below and do not include the related debt issuance costs.

Period

Principal Repayment

Year 1

$

51,783

Year 2

51,783

Year 3

170,883

Year 4

152,696

Year 5

62,026

Year 6 and thereafter

27,786

Total

$

516,957

XML

Finance Liabilities

12 Months Ended

Dec. 31, 2023

Finance Liabilities [Abstract]

Finance Liabilities

9. Finance Liabilities

The amount of finance liabilities shown in the accompanying consolidated balance sheet is analyzed as

follows:

December 31, 2023

December 31, 2022

Finance liabilities

133,337

142,370

Less: Deferred financing costs 

(1,208)

(1,439)

Finance liabilities, net of deferred financing costs

$

132,129

$

140,931

Less: Current finance liabilities, net of deferred financing costs,

current

(9,221)

(8,802)

Finance liabilities, excluding current maturities

$

122,908

$

132,129

On March 29, 2022, the Company sold

Florida

 to an unrelated third party for $

50,000

 (Note 6) and leased

back the vessel under a bareboat agreement, for a period of

ten years

, under which the Company pays

hire, monthly in advance. Under the bareboat charter, the Company has the option to repurchase the vessel

after the end of the third year of the charter period, or each year thereafter, until the termination of the

lease, at specific prices, subject to irrevocable and written notice to the owner. If not repurchased earlier,

the Company has the obligation to repurchase the vessel for $

16,350

, on the expiration of the lease on the

tenth year. 

On August 17, 2022, the Company entered into

two

 sale and leaseback agreements with two unaffiliated

Japanese third parties for

New Orleans

 and

Santa Barbara,

for an aggregate amount of $

66,400

. The

vessels were delivered to their buyers on September 8, 2022 and September 12, 2022, respectively and

the Company chartered in both vessels under bareboat charter parties for a period of

eight years

, each,

and has purchase options beginning at the end of the third year of each vessel's bareboat charter period,

or each year thereafter, until the termination of the lease, at specific prices, subject to irrevocable and

written notice to the owner. If not repurchased earlier, the Company has the obligation to repurchase the

vessels for $

13,000

, each, on the expiration of each lease on the eighth year.

On December 6, 2022, the Company sold

DSI Andromeda

 to an unrelated third party for $

29,850

 (Note 6)

and leased back the vessel under a bareboat agreement, for a period of

ten years

, under which the

Company pays hire, monthly in advance. Under the bareboat charter, the Company has the option to

repurchase the vessel after the end of the third year of the charter period, or each year thereafter, until the

termination of the lease, at specific prices, subject to irrevocable and written notice to the owner. If not

repurchased earlier, the Company has the obligation to repurchase the vessel for $

8,050

, on the expiration

of the lease on the tenth year.

Under the bareboat charter parties, the Company is responsible for the operation and maintenance of the

vessels and the owner of the vessels shall not retain any control, possession, or command of the vessel

during the charter period.

The Company determined that, under ACS 842-40 Sale and Leaseback Transactions, the transactions are

failed sales and consequently the assets were not derecognized from the financial statements and the

proceeds from the sale of the vessels were accounted for as financial liabilities. As of December 31, 2023,

the weighted average remaining lease term of the above lease agreements was

7.70

 years, the average

interest rate was

4.83

% and the sublease income during 2023 was $

34,560

, included in time charter

revenues.

As of December 31, 2023, and throughout the term of the leases, the Company has annual finance liabilities

as shown in the table below:

Period

Principal Repayment

Year 1

$

9,437

Year 2

9,808

Year 3

10,224

Year 4

10,661

Year 5

11,151

Year 6 and thereafter

82,056

Total

$

133,337

XML

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

a)

 Various claims, suits, and complaints, including those involving government regulations and product

liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes

with charterers, agents, insurance and other claims with suppliers relating to the operations of the

Company’s vessels. The Company accrues for the cost of environmental and other liabilities when

management becomes aware that a liability is probable and is able to reasonably estimate the probable

exposure. The Company’s vessels are covered for pollution in the amount of $

1

 billion per vessel per

incident, by the P&I Association in which the Company’s vessels are entered. In 2022, the Company

recorded a gain of $

1,789

 from insurance recoveries received from its insurers for claims covered under

its insurance policies, which is separately presented as insurance recoveries in the accompanying 2022

consolidated statement of operations.

b)

 Pursuant to the sale and lease back agreements signed between the Company and its counterparties,

the Company has purchase obligations to repurchase the vessels

Florida, Santa Barbara, New Orleans

and

 DSI Andromeda

upon expiration of their lease contracts, as described in Note 9.

c)

 On March 30, 2023, the Company entered into a corporate guarantee with Nordea under which the

Company guarantees the performance by Bergen of all of its obligations under the loan until the maturity

of the loan on March 30, 2028 (Note 4 (b)). The Company considers the likelihood of having to make

any payments under the guarantee to be remote, as the loan is also secured by an account pledge by

Bergen, first preferred mortgage on the vessel, a first priority general assignment of the earnings,

insurances and requisition compensation of the vessel, a charter party assignment, a partnership

interests security deed, and a manager’s undertaking. Accordingly, as of December 31, 2023, the

Company did not record a provision for losses under the guarantee of Bergen’s loan amounting to

$

14,778

 on that date.

d)

 As of December 31, 2023, the Company’s vessels, owned and chartered-in, were fixed under time

charter agreements, considered operating leases. The minimum contractual gross charter revenue

expected to be generated from fixed and non-cancelable time charter contracts existing as of December

31, 2023 and until their expiration was as follows:

Period

Amount

Year 1

$

127,297

Year 2

24,629

Year 3

9,454

Year 4

725

 Total

$

162,105

XML

Capital Stock and Changes in Capital Accounts

12 Months Ended

Dec. 31, 2023

Capital Stock and Changes in Capital Accounts [Abstract]

Capital Stock and Changes in Capital Accounts

11. Capital Stock and Changes in Capital Accounts

a) Preferred stock

:

 As of December 31, 2023, and 2022, the Company’s authorized preferred stock

consists of

50,000,000

 shares and

25,000,000

 shares, respectively (all in registered form), par value $

0.01

per share, of which

1,000,000

 shares are designated as Series A Participating Preferred Shares,

5,000,000

shares are designated as Series B Preferred Shares,

10,675

 shares are designated as Series C Preferred

Shares and

400

 shares are designated as Series D Preferred Shares. As of December 31, 2023 and 2022,

the Company had

zero

 Series A Participating Preferred Shares issued and outstanding.

b) Series B Preferred Stock:

 As of December 31, 2023, and 2022, the Company had

2,600,000

Series B Preferred Shares issued and outstanding with par value $

0.01

 per share, at $

25.00

 per share and

with liquidation preference at $

25.00

 per share.

Holders of Series B Preferred Shares have no voting rights

other than the ability, subject to certain exceptions, to elect one director if dividends for six quarterly

dividend periods (whether or not consecutive) are in arrears and certain other limited protective voting

rights.

 Also, holders of Series B Preferred Shares rank prior to the holders of common shares with respect

to dividends, distributions and payments upon liquidation and are subordinated to all of the existing and

future indebtedness.

Dividends on the Series B Preferred Shares are cumulative from the date of original issue and are payable

on the 15th day of January, April, July and October of each year at the dividend rate of

8.875

% per annum,

or $

2.21875

 per share per annum. In 2023, 2022 and 2021, dividends on Series B Preferred Shares

amounted to $

5,769

, $

5,769

 and $

5,769

, respectively. Since February 14, 2019, the Company may

redeem, in whole or in part, the Series B Preferred Shares at a redemption price of $

25.00

 per share plus

an amount equal to all accumulated and unpaid dividends thereon to the date of redemption, whether or

not declared. 

c) Series C Preferred Stock

: As of December 31, 2023, and 2022, the Company had

10,675

 shares

of Series C Preferred Stock, issued and outstanding, with par value $

0.01

 per share, owned by an affiliate

of its Chief Executive Officer, Mrs. Semiramis Paliou.

The Series C Preferred Stock votes with the common

shares of the Company, and each share entitles the holder thereof to 1,000 votes on all matters submitted

to a vote of the shareholders of the Company.

 The Series C Preferred Stock has no dividend or liquidation

rights and cannot be transferred without the consent of the Company except to the holder’s affiliates and

immediate family members.

d) Series D Preferred Stock

: As of December 31, 2023, and 2022, the Company had

400

 shares of

Series D Preferred Stock, issued and outstanding, with par value $

0.01

 per share, owned by an affiliate of

its Chief Executive Officer, Mrs. Semiramis Paliou. The Series D Preferred Stock is not redeemable and

has

no

 dividend or liquidation rights.

The Series D Preferred Stock vote with the common shares of the

Company, and each share of the Series D Preferred Stock entitles the holder thereof to up to 200,000

votes,

 on all matters submitted to a vote of the stockholders of the Company, provided however, that,

notwithstanding any other provision of the Series D Preferred Stock statement of designation, to the extent

that the total number of votes one or more holders of Series D Preferred Stock is entitled to vote (including

any voting power of such holders derived from Series D Preferred Stock, shares of Common Stock or any

other voting security of the Company issued and outstanding as of the date hereof or that may be issued

in the future) on any matter submitted to a vote of stockholders of the Company would exceed

36.0

% of

the total number of votes eligible to be cast on such matter, the total number of votes that holders of Series

D Preferred Stock may exercise derived from the Series D Preferred Stock together with Common Shares

and any other voting securities of the Company beneficially owned by such holder, shall be reduced to

36

% of the total number of votes that may be cast on such matter submitted to a vote of stockholders.

e) Issuance and Repurchase of Common Shares:

In February 2021, the Company repurchased in

a tender offer

6,000,000

 shares at the price of $

2.50

 per share. In

August 2021, the Company repurchased,

in another tender offer,

3,333,333

 shares, at a price of $

4.50

 per share and in December 2021, repurchased

3,529,411

 shares at a price of $

4.25

 per share. The aggregate cost of the share repurchases was $

45,369

,

including expenses. In 2022, the Company issued under its ATM program

877,581

 shares of common

stock, at an average price of $

6.27

 per share and received net proceeds of $

5,322

. During 2022, the

Company repurchased under its share repurchase program

820,000

 shares of common stock, at an

average price of $

4.56

 per share, for an aggregate cost of $

3,799

, including expenses. In addition, in the

fourth quarter of 2022, the Company issued

16,453,780

 common shares to Sea Trade (Note 6), upon

exercise by Sea Trade of the eight out of nine warrants mentioned in (i) below, for the acquisition of eight

vessels, at an average price of $

4.13

. On January 30, 2023, the Company issued

2,033,613

 common

shares, at $

3.84

, to Sea Trade upon exercise by Sea Trade of a warrant it held for the acquisition of a

vessel (Note 6). The Company did

no

t receive any proceeds from the exercise of the warrants by Sea

Trade and the exercise price of the shares issued was included in the price of the vessels acquired.

f) Dividend on Common Stock:

On March 21, 2022, the Company paid a dividend on its common

stock of $

0.20

 per share, to its shareholders of record as of March 9, 2022. On June 17, 2022, the Company

paid a dividend on its common stock of $

0.25

 per share, to its shareholders of record as of June 6, 2022.

On August 19, 2022, the Company paid a dividend on its common stock of $

0.275

 per share, to its

shareholders of record as of August 8, 2022. On December 15, 2022, the Company paid a dividend on its

common stock of $

0.175

 per share, to its shareholders of record as of November 28, 2022. During 2022,

the Company paid total cash dividends on common stock amounting to $

79,812

.

On March 20, 2023, the Company paid a dividend of $

0.15

 per share, or $

15,965

, to its shareholders of

record as of March 13, 2023. On July 10, 2023, the Company distributed a dividend of $

0.15

 per share to

all shareholders of record as of June 12, 2023, and paid $

12,424

 in cash to its shareholders who elected

to receive cash and distributed

965,044

 newly issued common shares to its shareholders who elected to

receive shares. On September 8, 2023, the Company distributed a dividend of $

0.15

 per share to all

shareholders of record as of August 14, 2023, and paid $

13,041

 in cash to its shareholders who elected to

receive cash and distributed

831,672

 newly issued common shares to its shareholders who elected to

receive shares. On December 4, 2023, the Company distributed a dividend of $

0.15

 per share to all

shareholders of record as of November 27, 2023 in the form of common stock and distributed

4,831,777

newly issued common shares.

g) Dividend in Kind:

On November 29, 2021, the Company distributed to its shareholders of record

on November 3, 2021, the common stock of OceanPal, acquired in a spin-off, amounting to $

40,509

. On

December 15, 2022, the Company distributed the Company’s investment in the Series D Preferred Shares

of OceanPal in the form of a stock dividend amounting to $

18,189

, or $

0.18

 per share, to its shareholders

of record as of November 28, 2022. On June 9, 2023, the Company distributed the Company’s investment

in the Series D Preferred Shares of OceanPal in the form of a stock dividend amounting to $

10,761

, or

$

0.10

 per share, to its shareholders of record as of April 24, 2023 (Notes 5(a)). 

On December 14, 2023, the Company distributed

22,613,070

 warrants to its shareholders of record on

December 6, 2023. Holders received one warrant for every five shares of issued and outstanding shares

of common stock held as of the record date (rounded down to the nearest whole number for any fractional

warrant. Each Warrant entitle the Holder to purchase, at the Holder’s sole and exclusive election, at the

exercise price of $

4

 per warrant,

one

 share of common stock plus a bonus share fraction. A bonus share

fraction entitles a Holder to receive an additional

half

 of a share of common stock for each warrant exercised

without payment of any additional exercise price. If all warrants were exercised as of December 31, 2023,

the Company would have issued

33,919,605

 common shares with a fair value of $

100,741

 and would have

received $

90,452

 of proceeds. The warrants were measured on the date of distribution at fair value,

determined through level 1 account hierarchy, being the opening price of the warrants on the NYSE on the

date of distribution as they are listed under the ticker DSX_W. The value of the warrants was measured at

$

7,914

, or $

0.35

 per warrant and was recorded as liability under the terms of ASC 480. As of December

31, 2023, the warrant liability was remeasured at fair value and recorded at $

6,332

, resulting in a gain of

$

1,583

 separately presented in the 2023 consolidated statement of income as unrealized gain on warrants.

As of December 31, 2023,

no

 warrants had been exercised.

h) Incentive Plan:

As of December 31, 2023,

13,444,759

 shares remained reserved for issuance

according to the Company’s incentive plan.

Restricted stock in 2023, 2022 and 2021 is analyzed as follows:

Number of Shares

Weighted Average

Grant Date Price

Outstanding as of December 31, 2020

2,423,012

$

2.95

Granted

8,260,000

2.85

Vested

(1,168,363)

3.20

Outstanding as of December 31, 2021

9,514,649

$

2.83

Granted

1,470,000

4.15

Vested

(3,118,060)

2.86

Outstanding as of December 31, 2022

7,866,589

$

3.07

Granted

1,750,000

4.54

Vested

(2,822,753)

3.05

Outstanding as of December 31, 2023

6,793,836

$

3.45

The fair value of the restricted shares has been determined with reference to the closing price of the

Company’s stock on the date such awards were approved by the Company’s board of directors. The

aggregate compensation cost is recognized ratably in the consolidated statement of income over the

respective vesting periods. In 2023, 2022 and 2021, compensation cost amounted to $

9,938

, $

9,282

 and

$

7,442

, respectively, and is included in general and administrative expenses in the accompanying

consolidated statements of income.

As of December 31, 2023 and 2022, the total unrecognized cost relating to restricted share awards was

$

14,880

 and $

16,873

, respectively. As of December 31, 2023, the weighted-average period over which the

total compensation cost related to non-vested awards not yet recognized is expected to be recognized is

1.95

 years.

i) Warrants:

On August 11, 2022, the Company issued

nine

 warrants to Sea Trade (Note 6) that

permitted the holder to purchase from the Company

18,487,393

, at $

0.01

 per share, each exercisable on

the delivery of each vessel from Sea Trade to the Company. The warrants would expire and no longer be

exercisable upon the earlier of the termination date of each memorandum of agreement and the date before

the delivery date of a vessel if a registration statement had not been declared effective. The holder of the

warrants would not be considered a shareholder prior to the issuance of the shares. As of December 31,

2022, there was only

one

 warrant not exercised by Sea Trade, which was exercised on January 30, 2023,

upon delivery of the ninth Ultramax vessel (Note 6). The Company did

no

t receive any proceeds from the

exercise of the warrants by Sea Trade and the exercise price of the shares issued was included in the price

of the vessels acquired.

XML

Voyage Expenses

12 Months Ended

Dec. 31, 2023

Voyage Expenses [Abstract]

Voyage Expenses

12. Voyage expenses

The amounts in the accompanying consolidated statements of income are analyzed as follows:

2023

2022

2021

Commissions

$

13,331

$

14,412

$

10,794

Gain from bunkers

(474)

(8,100)

(5,955)

Port expenses and other

764

630

731

Total 

$

13,621

$

6,942

$

5,570

XML

Interest and Finance Costs

12 Months Ended

Dec. 31, 2023

Interest and Finance Costs [Abstract]

Interest and Finance Costs

13. Interest and Finance Costs

The amounts in the accompanying consolidated statements of income are analyzed as follows:

2023

2022

2021

Interest expense, debt

$

39,617

$

21,983

$

18,067

Finance liabilities interest expense

6,786

2,735

-

Amortization of debt and finance liabilities issuance 

costs

2,620

2,286

1,865

Loan and other expenses

308

415

307

Interest expense and finance costs

$

49,331

$

27,419

$

20,239

XML

Earnings per Share

12 Months Ended

Dec. 31, 2023

Earnings per Share [Abstract]

Earnings per Share

14. Earnings per Share

All common shares issued (including the restricted shares issued under the Company’s incentive plans)

are the Company’s common stock and have equal rights to vote and participate in dividends. The

calculation of basic earnings per share does not treat the non-vested shares (not considered participating

securities) as outstanding until the time/service-based vesting restriction has lapsed.

The dilutive effect on

unexercised warrants (Note 11(g)) that are in-the-money, is computed using the treasury stock method

which assumes that the proceeds upon exercise of these warrants are used to purchase common shares

at the average market price for the period. Incremental shares are the number of shares assumed issued

under the treasury stock method weighted for the periods the non-vested shares were outstanding. In 2023,

2022 and 2021, there were

1,710,513

,

3,257,861

, and

3,735,059

 incremental shares, respectively,

included in the denominator of the diluted earnings per share calculation. 

Net income attributable to common stockholders is adjusted by the dividends on Series B Preferred Stock.

Net income attributable to common stockholders is further adjusted by the unrealized gain on warrants as

of December 31, 2023 to calculate the diluted earnings per share.

2023

2022

2021

Net income

$

49,844

$

119,063

$

57,394

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Net income attributable to common stockholders

$

44,075

$

113,294

$

51,625

Weighted average number of common shares, basic

100,166,629

80,061,040

81,121,781

Earnings per share, basic

$

0.44

$

1.42

$

0.64

Net income

$

49,844

$

119,063

$

57,394

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Unrealized gain on warrants

(1,583)

-

-

Adjusted net income attributable to common

stockholders

$

42,492

$

113,294

$

51,625

Weighted average number of common shares, basic

100,166,629

80,061,040

81,121,781

Incremental shares 

1,710,513

3,257,861

3,735,059

Weighted average number of common shares, diluted 

101,877,142

83,318,901

84,856,840

Earnings per share, diluted

$

0.42

$

1.36

$

0.61

XML

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Income Taxes

15. Income Taxes

Under the laws of the countries of the companies’ incorporation and / or vessels’ registration, the

companies are not subject to tax on international shipping income; however, they are subject to registration

and tonnage taxes, which are included in vessel operating expenses in the accompanying consolidated

statements of operations.

The vessel-owning companies with vessels that have called on the United States are obliged to file tax

returns with the Internal Revenue Service. However, pursuant to the Internal Revenue Code of the United

States, U.S. source income from the international operations of ships is generally exempt from U.S. tax.

The applicable tax is

50

% of

4

% of U.S.-related gross transportation income unless an exemption applies.

The Company and each of its subsidiaries expects it qualifies for this statutory tax exemption for the 2023,

2022 and 2021 taxable years, and the Company takes this position for United States federal income tax

return reporting purposes.

XML

Financial Instruments and Fair Value Disclosures

12 Months Ended

Dec. 31, 2023

Financial Instruments and Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Disclosures

16. Financial Instruments and Fair Value Disclosures

Interest rate risk and concentration of credit risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk,

consist principally of cash and trade accounts receivable. The ability and willingness of each of the

Company’s counterparties to perform their obligations under a contract depend upon a number of factors

that are beyond the Company’s control and may include, among other things, general economic conditions,

the state of the capital markets, the condition of the shipping industry and charter hire rates. The

Company’s credit risk with financial institutions is limited as it has temporary cash investments, consisting

mostly of deposits, placed with various qualified financial institutions and performs periodic evaluations of

the relative credit standing of those financial institutions. The Company limits its credit risk with accounts

receivable by performing ongoing credit evaluations of its customers’ financial condition and by receiving

payments of hire in advance. The Company, generally, does not require collateral for its accounts

receivable and does not have any agreements to mitigate credit risk. 

In 2023, 2022 and 2021, charterers that individually accounted for

10

% or more of the Company’s time

charter revenues were as follows:

Charterer

2023

2022

2021

Cargill International SA

13%

19%

10%

Koch Shipping PTE LTD. Singapore

*

15%

*

*Less than 10%

The Company is exposed to interest rate fluctuations associated with its variable rate borrowings. On July

6, 2023, the company entered into an interest rate swap with DNB (Notes 8 and 13) to manage part of such

exposure.

Fair value of assets and liabilities

The carrying values of financial assets reflected in the accompanying consolidated balance sheet

approximate their respective fair values due to the short-term nature of these financial instruments. The

fair value of long-term bank loans with variable interest rates approximates the recorded values, generally

due to their variable interest rates. 

Fair value measurements disclosed 

As of December 31, 2023, the Bond having a fixed interest rate and a carrying value of $

119,100

 (Note 8)

had a fair value of $

118,505

 determined through the Level 1 input of the fair value hierarchy as defined in

FASB guidance for Fair Value Measurements.

On September 20, 2022, the Company acquired

25,000

 Series D Preferred Shares of OceanPal at

$

17,600

, determined by taking into consideration a third-party valuation which was based on the income

approach, taking into account the present value of the future cash flows the Company expects to receive

from holding the equity instrument.

On December 15, 2022, the Company distributed the Series D Preferred Shares as non-cash dividend and

measured their fair value on the date of declaration at $

18,189

. Their fair value was determined by using

the income approach, taking into account the present value of the future cash flows, the holder of shares

would expect to receive from holding the equity instrument which resulted in gain of $

589

.

On February 8, 2023, the Company acquired

13,157

 shares of OceanPal Series D Preferred Shares, as

part of the consideration provided to the Company for sale of Melia to OceanPal, at $

10,000

, taking into

consideration a third-party valuation which was based on the income approach, taking into account the

present value of the future cash flows the Company expects to receive from holding the equity instrument.

On June 9, 2023, the Company distributed the Series D Preferred Shares as a non-cash dividend and

measured their fair value on the date of declaration at $

10,761

. The fair value was determined by using

the income approach, taking into account the present value of the future cash flows, the holder of shares

would expect to receive from holding the equity instrument which resulted in gain of $

761

.

Other Fair value measurements

Description (in thousands of US Dollars)

December 31,

2022

Quoted Prices

in Active

Markets

(Level 1)

Non-recurring fair value measurements

Long-lived assets held for use

$

67,909

$

67,909

Total non-recurring fair value measurements

67,909

67,909

December 31,

2023

Quoted Prices

in Active

Markets

(Level 1)

Significant

Other

Observable

Inputs (Level 2)

Significant

Other

Observable

Inputs (Level 3)

Assets

Recurring fair value measurements

Investments in equity securities

$

20,729

20,729

$

$

Investments in related party

8,315

8,138

177

Interest rate swap, asset

129

129

Total recurring fair value measurements

$

29,173

$

28,867

$

129

$

177

Non-recurring fair value measurements

Equity method investments

$

4,519

$

$

4,519

$

Long-lived assets held for use

7,809

7,809

-

Total non-recurring fair value measurements

$

12,328

$

7,809

$

4,519

-

Liabilities

Recurring fair value measurements

Interest rate swap, liability

568

568

Warrant liability

6,332

6,332

Total recurring fair value measurements

6,900

6,332

568

-

XML

Subsequent Events

12 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

17. Subsequent Events

a)

Exercise of warrants:

Since January 4, 2024 and until April 1, 2024, holders of warrants exercised

3,051,471

 warrants under which

4,597,192

 shares of common stock were issued and the proceeds

from the exercise of warrants amounted to $

12,206

.

b)

 Series B Preferred Stock Dividends

: On January 15, 2024, the Company paid a quarterly

dividend on its series B preferred stock, amounting to $

0.5546875

 per share, or $

1,442

, to its

stockholders of record as of January 12, 2024.

c)

Acquisition of property:

On January 18, 2024, the Company acquired from unaffiliated third

parties a plot of land for the purchase price of Euro

310,000

 to be utilized for corporate purposes.

On March 6, 2024, the Company acquired from unaffiliated third parties another plot of land for the

purchase price of Euro

1,300,000

.

d)

 Sale of Vessel Artemis:

 On January 19, 2024, the Company, through a wholly owned subsidiary,

entered into an agreement with an unrelated third party to sell the vessel Artemis for the sale price

of $

12,990

. The vessel was delivered to the new owners on March 5, 2024.

e)

Commissioning Service Operation Vessels (CSOVs):

On January 24, 2024, Diana Energize Inc.

increased its equity commitment to Euro

50

 million, being approximately

45.87

% of the limited

partnership’s capital (Note 4 (c)).

f)

Methanol Dual Fuel New-Building Kamsarmax Dry Bulk Vessels:

On February 8, 2024, the

Company signed an agreement to order through Marubeni Corporation or its guaranteed nominee,

an unaffiliated third party,

two

 81,200 dwt methanol dual fuel new-building Kamsarmax dry bulk

vessels, for a purchase price of $

46,000

 each, built at Tsuneishi Group (Zhoushan) Shipbuilding

Inc., China. The vessels are expected to be delivered to the Company by the second half of 2027

and the first half of 2028 respectively. On February 15, 2024, the Company paid the first instalment,

amounted $

8,050

 for each vessel, representing the

17.5

% of the contract price. 

g)

 Sale of Vessel Houston:

 On February 22, 2024, the Company, through a wholly owned subsidiary,

entered into an agreement with an unrelated third party to sell the vessel Houston for the sale price

of $

23,300

,

with delivery to the new owners latest by September 16, 2024.

h)

 Common Stock Dividend:

 On February 23, 2024, the Company declared a cash dividend on its

common stock of $

0.075

 per share, based on the Company’s results of operations during the fourth

quarter ended December 31, 2023. The cash dividend was paid on March 12, 2024, to all

shareholders of record as of March 5, 2024.

XML

Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2023

Significant Accounting Policies [Abstract]

Principles of Consolidation

a) Principles of Consolidation

: The accompanying consolidated financial statements have been

prepared in accordance with U.S. generally accepted accounting principles and include the accounts of

Diana Shipping Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have

been eliminated upon consolidation. Under Accounting Standards Codification (“ASC”) 810

“Consolidation”, the Company consolidates entities in which it has a controlling financial interest, by first

considering if an entity meets the definition of a variable interest entity ("VIE") for which the Company is

deemed to be the primary beneficiary under the VIE model, or if the Company controls an entity through a

majority of voting interest based on the voting interest model. The Company evaluates financial

instruments, service contracts, and other arrangements to determine if any variable interests relating to an

entity exist. For entities in which the Company has a variable interest, the Company determines if the entity

is a VIE by considering whether the entity’s equity investment at risk is sufficient to finance its activities

without additional subordinated financial support and whether the entity’s at-risk equity holders have the

characteristics of a controlling financial interest. In performing the analysis of whether the Company is the

primary beneficiary of a VIE, the Company considers whether it individually has the power to direct the

activities of the VIE that most significantly affect the entity’s performance and also has the obligation to

absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. If

the Company holds a variable interest in an entity that previously was not a VIE, it reconsiders whether the

entity has become a VIE.

Use of Estimates

b) Use of Estimates:

The preparation of consolidated financial statements in conformity with U.S.

generally accepted accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at

the date of the consolidated financial statements and the reported amounts of revenues and expenses

during the reporting period. Actual results could differ from those estimates.

Other Comprehensive Income / (Loss)

c) Other Comprehensive Income / (Loss):

The Company separately presents certain transactions,

which are recorded directly as components of stockholders’ equity. Other Comprehensive Income / (Loss)

is presented in a separate statement.

Foreign Currency Translation

d) Foreign Currency Translation:

The functional currency of the Company is the U.S. dollar because

the Company’s vessels operate in international shipping markets, and therefore primarily transact business

in U.S. dollars. The Company’s accounting records are maintained in U.S. dollars. Transactions involving

other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the

time of the transactions. At the balance sheet dates, monetary assets and liabilities which are denominated

in other currencies are translated into U.S. dollars at the year-end exchange rates. Resulting gains or

losses are included in other operating (income)/loss in the accompanying consolidated statements of

operations.

Cash, Cash Equivalents and Time Deposits

e) Cash, Cash Equivalents and Time Deposits:

The Company considers highly liquid investments

such as time deposits, certificates of deposit and their equivalents with an original maturity of up to about

three months to be cash equivalents. Time deposits with maturity above three months are removed from

cash and cash equivalents and are separately presented as time deposits. Restricted cash consists mainly

of cash deposits required to be maintained at all times under the Company’s loan facilities (Note 8). As of

December 31, 2023 and 2022, accrued interest income amounted to $

1,206

 and $

578

, respectively and is

included in prepaid expenses and other assets in the accompanying consolidated balance sheets.

Accounts Receivable, Trade

f) Accounts Receivable, Trade:

The amount shown as accounts receivable, trade, at each balance

sheet date, includes receivables from charterers for hire from lease agreements, net of provisions for

doubtful accounts, if any. At each balance sheet date, all potentially uncollectible accounts are assessed

individually for purposes of determining the appropriate provision for doubtful accounts. As of December

31, 2023 and 2022 there was

no

 provision for doubtful accounts. The Company does not recognize interest

income on trade receivables as all balances are settled within a year.

Inventories

g) Inventories:

Inventories consist of lubricants and victualling which are stated, on a consistent

basis, at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the

ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When evidence exists that the net realizable value of inventory is lower than its cost, the difference is

recognized as a loss in earnings in the period in which it occurs. Cost is determined by the first in, first out

method. Amounts removed from inventory are also determined by the first in first out method. Inventories

may also consist of bunkers, when on the balance sheet date, a vessel is without employment. Bunkers, if

any, are also stated at the lower of cost or net realizable value and cost is determined by the first in, first

out method.

Vessel Cost

h) Vessel Cost

: Vessels are stated at cost which consists of the contract price and any material

expenses incurred upon acquisition or during construction. Expenditures for conversions and major

improvements are also capitalized when they appreciably extend the life, increase the earning capacity or

improve the efficiency or safety of the vessels; otherwise, these amounts are charged to expense as

incurred. Interest cost incurred during the assets' construction periods that theoretically could have been

avoided if expenditure for the assets had not been made is also capitalized. The capitalization rate, applied

on accumulated expenditures for the vessel, is based on interest rates applicable to outstanding borrowings

of the period.

Vessels held for sale

i) Vessels held for sale:

 The Company classifies assets as being held for sale when the respective

criteria are met. Long-lived assets or disposal groups classified as held for sale are measured at the lower

of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet

the criteria to be held for sale. The fair value less cost to sell of an asset held for sale is assessed at each

reporting period it remains classified as held for sale. When the plan to sell an asset changes, the asset is

reclassified as held and used, measured at the lower of its carrying amount before it was recorded as held

for sale, adjusted for depreciation, and the asset’s fair value at the date of the decision not to sell.

Sale and leaseback

j) Sale and leaseback:

 In accordance with ASC 842-40 in a sale-leaseback transaction where the

sale of an asset and leaseback of the same asset by the seller is involved, the Company, as seller-lessee,

should firstly determine whether the transfer of an asset shall be accounted for as a sale under ASC 606.

For a sale to have occurred, the control of the asset would need to be transferred to the buyer and the

buyer would need to obtain substantially all the benefits from the use of the asset. As per the

aforementioned guidance, sale and leaseback transactions, which include an obligation for the Company,

as seller-lessee, to repurchase the asset, or other situations where the leaseback would be classified as a

finance lease, are determined to be failed sales under ASC 842-40. Consequently, the Company does not

derecognize the asset from its balance sheet and accounts for any amounts received under the sale and

leaseback agreement as a financing arrangement.

Property and equipment

k) Property and equipment:

 The Company owns the land and building where its offices are located.

The Company also owns part of a plot acquired for office use (Note 7). Land is stated at cost and it is not

subject to depreciation. The building has an estimated useful life of

55 years

 with

no

 residual value.

Furniture, office equipment and vehicles have a useful life of

5 years

, except for a car owned by the

Company, which has a useful life of

10 years

. Computer software and hardware have a useful life of

three

years

. Depreciation is calculated on a straight-line basis.

Impairment of Long-Lived Assets

l) Impairment of Long-Lived Assets:

Long-lived assets are reviewed for impairment whenever

events or changes in circumstances (such as market conditions, obsolesce or damage to the asset,

potential sales and other business plans) indicate that the carrying amount of an asset may not be

recoverable. When the estimate of undiscounted projected net operating cash flows, excluding interest

charges, expected to be generated by the use of an asset over its remaining useful life and its eventual

disposition is less than its carrying amount, the Company evaluates the asset for impairment loss.

Measurement of the impairment loss is based on the fair value of the asset, determined mainly by third

party valuations. 

For vessels, the Company calculates undiscounted projected net operating cash flows by considering the

historical and estimated vessels’ performance and utilization with the significant assumption being future

charter rates for the unfixed days, using the most recent

10

-year average of historical 1 year time charter

rates available for each type of vessel over the remaining estimated life of each vessel, net of commissions.

Historical ten-year blended average one-year time charter rates are in line with the Company’s overall

chartering strategy, they reflect the full operating history of vessels of the same type and particulars with

the Company’s operating fleet and they cover at least a full business cycle, where applicable. When the

10

-year average of historical 1 year time charter rates is not available for a type of vessels, the Company

uses the average of historical 1 year time charter rates of the available period. Other assumptions used in

developing estimates of future undiscounted cash flow are charter rates calculated for the fixed days using

the fixed charter rate of each vessel from existing time charters, the expected outflows for scheduled

vessels’ maintenance; vessel operating expenses; fleet utilization, and the vessels’ residual value if sold

for scrap. Assumptions are in line with the Company’s historical performance and its expectations for future

fleet utilization under its current fleet deployment strategy. This calculation is then compared with the

vessels’ net book value plus unamortized deferred costs. The difference between the carrying amount of

the vessel plus unamortized deferred costs and their fair value is recognized in the Company's accounts

as impairment loss.

The Company’s impairment assessment did not result in the

recognition of impairment

 on any vessel and

therefore

no

 impairment loss was identified or recorded in 2023, 2022 and 2021.

For property and equipment, the Company determines undiscounted projected net operating cash flows

by considering an estimated monthly rent the Company would have to pay in order to lease a similar

property, during the useful life of the building. No impairment loss was identified or recorded for 2023, 2022

and 2021 and the Company has not identified any other facts or circumstances that would require the write

down of the value of its land or building in the near future.

Vessel Depreciation

m) Vessel Depreciation:

Depreciation is computed using the straight-line method over the estimated

useful life of the vessels, after considering the estimated salvage (scrap) value. Each vessel’s salvage

value is equal to the product of its lightweight tonnage and estimated scrap rate. Management estimates

the useful life of the Company’s vessels to be

25 years

 from the date of initial delivery from the shipyard.

Second-hand vessels are depreciated from the date of their acquisition through their remaining estimated

useful life. When regulations place limitations over the ability of a vessel to trade on a worldwide basis, its

remaining useful life is adjusted at the date such regulations are adopted.

Effective July 1, 2023, the

Company changed its estimated scrap rate of its vessels from $250 per lightweight ton to $400 per

lightweight ton, calculated based on the average demolition prices in different markets, during the last 15

years.

 For the period from July 1, 2023 to December 31, 2023, this increase in vessels’ salvage values

resulted in decreased depreciation expense, increased operating income and increased net income by

$

3,773

 and increased earnings per share, basic and diluted, by $

0.04

.

Deferred Costs

n) Deferred Costs

: The Company follows the deferral method of accounting for dry-docking and

special survey costs whereby actual costs incurred are deferred and amortized on a straight-line basis over

the period through the date the next survey is scheduled to become due. Unamortized deferred costs of

vessels that are sold or impaired are written off and included in the calculation of the resulting gain or loss

in the year of the vessel’s sale (Note 6) or impairment.

Financing Costs

o) Financing Costs

: Fees paid for obtaining finance liabilities, fees paid to lenders for obtaining new

loans, new bonds, or refinancing existing ones accounted as loan modification, are deferred and recorded

as a contra to debt. Other fees paid for obtaining loan facilities not used at the balance sheet date are

deferred. Fees relating to drawn loan facilities are amortized to interest and finance costs over the life of

the related debt using the effective interest method and fees incurred for loan facilities not used at the

balance sheet date are amortized using the straight-line method according to their availability terms.

Unamortized fees relating to loans or bonds repaid or repurchased or refinanced as debt extinguishment

are written off in the period the repayment, prepayment, repurchase or extinguishment is made and

included in the determination of gain/loss on debt extinguishment. Loan commitment fees are expensed in

the period incurred, unless they relate to loans obtained to finance vessels under construction, in which

case, they are capitalized to the vessels’ cost.

Concentration of Credit Risk

p) Concentration of Credit Risk

: Financial instruments, which potentially subject the Company to

significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The

Company places its temporary cash investments, consisting mostly of deposits, with various qualified

financial institutions and performs periodic evaluations of the relative credit standing of those financial

institutions that are considered in the Company’s investment strategy. The Company limits its credit risk

with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and

generally does not require collateral for its accounts receivable and does not have any agreements to

mitigate credit risk.

Accounting for Revenues and Expenses

q) Accounting for Revenues and Expenses:

Revenues are generated from time charter

agreements which contain a lease as they meet the criteria of a lease under ASC 842. Agreements with

the same charterer are accounted for as separate agreements according to their specific terms and

conditions. All agreements contain a minimum non-cancellable period and an extension period at the option

of the charterer. Each lease term is assessed at the inception of that lease. Under a time charter agreement,

the charterer pays a daily hire for the use of the vessel and reimburses the owner for hold cleanings, extra

insurance premiums for navigating in restricted areas and damages caused by the charterers. Revenues

from time charter agreements providing for varying annual rates are accounted for as operating leases and

thus recognized on a straight-line basis over the non-cancellable rental periods of such agreements, as

service is performed. The charterer pays to third parties port, canal and bunkers consumed during the term

of the time charter agreement, unless they are for the account of the owner, in which case, they are included

in voyage expenses. Voyage expenses also include commissions on time charter revenue (paid to the

charterers, the brokers and the managers) and gain or loss from bunkers resulting mainly from the

difference in the value of bunkers paid by the Company when the vessel is redelivered to the Company

from the charterer under the vessel’s previous time charter agreement and the value of bunkers sold by

the Company when the vessel is delivered to a new charterer (Note 12). Under a time charter agreement,

the owner pays for the operation and the maintenance of the vessel, including crew, insurance, spares and

repairs, which are recognized in operating expenses. The Company, as lessor, has elected not to allocate

the consideration in the agreement to the separate lease and non-lease components (operation and

maintenance of the vessel) as their timing and pattern of transfer to the charterer, as the lessee, are the

same and the lease component, if accounted for separately, would be classified as an operating lease.

Additionally, the lease component is considered the predominant component, as the Company has

assessed that more value is ascribed to the vessel rather than to the services provided under the time

charter contracts. In time charter agreements apart from the agreed hire rate, the Company may be entitled

to an additional income, such as ballast bonus. Ballast bonus is paid by charterers for repositioning the

vessel. The Company analyzes terms of each contract to assess whether income from ballast bonus is

accounted together with the lease component over the duration of the charter or as service component

under ASC 606. Deferred revenue includes cash received prior to the balance sheet date for which all

criteria to recognize as revenue have not been met.

Repairs and Maintenance

r) Repairs and Maintenance:

 All repair and maintenance expenses including underwater inspection

expenses are expensed in the year incurred. Such costs are included in vessel operating expenses in the

accompanying consolidated statements of operations.

Earnings / (loss) per Common Share

s) Earnings / (loss) per Common Share:

 Basic earnings / (loss) per common share are computed

by dividing net income / (loss) available to common stockholders by the weighted average number of

common shares outstanding during the year. Shares issuable at little or no cash consideration upon

satisfaction of certain conditions, are considered outstanding and included in the computation of basic

earnings/(loss) per share as of the date that all necessary conditions have been satisfied. Diluted earnings

per common share, reflects the potential dilution that could occur if securities or other contracts to issue

common stock were exercised.

Segmental Reporting

t) Segmental Reporting:

The Company engages in the operation of dry-bulk vessels which has been

identified as one reportable segment. The operation of the vessels is the main source of revenue

generation, the services provided by the vessels are similar and they all operate under the same economic

environment. Additionally, the vessels do not operate in specific geographic areas, as they trade worldwide;

they do not trade in specific trade routes, as their trading (route and cargo) is dictated by the charterers;

and the Company does not evaluate the operating results for each type of dry bulk vessels (i.e. Panamax,

Capesize etc.) for the purpose of making decisions about allocating resources and assessing performance.

Fair Value Measurements

u) Fair Value Measurements

: The Company classifies and discloses its assets and liabilities carried

at fair value in one of the following categories: Level 1: Quoted market prices in active markets for identical

assets or liabilities; Level 2: Observable market-based inputs or unobservable inputs that are corroborated

by market data; Level 3: Unobservable inputs that are not corroborated by market data.

Share Based Payments

v) Share Based Payments:

 The Company issues restricted share awards which are measured at

their grant date fair value and are not subsequently re-measured. That cost is recognized over the period

during which an employee is required to provide service in exchange for the award—the requisite service

period (usually the vesting period). No compensation cost is recognized for equity instruments for which

employees do not render the requisite service unless the board of directors determines otherwise.

Forfeitures of awards are accounted for when and if they occur. If an equity award is modified after the

grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair

value of the modified award over the fair value of the original award immediately before the modification.

Equity method investments

w) Equity method investments:

 Investments in common stock in entities over which the Company

exercises significant influence but does not exercise control are accounted for by the equity method of

accounting. Under this method, the Company records such an investment at cost (or fair value if a

consequence of deconsolidation) and adjusts the carrying amount for its share of the earnings or losses of

the entity subsequent to the date of investment and reports the recognized earnings or losses in income.

Dividends received, if any, reduce the carrying amount of the investment and are recorded as receivable

on dividend declaration. When the carrying value of an equity method investment is reduced to zero

because of losses, the Company does not provide for additional losses unless it is committed to provide

further financial support to the investee. The Company also evaluates whether a loss in value of an

investment that is other than a temporary decline should be recognized. Evidence of a loss in value might

include absence of an ability to recover the carrying amount of the investment or inability of the investee to

sustain an earnings capacity that would justify the carrying amount of the investment. For equity method

investments that the Company has elected to account for using the fair value option, all subsequent

changes in fair value are included in gain/loss on related party investments.

Going concern

x) Going concern:

Management evaluates, at each reporting period, whether there are conditions or

events that raise substantial doubt about the Company's ability to continue as a going concern within one

year from the date the financial statements are issued.

Shares repurchased and retired

y) Shares repurchased and retired:

The Company’s shares repurchased for retirement, are

immediately cancelled and the Company’s share capital is accordingly reduced. Any excess of the cost of

the shares over their par value is allocated in additional paid-in capital, in accordance with ASC 505-30-

30, Treasury Stock.

Financial Instruments, credit losses

z) Financial Instruments, credit losses

: At each reporting date, the Company evaluates its financial

assets individually for credit losses and presents such assets in the net amount expected to be collected

on such financial asset. When financial assets present similar risk characteristics, these are evaluated on

a collective basis. When developing an estimate of expected credit losses, the Company considers

available information relevant to assessing the collectability of cash flows such as internal information, past

events, current conditions and reasonable and supportable forecasts. As of December 31, 2021, the

Company assessed the financial condition of DWM, changed its estimate on the recoverability of its

receivable due from DWM relating to the fine paid by the Company on behalf of DWM (Notes 4(a)) and

determined that part of the amount may not be recoverable. As a result, the Company recorded as of

December 31, 2021, an allowance for credit losses amounting to $

300

, based on probability of default as

there was no previous loss record. The allowance for credit losses was included in other operating

(income)/loss in the 2021 accompanying consolidated statements of income. The allowance was reversed

in 2022 as the full amount was recovered and its reversal is included in other operating (income)/loss” in

the 2022 accompanying consolidated statements of operations.

No

 credit losses were identified and

recorded in 2023 and 2022.

Financial Instruments, Investment-Equity Securities, Recognition and Measurement

aa) Financial Instruments, Investments-Equity Securities, Recognition and Measurement

: The

Company initially recognizes equity securities at the transaction price. Equity Investments with readily

determinable fair values are subsequently measured at fair value through net income. Unrealized holding

gains and losses for these securities are recorded in earnings. According to ASC 321-10-35-2, the

Company has elected to measure equity securities without a readily determinable fair value, that do not

qualify for the practical expedient in ASC 820

Fair Value Measurement

to estimate fair value using the NAV

per share (or its equivalent), at its cost minus impairment, if any. If the Company identifies observable price

changes in orderly transactions for the identical or a similar investment of the same issuer, it shall measure

equity securities at fair value as of the date that the observable transaction occurred. The Company shall

continue to apply this measurement until the investment does not qualify to be measured in accordance

with this paragraph. At each reporting period, the Company reassesses whether an equity investment

without a readily determinable fair value qualifies to be measured in accordance with this paragraph. The

Company may subsequently elect to measure equity securities at fair value and the election to measure

securities at fair value shall be irrevocable. Any resulting gains or losses on the securities for which that

election is made shall be recorded in earnings at the time of the election. At each reporting period, the

Company also evaluates indicators such as the investee’s performance and its ability to continue as going

concern and market conditions, to determine whether an investment is impaired in which case, the

Company will estimate the fair value of the investment to determine the amount of the impairment loss.

Non-monetary transactions and spinoffs

ab) Non-monetary transactions and spinoffs:

Non-monetary transactions are recorded based on the

fair values of the assets (or services) involved unless the fair value of neither the asset received, nor the

asset relinquished is determinable within reasonable limits. Also, under ASC 845-10-30-10 Nonmonetary

Transactions, Overall, Initial Measurement, Nonreciprocal Transfers with Owners and ASC 505-60 Spinoffs

and Reverse Spinoffs, if the pro-rata spinoff of a consolidated subsidiary or equity method investee does

not meet the definition of a business under ASC 805, the nonreciprocal transfer of nonmonetary assets is

accounted for at fair value, if the fair value of the nonmonetary asset distributed is objectively measurable

and would be clearly realizable to the distributing entity in an outright sale at or near the time of the

distribution, and the spinor recognizes a gain or loss for the difference between the fair value and book

value of the spinee. A transaction is considered pro rata if each owner receives an ownership interest in

the transferee in proportion to its existing ownership interest in the transferor (even if the transferor retains

an ownership interest in the transferee). In accordance with ASC 805 Business Combinations: Clarifying

the Definition of a Business, if substantially all of the fair value of the gross assets distributed in a spinoff

are concentrated in a single identifiable asset or group of similar identifiable assets, then the spinoff of a

consolidated subsidiary does not meet the definition of a business. Other nonreciprocal transfers of

nonmonetary assets to owners are accounted for at fair value if the fair value of the nonmonetary asset

distributed is objectively measurable and would be clearly realizable to the distributing entity in an outright

sale at or near the time of the distribution.

Contracts in entity's equity

ac) Contracts in entity’s equity:

 Under ASC 815-40 contracts that require settlement in shares are

considered equity instruments, unless an event that is not in the entity’s control would require net cash

settlement. Additionally, the entity should have sufficient authorized and unissued shares, the contract

contains an explicit share limit, there is no requirement to net cash settle the contract in the event the entity

fails to make timely filings with the Securities and Exchange Commission (SEC) and there are no cash

settled top-off or make-whole provisions. The Company follows the provision of ASC 480 “Distinguishing

Liabilities from Equity” and ASC 815 “Derivatives and Hedging” to determine the classification of certain

freestanding financial instruments as permanent equity, temporary equity or liability. The Company, when

assessing the accounting of the warrants and the pre-funded warrants, takes into consideration ASC 480

to determine whether the warrants and the pre-funded warrants should be classified as permanent equity

instead of temporary equity or liability. The Company further analyses the key features of the warrants and

the pre-funded warrants and examines whether these fall under the definition of a derivative according to

ASC 815 applicable guidance or whether certain of these features affect the classification. In cases when

derivative accounting is deemed inappropriate, no bifurcation of these features is performed.

Guarantees

ad) Guarantees:

Guarantees issued by the Company, excluding those that guarantee its own

performance, are recognized at fair value at the time the guarantees are issued, or upon deconsolidation

of a subsidiary. A liability for the fair value of the obligation undertaken in issuing the guarantee is

recognized. If it becomes probable that the Company will have to perform under a guarantee (Note 10(c)),

the Company will recognize an additional liability if the amount of the loss can be reasonably estimated.

The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a

subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the

fair value recognition provision of the liability, financial statement disclosures of such items are made.

XML

Advances for Vessel Acquisitions and Vessels, net (Tables)

12 Months Ended

Dec. 31, 2023

Advances for Vessel Acquisitions and Vessels, net [Abstract]

Schedule of Vessels, net in the accompanying consolidated balance sheets

Vessel Cost

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2021

$

810,429

$

(166,979)

$

643,450

- Additions for vessel acquisitions and improvements

358,504

-

358,504

- Additions for improvements reclassified from other non-

current assets

1,370

-

1,370

- Vessel disposals

(29,175)

12,453

(16,722)

- Depreciation for the year

-

(36,986)

(36,986)

Balance, December 31, 2022

$

1,141,128

$

(191,512)

$

949,616

- Additions for vessel acquisitions and improvements

61,682

-

61,682

- Vessel disposals

(60,655)

21,688

(38,967)

- Vessel disposal due to deconsolidation of subsidiary (Note

4(b))

(27,908)

-

(27,908)

- Depreciation for the year

-

(44,231)

(44,231)

Balance, December 31, 2023

$

1,114,247

$

(214,055)

$

900,192

XML

Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2023

Property and Equipment, net [Abstract]

Schedule of property and equipment

Property and

Equipment

Accumulated

Depreciation

Net Book

Value

Balance, December 31, 2021

$

28,269

$

(5,427)

$

22,842

- Additions in property and equipment

667

-

667

- Depreciation for the year

-

(546)

(546)

Balance, December 31, 2022

$

28,936

$

(5,973)

$

22,963

- Additions in property and equipment

2,006

-

2,006

- Depreciation for the year

-

(687)

(687)

Balance, December 31, 2023

$

30,942

$

(6,660)

$

24,282

XML

Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2023

Long-term Debt [Abstract]

Schedule of Long-term Debt Instruments

2023

2022

Senior unsecured bond

119,100

125,000

Secured long-term debt

397,857

405,120

Total long-term debt

$

516,957

$

530,120

Less: Deferred financing costs 

(6,314)

(7,609)

Long-term debt, net of deferred financing costs

$

510,643

$

522,511

Less: Current long-term debt, net of deferred financing costs,

current

(49,512)

(91,495)

Long-term debt, excluding current maturities

$

461,131

$

431,016

Schedule of Maturities of Long-term Debt

Period

Principal Repayment

Year 1

$

51,783

Year 2

51,783

Year 3

170,883

Year 4

152,696

Year 5

62,026

Year 6 and thereafter

27,786

Total

$

516,957

XML

Finance Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Finance Liabilities [Abstract]

Analysis of Finance Liabilities on Balance Sheets

December 31, 2023

December 31, 2022

Finance liabilities

133,337

142,370

Less: Deferred financing costs 

(1,208)

(1,439)

Finance liabilities, net of deferred financing costs

$

132,129

$

140,931

Less: Current finance liabilities, net of deferred financing costs,

current

(9,221)

(8,802)

Finance liabilities, excluding current maturities

$

122,908

$

132,129

Annual Lease Liabilities

Period

Principal Repayment

Year 1

$

9,437

Year 2

9,808

Year 3

10,224

Year 4

10,661

Year 5

11,151

Year 6 and thereafter

82,056

Total

$

133,337

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies [Abstract]

Schedule of fixed non cancelable time charter contracts

Period

Amount

Year 1

$

127,297

Year 2

24,629

Year 3

9,454

Year 4

725

 Total

$

162,105

XML

Capital Stock and Changes in Capital Accounts (Tables)

12 Months Ended

Dec. 31, 2023

Capital Stock and Changes in Capital Accounts [Abstract]

Schedule of share-based compensation restricted stock and restricted stock units activity

Number of Shares

Weighted Average

Grant Date Price

Outstanding as of December 31, 2020

2,423,012

$

2.95

Granted

8,260,000

2.85

Vested

(1,168,363)

3.20

Outstanding as of December 31, 2021

9,514,649

$

2.83

Granted

1,470,000

4.15

Vested

(3,118,060)

2.86

Outstanding as of December 31, 2022

7,866,589

$

3.07

Granted

1,750,000

4.54

Vested

(2,822,753)

3.05

Outstanding as of December 31, 2023

6,793,836

$

3.45

XML

Voyage Expenses (Tables)

12 Months Ended

Dec. 31, 2023

Voyage Expenses [Abstract]

Schedule of voyage expenses analysis

2023

2022

2021

Commissions

$

13,331

$

14,412

$

10,794

Gain from bunkers

(474)

(8,100)

(5,955)

Port expenses and other

764

630

731

Total 

$

13,621

$

6,942

$

5,570

XML

Interest and Finance Costs (Tables)

12 Months Ended

Dec. 31, 2023

Interest and Finance Costs [Abstract]

Schedule Of Interest And Finance Costs

2023

2022

2021

Interest expense, debt

$

39,617

$

21,983

$

18,067

Finance liabilities interest expense

6,786

2,735

-

Amortization of debt and finance liabilities issuance 

costs

2,620

2,286

1,865

Loan and other expenses

308

415

307

Interest expense and finance costs

$

49,331

$

27,419

$

20,239

XML

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

2023

2022

2021

Net income

$

49,844

$

119,063

$

57,394

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Net income attributable to common stockholders

$

44,075

$

113,294

$

51,625

Weighted average number of common shares, basic

100,166,629

80,061,040

81,121,781

Earnings per share, basic

$

0.44

$

1.42

$

0.64

Net income

$

49,844

$

119,063

$

57,394

Dividends on series B preferred shares

(5,769)

(5,769)

(5,769)

Unrealized gain on warrants

(1,583)

-

-

Adjusted net income attributable to common

stockholders

$

42,492

$

113,294

$

51,625

Weighted average number of common shares, basic

100,166,629

80,061,040

81,121,781

Incremental shares 

1,710,513

3,257,861

3,735,059

Weighted average number of common shares, diluted 

101,877,142

83,318,901

84,856,840

Earnings per share, diluted

$

0.42

$

1.36

$

0.61

XML

Financial Instruments and Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2023

Financial Instruments and Fair Value Disclosures [Abstract]

Schedule of company's charter revenues

Charterer

2023

2022

2021

Cargill International SA

13%

19%

10%

Koch Shipping PTE LTD. Singapore

*

15%

*

*Less than 10%

Schedule of other fair value measurements

Description (in thousands of US Dollars)

December 31,

2022

Quoted Prices

in Active

Markets

(Level 1)

Non-recurring fair value measurements

Long-lived assets held for use

$

67,909

$

67,909

Total non-recurring fair value measurements

67,909

67,909

December 31,

2023

Quoted Prices

in Active

Markets

(Level 1)

Significant

Other

Observable

Inputs (Level 2)

Significant

Other

Observable

Inputs (Level 3)

Assets

Recurring fair value measurements

Investments in equity securities

$

20,729

20,729

$

$

Investments in related party

8,315

8,138

177

Interest rate swap, asset

129

129

Total recurring fair value measurements

$

29,173

$

28,867

$

129

$

177

Non-recurring fair value measurements

Equity method investments

$

4,519

$

$

4,519

$

Long-lived assets held for use

7,809

7,809

-

Total non-recurring fair value measurements

$

12,328

$

7,809

$

4,519

-

Liabilities

Recurring fair value measurements

Interest rate swap, liability

568

568

Warrant liability

6,332

6,332

Total recurring fair value measurements

6,900

6,332

568

-

XML

Basis of Presentation and General Information (Narrative) (Details)	12 Months Ended
	Dec. 31, 2023
Entity Information [Line Items]
Date of incorporation	Mar. 08, 1999
Diana Wilhelmsen Management Limited [Member]
Entity Information [Line Items]
Equity method investment, ownership percentage	50.00%

XML

Significant Accounting Policies (Narrative) (Details)	6 Months Ended	12 Months Ended
	Dec. 31, 2023 USD ($) $ / T $ / shares	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / T $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($)
Accounting Policies Disclosure [Line Items]
Accounts receivable, provision for doubtful accounts	$ 0	$ 0	$ 0
Impairment		$ 0	0	$ 0
Impairment Long Lived Asset Held For Use Statement Of Income Or Comprehensive Income Extensible Enumeration		Asset Impairment Charges
Time period for measurement of time charter rate, input for calculation of vessel impairments		10 years
Provision for Doubtful Accounts		$ 0	133,000	300,000
Accrued interest income	$ 1,206,000	1,206,000	578,000
Management fees to a related party (Note 4(a))		$ 1,313,000	$ 511,000	$ 1,432,000
Earnings Per Share Basic | $ / shares		$ 0.44	$ 1.42	$ 0.64
Earnings Per Share Diluted | $ / shares		$ 0.42	$ 1.36	$ 0.61
Salvage Value [Member]
Accounting Policies Disclosure [Line Items]
Scrap rate | $ / T	400		250
Change In Accounting Estimate Description	Effective July 1, 2023, the Company changed its estimated scrap rate of its vessels from $250 per lightweight ton to $400 per lightweight ton, calculated based on the average demolition prices in different markets, during the last 15 years.
Net income	$ 3,773,000
Earnings Per Share Basic | $ / shares	$ 0.04
Earnings Per Share Diluted | $ / shares	$ 0.04
Diana Wilhelmsen Management Limited [Member]
Accounting Policies Disclosure [Line Items]
Provision for Doubtful Accounts			$ 0	$ 300,000	$ 0
Building [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	55 years	55 years
Property and equipment, residual value	$ 0	$ 0
Furniture [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	5 years	5 years
Office Equipment [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	5 years	5 years
Vehicles [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	5 years	5 years
Car [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	10 years	10 years
Computer Software and Hardware [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	3 years	3 years
Vessels [Member]
Accounting Policies Disclosure [Line Items]
Property and equipment, estimated useful lives	25 years	25 years

XML

Transactions with Related Parties (Altair and Steamship) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Due to related parties, current	$ 759	$ 136
Commissions charged by a related party (Note 4(d))	1,313	511	$ 1,432
Altair Travel Agency S.A. [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	2,525	2,644	2,210
Due to related parties, current	62	136
Steamship Shipbroking Enterprises [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction	3,900	3,309	3,309
Due to related parties, current	697	0
Commissions charged by a related party (Note 4(d))	$ 906	$ 1,219	$ 712

XML

Equity Method Investments (DWM) (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Payments to acquire interest joint venture	$ 0	$ 0	$ 375,000
Equity method investments	15,769,000	506,000
Due to related parties, current	759,000	136,000
Gain/(loss) from equity method investments	(262,000)	894,000	(333,000)
Management fees to related party	85,486,000	72,033,000	74,756,000
Commissions charged by a related party (Note 4(d))	1,313,000	511,000	1,432,000
Due from related parties	149,000	216,000
Provision for credit loss	$ 0	133,000	300,000
Diana Wilhelmsen Management Limited [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	50.00%
Equity method investments	$ 734,000	506,000
Gain/(loss) from equity method investments	228,000	894,000	333,000
Management Agreements [Member] | Diana Wilhelmsen Management Limited [Member]
Related Party Transaction [Line Items]
Commissions charged by a related party (Note 4(d))	390,000	162,000	200,000
Due from related parties	25,000	216,000
Advances For Vessel Acquisitions And Vessels, Net [Member] | Diana Wilhelmsen Management Limited [Member] | Management Agreements [Member]
Related Party Transaction [Line Items]
Commissions charged by a related party (Note 4(d))	$ 19,000	272,000
Diana Wilhelmsen Management Limited [Member]
Related Party Transaction [Line Items]
Provision for credit loss		$ 0	$ 300,000	$ 0

XML

Equity Method Investments (Bergen Ultra LP) (Narrative) (Details) - USD ($) $ in Thousands			12 Months Ended
	Apr. 28, 2023	Feb. 14, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Mar. 30, 2023
Schedule Of Equity Method Investments [Line Items]
Equity method investments			$ 15,769	$ 506
Gain/(loss) from equity method investments			(262)	894	$ (333)
Due from related parties			149	216
Gain on deconsolidation of subsidiary			0	0	15,252
Revenues			262,098	289,972	214,203
Proceeds from convertible loan with limited partnership			25,189	$ 0	$ 0
Berger Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Proceeds from convertible loan with limited partnership	$ 25,189
Bergen Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method investments	3,675		4,700
Gain/(loss) from equity method investments			181
Gain on deconsolidation of subsidiary	$ 844
Ownership interest percent	25.00%
Equity method investments	$ 4,519
Bergen Joint Venture [Member] | Ecobulk AS [Member]
Schedule Of Equity Method Investments [Line Items]
Ownership interest percent	75.00%
Payments to acquire limited partnership interest	$ 11,025
Convertible Loan Agreement [Member] | Bergen Joint Venture [Member]
Schedule Of Equity Method Investments [Line Items]
Loan amount	$ 27,900
Ultramax [Member]
Schedule Of Equity Method Investments [Line Items]
Purchase price of vessel acquired		$ 27,900
Bergen [Member]
Schedule Of Equity Method Investments [Line Items]
Due from related parties			443
Bergen [Member] | Commission On Loan Guarantee [Member]
Schedule Of Equity Method Investments [Line Items]
Related party transaction, rate	0.80%
Interest and other income			28
Bergen [Member] | Administrative Service Agreement [Member]
Schedule Of Equity Method Investments [Line Items]
Related party, transaction amount	$ 15
Revenues			$ 10
Bergen [Member] | Loan Agreement With Nordea [Member]
Schedule Of Equity Method Investments [Line Items]
Loan amount						$ 15,400

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Equity Method Investment (Windward) (Narrative) (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) Vessels Item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2018 USD ($)
Schedule Of Equity Method Investments [Line Items]
Payments to acquire interest joint venture	$ 0	$ 0	$ 375,000
Equity Method Investments	15,769,000	506,000
Gain/(loss) from equity method investments (Note 4)	$ (262,000)	$ 894,000	$ (333,000)
Windward [Member]
Schedule Of Equity Method Investments [Line Items]
Number of unrelated companies entered into joint venture with | Item	2
Equity Method Investments	$ 10,063,000
Number of vessels to be constructed | Vessels	2
Gain/(loss) from equity method investments (Note 4)	$ (671,000)
Commitment amount				$ 25,000,000
Windward [Member] | Diana Energize [Member]
Schedule Of Equity Method Investments [Line Items]
Ownership interest percent	45.45%

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Equity Method Investments (Cohen) (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Schedule Of Equity Method Investments [Line Items]
Equity method investments	$ 15,769	$ 506
Cohen [Member] | Cebu [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	24.00%
Equity method investments	$ 272

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Investments in Related Parties and Other (OceanPal) (Narrative) (Details)						12 Months Ended
	Oct. 17, 2023 USD ($) shares	Jun. 09, 2023 USD ($) shares	Feb. 08, 2023 shares	Dec. 15, 2022 USD ($) shares	Sep. 20, 2022 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) Item $ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($)	Oct. 05, 2023 USD ($)	Feb. 01, 2023 USD ($)	Jan. 23, 2023 USD ($)
Related Party Transaction [Line Items]
Issuance of stock						$ 22,846,000	$ 5,322,000	$ 254,000
Gain on spin-off of OceanPal Inc.						0	0	15,252,000
Accrued dividends						3,000	100,000	69,000
Due to related parties, current						759,000	136,000
Cash and cash equivalents						101,592,000	76,428,000	110,288,000
Net gain recognized						1,502,000	589,000	0
Vessels						1,114,247,000	1,141,128,000	810,429,000
Purchase price of vessel									$ 17,998,000	$ 14,000,000	$ 15,080,000
Gain/(loss) from equity method investments						(262,000)	894,000	(333,000)
Investments in related party (Note 5(a))						8,318,000	$ 7,744,000
OceanPal [Member]
Related Party Transaction [Line Items]
Investments in related party (Note 5(a))						8,138,000
Realized loss						$ 1,022,000
Series B Preferred Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Number of votes of stockholders | Item						2,000
Maximum percentage of votes as a percentage of total votes						49.00%
Maximum total number of votes entitled to vote, including common stock or any other voting security						34.00%
Issuance of preferred stock, shares | shares						500,000	500,000
Series C Convertible Preferred Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Conversion price | $ / shares						$ 6.5
Cumulative preferred dividend accruing rate						8.00%
Preferred stock liquidation preference per share | $ / shares						$ 1,000
Issuance of preferred stock, shares | shares	10,000					207	10,000
Preferred stock voting rights						Series C preferred shares do not have voting rights unless related to amendments of the Articles of Incorporation that adversely alter the preference, powers or rights of the Series C Preferred Shares or to issue Parity Stock or create or issue Senior Stock.
Number of shares converted | shares	9,793
Number of shares converted | shares	3,649,474
Fair value of amount converted	$ 9,160,000
Difference between book value	$ 1,742,000
Percent of common stock owned	49.00%
Series C Preferred Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Accrued dividends						$ 3,000	$ 169,000
Net gain recognized						$ 21,000
Series D Preferred Stock [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Issuance of new shares | shares					25,000
Maximum percentage of votes as a percentage of total votes						49.00%
Cumulative preferred dividend accruing rate						7.00%
Par value | $ / shares					$ 0.01
Preferred stock liquidation preference per share | $ / shares						$ 1,000
Net gain recognized		$ 761,000		$ 589,000
Equity Securities, fair value		$ 10,761,000		$ 18,189,000
Investments, fair value					$ 17,600,000
Issuance of preferred stock, shares | shares			13,157		25,000
Number of shares acquired, part of consideration provided from sale asset | shares			13,157
Preferred stock, Shares outstanding | shares		13,157		25,000
Series C and Series D [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Accrued dividends						$ 801,000	917,000	$ 69,000
Series B and Series C Preferred Shares [Member] | OceanPal [Member]
Related Party Transaction [Line Items]
Preferred shares, par value							$ 7,744,000
Investments in related party (Note 5(a))						$ 180,000

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Investments in Related Parties and Other (Investment in Equity Securities) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Acquired equity securities	$ 20,729	$ 0
Unrealized gain on equity investment	2,813	$ 0	$ 0
Equity securities cost	$ 17,916

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Advances for Vessel Acquisitions and Vessels, net (Narrative) (Details) $ in Thousands											3 Months Ended	12 Months Ended
	Dec. 06, 2023 USD ($)	Feb. 14, 2023 USD ($)	Feb. 08, 2023 USD ($)	Feb. 01, 2023 USD ($) shares	Jan. 30, 2023 USD ($) shares	Sep. 20, 2022 USD ($)	Aug. 10, 2022 USD ($) shares	Jun. 13, 2022 USD ($) shares	Dec. 03, 2021 USD ($)	Jul. 15, 2021 USD ($)	Dec. 31, 2022 USD ($) Vessels shares	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 05, 2023 USD ($)	Jan. 23, 2023 USD ($)	Aug. 11, 2022 shares
Property, Plant and Equipment [Line Items]
Additions for improvements reclassified from other non-current assets													$ 1,370
Asset Acquisition [Line Items]
Number of warrants | shares																	18,487,393
Advances for vessel acquisitions											$ 24,123	$ 0	24,123
Issuance of common stock for vessel acquisitions												7,730	67,853
Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of vessel				$ 14,000											$ 17,998	$ 15,080
Gain (loss) from sale of vessels	$ 328		$ 4,995									5,323	2,850	$ 1,360
Deferred costs				405							16,302	15,278	16,302
Vessels' net book value				23,198							949,616	900,192	949,616	643,450
Vessels											1,141,128	1,114,247	1,141,128	810,429
Cash proceeds from sale of vessels				4,000								36,560	4,372	33,731
Non-cash investment acquired												10,000	0
Transfer to investments												$ 0	1,370	$ 441
Series D Preferred Stock [Member] | Melia
Disposal Groups, Including Discontinued Operations [Line Items]
Non-cash investment acquired				$ 10,000
Issuance of preferred stock, shares | shares				13,157
Baltimore
Disposal Groups, Including Discontinued Operations [Line Items]
Sale price of vessel								$ 22,000
Gain (loss) from sale of vessels						$ 2,850
Deferred costs								41
Vessels' net book value								16,722
Cash proceeds from sale of vessels								4,400
Baltimore | Series D Preferred Stock [Member]
Disposal Groups, Including Discontinued Operations [Line Items]
Non-cash investment acquired								$ 17,600
Issuance of preferred stock, shares | shares								25,000
Leonidas P.C.
Asset Acquisition [Line Items]
Additional predelivery expenses.										$ 927
Purchase price of vessel acquired										$ 22,000
Florida
Asset Acquisition [Line Items]
Additional predelivery expenses.									$ 1,504
Purchase price of vessel acquired									$ 59,275
Nine Ultramax vessels
Asset Acquisition [Line Items]
Total amount of equity interest							$ 110,000
Eight of nine Utramax vessels
Asset Acquisition [Line Items]
Advances for vessel acquisitions											195,810
Additional predelivery expenses.											4,364
Total amount of equity interest											$ 67,909
Issuance of stock, shares | shares											16,453,780
Number Of Vessels Delivered To Company | Vessels											8
Ninth of nine Ultramax vessels
Asset Acquisition [Line Items]
Additional predelivery expenses.													$ 555
Purchase price of vessel acquired					$ 23,955
Issuance of common stock for vessel acquisitions					$ 7,809
Issuance of common stock, shares | shares					2,033,613
Ultramax [Member]
Asset Acquisition [Line Items]
Purchase price of vessel acquired		$ 27,900
Asset acquisition price of acquisition expected							330,000
Amount to be paid in cash							$ 220,000
Ultramax [Member] | Bergen [Member]
Asset Acquisition [Line Items]
Purchase price of vessel acquired		27,900
Vessels disposal due to deconsolidation of subsidiary		$ 27,908
Ultramax [Member] | Newly Issued Common Shares, Issuable On Delivery Of Each Vessel [Member]
Asset Acquisition [Line Items]
Number of warrants | shares							18,487,393

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Advances for Vessel Acquisitions and Vessels, net (Schedule of Vessels, net in the accompanying consolidated balance sheets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Vessel Cost
Beginning balance	$ 1,141,128	$ 810,429
Additions for vessel acquisitions and improvements	61,682	358,504
Additions for improvements reclassified from other non-current assets		1,370
Vessel disposals	(60,655)	(29,175)
Vessel disposal due to deconsolidation of subsidiary	(27,908)
Ending balance	1,114,247	1,141,128
Accumulated Depreciation
Beginning balance	(191,512)	(166,979)
Vessel disposals	21,688	12,453
Depreciation for the year	(44,231)	(36,986)
Ending balance	(214,055)	(191,512)
Net Book Value
Beginning balance	949,616	643,450
Additions for vessel acquisitions and improvements	61,682	358,504
Additions for improvements reclassified from other non-current assets		1,370
Vessel disposal	(38,967)	(16,722)
Vessel disposal due to deconsolidation of subsidiary	(27,908)
Depreciation for the year	(44,231)	(36,986)
Ending balance	$ 900,192	$ 949,616

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Property and Equipment, net (Narrative) (Details) $ in Thousands	Jul. 06, 2023 USD ($)
DSS
Purchase price of land	$ 1,208

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Property and Equipment, net (Schedule of property and equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Movement in Property, Plant and Equipment [Roll Forward]
Property and Equipment, Beginning Balance	$ 28,936	$ 28,269
Additions in property and equipment	2,006	667
Property and Equipment, Ending Balance	30,942	28,936
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward]
Accumulated Depreciation, Property and Equipment, Beginning Balance	(5,973)	(5,427)
Depreciation for the year	(687)	(546)
Accumulated Depreciation, Property and Equipment, Ending Balance	(6,660)	(5,973)
Property, Plant and Equipment, Net, by Type [Abstract]
Property And Equipment Net, Beginning Balance	22,963	22,842
Additions in property and equipment	2,006	667
Depreciation for the year	(687)	(546)
Property And Equipment Net, Ending Balance	$ 24,282	$ 22,963

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Long-term Debt (Narrative I) (Details) $ in Thousands			12 Months Ended
	Jun. 29, 2023 USD ($)	Jun. 22, 2021 USD ($)	Dec. 31, 2023 USD ($) Vessels	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Gain on extinguishment of Debt			$ (748)	$ (435)	$ (980)
Minimum cash deposits required to be maintained			$ 20,000	$ 21,000	$ 16,500
Secured Debt [Member]
Debt Instrument [Line Items]
Number Of Vessels Collateral For Debt | Vessels			33
Long-term Debt, Weighted Average Interest Rate			7.30%	3.80%
Debt Instrument Collateral Amount			$ 699,014
Minimum cash deposits required to be maintained			$ 20,000	$ 21,000
8.375% Senior Unsecured Bond
Debt Instrument [Line Items]
Debt Instrument, Issuance Date			Jun. 22, 2021
Debt Instrument, Face Amount		$ 125,000
Debt Instrument, Interest Rate, Stated Percentage		8.375%
Fees paid	$ 208
Gain on extinguishment of Debt	(159)
Repurchased bonds	5,851
Nominal value of bond repurchased	$ 5,900
8.375% Senior Unsecured Bond | Officers And Directors
Debt Instrument [Line Items]
Proceeds from Issuance of Unsecured Debt		$ 21,000
8.375% Senior Unsecured Bond | June 2024 to May 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			103.35%
8.375% Senior Unsecured Bond | June 2025 to December 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			101.675%
8.375% Senior Unsecured Bond | After December 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage			100.00%

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Long-term Debt (Narrative II) (Details)						1 Months Ended				12 Months Ended
	Jun. 27, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jul. 29, 2021 USD ($)	Mar. 19, 2015 USD ($)	Dec. 19, 2014 USD ($)	Apr. 30, 2023 USD ($)	Feb. 28, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jul. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) Item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Loan expenses and other										$ 308,000	$ 415,000	$ 307,000
Outstanding balance								$ 530,120,000		516,957,000	530,120,000
Gain on extinguishment of Debt										(748,000)	$ (435,000)	$ (980,000)
BNP Paribas [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt					$ 53,500,000
Debt Instrument, Periodic Payment, Principal										1,574,000
Debt Instrument, Balloon Payment										$ 23,596,000
Debt Instrument, Maturity Date					Nov. 30, 2021					May 19, 2024
Repayment of secured loan agreement						$ 75,193,000
Gain on extinguishment of Debt						$ (107,000)
BNP Paribas [Member] | Secured Debt [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage										2.50%
BNP Paribas [Member] | Secured Debt [Member] | Second Agreement [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt										$ 75,000,000
Debt Instrument, Periodic Payment, Principal										1,562,500
Debt Instrument, Balloon Payment										$ 43,750,000
Debt Instrument, Maturity Date										Jul. 17, 2023
BNP Paribas [Member] | Secured Debt [Member] | Second Agreement [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage										2.30%
Nordea Bank AB, London Branch [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt	$ 22,500,000		$ 460,000	$ 93,080,000
Debt Instrument, Number of installments | Item										20
Debt Instrument, Frequency of Periodic Payments										quarterly
Debt Instrument, Periodic Payment, Principal										$ 1,125,000
Debt Instrument, Maturity Date				Mar. 19, 2021						Jun. 27, 2028
Repayment of secured loan agreement	20,934,000						$ 8,134,000		$ 4,786,000
Outstanding balance	20,934,000
Gain on extinguishment of Debt	$ (220,000)
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | SOFR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage										2.25%
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | Loan Agreement - 9 Ultramax Vessels [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt		$ 197,236,000
Debt Instrument, Frequency of Periodic Payments										quarterly
Debt Instrument, Periodic Payment, Principal										$ 3,719,000
Debt Instrument, Balloon Payment										$ 100,912,000
Debt Instrument, Maturity Date										Oct. 11, 2027
Repayment of secured loan agreement								$ 21,937,000
Debt Instrument, Face Amount		$ 200,000,000
Loan fees										$ 2,069,000
Loan expenses and other										$ 191,000
Nordea Bank AB, London Branch [Member] | Secured Debt [Member] | Loan Agreement - 9 Ultramax Vessels [Member] | SOFR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage										2.25%

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Long-term Debt (Narrative III)) (Details)											12 Months Ended
	Jul. 06, 2023 USD ($)	Jun. 29, 2023 USD ($)	Jun. 26, 2023 USD ($)	Apr. 19, 2023 USD ($)	Mar. 14, 2023 USD ($)	Aug. 22, 2022 USD ($)	May 20, 2021 USD ($)	May 22, 2020 USD ($)	Mar. 14, 2019 USD ($)	Jan. 04, 2017 USD ($)	Dec. 31, 2023 USD ($) Installments Item	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Apr. 12, 2023 USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt (Note 8)											$ (748,000)	$ (435,000)	$ (980,000)
Loss from interest rate swap											(439,000)	0	$ 0
Fair value of derivatives											129,000	0
Fair value of derivatives											$ 568,000	$ 0
ABN AMRO Bank N.V. [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt								$ 52,885,000
Repayment of secured loan agreement			$ 68,677,000
Loss on extinguishment of debt (Note 8)		$ (237,000)
ABN AMRO Bank N.V. [Member] | Secured Debt [Member] | First Tranche [Member]
Debt Instrument [Line Items]
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 800,000
Debt Instrument, Balloon Payment											$ 9,000,000
Debt Instrument, Maturity Date											Jun. 28, 2024
ABN AMRO Bank N.V. [Member] | Secured Debt [Member] | First Tranche [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.25%
ABN AMRO Bank N.V. [Member] | Secured Debt [Member] | Second Tranche [Member]
Debt Instrument [Line Items]
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 994,000
Debt Instrument, Balloon Payment											$ 13,391,000
Debt Instrument, Maturity Date											Jun. 28, 2024
ABN AMRO Bank N.V. [Member] | Secured Debt [Member] | Second Tranche [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.40%
ABN AMRO Bank N.V. [Member] | Secured Debt [Member] | Second Agreement [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt							$ 91,000,000
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 1,980,000
Debt Instrument, Balloon Payment											$ 13,553,000
Debt Instrument, Maturity Date											May 20, 2026
Repayment of secured loan agreement						$ 30,791,000
ABN AMRO Bank N.V. [Member] | Secured Debt [Member] | Second Agreement [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.15%
ABN AMRO Bank N.V. [Member] | Secured Debt [Member] | Third Agreement [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Maximum annual increase (decrease) to basis rate						10.00%
Export-Import Bank of China [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt										$ 57,240,000
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 954,000
Debt Instrument, Maturity Date											Jan. 04, 2032
Export-Import Bank of China [Member] | Secured Debt [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.45%
DNB Bank ASA [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt									$ 19,000,000
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 477,300
Debt Instrument, Balloon Payment											$ 9,454,000
Debt Instrument, Maturity Date											Mar. 14, 2024
Repayment of secured loan agreement					$ 11,841,000
Loss on extinguishment of debt (Note 8)					$ (25,000)
DNB Bank ASA [Member] | Secured Debt [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage									2.40%
DNB Bank ASA [Member] | Secured Debt [Member] | Second Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Number of installments | Item											26
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 3,846,000
Debt Instrument, Maturity Date											Dec. 27, 2029
Notional amount	$ 30,000,000
Notional amount, percent of loan	30.00%
Quarterly amortization amount	$ 1,154,000
Fixed interest rate related to the interest rate derivative	4.268%
Interest rate swap, fair value											$ 439,000
Loss from interest rate swap											$ (439,000)
Loan amount			$ 100,000,000
DNB Bank ASA [Member] | Secured Debt [Member] | Second Agreement [Member] | SOFR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.20%
Danish Ship Finance A/S
Debt Instrument [Line Items]
Proceeds From Issuance Of Secured Debt				$ 100,000,000
Debt Instrument, Number of installments | Installments											20
Debt Instrument, Frequency of Periodic Payments											quarterly
Debt Instrument, Periodic Payment, Principal											$ 3,301,000
Debt Instrument, Balloon Payment											$ 33,972,000
Loan amount														$ 100,000,000
Danish Ship Finance A/S | Secured Debt [Member] | SOFR [Member]
Debt Instrument [Line Items]
Loan Margin Percentage											2.20%

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Long-term Debt (Schedule of Long-term Debt Instruments) (Details) - USD ($)	Dec. 31, 2023	Apr. 12, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Senior unsecured bond	$ 119,100,000		$ 125,000,000
Secured long-term debt	397,857,000		405,120,000
Total	516,957,000		530,120,000
Less: Deferred financing costs	(6,314,000)		(7,609,000)
Long-term debt, net of deferred financing costs	510,643,000		522,511,000
Less: Current portion of long term debt, net of deferred financing costs current	(49,512,000)		(91,495,000)
Long-term debt, excluding current maturities	$ 461,131,000		$ 431,016,000
DANISH [Member]
Debt Instrument [Line Items]
Loan amount		$ 100,000,000

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Long-term Debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Maturities of Long-term Debt [Abstract]
Year 1	$ 51,783
Year 2	51,783
Year 3	170,883
Year 4	152,696
Year 5	62,026
Year 6 and thereafter	27,786
Total	$ 516,957	$ 530,120

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Finance Liabilities (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 06, 2022 USD ($)	Aug. 17, 2022 USD ($) Vessels	Mar. 29, 2022 USD ($)
Property, Plant and Equipment [Line Items]
Finance Lease Liability	$ 132,129	$ 140,931
Lease obligation issuance costs	$ 1,724	$ 3,302	$ 7,594
Weighted average remaining lease term	7 years 8 months 12 days
Average interest rate	4.83%
Sublease Income	$ 34,560
Florida 2022 Built Capesize Vessel [Member]
Property, Plant and Equipment [Line Items]
Finance Lease Liability						$ 50,000
Term for bareboat charter party						10 years
Lease obligation to purchase vessel						$ 16,350
New Orleans And Santa Barbara Vessels [Member]
Property, Plant and Equipment [Line Items]
Finance Lease Liability					$ 66,400
Term for bareboat charter party					8 years
Number of sale and leaseback agreements | Vessels					2
New Orleans Vessel [Member]
Property, Plant and Equipment [Line Items]
Lease obligation to purchase vessel					$ 13,000
Santa Barbara Vessel [Member]
Property, Plant and Equipment [Line Items]
Lease obligation to purchase vessel					$ 13,000
DSI Andromeda [Member]
Property, Plant and Equipment [Line Items]
Finance Lease Liability				$ 29,850
Term for bareboat charter party				10 years
Lease obligation to purchase vessel				$ 8,050

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Finance Liabilities (Analysis of Finance Liabilities on Balance Sheets) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Finance Liabilities [Abstract]
Total finance liabilities	$ 133,337	$ 142,370
Finance liabilities, net of deferred financing costs	132,129	140,931
Less: Current finance liabilities, net of deferred financing costs, current	(9,221)	(8,802)
Finance liabilities, excluding current maturities	122,908	132,129
Lessee Lease Description [Line Items]
Less: Deferred financing costs	(6,314)	(7,609)
Finance Liabilities [Member]
Lessee Lease Description [Line Items]
Less: Deferred financing costs	$ (1,208)	$ (1,439)

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Finance Liabilities (Annual Lease Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Finance Liabilities [Abstract]
Year 1	$ 9,437
Year 2	9,808
Year 3	10,224
Year 4	10,661
Year 5	11,151
Year 6 and thereafter	82,056
Total finance liabilities	$ 133,337	$ 142,370

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Commitments and Contingencies (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Related Party Transaction Domain
Loss Contingencies [Line Items]
Insurance maximum amount	$ 1,000,000
Bergen [Member] | Loan Agreement With Nordea [Member]
Loss Contingencies [Line Items]
Total debt outstanding	$ 14,778

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Commitments and Contingencies (Schedule of fixed non cancelable time charter contracts) (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Year 1	$ 127,297
Year 2	24,629
Year 3	9,454
Year 4	725
Total	$ 162,105

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Capital Stock and Changes in Capital Accounts (Narrative stocks) (Details)												1 Months Ended			3 Months Ended	12 Months Ended
	Dec. 04, 2023 $ / shares shares	Sep. 08, 2023 USD ($) $ / shares shares	Jul. 10, 2023 USD ($) $ / shares shares	Jun. 09, 2023 USD ($) $ / shares	Mar. 20, 2023 USD ($) $ / shares	Jan. 30, 2023 USD ($) $ / shares shares	Dec. 15, 2022 USD ($) $ / shares	Aug. 19, 2022 $ / shares	Jun. 17, 2022 $ / shares	Mar. 21, 2022 $ / shares	Nov. 29, 2021 USD ($)	Dec. 31, 2021 $ / shares shares	Aug. 31, 2021 $ / shares shares	Feb. 28, 2021 $ / shares shares	Dec. 31, 2022 $ / shares shares	Dec. 31, 2023 USD ($) shares $ / shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) shares	Dec. 14, 2023 USD ($) $ / shares shares	Aug. 11, 2022 shares	Jun. 22, 2021 Item
Class Of Stock [Line Items]
Cash dividends on preferred stock | $																$ 5,769,000	$ 5,769,000	$ 5,769,000
Proceeds from issuance of preferred stock, net of expenses | $																0	0	254,000
Payments for repurchase of common stock | $																0	3,799,000	45,369,000
Cash dividend | $		$ 13,041,000	$ 12,424,000		$ 15,965,000											64,276,000	79,812,000	8,820,000
Dividends in stock, value | $																		40,509,000
Dividends Paid-in-kind | $				$ 10,761,000			$ 18,189,000				$ 40,509,000					10,761,000	18,189,000
Issuance of stock | $																22,846,000	5,322,000	254,000
Dividends Paid-in-kind, per share | $ / shares				$ 0.10
Warrants, Exercise Price Per Warrant | $ / shares																			$ 4
Warrants, fair value | $																6,332,000			$ 7,914,000
Warrants, fair value, per warrant | $ / shares																			$ 0.35
Gain on warrants | $																$ (1,583,000)	$ 0	0
Number of warrants exercised																0
Value of warrants | $																$ 7,914,000
Number of warrants outstanding															1		1		22,613,070
Number of shares permitted to purchase from warrants																			1	9
Additional bonus share amount																			0.5
Proceeds from warrant exercises | $																	$ 0
If All Warrants Are Exercised [Member]
Class Of Stock [Line Items]
Issuance of new shares																33,919,605
Issuance of stock | $																$ 100,741,000
Proceeds from warrant exercises | $																90,452,000
Series B Preferred Stock [Member]
Class Of Stock [Line Items]
Cash dividends on preferred stock | $																5,769,000	$ 5,769,000	$ 5,769,000
Series D Preferred Stock [Member] | Mrs. Semiramis Paliou
Class Of Stock [Line Items]
Cash dividends on preferred stock | $																$ 0
Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized															25,000,000	50,000,000	25,000,000
Preferred stock, Par value per share | $ / shares															$ 0.01	$ 0.01	$ 0.01
Preferred Stock [Member] | Series A Participating Preferred Stock
Class Of Stock [Line Items]
Preferred stock, Shares authorized															1,000,000	1,000,000	1,000,000
Issuance of preferred stock, shares															0	0	0
Preferred stock, Shares outstanding															0	0	0
Preferred Stock [Member] | Series B Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized															5,000,000	5,000,000	5,000,000
Preferred stock, Par value per share | $ / shares															$ 0.01	$ 0.01	$ 0.01
Issuance of preferred stock, shares															2,600,000	2,600,000	2,600,000
Preferred stock, Shares outstanding															2,600,000	2,600,000	2,600,000
Shares issued price per share | $ / shares															$ 25.00	$ 25.00	$ 25.00
Preferred stock liquidation preference per share | $ / shares															$ 25.00	$ 25.00	$ 25.00
Preferred stock voting rights																Holders of Series B Preferred Shares have no voting rights other than the ability, subject to certain exceptions, to elect one director if dividends for six quarterly dividend periods (whether or not consecutive) are in arrears and certain other limited protective voting rights.
Preferred stock dividend rate percentage																8.875%
Preferred stock dividend rate per dollar amount | $ / shares																$ 2.21875
Preferred stock, Redemption price per share | $ / shares																$ 25.00
Preferred Stock [Member] | Series C Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized															10,675	10,675	10,675
Issuance of preferred stock, shares															10,675	10,675	10,675
Preferred stock, Shares outstanding															10,675	10,675	10,675
Shares issued price per share | $ / shares															$ 0.01	$ 0.01	$ 0.01
Preferred stock voting rights																The Series C Preferred Stock votes with the common shares of the Company, and each share entitles the holder thereof to 1,000 votes on all matters submitted to a vote of the shareholders of the Company.
Preferred stock number of voting rights																1,000
Preferred Stock [Member] | Series D Preferred Stock [Member]
Class Of Stock [Line Items]
Preferred stock, Shares authorized															400	400	400
Issuance of new shares																		400
Preferred Stock [Member] | Series D Preferred Stock [Member] | Mrs. Semiramis Paliou
Class Of Stock [Line Items]
Preferred stock, Par value per share | $ / shares															$ 0.01	$ 0.01	$ 0.01
Issuance of preferred stock, shares															400	400	400
Preferred stock, Shares outstanding															400	400	400
Preferred stock voting rights																The Series D Preferred Stock vote with the common shares of the Company, and each share of the Series D Preferred Stock entitles the holder thereof to up to 200,000 votes,
Preferred stock number of voting rights | Item																					200,000
Percent of total number of votes entitled to vote on any matter put to shareholders																36.00%
Percent of total number of votes entitled to be cast on matters out to shareholders																36.00%
Common Stock [Member]
Class Of Stock [Line Items]
Issuance of new shares																6,628,493	877,581
Shares issued price per share | $ / shares						$ 3.84									$ 4.13		$ 4.13
Stock repurchased shares												3,529,411	3,333,333	6,000,000			820,000	12,862,744
Shares repurchase price per share | $ / shares												$ 4.25	$ 4.50	$ 2.50			$ 4.56
Payments for repurchase of common stock | $																	$ 3,799,000	$ 45,369,000
Proceeds from issuance of stock, net of expenses | $						$ 0
Dividend paid on common stock per share | $ / shares	$ 0.15	$ 0.15	$ 0.15		$ 0.15		$ 0.175	$ 0.275	$ 0.25	$ 0.20
Common Stock Dividends, Shares	4,831,777	831,672	965,044
Issuance of stock | $																$ 66,000	$ 9,000
Dividends Paid-in-kind, per share | $ / shares							$ 0.18
Issuance of common stock for vessel acquisitions, shares (Notes 6 and 11(e))						2,033,613									16,453,780	2,033,613	16,453,780
Common Stock [Member] | ATM Program [Member]
Class Of Stock [Line Items]
Issuance of new shares																	877,581
Shares issued price per share | $ / shares															$ 6.27		$ 6.27
Issuance of stock | $																	$ 5,322,000

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Capital Stock and Changes in Capital Accounts (Narrative incentive plan) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock capital shares reserved for future issuance	13,444,759
Compensation cost on restricted stock	$ 9,938	$ 9,282	$ 7,442
Unrecognized cost for unvested restricted shares	$ 14,880	$ 16,873
Total compensation cost not yet recognized, Period for recognition	1 year 11 months 12 days

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Capital Stock and Changes in Capital Accounts (Narrative warrants) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 14, 2023	Aug. 11, 2022
Share-based Arrangements with Employees and Nonemployees
Number of warrants			18,487,393
Number of shares permitted to purchase from warrants		1	9
Price per share			$ 0.01
Number of warrants outstanding	1	22,613,070
Proceeds from warrant exercises	$ 0

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Capital Stock and Changes in Capital Accounts (Schedule of share-based compensation restricted stock and restricted stock units activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Non vested restricted common stock, beginning balance	7,866,589	9,514,649	2,423,012
Granted	1,750,000	1,470,000	8,260,000
Vested	(2,822,753)	(3,118,060)	(1,168,363)
Non vested restricted common stock, ending balance	6,793,836	7,866,589	9,514,649
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, beginning balance	$ 3.07	$ 2.83	$ 2.95
Weighted Average Grant Date Fair Value, Granted	4.54	4.15	2.85
Weighted Average Grant Date Fair Value, Vested	3.05	2.86	3.20
Weighted Average Grant Date Fair Value, ending balance	$ 3.45	$ 3.07	$ 2.83

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Voyage Expenses (Schedule of voyage expenses analysis) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Voyage Expenses [Abstract]
Commissions	$ 13,331	$ 14,412	$ 10,794
(Gain)/loss from bunkers	(474)	(8,100)	(5,955)
Port expenses and other	764	630	731
Total	$ 13,621	$ 6,942	$ 5,570

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Interest and Finance Costs (Schedule of interest and finance costs) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest and Finance Costs [Abstract]
Interest expense, debt	$ 39,617	$ 21,983	$ 18,067
Finance liabilities interest expense	6,786	2,735	0
Amortization of debt and finance liabilities issuance costs	2,620	2,286	1,865
Loan and other expenses	308	415	307
Interest expense and finance costs	$ 49,331	$ 27,419	$ 20,239

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Earnings per Share (Narrative) (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Abstract]
Incremental shares	1,710,513	3,257,861	3,735,059

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Earnings per Share (Schedule of earnings per share, basic and diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Abstract]
Net income	$ 49,844	$ 119,063	$ 57,394
Dividends on series B preferred shares	(5,769)	(5,769)	(5,769)
Net income attributable to common stockholders	$ 44,075	$ 113,294	$ 51,625
Weighted average number of common shares, basic	100,166,629	80,061,040	81,121,781
Earnings per share, basic	$ 0.44	$ 1.42	$ 0.64
Unrealized gain from warrants (Note 11(g))	$ (1,583)	$ 0	$ 0
Adjusted net income attributable to common stockholders	$ 42,492	$ 113,294	$ 51,625
Incremental shares	1,710,513	3,257,861	3,735,059
Weighted average number of common shares, diluted	101,877,142	83,318,901	84,856,840
Earnings per share, diluted	$ 0.42	$ 1.36	$ 0.61

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Income Taxes (Narrative) (Details)	Dec. 31, 2023
Income Tax Uncertainties [Abstract]
Shipping Income Percentage	50.00%
Tax Rate On US Source Shipping Income	4.00%

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Financial Instruments and Fair Value Disclosures (Narrative) (Details) - USD ($) $ in Thousands						12 Months Ended
	Jun. 09, 2023	Feb. 08, 2023	Feb. 01, 2023	Dec. 15, 2022	Sep. 20, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value						$ 119,100	$ 125,000
Gain on related party investments (Note 5(a))						1,502	589	$ 0
Non-cash investment acquired						10,000	$ 0
OceanPal [Member] | Series D Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain on related party investments (Note 5(a))	$ 761			$ 589
Equity Securities, fair value	10,761			18,189
Issuance of new shares					25,000
Investments, fair value					$ 17,600
Number of shares acquired, part of consideration provided from sale asset		13,157
Non-cash investment acquired		$ 10,000
Melia [Member] | Series D Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-cash investment acquired			$ 10,000
Level 2 [Member] | OceanPal [Member] | Series D Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain on related party investments (Note 5(a))	761			589
Equity Securities, fair value	$ 10,761			$ 18,189
8.375% Senior Unsecured Bond.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value						119,100
8.375% Senior Unsecured Bond. | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value						$ 118,505

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Financial Instruments and Fair Value Disclosures (Schedule of company's charter revenues) (Details) - Customer Concentration Risk - Revenue Benchmark	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Minimum
Concentration Risk [Line Items]
Percentage of charter revenues	10.00%	10.00%
Cargill International SA
Concentration Risk [Line Items]
Percentage of charter revenues	0.13%	0.19%	0.10%
Koch Shipping PTE LTD. Singapore
Concentration Risk [Line Items]
Percentage of charter revenues		0.15%

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Financial Instruments and Fair Value Disclosures (Schedule of other fair value measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 14, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in equity securities	$ 20,729		$ 0
Equity method investments	15,769		506
Warrant liability	6,332	$ 7,914
Recurring fair value measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in equity securities	20,729
Investment in related party	8,315
Interest rate swap, asset	129
Total fair value measurements	29,173
Interest rate swap, liability	568
Warrant liability	6,332
Total recurring fair value measurements	6,900
Recurring fair value measurements [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in equity securities	20,729
Investment in related party	8,138
Total fair value measurements	28,867
Warrant liability	6,332
Total recurring fair value measurements	6,332
Recurring fair value measurements [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap, asset	129
Total fair value measurements	129
Interest rate swap, liability	568
Total recurring fair value measurements	568
Recurring fair value measurements [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in related party	177
Total fair value measurements	177
Non recurring fair value measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity method investments	4,519
Long-lived assets held for use			67,909
Total fair value measurements	12,328
Non recurring fair value measurements [Member] | Long Lived Assets Held For Use
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held for use	7,809		67,909
Non recurring fair value measurements [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held for use			67,909
Total fair value measurements	7,809
Non recurring fair value measurements [Member] | Level 1 [Member] | Long Lived Assets Held For Use
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held for use	7,809		$ 67,909
Non recurring fair value measurements [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity method investments	4,519
Total fair value measurements	$ 4,519

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Subsequent Events (Narrative) (Details)								3 Months Ended	12 Months Ended
	Mar. 06, 2024 EUR (€)	Feb. 15, 2024 USD ($)	Feb. 08, 2024 USD ($) Item	Jan. 24, 2024 EUR (€)	Jan. 18, 2024 EUR (€)	Jan. 15, 2024 USD ($) $ / shares	Feb. 14, 2023 USD ($)	Apr. 01, 2024 USD ($) shares	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Feb. 23, 2024 $ / shares	Feb. 22, 2024 USD ($)	Jan. 19, 2024 USD ($)	Oct. 05, 2023 USD ($)	Feb. 01, 2023 USD ($)	Jan. 23, 2023 USD ($)
Subsequent Event [Line Items]
Number of warrants exercised | shares									0
Proceeds from warrant exercises										$ 0
Sale price of vessel															$ 17,998,000	$ 14,000,000	$ 15,080,000
Additions in property and equipment									$ 2,006,000	667,000	$ 1,600,000
Payments to acquire interest joint venture									$ 0	$ 0	$ 375,000
Ultramax [Member]
Subsequent Event [Line Items]
Purchase price of vessel acquired							$ 27,900,000
Subsequent Events.
Subsequent Event [Line Items]
Number of warrants exercised | shares								3,051,471
Issuance of new shares | shares								4,597,192
Proceeds from warrant exercises								$ 12,206,000
Payment to acquire plot of land | €	€ 1,300,000				€ 310,000,000
Number of vessels in agreement to acquire | Item			2
Percent of paid in advance of purchase price		17.50%
Dividends payable amount per share | $ / shares												$ 0.075
Commitment amount			$ 46,000,000
Purchase price of vessels		$ 8,050,000
Subsequent Events. | Diana Energize [Member]
Subsequent Event [Line Items]
Payments to acquire interest joint venture | €				€ 50,000,000
Ownership interest percent				45.87%
Subsequent Events. | Artemis [Member]
Subsequent Event [Line Items]
Sale price of vessel														$ 12,990,000
Subsequent Events. | Houston [Member]
Subsequent Event [Line Items]
Sale price of vessel													$ 23,300,000
Series B Preferred Stock [Member] | Subsequent Events.
Subsequent Event [Line Items]
Preferred Stock, Dividends per share | $ / shares						$ 0.5546875
Dividends, Preferred Stock						$ 1,442,000