DIVIDEND POLICY

While the company has historically paid a high dividend, in 2008 the board of directors decided to suspend dividend payments based on the overall assessment of the world financial and economic stability and the risks that such a situation may present to the investment program and overall business of the company.

Declaration and payment of any dividend is subject to the discretion of our board of directors. The timing and amount of dividend payments will be dependent upon our earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in our credit facilities, the provisions of Marshall Islands law affecting the payment of distributions to stockholders and other factors. The payment of dividends is not guaranteed or assured, and may be reinstated, discontinued or modified at any time at the discretion of our board of directors. Our ability to pay dividends may be limited by the amount of cash we can generate from operations following the payment of fees and expenses and the establishment of any reserves as well as additional factors unrelated to our profitability. 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 and to make dividend payments. See "Risk Factors-Risks Inherent in Our Business" as included in our IPO Prospectus for a discussion of the risks related to our ability to pay dividends.