| I.   | "The Borrower"  | :       | Top Ships Inc. of the Marshall Islands, Trust Company Complex, Ajeltake Road, Ajeltake Islands, Majuro, Marshall  IslandsMH96960, duly represented by Mr. Alexandros Tsirikos, CFO. |
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| II.  | "The Lender"    |  : | Cape Manuel Shipping Company Limited, of 284 Archbishop Makarios Ave, Limassol, Cyprus duly represented by Mr. Michael McBride, Director.                                                     |
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| "the Loan" | means the principal amount of €2,500,000 (Two million five hundred ). |
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|       | Advance 1: € 1,000,000 (One Million) on the 29th July 2009            |
|       | Advance 2: € 1,500,000 (One Million Five Hundred) on August 5th 2009. |

| 1. | Purpose of Loan |
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| 2. | Repayment |
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| 2.1 | The Borrower undertakes to repay the principal amount of the Loan within three months of its receipt. |
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| 2.2 | In case, however, the Borrower collects any funds such as claims proceed then the Borrower is obliged to pay these funds to the Lender in settlement or part payment of the Loan. |
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| 3. | Interest Rate - Default Interest |
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| 3.1 | The rate of interest applicable to the Loan shall be nine per cent (9%) per annum. |
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| 3.2 | In the event of failure by the E3orrower to settle the Loan on the appointed date, the Borrower shall pay interest on such amount on demand from the date of such default upto the date of actual payment (as well after as before judgment) at the default rate imposed by the Greek Courts. Any interest not paid when due shall be compounded every three months. |
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| 4. | Payments |
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| 4.1 | All payments to be made by the Borrower shall be made at the free disposal of the Lender in freely transferable Euros, by remitting funds to the account of the Lender or at such account as the Lender may have specified for such purpose. |
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| 4.2 | All payments by the Borrower under this Agreement (whether in respect of principal, interest, or otherwise) shall be made in full, without any set-off, counterclaim or retention and free and clear of and without any deduction or withholding in respect of duties, taxes, charges, levies, impost duties or fees of any nature. |
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| 4.3 | In the event that the Borrower or the Lender is required by law to make any such deduction or withholding from any payment then the Borrower shall forthwith pay to the Lender such additional amounts as will result in the immediate receipt by the Lender of the full amount which would have been received hereunder had no deduction or withholding been made. The obligations set forth in this Section shall survive the termination of this Agreement and the repayment of the Loan. |
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| 5. | Representations and warranties of the Borrower |
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| 5.1 | this Agreement constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with Its terms. All consents, licenses, approvals, registrations, authorizations or declarations in the jurisdiction to which the Borrower is subject required to enable it to borrow hereunder and lawfully to enter into and perform and discharge its duties and liabilities under this Agreement have been obtained or made and are in full force and effect. |
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| 5.2 | the signing and delivery of this Agreement and performance of any of the transactions contemplated in it will not contravene or constitute a default under any provision contained in any agreement, instrument, law, judgment, order, licence, permit or consent by which the Borrower or any of its assets is bound or affected. |
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| 5.3 | no condition, event or act has occurred and is continuing or would result from the making of the Loan which constitutes an Event of Default or a Default; |
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| 5.4 | the Borrower is not in default under any agreement to which it is a party or by which it may be bound and no litigation, arbitration or administrative proceedings are presently current or pending, or to the knowledge of the Borrower, threatened, which in any such case would have an adverse effect upon the Borrower to perform and observe the obligations and provisions binding upon him under this Agreement. |
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| 6. | Default |
|----|---------|

|   | (a) | If the Borrower fails to fulfill payment obligations arising hereunder and such failure continues to be unremedied for five days; |
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|   | (b) | If the Borrower fails to observe or perform any of its obligations under this Agreement and such default continues to be unremedied for five days; |
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|   | (c) | Any representation, warranty or statement which is made or deemed to have been made by the Borrower in this Agreement or in any certificate, statement, or notice provided under or in connection with this Agreement proves to be incorrect in any respect which the Lender deems material; |
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|   | (d) | If the Borrower fails to fulfil its obligations in respect of any other indebtedness for borrowed money to the extent that such indebtedness becomes repayable or capable of being declared repayable prior to its stated maturity; |
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|   | (e) | If an order is made or resolution passed for the liquidation or the winding up of the Borrower other than for the purposes of amalgamation or reconstruction agreed to in writing by the Lender or if the Borrower makes or seeks to make any composition or arrangement with its creditors; |
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|   | (f) | If an encumbrancer takes possession of, or trustee, administrator, receiver or other similar officer is appointed in respect of all or any part of the business or assets of the Borrower or distress or any form of execution is levied or enforced upon any property of the Borrower; |
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|   | (g) | If the Borrower ceases or threatens to cease to carry on its business or substantially the whole of its business; |
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|   | (h) | If the Borrower becomes or is declared insolvent or bankrupt; |
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| 7. | Fees |
|----|------|

| 7.1 | The Borrower shall pay to the Lender an arrangement fee of EURO € 375,000.  Payment of the arrangement fee shall be made together with the repayment of the Loan. The arrangement fee shall bear interest at the rate provided herein from the date of execution of this Agreement. |
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| 7.2 | The Borrower shall pay all legal fees and expenses incurred in connection with the preparation, negotiation and conclusion of this Agreement. |
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| 8. | Stamp Duties |
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| 9. | No Waiver |
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| 10. | Severance |
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| 11. | Notices |
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| 12. | Assignment |
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| 12.1 | Without prior written approval of the Lender (which the Lender may refuse at his absolute discretion) the Borrower shall not assign or transfer any rights and obligations under this Agreement. |
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| 12.2 | The Lender may at any time at its discretion without the prior consent of the Borrower assign or transfer in whole or in part to a third party any rights, accessory rights and claims already existing or in future arising under this Agreement. |
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| 13. | Confidentiality |
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| 13.1 | Each of the parties hereto agree and undertake to keep confidential any documentation and any confidential information concerning the business, affairs, etc. which comes into its possession during this Agreement and not to use any such documentation information for any purpose other than for which it was provided. |
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| 13.2 | The Borrower acknowledges and accepts that the Lender may be required by law or that it may be appropriate for the Lender to disclose information and deliver documentation relating to the Borrower and the transactions and matters in relation to this Agreement to governmental or regulatory agencies and authorities. |
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| 13.3 | The Borrower acknowledges and accepts that in case of occurrence of any of the Events of Default the Lender may disclose information and deliver documentation relating to the Borrower arid the transactions and matters in relation to this Agreement to third parties (including in particular any technical advisors, accountants, any legal advisors) io the extend that this is necessary for the enforcement or the contemplation of enforcement of the Lender's rights or for any other purpose for which in the opinion of the Lender, such disclosure should be useful or appropriate for the interests of the Lender or otherwise and the Borrower expressly authorises any such disclosure and delivery. |
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| 13.4 | The Borrower acknowledges and accepts that the Lender may be prohibited or it may be inappropriate for the Lender to disclose information to the Borrower by reason of law or duties of confidentiality owed or to be owed to other persons. |
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| 14. | Law and Jurisdiction |
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| 14.1 | This Agreement shall be governed by and construed in accordance with Cyprus Law. |
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| 14.2 | For the exclusive benefit of the Lender, the Borrower hereby irrevocably submits to the non-exclusive jurisdiction of the Courts of Cyprus in respect of any disputes which may arise out or in connection with this Agreement. The foregoing shall not limit the right of the Lender to start proceedings in any other country. |
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| 14.3 | If it is decided by the Lender that any such proceedings should be commenced in any other country, then any objections as to the jurisdiction or any claim as to the inconvenience of the forum is hereby waived by the Borrower and it is agreed and undertaken by the Borrower to instruct lawyers in that country to accept service of legal process and not to contest the validity of such proceedings as far as the jurisdiction of the court or courts involved is concerned. |
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| SIGNED for and on behalf of          | )                              |                           |
|--------------------------------------|--------------------------------|--------------------------------|
| TOP SHIPS INC.                       | )                              | /s/ Alexandros Tsirikos   |
|                                 |                           | Alexandros Tsirikos            |
|                                 |                           | CFO                            |
|                                 |                           |                           |
| Witness                              |                           |                           |   |
| Signature:                           | /s/ Andreas Louka              |                           |   |
| Full name:                           | Andreas Louka                  |                           |   |
| Address:                             | 12 Evryalis St. Glyfade        |                           |   |
| Occupation:                          | Advocate                       |                           |   |
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| SIGNED for and on behalf of          | )                              |                           |
| CAPE MANUEL SHIPPING COMPANY LIMITED | )                              | /s/ Michael McBride  |
| MICHAEL MCBRIDE                      |                           |                           |
| Director                             |                           |                           |
|                                 |                           |                           |
| Witness                              |                           |                           |   |
| Signature:                           | /s/ Dimosthenis Eleftheriadis  |                           |   |
| Full name:                           | Dimosthenis Eleftheriadis      |                           |   |
| Address:                             | 11th  Str., Kanari Athens |                           |   |
| Occupation:                          | Advocate                       |                           |   |
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