----

| Clause                                                          |                                              | Page   |
|-----------------------------------------------------------------|---------------------------------------------------|--------|
|                                                            |                                              |   |
| 1                                                               | Interpretation                                    | 1      |
| 2                                                               | Facility                                          | 17     |
| 3                                                               | Position of the Lenders and Swap Banks            | 17     |
| 4                                                               | Drawdown                                          | 18     |
| 5                                                               | Interest                                          | 19     |
| 6                                                               | Interest Periods                                  | 21     |
| 7                                                               | Default Interest                                  | 22     |
| 8                                                               | reduction, Repayment, Prepayment and Cancellation | 23     |
| 9                                                               | Conditions Precedent                              | 26     |
| 10                                                              | Representations and Warranties                    | 26     |
| 11                                                              | General Undertakings                              | 29     |
| 12                                                              | Corporate Undertakings                            | 33     |
| 13                                                              | Insurance                                         | 34     |
| 14                                                              | Ship Covenants                                    | 39     |
| 15                                                              | Security Cover                                    | 44     |
| 16                                                              | Payments and Calculations                         | 46     |
| 17                                                              | Application of Receipts                           | 47     |
| 18                                                              | Application of Earnings                           | 49     |
| 19                                                              | Events of Default                                 | 50     |
| 20                                                              | Fees and Expenses                                 | 55     |
| 21                                                              | Indemnities                                       | 56     |
| 22                                                              | No Set-Off or Tax Deduction                       | 58     |
| 23                                                              | Illegality, etc                                   | 59     |
| 24                                                              | Increased Costs                                   | 59     |
| 25                                                              | Set-Off                                           | 61     |
| 26                                                              | Transfers and Changes in Lending Offices          | 62     |
| 27                                                              | Variations and Waivers                            | 65     |
| 28                                                              | Notices                                           | 66     |
| 29                                                              | Joint and Several Liability                       | 68     |
| 30                                                              | Supplemental                                      | 69     |
| 31                                                              | Law and Jurisdiction                              | 70     |
| Schedule 1  Lenders and Commitments  Part 1 | 72                                                |
| Schedule 2  Swap Banks                                | 73                                                |
| Schedule 3  Drawdown Notice                           | 74                                                |
| ScheduLe 4  Condition Precedent Document              | 75                                                |
| Schedule 5  Transfer Certificate                      | 77                                                |
| Execution Pages                                                 | 81                                                |

----

| (1) | PEGASUS SHIPHOLDING S.A. ("Pegasus"), LANCE SHIPPING S.A. ("Lance") and SEACROWN MARITIME LTD. ("Seacrown"), each a corporation organised and existing under the laws of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960, as joint and several Borrowers; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | THE BANKS AND FINANCIAL INSTITUTIONS  listed in Schedule 1, as Lenders; |
|-----|-----------------------------------------------------------------------------------|

| (3) | THE BANKS AND FINANCIAL INSTITUTIONS  listed in Schedule 2, as Swap Banks; |
|-----|--------------------------------------------------------------------------------------|

| (4) | CREDIT SUISSEAG, having its registered office at Paradeplatz 8, 8001 Zurich, Switzerland and acting through its office at St. Alban-Graben 1-3, 4002 Basel, Switzerland as Agent; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | CREDIT SUISSEAG, having its registered office at Paradeplatz 8, 8001 Zurich, Switzerland and acting through its office at St. Alban-Graben 1-3, 4002 Basel, Switzerland, as SecurityTrustee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | The Lenders have agreed to make available to the Borrowers a reducing revolving credit facility of up to $262,125,000 in aggregate initially for the purpose of refinancing the Existing Indebtedness and for general working capital purposes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | The Borrowers shall be entitled to reborrow the prepaid amounts for general working capital purposes. |
|-----|-------------------------------------------------------------------------------------------------------|

| (C) | The Swap Banks may, have in their absolute discretion, agree to enter into interest rate swap transactions with the Borrowers from time to time to hedge the Borrowers' exposure under this Agreement to interest rate fluctuations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D) | The Lenders and the Swap Banks have agreed to share pari passu in the security to be granted to the Security Trustee pursuant to this Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 1 | INTERPRETATION |
|---|----------------|

| 1.1 | Definitions |
|-----|-------------|

----

|   | (a) | in respect of Ship A and Ship B, Methane Services Ltd. of England and Wales; and |
|--------|-----|----------------------------------------------------------------------------------|

|   | (b) | in respect of Ship C, Gazprom Global LNG Limited of England and Wales; |
|--------|-----|------------------------------------------------------------------------|

|   | (a) | the date falling 1 month before the Termination Date (or such later date as the Agent may, with the authorisation of the Majority Lenders, agree with the Borrowers); or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | if earlier, the date on which the Total Commitments are fully cancelled or terminated; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (a) | the Permitted Holders, collectively, are no longer the owners, directly or indirectly, beneficially or of record, of the class of interests representing at least 30 per cent of the outstanding voting interests (which shall include common and subordinated units of Dynagas, taken together as a single class of Dynagas whether or not the voting power with respect to such interests is limited by the LPA); or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Permitted Holders, collectively, are no longer the owners, directly or indirectly, beneficially or of record, of the limited liability company interests representing 100 per cent of the outstanding voting interests and limited liability company interests of the General Partner. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it is entered into by the Borrowers pursuant to a Master Agreement with a Swap Bank which, at the time the Transaction is entered into, is also a Lender; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | its purpose is the hedging of the Borrowers' exposure under this Agreement to fluctuations in LIBOR arising from the funding of the Loan (or any part thereof) for a period expiring no later than the Termination Date. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | except to the extent that they fall within paragraph (b); |
|--------|-----|-----------------------------------------------------------|

|   | (i) | all freight, hire and passage moneys; |
|--------|-----|---------------------------------------|

|   | (ii) | compensation payable to any Borrower or the Security Trustee in the event of requisition of a Ship for hire; |
|--------|------|--------------------------------------------------------------------------------------------------------------|

|   | (iii) | remuneration for salvage and towage services; |
|--------|-------|-----------------------------------------------|

|   | (iv) | demurrage and detention moneys; |
|--------|------|---------------------------------|

|   | (v) | damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of a Ship; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | all moneys which are at any time payable under any Insurances in respect of loss of hire; and |
|--------|------|-----------------------------------------------------------------------------------------------|

|   | (b) | if and whenever a Ship is employed on terms whereby any moneys falling within paragraphs (a)(i) to (vi) 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 the Ship; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | any claim by any governmental, judicial or regulatory authority which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to any Environmental Law; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any claim by any other person which relates to an Environmental Incident or to an alleged Environmental Incident, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (a) | any release of Environmentally Sensitive Material from a Ship; or |
|--------|-----|-------------------------------------------------------------------|

|   | (b) | any incident in which Environmentally Sensitive Material is released from a vessel other than a Ship and which involves a collision between a 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 Borrower 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 otherwise than from a Ship and in connection with which a Ship is actually or potentially liable to be arrested and/or where any Borrower 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; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | this Agreement; |
|--------|-----|-----------------|

|   | (b) | the Agency and Trust Agreement; |
|--------|-----|---------------------------------|

|   | (c) | the Guarantees; |
|--------|-----|-----------------|

|   | (d) | the General Assignments; |
|--------|-----|--------------------------|

|   | (e) | the Mortgages; |
|--------|-----|----------------|

|   | (f) | the Accounts Pledges; |
|--------|-----|-----------------------|

|   | (g) | the Charter Assignments; |
|--------|-----|--------------------------|

|   | (h) | the Approved Manager's Undertakings; |
|--------|-----|--------------------------------------|

|   | (i) | the Master Agreement Assignment; and |
|--------|-----|--------------------------------------|

|   | (j) | any other document (whether creating a Security Interest or not) which is executed at any time by any Borrower or any other person as security for, or to establish any form of subordination or priorities arrangement in relation to, any amount payable to the Lenders and/or the Swap Banks under this Agreement or any of the other documents referred to in this definition; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the debtor; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (b) | under any loan stock, bond, note or other security issued by the debtor; |
|--------|-----|--------------------------------------------------------------------------|

|   | (c) | under any acceptance credit, guarantee or letter of credit facility or dematerialised equivalent made available to the debtor; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | under a financial lease, a deferred purchase consideration arrangement or any other agreement having the commercial effect of a borrowing or raising of money by the debtor; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | under any foreign exchange transaction, any interest or currency swap or any other kind of derivative transaction entered into by the debtor or, if the agreement under which any such transaction is entered into requires netting of mutual liabilities, the liability of the debtor for the net amount; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability of another person which would fall within paragraphs (a) to (e) if the references to the debtor referred to the other person; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | all policies and contracts of insurance, including entries of the Ship in any protection and indemnity or war risks association, effected in respect of the Ship, its Earnings or otherwise in relation to it whether before, on or after the date of this Agreement; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium and any rights in respect of any claim whether or not the relevant policy, contract of insurance or entry has expired on or before the date of this Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the applicable Screen Rate; or |
|--------|-----|--------------------------------|

|   | (b) | if no Screen Rate is available for that period, the rate per annum determined by the Agent to be the arithmetic mean (rounded upwards to 4 decimal places) of the |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | before an Advance has been made, Lenders whose Commitments total 66.66 per cent. of the Total Commitments; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (b) | after an Advance has been made, Lenders whose Contributions total 66.66 per cent. of the Loan; |
|--------|-----|------------------------------------------------------------------------------------------------|

----

|   | (a) | Security Interests created by the Finance Documents; |
|--------|-----|------------------------------------------------------|

|   | (b) | liens for unpaid master's and crew's wages in accordance with usual maritime practice; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (c) | liens for salvage; |
|--------|-----|--------------------|

|   | (d) | liens arising by operation of law for not more than 2 months' prepaid hire under any charter in relation to a Ship not prohibited by this Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | liens for master's disbursements incurred in the ordinary course of trading and any other lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of a Ship, provided such liens do not secure amounts more than 30 days overdue (unless the overdue amount is being contested by the relevant Borrower in good faith by appropriate steps) and subject, in the case of liens for repair or maintenance, to Clause 14.13(h); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | any Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses while a Borrower is actively prosecuting or defending such proceedings or arbitration in good faith; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Security Interests arising by operation of law in respect of taxes which are not overdue for payment or in respect of taxes being contested in good faith by appropriate steps and in respect of which appropriate reserves have been made; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | any Finance Document; |
|--------|-----|-----------------------|

|   | (b) | any policy or contract of insurance contemplated by or referred to in Clause 13 or any other provision of this Agreement or another Finance Document; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any other document contemplated by or referred to in any Finance Document; and |
|--------|-----|--------------------------------------------------------------------------------|

|   | (d) | any document which has been or is at any time sent by or to a Servicing Bank in contemplation of or in connection with any Finance Document or any policy, contract or document falling within paragraphs (b) or (c); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | England and Wales; |
|--------|-----|--------------------|

|   | (b) | the country under the laws of which the company is incorporated or formed; |
|--------|-----|----------------------------------------------------------------------------|

|   | (c) | a country in which the company has the centre of its main interests or which the company's central management and control is or has recently been exercised; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a country in which the overall net income of the company is subject to corporation tax, income tax or any similar tax; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (e) | a country in which assets of the company (other than securities issued by, or loans to, related companies) having a substantial value are situated, in which the company maintains a branch or permanent place of business, or in which a Security Interest created by the company must or should be registered in order to ensure its validity or priority; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | a country the courts of which have jurisdiction to make a winding up, administration or similar order in relation to the company, whether as a main or territorial or ancillary proceedings, or which would have such jurisdiction if their assistance were requested by the courts of a country referred to in paragraphs (b) or (c); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | any transaction or matter contemplated by, arising out of, or in connection with a Pertinent Document; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (b) | any statement relating to a Pertinent Document or to a transaction or matter falling within paragraph (a), |
|--------|-----|------------------------------------------------------------------------------------------------------------|

----

|   | (a) | a mortgage, charge (whether fixed or floating) or pledge, any maritime or other lien or any other security interest of any kind; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the security rights of a plaintiff under an action in rem; and |
|--------|-----|----------------------------------------------------------------|

|   | (c) | any arrangement entered into by a person (A) the effect of which is to place another person (B) in a position which is similar, in economic terms, to the position in which B would have been had he held a security interest over an asset of A; but this paragraph (c) does not apply to a right of set off or combination of accounts conferred by the standard terms of business of a bank or financial institution; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all amounts which have become due for payment by any Borrower or any Security Party or the Approved Manager under the Finance Documents and the Master Agreements have been paid; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | no amount is owing or has accrued (without yet having become due for payment) under any Finance Document or any Master Agreement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | neither any Borrower nor any Security Party has any future or contingent liability under Clauses 20 or 22 or any other provision of this Agreement or another Finance Document or a Master Agreement; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | there is no significant risk that any payment or transaction under a Finance Document or a Master Agreement would be set aside, or would have to be reversed or adjusted, in any present or possible future bankruptcy of a Borrower or a Security Party or in any present or possible future proceeding relating to a Finance Document or a Master Agreement or any asset covered (or previously covered) by a Security Interest created by a Finance Document; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | actual, constructive, compromised, agreed or arranged total loss of the Ship; |
|--------|-----|-------------------------------------------------------------------------------|

|   | (b) | any expropriation, confiscation, requisition or acquisition of the Ship, whether for full consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period not exceeding 1 year without any right to an extension) unless it is within 1 month redelivered to the full control of the Borrower owning the Ship; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any arrest, capture, seizure or detention of the Ship (including any hijacking or theft) unless it is within 1 month (and in the case of any highjacking or theft, within 3 months) redelivered to the full control of the Borrower owning the Ship; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | in the case of an actual loss of the Ship, the date on which it occurred or, if that is unknown, the date when the Ship was last heard of; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in the case of a constructive, compromised, agreed or arranged total loss of the Ship, the earliest of: |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (i) | the date on which a notice of abandonment is given to the insurers; and |
|--------|-----|-------------------------------------------------------------------------|

|   | (ii) | the date of any compromise, arrangement or agreement made by or on behalf of the Borrower owning the Ship with the Ship's insurers in which the insurers agree to treat the Ship as a total loss; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | in the case of any other type of total loss, on the date (or the most likely date) on which it appears to the Agent that the event constituting the total loss occurred; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Construction of certain terms |
|-----|-------------------------------|

----

----

| 1.3 | Meaning of "month" |
|-----|--------------------|

| (a) | on the Business Day following the numerically corresponding day if the numerically corresponding day is not a Business Day or, if there is no later Business Day in the same calendar month, on the Business Day preceding the numerically corresponding day; or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | on the last Business Day in the relevant calendar month, if the period started on the last Business Day in a calendar month or if the last calendar month of the period has no numerically corresponding day, |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Meaning of "subsidiary" |
|-----|-------------------------|

| (a) | a majority of the issued shares in S (or a majority of the issued shares in S which carry unlimited rights to capital and income distributions) are directly owned by P or are indirectly attributable to P; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | P has direct or indirect control over a majority of the voting rights attaching to the issued shares of S; or |
|-----|---------------------------------------------------------------------------------------------------------------|

| (c) | P has the direct or indirect power to appoint or remove a majority of the directors of S; or |
|-----|----------------------------------------------------------------------------------------------|

| (d) | P otherwise has the direct or indirect power to ensure that the affairs of S are conducted in accordance with the wishes of P, |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | General Interpretation |
|-----|------------------------|

| (a) | references to, or to a provision of, a Finance Document or any other document are references to it as amended or supplemented, whether before the date of this Agreement or otherwise; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | references to, or to a provision of, any law include any amendment, extension, re-enactment or replacement, whether made before the date of this Agreement or otherwise; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | words denoting the singular number shall include the plural and vice versa; and |
|-----|---------------------------------------------------------------------------------|

| (d) | Clauses 1.1 to 1.5 apply unless the contrary intention appears. |
|-----|-----------------------------------------------------------------|

| 1.6 | Headings |
|-----|----------|

| 2 | FACILITY |
|---|----------|

| 2.1 | Amount of facility |
|-----|--------------------|

| 2.2 | Lenders' participations in Advances |
|-----|-------------------------------------|

| 2.3 | Purpose of Advances |
|-----|---------------------|

| 3 | POSITION OF THE LENDERS AND SWAP BANKS |
|---|----------------------------------------|

| 3.1 | Interests of Lenders several |
|-----|------------------------------|

| 3.2 | Individual Lender's right of action |
|-----|-------------------------------------|

| 3.3 | Proceedings by individual Lender requiring Majority Lenders' consent |
|-----|----------------------------------------------------------------------|

| 3.4 | Obligations of Lenders several |
|-----|--------------------------------|

----

| (a) | the obligations of the other Lenders or Swap Banks being increased; nor |
|-----|-------------------------------------------------------------------------|

| (b) | any Borrower, any Security Party, the Approved Manager or any other Lender or any other Swap Bank being discharged (in whole or in part) from its obligations under any Finance Document or under any Master Agreement; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | DRAWDOWN |
|---|----------|

| 4.1 | Request for Advance |
|-----|---------------------|

| 4.2 | Availability |
|-----|--------------|

| (a) | a Drawdown Date has to be a Business Day during the Availability Period; |
|-----|--------------------------------------------------------------------------|

| (b) | the amount of the first Advance shall not exceed the amount of the Initial Maximum Loan Amount, and shall be applied in repaying, the Existing Indebtedness; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the aggregate amount of the Advances shall not exceed the Total Commitments; and |
|-----|----------------------------------------------------------------------------------|

| (d) | no more than 4 Advances may be drawn in any calendar year. |
|-----|------------------------------------------------------------|

| 4.3 | Notification to Lenders of receipt of a Drawdown Notice |
|-----|---------------------------------------------------------|

| (a) | the amount of the Advance and the Drawdown Date; |
|-----|--------------------------------------------------|

| (b) | the amount of that Lender's participation in the Advance; and |
|-----|---------------------------------------------------------------|

| (c) | the duration of the Interest Period. |
|-----|--------------------------------------|

| 4.4 | Drawdown Notice irrevocable |
|-----|-----------------------------|

| 4.5 | Lenders to make available Contributions |
|-----|-----------------------------------------|

| 4.6 | Disbursement of Advance |
|-----|-------------------------|

----

| (a) | to the account which the Borrowers specify in the Drawdown Notice; and |
|-----|------------------------------------------------------------------------|

| (b) | in the like funds as the Agent received the payments from the Lenders. |
|-----|------------------------------------------------------------------------|

| 4.7 | Disbursement of Advance to third party |
|-----|----------------------------------------|

| 5 | INTEREST |
|---|----------|

| 5.1 | Payment of normal interest |
|-----|----------------------------|

| 5.2 | Normal rate of interest |
|-----|-------------------------|

| 5.3 | Payment of accrued interest |
|-----|-----------------------------|

| 5.4 | Notification of Interest Periods and rates of normal interest |
|-----|---------------------------------------------------------------|

| 5.5 | Obligation of Reference Banks to quote |
|-----|----------------------------------------|

| 5.6 | Absence of quotations by Reference Banks |
|-----|------------------------------------------|

| 5.7 | Market disruption |
|-----|-------------------|

| (a) | no Screen Rate is available for an Interest Period and 2 or more of the Reference Banks do not, before 1.00 p.m. (London time) on the Quotation Date, provide quotations to the Agent in order to fix LIBOR; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | at least 1 Business Day before the start of an Interest Period, Lenders having Commitments amounting to more than 66.67% per cent. of the Total Commitments notify the Agent that LIBOR fixed by the Agent would not accurately reflect the cost to those Lenders of funding their respective Contributions (or any part of them) during the Interest Period in the London Interbank Market at or about 11.00 a.m. (London time) on the Quotation Date for the Interest Period; or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | at least 1 Business Day before the start of an Interest Period, the Agent is notified by a Lender (the "Affected Lender") that for any reason it is unable to obtain Dollars in the London Interbank Market in order to fund its Contribution (or any part of it) during the Interest Period. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | Notification of market disruption |
|-----|-----------------------------------|

| 5.9 | Suspension of drawdown |
|-----|------------------------|

| (a) | in a case falling within Clauses 5.7(a) or 5.7(b), the Lenders' obligations to make the Advance; and |
|-----|------------------------------------------------------------------------------------------------------|

| (b) | in a case falling within Clause 5.7(c), the Affected Lender's obligation to participate in the Advance, |
|-----|---------------------------------------------------------------------------------------------------------|

| 5.10 | Negotiation of alternative rate of interest |
|------|---------------------------------------------|

| 5.11 | Application of agreed alternative rate of interest |
|------|----------------------------------------------------|

| 5.12 | Alternative rate of interest in absence of agreement |
|------|------------------------------------------------------|

| 5.13 | Notice of prepayment |
|------|----------------------|

----

| 5.14 | Prepayment; termination of Commitments |
|------|----------------------------------------|

| (a) | on the date on which the Agent serves that notice, the Total Commitments or (as the case may require) the Commitment of the Affected Lender shall be cancelled; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | on the last Business Day of the interest period set by the Agent, the Borrowers shall prepay (without premium or penalty) the Loan or, as the case may be, the Affected Lender's Contribution, together with accrued interest thereon at the applicable rate plus the Margin and the Mandatory Cost (if any). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.15 | Application of prepayment |
|------|---------------------------|

| 6 | INTEREST PERIODS |
|---|------------------|

| 6.1 | Commencement of Interest Periods |
|-----|----------------------------------|

| 6.2 | Duration of normal Interest Periods |
|-----|-------------------------------------|

| (a) | 3, 6 or 12 months as notified by the Borrowers to the Agent not later than 11:00 a.m. (London time) 2 Business Days before the commencement of the Interest Period; or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | in the case of the first Interest Period applicable to the second Advance, a period ending on the last day of the Interest Period applicable to the first Advance then current, whereupon both Advances shall be consolidated and treated as a single Advance; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in the case of the first Interest Period applicable to the second and any subsequent Advance, a period ending on the last day of the then current Interest Period applicable to the first or subsequent Advances; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | 3 months, if the Borrowers fail to notify the Agent by the time specified in paragraph (a); or |
|-----|------------------------------------------------------------------------------------------------|

| (e) | such other period as the Agent may, with the authorisation of the Majority Lenders, agree with the Borrowers. |
|-----|---------------------------------------------------------------------------------------------------------------|

| 6.3 | Non-availability of matching deposits for Interest Period selected |
|-----|--------------------------------------------------------------------|

----

| 6.4 | No Interest Period to extend beyond Termination Date |
|-----|------------------------------------------------------|

| 6.5 | Signature of the Master Agreements does not commit the Swap Banks to conclude transactions, or even to offer terms for doing so, but does provide a contractual framework within which Designated Transactions may be concluded and secured, assuming that the Swap Banks are willing to conclude any Designated Transaction at the relevant time and that, if that is the case, mutually acceptable terms can then be agreed at the relevant time. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | DEFAULT INTEREST |
|---|------------------|

| 7.1 | Payment of default interest on overdue amounts |
|-----|------------------------------------------------|

| (a) | the date on which the Finance Documents provide that such amount is due for payment; or |
|-----|-----------------------------------------------------------------------------------------|

| (b) | if a Finance Document provides that such amount is payable on demand, the date on which the demand is served; or |
|-----|------------------------------------------------------------------------------------------------------------------|

| (c) | if such amount has become immediately due and payable under Clause 19.4, the date on which it became immediately due and payable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | Default rate of interest |
|-----|--------------------------|

| (a) | in the case of an overdue amount of principal, the higher of the rates set out at Clauses 7.3(a) and 7.3(b); or |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (b) | in the case of any other overdue amount, the rate set out at Clause 7.3(b). |
|-----|-----------------------------------------------------------------------------|

| 7.3 | Calculation of default rate of interest |
|-----|-----------------------------------------|

| (a) | the rate applicable to the overdue principal amount immediately prior to the relevant date (but only for any unexpired part of any then current Interest Period applicable to it); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the Margin plus Mandatory Costs (if any) plus, in respect of successive periods of any duration (including at call) up to 3 months which the Agent may select from time to time: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | LIBOR; or |
|--------|-----|-----------|

|   | (ii) | if the Agent (after consultation with the Reference Banks) determines that Dollar deposits for any such period are not being made available to any Reference Bank by leading banks in the London Interbank Market in the ordinary course of business, a rate from time to time determined by the Agent by reference to the cost of funds to |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.4 | Notification of interest periods and default rates |
|-----|----------------------------------------------------|

| 7.5 | Payment of accrued default interest |
|-----|-------------------------------------|

| 7.6 | Compounding of default interest |
|-----|---------------------------------|

| 7.7 | Application to Master Agreements |
|-----|----------------------------------|

| 8 | REDUCTION, REPAYMENT, PREPAYMENT AND CANCELLATION |
|---|---------------------------------------------------|

| 8.1 | Reduction of Commitments |
|-----|--------------------------|

| (a) | By 14 quarterly reductions, the first 13 of which shall be in the amount of $5,000,000 each and the fourteenth and final of which shall be in the amount of $197,125,000; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the first reduction shall take place on 31 March 2014, each subsequent reduction shall take place at 3-monthly intervals thereafter, and the last reduction shall take place no later than the Termination Date; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the Initial Maximum Loan Amount or, as the case may be, the amount for the time being of the Total Commitments shall be reduced by (and the reduction/repayment amounts referred to in paragraph (a) above shall be reduced proportionately by an aggregate amount equal to): |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the amount of such portion(s) of the Total Commitments as may from time to time be cancelled by the Borrowers pursuant to Clause 8.10 (Voluntary Cancellation of Commitments); and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the amount of any reduction(s) and/or prepayment(s) and/or repayments required to be made under or pursuant to: |
|--------|------|-----------------------------------------------------------------------------------------------------------------|

|   | (A) | Clause 5.14 (Prepayment; termination of Commitments); or |
|--------|-----|----------------------------------------------------------|

|   | (B) | Clause 8.7 (Mandatory Prepayment); or |
|--------|-----|---------------------------------------|

----

|   | (C) | Clause 19.3 (Termination of Commitment); or |
|--------|-----|---------------------------------------------|

|   | (D) | Clause 23.3 (Notification and effect of illegality); or |
|--------|-----|---------------------------------------------------------|

|   | (E) | Clause 24.6 (Prepayment); |
|--------|-----|---------------------------|

| (d) | each reduction of the Total Commitments shall cause the amount of the Total Commitments to be permanently reduced by the amount of the reduction. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Prepayment of Loan |
|-----|--------------------|

| 8.3 | Voluntary prepayment |
|-----|----------------------|

| 8.4 | Conditions for voluntary prepayment |
|-----|-------------------------------------|

| (a) | a partial prepayment shall be in an amount not less than $5,000,000 or a higher integral multiple thereof; and |
|-----|----------------------------------------------------------------------------------------------------------------|

| (b) | the Agent has received from the Borrowers at least 5 days' prior written notice specifying the amount to be prepaid and the date on which the prepayment is to be made; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the Borrowers have provided evidence satisfactory to the Agent that any consent required by any Borrower or any Security Party (pursuant to any contract such Borrower or Security Party is a party or to any obligation to which such Borrower or Security Party is subject) in connection with the prepayment has been obtained and remains in force, and that any requirement relevant to this Agreement which affects any Borrower or any Security Party has been complied with. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Effect of notice of prepayment |
|-----|--------------------------------|

| 8.6 | Notification of notice of prepayment |
|-----|--------------------------------------|

| 8.7 | Mandatory prepayment |
|-----|----------------------|

----

| (a) | in the case of a sale, on or before the date on which the sale is completed by delivery of that Ship to the buyer; or |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (b) | in the case of a Total Loss, on the earlier of the date falling 90 days after the Total Loss Date and the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.8 | Amounts payable on prepayment |
|-----|-------------------------------|

| 8.9 | Reborrowing permitted |
|-----|-----------------------|

| 8.10 | Voluntary Cancellation of Commitments |
|------|---------------------------------------|

| 8.11 | Conditions for cancellation of Commitments |
|------|--------------------------------------------|

| (a) | that a partial cancellation shall be $5,000,000 or a multiple of $5,000,000; and |
|-----|----------------------------------------------------------------------------------|

| (b) | that the Agent has received from the Borrowers at least 5 days' prior written notice specifying the amount of the Total Commitments to be cancelled and the date on which the cancellation is to take effect. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.12 | Effect of notice of cancellation |
|------|----------------------------------|

| 8.13 | Unwinding of Designated Transactions |
|------|--------------------------------------|

----

| 9 | CONDITIONS PRECEDENT |
|---|----------------------|

| 9.1 | Documents, fees and no default |
|-----|--------------------------------|

| (a) | that, on or before the service of the first Drawdown Notice, the Agent receives the documents described in Part A of Schedule 4 in form and substance satisfactory to the Agent and its lawyers; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | that, on the first Drawdown Date but prior to the making of the first Advance, the Agent receives or is satisfied that it will receive on the making of the first Advance the documents described in Part B of Schedule 4 in form and substance satisfactory to it and its lawyers; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | that, on or before the service of the first Drawdown Notice, the Agent receives the arrangement fee referred to in Clause 20.1, all accrued commitment fee payable pursuant to Clause 20.1 and has received payment of the expenses referred to in Clause 20.2; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | that both at the date of each Drawdown Notice and at each Drawdown Date: |
|-----|--------------------------------------------------------------------------|

|   | (i) | no Event of Default or Potential Event of Default has occurred or would result from the borrowing of the relevant Advance; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the representations and warranties in Clause 10.1 and those of any Borrower or any Security Party which are set out in the other Finance Documents would be true and not misleading if repeated on each of those dates with reference to the circumstances then existing; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | none of the circumstances contemplated by Clause 5.7 has occurred and is continuing; |
|--------|-------|--------------------------------------------------------------------------------------|

| (e) | that, if the ratio set out in Clause 15.1 were applied immediately following the making of the Advance, the Borrowers would not be obliged to provide additional security or prepay part of the Loan under that Clause; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | that the Agent has received, and found to be acceptable to it, any further opinions, consents, agreements and documents in connection with the Finance Documents which the Agent may, with the authorisation of the Majority Lenders, request by notice to the Borrowers prior to the Drawdown Date. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Waiver of conditions precedent |
|-----|--------------------------------|

| 10 | REPRESENTATIONS AND WARRANTIES |
|----|--------------------------------|

| 10.1 | General |
|------|---------|

----

| 10.2 | Status |
|------|--------|

| 10.3 | Share capital and ownership |
|------|-----------------------------|

| 10.4 | Corporate power |
|------|-----------------|

| (a) | to maintain the registration of its Ship in its ownership under the Marshall Islands flag; |
|-----|--------------------------------------------------------------------------------------------|

| (b) | to execute the Finance Documents to which that Borrower is a party and the Master Agreements; and |
|-----|---------------------------------------------------------------------------------------------------|

| (c) | to borrow under this Agreement, to enter into Designated Transactions under the Master Agreements and to make all the payments contemplated by, and to comply with, those Finance Documents to which the Borrowers are a party and the Master Agreements.. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Consents in force |
|------|-------------------|

| 10.6 | Legal validity; effective Security Interests |
|------|----------------------------------------------|

| (a) | constitute that Borrower's legal, valid and binding obligations enforceable against that Borrower in accordance with their respective terms; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | create legal, valid and binding Security Interests enforceable in accordance with their respective terms over all the assets to which they, by their terms, relate, |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7 | No third party Security Interests |
|------|-----------------------------------|

| (a) | each Borrower which is a party to that Finance Document will have the right to create all the Security Interests which that Finance Document purports to create; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | no third party will have any Security Interest (except for Permitted Security Interests) or any other interest, right or claim over, in or in relation to any asset to which any such Security Interest, by its terms, relates. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 | No conflicts |
|------|--------------|

| (a) | any law or regulation; or |
|-----|---------------------------|

| (b) | the constitutional documents of that Borrower; or |
|-----|---------------------------------------------------|

| (c) | any contractual or other obligation or restriction which is binding on that Borrower or any of its assets. |
|-----|------------------------------------------------------------------------------------------------------------|

| 10.9 | No withholding taxes |
|------|----------------------|

| 10.10 | No default |
|-------|------------|

| 10.11 | Information |
|-------|-------------|

| 10.12 | No litigation |
|-------|---------------|

| 10.13 | Compliance with certain undertakings |
|-------|--------------------------------------|

| 10.14 | Taxes paid |
|-------|------------|

| 10.15 | ISM Code and ISPS Code compliance |
|-------|-----------------------------------|

----

| 10.16 | Validity and completeness of Approved Charters.  The Approved Charters constitute valid, binding and enforceable obligations of the Approved Charterer and the relevant Borrower respectively in accordance with its terms and: |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | the copy of the Approved Charters delivered to the Agent before the date of this Agreement is a true and complete copy; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (b) | other than as previously provided or disclosed to the Agent, no amendments or additions to the Approved Charters have been agreed nor has any Borrower or any Approved Charterer waived any of their respective rights under the respective Approved Charter. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17 | No rebates etc.  There is no agreement or understanding to allow or pay any rebate, premium, commission, discount or other benefit or payment (howsoever described) to any Borrower, any Approved Charterer or a third party in connection with the employment by the relevant Borrower of its Ship, other than as disclosed to the Lenders in writing on or prior to the date of this Agreement. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | GENERAL UNDERTAKINGS |
|----|----------------------|

| 11.1 | General |
|------|---------|

| 11.2 | Title; negative pledge |
|------|------------------------|

| (a) | hold the legal title to, and own the entire beneficial interest in the Ship owned by it, her Insurances and Earnings, free from all Security Interests and other interests and rights of every kind, except for Permitted Security Interests; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | not create or permit to arise any Security Interest (except for Permitted Security Interests) over any other asset, present or future (including, but not limited to, the Borrowers' rights against a Swap Counterparty under any Master Agreement or all or any part of the Borrowers' interest in any amount payable to the Borrowers by a Swap Counterparty under a Master Agreement), |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | No disposal of assets |
|------|-----------------------|

| (a) | all or a substantial part of its assets, whether by one transaction or a number of transactions, whether related or not; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (b) | any debt payable to it or any other right (present, future or contingent right) to receive a payment, including any right to damages or compensation, |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | No other liabilities or obligations to be incurred |
|------|----------------------------------------------------|

----

| 11.5 | Information provided to be accurate |
|------|-------------------------------------|

| 11.6 | Provision of financial statements |
|------|-----------------------------------|

| (a) | as soon as possible, but in no event later than 180 days after the end of each financial year of: |
|-----|---------------------------------------------------------------------------------------------------|

|   | (i) | that Borrower, the annual audited individual accounts of that Borrower; and |
|--------|-----|-----------------------------------------------------------------------------|

|   | (ii) | Dynagas, the annual audited consolidated accounts, |
|--------|------|----------------------------------------------------|

| (b) | as soon as possible, but in no event later than 60 days after the end of each quarter in each financial year of Dynagas, the unaudited quarterly consolidated accounts of Dynagas, each certified as to their correctness by its chief accounting officer; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | promptly, at the request of the Agent, such further financial information about the Borrowers, the Guarantors and the Ships as the Agent may reasonably require including, but not limited to, charter arrangements, Financial Indebtedness, financial condition, commitments, operations, operating expenses and loan repayment profiles. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7 | Form of financial statements |
|------|------------------------------|

| (a) | be prepared in accordance with all applicable laws and GAAP consistently applied; |
|-----|-----------------------------------------------------------------------------------|

| (b) | give a true and fair view of the state of affairs of the relevant Borrower or Dynagas and its subsidiaries at the date of those accounts and of its or their profit for the period to which those accounts relate; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | fully disclose or provide for all significant liabilities of the relevant Borrower or Dynagas and its subsidiaries. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| 11.8 | Shareholder and creditor notices |
|------|----------------------------------|

| 11.9 | Consents |
|------|----------|

| (a) | for that Borrower to perform its obligations under any Finance Document to which it is a party or any Master Agreement; |
|-----|-------------------------------------------------------------------------------------------------------------------------|

----

| (b) | for the validity or enforceability of any Finance Document to which it is a party or any Master Agreement; |
|-----|------------------------------------------------------------------------------------------------------------|

| (c) | for that Borrower to continue to own and operate the Ship owned by it, |
|-----|------------------------------------------------------------------------|

| 11.10 | Maintenance of Security Interests |
|-------|-----------------------------------|

| (a) | at its own cost, do all that it reasonably can to ensure that any Finance Document validly creates the obligations and the Security Interests which it purports to create; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | without limiting the generality of paragraph (a), at its own cost, promptly register, file, record or enrol any Finance Document with any court or authority in all Pertinent Jurisdictions, pay any stamp, registration or similar tax in all Pertinent Jurisdictions in respect of any Finance Document, give any notice or take any other step which, in the reasonable opinion of the Majority Lenders, is or has become necessary or desirable for any Finance Document to be valid, enforceable or admissible in evidence or to ensure or protect the priority of any Security Interest which it creates. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.11 | Notification of litigation |
|-------|----------------------------|

| 11.12 | Principal place of business |
|-------|-----------------------------|

| 11.13 | No amendment to Master Agreements |
|-------|-----------------------------------|

| 11.14 | Confirmation of no default |
|-------|----------------------------|

| (a) | states that no Event of Default or Potential Event of Default has occurred; or |
|-----|--------------------------------------------------------------------------------|

| (b) | states that no Event of Default or Potential Event of Default has occurred, except for a specified event or matter, of which all material details are given. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.15 | Notification of default |
|-------|-------------------------|

| (a) | the occurrence of an Event of Default or a Potential Event of Default; or |
|-----|---------------------------------------------------------------------------|

| (b) | any matter which indicates that an Event of Default or a Potential Event of Default may have occurred, |
|-----|--------------------------------------------------------------------------------------------------------|

| 11.16 | Provision of further information |
|-------|----------------------------------|

| (a) | to that Borrower, the Ship owned by it, the Earnings or the Insurances; or |
|-----|----------------------------------------------------------------------------|

| (b) | to any other matter relevant to, or to any provision of, a Finance Document, |
|-----|------------------------------------------------------------------------------|

| 11.17 | Provision of copies and translation of documents |
|-------|--------------------------------------------------|

| 11.18 | Change of Control |
|-------|-------------------|

| 11.19 | "Know your customer" checks. |
|-------|------------------------------|

| (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 the Borrowers or any Security Party 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, |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12 | CORPORATE UNDERTAKINGS |
|----|------------------------|

| 12.1 | General |
|------|---------|

| 12.2 | Maintenance of status |
|------|-----------------------|

| 12.3 | Negative undertakings |
|------|-----------------------|

| (a) | carry on any business other than the ownership, chartering and operation of the Ship owned by it; or |
|-----|------------------------------------------------------------------------------------------------------|

| (b) | at any time when an Event of Default or a Potential Event of Default has occurred or will result from the payment of a dividend or the making of a distribution, pay any dividend or make any other form of distribution (and any such dividend or distribution may only be paid or made to Dynagas through Dynagas Equity or Dynagas Operating); or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | effect any form of redemption, purchase or return of share capital; or |
|-----|------------------------------------------------------------------------|

| (d) | provide any form of credit or financial assistance to: |
|-----|--------------------------------------------------------|

|   | (i) | a person who is directly or indirectly interested in that Borrower's share or loan capital; or |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (ii) | any company in or with which such a person is directly or indirectly interested or connected, |
|--------|------|-----------------------------------------------------------------------------------------------|

| (e) | open or maintain any account with any bank or financial institution except accounts with the Agent and the Security Trustee for the purposes of the Finance Documents; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | issue, allot or grant any person a right to any shares in its capital or repurchase or reduce its issued share capital; |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (g) | 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, or enter into any transaction in a derivative other than Designated Transactions; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | enter into any form of amalgamation, merger or de-merger or any form of reconstruction or reorganisation. |
|-----|-----------------------------------------------------------------------------------------------------------|

| 12.4 | Sanctions |
|------|-----------|

----

| 12.5 | No money laundering |
|------|---------------------|

| 13 | INSURANCE |
|----|-----------|

| 13.1 | General |
|------|---------|

| 13.2 | Maintenance of obligatory insurances |
|------|--------------------------------------|

| (a) | fire and usual marine risks (including hull and machinery and excess risks); |
|-----|------------------------------------------------------------------------------|

| (b) | war risks; |
|-----|------------|

| (c) | protection and indemnity risks; |
|-----|---------------------------------|

----

| (d) | any other risks against which the Security Trustee considers, having regard to practices and other circumstances prevailing at the relevant time, it would in the opinion of the Security Trustee be reasonable for that Borrower to insure and which are specified by the Security Trustee by notice to that Borrower. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3 | Terms of obligatory insurances |
|------|--------------------------------|

| (a) | in Dollars; |
|-----|-------------|

| (b) | in the case of fire and usual marine risks and war risks, in an amount on an agreed value basis at least the greater of (i) the Market Value of the Ship owned by it and (ii) such amount which, when aggregated with the amount for which any other Ship then subject to a Mortgage is insured, is equal to 120 per cent. of the aggregate of the Total Commitments and the Swap Exposure (if any) under the Master Agreements; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | 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; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | in relation to protection and indemnity risks in respect of the full tonnage of the Ship owned by it; |
|-----|-------------------------------------------------------------------------------------------------------|

| (e) | on approved terms; and |
|-----|------------------------|

| (f) | through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | Further protections for the Creditor Parties |
|------|----------------------------------------------|

| (a) | subject always to paragraph (b), name that Borrower as the sole named assured unless the interest of every other named assured 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; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | whenever the Security Trustee requires, name (or be amended to name) the Security Trustee as additional named assured for its rights and interests, warranted no operational interest and with full waiver of rights of subrogation against the Security Trustee, but without the Security Trustee thereby being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such insurance; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | name the Security Trustee as loss payee with such directions for payment as the Security Trustee may specify; |
|-----|---------------------------------------------------------------------------------------------------------------|

| (d) | provide that all payments by or on behalf of the insurers under the obligatory insurances to the Security Trustee shall be made without set-off, counterclaim or deductions or condition whatsoever; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | provide that the obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Security Trustee or any other Creditor Party; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | provide that the Security Trustee may make proof of loss if that Borrower fails to do so. |
|-----|-------------------------------------------------------------------------------------------|

| 13.5 | Renewal of obligatory insurances |
|------|----------------------------------|

| (a) | at least 21 days before the expiry of any obligatory insurance effected by it: |
|-----|--------------------------------------------------------------------------------|

|   | (i) | notify the Security Trustee of the brokers (or other insurers) and any protection and indemnity or war risks association through or with whom that Borrower proposes to renew that obligatory insurance and of the proposed terms of renewal; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | in case of any substantial change in insurance cover, obtain the Security Trustee's approval to the matters referred to in paragraph (i); |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | at least 14 days before the expiry of any obligatory insurance effected by it, renew that obligatory insurance in accordance with the Security Trustee's approval pursuant to paragraph (a); and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | procure that the approved brokers and/or the war risks and protection and indemnity associations with which such a renewal is effected shall promptly after the renewal notify the Security Trustee in writing of the terms and conditions of the renewal. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.6 | Copies of policies; letters of undertaking |
|------|--------------------------------------------|

| (a) | 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 13.4; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | they will hold such policies, and the benefit of such insurances, to the order of the Security Trustee in accordance with the said loss payable clause; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | they will advise the Security Trustee immediately of any material change to the terms of the obligatory insurances; |
|-----|---------------------------------------------------------------------------------------------------------------------|

----

| (d) | they will notify the Security Trustee, not less than 14 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from that Borrower or its agents and, in the event of their receiving instructions to renew, they will promptly notify the Security Trustee of the terms of the instructions; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | 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 will arrange for a separate policy to be issued in respect of that Ship forthwith upon being so requested by the Security Trustee. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.7 | Copies of certificates of entry |
|------|---------------------------------|

| (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 Security Trustee; 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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.8 | Deposit of original policies |
|------|------------------------------|

| 13.9 | Payment of premiums |
|------|---------------------|

| 13.10 | Guarantees |
|-------|------------|

| 13.11 | Compliance with terms of insurances |
|-------|-------------------------------------|

| (a) | each Borrower shall 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 Clause 13.6(c)) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Security Trustee has not given its prior approval; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | no Borrower shall make any changes relating to the classification or classification society or manager or operator of the Ship owned by it approved by the underwriters of the obligatory insurances; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | each Borrower shall make (and promptly upon the request of the Agent, supply copies to the Agent 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 |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | no Borrower shall 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.12 | Alteration to terms of insurances |
|-------|-----------------------------------|

| 13.13 | Settlement of claims |
|-------|----------------------|

| 13.14 | Provision of copies of communications |
|-------|---------------------------------------|

| (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) relating wholly or partly to the effecting or maintenance of the obligatory insurances. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.15 | Provision of information |
|-------|--------------------------|

----

| (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 13.16 or dealing with or considering any matters relating to any such insurances, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.16 | Mortgagee's interest and additional perils insurances |
|-------|-------------------------------------------------------|

| 13.17 | Review of insurance requirements |
|-------|----------------------------------|

| 13.18 | Modification of insurance requirements |
|-------|----------------------------------------|

| 13.19 | Compliance with mortgagee's instructions |
|-------|------------------------------------------|

| 14 | SHIP COVENANTS |
|----|----------------|

| 14.1 | General |
|------|---------|

----

| 14.2 | Ship's name and registration |
|------|------------------------------|

| 14.3 | Repair and classification |
|------|---------------------------|

| (a) | consistent with first-class ship ownership and management practice; |
|-----|---------------------------------------------------------------------|

| (b) | so as to maintain that Ship with the highest class applicable to vessels of the same age, type and specification as such Ship at a classification society which is a member of the International Association of Classification Societies, acceptable to the Agent free of any overdue recommendations or qualifications; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | so as to comply with all laws and regulations applicable to vessels registered at ports in the relevant Approved Flag State or to vessels trading to any jurisdiction to which that Ship may trade from time to time, including but not limited to the ISM Code and the ISPS Code. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4 | Classification society undertaking |
|------|------------------------------------|

| (a) | to send to the Security Trustee, following receipt of a written request from the Security Trustee, certified true copies of all original class records held by the classification society in relation to that Ship; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | to allow the Security Trustee (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 classification society and to take copies of them; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | to notify the Security Trustee immediately in writing if the classification society: |
|-----|--------------------------------------------------------------------------------------|

|   | (i) | receives notification from that Borrower or any person that that Ship's 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's or that Ship's membership of the classification society; and |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | following receipt of a written request from the Security Trustee: |
|-----|-------------------------------------------------------------------|

|   | (i) | to confirm that that Borrower is not in default of any of its contractual obligations or liabilities to the classification society and, without limiting the foregoing, that it has paid in full all fees or other charges due and payable to the classification society;  or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if that Borrower is in default of any of its contractual obligations or liabilities to the classification society, to specify to the Security Trustee in reasonable detail the facts and circumstances of such default, the consequences of such default, and any remedy period agreed or allowed by the classification society. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14.5 | Modification |
|------|--------------|

| 14.6 | Removal of parts |
|------|------------------|

| 14.7 | Surveys |
|------|---------|

| 14.8 | Inspection |
|------|------------|

| 14.9 | Prevention of and release from arrest |
|------|---------------------------------------|

| (a) | all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against the Ship owned by it, the Earnings or the Insurances other than Permitted Security Interests; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | all taxes, dues and other amounts charged in respect of the Ship owned by it, the Earnings or the Insurances; and |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (c) | all other outgoings whatsoever in respect of the Ship owned by it, the Earnings or the Insurances, |
|-----|----------------------------------------------------------------------------------------------------|

| 14.10 | Compliance with laws etc. |
|-------|---------------------------|

----

| (a) | comply, or procure compliance with the ISM Code, the ISPS Code, all Environmental Laws and all other laws or regulations relating to the Ship owned by it, its ownership, operation and management or to the business of that Borrower; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | not employ the Ship owned by it nor allow its employment in any manner contrary to any law or regulation in any relevant jurisdiction including but not limited to the ISM Code and the ISPS Code; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit the Ship owned by it to enter or trade to any zone which is declared a war zone by any government or by the Ship's war risks insurers unless the prior written consent of the Security Trustee has been given and that Borrower has (at its expense) effected any special, additional or modified insurance cover which the Security Trustee may require. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.11 | Provision of information |
|-------|--------------------------|

| (a) | the Ship owned by it, its employment, position and engagements; |
|-----|-----------------------------------------------------------------|

| (b) | the Earnings and payments and amounts due to the master and crew of the Ship owned by it; |
|-----|-------------------------------------------------------------------------------------------|

| (c) | any expenses incurred, or likely to be incurred, in connection with the operation, maintenance or repair of the Ship owned by it and any payments made in respect of that Ship; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | any towages and salvages; and |
|-----|-------------------------------|

| (e) | its compliance, the Approved Manager's compliance and the compliance of the Ship owned by it with the ISM Code and the ISPS Code, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| 14.12 | Notification of certain events |
|-------|--------------------------------|

| (a) | any casualty which is or is likely to be or to become a Major Casualty; |
|-----|-------------------------------------------------------------------------|

| (b) | any occurrence as a result of which the Ship owned by it has become or is, by the passing of time or otherwise, likely to become a Total Loss; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | any arrest or detention of the Ship owned by it, any exercise or purported exercise of any lien on that Ship or its Earnings or any requisition of that Ship for hire; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | any intended dry docking of the Ship owned by it; |
|-----|---------------------------------------------------|

| (f) | any Environmental Claim made against that Borrower or in connection with the Ship owned by it, or any Environmental Incident; |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

----

| (g) | any claim for breach of the ISM Code or the ISPS Code being made against that Borrower, the Approved Manager or otherwise in connection with the Ship owned by it; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | 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, |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.13 | Restrictions on chartering, appointment of managers etc. |
|-------|----------------------------------------------------------|

| (a) | let that Ship on demise charter for any period; |
|-----|-------------------------------------------------|

| (b) | other than an Approved Charter, enter into any time or consecutive voyage charter in respect of that Ship for a term which exceeds, or which by virtue of any optional extensions may exceed, 12 months other than with the prior written consent of the Agent (which consent is not to be unreasonably withheld or delayed Provided that such charter shall be subject to any terms and conditions reasonably acceptable to the Agent); |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | enter into any charter in relation to that Ship under which more than 2 months' hire (or the equivalent) is payable in advance; |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (d) | charter that Ship otherwise than on bona fide arm's length terms at the time when that Ship is fixed; |
|-----|-------------------------------------------------------------------------------------------------------|

| (e) | appoint a manager of that Ship other than the Approved Manager or agree to any alteration to the terms of the Approved Manager's appointment; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | de-activate or lay up that Ship; or |
|-----|-------------------------------------|

| (g) | enter the Ship owned by it with a different classification society; |
|-----|---------------------------------------------------------------------|

| (h) | 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 Security Trustee 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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.14 | Notice of Mortgage |
|-------|--------------------|

| 14.15 | Sharing of Earnings |
|-------|---------------------|

| 14.16 | Charter Assignment |
|-------|--------------------|

----

| 14.17 | Approved Charter |
|-------|------------------|

| (a) | agree to reduce the term of any Approved Charter; or |
|-----|------------------------------------------------------|

| (b) | agree to vary or waive any provisions relating to the payment of charter hire under an Approved Charter; or |
|-----|-------------------------------------------------------------------------------------------------------------|

| (c) | agree to vary or waive any other material (in the sole opinion of the Agent) provision of the Approved Charter. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| 14.18 | ISPS Code |
|-------|-----------|

| (a) | procure that the Ship owned by that Borrower and the company responsible for that Ship's compliance with the ISPS Code comply with the ISPS Code; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | maintain for that Ship an ISSC; and |
|-----|-------------------------------------|

| (c) | notify the Agent promptly in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| 15 | SECURITY COVER |
|----|----------------|

| 15.1 | Minimum required security cover |
|------|---------------------------------|

| (a) | the aggregate of the market values (determined as provided in Clause 15.3) of the Ships; plus |
|-----|-----------------------------------------------------------------------------------------------|

| (b) | the net realisable value of any additional security previously provided under this Clause 15, |
|-----|-----------------------------------------------------------------------------------------------|

| 15.2 | Provision of additional security; prepayment |
|------|----------------------------------------------|

----

| 15.3 | Valuation of Ships |
|------|--------------------|

| (a) | as at a date not more than 14 days prior; |
|-----|-------------------------------------------|

| (b) | by an independent sale and purchase shipbroker, one of which the Agent has approved or appointed for the purpose and the second of which the Borrowers have appointed and the Agent has approved for the purpose; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | with or without physical inspection of the Ship (as the Agent may require); |
|-----|-----------------------------------------------------------------------------|

| (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, free of any existing charter or other contract of employment; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale which shall include brokers' commissions in an amount or up to 0.5% of value as otherwise determined in accordance with (b) – (d) above. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.4 | Value of additional vessel security |
|------|-------------------------------------|

| 15.5 | Valuations binding |
|------|--------------------|

| 15.6 | Provision of information |
|------|--------------------------|

| 15.7 | Payment of valuation expenses |
|------|-------------------------------|

| 15.8 | Frequency of valuations |
|------|-------------------------|

----

| 16 | PAYMENTS AND CALCULATIONS |
|----|---------------------------|

| 16.1 | Currency and method of payments |
|------|---------------------------------|

| (a) | by not later than 11.00 a.m. (New York City time) on the due date; |
|-----|--------------------------------------------------------------------|

| (b) | in same day Dollar funds settled through the New York Clearing House Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the Agent shall specify as being customary at the time for the settlement of international transactions of the type contemplated by this Agreement); |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in the case of an amount payable by a Lender to the Agent or by any Borrower to the Agent or any Lender, to the account of the Agent at CREDIT SUISSE AG, Basel, Switzerland, (Credit Suisse AG , Ship Finance, IBAN Number: CH92 0483 5950 0000 9878 0, SWIFT: CRESCHZZ40A), or to such other account with such other bank as the Agent may from time to time notify to the Borrowers and the other Creditor Parties; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | in the case of an amount payable to the Security Trustee, to such account as it may from time to time notify to the Borrowers and the other Creditor Parties. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Payment on non-Business Day |
|------|-----------------------------|

| (a) | the due date shall be extended to the next succeeding Business Day; or |
|-----|------------------------------------------------------------------------|

| (b) | if the next succeeding Business Day falls in the next calendar month, the due date shall be brought forward to the immediately preceding Business Day, |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Basis for calculation of periodic payments |
|------|--------------------------------------------|

| 16.4 | Distribution of payments to Creditor Parties |
|------|----------------------------------------------|

| (a) | any amount received by the Agent under a Finance Document for distribution or remittance to a Lender, a Swap Counterparty or the Security Trustee shall be made available by the Agent to that Lender, that Swap Counterparty or, as the case may be, the Security Trustee by payment, with funds having the same value as the funds received, to such account as the Lender and the Swap Counterparty or the Security Trustee may have notified to the Agent not less than 5 Business Days previously; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | amounts to be applied in satisfying amounts of a particular category which are due to the Lenders and/or the Swap Counterparties generally shall be distributed by the Agent to each Lender and each Swap Counterparty pro rata to the amount in that category which is due to it. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.5 | Permitted deductions by Agent |
|------|-------------------------------|

| 16.6 | Agent only obliged to pay when monies received |
|------|------------------------------------------------|

| 16.7 | Refund to Agent of monies not received |
|------|----------------------------------------|

| (a) | refund the sum in full to the Agent; and |
|-----|------------------------------------------|

| (b) | pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding or other loss, liability or expense incurred by the Agent as a result of making the sum available before receiving it. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.8 | Agent may assume receipt |
|------|--------------------------|

| 16.9 | Creditor Party accounts |
|------|-------------------------|

| 16.10 | Agent's memorandum account |
|-------|----------------------------|

| 16.11 | Accounts prima facie evidence |
|-------|-------------------------------|

| 17 | APPLICATION OF RECEIPTS |
|----|-------------------------|

| 17.1 | Normal order of application |
|------|-----------------------------|

----

| (a) | FIRST:  in or towards satisfaction of any amounts then due and payable under the Finance Documents and the Master Agreements in the following order and proportions: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | first, in or towards satisfaction pro rata of all amounts then due and payable to the Creditor Parties under the Finance Documents other than those amounts referred to at paragraphs (ii) and (iii) (including, but without limitation, all amounts payable by the Borrowers under Clauses 20, 21, and 22 of this Agreement or by the Borrowers or any Security Party under any corresponding or similar provision in any other Finance Document or in any Master Agreement); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | secondly, in or towards satisfaction pro rata of any and all amounts of interest or default interest payable to the Creditor Parties under the Finance Documents  and the Master Agreements (and, for this purpose, the expression "interest" shall include any net amount which the Borrowers shall have become liable to pay or deliver under section 2(e) (Obligations) of any Master Agreement but shall have failed to pay or deliver to the relevant Creditor Party or Swap Counterparty (as the case may be) at the time of application or distribution under this Clause 17); and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | thirdly, in or towards satisfaction pro rata of the Loan and the Swap Exposure of each Swap Counterparty (in the case of the latter, calculated as at the actual Early Termination Date applying to each particular Designated Transaction, or if no such Early Termination Date shall have occurred, calculated as if an Early Termination Date occurred on the date of application or distribution hereunder); and |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | SECONDLY:  if an Event of Default or a Potential Event of Default shall have occurred, in retention of an amount equal to any amount not then due and payable under any Finance Document or any Master Agreement but which the Agent, by notice to the Borrowers, the Security Parties and the other Creditor Parties, states in its opinion will or may become due and payable in the future and which the Borrowers (in the reasonable opinion of the Agent) will not be able to pay when such amounts become due and payable and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the provisions of Clause 17.1(a); and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | THIRDLY:  any surplus shall be paid to the Borrower or to any other person entitled to it. |
|-----|------------------------------------------------------------------------------------------------------|

| 17.2 | Variation of order of application |
|------|-----------------------------------|

| 17.3 | Notice of variation of order of application |
|------|---------------------------------------------|

| 17.4 | Appropriation rights overridden |
|------|---------------------------------|

----

| 18 | APPLICATION OF EARNINGS |
|----|-------------------------|

| 18.1 | Payment of Earnings and Swap Payments |
|------|---------------------------------------|

| 18.2 | Application of Earnings |
|------|-------------------------|

| (a) | FIRST: in or towards meeting the costs, fees and expenses payable by the Borrowers under the Finance Documents; |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (b) | SECONDLY:  in or towards making the payments of interest due to the Agent pursuant to Clauses 5.1 and 7; |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (c) | THIRDLY: in or towards making the reductions due pursuant to Clause 8.1 and of amounts due to a Swap Bank under any Master Agreement; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (d) | FOURTHLY: in or towards meeting the costs and expenses from time to time incurred by or on behalf of the Borrowers in connection with the operation of the Ships; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | FIFTHLY:  as to any surplus from time to time arising on an Earnings Account following application as aforesaid, to be paid to the relevant Borrower or to whomsoever it may direct. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3 | Location of accounts |
|------|----------------------|

| (a) | comply with any requirement of the Agent as to the location or re-location of the Earnings Accounts (or any of them); and |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (b) | execute any documents which the Agent specifies to create or maintain in favour of the Security Trustee a Security Interest over (and/or rights of set-off, consolidation or other rights in relation to) the Earnings Accounts. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4 | Debits for expenses etc. |
|------|--------------------------|

| 18.5 | Borrowers' obligations unaffected |
|------|-----------------------------------|

| (a) | the liability of the Borrowers to make payments of principal and interest on the due dates; or |
|-----|------------------------------------------------------------------------------------------------|

----

| (b) | any other liability or obligation of the Borrowers or any Security Party under any Finance Document. |
|-----|------------------------------------------------------------------------------------------------------|

| 19 | EVENTS OF DEFAULT |
|----|-------------------|

| 19.1 | Events of Default |
|------|-------------------|

| (a) | any Borrower or any Security Party fails to pay when due or (if so payable) on demand any sum payable under a Finance Document or under any document relating to a Finance Document; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any breach occurs of Clause 9.2, 11.2, 11.3, 12.2, 12.3, 12.4, 15.2 or clause 11.17 (Financial Covenants) of the Guarantee to be granted by Dynagas or paragraph (k) of this Clause 19; or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | any breach by any Borrower, any Security Party or the Approved Manager occurs of any provision of a Finance Document (other than a breach covered by paragraphs (a) or (b)) which, in the reasonable opinion of the Majority Lenders, is capable of remedy, and such default continues unremedied 10 days after written notice from the Agent requesting action to remedy the same; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | (subject to any applicable grace period specified in the Finance Document) any breach by any Borrower, any Security Party or the Approved Manager occurs of any provision of a Finance Document (other than a breach falling within paragraphs (a), (b) or (c)); or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | any representation, warranty or statement made or repeated by, or by an officer of, a Borrower, a Security Party or the Approved Manager in a Finance Document or in a Drawdown Notice or any other notice or document relating to a Finance Document is untrue or misleading when it is made or repeated ; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | any of the following occurs in relation to any Financial Indebtedness (and in the case of a Guarantor, such Financial Indebtedness to be in excess of $500,000 in aggregate) of a Relevant Person: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | any Financial Indebtedness of a Relevant Person is not paid when due subject to applicable grace periods; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (ii) | any Financial Indebtedness of a Relevant Person becomes due and payable or capable of being declared due and payable prior to its stated maturity date as a consequence of any event of default; or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | a lease, hire purchase agreement or charter creating any Financial Indebtedness of a Relevant Person is terminated by the lessor or owner or becomes capable of being terminated as a consequence of any termination event; or |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee, foreign exchange or other facility, or any swap or other derivative contract or transaction, relating to any Financial Indebtedness of a Relevant Person ceases to be available or becomes capable of being terminated as a result of any event of default, or cash cover is required, or becomes capable of being required, in respect of such a facility as a result of any event of default; or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any Security Interest securing any Financial Indebtedness of a Relevant Person is enforced; or |
|--------|-----|------------------------------------------------------------------------------------------------|

| (g) | any of the following occurs in relation to a Relevant Person: |
|-----|---------------------------------------------------------------|

----

|   | (i) | a Relevant Person becomes unable to pay its debts as they fall due; or |
|--------|-----|------------------------------------------------------------------------|

|   | (ii) | any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress in respect of a sum of, or sums aggregating, $100,000 or more or the equivalent in another currency; or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any administrative or other receiver is appointed over any asset of a Relevant Person; or |
|--------|-------|-------------------------------------------------------------------------------------------|

|   | (iv) | an administrator is appointed (whether by the court or otherwise) in respect of a Relevant Person; or |
|--------|------|-------------------------------------------------------------------------------------------------------|

|   | (v) | any formal declaration of bankruptcy or any formal statement to the effect that a Relevant Person is insolvent or likely to become insolvent is made by a Relevant Person or by the directors of a Relevant Person or, in any proceedings, by a lawyer acting for a Relevant Person; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | a provisional liquidator is appointed in respect of a Relevant Person, a winding up order is made in relation to a Relevant Person or a winding up resolution is passed by a Relevant Person; or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | a resolution is passed, an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by (aa) a Relevant Person, (bb) the members or directors of a Relevant Person, (cc) a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person, or (dd) a government minister or public or regulatory authority of a Pertinent Jurisdiction for or with a view to the winding up of that or another Relevant Person or the appointment of a provisional liquidator or administrator in respect of that or another Relevant Person, or that or another Relevant Person ceasing or suspending business operations or payments to creditors, save that this paragraph does not apply to a fully solvent winding up of a Relevant Person other than the Borrowers or a Guarantor which is, or is to be, effected for the purposes of an amalgamation or reconstruction previously approved by the Majority Lenders and effected not later than 3 months after the commencement of the winding up; or |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by a creditor of a Relevant Person (other than a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person) for the winding up of a Relevant Person or the appointment of a provisional liquidator or administrator in respect of a Relevant Person in any Pertinent Jurisdiction, unless the proposed winding up, appointment of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not with a view to some other insolvency law procedure being implemented instead and either (aa) the application or petition is dismissed or withdrawn within 30 days of being made or presented, or (bb) within 30 days of the administration notice being given or filed, or the other relevant steps being taken, other action is taken which will ensure that there will be no administration and (in both cases (aa) or (bb)) the Relevant Person will continue to carry on business in the ordinary way and without being the subject of any actual, interim or pending insolvency law procedure; or |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | a Relevant Person or its directors take any steps (whether by making or presenting an application or petition to a court, or submitting or presenting a document setting out a proposal or proposed terms, or otherwise) with a view to obtaining, in relation to that or another Relevant Person, any form of moratorium, suspension or deferral of payments, reorganisation of debt (or certain debt) or arrangement with all or a substantial proportion (by number or value) of creditors or of any class of them or any such moratorium, suspension or deferral of payments, reorganisation or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (x) | any meeting of the members or directors, or of any committee of the board or senior management, of a Relevant Person is held or summoned for the purpose of considering a resolution or proposal to authorise or take any action of a type described in paragraphs (iv) to (ix) or a step preparatory to such action, or (with or without such a meeting) the members, directors or such a committee resolve or agree that such an action or step should be taken or should be taken if certain conditions materialise or fail to materialise; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | in a Pertinent Jurisdiction other than England, any event occurs, any proceedings are opened or commenced or any step is taken which, in the opinion of the Majority Lenders is similar to any of the foregoing; or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | any Borrower ceases or suspends carrying on its business or a part of its business which, in the opinion of the Majority Lenders, is material in the context of this Agreement; or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | it becomes unlawful in any Pertinent Jurisdiction or impossible: |
|-----|------------------------------------------------------------------|

|   | (i) | for any Borrower or any Security Party to discharge any liability under a Finance Document or to comply with any other obligation which the Majority Lenders consider material under a Finance Document; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | for the Agent, the Security Trustee or the Lenders or the Swap Banks to exercise or enforce any right under, or to enforce any Security Interest created by, a Finance Document; or |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | any official consent necessary to enable any Borrower to own, operate or charter the Ship owned by it or to enable any Borrower or any Security Party to comply with any provision which the Majority Lenders consider material of a Finance Document is not granted, expires without being renewed, is revoked or becomes liable to revocation or any condition of such a consent is not fulfilled; or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k) | a Change of Control has occurred after the date of this Agreement in connection with Dynagas or the General Partner; or |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (l) | any provision which the Majority Lenders consider material of a Finance Document proves to have been or becomes invalid or unenforceable, or a Security Interest created by a Finance Document proves to have been or becomes invalid or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security Interest or any other third party claim or interest; or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m) | the security constituted by a Finance Document is in any way imperilled or in jeopardy; or |
|-----|--------------------------------------------------------------------------------------------|

| (n) | an Event of Default (as defined in section 14 of a Master Agreement) occurs; or |
|-----|---------------------------------------------------------------------------------|

| (o) | a Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in full force and effect for any reason at any time when there are any existing or continuing Designated Transactions, except with the consent of the Agent, acting with the authorisation of the Majority Lenders; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p) | any other event occurs or any other circumstances arise or develop including, without limitation: |
|-----|---------------------------------------------------------------------------------------------------|

|   | (i) | a material adverse change in the financial position, state of affairs or prospects of a Borrower or a Guarantor; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | any accident or other event involving a Ship, |
|--------|------|-----------------------------------------------|

| (q) | an Approved Charter is terminated or amended without the prior written consent of the Agent unless otherwise permitted pursuant to the terms and conditions of this Agreement or ceases to remain in full force and effect other than by mere effluxion; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r) | if any of the events or circumstances set out in any of the above sub-Clauses 19.1(c), (d) or (e) occurs in respect of the Approved Manager, such event or circumstance will not be considered an Event of Default if within 20 days of such event or circumstance occurring or arising:- |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the management agreements with that Approved Manager are terminated by each of the Borrowers; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (ii) | a new management agreement in respect of each Ship is entered into between each Borrower and a newly appointed Approved Manager; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the Agent receives from the newly appointed Approved Manager, those documents referred to in paragraph 3 of Schedule 4, Part B (in respect of each Ship) and any other documents as the Agent may require in its discretion. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Actions following an Event of Default |
|------|---------------------------------------|

| (a) | the Agent may, and if so instructed by the Majority Lenders, the Agent shall: |
|-----|-------------------------------------------------------------------------------|

|   | (i) | serve on the Borrowers a notice stating that all or part of the Commitments and of the other obligations of each Lender to the Borrowers under this Agreement are cancelled; and/or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | serve on the Borrowers a notice stating that all or part of the Loan together with accrued interest and all other amounts accrued or owing under this Agreement are immediately due and payable or are due and payable on demand; and/or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | take any other action which, as a result of the Event of Default or any notice served under paragraph (i) or (ii), the Agent and/or the Lenders are entitled to take under any Finance Document or any applicable law; and/or |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the Security Trustee may, and if so instructed by the Agent, acting with the authorisation of the Majority Lenders, the Security Trustee shall take any action which, as a result of the Event of Default or any notice served under paragraph (a)(i) or (a)(ii), the Security Trustee, the Agent and/or the Lenders and/or the Swap Counterparties are entitled to take under any Finance Document or any applicable law. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.3 | Termination of Commitments |
|------|----------------------------|

| 19.4 | Acceleration of Loan |
|------|----------------------|

----

| 19.5 | Multiple notices; action without notice |
|------|-----------------------------------------|

| 19.6 | Notification of Creditor Parties and Security Parties |
|------|-------------------------------------------------------|

| 19.7 | Creditor Party rights unimpaired |
|------|----------------------------------|

| 19.8 | Exclusion of Creditor Party liability |
|------|---------------------------------------|

| (a) | for any loss caused by an exercise of rights under, or enforcement of a Security Interest created by, a Finance Document or by any failure or delay to exercise such a right or to enforce such a Security Interest; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | as mortgagee in possession or otherwise, for any income or principal amount which might have been produced by or realised from any asset comprised in such a Security Interest or for any reduction (however caused) in the value of such an asset, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.9 | Relevant Persons |
|------|------------------|

| 19.10 | Interpretation |
|-------|----------------|

----

| 19.11 | Position of Swap Counterparties |
|-------|---------------------------------|

| 20 | FEES AND EXPENSES |
|----|-------------------|

| 20.1 | Arrangement, commitment, agency fees |
|------|--------------------------------------|

| (a) | A non-refundable arrangement fee of $969,862 (representing 0.37 per cent. of the Total Commitments) on the date of this Agreement (less any amount which may have been paid to the Agent on account of such fee prior to the date of this Agreement), for distribution among the Lenders in the proportions agreed by the Agent and the Lenders; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | quarterly in arrears during the period from (and including) 25 October 2013 until (and including) the last day of the Availability Period for the account of the Lenders, a commitment fee at the rate of 1.40 per cent. per annum on the amount of the Total Commitments less the amount of the Loan, for distribution among the Lenders pro rata to their Commitments; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | Costs of negotiation, preparation etc. |
|------|----------------------------------------|

| 20.3 | Costs of variations, amendments, enforcement etc. |
|------|---------------------------------------------------|

| (a) | any amendment or supplement to a Finance Document, or any proposal for such an amendment to be made; |
|-----|------------------------------------------------------------------------------------------------------|

| (b) | any consent or waiver by the Lenders, the Swap Banks, the Majority Lenders or the Creditor Party concerned under or in connection with a Finance Document, or any request for such a consent or waiver; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the valuation of any security provided or offered under Clause 15 or any other matter relating to such security; or |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (d) | any step taken by the Lender or the Swap Bank concerned with a view to the protection, exercise or enforcement of any right or Security Interest created by a Finance Document or for any similar purpose. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.4 | Documentary taxes |
|------|-------------------|

----

| 20.5 | Certification of amounts |
|------|--------------------------|

| 21 | INDEMNITIES |
|----|-------------|

| 21.1 | Indemnities regarding borrowing and repayment of Loan |
|------|-------------------------------------------------------|

| (a) | an Advance not being borrowed on the date specified in the Drawdown Notice for any reason other than a default by the Lender claiming the indemnity; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the last day of an Interest Period or other relevant period; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | any failure (for whatever reason) by the Borrowers to make payment of any amount due under a Finance Document on the due date or, if so payable, on demand (after giving credit for any default interest paid by the Borrowers on the amount concerned under Clause 7); and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the occurrence of an Event of Default or a Potential Event of Default and/or the acceleration of repayment of the Loan under Clause 19, |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| 21.2 | Breakage costs |
|------|----------------|

| (a) | in liquidating or employing deposits from third parties acquired or arranged to fund or maintain all or any part of its Contribution and/or any overdue amount (or an aggregate amount which includes its Contribution or any overdue amount); and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | in terminating, or otherwise in connection with, any interest and/or currency swap or any other transaction entered into (whether with another legal entity or with another office or department of the Lender concerned) to hedge any exposure arising under this Agreement or that part which the Lender concerned determines is fairly attributable to this Agreement of the amount of the liabilities, expenses or losses (including losses of prospective profits) incurred by it in terminating, or otherwise in connection with, a number of transactions of which this Agreement is one. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.3 | Miscellaneous indemnities |
|------|---------------------------|

----

| (a) | any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Agent, the Security Trustee or any other Creditor Party or by any receiver appointed under a Finance Document; or |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | any other Pertinent Matter, |
|-----|-----------------------------|

| 21.4 | Currency indemnity |
|------|--------------------|

| (a) | making or lodging any claim or proof against any Borrower or any Security Party, whether in its liquidation, any arrangement involving it or otherwise; or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | obtaining an order or judgment from any court or other tribunal; or |
|-----|---------------------------------------------------------------------|

| (c) | enforcing any such order or judgment, |
|-----|---------------------------------------|

| 21.5 | Application to Master Agreements |
|------|----------------------------------|

| 21.6 | Certification of amounts |
|------|--------------------------|

----

| 21.7 | Sums deemed due to a Lender |
|------|-----------------------------|

| 21.8 | Contingent and future indemnity liabilities |
|------|---------------------------------------------|

| 22 | NO SET-OFF OR TAX DEDUCTION |
|----|-----------------------------|

| 22.1 | No deductions |
|------|---------------|

| (a) | without any form of set-off, cross-claim or condition; and |
|-----|------------------------------------------------------------|

| (b) | free and clear of any tax deduction except a tax deduction which a Borrower is required by law to make. |
|-----|---------------------------------------------------------------------------------------------------------|

| 22.2 | Grossing-up for taxes |
|------|-----------------------|

| (a) | that Borrower shall notify the Agent as soon as it becomes aware of the requirement; |
|-----|--------------------------------------------------------------------------------------|

| (b) | that Borrower shall pay the tax deducted to the appropriate taxation authority promptly, and in any event before any fine or penalty arises; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the amount due in respect of the payment shall be increased by the amount necessary to ensure that each Creditor Party receives and retains (free from any liability relating to the tax deduction) a net amount which, after the tax deduction, is equal to the full amount which it would otherwise have received. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.3 | Evidence of payment of taxes |
|------|------------------------------|

| 22.4 | Exclusion of tax on overall net income |
|------|----------------------------------------|

| 22.5 | Application to Master Agreements |
|------|----------------------------------|

----

| 23 | ILLEGALITY, ETC |
|----|-----------------|

| 23.1 | Illegality |
|------|------------|

| (a) | unlawful or prohibited as a result of the introduction of a new law, an amendment to an existing law or a change in the manner in which an existing law is or will be interpreted or applied; or |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | contrary to, or inconsistent with, any regulation, |
|-----|----------------------------------------------------|

| 23.2 | Notification of illegality |
|------|----------------------------|

| 23.3 | Notification and effect of illegality |
|------|---------------------------------------|

| 24 | INCREASED COSTS |
|----|-----------------|

| 24.1 | Increased costs |
|------|-----------------|

| (a) | the introduction or alteration after the date of this Agreement of a law or an alteration after the date of this Agreement in the manner in which a law is interpreted or applied (disregarding any effect which relates to the application to payments under this Agreement of a tax on the Lender's overall net income); or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | complying with any regulation (including any which relates to capital adequacy or liquidity controls or which affects the manner in which the Notifying Lender allocates capital resources to its obligations under this Agreement) which is introduced, or altered, or the interpretation or application of which is altered, after the date of this Agreement, |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.2 | Meaning of "increased cost".  In this Clause 24, "increased cost" means, in relation to a Notifying Lender: |
|------|-----------------------------------------------------------------------------------------------------------------------|

| (a) | an additional or increased cost incurred as a result of, or in connection with, the Notifying Lender having entered into, or being a party to, this Agreement or a Transfer Certificate, of |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | a reduction in the amount of any payment to the Notifying Lender under this Agreement or in the effective return which such a payment represents to the Notifying Lender or on its capital; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | an additional or increased cost of funding all or maintaining all or any of the advances comprised in a class of advances formed by or including the Notifying Lender's Contribution or (as the case may require) the proportion of that cost attributable to the Contribution; or |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the implementation or application of or compliance with 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 (the "Basel II Accord") or any other  law or regulation implementing the Basel II Accord or any of the approaches provided for and allowed to be used by banks under or in connection with the Basel II Accord as well as "the 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 ("Basel III Accord") or any other law or regulation implementing the Basel III Accord or any of the approaches provided for and allowed to be used by banks under or in connection with the Basel III Accord and in both case as from time to time implemented by the Notifying Lender (whether such implementation, application or compliance is by a government, regulator, supervisory authority, the Notifying Lender or its holding company), |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | an additional or increased cost incurred as a result of, or in connection with, the Notifying Lender having entered into, or being a party to, this Agreement of funding or maintaining the Loan or performing its obligations under this Agreement, or of having outstanding all or any part of the Loan or other unpaid sums; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a reduction in the amount of any payment to the Notifying Lender under this Agreement or in the effective return which such a payment represents to the Notifying Lender or on its capital; or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | an additional or increased cost of funding or maintaining all or any of the advances comprised in a class of advances formed by or including the Loan or (as the case may require) the proportion of that cost attributable to the Loan; or |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | a liability to make a payment which is calculated by reference to any amounts received or receivable by the Notifying Lender under this Agreement; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.3 | Notification to Borrowers of claim for increased costs |
|------|--------------------------------------------------------|

----

| 24.4 | Payment of increased costs |
|------|----------------------------|

| 24.5 | Notice of prepayment |
|------|----------------------|

| 24.6 | Prepayment |
|------|------------|

| (a) | on the date on which the Agent serves that notice, the Commitment of the Notifying Lender shall be cancelled; and |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (b) | on the date specified in its notice of intended prepayment, the Borrowers shall prepay (without premium or penalty) the Notifying Lender's Contribution, together with accrued interest thereon at the applicable rate plus the Margin and the Mandatory Cost (if any). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.7 | Application of prepayment |
|------|---------------------------|

| 25 | SET-OFF |
|----|---------|

| 25.1 | Application of credit balances |
|------|--------------------------------|

| (a) | apply any balance (whether or not then due) which at any time stands to the credit of any account in the name of a Borrower at any office in any country of that Creditor Party in or towards satisfaction of any sum then due from that Borrower to that Creditor Party under any of the Finance Documents; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | for that purpose: |
|-----|-------------------|

|   | (i) | break, or alter the maturity of, all or any part of a deposit of that Borrower; |
|--------|-----|---------------------------------------------------------------------------------|

|   | (ii) | convert or translate all or any part of a deposit or other credit balance into Dollars; and |
|--------|------|---------------------------------------------------------------------------------------------|

|   | (iii) | enter into any other transaction or make any entry with regard to the credit balance which the Creditor Party concerned considers appropriate. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Existing rights unaffected |
|------|----------------------------|

----

| 25.3 | Sums deemed due to a Lender |
|------|-----------------------------|

| 25.4 | No Security Interest |
|------|----------------------|

| 26 | TRANSFERS AND CHANGES IN LENDING OFFICES |
|----|------------------------------------------|

| 26.1 | Transfer by Borrowers |
|------|-----------------------|

| 26.2 | Transfer by a Lender |
|------|----------------------|

| (a) | its rights in respect of all or part of its Contribution; or |
|-----|--------------------------------------------------------------|

| (b) | its obligations in respect of all or part of its Commitment; or |
|-----|-----------------------------------------------------------------|

| (c) | a combination of (a) and (b), |
|-----|-------------------------------|

| 26.3 | Transfer Certificate, delivery and notification |
|------|-------------------------------------------------|

| (a) | sign the Transfer Certificate on behalf of itself, the Borrowers, the Security Parties, the Security Trustee and each of the other Lenders and each of the Swap Banks; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | on behalf of the Transferee Lender, send to each Borrower and each Security Party letters or faxes notifying them of the Transfer Certificate and attaching a copy of it; and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | send to the Transferee Lender copies of the letters or faxes sent under paragraph (b) above, |
|-----|----------------------------------------------------------------------------------------------|

----

| 26.4 | Effective Date of Transfer Certificate |
|------|----------------------------------------|

| 26.5 | No transfer without Transfer Certificate |
|------|------------------------------------------|

| 26.6 | Lender re-organisation; waiver of Transfer Certificate |
|------|--------------------------------------------------------|

| 26.7 | Effect of Transfer Certificate |
|------|--------------------------------|

| (a) | to the extent specified in the Transfer Certificate, all rights and interests (present, future or contingent) which the Transferor Lender has under or by virtue of the Finance Documents are assigned to the Transferee Lender absolutely, free of any defects in the Transferor Lender's title and of any rights or equities which any Borrower or any Security Party had against the Transferor Lender; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the Transferor Lender's Commitment is discharged to the extent specified in the Transfer Certificate; |
|-----|-------------------------------------------------------------------------------------------------------|

| (c) | the Transferee Lender becomes a Lender with the Contribution previously held by the Transferor Lender and a Commitment of an amount specified in the Transfer Certificate; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | the Transferee Lender becomes bound by all the provisions of the Finance Documents which are applicable to the Lenders generally, including those about pro-rata sharing and the exclusion of liability on the part of, and the indemnification of, the Agent and the Security Trustee and, to the extent that the Transferee Lender becomes bound by those provisions (other than those relating to exclusion of liability), the Transferor Lender ceases to be bound by them; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | any part of the Loan which the Transferee Lender advances after the Transfer Certificate's effective date ranks in point of priority and security in the same way as it would have ranked had it been advanced by the transferor, assuming that any defects in the transferor's title and any rights or equities of any Borrower or any Security Party against the Transferor Lender had not existed; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | the Transferee Lender becomes entitled to all the rights under the Finance Documents which are applicable to the Lenders generally, including but not limited to those relating to the |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (g) | in respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document or any misrepresentation made in or in connection with a Finance Document, the Transferee Lender shall be entitled to recover damages by reference to the loss incurred by it as a result of the breach or misrepresentation, irrespective of whether the original Lender would have incurred a loss of that kind or amount. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.8 | Maintenance of register of Lenders |
|------|------------------------------------|

| 26.9 | Reliance on register of Lenders |
|------|---------------------------------|

| 26.10 | Authorisation of Agent to sign Transfer Certificates |
|-------|------------------------------------------------------|

| 26.11 | Registration fee |
|-------|------------------|

| 26.12 | Sub-participation; subrogation assignment |
|-------|-------------------------------------------|

| 26.13 | Disclosure of information |
|-------|---------------------------|

| 26.14 | Change of lending office |
|-------|--------------------------|

----

| (a) | the date on which the Agent receives the notice; and |
|-----|------------------------------------------------------|

| (b) | the date, if any, specified in the notice as the date on which the change will come into effect. |
|-----|--------------------------------------------------------------------------------------------------|

| 26.15 | Notification |
|-------|--------------|

| 26.16 | Security over Lenders' rights |
|-------|-------------------------------|

| (a) | any charge, assignment or other Security Interest to secure obligations to a federal reserve or central bank; and |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (b) | in the case of any Lender which is a fund, any charge, assignment or other Security Interest granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | except that no such charge, assignment or Security Interest shall: |
|-----|--------------------------------------------------------------------|

|   | (i) | release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the Lender as a party to any of the Finance Documents; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | require any payments to be made by any Borrower or any Security Party or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27 | VARIATIONS AND WAIVERS |
|----|------------------------|

| 27.1 | Variations, waivers etc. by Majority Lenders |
|------|----------------------------------------------|

| 27.2 | Variations, waivers etc. requiring agreement of all Lenders |
|------|-------------------------------------------------------------|

| (a) | a reduction in the Margin; |
|-----|----------------------------|

----

| (b) | a postponement to the date for, or a reduction in the amount of, any payment of principal, interest, fees or other sum payable under this Agreement; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | an increase in any Lender's Commitment; |
|-----|-----------------------------------------|

| (d) | a change to the definition of "Majority Lenders"; |
|-----|---------------------------------------------------|

| (e) | a change to Clause 3 or this Clause 27; |
|-----|-----------------------------------------|

| (f) | any release of, or material variation to, a Security Interest, guarantee, indemnity or subordination arrangement set out in a Finance Document; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | any other change or matter in respect of which this Agreement or another Finance Document expressly provides that each Lender's consent is required. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.3 | Exclusion of other or implied variations |
|------|------------------------------------------|

| (a) | a provision of this Agreement or another Finance Document; or |
|-----|---------------------------------------------------------------|

| (b) | an Event of Default; or |
|-----|-------------------------|

| (c) | a breach by a Borrower or a Security Party of an obligation under a Finance Document or the general law; or |
|-----|-------------------------------------------------------------------------------------------------------------|

| (d) | any right or remedy conferred by any Finance Document or by the general law, |
|-----|------------------------------------------------------------------------------|

| 28 | NOTICES |
|----|---------|

| 28.1 | General |
|------|---------|

| 28.2 | Addresses for communications |
|------|------------------------------|

| (a) | to the Borrowers: | 94 Vassileos Georgiou B' and 2 Nikis Street |
|-----|-------------------|---------------------------------------------|

----

| (b) | to a Lender: | At the address below its name in Schedule 1 or a Swap Bank Schedule 2 or (as the case may require) in the relevant Transfer Certificate. |
|-----|--------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | to the Agent: | St. Alban-Graben 1-3 |
|-----|---------------|----------------------|

| (d) | to the Security |
|-----|-----------------|

| Trustee: | St. Alban-Graben 1-3 |
|----------|----------------------|

|   | or to such other address as the relevant party may notify the Agent or, if the relevant party is the Agent or the Security Trustee, the Borrowers, the Lenders, the Swap Banks and the Security Parties. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.3 | Effective date of notices |
|------|---------------------------|

| (a) | a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | a notice which is sent by fax shall be deemed to be served, and shall take effect, 2 hours after its transmission is completed. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| 28.4 | Service outside business hours |
|------|--------------------------------|

| (a) | on a day which is not a business day in the place of receipt; or |
|-----|------------------------------------------------------------------|

| (b) | on such a business day, but after 5 p.m. local time, |
|-----|------------------------------------------------------|

| 28.5 | Illegible notices |
|------|-------------------|

| 28.6 | Valid notices |
|------|---------------|

----

| (a) | the failure to serve it in accordance with the requirements of this Agreement or other Finance Document, as the case may be, has not caused any party to suffer any significant loss or prejudice; or |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | in the case of incorrect and/or incomplete contents, it should have been reasonably clear to the party on which the notice was served what the correct or missing particulars should have been. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.7 | Electronic communication |
|------|--------------------------|

| · | the unencrypted information is transported over an open, publicly accessible network and can, in principle, be viewed by others, thereby allowing conclusions to be drawn about a banking relationship; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the information can be changed and manipulated by a third party; |
|--------|------------------------------------------------------------------|

| · | the sender's identity (sender of the e-mail) can be assumed or otherwise manipulated; |
|--------|---------------------------------------------------------------------------------------|

| · | the exchange of information can be delayed or disrupted due to transmission errors, technical faults, disruptions, malfunctions, illegal interventions, network overload, the malicious blocking of electronic access by third parties, or other shortcomings on the part of the network provider. In certain situations, time-critical orders and instructions might not be processed on time; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the Agent assumes no liability for any loss incurred as a result of manipulation of the e-mail address or content nor is it liable for any loss incurred by the Borrowers and any other Relevant Persons due to interruptions and delays in transmission caused by technical problems. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.8 | The Lender is entitled to assume that all the orders and instructions, and communications in general, received from a Borrower or a third party are from an authorized individual, irrespective of the existing signatory rights in accordance with the commercial register (or any other applicable equivalent document) or the specimen signature provided to the Lender. The Borrowers shall further procure that all third parties referred to herein agree with the use of e-mails and are aware of the above terms and conditions related to the use of e-mail. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.9 | English language |
|------|------------------|

| 28.10 | Meaning of "notice" |
|-------|---------------------|

| 29 | JOINT AND SEVERAL LIABILITY |
|----|-----------------------------|

| 29.1 | General |
|------|---------|

----

| 29.2 | No impairment of Borrower's obligations |
|------|-----------------------------------------|

| (a) | this Agreement being or later becoming void, unenforceable or illegal as regards any other Borrower; |
|-----|------------------------------------------------------------------------------------------------------|

| (b) | any Lender or the Security Trustee entering into any rescheduling, refinancing or other arrangement of any kind with any other Borrower; |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | any Lender or the Security Trustee releasing any other Borrower or any Security Interest created by a Finance Document; or |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (d) | any combination of the foregoing. |
|-----|-----------------------------------|

| 29.3 | Principal debtors |
|------|-------------------|

| 29.4 | Subordination |
|------|---------------|

| (a) | claim any amount which may be due to it from any other Borrower whether in respect of a payment made, or matter arising out of, this Agreement or any Finance Document, or any matter unconnected with this Agreement or any Finance Document; or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | take or enforce any form of security from any other Borrower for such an amount, or in any other way seek to have recourse in respect of such an amount against any asset of any other Borrower; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | set off such an amount against any sum due from it to any other Borrower; or |
|-----|------------------------------------------------------------------------------|

| (d) | prove or claim for such an amount in any liquidation, administration, arrangement or similar procedure involving any other Borrower or other Security Party; or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | exercise or assert any combination of the foregoing. |
|-----|------------------------------------------------------|

| 29.5 | Borrower's required action |
|------|----------------------------|

| 30 | SUPPLEMENTAL |
|----|--------------|

| 30.1 | Rights cumulative, non-exclusive |
|------|----------------------------------|

| (a) | cumulative; |
|-----|-------------|

| (b) | may be exercised as often as appears expedient; and |
|-----|-----------------------------------------------------|

----

| (c) | shall not, unless a Finance Document explicitly and specifically states so, be taken to exclude or limit any right or remedy conferred by any law. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 30.2 | Severability of provisions |
|------|----------------------------|

| 30.3 | Counterparts |
|------|--------------|

| 30.4 | Third party rights |
|------|--------------------|

| 30.5 | Disclosure |
|------|------------|

| (a) | the Ships or any other vessel owned or operated by a Security Party; |
|-----|----------------------------------------------------------------------|

| (b) | the negotiation, drafting and content of this Agreement, the Finance Documents and any Master Agreement; |
|-----|----------------------------------------------------------------------------------------------------------|

| (c) | the Loan; or |
|-----|--------------|

| (d) | any Security Party |
|-----|--------------------|

| 31 | LAW AND JURISDICTION |
|----|----------------------|

| 31.1 | English law |
|------|-------------|

| 31.2 | Exclusive English jurisdiction |
|------|--------------------------------|

| 31.3 | Choice of forum for the exclusive benefit of the Creditor Parties |
|------|-------------------------------------------------------------------|

| (a) | to commence proceedings in relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b) | to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings in England. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.4 | Process agent |
|------|---------------|

| 31.5 | Creditor Party rights unaffected |
|------|----------------------------------|

| 31.6 | Meaning of "proceedings" |
|------|--------------------------|

----

| Lender           | Lending Office                                              | Commitment(US Dollars) |
|------------------|-------------------------------------------------------------|------------------------|
|             |                                                        |                   |
| CREDIT SUISSE AG | St. Alban-Graben 1-3Basel, Switzerland4002 BaselSwitzerland | 262,125,000            |
|             |                                                        |                   |
|             | Fax No: +41 61 266 79 39                                    |                   |
|             |                                                        |                   |
|             | FAO: Ship Finance(Attn: Ms Lydia Lampadaridou-Gonzalez)     |

----

| Swap Bank        | Booking Office                                              |
|------------------|-------------------------------------------------------------|
|             |                                                        |
| CREDIT SUISSE AG | St. Alban-Graben 1-3Basel, Switzerland4002 BaselSwitzerland |
|             |                                                        |
|             | Fax No: +41 61 266 79 39                                    |
|             |                                                        |
|             | Fax No: +41 61 266 79 39                                    |
|             |                                                        |
|             | FAO: Ship Finance(Attn: Ms Lydia Lampadaridou-Gonzalez)     |
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| 1 | We refer to the loan agreement (the "Loan Agreement") dated [l] November 2013 and made between ourselves, as Borrowers, the Lenders referred to therein, and yourselves as Agent and as Security Trustee in connection with a reducing revolving credit facility of up to US$262,125,000.  Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice. |
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| 2 | We request to borrow as follows: |
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| (a) | Amount: US$[l]; |
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| (b) | Drawdown Date: [l]; |
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| (c) | Duration of the Interest Period shall be [l] months; and |
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| (d) | Payment instructions : account in our name and numbered [l] with [l] of [l]. |
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| 3 | We represent and warrant that: |
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| (a) | the representations and warranties in Clause 10 of the Loan Agreement would remain true and not misleading if repeated on the date of this notice with reference to the circumstances now existing; and |
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| (b) | no Event of Default or Potential Event of Default has occurred or will result from the borrowing of the Loan. |
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| 4 | This notice cannot be revoked without the prior consent of the Majority Lenders. |
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| 1 | A duly executed original of each Finance Document (and of each document then required to be delivered by each Finance Document) other than those referred to in Part B. |
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| 2 | Copies of the certificate of incorporation and constitutional documents of each Borrower and each other Security Party, including an executed copy of the LPA. |
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| 3 | Copies of resolutions of the shareholders and directors of each Borrower and each Security Party authorising the execution of each of the Finance Documents to which that Borrower or that Security Party is a party and, in the case of a Borrower, authorising named officers to give the Drawdown Notices and other notices under this Agreement. |
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| 4 | The original of any power of attorney under which any Finance Document is executed on behalf of a Borrower or a Security Party. |
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| 5 | Copies of all consents which any Borrower or any Security Party requires to enter into, or make any payment under, any Finance Document. |
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| 6 | The originals of any mandates or other documents required in connection with the opening or operation of the Earnings Accounts. |
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| 7 | The Market Value of each Ship, stated to be for the purposes of this Agreement and dated not earlier than 15 days before its respective Drawdown Date. |
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| 8 | Documentary evidence that the agent for service of process named in Clause 31 has accepted its appointment. |
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| 9 | Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of the Marshall Islands and such other relevant jurisdictions as the Agent may require. |
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| 10 | If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent. |
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| 11 | Evidence satisfactory to the Agent in its absolute discretion that the Existing Guarantees have been irrevocably and unconditionally released and the Borrowers and Dynagas have no further obligations thereunder. |
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| 12 | All such documentation and information as the Agent may require from any Security Party pursuant to a Lenders' "know your customer" requirements, including but not limited to the Swiss "Declaration A" document duly completed evidencing the Permitted Holders and the ultimate beneficial owners of each Borrower. |
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| 1 | A duly executed original of the Mortgages, the General Assignments, the Accounts Pledges, the Charter Assignments in respect of the Approved Charters, the Approved Manager's Undertakings in respect of each Ship (and of each document to be delivered by each of them). |
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| 2 | Documentary evidence that: |
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| (a) | Each Ship is definitively and permanently registered in the name of the relevant Borrower under the Marshall Islands flag; |
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| (b) | Each Ship is in the absolute and unencumbered ownership of the relevant Borrower save as contemplated by the Finance Documents; |
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| (c) | Each Ship maintains the highest available class with a classification society which is a member of the International Association of Classification Societies acceptable to the Agent free of all overdue recommendations and conditions of such classification society; |
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| (d) | the Mortgage relating to each Ship has been duly registered or recorded (as the case may be) against the relevant Ship as a valid first preferred Marshall Islands ship mortgage in accordance with the laws of the Republic of the Marshall Islands; |
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| (e) | each Ship is insured in accordance with the provisions of this Agreement and all requirements therein in respect of insurances have been complied with; and |
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| (f) | Dynagas has successfully completed its Initial Public Offering. |
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| 3 | Documents establishing that each Ship will, as from the first Drawdown Date, be managed by the Approved Manager on terms acceptable to the Lenders, together with: |
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| (a) | a letter of undertaking executed by the Approved Manager in favour of the Agent in the terms required by the Agent agreeing certain matters in relation to the management of each Ship and subordinating the rights of the Approved Manager against the relevant Borrower and its Ship to the rights of the Creditor Parties under the Finance Documents; and |
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| (b) | copies of the Approved Manager's Document of Compliance and of each Ship's Safety Management Certificate (together with any other details of the applicable safety management system which the Agent requires) and ISSC. |
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| 4 | Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the law of the Marshall Islands and such other relevant jurisdictions as the Agent may require. |
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| 5 | A favourable opinion from an independent insurance consultant acceptable to and appointed by the Agent on such matters relating to the insurances for each Ship as the Agent may require. |
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| 6 | If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent. |
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| 1 | This Certificate relates to a Loan Agreement (the "Loan Agreement") dated [l] November 2013 and made between (1) Pegasus Shipholding S.A., Lance Shipping S.A. and Seacrown Maritime Ltd. (the "Borrowers"), (2) the banks and financial institutions named therein as Lenders, (3) the banks and financial institutions named therein as Swap Banks, (4) Credit Suisse AG as Agent and (5) Credit Suisse AG as Security Trustee for a reducing revolving credit facility of up to US$262,125,000. |
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| 2 | In this Certificate, terms defined in the Loan Agreement shall, unless the contrary intention appears, have the same meanings and: |
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| 3 | The effective date of this Certificate is [l]  Provided that this Certificate shall not come into effect unless it is signed by the Agent on or before that date. |
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| 4 | The Transferor assigns to the Transferee absolutely all rights and interests (present, future or contingent) which the Transferor has as Lender under or by virtue of the Loan Agreement and every other Finance Document in relation to [l] per cent. of its Contribution, which percentage represents $[l]. |
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| 5 | By virtue of this Certificate and Clause 26 of the Loan Agreement, the Transferor is discharged entirely from its Commitment which amounts to $[l]] [from [l] per cent. of its Commitment, which percentage represents $[l]] and the Transferee acquires a Commitment of $[l]. |
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| 6 | The Transferee undertakes with the Transferor and each of the Relevant Parties that the Transferee will observe and perform all the obligations under the Finance Documents which Clause 26 of the Loan Agreement provides will become binding on it upon this Certificate taking effect. |
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| 7 | The Agent, at the request of the Transferee (which request is hereby made) accepts, for the Agent itself and for and on behalf of every other Relevant Party, this Certificate as a Transfer Certificate taking effect in accordance with Clause 26 of the Loan Agreement. |
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| 8 | The Transferor: |
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| (a) | warrants to the Transferee and each Relevant Party that: |
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|   | (i) | the Transferor has full capacity to enter into this transaction and has taken all corporate action and obtained all consents which are in connection with this transaction; and |
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|   | (ii) | this Certificate is valid and binding as regards the Transferor; |
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| (b) | warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances, to all the rights and interests covered by the assignment in paragraph 4 above; and |
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| (c) | undertakes with the Transferee that the Transferor will, at its own expense, execute any documents which the Transferee reasonably requests for perfecting in any relevant jurisdiction the Transferee's title under this Certificate or for a similar purpose. |
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| 9 | The Transferee: |
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| (a) | confirms that it has received a copy of the Loan Agreement and each of the other Finance Documents; |
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| (b) | agrees that it will have no rights of recourse on any ground against either the Transferor, the Agent, the Security Trustee or any Lender or any Swap Bank in the event that: |
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|   | (i) | any of the Finance Documents prove to be invalid or ineffective; |
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|   | (ii) | any Borrower or any Security Party fails to observe or perform its obligations, or to discharge its liabilities, under any of the Finance Documents; |
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|   | (iii) | it proves impossible to realise any asset covered by a Security Interest created by a Finance Document, or the proceeds of such assets are insufficient to discharge the liabilities of the Borrowers or Security Party under the Finance Documents; |
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| (c) | agrees that it will have no rights of recourse on any ground against the Agent, the Security Trustee or any Lender or any Swap Bank in the event that this Certificate proves to be invalid or ineffective; |
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| (d) | warrants to the Transferor and each Relevant Party that: |
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|   | (i) | it has full capacity to enter into this transaction and has taken all corporate action and obtained all consents which it needs to take or obtain in connection with this transaction; and |
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|   | (ii) | this Certificate is valid and binding as regards the Transferee; and |
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| (e) | confirms the accuracy of the administrative details set out below regarding the Transferee. |
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| 10 | The Transferor and the Transferee each undertake with the Agent and the Security Trustee severally, on demand, fully to indemnify the Agent and/or the Security Trustee in respect of any claim, proceeding, liability or expense (including all legal expenses) which they or either of them may incur in connection with this Certificate or any matter arising out of it, except such as are shown to have been mainly and directly caused by the gross and culpable negligence or dishonesty of the Agent's or the Security Trustee's own officers or employees. |
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| 11 | The Transferee shall repay to the Transferor on demand so much of any sum paid by the Transferor under paragraph 10 as exceeds one-half of the amount demanded by the Agent or the Security Trustee in respect of a claim, proceeding, liability or expense which was not reasonably foreseeable at the date of this Certificate; but nothing in this paragraph shall affect the liability of each of the Transferor and the Transferee to the Agent or the Security Trustee for the full amount demanded by it. |
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| [Name of Transferor]                                                                    | [Name of Transferee]  |
|----------------------------------------------------------------------------------------------|----------------------------|
|                                                                                         |                       |
| By:                                                                                     | By:                   |
|                                                                                         |                       |
| Date:                                                                                   | Date:                 |
|                                                                                         |                       |
| Agent                                                                                   |                       |
|                                                                                         |                       |
| Signed for itself and for and on behalf of itselfas Agent and for every other Relevant Party |                       |
|                                                                          |                       |
| [Name of Agent]                                                                         |                       |
|                                                                                         |                       |
| By:                                                                                     |                       |
|                                                                                         |                       |
| Date:                                                                                   |                       |

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| SIGNED by                | )                                      |
|--------------------------|----------------------------------------|
| Konstantinos Lampsias    | )  /s/ Konstantinos Lampsias |
| for and on behalf of     | )                                      |
| PEGASUS SHIPHOLDING S.A. | )                                      |
| in the presence of:      | )                                      |
| Alexander Rennie         |    /s/ Alexander Rennie |

| SIGNED by             | )                                      |
|-----------------------|----------------------------------------|
| Konstantinos Lampsias | ) /s/ Konstantinos Lampsias            |
| for and on behalf of  | )                                      |
| LANCE SHIPPING S.A.   | )                                      |
| in the presence of:   | )                                      |
| Alexander Rennie      |    /s/ Alexander Rennie |

| SIGNED by              | )                                      |
|------------------------|----------------------------------------|
| Konstantinos Lampsias  | )  /s/ Konstantinos Lampsias |
| for and on behalf of   | )                                      |
| SEACROWN MARITIME LTD. | )                                      |
| in the presence of:    | )                                      |
| Alexander Rennie       |    /s/ Alexander Rennie |

| LENDERS                 |                                     |
|-------------------------|------------------------------------------|
|                    |                                     |
|                    |                                     |
| SIGNED by               | )                                        |
| Georgina Asimalcopenlos | )  /s/ Georgina Asimalcopenlos |
| for and on behalf of    | )                                        |
| CREDIT SUISSE AG        | )                                        |
| in the presence of:     | )                                        |
| Alexander Rennie        |    /s/ Alexander Rennie   |

| AGENT                   |                                     |
|-------------------------|------------------------------------------|
|                    |                                     |
|                    |                                     |
| SIGNED by               | )                                        |
| Georgina Asimalcopenlos | )  /s/ Georgina Asimalcopenlos |
| for and on behalf of    | )                                        |
| CREDIT SUISSE AG        | )                                        |
| in the presence of:     | )                                        |
| Alexander Rennie        |    /s/ Alexander Rennie   |

| SECURITY TRUSTEE        |                                     |
|-------------------------|------------------------------------------|
|                    |                                     |
|                    |                                     |
| SIGNED by               | )                                        |
| Georgina Asimalcopenlos | )  /s/ Georgina Asimalcopenlos |
| for and on behalf of    | )                                        |

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| CREDIT SUISSE AG    | )                                      |
|---------------------|----------------------------------------|
| in the presence of: | )                                      |
| Alexander Rennie    |    /s/ Alexander Rennie |

| SWAP BANK               |                                     |
|-------------------------|------------------------------------------|
|                    |                                     |
|                    |                                     |
| SIGNED by               | )                                        |
| Georgina Asimalcopenlos | )  /s/ Georgina Asimalcopenlos |
| for and on behalf of    | )                                        |
| CREDIT SUISSE AG        | )                                        |
| in the presence of:     | )                                        |
| Alexander Rennie        |    /s/ Alexander Rennie   |
|                    | Watson, Farley & Williams            |
|                    | 348 Syngrou Avenue                       |
|                    | Kallithea 176-74                         |
|                    | Athens                                   |