Document:

EX-10.6

 Exhibit 10.6 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 

1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. 

THIS NOTE IS ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON 

TRANSFER AND OTHER PROVISIONS AS SET FORTH HEREIN. 
  

			
	$30,000,000	 	                     , 2013
		 	New York, New York

 PROMISSORY NOTE 

FOR VALUE RECEIVED, and on the terms and subject to the conditions set forth herein, the undersigned, DYNAGAS LNG PARTNERS LP, a
limited partnership organized and existing under the laws of the Republic of the Marshall Islands (the “Borrower”), hereby promises to pay DYNAGAS HOLDING LTD., a corporation organized and existing under the laws of the
Republic of the Marshall Islands (the “Lender”), on the Termination Date (as defined hereinafter) the principal sum of Thirty Million Dollars ($30,000,000) (the “Loan”) or, if less, the aggregate unpaid principal
amount of the Loan from time to time outstanding made available by the Lender to the Borrower pursuant to this promissory note (this “Note”). 

Section 1. Certain Terms Defined. The following terms for all purposes of this Note shall have the respective meanings
specified below. 
 “Advance” shall have the meaning set forth in Section 3. 

“Applicable Law” shall mean any Law of any Authority, including, without limitation, all national, Federal, state and local
banking or securities laws, to which the person in question is subject or by which it or any of its material property is bound. 

“Authority” shall mean any governmental or quasi-governmental authority, whether executive, legislative, judicial,
administrative or other, or any combination thereof, including, without limitation, any national, Federal, state, local, territorial, county, municipal or other government or governmental or quasi-governmental agency, arbitrator, board, body,
branch, bureau, commission, corporation, court, department, instrumentality, master, mediator, panel, referee, system or other political unit or subdivision or other entity of any of the foregoing, whether domestic or foreign. 

“Availability Period” shall mean the period commencing the Closing Date and ending on the Termination Date. 

“Borrower” shall have the meaning set forth in the preamble. 

 “Business Day” means any day except a Saturday, Sunday or other day on
which commercial banks in New York, New York are authorized by law to close. 
 “Closing Date” means the date of
this Note. 
 “Dollars” or “$” means the legal currency of the United States of America.

 “Drawdown Notice” shall have the meaning set forth in Section 3. 

“Indemnified Party” shall have the meaning set forth in Section 17. 

“Law” shall mean any law, rule, regulation or official code, consent decree, constitution, decree, directive, enactment,
guideline, injunction, interpretation, judgment, order, ordinance, policy statement, proclamation, promulgation, requirement, rule of law, rule of public policy, settlement agreement, statute, or writ. 

“Lender” shall have the meaning set forth in the preamble. 

“Loan” shall have the meaning set forth in the preamble. 

“Person” means and includes any natural person, individual, partnership, joint venture, corporation, trust, limited
liability company, limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other entity. 

“Prepayment Date” shall have the meaning set forth in Section 5. 

“Termination Date” means the earliest of (i) the date on which the Loan becomes due and payable (either
automatically or through notice and declaration by the Lender) after the occurrence of an Event of Default pursuant to Section 11 hereof, (ii) the date which is sixty (60) months from the Closing Date (or if such day is not a Business
Day, then the next succeeding Business Day) or such later date as the Lender may agree with the Borrower, and (iii) the date on which the Loan is fully cancelled or terminated by mutual agreement of the Borrower and Lender. 

Section 2. Conditions to Lending. 

The obligation of the Lender to make the Loan or any Advance thereunder available to the Borrower under this Note shall be expressly subject
to the following conditions precedent: 
 (a) The Note. The Borrower shall have duly executed and delivered this Note
to the Lender. 
 (b) Drawdown Notice. The Lender shall have received a Drawdown Notice in accordance with the terms
of Section 3. 
 (c) No Event of Default. No Event of Default shall have occurred which remains outstanding and
uncured. 

 Section 3. The Loan. 

(a) Availability. During the Availability Period, the Lender shall make the Loan available to the Borrower in one or
more advances (each, an “Advance”), for the purpose of funding the working capital needs of the Borrower. Each Advance shall be in a minimum amount of One Million Dollars ($1,000,000). 

(b) Drawdown Notice. The Borrower shall during the Availability Period, in respect of any Advance, provide the Lender
with written notice (the “Drawdown Notice”), at least three (3) Business Days prior to the date of the proposed drawdown of such Advance. The Drawdown Notice shall specify (a) the date of the proposed borrowing (which
shall be a Business Day) and (b) the disbursement instructions for the proceeds of the Advance. The Drawdown Notice shall be effective upon receipt by the Lender and shall be irrevocable. 

(c) Evidence of Drawdown. The Lender shall endorse the amount and the date of the making of any Advance and any
prepayment or payment of principal hereunder on the grid annexed hereto and made a part hereof, which endorsement shall constitute prima facie evidence of the accuracy of the information so endorsed; provided, however,
that any failure to endorse such information on such grid shall not in any manner affect the obligation of the Borrower to make payment of principal and interest in accordance with the terms of this Note. 

(d) Loan Maturity. The Loan shall mature, and the principal amount thereof shall become immediately due and payable
(together with default interest accrued thereon, if any), on the Termination Date. If this Note or any payment required to be made hereunder becomes due and payable on a day which is not a Business Day, the due date thereof shall be extended until
the next following Business Day and interest shall be payable during such extension at the rate applicable immediately prior thereto. 

Section 4. Principal and Interest. 

(a) Termination Date Payment. The outstanding principal balance of the Loan and any outstanding fees, expenses or
charges, shall be payable on the Termination Date. 
 (b) Default Interest. The Borrower shall pay interest at a rate
equal to two percent (2%) per annum from (and including) the relevant date until the date of actual payment (as well after as before judgment) on any amount payable by the Borrower under this Note which the Lender does not receive on or before
the Termination Date or, if payable on demand, the date on which demand is served or, if immediately due and payable under this Note, the date on which it became immediately due and payable. 

 (c) Usury Modification. It is the intent of the parties that the rate of
interest and other charges to the Borrower under this Note shall be lawful; therefore, if for any reason the interest or other charges payable under this Note are found by a court of competent jurisdiction, in a final determination, to exceed the
limit which the Lender may lawfully charge the Borrower, then the obligation to pay interest and other charges shall automatically be reduced to such limit and, if any amount in excess of such limit shall have been paid, then such amount shall be
refunded to the Borrower. 
 Section 5. Optional Prepayments.  

The Borrower may prepay the Loan in whole or in part on any Business Day without penalty by paying the portion of the Loan to be prepaid
together with interest accrued thereon to the date of prepayment (the “Prepayment Date”). 
 Section 6.
General Provisions as to Payments.  
 All payments of principal of and interest on the Loan by the Borrower hereunder shall be made
not later than 12:00 Noon (New York City time) on the date when due by cashier’s check or by wire transfer of immediately available funds to the Lender’s account or accounts at a bank or banks in the United States specified by the Lender
in writing to the Borrower without reduction by reason of any set-off or counterclaim. 
 Section 7. Taxation. 

All payments in respect of or relating to this Note by the Borrower shall be made without withholding or deduction for, or on account of, any
present or future taxes, duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of any tax jurisdiction unless the withholding or deduction is required by law. If withholding or deduction is required by law,
the Borrower shall pay such additional amounts as are necessary in order that the net amounts received by the Lender after the withholding or deduction shall equal the respective amounts which would have been receivable in respect of or relating to
this Note in the absence of the withholding or deduction. 
 Section 8. Representations and Warranties.  

The Borrower represents and warrants to the Lender that: 

(a) this Note and the related documents have been duly executed by the Borrower and constitute legal, valid and binding
obligations enforceable against the Borrower; 
 (b) this Note and the related documents do not violate any law, court order
or agreement by which the Borrower is bound; and 
 (c) the Borrower’s performance under this Note is not threatened by
any pending or threatened litigation. 

 All representations, covenants and warranties made herein and in any certificate or other
document delivered pursuant hereto or in connection herewith shall survive the execution of this Note. 
 Section 9.
Covenants of the Borrower.  
 The Borrower agrees that so long as any amounts have been drawn down under this Note and until all of
the Borrower’s obligations hereunder have been paid and performed in full, the Borrower shall: 
 (a) maintain its
existence and authority to conduct its business as presently contemplated to be conducted; 
 (b) materially comply with all
Applicable Laws; and 
 (c) pay all applicable taxes as they become due. 

Section 10. Negative Covenants. 

The Borrower agrees that so long as any amounts have been drawn down under this Note and until all of the Borrower’s obligations
hereunder have been paid and performed in full, the Borrower shall not, without the prior written approval of the Lender: 

(a) merge or consolidate with any other person or entity, or liquidate or dissolve or instruct or grant resolutions to any
liquidator of the Borrower: or 
 (b) change its structure or organizational documents or form any subsidiaries or other
affiliated entities except as may be required by any Applicable Law; or 
 (c) enter into any agreement in which the terms of
such agreement would restrict or impair the ability of the Borrower to perform its obligations under this Note; or 
 (d)
enter into any agreement to do any of the foregoing; or 
 (e) take any other voluntary action without the prior written
consent of the Lender to avoid or seek to avoid the observance or performance of any of the terms of the Note, but will at all times in good faith assist in carrying out all those terms and in taking all action necessary or appropriate to protect
the Lender against impairment. 
 Section 11. Events of Default.  

Each of the following events shall constitute an “Event of Default”: 

(a) any principal of or interest on the Loan shall not be paid when due; 

 (b) the Borrower breaches any representation or warranty hereunder; 

(c) the Borrower defaults in the due and punctual observance or performance of any covenant, condition or agreement contained
in this Note and such default is not cured (to the extent curable in the discretion of the Lender) within fifteen (15) days after notice from the Lender; 

(d) a court shall enter a decree or order for relief in respect of the Borrower in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or for any substantial part of the property of the
Borrower or ordering the winding up or liquidation of the affairs of the Borrower, and such decree or order shall remain unstayed and in effect for a period of sixty (60) consecutive days; or 

(e) the Borrower shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Borrower or for any substantial part of the property of the Borrower, or the Borrower shall make any general assignment for the benefit of creditors; or 

(f) Dynagas GP LLC ceases to be the General Partner of the Borrower. 

If an Event of Default described in (d), (e) or (f) above shall occur, the unpaid principal and accrued interest on the Loan shall
become immediately due and payable without any declaration or other act on the part of the Lender. Immediately upon the occurrence of any Event of Default described in (d), (e) or (f) above, or upon failure to pay this Note in full on the
Termination Date, the Lender, without any notice to the Borrower, which notice is expressly waived by the Borrower, may proceed to protect, enforce, exercise and pursue any and all rights and remedies available to the Lender under this Note and any
other agreement or instrument, and any and all rights and remedies available to the Lender at law or in equity. 
 If any Event of Default
described in clauses (a) through (c) shall occur for any reason, whether voluntary or involuntary, and be continuing, the Lender may by notice to the Borrower declare all or any portion of the unpaid principal amount of the Loan to be due
and payable, whereupon the full unpaid amount of the Loan which shall be so declared due and payable shall be and become immediately due and payable, without further notice, demand or presentment. 

 Section 12. Further Assurances. 

The Borrower hereby agrees that, from time to time upon the written request of the Lender, it will execute and deliver such further documents
and do such other acts and things as the Lender may reasonably request in order fully to effect the purposes of this Note and to protect and preserve the priority and validity of the security interests granted hereunder. 

Section 13. Powers and Remedies Cumulative; Delay or Omission Not Waiver of Event of Default.  

No right or remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other right or remedy, and every right
and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
 No delay or
omission of the Lender to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any Event of Default or an acquiescence
therein; and every power and remedy given by this Note or by law may be exercised from time to time, and as often as shall be deemed expedient, by the Lender. 

Section 14. Transfers.  

The Borrower may not transfer or assign this Note nor any right or obligation hereunder to any person or entity without the prior written
consent of the Lender. This Note is freely transferable by the Lender. 
 Section 15. Modification.  

This Note may be modified only with the written consent of both the Borrower and the Lender. 

Section 16. Expenses. 

The Borrower agrees to pay to the Lender all out-of-pocket expenses (including reasonable expenses for legal services of every kind) of, or
incident to, the enforcement of any of the provisions of this Note. 
 Section 17. Indemnification. 

The Borrower agrees to indemnify and hold harmless the Lender and its directors, officers, managers, partners, members, shareholders,
affiliates, agents, successors and assigns, (each an “Indemnified Party”) from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including, without limitation, attorneys’ fees, charges and
disbursements) incurred by such Indemnified Party as a result of any inaccuracy in or breach of the representations, warranties or covenants made by the Borrower herein. 

 Section 18. Notices. 

All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing, mailed or
delivered to each party at the respective addresses of the parties set out below, or at such other address as a party hereto shall have furnished to the other parties in writing: 

 

			
	If to the Borrower:	  	Dynagas LNG Partners LP
		  	97 Poseidonos Avenue & 2 Foivis Street
		  	Glyfada, 16674, Greece
		
		  	Attention: CEO
		
	If to the Lender:	  	Dynagas Holding Ltd.
		  	97 Poseidonos Avenue & 2 Foivis Street
		  	Glyfada, 16674, Greece
		
		  	Attention: Director

 All such notices and communications will be deemed effectively given the earlier of (i) when
received, (ii) when delivered personally, (iii) one Business Day after being deposited with an overnight courier service of recognized standing or (iv) on receipt of confirmation of delivery. 

Section 19. Miscellaneous.  

This Note shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be governed by and construed in
accordance with the laws of said state. The parties hereto hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of or any default under this
Note, except as specifically provided herein, and assent to extensions of the time of payment, or forbearance or other indulgence without notice. The Section headings herein are for convenience only and shall not affect the construction hereof. Any
provision of this Note which is illegal, invalid, prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating or
impairing the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. This Note shall bind the Borrower, its successors and permitted assigns. The rights under and benefits of this Note
shall inure to the Lender and its successors and assigns. 

 Section 20. WAIVER OF JURY TRIAL. 

THE BORROWER HEREBY WAIVES ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
NOTE OR ANY RELATED DOCUMENT TO WHICH IT IS A PARTY OR THE TRANSACTIONS CONTEMPLATED BY THIS NOTE OR ANY RELATED DOCUMENT TO WHICH IT IS A PARTY. 

[Signature Page Follows] 

 IN WITNESS WHEREOF, the Borrower has caused this instrument to be duly executed as of the date
first above written. 
  

							
	DYNAGAS LNG PARTNERS LP
		
	By:	 	DYNAGAS GP LLC, its General Partner
			
		 	By:	 	Dynagas Holding Ltd., its sole member
				
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:

  

			
	ACKNOWLEDGED:
	
	DYNAGAS HOLDING LTD.
		
	By:	 	  

	Name:	 	
	Title:	 	

 ADVANCES// 

PAYMENTS OF PRINCIPAL 
  

									
	 Date
	  	Amount of Advance	  	Amount of Principal
Paid or Prepaid	  	Unpaid Principal
Balance	  	Notation
Made ByEX-10.7

 Exhibit 10.7 
  

 
 OFFER LETTER 

25.10.2013 
 The present Firm Offer is
only subject to i) relevant legal advice and ii) satisfactory documentation including legal opinions. It is available for acceptance until 01.11.2013. 
  

			
	Borrowers:	 	Jointly and severally, three single shipowning companies, each being the registered owner of the respective Vessel. The ultimate beneficial owner of each Borrower will need to be disclosed to the Lender by way of completing the
Swiss “Declaration A” document, all on a private and confidential basis as per Swiss banking practice.
		
	Guarantor:	 	Dynagas LNG Partners LP of Marshall Islands.
		
	Additional Guarantors:	 	Dynagas Equity Holding Ltd. and Dynagas Operating LP.
		
	Type of Facility and Purpose:	 	Senior secured reducing revolving credit facility, being available for financing the Vessels.
		
	Vessels:	 	 Vessel A: “Clean Energy,” a 2007-built, 149,700 cbm LNG Carrier, built at Huyndai Heavy Industries Co. Ltd. of South Korea.

 
 Vessel B: “Clean Force,” a 2008-built, 149,700 cbm LNG Carrier, built at Huyndai
Heavy Industries Co. Ltd. of South Korea.
  
 Vessel C: “Ob River”, a
2007-built, 149,700 cbm LNG Carrier, built at Huyndai Heavy Industries Co. Ltd. of South Korea.
 (each one a “Vessel” and collectively “the
Vessels”).

		
	Existing Charters:	 	 Vessel A Charter: A Time Charter Agreement with BG Group at a daily hire rate of $85,000 and earliest expiration date in April 2017.

 
 Vessel B Charter: A Time Charter Agreement with BG Group at a daily hire rate of $64,000
and earliest expiration date in September 2016.
  
 Vessel C Charter: A Time Charter
Agreement with Gazprom at a daily hire rate of $86,000 and earliest expiration date in September 2017.

		
	Lender and Swap Bank:	 	CREDIT SUISSE AG, Switzerland.
		
	Facility Amount:	 	Up to $262,125,000 in aggregate.
		
	Drawdowns:	 	Available in multiple drawings but not more than 4 (four) drawdowns each year, subject always to compliance with the Asset Cover Ratio and all other covenants.
		
	Purpose:	 	Available for re-financing 100% of the existing indebtedness of Vessel A and Vessel B and for financing Vessel C.

  
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	Reductions:	 	The maximum available facility amount will be reduced by 14 (fourteen) quarterly reductions as follows:
			
		 	•	 	First – Thirteenth: $5,000,000 each, commencing 3 months after 31.12.2013;
			
		 	•	 	Fourteenth: $197,125,000.
		
	Voluntary Prepayments:	 	The Borrowers to have the option to prepay the Facility, or portions thereof in minimum amounts of one reduction or multiples thereof, on any interest payment date, subject to a 5 days prior written notice to the Lender.
Prepaid amounts may be re-borrowed subject always to the maximum available amount at the time and compliance with the Asset Cover Ratio and all other covenants.
		
	Mandatory Reductions:	 	In the event that any Vessel is sold by the respective Borrower or declared actual, constructive, agreed or constructive total loss, the Facility shall immediately be permanently reduced by an amount equal to the
pro-rata ratio of the sold or lost Vessel’s Market Value over the aggregate Market Value of all Vessels and the Borrowers shall immediately prepay in full an amount equal to the excess outstanding above the maximum available amount at the time
as the case may be (plus accrued interest and break cost, if any) and unwind any Hedging Transactions potentially entered into at the cost of the Borrowers (if any).
		
	Interest Rate:	 	Libor (London Interbank Offered Rate) to be selected for a period of 3, 6 or 12 months or such other period as shall be agreed with the Lender, plus Margin plus Mandatory Cost (if any).
		
		 	Interest shall be payable at the end of an interest period while in case of an interest period longer than 3 (three) months, accrued interest shall be paid in arrears at quarterly consecutive intervals and on the last
day of such an interest period.
		
	Margin:	 	2.85% p.a.
		
	Mandatory Cost:	 	The Interest Rate payable will be increased to reflect the cost of complying with any applicable regulatory requirements of any relevant regulatory authority.
		
	Interest Hedging:	 	Subject to acceptable terms and conditions under a relevant ISDA Master Agreement to be entered into by the Borrowers and the Swap Bank and to be included in the Facility Documentation. The Borrowers may, from time to
time, and subject to the Lender’s prior consent, for the purpose of hedging the floating interest rate exposure under the Facility, enter into interest rate hedging products with the Swap Bank (“Hedging Transactions”). Any liabilities
of the Borrowers and all Hedging Transactions shall be secured by the Facility’s Securities on a pari passu basis with the Borrowers’ obligations under the Facility and shall be subject to documentation fully acceptable to the
Lender.
		
	Arrangement Fee:	 	0.37% (i.e. $969,862) flat, non-refundable, due and payable upon acceptance of this firm offer.

  
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	Commitment Fee:	 	1.40% p.a., applicable on the available undrawn amount, accruing from the date of acceptance of this firm offer letter and payable quarterly in arrears.
		
	Security:	 	
			
		 	•	 	First priority or preferred cross-collateralized mortgage on each Vessel including, if appropriate, accompanying deed of covenants;
			
		 	•	 	Specific assignment of the Existing Charters with notice of assignment notified to and acknowledged by the respective counterparties;
			
		 	•	 	First preferred assignment of all earnings of the Vessels, including specific assignment of any employment contracts with a duration of more than 12 (twelve) months notified to and acknowledged by the respective
counterparties;
			
		 	•	 	First preferred assignment of all insurances in relation to the Vessels;
			
		 	•	 	Charge or pledge over the mortgaged Vessels’ earnings accounts, which are to be held with the Lender; and
			
		 	•	 	Irrevocable and unconditional on first demand Corporate Guarantees from the Guarantor and the Additional Guarantors.
		
		 	All securities provided by each Borrower to secure all obligations of the Borrowers under the Facility and including any negative mark-to market value under any Hedging Transaction on a pari passu and on a
cross-collateralised basis.
		
	Insurances:	 	All insurances in relation to the Vessels, including but not limited to the following, should be taken out at the cost of the Borrowers:
			
		 	1.	 	Hull & machinery and war risks on agreed value basis for an amount equal to the higher of (a) 120% of the Facility Amount outstanding from time to time and (b) the Market Value of the respective Vessel.
			
		 	2.	 	Protection and indemnity (P&I) to be taken out through the P&I club acceptable to the Lender.
			
		 	3.	 	Mortgagee’s Interest Insurance (MII) and Mortgagee’s Interest Insurance Additional Perils (MAP) taken by the Lender, for 120% of the outstanding amount of the respective Tranche.
		
		 	All insurances in relation to the Vessels, including but not limited to the above, shall be taken out at Borrowers’ cost with insurance companies acceptable to the Lender and all insurances taken by the Borrowers
shall be reviewed prior to Drawdown by an independent appraiser appointed by the Lender at the Borrowers’ expense. In the event of material changes in requirements to insure the Vessels or in the Insurance Market for maritime insurances in
general, the Lender shall have the right to further review and adjust its requirement in respect of the Vessels’ insurance cover at any time and at Borrowers’ cost.

  
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	Covenants:	 	As usual for shipping transactions, including but not limited to the following:
			
		 	•	 	During the term of the Facility a company approved by the Lender (e.g. Dynagas Ltd.) will carry out Vessels’ commercial and technical management. A manager’s undertaking acceptable to the Lender to be provided.
			
		 	•	 	Each Vessel to fly a flag acceptable to the Lender.
			
		 	•	 	The Lender reserves the right to have each Vessel physically inspected by a surveyor at any time. Provided that the respective Vessel is found in satisfactory condition and no Event of Default has occurred, the cost of such
inspections shall be borne by the Borrowers not more than once every year.
			
		 	•	 	Each Vessel to be classed by a generally recognised first class classification society (e.g. ABS) being a member of the IACS and acceptable to the Lender and always maintain the highest class, free of any qualifications and
recommendations. The Lender shall have the right to inspect the Vessels’ class records at any time upon request.
			
		 	•	 	No change in flag, class or management of the Vessels without the prior written consent of the Lender.
			
		 	•	 	All earnings of the Vessels to be paid in the corresponding earnings account maintained by each Borrower with the Lender.
			
		 	•	 	The Borrowers may upstream dividends to the Guarantor (through the Additional Guarantors) unless and until an Event of Default has occurred or would occur as a consequence of paying subject dividends.
			
		 	•	 	The Borrowers and the Guarantor will furnish the Lender with their annual audited financial statements (consolidated in the case of the Guarantor) within 180 days of each fiscal year. Moreover, the Guarantor shall provide to the
Lender its quarterly unaudited financial statements within 60 days after the end of each quarter. In addition to the above statements, the Borrowers and the Guarantor shall provide any information on their financial condition, commitments and
operations, which the Lender may reasonably require.
			
		 	•	 	During the entire duration of the Facility, the outstanding indebtedness (comprising of the outstanding loan amount and any negative mark-to-market value under any Hedging Transaction) of the aggregate of the Tranches has to be
covered at all times by 130% of the Vessels’ aggregate Market Value (“Asset Cover Ratio”). Market Value to be determined by taking the arithmetic mean of two written valuation certificates for each Vessel provided on a charter-free
basis by two reputable sale and purchase ship brokers, one appointed by the Lender and one appointed by the Borrower and acceptable to the Lender. The Lender reserves the right to obtain such valuation for the Vessels and test the Asset Cover Ratio
at any time. In the absence of an Event of Default, the cost of such valuation shall be borne by the Borrowers not more than once a year.

  
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		 	•	 	The Borrowers may not incur other debts or make loans or advances or issue other guarantees to any other corporation or individual, other than within the normal course of business, without the prior written consent of
the Lender.
			
		 	•	 	“Material Adverse Change” clause to cover any other events not covered hereunder which in the reasonable opinion of the Lender could affect the solvency of the Borrowers and/or the Guarantor and/or Additional
Guarantor.
			
		 	•	 	In accordance with the general lending policies of the Lender, the Borrowers, the Guarantor and the Additional Guarantors shall agree to a “sanctions clause” confirming that they will not provide any benefits
of this Facility to and conduct any business activity related to this Vessel with:
				
		 		 		 	(a) any persons being subject to sanctions by major trading nations and/or supranational bodies as outlined in such clause (the “Regulative Bodies”) and/or
				
		 		 		 	(b) countries or their governmental bodies which are subject to sanctions imposed by any of the Regulative Bodies (“Restricted Countries”) and/or
				
		 		 		 	(c) any persons located, domiciled, resident or incorporated in Restricted Countries and/or
				
		 		 		 	(d) owned by, controlled by or affiliated with such persons or Restricted Countries as per (a) (b) and (c) above.
			
	Financial Covenants:	 		 	On the basis of the Guarantor’s annual audited consolidated financial statements and its quarterly unaudited consolidated financial statements, the following financial covenants to be met at all times:
					
		 		 	•	 	Leverage:	 	Total consolidated liabilities not to exceed 65% of the total consolidated market value adjusted total assets;
					
		 		 	•	 	Interest Cover:	 	EBITDA to Interest Expenses to be at least 3.0x.
					
		 		 	•	 	Liquidity:	 	Cash and Cash equivalents to be at least $22m.
					
		 		 	•	 	Dividends:	 	Allowed unless and until an Event of Default has occurred or would occur as a consequence of paying subject dividends.
					
		 		 	•	 	Ownership:	 	Mr George Prokopiou family to directly or indirectly own/control at all times until final maturity of the Facility:
						
		 		 		 		 	a.	 	at least 30% of the Guarantor’s share capital and voting rights;
						
		 		 		 		 	b.	 	100% of the General Partner’s share capital and voting rights.
		
	Conditions Precedent:	 	Usual for shipping transactions of this nature including, but not limited to, the following:
			
		 	•	 	The Market Value of each Vessel shall be initially determined (based on two broker valuations at the cost of the Borrowers) not more than 15 days prior to its respective drawdown.
			
		 	•	 	The Guarantor to successfully raise at least $140,000,000 of new equity through an Initial Public Offering (“IPO”) of its shares.

  
 5 

 

 
  

					
		 	•	 	Evidence satisfactory to the Lender that the Guarantee dated 27.09.2012 issued from Lance Shipping S.A., the Guarantee dated 27.12.2009 issued from Pegasus Shipholding S.A., the Guarantee dated 27.09.2012 issued from Seacrown
Maritime Ltd and the Guarantee dated 28.09.2012 issued from Dynagas Ltd, LNG Holding Limited and Dynagas Equity Holdings Limited have been released from the relevant lender.
			
	Events of Default:	 		 	 Standard default clauses including, but not limited to, material adverse change and early termination of any of the Existing Charters.

			
	Documentation:	 		 	 The Facility will be subject to the negotiation, execution and exchange of the loan and security documentation satisfactory to the Lender drawn up under
English law by a law firm appointed by the Lender amongst Watson Farley & Williams, Norton Rose, Campbell Johnston Clark and Holman Fenwick & Willan.

			
	Taxes:	 		 	 All payments to be made shall be free and clear of all present and future taxes, withholding or any other deductions of any kind.

			
	Expenses:	 		 	 All costs and out-of-pocket expenses of the Lender (including but not limited to legal fees in respect of the preparation, negotiation and documentation of
the Facility) to be at the Borrowers’ expense and to include any value added tax (if applicable) payable by the Lender.

  

					
	CREDIT SUISSE AG	 		 	
			
	/s/ [Illegible]	 		 	/s/ [Illegible]
	  
	 		 	  

	Lydia Lampadaridou	 		 	George Tzelepis
			
	Agreed:	 		 	
			
	 /s/ [Illegible]
	 		 	 /s/ [Illegible]

	(Place/Date)	 		 	 (on behalf of the Borrowers, the Guarantor

and the Additional Guarantors)

 Disclaimer for 
 Unencoded
E-Mail: 
 The parties agree that all information, orders and instructions related or connected to the offering or making of this facility by the bank can
be sent via e-mail. The contracting party herewith expressly authorizes the bank to send information by e-mail. This includes communication via e-mail with third parties (including but not limited to lawyers and/or any other consultant) who are in
any way affected or involved in the facility or by the services provided by the bank. The bank is entitled to assume that all the orders and instructions e-mailed by the contracting party or a third party are from an authorized individual,
irrespective of any existing signatory rights in accordance with the commercial register or the specimen signature. 
 The contracting party is aware of the
following risks of exchanging information electronically: 
  

	•	 	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 an existing banking relationship.

  

	•	 	Information can be changed by a third party. 

  

	•	 	The identity of the sender (e-mail address) can be assumed or otherwise manipulated. 

  

	•	 	The exchange of information can be delayed or interrupted due to transmission errors, technical faults, interruptions, malfunctions, illegal interventions, network overload, the malicious blocking of electronic access
by third parties, or other shortcomings on the part of the network provider. Time-critical orders and instructions might not be processed in due time. Therefore, the contracting party is advised to use another suitable means of communication for
these types of orders and instructions. 

  
 6

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