Document:

EX-4.1

 Exhibit 4.1 

FORM OF 
 THIRD AMENDED
AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP 
 OF 

DYNAGAS LNG PARTNERS LP 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I

DEFINITIONS
	   
   

	 Section 1.1
		Definitions		 	2	  
	Section 1.2		Construction		 	16	  
	  
 ARTICLE II

ORGANIZATION
  
	 
   

  
 

	 Section 2.1
		Formation		 	17	  
	Section 2.2		Name		 	17	  
	Section 2.3		Registered Office; Registered Agent; Principal Office; Other Offices		 	17	  
	Section 2.4		Purpose and Business		 	17	  
	Section 2.5		Powers		 	17	  
	Section 2.6		Term		 	17	  
	Section 2.7		Title to Partnership Assets		 	17	  
	  
 ARTICLE III

RIGHTS OF LIMITED PARTNERS
  
	 
   

  
 

	 Section 3.1
		Limitation of Liability		 	18	  
	Section 3.2		Management of Business		 	18	  
	Section 3.3		Outside Activities of the Limited Partners		 	18	  
	Section 3.4		Rights of Limited Partners		 	18	  
	  
 ARTICLE IV

CERTIFICATES; RECORD HOLDERS; TRANSFER OF PARTNERSHIP INTERESTS

 
	 
   

  
 

	 Section 4.1
		Certificates		 	19	  
	 Section 4.2
		Mutilated, Destroyed, Lost or Stolen Certificates		 	19	  
	 Section 4.3
		Record Holders		 	20	  
	 Section 4.4
		Transfer Generally		 	20	  
	 Section 4.5
		Registration and Transfer of Limited Partner Interests		 	20	  
	 Section 4.6
		Transfer of the General Partner’s General Partner Interest		 	21	  
	 Section 4.7
		Transfer of Incentive Distribution Rights		 	21	  
	 Section 4.8
		Restrictions on Transfers		 	22	  
	  
 ARTICLE V

CAPITAL CONTRIBUTIONS AND ISSUANCE OF PARTNERSHIP INTERESTS

 
	 
   

  
 

	 Section 5.1
		Contributions and Initial Unit Issuances Prior to the Closing Date		 	22	  
	 Section 5.2
		Tax Election		 	22	  
	 Section 5.3
		Interest and Withdrawal		 	22	  
	 Section 5.4
		Issuances of Additional Partnership Interests		 	22	  
	 Section 5.5
		Limitations on Issuance of Additional Partnership Interests		 	23	  
	 Section 5.6
		Conversion of Subordinated Units to Common Units		 	23	  
	 Section 5.7
		Limited Preemptive Right		 	24	  
	 Section 5.8
		Splits and Combinations		 	24	  
	 Section 5.9
		Fully Paid and Non-Assessable Nature of Limited Partner Interests		 	25	  
	 Section 5.10
		Issuance of Common Units in Connection with Reset of Incentive Distribution Rights		 	25	  

  
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	 ARTICLE VI

ALLOCATIONS AND DISTRIBUTIONS
  
	   
   

	 Section 6.1
		Allocations		 	26	  
	 Section 6.2
		Requirement and Characterization of Distributions; Distributions to Record Holders		 	26	  
	 Section 6.3
		Distributions of Available Cash from Operating Surplus		 	27	  
	 Section 6.4
		Distributions of Available Cash from Capital Surplus		 	28	  
	 Section 6.5
		Adjustment of Minimum Quarterly Distribution and Target Distribution Levels		 	29	  
	 Section 6.6
		Special Provisions Relating to the Holders of Subordinated Units		 	29	  
	 Section 6.7
		Special Provisions Relating to the Holders of Incentive Distribution Rights		 	29	  
	  
 ARTICLE VII

MANAGEMENT AND OPERATION OF BUSINESS
  
	 
   

  
 

	 Section 7.1
		Management		 	29	  
	 Section 7.2
		The Board of Directors; Election and Appointment; Term; Manner of Acting		 	30	  
	 Section 7.3
		Nominations of Elected Directors		 	31	  
	 Section 7.4
		Removal of Members of Board of Directors		 	31	  
	 Section 7.5
		Resignations of Members of the Board of Directors		 	31	  
	 Section 7.6
		Vacancies on the Board of Directors		 	31	  
	 Section 7.7
		Meetings; Committees; Chairman		 	31	  
	 Section 7.8
		Officers		 	32	  
	 Section 7.9
		Compensation of Directors		 	33	  
	 Section 7.10
		Certificate of Limited Partnership		 	33	  
	 Section 7.11
		Restrictions on the Authority of the Board of Directors and the General Partner		 	33	  
	 Section 7.12
		Reimbursement of the General Partner		 	33	  
	 Section 7.13
		Outside Activities		 	34	  
	 Section 7.14
		Loans from the General Partner; Loans or Contributions from the Partnership or Group Members		 	35	  
	 Section 7.15
		Indemnification		 	36	  
	 Section 7.16
		Liability of Indemnitees		 	37	  
	 Section 7.17
		Resolution of Conflicts of Interest; Standards of Conduct and Modification of Duties		 	37	  
	 Section 7.18
		Other Matters Concerning the General Partner and the Board of Directors		 	39	  
	 Section 7.19
		Section 7.19 Purchase or Sale of Partnership Interests		 	39	  
	 Section 7.20
		Registration Rights of the General Partner and its Affiliates		 	39	  
	 Section 7.21
		Reliance by Third Parties		 	41	  
	  
 ARTICLE VIII

BOOKS, RECORDS, ACCOUNTING AND REPORTS
  
	 
   

  
 

	 Section 8.1
		Records and Accounting		 	42	  
	 Section 8.2
		Fiscal Year		 	42	  
	 Section 8.3
		Reports		 	42	  
	  
 ARTICLE IX

TAX MATTERS
  
	 
   

  
 

	 Section 9.1
		Tax Elections and Information		 	42	  
	 Section 9.2
		Withholding		 	42	  
	 Section 9.3
		Conduct of Operations		 	43	  

  
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 ARTICLE X

ADMISSION OF PARTNERS
  
	 
   

  
 

	 Section 10.1
		Admission of Initial Limited Partners		 	43	  
	 Section 10.2
		Admission of Additional Limited Partners		 	43	  
	 Section 10.3
		Admission of Successor General Partner		 	43	  
	 Section 10.4
		Amendment of Agreement and Certificate of Limited Partnership		 	44	  
	  
 ARTICLE XI

WITHDRAWAL OR REMOVAL OF PARTNERS
  
	 
   

  
 

	 Section 11.1
		Withdrawal of the General Partner		 	44	  
	 Section 11.2
		Removal of the General Partner		 	45	  
	 Section 11.3
		Interest of Departing General Partner and Successor General Partner		 	45	  
	 Section 11.4
		Termination of Subordination Period, Conversion of Subordinated Units and Extinguishment of Cumulative Common Unit Arrearages		 	47	  
	 Section 11.5
		Withdrawal of Limited Partners		 	47	  
	  
 ARTICLE XII

DISSOLUTION AND LIQUIDATION
  
	 
   

  
 

	 Section 12.1
		Dissolution		 	47	  
	 Section 12.2
		Continuation of the Business of the Partnership After Dissolution		 	47	  
	 Section 12.3
		Liquidating Trustee		 	48	  
	 Section 12.4
		Liquidation		 	48	  
	 Section 12.5
		Cancellation of Certificate of Limited Partnership		 	49	  
	 Section 12.6
		Return of Contributions		 	50	  
	 Section 12.7
		Waiver of Partition		 	50	  
	  
 ARTICLE XIII

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS; RECORD DATE

 
	 
   

  
 

	 Section 13.1
		Amendments to be Adopted Without Approval of the Limited Partners or the General Partner		 	50	  
	 Section 13.2
		Amendment Procedures		 	51	  
	 Section 13.3
		Amendment Requirements		 	51	  
	 Section 13.4
		Special Meetings		 	52	  
	 Section 13.5
		Notice of a Meeting		 	52	  
	 Section 13.6
		Record Date		 	52	  
	 Section 13.7
		Adjournment		 	53	  
	 Section 13.8
		Waiver of Notice; Approval of Meeting; Approval of Minutes		 	53	  
	 Section 13.9
		Quorum and Voting		 	53	  
	 Section 13.10
		Conduct of a Meeting		 	53	  
	 Section 13.11
		Action Without a Meeting		 	54	  
	 Section 13.12
		Right to Vote and Related Matters		 	54	  
	  
 ARTICLE XIV

MERGER, CONSOLIDATION OR CONVERSION
  
	 
   

  
 

	 Section 14.1
		Authority		 	54	  
	 Section 14.2
		Procedure for Merger, Consolidation or Conversion		 	54	  
	 Section 14.3
		Approval by Limited Partners of Merger, Consolidation or Conversion		 	56	  
	 Section 14.4
		Certificate of Merger or Conversion		 	57	  
	 Section 14.5
		Amendment of Partnership Agreement		 	57	  

  
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	 Section 14.6
		Effect of Merger, Consolidation or Conversion		 	57	  
	  
 ARTICLE XV

RIGHT TO ACQUIRE LIMITED PARTNER INTERESTS
  
	 
   

  
 

	 Section 15.1
		Right to Acquire Limited Partner Interests		 	58	  
	  
 ARTICLE XVI

SERIES A CUMULATIVE REDEEMABLE PREFERRED UNITS
  
	 
   

  
 

	 Section 16.1
		Designations		 	59	  
	 Section 16.2
		Units		 	59	  
	 Section 16.3
		Distributions		 	59	  
	 Section 16.4
		Liquidation Rights		 	60	  
	 Section 16.5
		Voting Rights		 	61	  
	 Section 16.6
		Optional Redemption		 	61	  
	 Section 16.7
		Rank		 	63	  
	 Section 16.8
		No Sinking Fund		 	63	  
	 Section 16.9
		Record Holders		 	63	  
	 Section 16.10
		Notices		 	63	  
	 Section 16.11
		Other Rights; Fiduciary Duties		 	63	  
	  
 ARTICLE XVII

GENERAL PROVISIONS
  
	 
   

  
 

	 Section 17.1
		Addresses and Notices		 	64	  
	 Section 17.2
		Further Action		 	64	  
	 Section 17.3
		Binding Effect		 	64	  
	 Section 17.4
		Integration		 	64	  
	 Section 17.5
		Creditors		 	64	  
	 Section 17.6
		Waiver		 	65	  
	 Section 17.7
		Counterparts		 	65	  
	 Section 17.8
		Applicable Law; Forum, Venue and Jurisdiction		 	65	  
	 Section 17.9
		Invalidity of Provisions		 	65	  
	 Section 17.10
		Consent of Partners		 	66	  
	 Section 17.11
		Facsimile Signatures		 	66	  
	 Section 17.12
		Third-Party Beneficiaries		 	66	  

  
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 FORM OF THIRD AMENDED AND RESTATED 

AGREEMENT OF LIMITED PARTNERSHIP OF DYNAGAS LNG PARTNERS LP 

THIS THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF DYNAGAS LNG PARTNERS LP, dated as of July [●], 2015, is entered into
by and between Dynagas GP LLC, a Marshall Islands limited liability company, as the General Partner, and the Limited Partners, together with any other Persons who become Partners in the Partnership or parties hereto as provided herein. 

WHEREAS, the General Partner and the other parties thereto entered into that certain Agreement of Limited Partnership of the Partnership on
October 8, 2013 (the “Original Agreement”); 
 WHEREAS, the General Partner amended and restated the Original
Agreement, as evidenced by that certain Amended and Restated Agreement of Limited Partnership of the Partnership dated as of October 29, 2013 (the “First Amended and Restated Agreement”); 

WHEREAS, the General Partner amended and restated the First Amended and Restated Agreement, as evidenced by that certain Amended and Restated
Agreement of Limited Partnership of the Partnership dated as of November 18, 2013 (the “Second Amended and Restated Agreement”); 

WHEREAS, Section 5.4(a) of the Second Amended and Restated Agreement provides that the Partnership is authorized to issue additional
Partnership Interests and options, rights, warrants or appreciation rights relating thereto, for any Partnership purpose, at any time or from time to time, to such Persons for such consideration and on such terms and conditions as the Board of
Directors shall determine, all without the approval of any Partners; 
 WHEREAS, Section 5.4(b) of the Second Amended and Restated
Agreement provides that each additional Partnership Interest authorized to be issued by the Partnership pursuant to Section 5.4(a) of the Second Amended and Restated Agreement may be issued in one or more classes, or one or more series of any
such classes, with such designations, preferences, rights, powers and duties (which may be senior to existing classes and series of Partnership Interests), as shall be fixed by the Board of Directors, including (i) the right to share in
Partnership distributions; (ii) the rights upon dissolution and liquidation of the Partnership; (iii) whether, and the terms and conditions upon which, the Partnership may or shall be required to redeem the Partnership Interest (including
sinking fund provisions); (iv) whether such Partnership Interest is issued with the privilege of conversion or exchange and, if so, the terms and conditions of such conversion or exchange; (v) the terms and conditions upon which each
Partnership Interest will be issued, evidenced by certificates and assigned or transferred; (vi) the method for determining the Percentage Interest as to such Partnership Interest; and (vii) the right, if any, of each such Partnership
Interest to vote on Partnership matters, including matters relating to the relative rights, preferences and privileges of such Partnership Interest; 

WHEREAS, Section 5.4(c) of the Second Amended and Restated Agreement provides that the Board of Directors is authorized and directed to
take all actions that it determines to be necessary or appropriate in connection with each issuance of Partnership Interests and options, rights, warrants and appreciation rights relating to Partnership Interests pursuant to Section 5.4 of the
Second Amended and Restated Agreement and to take all actions that it determines to be necessary or appropriate in connection with any future issuance of Partnership Interests pursuant to the Second Amended and Restated Agreement, including
compliance with any statute, rule, regulation or guideline of any federal, state or other governmental agency or any National Securities Exchange on which the Units or other Partnership Interests are listed or admitted to trading; and 

WHEREAS, Section 13.1(g) of the Second Amended and Restated Agreement provides that the General Partner and each Limited Partner agree
that the Board of Directors, without the approval of any Limited Partner or, subject to Section 5.5 of the Second Amended and Restated Agreement, the General Partner, may amend any provision of the Second Amended and Restated Agreement and
execute, swear to, acknowledge, deliver, file and record whatever documents may be required in connection therewith, to reflect an amendment that the Board of Directors, and if required by Section 5.5 of the Second Amended and Restated
Agreement, the General Partner, determines to be necessary or appropriate in connection with the authorization of issuance of any class or series of Partnership Interests pursuant to Section 5.4 of the Second Amended and Restated Agreement.

  
 1 

 NOW, THEREFORE, the General Partner does hereby amend and restate the Second Amended and Restated
Agreement to provide, in its entirety, as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.1        Definitions. The following definitions shall be for all purposes,
unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement. 
 “Acquisition” means any
transaction in which any Group Member acquires (through an asset acquisition, merger, stock acquisition or other form of investment) control over all or a portion of the assets, properties or business of another Person for the purpose of increasing
the operating capacity and/or asset base of the Partnership Group from the operating capacity and/or asset base of the Partnership Group existing immediately prior to such transaction; provided, however, that any acquisition of
properties or assets of another Person that is made solely for investment purposes shall not constitute an Acquisition under this Agreement. 

“Adjusted Operating Surplus” means, with respect to any period, Operating Surplus generated with respect to such period
(a) less (i) the amount of any net increase in Working Capital Borrowings (or the Partnership’s proportionate share of any net increase in Working Capital Borrowings in the case of Subsidiaries that are not wholly-owned) with respect
to such period and (ii) the amount of any net decrease in cash reserves for Operating Expenditures (or the Partnership’s proportionate share of any net decrease in cash reserves for Operating Expenditures in the case of Subsidiaries that
are not wholly-owned) over such period to the extent such reduction does not relate to an Operating Expenditure made with respect to such period, and (b) plus (i) the amount of any net decrease in Working Capital Borrowings (or the
Partnership’s proportionate share of any net decrease in Working Capital Borrowings in the case of Subsidiaries that are not wholly-owned) with respect to such period; (ii) the amount of any net increase in cash reserves (or the
Partnership’s proportionate share of any net increase in cash reserves in the case of Subsidiaries that are not wholly-owned) for Operating Expenditures over such period to the extent such reserve is required (A) by any debt instrument for
the repayment of principal, interest or premium or (B) for any Series A Payments; and (iii) the amount of any net decrease made in subsequent periods in cash reserves for Operating Expenditures initially established with respect to such
period to the extent such decrease results in a reduction in Adjusted Operating Surplus in subsequent periods pursuant to clause (a)(ii) above. Adjusted Operating Surplus does not include that portion of Operating Surplus included in clause (a)(i)
of the definition of Operating Surplus. Adjusted Operating Surplus includes that portion of Operating Surplus in clause (a)(ii) of the definition of Operating Surplus only to the extent that cash is received by the Partnership Group. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Aggregate Quantity of IDR
Reset Common Units” has the meaning set forth in Section 5.10(a). 
 “Agreed Value” means the fair market
value of the applicable property or other consideration at the time of contribution or distribution, as the case may be, as determined by the Board of Directors. 

“Agreement” means this Third Amended and Restated Agreement of Limited Partnership of Dynagas LNG Partners LP, as it may be
amended, supplemented or restated from time to time. 
 “Annual Meeting” means the meeting of Limited Partners to be held
every year, commencing in 2014, to elect the Elected Directors as provided in Section 7.2 and to vote on any other matters brought before the meeting in accordance with this Agreement. 

“Appointed Directors” means the members of the Board of Directors appointed by the General Partner in accordance with the
provisions of Article VII. 

  
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 “Arrears” means, with respect to Series A Distributions for any quarter
period, that the full cumulative Series A Distribution through the most recent Series A Distribution Payment Date has not been paid on all Outstanding Series A Preferred Units. 

“Associate” means, when used to indicate a relationship with any Person: (a) any corporation or organization of which
such Person is a director, officer or partner or is, directly or indirectly, the owner of 20% or more of any class of voting stock or other voting interest; (b) any trust or other estate in which such Person has at least a 20% beneficial
interest or as to which such Person serves as trustee or in a similar fiduciary capacity; and any relative or spouse of such Person, or any relative of such spouse, who has the same principal residence as such Person. 

“Audit Committee” means a committee of the Board of Directors composed of a minimum of one member of the Board of Directors
then serving who meet the independence standards required of directors who serve on an audit committee of a board of directors established by the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder
and meet the standards for audit committee composition established by the National Securities Exchange on which the Common Units are listed or admitted to trading. 

“Available Cash” means, with respect to any Quarter ending prior to the Liquidation Date: 

(a)        the sum of (i) all cash and cash equivalents of the Partnership Group (or the
Partnership’s proportionate share of cash and cash equivalents in the case of Subsidiaries that are not wholly-owned) on hand at the end of such Quarter, (ii) all additional cash and cash equivalents of the Partnership Group (or the
Partnership’s proportionate share of cash and cash equivalents in the case of Subsidiaries that are not wholly-owned) on hand on the date of determination of Available Cash with respect to such Quarter resulting from Working Capital Borrowings
made subsequent to the end of such Quarter, and (iii) all cash and cash equivalents on hand on the date of determination of Available Cash resulting from cash distributions received after the end of such Quarter from any Group Member’s
equity interest in any Person (other than a Subsidiary), which distributions are paid by such Person in respect of operations conducted by such Person during such Quarter, less 

(b)        the amount of any cash reserves (or the Partnership’s proportionate share of cash
reserves in the case of Subsidiaries that are not wholly-owned) established by the Board of Directors to (i) provide for the proper conduct of the business of the Partnership Group (including reserves for future capital expenditures and for
anticipated future credit needs of the Partnership Group) subsequent to such Quarter, (ii) comply with applicable law or any loan agreement, security agreement, mortgage, debt instrument or other agreement or obligation to which any Group
Member is a party or by which it is bound or its assets are subject, (iii) provide funds for Series A Payments or (iv) provide funds for distributions under Sections 6.2 or 6.3 in respect of any one or more of the next four Quarters;
provided, however, that the Board of Directors may not establish cash reserves pursuant to (iv) above if the effect of establishing such reserves would be that the Partnership is unable to distribute the Minimum Quarterly
Distribution on all Common Units, plus any Cumulative Common Unit Arrearage on all Common Units, with respect to such Quarter; and, provided further, that disbursements made by a Group Member or cash reserves established, increased or reduced
after the end of such Quarter but on or before the date of determination of Available Cash with respect to such Quarter shall be deemed to have been made, established, increased or reduced, for purposes of determining Available Cash, within such
Quarter if the Board of Directors so determines. 
 Notwithstanding the foregoing, “Available Cash” with respect to the Quarter in
which the Liquidation Date occurs and any subsequent Quarter shall equal zero. 
 “Board of Directors”
means the board of directors of the Partnership, composed of Appointed Directors and Elected Directors appointed or elected, as the case may be, in accordance with the provisions of Article VII and a majority of whom are not United States citizens
or residents, which, pursuant to Section 7.1, and subject to Section 7.11, oversees and directs the operations, management and policies of the Partnership. The Board of Directors shall constitute a committee within the meaning of
Section 30(2)(g) of the Marshall Islands Act. 

  
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 “Business Day” means Monday through Friday of each week, except that a legal
holiday recognized as such by the government of the United States of America or the State of New York shall not be regarded as a Business Day. 

“Capital Contribution” means (a) with respect to any Partner, any cash, cash equivalents or the Net Agreed Value of
Contributed Property that a Partner contributes to the Partnership or that is contributed to the Partnership on behalf of a Partner (including, in the case of an underwritten offering of Units, the amount of any underwriting discounts or
commissions) or (b) with respect to the General Partner only, (i) distributions of cash that the General Partner is entitled to receive but otherwise waives such that the Partnership retains such cash or (ii) Common Units that the
General Partner contributes to the Partnership. 
 “Capital Improvement” means any (a) addition or improvement to the
capital assets owned by any Group Member, (b) acquisition of existing, construction of new or improvement or replacement of existing, capital assets or (c) capital contribution by a Group Member to a Person that is not a Subsidiary, in
which a Group Member has, or after such capital contribution will have, an equity interest, to fund the Group Member’s pro rata share of the cost of the addition or improvement to or the acquisition of existing, or the construction of new, or
the improvement or replacement of existing, capital assets by such Person, in each case if such addition, improvement, replacement, acquisition or construction is made to increase the operating capacity and/or asset base of the Partnership Group
from the operating capacity and/or asset base of the Partnership Group or such Person, as the case may be, existing immediately prior to such addition, improvement, replacement, acquisition or construction; provided, however, that any
such addition, improvement, acquisition or construction that is made solely for investment purposes shall not constitute a Capital Improvement. 

“Capital Surplus” has the meaning assigned to such term in Section 6.2(a). 

“Cause” means a court of competent jurisdiction has entered a final, non-appealable judgment finding a Person liable for
actual fraud or willful misconduct in its capacity as a general partner of the Partnership or as a member of the Board of Directors, as the case may be. 

“Certificate” means a certificate (i) substantially in the form of Exhibit A to this Agreement with respect to Common
Units and Exhibit B with respect to Series A Preferred Units, (ii) issued in global or book entry form in accordance with the rules and regulations of the Depository or (iii) in such other form as may be adopted by the Board of Directors,
issued by the Partnership evidencing ownership of one or more Common Units or Preferred Units, or a certificate, in such form as may be adopted by the Board of Directors, issued by the Partnership evidencing ownership of one or more other
Partnership Interests. 
 “Certificate of Limited Partnership” means the Certificate of Limited Partnership of the
Partnership filed with the Registrar of Corporations of The Marshall Islands as referenced in Section 7.10 as such Certificate of Limited Partnership may be amended, supplemented or restated from time to time. 

“claim” (as used in Section 7.20(c)) has the meaning assigned to such term in Section 7.20(c). 

“Closing Date” means the first date on which Common Units are sold by the Partnership and Dynagas Holding Ltd. to the
Underwriters pursuant to the provisions of the Underwriting Agreement. 
 “Closing Price” means, in respect of any class or
series of Limited Partner Interests, as of the date of determination, the last sale price on such day, regular way, or in case no such sale takes place on such day, the average of the closing bid and asked prices on such day, regular way, as
reported in the principal consolidated transaction reporting system with respect to securities listed on the principal National Securities Exchange on which the respective Limited Partner Interests are listed or admitted to trading or, if such
Limited Partner Interests are not listed or admitted to trading on any National Securities Exchange, the last quoted price on such day or, if not so quoted, the average of the high bid and low asked prices on such day in the over-the-counter market,
as reported by any quotation system then in use with respect to such Limited Partner Interests, or, if on any such day such Limited Partner Interests of such class or series are not quoted by any such system, the average of the closing bid and asked
prices on such day as furnished by a professional market maker making a market in such Limited Partner Interests of such class or series selected by the Board of Directors, or if on any such day no market maker is making a market in

  
 4 

 
such Limited Partner Interests of such class or series, the fair value of such Limited Partner Interests on such day as determined by the Board of Directors. 

“Code” means the United States Internal Revenue Code of 1986, as amended and in effect from time to time. Any reference
herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of any successor law. 

“Combined Interest” has the meaning assigned to such term in Section 11.3(a). 

“Commences Commercial Service” and “Commenced Commercial Service” shall mean the date a Capital Improvement
is first put into commercial service by a Group Member following, if applicable, completion of construction, acquisition, development and testing. 

“Commission” means the United States Securities and Exchange Commission. 

“Common Unit” means a Partnership Interest representing a fractional part of the Partnership Interests of all Limited
Partners, and having the rights and obligations specified with respect to Common Units in this Agreement. The term “Common Unit” does not refer to a Subordinated Unit prior to its conversion into a Common Unit pursuant to the terms hereof.

 “Common Unit Arrearage” means, with respect to any Common Unit, whenever issued, as to any Quarter within the
Subordination Period, the excess, if any, of (a) the Minimum Quarterly Distribution with respect to a Common Unit in respect of such Quarter over (b) the sum of all Available Cash distributed with respect to a Common Unit in respect of
such Quarter pursuant to Section 6.3(a)(i). 
 “Conflicts Committee” means a committee of the Board of Directors
composed entirely of two or more directors who are not (a) security holders, officers or employees of the General Partner, (b) officers, directors or employees of any Affiliate of the General Partner or (c) holders of any ownership
interest in the Partnership Group (other than Common Units or awards granted to such director under any long-term incentive plan of any Group Member) and who also meet the independence standards required of directors who serve on an audit committee
of a board of directors established by the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder and by the National Securities Exchange on which the Common Units are listed or admitted to trading.

 “Contributed Property” means each property or other asset, in such form as may be permitted by the Marshall Islands Act,
but excluding cash, contributed to the Partnership. 
 “Contribution Agreement” means, collectively, that certain
Contribution and Conveyance Agreement, dated as of October 29, 2013, among the General Partner, the Partnership, the Operating Company, Dynagas Operating GP LLC, Dynagas Holding Ltd. and Dynagas Equity Holding Ltd., together with the additional
conveyance documents and instruments contemplated or referenced thereunder or entered into in connection therewith. 
 “Cumulative
Common Unit Arrearage” means, with respect to any Common Unit, whenever issued, and as of the end of any Quarter, the excess, if any, of (a) the sum of the Common Unit Arrearage as to an Initial Common Unit for each of the Quarters
within the Subordination Period ending on or before the last day of such Quarter over (b) the sum of any distributions theretofore made pursuant to Section 6.3(a)(ii) and the second sentence of Section 6.4 with respect to an Initial
Common Unit (including any distributions to be made in respect of the last of such Quarters). 
 “Current Market Price”
means, in respect of any class or series of Limited Partner Interests, as of the date of determination, the average of the daily Closing Prices per Limited Partner Interest of such class or series for the 20 consecutive Trading Days immediately
prior to such date. 
 “Departing General Partner” means a former General Partner from and after the effective date of any
withdrawal or removal of such former General Partner pursuant to Sections 11.1 or 11.2. 

  
 5 

 “Depository” means, with respect to any Units issued in global form, The
Depository Trust Company and its successors and permitted assigns. 
 “Elected Directors” means the members of the Board of
Directors who are elected as such in accordance with the provisions of Article VII and at least three of whom are not (a) security holders, officers or employees of the General Partner, (b) officers or employees of any Affiliate of the
General Partner, (c) holders of any ownership interest in the Partnership Group (other than Common Units or awards granted to such director under any long-term incentive plan of any Group Member) and who also meet the independence standards
required of directors who serve on an audit committee of a board of directors established by the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder and by the National Securities Exchange on which
the Common Units are listed or admitted to trading or (d) United States citizens or residents. 
 “Estimated Maintenance
Capital Expenditures” means an estimate made in good faith by the Board of Directors (with the concurrence of the Conflicts Committee) of the average quarterly Maintenance Capital Expenditures that the Partnership will need to incur to
maintain over the long-term the operating capacity and/or asset base of the Partnership Group (including the Partnership’s proportionate share of the average quarterly Maintenance Capital Expenditures of its Subsidiaries that are not
wholly-owned) existing at the time the estimate is made. The Board of Directors (with the concurrence of the Conflicts Committee) will be permitted to make such estimate in any manner it determines reasonable. Beginning after the Closing Date, the
estimate will be made at least annually and whenever an event occurs that is likely to result in a material adjustment to the amount of Maintenance Capital Expenditures on a long-term basis. The Partnership shall disclose to its Partners any change
in the amount of Estimated Maintenance Capital Expenditures in its reports made in accordance with Section 8.3 to the extent not previously disclosed. Any adjustments to Estimated Maintenance Capital Expenditures shall be prospective only. 

“Event of Withdrawal” has the meaning assigned to such term in Section 11.1(a). 

“Expansion Capital Expenditures” means cash expenditures for Acquisitions or Capital Improvements. Expansion Capital
Expenditures shall not include Maintenance Capital Expenditures or Investment Capital Expenditures. Expansion Capital Expenditures shall include interest payments (and related fees) on debt incurred and distributions on equity issued, in each case,
to fund the construction of a Capital Improvement and paid in respect of the period beginning on the date that a Group Member enters into a binding obligation to commence construction of the Capital Improvement and ending on the earlier to occur of
the date that such Capital Improvement Commences Commercial Service or the date that such Capital Improvement is abandoned or disposed of. Debt incurred or equity issued to fund any such construction period interest payments, or such construction
period distributions on equity paid in respect of such period shall also be deemed to be debt incurred or equity issued, as the case may be, to fund the construction of a Capital Improvement, and the Incremental Incentive Distributions paid in
respect of such newly issued equity shall be deemed to be distributions paid on equity issued to finance the construction of a Capital Improvement. 

“First Target Distribution” means $0.420 per Unit per Quarter, subject to adjustment in accordance with Section 6.5.

 “Forecasted Distributions” has the meaning assigned to such term in Section 5.6(b). 

“Fully Diluted Weighted Average Basis” means, when calculating the number of Outstanding Units for any period, a basis that
includes (1) the weighted average number of Outstanding Units plus (2) all Partnership Interests and options, rights, warrants and appreciation rights relating to an equity interest in the Partnership (a) that are convertible into or
exercisable or exchangeable for Units that are senior to or pari passu with the Subordinated Units, (b) whose conversion, exercise or exchange price is less than the Current Market Price on the date of such calculation, (c) that may
be converted into or exercised or exchanged for such Units prior to or during the Quarter immediately following the end of the period for which the calculation is being made without the satisfaction of any 

contingency beyond the control of the holder other than the payment of consideration and the compliance with administrative mechanics applicable to such
conversion, exercise or exchange and (d) that were not converted into or exercised or exchanged for such Units during the period for which the calculation is being made; provided, however, that for purposes of determining the
number of Outstanding Units on a Fully Diluted Weighted Average 

  
 6 

 
Basis when calculating whether the Subordination Period has ended, such Partnership Interests, options, rights, warrants and appreciation rights shall be deemed to have been Outstanding Units
only for the four Quarters that comprise the last four Quarters of the measurement period; and provided, further, that if consideration will be paid to any Group Member in connection with such conversion, exercise or exchange, the
number of Units to be included in such calculation shall be that number equal to the difference between (i) the number of Units issuable upon such conversion, exercise or exchange and (ii) the number of Units that such consideration would
purchase at the Current Market Price. 
 “General Partner” means Dynagas GP LLC, a Marshall Islands limited liability
company, and its successors and permitted assigns that are admitted to the Partnership as general partner of the Partnership, in its capacity as general partner of the Partnership (except as the context otherwise requires). 

“General Partner Interest” means the ownership interest of the General Partner in the Partnership (in its capacity as a
general partner and without reference to any Limited Partner Interest held by it), which is evidenced by General Partner Units and includes any and all benefits to which the General Partner is entitled as provided in this Agreement, together with
all obligations of the General Partner to comply with the terms and provisions of this Agreement. 
 “General Partner Unit”
means a fractional part of the General Partner Interest having the rights and obligations specified with respect to the General Partner Interest. A General Partner Unit is not a Unit. 

“Group” means a Person that with or through any of its Affiliates or Associates has any agreement, arrangement, understanding
or relationship for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent given to such Person in response to a proxy or consent solicitation made to 10 or more Persons), exercising investment power over
or disposing of any Partnership Interests with any other Person that beneficially owns, or whose Affiliates or Associates beneficially own, directly or indirectly, Partnership Interests. 

“Group Member” means a member of the Partnership Group. 

“Group Member Agreement” means the partnership agreement of any Group Member, other than the Partnership, that is a limited
or general partnership, the limited liability company agreement of any Group Member that is a limited liability company, the certificate of incorporation and bylaws (or similar organizational documents) of any Group Member that is a corporation, the
joint venture agreement or similar governing document of any Group Member that is a joint venture and the governing or organizational or similar documents of any other Group Member that is a Person other than a limited or general partnership,
limited liability company, corporation or joint venture, in each case as such may be amended, supplemented or restated from time to time. 

“Hedge Contract” means any exchange, swap, forward, future, cap, floor, collar or other similar agreement or arrangement
entered into for the purpose of hedging the Partnership Group’s exposure to fluctuations in the price of interest rates, currencies or commodities in their operations and not for speculative purposes. 

“Historical Distributions” has the meaning assigned to such term in Section 5.6(b). “Holder” as used in
Section 7.20, has the meaning assigned to such term in Section 7.20(a). “IDR Reset Election” has the meaning set forth in Section 5.10(a). 

“Incentive Distribution Right” means a non-voting Limited Partner Interest, which Partnership Interest will confer upon the
holder thereof only the rights and obligations specifically provided in this Agreement with respect to Incentive Distribution Rights (and no other rights otherwise available to or other obligations of a holder of a Partnership Interest).
Notwithstanding anything in this Agreement to the contrary, the holder of an Incentive Distribution Right shall not be entitled to vote such Incentive Distribution Right on any Partnership matter except as may otherwise be required by law. 

“Incentive Distributions” means any amount of cash distributed to the holders of the Incentive Distribution Rights pursuant
to Section 6.3. 

  
 7 

 “Incremental Incentive Distributions” means, with respect to any newly issued
equity securities of the Partnership, the incremental amount of any Incentive Distributions payable under Section 6.3 based solely upon the amount of distributions paid in respect of such newly issued equity securities. 

“Indemnified Persons” has the meaning assigned to such term in Section 7.20(c). 

“Indemnitee” means (a) the General Partner, (b) any Departing General Partner, (c) any Person who is or was an
Affiliate of the General Partner or any Departing General Partner, (d) any Person who is or was a member, partner, director, officer, fiduciary or trustee of any Person which any of the preceding clauses of this definition describes,
(e) any Person who is or was serving at the request of the General Partner or any Departing General Partner or any Affiliate of the General Partner or any Departing General Partner as an officer, director, member, partner, fiduciary or trustee
of another Person (provided, however, that a Person shall not be an Indemnitee by reason of providing, on a fee-for-services basis, trustee, fiduciary or custodial services), (f) the members of the Board of Directors, (g) the
Officers, and (h) any other Person the Board of Directors designates as an “Indemnitee” for purposes of this Agreement. 

“Initial Common Units” means the Common Units sold in the Initial Offering. 

“Initial Limited Partners” means Dynagas Holding Ltd. and the General Partner (with respect to the Incentive Distribution
Rights received by the General Partner pursuant to Section 5.2(b)) and the Underwriters, in each case upon being admitted as Partners to the Partnership in accordance with Section 10.1. 

“Initial Offering” means the initial public offering and sale of Common Units to the public, as described in the Registration
Statement, including any Common Units sold pursuant to the exercise of the Over-Allotment Option. 
 “Initial Unit Price”
means (a) with respect to the Common Units and the Subordinated Units, the initial public offering price per Common Unit at which the Underwriters first offered the Common Units to the public for sale as set forth on the cover page of the
prospectus included as part of the Registration Statement and first issued at or after the time the Registration Statement first became effective or (b) with respect to any other class or series of Units, the price per Unit at which such class
or series of Units is initially sold by the Partnership, as determined by the Board of Directors, in each case adjusted as the Board of Directors determines to be appropriate to give effect to any distribution, subdivision or combination of Units.

 “Interim Capital Transactions” means the following transactions if they occur prior to the Liquidation Date:
(a) borrowings, refinancings or refundings of indebtedness (other than Working Capital Borrowings and other than for items purchased on open account in the ordinary course of business) by any Group Member and sales of debt securities of any
Group Member; (b) sales of equity interests of any Group Member; (c) sales or other voluntary or involuntary dispositions of any assets of any Group Member (including assets acquired using Investment Capital Expenditures) other than
(i) sales or other dispositions of inventory, accounts receivable and other assets in the ordinary course of business and (ii) sales or other dispositions of assets as part of normal retirements or replacements; (d) capital
contributions received; and (e) corporate reorganizations or restructurings. 
 “Investment Capital Expenditures”
means capital expenditures other than Maintenance Capital Expenditures and Expansion Capital Expenditures. 
 “Junior
Securities” has the meaning set forth in Section 16.7. 
 “Limited Partner” means, unless the context
otherwise requires, the Organizational Limited Partner, each Initial Limited Partner, each additional Person that becomes a Limited Partner pursuant to the terms of this Agreement and any Departing General Partner upon the change of its status from
General Partner to Limited Partner pursuant to Section 11.3, in each case, in such Person’s capacity as a limited partner of the Partnership; provided, however, that when the term “Limited Partner” is used herein in
the context of any vote or other approval, including Articles XIII and XIV, such term shall not, solely for such purpose, include any holder of an Incentive Distribution Right (solely with respect to its Incentive Distribution Rights and not with
respect to any other Limited Partner 

  
 8 

 
Interest held by such Person) except as may otherwise be required by law. Limited Partners may include custodians, nominees or any other individual or entity in its own or any representative
capacity. 
 “Limited Partner Interest” means the ownership interest of a Limited Partner in the Partnership, which may be
evidenced by Common Units, Preferred Units, Subordinated Units, Incentive Distribution Rights or other Partnership Interests or a combination thereof or interest therein, and includes any and all benefits to which such Limited Partner is entitled as
provided in this Agreement, together with all obligations of such Limited Partner to comply with the terms and provisions of this Agreement; provided, however, that when the term “Limited Partner Interest” is used herein in
the context of any vote or other approval, including Articles XIII and XIV, such term shall not, solely for such purpose, include any Incentive Distribution Right except as may otherwise be required by law. 

“Liquidation Date” means (a) in the case of an event giving rise to the dissolution of the Partnership of the type
described in clauses (a) and (b) of the first sentence of Section 12.2, the date on which the applicable time period during which the holders of Outstanding Units have the right to elect to continue the business of the Partnership has
expired without such an election being made, and (b) in the case of any other event giving rise to the dissolution of the Partnership, the date on which such event occurs. 

“Liquidation Event” means the occurrence of a dissolution or liquidation of the Partnership, whether voluntary or
involuntary; provided, however, that a Liquidation Event shall not precede the Liquidation Date. Neither the sale of all or substantially all of the property or business of the Partnership nor the consolidation or merger of
the Partnership with or into any other Person, individually or in a series of transactions, shall be deemed a Liquidation Event. 

“Liquidation Preference” means, in connection with any distribution in connection with a Liquidation Event pursuant to
Section 12.4 and with respect to any holder of any class or series of Partnership Interests, the amount otherwise payable to such holder in such distribution with respect to such class or series of Partnership Interests (assuming no limitation
on the assets of the Partnership available for such distribution), including an amount equal to any accrued but unpaid distributions thereon to the date fixed for such payment, whether or not declared (if the terms of the applicable class or series
of Partnership Interests so provide). For avoidance of doubt, for the foregoing purposes, the Series A Liquidation Preference is the Liquidation Preference with respect to the Series A Preferred Units. 

“Liquidating Trustee” means one or more Persons selected by the Board of Directors to perform the functions described in
Section 12.4. 
 “Maintenance Capital Expenditures” means cash expenditures (including expenditures for the addition
or improvement to, or the replacement of, the capital assets owned by any Group Member or for the acquisition of existing, or the construction of new, capital assets) if such expenditure is made to maintain, including over the long term, the
operating capacity and/or asset base of the Partnership Group. Maintenance Capital Expenditures shall not include Expansion Capital Expenditures or Investment Capital Expenditures. Maintenance Capital Expenditures shall include interest payments
(and related fees) on debt incurred and distributions on equity issued, in each case, to finance the acquisition or the construction of a replacement asset and paid in respect of the period beginning on the date that the Group Member enters into a
binding obligation to acquire or to construct a replacement asset and ending on the earlier to occur of the date that such replacement asset Commences Commercial Service or the date that such replacement asset is abandoned or disposed of. Debt
incurred to pay or equity issued to fund the construction period interest payments, or such construction period distributions on equity shall also be deemed to be debt incurred or equity issued, as the case may be, to finance the construction of a
replacement asset, and the Incremental Incentive Distributions paid in respect of such newly issued equity shall be deemed to be distributions paid on equity issued to finance the construction of a replacement asset. 

“Marshall Islands Act” means the Limited Partnership Act of The Republic of the Marshall Islands, as amended, supplemented or
restated from time to time, and any successor to such statute. 
 “Measurement Period” has the meaning assigned to such
term in Section 5.6(b). “Merger Agreement” has the meaning assigned to such term in Section 14.1. 

  
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 “Minimum Quarterly Distribution” means $0.365 per Common Unit per Quarter,
subject to adjustment in accordance with Section 6.5. 
 “National Securities Exchange” means an exchange registered
with the Commission under Section 6(a) of the Securities Exchange Act of 1934, as amended, supplemented or restated from time to time, and any successor to such statute. 

“Net Agreed Value” means, (a) in the case of any Contributed Property, the Agreed Value of such property reduced by any
liabilities either assumed by the Partnership upon such contribution or to which such property is subject when contributed, and (b) in the case of any property distributed to a Partner by the Partnership, the Agreed Value of such property,
reduced by any indebtedness either assumed by such Partner upon such distribution or to which such property is subject at the time of distribution. 

“Notice of Election to Purchase” has the meaning assigned to such term in Section 15.1(b). “Officers”
has the meaning assigned to such term in Section 7.8(a). 
 “Omnibus Agreement” means that Omnibus Agreement, dated as
of the Closing Date, among the Partnership, the General Partner, Dynagas Operating LP, Dynagas Operating GP LLC, and Dynagas Holding Ltd. 

“Operating Company” means Dynagas Operating L.P., a Marshall Islands limited liability company, and any successors thereto.

 “Operating Company Agreement” means the Limited Partnership Agreement of the Operating Company, as it may be amended,
supplemented or restated from time to time. 
 “Operating Expenditures” means all Partnership Group expenditures (or the
Partnership’s proportionate share of expenditures in the case of Subsidiaries that are not wholly owned), including taxes, employee and director compensation, reimbursements of expenses of the General Partner, repayment of Working Capital
Borrowings, debt service payments, capital expenditures, payments made in the ordinary course of business under any Hedge Contracts (provided (i) with respect to amounts paid in connection with the initial purchase of any Hedge Contract, such
amounts shall be amortized over the life of the Hedge Contract and (ii) that payments made in connection with the termination of any Hedge Contract prior to the expiration of its stipulated settlement or termination date shall be included in
Operating Expenditures in equal quarterly installments over the remaining scheduled life of such Hedge Contract) and Series A Distributions, subject to the following: 

(a)        deemed repayments of Working Capital Borrowings deducted from Operating Surplus pursuant to
clause (b)(iii) of the definition of Operating Surplus shall not constitute Operating Expenditures when actually repaid; 

(b)        payments (including prepayments and prepayment penalties) of principal of and premium on
indebtedness other than Working Capital Borrowings shall not constitute Operating Expenditures; and 

(c)        Operating Expenditures shall not include (i) Expansion Capital Expenditures,
Investment Capital Expenditures or actual Maintenance Capital Expenditures, but shall include Estimated Maintenance Capital Expenditures, (ii) payment of transaction expenses (including taxes) relating to Interim Capital Transactions,
(iii) Series A Redemption Payments, (iv) payments made to Series A Holders to purchase or otherwise acquire Preferred Units, or (v) distributions to Partners. 

Where capital expenditures consist of both (x) Maintenance Capital Expenditures and (y) Expansion Capital Expenditures and/or
Investment Capital Expenditures, the Board of Directors (with the concurrence of the Conflicts Committee) shall determine the allocation between the amounts paid for each. 

“Operating Surplus” means, with respect to any period ending prior to the Liquidation Date, on a cumulative basis and without
duplication: 

  
 10 

 (a)        the sum of (i) $27,000,000, (ii) all
cash receipts of the Partnership Group (or the Partnership’s proportionate share of cash receipts in the case of Subsidiaries that are not wholly-owned) for the period beginning on the Closing Date and ending on the last day of such period,
other than cash receipts from Interim Capital Transactions (excluding return on capital from Investment Capital Expenditures); provided, that cash receipts from the termination of a Hedge Contract prior to its specified termination date shall
be included in Operating Surplus in equal quarterly installments over the remaining scheduled life of such Hedge Contract, (iii) all cash receipts of the Partnership Group (or the Partnership’s proportionate share of cash receipts in the
case of Subsidiaries that are not wholly-owned) after the end of such period but on or before the date of determination of Operating Surplus with respect to such period resulting from Working Capital Borrowings and (iv) the amount of cash
distributions paid on equity issued (including Incremental Incentive Distributions) in connection with the construction of a Capital Improvement or replacement of a capital asset and paid in respect of the period beginning on the date that the Group
Member enters into a binding obligation to commence the construction of such Capital Improvement or replacement of such capital asset and ending on the earlier to occur of the date that such Capital Improvement or replacement capital asset Commences
Commercial Service or the date that it is abandoned or disposed of (equity issued to fund the construction period interest payments on debt incurred (including periodic net payments under related Hedge Contracts), or construction period
distributions on equity issued (including Incremental Incentive Distributions), to finance the construction of a Capital Improvement or replacement of a capital asset shall also be deemed to be equity issued to finance the construction of a Capital
Improvement or replacement of such capital asset for purposes of this clause (iv)), less 

(b)        the sum of (i) Operating Expenditures for the period beginning immediately after the
Closing Date and ending on the last day of such period, (ii) the amount of cash reserves (or the Partnership’s proportionate share of cash reserves in the case of Subsidiaries that are not wholly owned) established by the Board of
Directors to provide funds for future Operating Expenditures, (iii) all Working Capital Borrowings not repaid within twelve months after having been incurred and (iv) any cash loss realized on disposition of an Investment Capital
Expenditure; provided, however, that disbursements made (including contributions to a Group Member or disbursements on behalf of a Group Member) or cash reserves established, increased or reduced after the end of such period but on or
before the date of determination of Available Cash with respect to such period shall be deemed to have been made, established, increased or reduced, for purposes of determining Operating Surplus, within such period if the Board of Directors so
determines. 
 Notwithstanding the foregoing, “Operating Surplus” with respect to the Quarter in which the Liquidation Date
occurs and any subsequent Quarter shall equal zero. Cash receipts from Investment Capital Expenditures shall be treated as cash receipts only to the extent they are a return on capital, but in no event shall a return of capital be treated as cash
receipts. 
 “Opinion of Counsel” means a written opinion of counsel (who may be regular counsel to the Partnership or the
General Partner or any of its Affiliates) acceptable to the Board of Directors. 
 “Organizational Limited Partner” means
Dynagas Holding Ltd. in its capacity as the organizational limited partner of the Partnership pursuant to this Agreement. 

“Outstanding” means, with respect to Partnership Interests, all Partnership Interests that are issued by the Partnership and
reflected as outstanding on the Partnership’s books and records as of the date of determination; provided, however, that if at any time any Person or Group beneficially owns more than 4.9% of the Outstanding Partnership Interests
of any class or series then Outstanding (or would own such percentage in the event this limitation were applied to other Persons or Groups), all Partnership Interests owned by such Person or Group in excess of such limitation shall not be voted on
any matter and shall not be considered to be Outstanding when sending notices of a meeting of Limited Partners to vote on any matter (unless otherwise required by law), calculating required votes (except for purposes of nominating a Person for
election to the Board of Directors pursuant to Section 7.3), determining the presence of a quorum or for other similar purposes under this Agreement, except that Partnership Interests so owned shall be considered to be Outstanding for purposes
of Section 11.1(b)(iv) (such Partnership Interests shall not, however, be treated as a separate class or series of Partnership Interests for purposes of this Agreement); provided, further, that the foregoing limitation shall not
apply to (i) the General 

  
 11 

 
Partner or its Affiliates, (ii) any Person or Group who acquired more than 4.9% of any Partnership Interests with the prior approval of the Board of Directors after considering the potential
effects of such approval on the Partnership, except, in each case, such limitation shall remain applicable with respect to the voting of Common Units in the election of the Elected Directors as provided in Section 7.2(a)(ii), or
(iii) with respect to any voting rights thereof, Preferred Units. 
 “Over-Allotment Option” means the over-allotment
option granted to the Underwriters pursuant to the Underwriting Agreement.
 “Parity Securities” has the meaning set
forth in Section 16.7(b). 
 “Partners” means the General Partner and the Limited Partners. 

“Partnership” means Dynagas LNG Partners LP, a Marshall Islands limited partnership, and any successors thereto. 

“Partnership Group” means the Partnership and its Subsidiaries, including the Operating Company, treated as a single
consolidated entity. 
 “Partnership Interest” means any class or series of equity interest in the Partnership (but
excluding any options, rights, warrants, restricted units and appreciation rights relating to an equity interest in the Partnership), including Common Units, Preferred Units, Subordinated Units, General Partner Units and Incentive Distribution
Rights. 
 “Paying Agent” means Computershare, acting in its capacity as paying agent for the Series A Preferred
Units, and its respective successors and assigns or any other payment agent appointed by the General Partner; provided, however, that if no Paying Agent is specifically designated for the Series A Preferred Units, the General
Partner shall act in such capacity. 
 “Percentage Interest” means as of any date of determination (a) as to the
General Partner with respect to General Partner Units and as to any Unitholder with respect to Units (other than Preferred Units), the product obtained by multiplying (i) 100% less the percentage applicable to clause (b) below by
(ii) the quotient obtained by dividing (A) the number of Units (other than Preferred Units) held by such Unitholder or the number of General Partner Units held by the General Partner, as the case may be, by (B) the total number of all
Outstanding Units (other than Preferred Units) and General Partner Units, and (b) as to the holders of other Partnership Interests issued by the Partnership in accordance with Section 5.4, the percentage established as a part of such
issuance. The Percentage Interest with respect to an Incentive Distribution Right and to a Preferred Unit shall at all times be zero. 

“Person” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust,
unincorporated organization, association, governmental agency or political subdivision thereof or other entity. 
 “Plan of
Conversion” has the meaning assigned to such term in Section 14.1. 
 “Preferred Units” means a
Partnership Interest, designated as a “Preferred Unit,” including the Series A Preferred Units, which entitles the holder thereof to a preference with respect to distributions, or as to the distribution of assets upon
any Liquidation Event, over Common Units. 
 “Prior Agreement” means the Second Amended and Restated Agreement of
Limited Partnership of the Partnership dated as of November 18, 2013. 
 “Pro Rata” means (a) when used with
respect to Units (other than Preferred Units) or any class or series thereof, apportioned equally among all designated Units (other than Preferred Units) in accordance with their relative Percentage Interests, (b) when used with respect to
Partners or Record Holders, apportioned among all Partners or Record Holders in accordance with their relative Percentage Interests and (c) when used with respect to holders of Incentive Distribution Rights or Preferred Units (or a particular
series thereof), apportioned equally among all holders of Incentive Distribution Rights or Preferred Units (or such series thereof) in accordance with the 

  
 12 

 
relative number or percentage of Incentive Distribution Rights or Preferred Units (or such series thereof), as applicable, held by each such holder. 

“Purchase Date” means the date determined by the General Partner as the date for purchase of all Outstanding Limited Partner
Interests of a certain class or series (other than Limited Partner Interests owned by the General Partner and its Affiliates) pursuant to Article XV. 

“Quarter” means, unless the context requires otherwise, a fiscal quarter, or, with respect to the first fiscal quarter
including the Closing Date, the portion of such fiscal quarter after the Closing Date, of the Partnership. 
 “Record Date”
means the date established by the Board of Directors or otherwise in accordance with this Agreement for determining (a) the identity of the Record Holders entitled to notice of, or to vote at, any meeting of Limited Partners or entitled to vote
by ballot or give approval of Partnership action in writing without a meeting or entitled to exercise rights in respect of any lawful action of Limited Partners or (b) the identity of Record Holders entitled to receive any report or
distribution or to participate in any offer. 
 “Record Holder” means (a) the Person in whose name a Common Unit is
registered on the books of the Transfer Agent as of the opening of business on a particular Business Day, (b) the Person in whose name a Preferred Unit is registered on the books of the Transfer Agent as of, unless otherwise set forth in
Article XVI, the opening of business on a particular Business Day, or (c) with respect to other Partnership Interests, the Person in whose name any such other Partnership Interest is registered on the books that the Board of Directors has
caused to be kept as of the opening of business on such Business Day. 
 “Registration Statement” means the
Partnership’s Registration Statement on Form F-1 (Registration No. 333-191653) as it has been or as it may be amended or supplemented from time to time, filed by the Partnership with the Commission under the Securities Act to register the
offering and sale of the Common Units in the Initial Offering. 
 “Reset MQD” has the meaning set forth in
Section 5.10(e). “Reset Notice” has the meaning set forth in Section 5.10(b). 
 “Second Target
Distribution” means $0.456 per Unit per Quarter, subject to adjustment in accordance with Section 6.5. 
 “Securities
Act” means the Securities Act of 1933, as amended, supplemented or restated from time to time and any successor to such statute. 

“Senior Securities” has the meaning set forth in Section 16.7(c). 

“Series A Distribution Payment Date” means each February 12, May 12, August 12 and
November 12, commencing on November 12, 2015; provided, however, that if any Series A Distribution Payment Date would otherwise occur on a day that is not a Business Day, such Series A Distribution Payment
Date shall instead be on the immediately succeeding Business Day. 
 “Series A Distribution Period” means a period of
time from and including the preceding Series A Distribution Payment Date (other than the initial Series A Distribution Period, which shall commence on and include the Series A Original Issue Date), to but excluding the next
Series A Distribution Payment Date for such Series A Distribution Period. 
 “Series A Distribution
Rate” means a rate equal to [●]% per annum of the Stated Series A Liquidation Preference per Series A Preferred Unit. 

“Series A Distribution Record Date” has the meaning set forth in Section 16.3(b). 

“Series A Distributions” means distributions with respect to Series A Preferred Units pursuant to Section 16.3.

  
 13 

 “Series A Holder” means a Record Holder of the Series A Preferred
Units. 
 “Series A Liquidation Preference” means a liquidation preference for each Series A Preferred Unit
initially equal to $25.00 per unit, which liquidation preference shall be subject to (a) increase by the per Series A Preferred Unit amount of any accumulated and unpaid distributions (whether or not such distributions shall have been
declared) and (b) decrease upon a distribution in connection with a Liquidation Event described in Section 16.4 which does not result in payment in full of the liquidation preference of such Series A Preferred Unit. 

“Series A Original Issue Date” means [●], 2015. 

“Series A Payments” means, collectively, Series A Distributions and Series A Redemption Payments. 

“Series A Preferred Unit” means a Preferred Unit having the designations, preferences, rights, powers and duties set
forth in Article XVI. 
 “Series A Redemption Date” has the meaning set forth in Section 16.6. 

“Series A Redemption Notice” has the meaning set forth in Section 16.6(b). 

“Series A Redemption Price” has the meaning set forth in Section 16.6(a). 

“Series A Redemption Payments” means payments to be made to the holders of Series A Preferred Units to redeem
Series A Preferred Units in accordance with Section 16.6. 
 “Special Approval” means approval by a majority of
the members of the Conflicts Committee. 
 “Stated Series A Liquidation Preference” means an amount equal to
$25.00 per Series A Preferred Unit. 
 “Subordinated Unit” means a Unit representing a fractional part of the
Partnership Interests of all Limited Partners and having the rights and obligations specified with respect to Subordinated Units in this Agreement. The term “Subordinated Unit” does not include a Common Unit. A Subordinated Unit that is
convertible into a Common Unit shall not constitute a Common Unit until such conversion occurs. 
 “Subordination Period”
means the period commencing on the Closing Date and ending on the first to occur of the following dates: 

(a)        the second Business Day following the distribution of Available Cash to Partners pursuant
to Section 6.2(a) in respect of any Quarter ending on or after December 31, 2016, in respect of which (i)(A) distributions of Available Cash from Operating Surplus on each of the Outstanding Common Units, Subordinated Units, General
Partner Units and any other Outstanding Units that are senior or equal in right of distribution to the Subordinated Units equaled or exceeded the Minimum Quarterly Distribution during each of the three consecutive, non-overlapping four-Quarter
periods immediately preceding such date and (B) the Adjusted Operating Surplus for each of the three consecutive, non-overlapping four-Quarter periods immediately preceding such date equaled or exceeded the sum of the Minimum Quarterly
Distribution on all of the Common Units, Subordinated Units, General Partner Units and any other Units that are senior or equal in right of distribution to the Subordinated Units that were Outstanding during such periods on a Fully Diluted Weighted
Average Basis with respect to each such period and (ii) there are no Cumulative Common Unit Arrearages; 

(b)        at any time on or after December 31, 2016, the date on which the holder or holders of
a majority of the Outstanding Subordinated Units elect to convert the Outstanding Subordinated Units into Common Units in accordance with the provisions of Section 5.6(b); and 

(c)        the date on which the General Partner is removed as general partner of the Partnership upon
the requisite vote by holders of Outstanding Units under circumstances where Cause does not exist and no Units held by the General Partner and its Affiliates are voted in favor of such removal. 

  
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 “Subsidiary” means, with respect to any Person, (a) a corporation of which
more than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of
determination, by such Person, by one or more Subsidiaries (as defined, but excluding subsection (d) of this definition) of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a
Subsidiary (as defined, but excluding subsection (d) of this definition) of such Person is, at the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries (as defined, but excluding subsection
(d) of this definition) of such Person, or a combination thereof, (c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries (as defined, but excluding subsection (d) of this
definition) of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or
other governing body of such Person, or (d) any other Person in which such Person, one or more Subsidiaries (as defined, but excluding this subsection (d) of this definition) of such Person, or a combination thereof, directly or
indirectly, at the date of determination, has (i) less than a majority ownership interest or (ii) less than the power to elect or direct the election of a majority of the directors or other governing body of such Person, provided,
that (A) such Person, one or more Subsidiaries (as defined, but excluding this subsection (d) of this definition) of such Person, or a combination thereof, directly or indirectly, at the date of the determination, has at least a 20%
ownership interest in such other Person, (B) such Person accounts for such other Person (under U.S. GAAP, as in effect on the later of the date of investment in such other Person or material expansion of the operations of such other Person) on
a consolidated or equity accounting basis, (C) such Person has directly or indirectly material negative control rights regarding such other Person including over such other Person’s ability to materially expand its operations beyond that
contemplated at the date of investment in such other Person, and (D) such other Person is (i) other than with respect to the Operating Company, formed and maintained for the sole purpose of owning or leasing, operating and chartering no
more than 10 vessels for a period of no more than 40 years, and (ii) obligated under its constituent documents, or as a result of a unanimous agreement of its owners, to distribute to its owners all of its income on at least an annual basis
(less any cash reserves that are approved by such Person). 
 “Surviving Business Entity” has the meaning assigned to such
term in Section 14.2(b). 
 “Third Target Distribution” means $0.548 per Unit per Quarter, subject to adjustment in
accordance with Section 6.5. 
 “Trading Day” means, for the purpose of determining the Current Market Price of any
class or series of Limited Partner Interests, a day on which the principal National Securities Exchange on which such class or series of Limited Partner Interests is listed is open for the transaction of business or, if Limited Partner Interests of
a class or series are not listed on any National Securities Exchange, a day on which banking institutions in New York City generally are open. 

“transfer” has the meaning assigned to such term in Section 4.4(a). 

“Transfer Agent” means such bank, trust company or other Person (including the General Partner or one of its Affiliates) as
shall be appointed from time to time by the Partnership to act as registrar and transfer agent for the Common Units and the Preferred Units; provided, however, that if no Transfer Agent is specifically designated for any other
Partnership Interests, the Partnership shall act in such capacity. 
 “Underwriter” means each Person named as an
underwriter in Schedule I to the Underwriting Agreement who purchases Common Units pursuant thereto. 
 “Underwriting
Agreement” means the Underwriting Agreement dated November 12, 2013 among the Underwriters, Dynagas Holdings Ltd., the Partnership, the General Partner, the Operating Company, Dynagas Operating GP LLC and Dynagas Equity Holding Ltd.
providing for the purchase of Common Units from Dynagas Holding Ltd. by such Underwriters in connection with the Initial Offering. 

  
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 “Unit” means a Partnership Interest that is designated as a “Unit” and
shall include Common Units, Preferred Units and Subordinated Units, but shall not include (i) General Partner Units (or the General Partner Interest represented thereby) or (ii) the Incentive Distribution Rights. 

“Unitholders” means the holders of Units. 

“Unit Majority” means (i) during the Subordination Period, at least (a) a majority of the Outstanding Common Units
(excluding Common Units owned by the General Partner and its Affiliates) voting as a single class and (b) a majority of the Outstanding Subordinated Units, voting as a single class, and (ii) after the end of the Subordination Period, at
least a majority of the Outstanding Common Units, voting as a single class. 
 “Unit Register” means the register of the
Partnership for the registration and transfer of Limited Partnership Interests as provided in Section 4.5. 
 “Unrecovered
Capital” means at any time, with respect to a Common Unit, the Initial Unit Price less the sum of all distributions constituting Capital Surplus theretofore made in respect of an Initial Common Unit and any distributions of cash (or the Net
Agreed Value of any distributions in kind) in connection with the dissolution and liquidation of the Partnership theretofore made in respect of an Initial Common Unit, adjusted as the Board of Directors determines to be appropriate to give effect to
any distribution, subdivision or combination of such Units. 
 “U.S. GAAP” means United States generally accepted
accounting principles consistently applied. 
 “Vessel Interests” means the capital stock and other equity interests in
Dynagas Equity Holding Ltd., a Liberian corporation, which owns all of the issued and outstanding share capital of each of (i) Quinta Group Corp., a Nevis corporation, which owns all of the issued and outstanding share capital of Pegasus
Shipholding S.A., a Marshall Islands corporation, which owns the liquefied natural gas (“LNG”) carrier the Clean Energy; (ii) Seacrown Maritime Ltd., a Marshall Islands corporation, which owns the LNG carrier, the Clean
Force; and (iii) Pelta Holdings S.A., a Nevis corporation, which owns all of the issued and outstanding share capital of Lance Shipping S.A., a Marshall Islands corporation, which owns the LNG carrier, the Ob River. 

“Volume-Weighted Average Market Price” means, for a specified period of consecutive Trading Days for the Common Units, an
amount equal to (i) the cumulative sum of the products of (x) the sale price for each trade of Common Units occurring during such period multiplied by (y) the number of Common Units sold at such price, divided by (ii) the total
number of Common Units so traded during such period. 
 “Withdrawal Opinion of Counsel” has the meaning assigned to such
term in Section 11.1(b)(i). 
 “Working Capital Borrowings” means borrowings used solely for working capital purposes
or to pay distributions to Partners made pursuant to a credit facility, commercial paper facility or similar financing arrangement available to a Group Member, provided, that when such borrowing is incurred it is the intent of the borrower to
repay such borrowing within 12 months from the date of such borrowings other than from additional Working Capital Borrowings. 

Section 1.2        Construction. Unless the context requires otherwise: (a) any
pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to
Articles and Sections of this Agreement; (c) the term “include” or “includes” means includes, without limitation, and “including” means including, without limitation; and (d) the terms “hereof”,
“herein” and “hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement. The table of contents and headings contained in this Agreement are for reference purposes only, and shall not
affect in any way the meaning or interpretation of this Agreement. 

  
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 ARTICLE II 

ORGANIZATION 

Section 2.1        Formation. The General Partner and the Organizational Limited Partner
previously formed the Partnership as a limited partnership pursuant to the provisions of the Marshall Islands Act and hereby amend and restate the Prior Agreement in its entirety. This amendment and restatement shall become effective on the date of
this Agreement. Except as expressly provided to the contrary in this Agreement, the rights, duties (including fiduciary duties), liabilities and obligations of the Partners and the administration, dissolution and termination of the Partnership shall
be governed by the Marshall Islands Act. All Partnership Interests shall constitute personal property of the owner thereof for all purposes and a Partner has no interest in specific Partnership property. 

Section 2.2        Name. The name of the Partnership shall be “Dynagas LNG Partners
LP” The Partnership’s business may be conducted under any other name or names as determined by the Board of Directors. The words “Limited Partnership” or the letters “LP” or similar words or letters shall be included in
the Partnership’s name where necessary for the purpose of complying with the laws of any jurisdiction that so requires. The Board of Directors may change the name of the Partnership at any time and from time to time in compliance with the
requirements of the Marshall Islands Act and shall notify the General Partner and the Limited Partners of such change in the next regular communication to the Limited Partners. 

Section 2.3        Registered Office; Registered Agent; Principal Office; Other Offices.
Unless and until changed by the Board of Directors, the registered office of the Partnership in The Marshall Islands shall be located at Trust Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH 96960 and the registered
agent for service of process on the Partnership in The Marshall Islands at such registered office shall be The Trust Company of the Marshall Islands, Inc. The principal executive office of the Partnership shall be located at 23, Rue Basse, 98000
Monaco, or such other place as the Board of Directors may from time to time designate by notice to the General Partner and the Limited Partners. The Partnership may maintain offices at such other place or places within or outside the Marshall
Islands as the Board of Directors determines to be necessary or appropriate. The address of the General Partner shall be at 23, Rue Basse, 98000 Monaco, or such other place as the General Partner may from time to time designate by notice to the
Limited Partners. 
 Section 2.4        Purpose and Business. The purpose and nature of
the business to be conducted by the Partnership shall be to (a) engage directly in, or enter into or form any corporation, partnership, joint venture, limited liability company or other arrangement to engage indirectly in, any business activity
that lawfully may be conducted by a limited partnership organized pursuant to the Marshall Islands Act and, in connection therewith, to exercise all of the rights and powers conferred upon the Partnership pursuant to the agreements relating to such
business activity, and (b) do anything necessary or appropriate to the foregoing, including the making of capital contributions or loans to a Group Member. 

Section 2.5        Powers. The Partnership shall be empowered to do any and all acts and
things necessary and appropriate for the furtherance and accomplishment of the purposes and business described in Section 2.4 and for the protection and benefit of the Partnership. 

Section 2.6        Term. The term of the Partnership commenced upon the filing of the
Certificate of Limited Partnership in accordance with the Marshall Islands Act and shall continue in existence until the dissolution of the Partnership in accordance with the provisions of Article XII. The existence of the Partnership as a separate
legal entity shall continue until the cancellation of the Certificate of Limited Partnership as provided in the Marshall Islands Act. 

Section 2.7        Title to Partnership Assets. Title to Partnership assets, whether real,
personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any portion thereof.
Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner, one or more of its Affiliates or one or more nominees, as the Board of Directors may determine. The General Partner hereby declares and
warrants that any Partnership assets for which record title is held in the name of the General Partner or 

  
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one or more of its Affiliates or one or more nominees shall be held by the General Partner or such Affiliate or nominee for the use and benefit of the Partnership in accordance with the
provisions of this Agreement; provided, however, that the General Partner shall use commercially reasonable efforts to cause record title to such assets (other than those assets in respect of which the Board of Directors determines
that the expense and difficulty of conveyancing makes transfer of record title to the Partnership impracticable) to be vested in the Partnership as soon as reasonably practicable; and, provided, further, that, prior to the withdrawal
or removal of the General Partner or as soon thereafter as practicable, the General Partner shall use reasonable efforts to effect the transfer of record title to the Partnership and, prior to any such transfer, will provide for the use of such
assets in a manner satisfactory to the Board of Directors. All Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective of the name in which record title to such Partnership assets is held. 

ARTICLE III 
 RIGHTS OF
LIMITED PARTNERS 
 Section 3.1        Limitation of Liability. The Limited Partners
shall have no liability under this Agreement except as expressly provided in this Agreement or the Marshall Islands Act. 

Section 3.2        Management of Business. No Limited Partner, in its capacity as such,
shall participate in the operation, management or control (within the meaning of the Marshall Islands Act) of the Partnership’s business, transact any business in the Partnership’s name or have the power to sign documents for or otherwise
bind the Partnership. Any action taken by any Affiliate of the General Partner or any officer, director, employee, manager, member, general partner, agent or trustee of the General Partner or any of its Affiliates, or any officer, director,
employee, manager, member, general partner, agent or trustee of a Group Member, in its capacity as such, shall not be deemed to be participation in the control of the business of the Partnership by a limited partner of the Partnership (within the
meaning of Section 30 of the Marshall Islands Act) and shall not affect, impair or eliminate the limitations on the liability of the Limited Partners under this Agreement. 

Section 3.3        Outside Activities of the Limited Partners. Subject to the provisions
of Section 7.13 and the Omnibus Agreement, which shall continue to be applicable to the Persons referred to therein, regardless of whether such Persons shall also be Limited Partners, each Limited Partner shall be entitled to and may have
business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities in direct competition with the Partnership Group. Neither the Partnership nor any of the other
Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited Partner. 

Section 3.4        Rights of Limited Partners. 

(a)        In addition to other rights provided by this Agreement or by the Marshall Islands Act, and
except as limited by Section 3.4(b), each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner’s interest as a Limited Partner in the Partnership, upon reasonable written demand stating the purpose
of such demand and at such Limited Partner’s own expense, to: 
 (i)        have furnished to
him a current list of the name and last known business, residence or mailing address of each Partner; 

(ii)        obtain true and full information regarding the amount of cash and a description and
statement of the Net Agreed Value of any other Capital Contribution by each Partner and which each Partner has agreed to contribute in the future, and the date on which each became a Partner; 

(iii)        have furnished to him a copy of this Agreement and the Certificate of Limited Partnership
and all amendments thereto; 
 (iv)        obtain true and full information regarding the status of
the business and financial condition of the Partnership Group; and 
 (v)        obtain such other
information regarding the affairs of the Partnership as is just and reasonable. 

  
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 (b)        The Board of Directors may keep confidential
from the Limited Partners, for such period of time as the Board of Directors deems reasonable, (i) any information that the Board of Directors reasonably believes to be in the nature of trade secrets or (ii) other information the
disclosure of which the Board of Directors in good faith believes (A) is not in the best interests of the Partnership Group, (B) could damage the Partnership Group or its business or (C) that any Group Member is required by law or by
agreement with any third party to keep confidential (other than agreements with Affiliates of the Partnership the primary purpose of which is to circumvent the obligations set forth in this Section 3.4). 

ARTICLE IV 

CERTIFICATES; RECORD HOLDERS; TRANSFER OF PARTNERSHIP INTERESTS 

Section 4.1        Certificates. Partnership Interests shall be evidenced in certificated
and uncertificated form as determined by the Board of Directors. Certificates that may be issued shall be executed on behalf of the Partnership by the Chairman of the Board of Directors, President, Chief Executive Officer or any Executive Vice
President or Vice President and the Chief Financial Officer or the Secretary or any Assistant Secretary of the General Partner. If a Transfer Agent has been appointed for a class or series of Partnership Interests, no Certificate for such class or
series of Partnership Interests shall be valid for any purpose until it has been countersigned by the Transfer Agent; provided, however, that if the Board of Directors elects to cause the Partnership to issue Partnership Interests of
such class or series in global form, the Certificate shall be valid upon receipt of a certificate from the Transfer Agent certifying that the Partnership Interests have been duly registered in accordance with the directions of the Partnership. If
Common Units are evidenced by Certificates, on or after the date on which Subordinated Units are converted into Common Units pursuant to the terms of Section 5.6, the Record Holders of such Subordinated Units (i) if the Subordinated Units
are evidenced by Certificates, may exchange such Certificates for Certificates evidencing Common Units or (ii) if the Subordinated Units are not evidenced by Certificates, shall be issued Certificates evidencing Common Units. 

Section 4.2        Mutilated, Destroyed, Lost or Stolen Certificates. 

(a)        If any mutilated Certificate is surrendered to the Transfer Agent (for Common Units or
Preferred Units) or the Partnership (for Partnership Interests other than Common Units or Preferred Units), the appropriate Officers on behalf of the Partnership shall execute, and the Transfer Agent (for Common Units or Preferred Units) shall
countersign and deliver in exchange therefor, a new Certificate evidencing the same number and type of Partnership Interests as the Certificate so surrendered. 

(b)        The appropriate Officers on behalf of the Partnership shall execute and deliver, and the
Transfer Agent (for Common Units or Preferred Units) shall countersign, a new Certificate in place of any Certificate previously issued, or issue uncertificated Units, if the Record Holder of the Certificate: 

(i)        makes proof by affidavit, in form and substance satisfactory to the
Partnership, that a previously issued Certificate has been lost, destroyed or stolen; 

(ii)        requests the issuance of a new Certificate or the issuance of
uncertificated Units before the Partnership has notice that the Certificate has been acquired by a purchaser for value in good faith and without notice of an adverse claim; 

(iii)        if requested by the Partnership, delivers to the Partnership a bond, in
form and substance satisfactory to the Partnership, with surety or sureties and with fixed or open penalty as the Board of Directors may direct to indemnify the Partnership, the Partners, the General Partner and the Transfer Agent against any claim
that may be made on account of the alleged loss, destruction or theft of the Certificate; and 

(iv)        satisfies any other reasonable requirements imposed by the Board of
Directors. 
 If a Limited Partner fails to notify the Partnership within a reasonable period of time after he has notice of the loss,
destruction or theft of a Certificate, and a transfer of the Limited Partner Interests represented by the 

  
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Certificate is registered before the Partnership, the General Partner or the Transfer Agent receives such notification, the Limited Partner shall be precluded from making any claim against the
Partnership, the General Partner or the Transfer Agent for such transfer or for a new Certificate or uncertificated Units. 

(c)        As a condition to the issuance of any new Certificate or uncertificated Units under this
Section 4.2, the Partnership may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Transfer Agent)
reasonably connected therewith. 
 Section 4.3        Record Holders. The Partnership
shall be entitled to recognize the Record Holder as the Partner with respect to any Partnership Interest and, accordingly, shall not be bound to recognize any equitable or other claim to, or interest in, such Partnership Interest on the part of any
other Person, regardless of whether the Partnership shall have actual or other notice thereof, except as otherwise provided by law or any applicable rule, regulation, guideline or requirement of any National Securities Exchange on which such
Partnership Interests are listed or admitted to trading. Without limiting the foregoing, when a Person (such as a broker, dealer, bank, trust company or clearing corporation or an agent of any of the foregoing) is acting as nominee, agent or in some
other representative capacity for another Person in acquiring and/or holding Partnership Interests, as between the Partnership on the one hand, and such other Persons on the other, such representative Person (a) shall be the Record Holder of
such Partnership Interest and (b) shall be bound by this Agreement and shall have the rights and obligations of a Partner hereunder and as, and to the extent, provided for herein. 

Section 4.4        Transfer Generally. 

(a)        The term “transfer,” when used in this Agreement with respect to a Partnership
Interest, shall mean a transaction (i) by which the General Partner assigns its General Partner Units to another Person or by which a holder of Incentive Distribution Rights assigns its Incentive Distribution Rights to another Person, and
includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition by law or otherwise or (ii) by which the holder of a Limited Partner Interest (other than an Incentive Distribution Right)
assigns such Limited Partner Interest to another Person who is or becomes a Limited Partner, and includes a sale, assignment, gift, exchange or any other disposition by law or otherwise, excluding a pledge, encumbrance, hypothecation or mortgage,
but including any transfer upon foreclosure of any pledge, encumbrance, hypothecation or mortgage. 

(b)        No Partnership Interest shall be transferred, in whole or in part, except in accordance
with the terms and conditions set forth in this Article IV. Any transfer or purported transfer of a Partnership Interest not made in accordance with this Article IV shall be null and void. 

(c)        Nothing contained in this Agreement shall be construed to prevent a disposition by any
stockholder, member, partner or other owner of the General Partner of any or all of the shares of stock, membership interests, partnership interests or other ownership interests in the General Partner, and the term “transfer” shall not
mean any such disposition. 
 Section 4.5        Registration and Transfer of Limited
Partner Interests. 
 (a)        The General Partner shall keep or cause to be kept on behalf of
the Partnership a register in which, subject to such reasonable regulations as it may prescribe and subject to the provisions of Section 4.5(b), the Partnership will provide for the registration and transfer of Limited Partner Interests. The
Transfer Agent is hereby appointed registrar and transfer agent for the purpose of registering Common Units and Preferred Units and transfers of such Common Units and Preferred Units as herein provided. The Partnership shall not recognize transfers
of Certificates evidencing Limited Partner Interests unless such transfers are effected in the manner described in this Section 4.5. Upon surrender of a Certificate for registration of transfer of any Limited Partner Interests evidenced by a
Certificate, and subject to the provisions of Section 4.5(b), the appropriate Officers on behalf of the Partnership shall execute and deliver, and in the case of Common Units, the Transfer Agent shall countersign and deliver, in the name of the
holder or the designated transferee or transferees, as required pursuant to the holder’s instructions, one or more new Certificates evidencing the same aggregate number and type of Limited Partner Interests as was evidenced by the Certificate
so surrendered. 

  
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 (b)        The Partnership shall not recognize any
transfer of Limited Partner Interests until the Certificates evidencing such Limited Partner Interests are surrendered for registration of transfer. No charge shall be imposed by the Partnership for such transfer; provided, however,
that as a condition to the issuance of any new Certificate under this Section 4.5, the Partnership may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed with respect thereto. 

(c)        By acceptance of the transfer of a Limited Partner Interest in accordance with this
Section 4.5 and except as otherwise provided in Section 4.8, each transferee of a Limited Partner Interest (including any nominee holder or an agent or representative acquiring such Limited Partner Interests for the account of another
Person) (i) shall be admitted to the Partnership as a Limited Partner with respect to the Limited Partner Interests so transferred to such Person when any such transfer or admission is reflected in the books and records of the Partnership and
such Limited Partner becomes the Record Holder of the Limited Partner Interests so transferred, (ii) shall become bound, and shall be deemed to have agreed to be bound, by the terms of this Agreement, (iii) represents that the transferee
has the capacity, power and authority to enter into this Agreement and (iv) makes the consents, acknowledgments and waivers contained in this Agreement, all with or without execution of this Agreement by such Person. The transfer of any Limited
Partner Interests and the admission of any new Limited Partner shall not constitute an amendment to this Agreement. 

(d)        Subject to the provisions set forth in this Article IV, Limited Partner Interests shall be
freely transferable. 
 (e)        The General Partner and its Affiliates shall have the right at
any time to transfer their Subordinated Units, Common Units (whether issued upon conversion of the Subordinated Units or otherwise) or any Preferred Units to one or more Persons. 

Section 4.6        Transfer of the General Partner’s General Partner Interest. 

(a)        Subject to Section 4.6(c) below, prior to December 31, 2023, the General Partner
shall not transfer all or any part of its General Partner Interest (represented by General Partner Units) to a Person unless such transfer (i) has been approved by the prior written consent or vote of the holders of at least a majority of the
Outstanding Common Units (excluding Common Units held by the General Partner and its Affiliates) or (ii) is of all, but not less than all, of its General Partner Interest to (A) an Affiliate of the General Partner (other than an
individual) or (B) another Person (other than an individual) in connection with (1) the merger or consolidation of the General Partner with or into such other Person or (2) the transfer by the General Partner of all or substantially
all of its assets to such other Person. 
 (b)        Subject to Section 4.6(c) below, on or
after December 31, 2023, the General Partner may transfer all or any of its General Partner Interest without Unitholder approval. 

(c)        Notwithstanding anything herein to the contrary, no transfer by the General Partner of all
or any part of its General Partner Interest to another Person shall be permitted unless (i) the transferee agrees to assume the rights and duties of the General Partner under this Agreement and to be bound by the provisions of this Agreement,
(ii) the Partnership receives an Opinion of Counsel that such transfer would not result in the loss of limited liability of any Limited Partner or of any limited partner or member of any other Group Member under the laws of any such
entity’s jurisdiction of formation and (iii) such transferee also agrees to purchase all (or the appropriate portion thereof, if applicable) of the partnership or membership interest of the General Partner as the general partner or
managing member, if any, of each other Group Member. In the case of a transfer pursuant to and in compliance with this Section 4.6, the transferee or successor (as the case may be) shall, subject to compliance with the terms of
Section 10.3, be admitted to the Partnership as the General Partner immediately prior to the transfer of the General Partner Interest, and the business of the Partnership shall continue without dissolution. 

Section 4.7        Transfer of Incentive Distribution Rights. Prior to December 31,
2016, a holder of Incentive Distribution Rights may transfer any or all of the Incentive Distribution Rights held by such holder without any consent of the Unitholders to (a) an Affiliate of such holder (other than an individual) or
(b) another Person (other than an individual) in connection with (i) the merger or consolidation of such holder of Incentive 

  
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Distribution Rights with or into such other Person or (ii) the transfer by such holder of all or substantially all of its assets to such other Person. Any other transfer of the Incentive
Distribution Rights prior to December 31, 2016, shall require the prior approval of holders of at least a majority of the Outstanding Common Units (excluding Common Units held by the General Partner and its Affiliates). On or after
December 31, 2016, the General Partner or any other holder of Incentive Distribution Rights may transfer any or all of its Incentive Distribution Rights without Unitholder approval. Notwithstanding anything herein to the contrary, (i) the
transfer of Common Units issued pursuant to Section 5.10 shall not be treated as a transfer of all or any part of the Incentive Distribution Rights and (ii) no transfer of Incentive Distribution Rights to another Person shall be permitted
unless the transferee agrees to be bound by the provisions of this Agreement. The General Partner and any transferee or transferees of the Incentive Distribution Rights may agree in a separate instrument as to the General Partner’s exercise of
its rights with respect to the Incentive Distribution Rights under Section 11.3. 

Section 4.8        Restrictions on Transfers. 

(a)        Except as provided in Section 4.8(b) below, but notwithstanding the other provisions
of this Article IV, no transfer of any Partnership Interests shall be made if such transfer would (i) violate the then applicable U.S. federal or state securities laws, laws of the Republic of the Marshall Islands or rules and regulations of
the Commission, any state securities commission or any other governmental authority with jurisdiction over such transfer or (ii) terminate the existence or qualification of the Partnership or any Group Member under the laws of the jurisdiction
of its formation. 
 (b)        Nothing contained in this Article IV, or elsewhere in this
Agreement, shall preclude the settlement of any transactions involving Partnership Interests entered into through the facilities of any National Securities Exchange on which such Partnership Interests are listed or admitted to trading. 

ARTICLE V 
 CAPITAL
CONTRIBUTIONS AND ISSUANCE OF PARTNERSHIP INTERESTS 
 Section 5.1        Contributions
and Initial Unit Issuances Prior to the Closing Date. In connection with the formation of the Partnership under the Marshall Islands Act (i) Dynagas Holding Ltd. made an initial Capital Contribution of the Vessel Interests to the
Partnership in exchange for 6,735,000 Common Units and 14,985,000 Subordinated Units pursuant to the Contribution Agreement and (ii) the Partnership issued to the General Partner 30,000 General Partner Units (the General Partner Units, together
with the issued common units and subordinated units represent all of the outstanding interests in us) in the Partnership) and 100% of the Incentive Distribution Rights. 

Section 5.2        Tax Election. Effective on or before the Closing Date, the Partnership
shall elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes. 

Section 5.3        Interest and Withdrawal. No interest shall be paid by the Partnership
on Capital Contributions. No Partner shall be entitled to the withdrawal or return of its Capital Contribution, except to the extent, if any, that distributions made pursuant to this Agreement or upon dissolution of the Partnership may be
considered and permitted as such by law and then only to the extent provided for in this Agreement. Except to the extent expressly provided in this Agreement, no Partner shall have priority over any other Partner either as to the return of Capital
Contributions or as to profits, losses or distributions. 
 Section 5.4        Issuances of
Additional Partnership Interests. 
 (a)        Subject to any approvals required by Series A
Holders pursuant to Section 16.5(c)(ii), the Partnership may issue additional Partnership Interests and options, rights, warrants and appreciation rights relating to the Partnership Interests for any Partnership purpose at any time and from
time to time to such Persons for such consideration and on such terms and conditions as the Board of Directors shall determine, all without the approval of any Partners. 

(b)        Each additional Partnership Interest authorized to be issued by the Partnership pursuant to
Section 5.4(a) may be issued in one or more classes, or one or more series of any such classes, with such designations, 

  
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preferences, rights, powers and duties (which may be senior to existing classes and series of Partnership Interests), as shall be fixed by the Board of Directors, including (i) the right to
share in Partnership distributions; (ii) the rights upon dissolution and liquidation of the Partnership; (iii) whether, and the terms and conditions upon which, the Partnership may or shall be required to redeem the Partnership Interest
(including sinking fund provisions); (iv) whether such Partnership Interest is issued with the privilege of conversion or exchange and, if so, the terms and conditions of such conversion or exchange; (v) the terms and conditions upon which
each Partnership Interest will be issued, evidenced by certificates and assigned or transferred; (vi) the method for determining the Percentage Interest as to such Partnership Interest; and (vii) the right, if any, of each such Partnership
Interest to vote on Partnership matters, including matters relating to the relative rights, preferences and privileges of such Partnership Interest. 

(c)        The Board of Directors shall take all actions that it determines to be necessary or
appropriate in connection with (i) each issuance of Partnership Interests and options, rights, warrants and appreciation rights relating to Partnership Interests pursuant to this Section 5.4, (ii) the conversion of the General Partner
Interest (represented by General Partner Units) or any Incentive Distribution Rights into Units pursuant to the terms of this Agreement, (iii) the issuance of Common Units pursuant to Section 5.10, (iv) the admission of additional
Limited Partners and (v) all additional issuances of Partnership Interests. The Board of Directors shall determine the relative rights, powers and duties of the holders of the Units or other Partnership Interests being so issued. The Board of
Directors shall do all things necessary to comply with the Marshall Islands Act and is authorized and directed to do all things that it determines to be necessary or appropriate in connection with any future issuance of Partnership Interests or in
connection with the conversion of the General Partner Interest or any Incentive Distribution Rights into Units pursuant to the terms of this Agreement, including compliance with any statute, rule, regulation or guideline of any federal, state or
other governmental agency or any National Securities Exchange on which the Units or other Partnership Interests are listed or admitted to trading. 

Section 5.5        Limitations on Issuance of Additional Partnership Interests. The
Partnership may issue an unlimited number of Partnership Interests (or options, rights, warrants or appreciation rights related thereto) pursuant to Section 5.4 without the approval of the Partners; provided, however, that no
fractional units shall be issued by the Partnership; and provided, further, that without the approval of the General Partner, the Partnership shall not issue any equity where such issuance may have a material adverse impact on the
General Partner, the General Partner Interest or the ability of the Partnership to satisfy the tests set forth in the definition of Subordination Period. 

Section 5.6        Conversion of Subordinated Units to Common Units. 

(a)        If the Subordination Period expires in accordance with the provisions of
Section 5.6(b), the Subordinated Units shall convert into such number of Common Units as is prescribed by Section 5.6(b) upon such expiration of the Subordination Period. If the Subordination Period expires in accordance with any
provisions of this Agreement other than Section 5.6(b), then the Subordinated Units shall convert into Common Units on a one-for-one basis upon such expiration of the Subordination Period. 

(b)        At any time on or after December 31, 2016, provided that there are no Cumulative
Common Unit Arrearages in respect of the Quarter immediately preceding such date and with the approval of the Conflicts Committee, the holder or holders of a majority of the Outstanding Subordinated Units may elect to convert each Outstanding
Subordinated Unit into a number of Common Units to be determined by multiplying the number of Outstanding Subordinated Units by a fraction, (i) the numerator of which is equal to the aggregate amount of distributions of Available Cash from
Operating Surplus (not to exceed Adjusted Operating Surplus) on the outstanding Subordinated Units (“Historical Distributions”) for the four fiscal Quarters preceding the date of conversion (the “Measurement
Period”) and (ii) the denominator of which is equal to the aggregate amount of distributions that would have been required during the Measurement Period to pay the Minimum Quarterly Distribution on all Outstanding Subordinated Units
during such four-Quarter period; provided, that if the forecasted distributions to be paid from forecasted Operating Surplus (not to exceed forecasted Adjusted Operating Surplus) on the Outstanding Subordinated Units for the four fiscal Quarter
period immediately following the Measurement Period (“Forecasted Distributions”), as determined by the Conflicts Committee, is less than Historical Distributions, then the numerator shall be Forecasted Distributions; provided,
further, however, that the Outstanding Subordinated Units may not convert into Common Units at a ratio that is greater than one-to-one. 

  
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 (c)        Notwithstanding any other provision of this
Agreement, the Subordinated Units will automatically convert into Common Units on a one-for-one basis as set forth in, and pursuant to the terms of, Section 11.4. 

Section 5.7        Limited Preemptive Right. 

(a)        Except as provided in this Section 5.7, no Person shall have any preemptive,
preferential or other similar right with respect to the issuance of any Partnership Interest, whether unissued, held in the treasury or hereafter created. The General Partner shall have the right, which it may from time to time assign in whole or in
part to any of its Affiliates, to purchase Partnership Interests from the Partnership whenever, and on the same terms that, the Partnership issues Partnership Interests to Persons other than the General Partner and its Affiliates, to the extent
necessary to maintain the Percentage Interests of the General Partner and its Affiliates equal to that which existed immediately prior to the issuance of such Partnership Interests; provided, however, that the amount of any series of
Preferred Units issued by the Partnership from time to time that the General Partner shall have a right to purchase pursuant to this Section 5.7 shall equal the product of (a) the aggregate Percentage Interest of the General Partner and
its Affiliates multiplied by (b) the number of such series of Preferred Units so issued. 

(b)        Upon the issuance of any additional Limited Partner Interests by the Partnership (other
than Common Units issued pursuant to Section 5.2(a) and Common Units issued in connection with a reset of the Incentive Distribution target levels or the issuance of Limited Partner Interests upon conversion of outstanding Limited Partner
Interests), the General Partner may, in exchange for a proportionate number of General Partner Units, make additional Capital Contributions in an amount equal to the product obtained by multiplying (i) the quotient determined by dividing
(A) the General Partner’s Percentage Interest immediately prior to such issuance by (B) 100 less the General Partner’s Percentage Interest immediately prior to such issuance by (ii) the amount contributed to the Partnership
by the Limited Partners in exchange for such additional Limited Partner Interests. The General Partner shall not be obligated to make additional Capital Contributions to the Partnership. 

Section 5.8        Splits and Combinations. 

(a)        Subject to Sections 5.8(d) and 6.4 (dealing with adjustments of distribution levels), the
Partnership may make a Pro Rata distribution of Partnership Interests (other than Series A Preferred Units) to all Record Holders of the same class or series of Partnership Interests or may effect a subdivision or combination of the same class or
series of Partnership Interests so long as, after any such event, each Partner holding such class or series of such Partnership Interests shall have the same Percentage Interest in the Partnership as before such event, and any amounts calculated on
a per Unit basis (including those based on the Series A Liquidation Preference or the Stated Series A Unit Liquidation Preference) or stated as a number of Units are proportionately adjusted, to the extent applicable. 

(b)        Whenever such a Pro Rata distribution, subdivision or combination of Partnership Interests
is declared, the Board of Directors shall select a Record Date as of which the distribution, subdivision or combination shall be effective and shall send notice thereof at least 20 days prior to such Record Date to each Record Holder as of a date
not less than 10 days prior to the date of such notice. The Board of Directors also may cause a firm of independent public accountants selected by it to calculate the number of Partnership Interests to be held by each Record Holder after giving
effect to such distribution, subdivision or combination. The Board of Directors shall be entitled to rely on any certificate provided by such firm as conclusive evidence of the accuracy of such calculation. 

(c)        Promptly following any such distribution, subdivision or combination, the Partnership may
issue Certificates or uncertificated Partnership Interests to the Record Holders of Partnership Interests as of the applicable Record Date representing the new number of Partnership Interests held by such Record Holders, or the Board of Directors
may adopt such other procedures that it determines to be necessary or appropriate to reflect such changes. If any such combination results in a smaller total number of Partnership Interests Outstanding, the Partnership shall require, as a condition
to the delivery to a Record Holder of such new Certificate or uncertificated Partnership Interest, the surrender of any Certificate held by such Record Holder immediately prior to such Record Date. 

  
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 (d)        The Partnership shall not issue fractional
Units upon any distribution, subdivision or combination of Units. If a distribution, subdivision or combination of Units would result in the issuance of fractional Units but for the provisions of this Section 5.8(d), each fractional Unit shall
be rounded to the nearest whole Unit (and a 0.5 Unit shall be rounded to the next higher Unit). 

Section 5.9        Fully Paid and Non-Assessable Nature of Limited Partner Interests. All
Limited Partner Interests issued pursuant to, and in accordance with the requirements of, this Article V shall be fully paid and non-assessable Limited Partner Interests in the Partnership, except as such non-assessability may be affected by the
Marshall Islands Act. 
 Section 5.10        Issuance of Common Units in Connection with
Reset of Incentive Distribution Rights. 
 (a)        Subject to the provisions of this
Section 5.10, the holder of the Incentive Distribution Rights (or, if there is more than one holder of the Incentive Distribution Rights, the holders of a majority in interest of the Incentive Distribution Rights) shall have the right, at any
time when there are no Subordinated Units and the Partnership has made a distribution pursuant to Section 6.3(b)(v) for each of the four most recently completed Quarters and the amount of each such distribution did not exceed Adjusted Operating
Surplus for such Quarter, to make an election (the “IDR Reset Election”) to cause the Minimum Quarterly Distribution and the Target Distributions to be reset in accordance with the provisions of Section 5.10(e) and, in
connection therewith, the holder or holders of the Incentive Distribution Rights will become entitled to receive their respective proportionate shares of a number of Common Units (“IDR Reset Common Units”) derived by dividing
(i) the average of the aggregate amount of cash distributions made by the Partnership for each of the two full Quarters immediately preceding the giving of the Reset Notice in respect of the Incentive Distribution Rights by (ii) the
average of the cash distributions made by the Partnership in respect of each Common Unit for each of the two full Quarters immediately preceding the giving of the Reset Notice (the number of Common Units determined by such quotient is referred to
herein as the “Aggregate Quantity of IDR Reset Common Units”). If at the time of any IDR Reset Election the General Partner and its Affiliates are not the holders of a majority interest of the Incentive Distribution Rights, then the
IDR Reset Election shall be subject to the prior approval of the Board of Directors that the conditions described in the immediately preceding sentence have been satisfied. Upon the issuance of such IDR Reset Common Units, the Partnership will issue
to the General Partner that number of additional General Partner Units equal to the product of (x) the quotient obtained by dividing (A) the Percentage Interest of the General Partner immediately prior to such issuance by (B) a
percentage equal to 100% less such Percentage Interest and (y) the number of such IDR Reset Common Units, and the General Partner shall not be obligated to make any additional Capital Contribution to the Partnership in exchange for such
issuance. The making of the IDR Reset Election in the manner specified in Section 5.10(b) shall cause the Minimum Quarterly Distribution and the Target Distributions to be reset in accordance with the provisions of Section 5.10(c) and, in
connection therewith, the holder or holders of the Incentive Distribution Rights will become entitled to receive IDR Reset Common Units and the General Partner will become entitled to receive General Partner Units on the basis specified above,
without any further approval required by the General Partner or the Unitholders, at the time specified in Section 5.10(c), unless the IDR Reset Election is rescinded pursuant to Section 5.10(d). 

(b)        To exercise the right specified in Section 5.10(a), the holder of the Incentive
Distribution Rights (or, if there is more than one holder of the Incentive Distribution Rights, the holders of a majority in interest of the Incentive Distribution Rights) shall deliver a written notice (the “Reset Notice”) to the
Partnership. Within 10 Business Days after the receipt by the Partnership of such Reset Notice, the Partnership shall deliver a written notice to the holder or holders of the Incentive Distribution Rights of the Partnership’s determination of
the aggregate number of Common Units that each holder of Incentive Distribution Rights will be entitled to receive. 

(c)        The holder or holders of the Incentive Distribution Rights will be entitled to receive the
Aggregate Quantity of IDR Reset Common Units and the General Partner will become entitled to receive the related additional General Partner Units on the fifteenth Business Day after receipt by the Partnership of the Reset Notice, and the Partnership
may issue Certificates for the Common Units or uncertificated Partnership Interests to the holder or holders of the Incentive Distribution Rights. 

(d)        If the principal National Securities Exchange upon which the Common Units are then traded
has not approved the listing or admission for trading of the Common Units to be issued pursuant to this Section 5.10 on 

  
 25 

 
or before the 30th calendar day following the Partnership’s receipt of the Reset Notice and such approval is required by the rules and regulations of such National Securities Exchange, then
the holder of the Incentive Distribution Rights (or, if there is more than one holder of the Incentive Distribution Rights, the holders of a majority in interest of the Incentive Distribution Rights) shall have the right to either rescind the IDR
Reset Election or elect to receive other Partnership Interests having such terms as the General Partner may approve, with the approval of the Conflicts Committee, that will provide (i) the same economic value, in the aggregate, as the Aggregate
Quantity of IDR Reset Common Units would have had at the time of the Partnership’s receipt of the Reset Notice, as determined by the General Partner, and (ii) for the subsequent conversion (on terms acceptable to the National Securities
Exchange upon which the Common Units are then traded) of such Partnership Interests into Common Units within not more than 12 months following the Partnership’s receipt of the Reset Notice upon the satisfaction of one or more conditions that
are reasonably acceptable to the holder of the Incentive Distribution Rights (or, if there is more than one holder of the Incentive Distribution Rights, the holders of a majority in interest of the Incentive Distribution Rights). 

(e)        The Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution
and Third Target Distribution shall be adjusted at the time of the issuance of Common Units or other Partnership Interests pursuant to this Section 5.10 such that (i) the Minimum Quarterly Distribution shall be reset to equal to the
average cash distribution amount per Common Unit for the two Quarters immediately prior to the Partnership’s receipt of the Reset Notice (the “Reset MQD”), (ii) the First Target Distribution shall be reset to equal 115% of
the Reset MQD, (iii) the Second Target Distribution shall be reset to equal to 125% of the Reset MQD and (iv) the Third Target Distribution shall be reset to equal 150% of the Reset MQD. 

ARTICLE VI 
 ALLOCATIONS
AND DISTRIBUTIONS 
 Section 6.1        Allocations. 

For purposes of the Marshall Islands Act, the Partnership’s items of income, gain, loss and deduction shall be allocated among the
Partners in each taxable year (or portion thereof) as follows: 
 (a)        to each Series A
Holder, an allocation of items of income, including if necessary items of gross income, in an amount equal to the difference, if any, between (i) the excess of the Series A Liquidation Preference attributable to such Series A Holder
over the Stated Series A Liquidation Preference attributable to such Series A Holder and (ii) the cumulative amount of all prior allocations of income to such Series A Holder pursuant to this Section 6.1(a), provided that, in the
event the Partnership’s gross income for a taxable year (or portion thereof) is less than the sum of the amount determined above, allocations shall be made pro rata to Series A Holders in proportion to the amount set forth above; 

(b)        in a taxable year (or portion thereof) in which items of income and gain exceed items of
loss and deduction (taking into account any allocations of gross income to a Series A Holder, pursuant to Section 6.1(a)), in a manner such that the allocations to the Partners (i) first, reverse any allocations made to the Partners
pursuant to Section 6.1(c)(ii), and (ii) thereafter, first to the holders of Common Units in amounts which are in proportion to the distributions of Available Cash from Operating Surplus (actual or deemed) made to the Partners pursuant to
Article VI and Section 12.4 to the extent of their positive capital account balances and, second, to the Series A Holders to the extent of their respective positive capital account balances and, third, to the holders of Common Units in
proportion to the distributions of Available Cash from Operating Surplus (actual or deemed) made to the Partners pursuant to Article VI and Section 12.4; and 

(c)        in a taxable year (or portion thereof) in which items of loss and deduction (taking into
account any allocations of gross income to a Series A Holder, pursuant to Section 6.1(a)) exceed items of income and gain, in a manner such that the allocations to the Partners (i) first reverse any allocations made to the Partners
pursuant to Section 6.1(b)(ii), and (ii) thereafter, to each Partner other than a Series A Holder in proportion to the Partner’s Percentage Interests. 

Section 6.2        Requirement and Characterization of Distributions; Distributions to Record
Holders. 

  
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 (a)         Within 45 days following the end of each
Quarter commencing with the Quarter ending on December 31, 2013, an amount equal to 100% of Available Cash with respect to such Quarter shall, subject to Section 51 of the Marshall Islands Act, be distributed in accordance with this
Article VI by the Partnership to the Partners as of the Record Date selected by the Board of Directors. All amounts of Available Cash distributed by the Partnership on any date following the Closing Date from any source shall be deemed to be
Operating Surplus until the sum of all amounts of Available Cash theretofore distributed by the Partnership to the Partners following the Closing Date pursuant to Section 6.3 equals the Operating Surplus from the Closing Date through the close
of the immediately preceding Quarter. Any remaining amounts of Available Cash distributed by the Partnership on such date shall, except as otherwise provided in Section 6.4, be deemed to be “Capital Surplus.” Notwithstanding
any provision to the contrary contained in this Agreement, the Partnership shall not make a distribution to any Partner on account of its interest in the Partnership if such distribution would violate the Marshall Islands Act or any other applicable
law. This Section 6.2(a) shall not apply to Preferred Units. 

(b)         Notwithstanding the first three sentences of Section 6.2(a), in the event of the
dissolution and liquidation of the Partnership, all receipts received during or after the Quarter in which the Liquidation Date occurs, other than from borrowings described in (a)(ii) of the definition of Available Cash, shall be applied and
distributed solely in accordance with, and subject to the terms and conditions of, Section 12.4. 

(c)         Each distribution in respect of a Partnership Interest shall be paid by the
Partnership, directly or through the Transfer Agent or through any other Person or agent, only to the Record Holder of such Partnership Interest as of the Record Date set for such distribution. Such payment shall constitute full payment and
satisfaction of the Partnership’s liability in respect of such payment, regardless of any claim of any Person who may have an interest in such payment by reason of an assignment or otherwise. 

Section 6.3         Distributions of Available Cash from Operating Surplus. 

(a)         During Subordination Period. Available Cash with respect to any Quarter or
portion thereof within the Subordination Period that is deemed to be Operating Surplus pursuant to the provisions of Sections 6.2 or 6.4 shall, subject to Section 51 of the Marshall Islands Act, be distributed as follows (subject to
Section 16.3 in respect of Series A Preferred Units described therein and except as otherwise contemplated by Section 5.4 in respect of other Partnership Interests issued pursuant thereto): 

(i)         First, (x) to the General Partner in accordance with its
Percentage Interest and (y) 99.9% to all the Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect of each Common Unit then
Outstanding an amount equal to the Minimum Quarterly Distribution for such Quarter; 

(ii)         Second, (x) to the General Partner in accordance with its
Percentage Interest and (y) 99.9% to all Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect of each Common Unit then
Outstanding an amount equal to the Cumulative Common Unit Arrearage existing with respect to such Quarter; 

(iii)         Third, (x) to the General Partner in accordance with its
Percentage Interest and (y) 99.9% to all Unitholders holding Subordinated Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect of each Subordinated Unit
then Outstanding an amount equal to the Minimum Quarterly Distribution for such Quarter; 

(iv)         Fourth, to the General Partner and all Unitholders in accordance
with their respective Percentage Interests, until there has been distributed in respect of each Unit then Outstanding an amount equal to the excess of the First Target Distribution over the Minimum Quarterly Distribution for such Quarter; 

(v)         Fifth, (A) to the General Partner in accordance with its
Percentage Interest; (B) 14.9% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (A) and
(B) of this clause (v) until 

  
 27 

 
there has been distributed in respect of each Unit then Outstanding an amount equal to the excess of the Second Target Distribution over the First Target Distribution for such Quarter; 

(vi)         Sixth, (A) to the General Partner in accordance with its
Percentage Interest, (B) 24.9% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (A) and
(B) of this subclause (vi), until there has been distributed in respect of each Unit then Outstanding an amount equal to the excess of the Third Target Distribution over the Second Target Distribution for such Quarter; and 

(vii)         Thereafter, (A) to the General Partner in accordance with its
Percentage Interest; (B) 49.9% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (A) and
(B) of this clause (vii); 
 provided, however, that if the Minimum Quarterly Distribution, the First Target Distribution, the Second
Target Distribution and the Third Target Distribution have been reduced to zero pursuant to the second sentence of Section 6.5, the distribution of Available Cash that is deemed to be Operating Surplus with respect to any Quarter will be made
solely in accordance with Section 6.3(a)(vii). 
 (b)         After Subordination
Period. Available Cash with respect to any Quarter after the Subordination Period that is deemed to be Operating Surplus pursuant to the provisions of Sections 6.2 or 6.4 shall, subject to Section 51 of the Marshall Islands Act, be
distributed as follows (subject to Section 16.3 in respect of Series A Preferred Units described therein and except as otherwise required by Section 5.4(b) in respect of additional Partnership Interests issued pursuant thereto): 

(i)         First, 100% to the General Partner and the Unitholders Pro Rata,
until there has been distributed in respect of each Unit then Outstanding an amount equal to the Minimum Quarterly Distribution for such Quarter; 

(ii)         Second, 100% to the General Partner and the Unitholders Pro Rata,
until there has been distributed in respect of each Unit then Outstanding an amount equal to the excess of the First Target Distribution over the Minimum Quarterly Distribution for such Quarter; 

(iii)         Third, (A) to the General Partner in accordance with its
Percentage Interest; (B) 14.9% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (A) and
(B) of this clause (iii), until there has been distributed in respect of each Unit then Outstanding an amount equal to the excess of the Second Target Distribution over the First Target Distribution for such Quarter; 

(iv)         Fourth, (A) to the General Partner in accordance with its
Percentage Interest; (B) 24.9% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclause (A) and (B) of
this clause (iv), until there has been distributed in respect of each Unit then Outstanding an amount equal to the excess of the Third Target Distribution over the Second Target Distribution for such Quarter; and 

(v)         Thereafter, (A) to the General Partner in accordance with its
Percentage Interest; (B) 49.9% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (A) and
(B) of this clause (v); provided, however, that if the Minimum Quarterly Distribution, the First Target Distribution, the Second Target Distribution and the Third Target Distribution have been reduced to zero pursuant to the
second sentence of Section 6.5, the distribution of Available Cash that is deemed to be Operating Surplus with respect to any Quarter will be made solely in accordance with Section 6.3(b)(v). No distributions shall be made with respect to
Preferred Units pursuant to this Section 6.3. 
 Section 6.4         Distributions
of Available Cash from Capital Surplus. Available Cash that is deemed to be Capital Surplus pursuant to the provisions of Section 6.2(a) shall, subject to Section 51 of the Marshall Islands

  
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Act and Section 16.3 in respect of Series A Preferred Units, be distributed, unless the provisions of Section 6.1 require otherwise, 100% to the General Partner and the Unitholders
(other than the Preferred Unitholders) Pro Rata, until the Minimum Quarterly Distribution is reduced to zero pursuant to the second sentence of Section 6.4. Available Cash that is deemed to be Capital Surplus shall then be distributed
(a) to the General Partner in accordance with its Percentage Interest and (b) to all Unitholders holding Common Units their Pro Rata share of a percentage equal to 100% less the General Partner’s Percentage Interest, until there has
been distributed in respect of each Common Unit then Outstanding an amount equal to the Cumulative Common Unit Arrearage. Thereafter, all Available Cash shall be distributed as if it were Operating Surplus and shall be distributed in accordance with
Section 6.3. 
 Section 6.5         Adjustment of Minimum Quarterly Distribution
and Target Distribution Levels. The Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution, Third Target Distribution, Common Unit Arrearages and Cumulative Common Unit Arrearages shall be proportionately adjusted
in the event of any distribution, combination or subdivision (whether effected by a distribution payable in Units or otherwise) of Units or other Partnership Interests in accordance with Section 5.8. In the event of a distribution of Available
Cash that is deemed to be from Capital Surplus, the then applicable Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution, shall be reduced in the same proportion that the distribution
had to the fair market value of the Common Units prior to the announcement of the distribution. If the Common Units are publicly traded on a National Securities Exchange, the fair market value will be the Current Market Price before the announcement
of the distribution. If the Common Units are not publicly traded, the fair market value will be determined by the Board of Directors. 

Section 6.6         Special Provisions Relating to the Holders of Subordinated Units.
Except with respect to the right to vote on or approve matters requiring the vote or approval of a percentage of the holders of Outstanding Common Units and the right to participate in distributions made with respect to Common Units, the holder of a
Subordinated Unit shall have all of the rights and obligations of a Unitholder holding Common Units hereunder; provided, however, that immediately upon the conversion of Subordinated Units into Common Units, the Unitholder holding a Subordinated
Unit shall possess all of the rights and obligations of a Unitholder holding Common Units hereunder, including the right to vote as a Common Unitholder and the right to participate in distributions made with respect to Common Units. 

Section 6.7         Special Provisions Relating to the Holders of Incentive Distribution
Rights. Notwithstanding anything to the contrary set forth in this Agreement, the holders of the Incentive Distribution Rights (a) shall possess the rights and obligations provided in this Agreement with respect to a Limited Partner
pursuant to Articles III and VII and (b) shall not (i) be entitled to vote on any matters requiring the approval or vote of the holders of Outstanding Units, except as provided by law, or (ii) be entitled to any distributions other
than as provided in Sections 6.3(a)(v), 6.3(a)(vi) and 6.3(a)(vii), 6.3(b)(iii), 6.3(b)(iv) and 6.3(b)(v), and 12.4. 
 ARTICLE VII

 MANAGEMENT AND OPERATION OF BUSINESS 

Section 7.1         Management. 

(a)         Except as otherwise expressly provided in this Agreement, all management powers over
the business and affairs of the Partnership shall be vested exclusively in the Board of Directors and, subject to the direction of the Board of Directors and in accordance with the provisions of Section 7.8, the Officers. Neither the General
Partner (except as otherwise expressly provided in this Agreement) nor any Limited Partner shall have any management power or control over the business and affairs of the Partnership. Thus, except as expressly provided in this Agreement, the
business and affairs of the Partnership shall be managed by or under the direction of the Board of Directors, and the day-to-day activities of the Partnership shall be conducted on the Partnership’s behalf by the Officers. In order to enable
the Board of Directors to manage the business and affairs of the Partnership, the General Partner, except as otherwise expressly provided in this Agreement, hereby irrevocably delegates to the Board of Directors all management powers over the
business and affairs of the Partnership that it may now or hereafter possess under applicable law. The General Partner further agrees to take any and all action necessary and appropriate, in the sole discretion of the Board of Directors, to effect
any duly authorized actions by the Board of Directors, including executing or filing any agreements, instruments or certificates, delivering all documents, 

  
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providing all information and taking or refraining from taking action as may be necessary or appropriate to achieve the effective delegation of power described in this Section 7.1(a). Each
of the Partners and each Person who may acquire an interest in a Partnership Interest hereby approves, consents to, ratifies and confirms such delegation. The delegation by the General Partner to the Board of Directors of management powers over the
business and affairs of the Partnership pursuant to the provisions of this Agreement shall not cause the General Partner to cease to be a general partner of the Partnership nor shall it cause the Board of Directors or any member thereof to be a
general partner of the Partnership or to have or be subject to the liabilities of a general partner of the Partnership. 

(b)         Notwithstanding any other provision of this Agreement, any Group Member Agreement,
the Marshall Islands Act or any applicable law, rule or regulation, each of the Partners and each other Person who may acquire an interest in Partnership Interests hereby (i) approves, consents to, ratifies and confirms the General
Partner’s delegation of management powers to the Board of Directors pursuant to paragraph (a) of this Section 7.1; (ii) approves, ratifies and confirms the execution, delivery and performance by the parties thereto of this
Agreement, the Underwriting Agreement, the Omnibus Agreement, the Contribution Agreement, any Group Member Agreement of any other Group Member and the other agreements described in or filed as exhibits to the Registration Statement that are related
to the transactions contemplated by the Registration Statement; (iii) agrees that the General Partner (on behalf of the Partnership) is authorized to execute, deliver and perform the agreements referred to in clause (i) of this sentence
and the other agreements, acts, transactions and matters described in or contemplated by the Underwriting Agreement or described in or filed as exhibits to the Registration Statement, in each case, on behalf of the Partnership without any further
act, approval or vote of the Partners or the other Persons who may acquire an interest in Partnership Interests; and (iv) agrees that the execution, delivery or performance by the Board of Directors, the General Partner, any Group Member or any
Affiliate of any of them of this Agreement or any agreement authorized or permitted under this Agreement (including the exercise by the General Partner or any Affiliate of the General Partner of the rights accorded pursuant to Article XV) shall not
constitute a breach by the Board of Directors or the General Partner of any duty that the Board of Directors or the General Partner may owe the Partnership or the Limited Partners or any other Persons under this Agreement (or any other agreements)
or of any duty stated or implied by law or equity. 
 Section 7.2         The Board of
Directors; Election and Appointment; Term; Manner of Acting. 
 (a)         The initial
Board of Directors shall consist of the following five individuals, all of whom shall be Appointed Directors and serve until the 2014 Annual Meeting: George Prokopiou, Tony Lauritzen, Levon Dedegian, Alexios Rodopoulos, Evangelos Vlahoulis.
Following the 2014 Annual Meeting, the Board of Directors shall consist of five individuals, two of whom shall be Appointed Directors and three of whom shall be Elected Directors. The Elected Directors shall be divided into three classes: Class I,
comprising one Elected Director, Class II, comprising one Elected Director, and Class III, comprising one Elected Director. Any vacancy among the Appointed Directors shall be filled as if an Appointed Director had resigned, in accordance with
Section 7.6. The successors of the initial members of the Board of Directors shall be appointed or elected, as the case may be, as follows: 

(i)         The Appointed Directors shall be appointed by the General Partner on
the date of the 2014 Annual Meeting, and each Appointed Director shall hold office until his successor is duly appointed by the General Partner and qualified or until his earlier death, resignation or removal; and 

(ii)         The Class I Elected Director shall be elected at the 2014 Annual
Meeting for a one-year term expiring on the date of the first succeeding Annual Meeting, the Class II Elected Director shall be elected at the 2014 Annual Meeting for a two-year term expiring on the second succeeding Annual Meeting and the Class III
Elected Director shall be elected at the 2014 Annual Meeting for a three-year term expiring on the third succeeding Annual Meeting, in each case by a plurality of the votes of the Outstanding Common Units present in person or represented by proxy at
the Annual Meeting with each Outstanding Common Unit having one vote. 
 (b)         Except as
provided in paragraph (a)(ii) above with respect to the Elected Directors elected at the 2014 Annual Meeting, each member of the Board of Directors appointed or elected, as the case may be, at an Annual Meeting shall hold office until the third
succeeding Annual Meeting and until his successor is duly elected or appointed, as the case may be, and qualified, or until his earlier death, resignation or removal. 

  
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 (c)         Each member of the Board of Directors
shall have one vote. The vote of the majority of the members of the Board of Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors. A majority of the number of members of the Board of Directors then
in office shall constitute a quorum for the transaction of business at any meeting of the Board of Directors, but if less than a quorum is present at a meeting, a majority of the members of the Board of Directors present at such meeting may adjourn
the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present. 

Section 7.3         Nominations of Elected Directors. The Board of Directors shall be
entitled to nominate individuals to stand for election as Elected Directors at an Annual Meeting. In addition, any Limited Partner or Group of Limited Partners that beneficially owns 15% or more of the Outstanding Common Units shall be entitled to
nominate one or more individuals to stand for election as Elected Directors at an Annual Meeting by providing written notice thereof to the Board of Directors not more than 120 days and not less than 90 days prior to the date of such Annual Meeting;
provided, however, that in the event that the date of the Annual Meeting was not publicly announced by the Partnership by mail, press release or otherwise more than 100 days prior to the date of such meeting, such notice, to be timely,
must be delivered to the Board of Directors not later than the close of business on the tenth day following the date on which the date of the Annual Meeting was announced. Such notice shall set forth (i) the name and address of the Limited
Partner or Limited Partners making the nomination or nominations, (ii) the number of Common Units beneficially owned by such Limited Partner or Limited Partners, (iii) such information regarding the nominee(s) proposed by the Limited
Partner or Limited Partners as would be required to be included in a proxy statement relating to the solicitation of proxies for the election of directors filed pursuant to the proxy rules of the Commission had the nominee(s) been nominated or
intended to be nominated to the Board of Directors (iv) the written consent of each nominee to serve as a member of the Board of Directors if so elected and (v) a certification that such nominee(s) qualify as Elected Directors. 

Section 7.4         Removal of Members of Board of Directors. Members of the Board of
Directors may only be removed as follows: 
 (a)         Any Appointed Director may be removed
at any time, (i) without Cause, only by the General Partner and, (ii) with Cause, by (x) the General Partner, (y) by the affirmative vote of the holders of a majority of the Outstanding Units at a properly called meeting of the
Limited Partners or (z) by the affirmative vote of a majority of the other members of the Board of Directors. 

(b)         Any Elected Director may be removed at any time, with Cause, only by the affirmative
vote of a majority of the other members of the Board of Directors or at a properly called meeting of the Limited Partners only by the affirmative vote of the holders of a majority of the Outstanding Common Units. 

Section 7.5         Resignations of Members of the Board of Directors. Any member of
the Board of Directors may resign at any time by giving written notice to the Board of Directors. Such resignation shall take effect at the time specified therein. 

Section 7.6         Vacancies on the Board of Directors. Vacancies on the Board of
Directors may be filled only as follows: 
 (a)         If any Appointed Director is removed,
resigns or is otherwise unable to serve as a member of the Board of Directors, the General Partner shall, in its individual capacity, appoint an individual to fill the vacancy. 

(b)         If any Elected Director is removed, resigns or is unable to serve as a member of the
Board of Directors, the vacancy shall be filled by the Board of Directors then serving. 

(c)         A director appointed or elected pursuant to this Section 7.6 to fill a vacancy
shall be appointed or elected, as the case may be, for no more than the unexpired term of his predecessor in office. 

Section 7.7         Meetings; Committees; Chairman. 

(a)         Regular meetings of the Board of Directors shall be held at such times and places as
shall be designated from time to time by resolution of the Board of Directors. Special meetings of the Board of Directors 

  
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may be called by the Chairman of the Board of Directors and shall be called by the Secretary upon the written request of two members of the Board of Directors, on at least 48 hours prior written
notice to the other members. Any such notice, or waiver thereof, need not state the purpose of such meeting except as may otherwise be required by law. Attendance of a member of the Board of Directors at a meeting (including pursuant to the
penultimate sentence of this Section 7.7(a)) shall constitute a waiver of notice of such meeting, except where such member attends the meeting for the express purpose of objecting to the transaction of any business on the ground that the
meeting is not lawfully called or convened. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting
forth the action so taken, is signed by all the members of the Board of Directors. Members of the Board of Directors may participate in and hold meetings by means of conference telephone, videoconference or similar communications equipment by means
of which all Persons participating in the meeting can hear each other, and participation in such meetings shall constitute presence in person at the meeting. The Board of Directors may establish any additional rules governing the conduct of its
meetings that are not inconsistent with the provisions of this Agreement. 
 (b)         The
Board of Directors shall appoint the members of the Audit Committee and the Conflicts Committee. The Audit Committee and the Conflicts Committee shall, in each case, perform the functions delegated to it pursuant to the terms of this Agreement and
such other matters as may be delegated to it from time to time by resolution of the Board of Directors. The Board of Directors, by a majority of the whole Board of Directors, may appoint one or more additional committees of the Board of Directors to
consist of one or more members of the Board of Directors, which committee(s) shall have and may exercise such of the powers and authority of the Board of Directors (including in respect of Section 7.1) with respect to the management of the
business and affairs of the Partnership as may be provided in a resolution of the Board of Directors. Any committee designated pursuant to this Section 7.7(b) shall choose its own chairman, shall keep regular minutes of its proceedings and
report the same to the Board of Directors when requested, shall fix its own rules or procedures and shall meet at such times and at such place or places as may be provided by such rules or by resolution of such committee or resolution of the Board
of Directors. At every meeting of any such committee, the presence of a majority of all the members thereof shall constitute a quorum and the affirmative vote of a majority of the members present shall be necessary for the taking of any action.
Subject to the first sentence of this Section 7.7(b), the Board of Directors may designate one or more members of the Board of Directors as alternate members of any committee who may replace any absent or disqualified member at any meeting of
such committee. Subject to the first sentence of this Section 7.7(b), in the absence or disqualification of a member of a committee, the member or members present at any meeting and not disqualified from voting, whether or not constituting a
quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of the absent or disqualified member. 

(c)         The Appointed Directors may designate one of the members of the Board of Directors as
Chairman of the Board of Directors. The Initial Chairman of the Board of Directors shall be George Prokopiou. The Chairman of the Board of Directors, if any, and if present and acting, shall preside at all meetings of the Board of Directors. In the
absence of the Chairman of the Board of Directors, another member of the Board of Directors chosen by the Appointed Directors shall preside. If, at any time, the Board of Directors consists solely of Elected Directors, the Board of Directors may
elect one of its members as Chairman of the Board of Directors and shall, in the absence of the Chairman of the Board of Directors at a meeting of the Board of Directors, choose another member of the Board of Directors to preside at the meeting.

 Section 7.8         Officers. 

(a)         The Board of Directors, as set forth below, shall appoint or designate agents of the
Partnership, referred to as “Officers” of the Partnership as described in this Section 7.8. Such Officers may be employed by any Group Member directly or may be employed by one or more third parties, including Dynagas Holding
Ltd. and its Affiliates, and designated by the Board of Directors to perform officer functions for the benefit of the Partnership. 

(b)         The Board of Directors shall appoint or designate such Officers and agents as may
from time to time appear to be necessary or advisable in the conduct of the affairs of the Partnership, who shall hold such titles, exercise such powers and authority and perform such duties as shall be determined from time to time by resolution of
the Board of Directors. The Officers may include a Chairman of the Board of Directors, an Executive Vice Chairman or Vice Chairman of the Board of Directors, a Chief Executive Officer, a President, a Chief Financial

  
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Officer, any and all Vice Presidents, a Secretary, any and all Assistant Secretaries, a Treasurer, any and all Assistant Treasurers and any other Officers appointed or designated by the Board of
Directors pursuant to this Section 7.8. Any person may hold two or more offices. 

(c)         The Officers, including any Officer employed by a third party and designated by the
Board of Directors to perform officer services for the benefit of the Partnership, shall be appointed by the Board of Directors at such time and for such terms as the Board of Directors shall determine. Any Officer may be removed, with or without
Cause, only by the Board of Directors. Vacancies in any office may be filled only by the Board of Directors. 

(d)         The Board of Directors may grant powers of attorney or other authority as appropriate
to establish and evidence the authority of the Officers and other Persons. 

(e)         Unless otherwise provided by resolution of the Board of Directors, no Officer shall
have the power or authority to delegate to any Person such Officer’s rights and powers as an Officer to manage the business and affairs of the Partnership. 

Section 7.9         Compensation of Directors. The members of the Board of Directors
who are not employees of the Partnership, the General Partner or its Affiliates shall receive such compensation for their services as members of the Board of Directors or members of a committee of the Board of Directors shall determine. In addition,
the members of the Board of Directors shall be entitled to be reimbursed for out-of-pocket costs and expenses incurred in the course of their service hereunder. 

Section 7.10         Certificate of Limited Partnership. The General Partner has
caused the Certificate of Limited Partnership to be filed with the Registrar of Corporations of The Marshall Islands as required by the Marshall Islands Act. The General Partner shall use all commercially reasonable efforts to cause to be filed such
other certificates or documents that the Board of Directors determines to be necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership or other entity in which the limited
partners have limited liability) in The Marshall Islands or any other jurisdiction in which the Partnership may elect to do business or own property. To the extent the Board of Directors determines such action to be necessary or appropriate, the
General Partner shall file amendments to and restatements of the Certificate of Limited Partnership and do all things to maintain the Partnership as a limited partnership (or a partnership or other entity in which the limited partners have limited
liability) under the laws of The Marshall Islands or of any other jurisdiction in which the Partnership may elect to do business or own property. Subject to the terms of Section 3.4(a), the General Partner shall not be required, before or after
filing, to deliver or mail a copy of the Certificate of Limited Partnership, any qualification document or any amendment thereto to any Limited Partner. 

Section 7.11         Restrictions on the Authority of the Board of Directors and the
General Partner. 
 (a)         Except as otherwise provided in this Agreement, neither the
Board of Directors nor the General Partner may, without written approval of the specific act by holders of all of the Outstanding Limited Partner Interests or by other written instrument executed and delivered by holders of all of the Outstanding
Limited Partner Interests subsequent to the date of this Agreement, take any action in contravention of this Agreement. 

(b)         Except as provided in Articles XII and XIV, the Board of Directors may not sell,
exchange or otherwise dispose of all or substantially all of the assets of the Partnership Group, taken as a whole, in a single transaction or a series of related transactions (including by way of merger, consolidation, other combination or sale of
ownership interests in the Partnership’s Subsidiaries) without the approval of holders of a Unit Majority and the General Partner; provided, however, that this provision shall not preclude or limit the ability of the Board of
Directors to mortgage, pledge, hypothecate or grant a security interest in all or substantially all of the assets of the Partnership Group and shall not apply to any forced sale of any or all of the assets of the Partnership Group pursuant to the
foreclosure of, or other realization upon, any such encumbrance. The transfer of the General Partner Interest to and the election of a successor general partner of the Partnership shall be made in accordance with Sections 4.6, 11.1 and 11.2. 

Section 7.12         Reimbursement of the General Partner. 

  
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 (a)         Except as provided in this
Section 7.12 and elsewhere in this Agreement, the General Partner shall not be compensated for its services as a general partner or managing member of any Group Member. 

(b)         The General Partner shall be reimbursed on a monthly basis, or such other basis as
the Board of Directors may determine, for any direct and indirect expenses it incurs that are allocable to the Partnership Group or payments it makes on behalf of the Partnership Group (including salary, bonus, incentive compensation and other
amounts paid to any Person, including Affiliates of the General Partner, to perform services for the Partnership Group or for the General Partner in the discharge of its duties to the Partnership Group, which amounts shall also include reimbursement
for any Common Units purchased to satisfy obligations of the Partnership under any of its equity compensation plans). The Board of Directors shall determine the expenses that are allocable to the Partnership Group. Reimbursements pursuant to this
Section 7.12 shall be in addition to any reimbursement to the General Partner as a result of indemnification pursuant to Section 7.15. 

(c)         Subject to the applicable rules and regulations of the National Securities Exchange
on which the Common Units are listed, the Board of Directors, without the approval of the Partners (who shall have no right to vote in respect thereof), may propose and adopt on behalf of the Partnership employee benefit plans, employee programs and
employee practices (including plans, programs and practices involving the issuance of Partnership Interests or options to purchase or rights, warrants or appreciation rights or phantom or tracking interests relating to Partnership Interests), or
cause the Partnership to issue Partnership Interests in connection with, or pursuant to, any employee benefit plan, employee program or employee practice maintained or sponsored by the Partnership, the General Partner or any of its Affiliates, in
each case for the benefit of employees and directors of the Partnership, the General Partner, any Group Member or any Affiliate thereof, or any of them, in respect of services performed, directly or indirectly, for the benefit of the Partnership
Group. The Partnership agrees to issue and sell to the General Partner or any of its Affiliates any Partnership Interests that the General Partner or such Affiliates are obligated to provide to any employees and directors pursuant to any such
employee benefit plans, employee programs or employee practices. Expenses incurred by the General Partner in connection with any such plans, programs and practices (including the net cost to the General Partner or such Affiliates of Partnership
Interests purchased by the General Partner or such Affiliates from the Partnership or otherwise to fulfill options or awards under such plans, programs and practices) shall be reimbursed in accordance with Section 7.12(b). Any and all
obligations of the General Partner under any employee benefit plans, employee programs or employee practices adopted by the General Partner as permitted by this Section 7.12(c) shall constitute obligations of the General Partner hereunder and
shall be assumed by any successor General Partner approved pursuant to Sections 11.1 or 11.2 or the transferee of or successor to all of the General Partner’s General Partner Interest pursuant to Section 4.6. 

Section 7.13         Outside Activities. 

(a)         After the Closing Date, the General Partner, for so long as it is the General Partner
of the Partnership (i) agrees that its sole business will be to act as a general partner or managing member, as the case may be, of the Partnership and any other partnership or limited liability company of which the Partnership is, directly or
indirectly, a partner or member and to undertake activities that are ancillary or related thereto (including being a limited partner in the Partnership), (ii) shall not engage in any business or activity or incur any debts or liabilities except
in connection with or incidental to (A) its performance as general partner or managing member, if any, of one or more Group Members or as described in or contemplated by the Registration Statement or (B) the acquiring, owning or disposing
of debt or equity securities in any Group Member and (iii) except to the extent permitted in the Omnibus Agreement, shall not acquire, own or operate any Four-Year Vessels (as such term is defined in the Omnibus Agreement). 

(b)         Dynagas Holding Ltd., the Partnership, the General Partner and the Operating Company
have entered into the Omnibus Agreement, which agreement sets forth certain restrictions on the ability of Dynagas Holding Ltd. and certain of their Affiliates to acquire, own or operate any Four-Year Vessels (as such term is defined in the Omnibus
Agreement). 
 (c)         Except as specifically restricted by Section 7.13(a) or the
Omnibus Agreement, each Indemnitee (other than the General Partner) shall have the right to engage in businesses of every type and description and other activities for profit and to engage in and possess an interest in other business ventures of any
and every type or description, whether in businesses engaged in or anticipated to be engaged in by any Group Member, independently 

  
 34 

 
or with others, including business interests and activities in direct competition with the business and activities of any Group Member, and none of the same shall constitute a breach of this
Agreement or any duty expressed or implied by law to any Group Member or any Partner. Notwithstanding anything to the contrary in this Agreement, (i) the possessing of competitive interests and engaging in competitive activities by any
Indemnitees (other than the General Partner) in accordance with the provisions of this Section 7.13 is hereby approved by the Partnership and all Partners and (ii) it shall be deemed not to be a breach of any fiduciary duty or any other
obligation of any type whatsoever of the General Partner or of any Indemnitee for the Indemnitees (other than the General Partner) to engage in such business interests and activities in preference to or to the exclusion of the Partnership. 

(d)         Notwithstanding anything to the contrary in this Agreement, the doctrine of corporate
opportunity, or any analogous doctrine, shall not apply to an Indemnitee (including the General Partner) and, subject to the terms of Section 7.13(a), Section 7.13(b), Section 7.13(c) and the Omnibus Agreement, no Indemnitee
(including the General Partner) who acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the Partnership shall have any duty to communicate or offer such opportunity to the Partnership,
and, subject to the terms of Section 7.13(a), Section 7.13(b), Section 7.13(c) and the Omnibus Agreement, such Indemnitee (including the General Partner) shall not be liable to the Partnership, to any Limited Partner or any other
Person for breach of any fiduciary or other duty by reason of the fact that such Indemnitee (including the General Partner) pursues or acquires such opportunity for itself, directs such opportunity to another Person or does not communicate such
opportunity or information to the Partnership; provided, that such Indemnitee (including the General Partner) does not engage in such business or activity as a result of using confidential or proprietary information provided by or on behalf of the
Partnership to such Indemnitee (including the General Partner). 
 (e)         The General
Partner and each of its Affiliates may own and acquire Units or other Partnership Interests in addition to those acquired on the Closing Date and, except as otherwise provided in this Agreement, shall be entitled to exercise, at their option, all
rights relating to all Units or other Partnership Interests acquired by them. The term “Affiliates” as used in this Section 7.13(e) with respect to the General Partner shall not include any Group Member. 

Section 7.14         Loans from the General Partner; Loans or Contributions from the
Partnership or Group Members. 
 (a)         The General Partner or any of its Affiliates
may lend to any Group Member, and any Group Member may borrow from the General Partner or any of its Affiliates, funds needed or desired by the Group Member for such periods of time and in such amounts as the General Partner and the Board of
Directors may determine; provided, however, that in any such case the lending party may not charge the borrowing party interest at a rate greater than the rate that would be charged the borrowing party or impose terms less favorable to
the borrowing party than would be charged or imposed on the borrowing party by unrelated lenders on comparable loans made on an arms’-length basis (without reference to the lending party’s financial abilities or guarantees), all as
determined by the General Partner and the Board of Directors. The borrowing party shall reimburse the lending party for any costs (other than any additional interest costs) incurred by the lending party in connection with the borrowing of such
funds. For purposes of this Section 7.14(a) and Section 7.14(b), the term “Group Member” shall include any Affiliate of a Group Member that is controlled by the Group Member. 

(b)         The Partnership may lend or contribute to any Group Member, and any Group Member may
borrow from the Partnership, funds on terms and conditions determined by the Board of Directors. No Group Member may lend funds to the General Partner or any of its Affiliates (other than another Group Member). 

(c)         No borrowing by any Group Member or the approval thereof by the General Partner or
the Board of Directors shall be deemed to constitute a breach of any duty, expressed or implied, of the General Partner or its Affiliates or the Board of Directors to the Partnership or the Limited Partners by reason of the fact that the purpose or
effect of such borrowing is directly or indirectly to (i) enable distributions to the General Partner or its Affiliates (including in their capacities as Limited Partners) to exceed the General Partner’s Percentage Interest of the total
amount distributed to all partners or (ii) hasten the expiration of the Subordination Period or the conversion of any Subordinated Units into Common Units. 

  
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 Section 7.15         Indemnification.

 (a)         To the fullest extent permitted by the Marshall Islands Act but subject to the
limitations expressly provided in this Agreement, all Indemnitees shall be indemnified and held harmless by the Partnership from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including legal fees and
expenses), judgments, fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Indemnitee may be
involved, or is threatened to be involved, as a party or otherwise, by reason of its status as an Indemnitee; provided, however, that the Indemnitee shall not be indemnified and held harmless if there has been a final and
non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter for which the Indemnitee is seeking indemnification pursuant to this Section 7.15, the Indemnitee acted in bad faith or engaged in
fraud or willful misconduct or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was unlawful; and, provided, further, that no indemnification pursuant to this Section 7.15 shall be
available to the General Partner or its Affiliates (other than a Group Member) with respect to its or their obligations incurred pursuant to the Underwriting Agreement, the Omnibus Agreement or the Contribution Agreement (other than obligations
incurred by the General Partner on behalf of the Partnership). Any indemnification pursuant to this Section 7.15 shall be made only out of the assets of the Partnership, it being agreed that the General Partner shall not be personally liable
for such indemnification and shall have no obligation to contribute or loan any monies or property to the Partnership to enable it to effectuate such indemnification. 

(b)         To the fullest extent permitted by the Marshall Islands Act, expenses (including
legal fees and expenses) incurred by an Indemnitee who is indemnified pursuant to Section 7.15(a) in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Partnership prior to a determination that
the Indemnitee is not entitled to be indemnified upon receipt by the Partnership of any undertaking by or on behalf of the Indemnitee to repay such amount if it shall be determined that the Indemnitee is not entitled to be indemnified as authorized
in this Section 7.15. 
 (c)         The indemnification provided by this
Section 7.15 shall be in addition to any other rights to which an Indemnitee may be entitled under any agreement, pursuant to any vote of the holders of Outstanding Limited Partner Interests, as a matter of law or otherwise, both as to actions
in the Indemnitee’s capacity as an Indemnitee and as to actions in any other capacity (including any capacity under the Underwriting Agreement), and shall continue as to an Indemnitee who has ceased to serve in such capacity and shall inure to
the benefit of the heirs, successors, assigns and administrators of the Indemnitee. 

(d)         The Partnership may purchase and maintain (or reimburse the General Partner or its
Affiliates for the cost of) insurance, on behalf of the Board of Directors and the General Partner, its Affiliates and such other Persons as the Board of Directors shall determine, against any liability that may be asserted against, or expense that
may be incurred by, such Person in connection with the Partnership’s activities or such Person’s activities on behalf of the Partnership, regardless of whether the Partnership would have the power to indemnify such Person against such
liability under the provisions of this Agreement or law. 
 (e)         For purposes of this
Section 7.15, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by the Indemnitee of its duties to the Partnership also imposes duties on, or otherwise
involves services by, it to the plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute “fines” within the meaning of
Section 7.15(a); and action taken or omitted by the Indemnitee with respect to any employee benefit plan in the performance of its duties for a purpose reasonably believed by it to be in the best interest of the participants and beneficiaries
of the plan shall be deemed to be for a purpose that is in the best interests of the Partnership. 

(f)         In no event may an Indemnitee subject the Limited Partners to personal liability by
reason of the indemnification provisions set forth in this Agreement. 
 (g)         An
Indemnitee shall not be denied indemnification in whole or in part under this Section 7.15 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by
the terms of this Agreement. 

  
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 (h)         The provisions of this Section 7.15
are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. 

(i)         No amendment, modification or repeal of this Section 7.15 or any provision
hereof shall in any manner terminate, reduce or impair the right of any past, present or future Indemnitee to be indemnified by the Partnership, nor the obligations of the Partnership to indemnify any such Indemnitee under and in accordance with the
provisions of this Section 7.15 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal,
regardless of when such claims may arise or be asserted. 

Section 7.16         Liability of Indemnitees. 

(a)         Notwithstanding anything to the contrary set forth in this Agreement, no Indemnitee
shall be liable for monetary damages to the Partnership, the Limited Partners or any other Persons who have acquired Partnership Interests or are otherwise bound by this Agreement, for losses sustained or liabilities incurred as a result of any act
or omission of an Indemnitee unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter in question, the Indemnitee acted in bad faith or engaged in fraud or
willful misconduct or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was criminal. 

(b)         Subject to their obligations and duties as members of the Board of Directors or as
the General Partner, respectively, set forth in Section 7.1(a), members of the Board of Directors and the General Partner may exercise any of the powers granted to them and perform any of the duties imposed upon them hereunder either directly
or by or through its agents, and the members of the Board of Directors and the General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by the Board of Directors or the General Partner in good
faith. 
 (c)         To the extent that, at law or in equity, an Indemnitee has duties
(including fiduciary duties) and liabilities relating thereto to the Partnership or to the Partners, the General Partner and any other Indemnitee acting in connection with the Partnership’s business or affairs shall not be liable to the
Partnership or to any Partner for its good faith reliance on the provisions of this Agreement. 

(d)         Any amendment, modification or repeal of this Section 7.16 or any provision
hereof shall be prospective only and shall not in any way affect the limitations on the liability of the Indemnitees under this Section 7.16 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising
from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

Section 7.17         Resolution of Conflicts of Interest; Standards of Conduct and
Modification of Duties. 
 (a)         Unless otherwise expressly provided in this
Agreement or any Group Member Agreement, whenever a potential conflict of interest exists or arises between the General Partner or any of its Affiliates, or any member of the Board of Directors, on the one hand, and the Partnership, any Group Member
or any Partner, on the other, any resolution or course of action in respect of such conflict of interest shall be permitted and deemed approved by all Partners, and shall not constitute a breach of this Agreement, of any Group Member Agreement, of
any agreement contemplated herein or therein, or of any duty stated or implied by law or equity, if the resolution or course of action in respect of such conflict of interest is (i) approved by Special Approval, (ii) approved by the vote
of a majority of the Outstanding Common Units (excluding Common Units owned by the General Partner and its Affiliates), (iii) on terms no less favorable to the Partnership than those generally being provided to or available from unrelated third
parties or (iv) fair and reasonable to the Partnership, taking into account the totality of the relationships between the parties involved (including other transactions that may be particularly favorable or advantageous to the Partnership). The
General Partner and the Board of Directors may but shall not be required in connection with the resolution of such conflict of interest to seek Special Approval of such resolution, and the General Partner or the Board of Directors, as the case may
be, may also adopt a resolution or course of action that has not received Special Approval. If Special Approval is sought, then, notwithstanding any other provision of this 

  
 37 

 
Agreement or applicable law, (x) the Conflicts Committee will be authorized in connection with its determination of whether to provide Special Approval to consider any and all factors as it
determines to be relevant or appropriate under the circumstances and (y) it will be presumed that, in making its decision, the Conflicts Committee acted in good faith, and if Special Approval is not sought and the Board of Directors determines
that the resolution or course of action taken with respect to a conflict of interest satisfies either of the standards set forth in clauses (iii) or (iv) above, then it shall be presumed that, in making its decision the Board of Directors,
acted in good faith, and, in either case, in any proceeding brought by any Limited Partner or by or on behalf of such Limited Partner or any other Limited Partner or the Partnership challenging such approval, the Person bringing or prosecuting such
proceeding shall have the burden of overcoming such presumption. Notwithstanding anything to the contrary in this Agreement or any duty otherwise existing at law or equity, the existence of the conflicts of interest described in the Registration
Statement are hereby approved by all Partners and shall not constitute a breach of this Agreement. 

(b)        Whenever the General Partner makes a determination or takes or declines to take any other
action, or any of its Affiliates causes it to do so, in its capacity as the general partner of the Partnership as opposed to in its individual capacity, whether under this Agreement, any Group Member Agreement or any other agreement contemplated
hereby or otherwise, then, unless another express standard is provided for in this Agreement, the General Partner, or such Affiliates causing it to do so, shall make such determination or take or decline to take such other action in good faith and
shall not be subject to any other or different standards imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation or at equity. In order for
a determination or other action to be in “good faith” for purposes of this Agreement, the Person or Persons making such determination or taking or declining to take such other action must reasonably believe that the determination or other
action is in the best interests of the Partnership, unless the context otherwise requires. 

(c)        Whenever the General Partner makes a determination or takes or declines to take any other
action, or any of its Affiliates causes it to do so, in its individual capacity as opposed to in its capacity as the general partner of the Partnership, whether under this Agreement, any Group Member Agreement or any other agreement contemplated
hereby or otherwise, then the General Partner, or such Affiliates causing it to do so, are entitled to make such determination or to take or decline to take such other action free of any fiduciary duty or obligation whatsoever to the Partnership or
any Limited Partner, any Record Holder or any other Person bound by this Agreement, and, to the fullest extent permitted by law, the General Partner, or such Affiliates causing it to do so, shall not be required to act in good faith or pursuant to
any other standard imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation or at equity. By way of illustration and not of limitation,
whenever the phrase, “at the option of the General Partner,” or some variation of that phrase, is used in this Agreement, it indicates that the General Partner is acting in its individual capacity. For the avoidance of doubt, whenever the
General Partner votes or transfers its Units, General Partner Interest or Incentive Distribution Rights, to the extent permitted under this Agreement, or refrains from voting or transferring its Units, General Partner Units or Incentive Distribution
Rights, as appropriate, it shall be acting in its individual capacity. The General Partner’s organizational documents may provide that determinations to take or decline to take any action in its individual, rather than representative, capacity
may or shall be determined by its members, if the General Partner is a limited liability company, stockholders, if the General Partner is a corporation, or the members or stockholders of the General Partner’s general partner, if the General
Partner is a limited partnership. 
 (d)        Whenever the Board of Directors makes a
determination or takes or declines to take any other action, whether under this Agreement, any Group Member Agreement or any other agreement contemplated hereby or otherwise, then, unless another express standard is provided for in this Agreement,
the Board of Directors, shall make such determination or take or decline to take such other action in good faith and shall not be subject to any other or different standards imposed by this Agreement, any Group Member Agreement, any other agreement
contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation or at equity. In order for a determination or other action to be in “good faith” for purposes of this Agreement, the Person or Persons making such
determination or taking or declining to take such other action must reasonably believe that the determination or other action is in the best interests of the Partnership, unless the context otherwise requires. 

(e)        Notwithstanding anything to the contrary in this Agreement, the General Partner and its
Affiliates shall have no duty or obligation, express or implied, to (i) approve the sale or other disposition of any asset of the 

  
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Partnership Group (if such approval is required pursuant to Section 7.11(b)) or (ii) permit any Group Member to use any facilities or assets of the General Partner and its Affiliates,
except as may be provided in contracts entered into from time to time specifically dealing with such use. Any determination by the General Partner or any of its Affiliates to enter into such contracts shall, in each case, be at their option. 

(f)        Except as expressly set forth in this Agreement, neither the General Partner nor the Board
of Directors or any other Indemnitee shall have any duties or liabilities, including fiduciary duties, to the Partnership or any Limited Partner and the provisions of this Agreement, to the extent that they restrict, eliminate or otherwise modify
the duties and liabilities, including fiduciary duties, of the Board of Directors or the General Partner or any other Indemnitee otherwise existing at law or in equity, are agreed by the Partners to replace such other duties and liabilities of the
Board of Directors or the General Partner or such other Indemnitee. Notwithstanding anything to the contrary, but subject to Section 7.9(c) and without reference to the definition of “good faith” in Section 7.9(b), neither the
General Partner nor the Board of Directors nor any other Indemnitee shall owe any fiduciary duties to Preferred Unit Holders other than the implied duty of good faith and fair dealing. 

(g)        The Unitholders hereby authorize the Board of Directors, on behalf of the Partnership as a
partner or member of a Group Member, to approve of actions by the general partner or managing member of such Group Member similar to those actions permitted to be taken by the Board of Directors pursuant to this Section 7.17. 

Section 7.18        Other Matters Concerning the General Partner and the Board of
Directors. 
 (a)        The General Partner and the Board of Directors may rely and shall be
protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have been signed
or presented by the proper party or parties. 
 (b)        The General Partner and the Board of
Directors may consult with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisers selected by either of them, and any act taken or omitted to be taken in reliance upon the advice or
opinion (including an Opinion of Counsel) of such Persons as to matters that the General Partner or the Board of Directors reasonably believes to be within such Person’s professional or expert competence shall be conclusively presumed to have
been done or omitted in good faith and in accordance with such advice or opinion. 
 (c)        The
General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly authorized officers, a duly appointed attorney or attorneys-in-fact or the duly authorized officers of the Partnership.

 Section 7.19        Purchase or Sale of Partnership Interests. The Board of Directors
may cause the Partnership to purchase or otherwise acquire Partnership Interests; provided, however, that the Board of Directors may not cause any Group Member to purchase Subordinated Units during the Subordination Period. As long as Partnership
Interests are held by any Group Member, such Partnership Interests shall not be considered Outstanding for any purpose, except as otherwise provided herein. The General Partner or any Affiliate of the General Partner may purchase or otherwise
acquire and sell or otherwise dispose of Partnership Interests for its own account, subject to the provisions of Articles IV and X. 

Section 7.20        Registration Rights of the General Partner and its Affiliates. 

(a)        If (i) the General Partner or any Affiliate of the General Partner (including for
purposes of this Section 7.20, any Person that is an Affiliate of the General Partner at the date hereof notwithstanding that it may later cease to be an Affiliate of the General Partner) holds Partnership Interests that it desires to sell and
(ii) Rule 144 of the Securities Act (or any successor rule or regulation to Rule 144) or another exemption from registration is not available to enable such holder of Partnership Interests (the “Holder”) to dispose of the number of
Partnership Interests it desires to sell at the time it desires to do so without registration under the Securities Act, then at the option and upon the request of the Holder, the Partnership shall file with the Commission as promptly as practicable
after receiving such request, and use its commercially reasonable efforts to cause to become effective and remain effective for a period of not less than one year following its effective date or such shorter period as shall terminate

  
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when all Partnership Interests covered by such registration statement have been sold, a registration statement under the Securities Act registering the offering and sale of the number of
Partnership Interests specified by the Holder; provided, however, that the Partnership shall not be required to effect more than three registrations in total pursuant to this Section 7.20(a), no more than one of which shall be required to be
made at any time that the Partnership is not eligible to use Form F-3 (or a comparable form) for the registration under the Securities Act of its securities; and, provided, further, that if the Conflicts Committee determines in good faith that the
requested registration would be materially detrimental to the Partnership and its Partners because such registration would (x) materially interfere with a significant acquisition, merger, disposition, corporate reorganization or other similar
transaction involving the Partnership, (y) require premature disclosure of material information that the Partnership has a bona fide business purpose for preserving as confidential or (z) render the Partnership unable to comply with
requirements under applicable securities laws, then the Partnership shall have the right to postpone such requested registration for a period of not more than six months after receipt of the Holder’s request, such right pursuant to this
Section 7.20(a) not to be utilized more than once in any 12-month period. The Partnership shall use its commercially reasonable efforts to resolve any deferral with respect to any such registration and/or filing. Except as provided in the first
sentence of this Section 7.20(a), the Partnership shall be deemed not to have used all its commercially reasonable efforts to keep the registration statement effective during the applicable period if it voluntarily takes any action that would
result in Holders of Partnership Interests covered thereby not being able to offer and sell such Partnership Interests at any time during such period, unless such action is required by applicable law. In connection with any registration pursuant to
this Section 7.20(a), the Partnership shall (i) promptly prepare and file (A) such documents as may be necessary to register or qualify the securities subject to such registration under the securities laws of such states as the Holder
shall reasonably request (provided, however, that no such qualification shall be required in any jurisdiction where, as a result thereof, the Partnership would become subject to general service of process or to taxation or qualification to do
business as a foreign corporation or partnership doing business in such jurisdiction solely as a result of such registration), and (B) such documents as may be necessary to apply for listing or to list the Partnership Interests subject to such
registration on such National Securities Exchange as the Holder shall reasonably request, and (ii) do any and all other acts and things that may be necessary or appropriate to enable the Holder to consummate a public sale of such Partnership
Interests in such states. Except as set forth in Section 7.20(c), all costs and expenses of any such registration and offering (other than the underwriting discounts and commissions) shall be paid by the Partnership, without reimbursement by
the Holder. 
 (b)        If the Partnership shall at any time propose to file a registration
statement under the Securities Act for an offering of equity interests of the Partnership for cash (other than an offering relating solely to an employee benefit plan), the Partnership shall use its commercially reasonable efforts to include such
number or amount of Partnership Interests held by any Holder in such registration statement as the Holder shall request; provided, however, that the Partnership is not required to make any effort or take any action to so include the Partnership
Interests of the Holder once the registration statement becomes or is declared effective by the Commission, including any registration statement providing for the offering from time to time of Partnership Interests pursuant to Rule 415 of the
Securities Act. If the proposed offering pursuant to this Section 7.20(b) shall be an underwritten offering, then, in the event that the managing underwriter or managing underwriters of such offering advise the Partnership and the Holder in
writing that in their opinion the inclusion of all or some of the Holder’s Partnership Interests would adversely and materially affect the success of the offering, the Partnership shall include in such offering only that number or amount, if
any, of Partnership Interests held by the Holder that, in the opinion of the managing underwriter or managing underwriters, will not so adversely and materially affect the offering. Except as set forth in Section 7.20(c), all costs and expenses
of any such registration and offering (other than the underwriting discounts and commissions) shall be paid by the Partnership, without reimbursement by the Holder. 

(c)        If underwriters are engaged in connection with any registration referred to in this
Section 7.20, the Partnership shall provide indemnification, representations, covenants, opinions and other assurance to the underwriters in form and substance reasonably satisfactory to such underwriters. Further, in addition to and not in
limitation of the Partnership’s obligation under Section 7.15, the Partnership shall, to the fullest extent permitted by law, indemnify and hold harmless the Holder, its officers, directors and each Person who controls the Holder (within
the meaning of the Securities Act) and any agent thereof (collectively, “Indemnified Persons”) from and against any and all losses, claims, demands, actions, causes of action, assessments, damages, liabilities (joint or several),
costs and expenses (including interest, penalties and reasonable attorneys’ fees and disbursements), resulting to, imposed upon, or incurred by the Indemnified Persons, directly or indirectly, under the Securities Act or otherwise (hereinafter
referred to in this Section 7.20(c) as a “claim” and in the plural as “claims”) based upon, arising out of 

  
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or resulting from any untrue statement or alleged untrue statement of any material fact contained in any registration statement under which any Partnership Interests were registered under the
Securities Act or any state securities or Blue Sky laws, in any preliminary prospectus or issuer free writing prospectus as defined in Rule 433 of the Securities Act (if used prior to the effective date of such registration statement), or in any
summary, free writing or final prospectus or in any amendment or supplement thereto (if used during the period the Partnership is required to keep the registration statement current), or arising out of, based upon or resulting from the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements made therein not misleading; provided, however, that the Partnership shall not be liable to any Indemnified Person to
the extent that any such claim arises out of, is based upon or results from an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, such preliminary, summary, free writing or final
prospectus or such amendment or supplement, in reliance upon and in conformity with written information furnished to the Partnership by or on behalf of such Indemnified Person specifically for use in the preparation thereof. 

(d)        The provisions of Section 7.20(a) and Section 7.20(b) shall continue to be
applicable with respect to the General Partner (and any of the General Partner’s Affiliates) after it ceases to be a general partner of the Partnership, during a period of two years subsequent to the effective date of such cessation and for so
long thereafter as is required for the Holder to sell all of the Partnership Interests with respect to which it has requested during such two-year period inclusion in a registration statement otherwise filed or that a registration statement be
filed; provided, however, that the Partnership shall not be required to file successive registration statements covering the same Partnership Interests for which registration was demanded during such two-year period. The provisions of
Section 7.20(c) shall continue in effect thereafter. 
 (e)        The rights to cause the
Partnership to register Partnership Interests pursuant to this Section 7.20 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such Partnership Interests, provided (i) the Partnership is,
within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the Partnership Interests with respect to which such registration rights are being assigned, and (ii) such
transferee or assignee agrees in writing to be bound by and subject to the terms set forth in this Section 7.20. 

(f)        Any request to register Partnership Interests pursuant to this Section 7.20 shall
(i) specify the Partnership Interests intended to be offered and sold by the Person making the request, (ii) express such Person’s present intent to offer such Partnership Interests for distribution, (iii) describe the nature or
method of the proposed offer and sale of Partnership Interests, and (iv) contain the undertaking of such Person to provide all such information and materials and take all action as may be required in order to permit the Partnership to comply
with all applicable requirements in connection with the registration of such Partnership Interests. 

Section 7.21        Reliance by Third Parties. Notwithstanding anything to the contrary in
this Agreement, any Person dealing with the Partnership shall be entitled to assume that the Board of Directors, the General Partner and any Officer authorized by the Board of Directors to act on behalf of and in the name of the Partnership has full
power and authority to encumber, sell or otherwise use in any manner any and all assets of the Partnership and to enter into any authorized contracts on behalf of the Partnership, and such Person shall be entitled to deal with the Board of
Directors, the General Partner or any such Officer as if it were the Partnership’s sole party in interest, both legally and beneficially. Each Limited Partner hereby waives any and all defenses or other remedies that may be available against
such Person to contest, negate or disaffirm any action of the Board of Directors, the General Partner or any such Officer in connection with any such dealing. In no event shall any Person dealing with the Board of Directors, the General Partner or
any such Officer or its representatives be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the Board of Directors, the General Partner or any such
Officer or its representatives. Each and every certificate, document or other instrument executed on behalf of the Partnership by the Board of Directors, the General Partner, the Officers or representatives of the General Partner authorized by the
General Partner or the Board of Directors shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (a) at the time of the execution and delivery of such certificate, document or instrument, this
Agreement was in full force and effect, (b) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Partnership and (c) such certificate, document or
instrument was duly 

  
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executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership. 

ARTICLE VIII 
 BOOKS,
RECORDS, ACCOUNTING AND REPORTS 
 Section 8.1        Records and Accounting. The
Partnership shall keep or cause to be kept at the principal office of the Partnership appropriate books and records with respect to the Partnership’s business, including all books and records necessary to provide to the Limited Partners any
information required to be provided pursuant to Section 3.4(a). Any books and records maintained by or on behalf of the Partnership in the regular course of its business, including the record of the Record Holders of Units or other Partnership
Interests, books of account and records of Partnership proceedings, may be kept on, or be in the form of, computer disks, hard drives, punch cards, magnetic tape, photographs, micrographics or any other information storage device; provided,
however, that the books and records so maintained are convertible into clearly legible written form within a reasonable period of time. The books of the Partnership shall be maintained, for financial reporting purposes, on an accrual basis in
accordance with U.S. GAAP. 
 Section 8.2        Fiscal Year. The fiscal year of the
Partnership shall be a fiscal year ending December 31. 
 Section 8.3        Reports.

 (a)        As soon as practicable, but in no event later than 120 days after the close of each
fiscal year of the Partnership, the Partnership shall cause to be mailed or made available, by any reasonable means (including posting on or accessible through the Partnership’s or the SEC’s website), to each Record Holder of a Unit as of
a date selected by the Board of Directors, an annual report containing financial statements of the Partnership for such fiscal year of the Partnership, presented in accordance with U.S. GAAP, including a balance sheet and statements of operations,
Partnership equity and cash flows, such statements to be audited by a firm of independent public accountants selected by the Board of Directors. 

(b)        As soon as practicable, but in no event later than 90 days after the close of each Quarter
except the last Quarter of each fiscal year, the Partnership shall cause to be mailed or made available, by any reasonable means (including posting on or accessible through the Partnership’s or the SEC’s website), to each Record Holder of
a Unit, as of a date selected by the Board of Directors, a report containing unaudited financial statements of the Partnership and such other information as may be required by applicable law, regulation or rule of any National Securities Exchange on
which the Units are listed or admitted to trading, or as the Board of Directors determines to be necessary or appropriate. 
 ARTICLE IX

 TAX MATTERS 

Section 9.1        Tax Elections and Information. 

(a)        The Partnership has elected to be treated as an association taxable as a corporation for
United States federal income tax purposes. Except as otherwise provided herein, the Board of Directors shall determine whether the Partnership should make any other elections permitted by the Code. 

(b)        The tax information reasonably required by Record Holders generally for United States
federal income tax reporting purposes with respect to a taxable year shall be furnished to them within 90 days of the close of the calendar year in which the Partnership’s taxable year ends. 

(c)        Each Partner shall provide the Partnership with all information reasonably requested by the
Partnership to enable the Partnership to claim the exemption from U.S. federal income tax under Section 883 of the Code. 

Section 9.2        Withholding. Notwithstanding any other provision of this Agreement, the
Board of Directors is authorized to take any action that may be required or advisable to cause the Partnership and other Group 

  
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Members to comply with any withholding requirements established under the Code or any other U.S. federal, state or local or any non-U.S. law including pursuant to Sections 1441, 1442 and 1445 of
the Code. To the extent that the Partnership is required or elects to withhold and pay over to any taxing authority any amount resulting from a distribution or payment to or for the benefit of any Partner, the Board of Directors may treat the amount
withheld as a distribution of cash to such Partner in the amount of such withholding from such Partner. 

Section 9.3        Conduct of Operations. The Board of Directors and the General Partner
shall use commercially reasonable efforts to conduct the business of the Partnership and its Affiliates in a manner that does not require a holder of Common Units or Preferred Units to file a tax return in any jurisdiction with which the holder has
no contact other than through ownership of Common Units or Preferred Units. 
 ARTICLE X 

ADMISSION OF PARTNERS 

Section 10.1        Admission of Initial Limited Partners. Upon the issuance by the
Partnership of Common Units, Preferred Units, Subordinated Units and Incentive Distribution Rights to the General Partner and Dynagas Holding Ltd. as described in Sections 5.1 and 5.2, the Board of Directors shall admit such parties to the
Partnership as Initial Limited Partners in respect of the Common Units, Preferred Units, Subordinated Units or Incentive Distribution Rights issued to them. 

Section 10.2        Admission of Additional Limited Partners. 

(a)        From and after the Closing Date, by acceptance of the transfer of any Limited Partner
Interests in accordance with Article IV or the acceptance of any Limited Partner Interests issued pursuant to Article V or pursuant to a merger, consolidation or conversion pursuant to Article XIV, each transferee of, or other such Person acquiring,
a Limited Partner Interest (including any nominee holder or an agent or representative acquiring such Limited Partner Interests for the account of another Person) (i) shall be admitted to the Partnership as a Limited Partner with respect to the
Limited Partner Interests so transferred or issued to such Person when any such transfer, issuance or admission is reflected in the books and records of the Partnership and such Limited Partner becomes the Record Holder of the Limited Partner
Interests so transferred, (ii) shall become bound, and shall be deemed to have agreed to be bound, by the terms of this Agreement, (iii) represents that the transferee or other recipient has the capacity, power and authority to enter into
this Agreement and (iv) makes the consents, acknowledgements and waivers contained in this Agreement, all with or without execution of this Agreement by such Person. The transfer of any Limited Partner Interests and the admission of any new
Limited Partner shall not constitute an amendment to this Agreement. A Person may become a Limited Partner or Record Holder of a Limited Partner Interest without the consent or approval of any of the Partners. A Person may not become a Limited
Partner until such Person acquires a Limited Partner Interest and until such Person is reflected in the books and records of the Partnership as the Record Holder of such Limited Partner Interest. 

(b)        The name and mailing address of each Limited Partner shall be listed on the books and
records of the Partnership maintained for such purpose by the Partnership or the Transfer Agent. The General Partner shall update the books and records of the Partnership from time to time as necessary to reflect accurately the information therein
(or shall cause the Transfer Agent to do so, as applicable). A Limited Partner Interest may be represented by a Certificate, as provided in Section 4.1. 

(c)        Any transfer of a Limited Partner Interest shall not entitle the transferee to receive
distributions or to any other rights to which the transferor was entitled until the transferee becomes a Limited Partner pursuant to Section 10.2(a). 

Section 10.3        Admission of Successor General Partner. A successor General Partner
approved pursuant to Sections 11.1 or 11.2 or the transferee of or successor to all or part of the General Partner Interest (represented by General Partner Units) pursuant to Section 4.6 who is proposed to be admitted as a successor General
Partner shall be admitted to the Partnership as the General Partner, effective immediately prior to the withdrawal or removal of the predecessor or transferring General Partner, pursuant to Sections 11.1 or 11.2 or the transfer of the General
Partner Interest (represented by General Partner Units) pursuant to Section 4.6; provided, however, that no such Person shall be admitted to the Partnership as a successor or additional General Partner until

  
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compliance with the terms of Section 4.6 has occurred and such Person has executed and delivered such other documents or instruments as may be required to effect such admission. Any such
successor or additional General Partner is hereby authorized to and shall, subject to the terms hereof, carry on the business of the members of the Partnership Group without dissolution. 

Section 10.4        Amendment of Agreement and Certificate of Limited Partnership. To
effect the admission to the Partnership of any Partner, the Board of Directors shall take all steps necessary or appropriate under the Marshall Islands Act to amend the records of the Partnership to reflect such admission and, if necessary, to
prepare as soon as practicable an amendment to this Agreement and, if required by law, the Board of Directors shall prepare and file an amendment to the Certificate of Limited Partnership. 

ARTICLE XI 
 WITHDRAWAL
OR REMOVAL OF PARTNERS 
 Section 11.1        Withdrawal of the General Partner.

 (a)        The General Partner shall be deemed to have withdrawn from the Partnership upon the
occurrence of any one of the following events (each such event herein referred to as an “Event of Withdrawal”): 

(i)        The General Partner voluntarily withdraws from the Partnership by giving
written notice to the other Partners; 
 (ii)        The General Partner transfers
all of its rights as General Partner pursuant to Section 4.6; 

(iii)        The General Partner is removed pursuant to Section 11.2; 

(iv)        The General Partner (A) makes a general assignment for the benefit of
creditors; (B) files a voluntary petition in bankruptcy; (C) files a voluntary petition or answer seeking for itself a liquidation, dissolution or similar relief (but not a reorganization) under any law; (D) files an answer or other
pleading admitting or failing to contest the material allegations of a petition filed against the General Partner in a proceeding of the type described in clauses (A), (B) or (C) of this Section 11.1(a)(iv); or (E) seeks,
consents to or acquiesces in the appointment of a trustee (but not a debtor in possession), receiver or liquidating trustee of the General Partner or of all or any substantial part of its properties; 

(v)        The General Partner is adjudged bankrupt or insolvent, or has entered
against it an order for relief in any bankruptcy or insolvency proceeding; 

(vi)        (A) in the event the General Partner is a corporation, the filing of a
certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter and the expiration of ninety (90) days after the date of notice to the General Partner of revocation without a reinstatement of its charter;
(B) in the event the General Partner is a partnership or a limited liability company, the dissolution and commencement of winding up of the General Partner; (C) in the event the General Partner is acting in such capacity by virtue of being
a trustee of a trust, the termination of the trust; (D) in the event the General Partner is a natural person, his death or adjudication of incompetency; and (E) otherwise in the event of the termination of the General Partner. 

If an Event of Withdrawal specified in Sections 11.1(a)(iv), 11.1(a)(v) or 11.1(a)(vi)(A), 11.1(a)(vi)(B), 11.1(a)(vi)(C) or 11.1(a)(vi)(E) occurs, the
withdrawing General Partner shall give notice to the Limited Partners within 30 days after such occurrence. The Partners hereby agree that only the Events of Withdrawal described in this Section 11.1 shall result in the withdrawal of the
General Partner from the Partnership. 
 (b)        Withdrawal of the General Partner from the
Partnership upon the occurrence of an Event of Withdrawal shall not constitute a breach of this Agreement under the following circumstances: 

(i)        at any time during the period beginning on the Closing Date and ending at
12:00 midnight, prevailing Eastern Time, on December 31, 2023, the General Partner voluntarily withdraws by 

  
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giving at least 90 days’ advance notice of its intention to withdraw to the Limited Partners, such withdrawal to take effect on the date specified in the notice; provided,
however, that prior to the effective date of such withdrawal, the withdrawal is approved by Unitholders holding at least a majority of the Outstanding Common Units (excluding Common Units held by the General Partner and its Affiliates) and
the General Partner delivers to the Partnership an Opinion of Counsel (“Withdrawal Opinion of Counsel”) that such withdrawal (following the selection of the successor General Partner) would not result in the loss of the limited
liability of any Limited Partner or any Group Member; 
 (ii)        at any time
after 12:00 midnight, prevailing Eastern Time, on December 31, 2023, the General Partner voluntarily withdraws by giving at least 90 days’ advance notice to the Unitholders, such withdrawal to take effect on the date specified in such
notice (provided that, prior to the effective date of such withdrawal, the General Partner delivers to the Partnership a Withdrawal Opinion of Counsel); 

(iii)        at any time that the General Partner ceases to be the General Partner
pursuant to Section 11.1(a)(ii) or is removed pursuant to Section 11.2; or 

(iv)        notwithstanding clause (i) of this sentence, at any time that the
General Partner voluntarily withdraws by giving at least 90 days’ advance notice of its intention to withdraw to the Limited Partners, such withdrawal to take effect on the date specified in the notice, if at the time such notice is given one
Person and its Affiliates (other than the General Partner and its Affiliates) own beneficially or of record or control at least 50% of the Outstanding Units. The withdrawal of the General Partner from the Partnership upon the occurrence of an Event
of Withdrawal shall also constitute the withdrawal of the General Partner as general partner or managing member, if any, to the extent applicable, of the other Group Members. If the General Partner gives a notice of withdrawal pursuant to
Section 11.1(a)(i), the holders of a Unit Majority, may, prior to the effective date of such withdrawal, elect a successor General Partner. The Person so elected as successor General Partner shall automatically become the successor general
partner or managing member, to the extent applicable, of the other Group Members of which the General Partner is a general partner or a managing member. If, prior to the effective date of the General Partner’s withdrawal, a successor is not
selected by the Unitholders as provided herein or, if applicable, the Partnership does not receive a Withdrawal Opinion of Counsel, the Partnership shall be dissolved in accordance with Section 12.1. Any successor General Partner elected in
accordance with the terms of this Section 11.1 shall be subject to the provisions of Section 10.3. 

Section 11.2        Removal of the General Partner. The General Partner may be removed if
such removal is approved by the Unitholders holding at least 66 2⁄3% of the Outstanding Units (including Units held by the General Partner and its Affiliates),
voting as a single class. Any such action by such holders or the Board of Directors for removal of the General Partner must also provide for the election of a successor General Partner by the majority vote of the outstanding Common Units, Preferred
Units and Subordinated Units, voting together as a single class. Such removal shall be effective immediately following the admission of a successor General Partner pursuant to Section 10.3. The removal of the General Partner shall also
automatically constitute the removal of the General Partner as general partner or managing member, to the extent applicable, of the other Group Members of which the General Partner is a general partner or a managing member. If a Person is elected as
a successor General Partner in accordance with the terms of this Section 11.2, such Person shall, upon admission pursuant to Section 10.3, automatically become a successor general partner or managing member, to the extent applicable, of
the other Group Members of which the General Partner is a general partner or a managing member. The right of the holders of Outstanding Units to remove the General Partner shall not exist or be exercised unless the Partnership has received an
Opinion of Counsel opining as to the matters covered by a Withdrawal Opinion of Counsel. Any successor General Partner elected in accordance with the terms of this Section 11.2 shall be subject to the provisions of Section 10.3. 

Section 11.3        Interest of Departing General Partner and Successor General Partner.

 (a)        In the event of (i) withdrawal of the General Partner under circumstances where
such withdrawal does not violate this Agreement or (ii) removal of the General Partner by the holders of Outstanding Units under circumstances where Cause does not exist, if the successor General Partner is elected in accordance with the terms
of Sections 11.1 or 11.2, (A) the Departing General Partner shall have the option, exercisable prior to the effective 

  
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date of the departure of such Departing General Partner, to require its successor to purchase its General Partner Interest (represented by General Partner Units) and its general partner interest
(or equivalent interest), if any, in the other Group Members and its Incentive Distribution Rights (collectively, the “Combined Interest”) in exchange for an amount in cash equal to the fair market value of such Combined Interest,
such amount to be determined and payable as of the effective date of its departure and (B) the other holders of the Incentive Distribution Rights shall have the option, exercisable prior to the effective date of the departure of such Departing
General Partner, to require such successor to purchase such holders’ Incentive Distribution Rights in exchange for an amount in cash equal to the fair market value of such Incentive Distribution Rights, such amount to be determined and payable
as of the effective date of the Departing General Partner’s departure. If the General Partner is removed by the Unitholders under circumstances where Cause exists or if the General Partner withdraws under circumstances where such withdrawal
violates this Agreement, and if a successor General Partner is elected in accordance with the terms of Sections 11.1 or 11.2 (or if the business of the Partnership is continued pursuant to Section 12.2 and the successor General Partner is not
the former General Partner), such successor shall have the option, exercisable prior to the effective date of the departure of such Departing General Partner (or, in the event the business of the Partnership is continued, prior to the date the
business of the Partnership is continued), to purchase the Combined Interest in exchange for an amount in cash equal to such fair market value of such Combined Interest of the Departing General Partner. In either event, the Departing General Partner
shall be entitled to receive all reimbursements due such Departing General Partner pursuant to Section 7.12, including any employee-related liabilities (including severance liabilities), incurred in connection with the termination of any
employees employed by the Departing General Partner or its Affiliates (other than any Group Member) for the benefit of the Partnership or the other Group Members. 

For purposes of this Section 11.3(a), the fair market value of the Departing General Partner’s Combined Interest and the value of
the Incentive Distribution Rights held by holders other than the Departing General Partner shall be determined by agreement between the Departing General Partner and its successor or, failing agreement within 30 days after the effective date of such
Departing General Partner’s departure, by an independent investment banking firm or other independent expert selected by the Departing General Partner and its successor, which, in turn, may rely on other experts, and the determination of which
shall be conclusive as to such matter. If such parties cannot agree upon one independent investment banking firm or other independent expert within 45 days after the effective date of such departure, then the Departing General Partner shall
designate an independent investment banking firm or other independent expert, the Departing General Partner’s successor shall designate an independent investment banking firm or other independent expert, and such firms or experts shall mutually
select a third independent investment banking firm or independent expert, which third independent investment banking firm or other independent expert shall determine the fair market value of the Combined Interest of the Departing General Partner and
the value of the Incentive Distribution Rights held by holders other than the Departing General Partner. In making its determination, such third independent investment banking firm or other independent expert may consider the then current trading
price of Units on any National Securities Exchange on which Units are then listed or admitted to trading, the value of the Partnership’s assets, the rights and obligations of the Departing General Partner and other factors it may deem relevant.

 (b)        If the Combined Interest is not purchased in the manner set forth in
Section 11.3(a), the Departing General Partner (or its transferee) shall become a Limited Partner and its Combined Interest shall be converted into Common Units pursuant to a valuation made by an investment banking firm or other independent
expert selected pursuant to Section 11.3(a), without reduction in such Partnership Interest (but subject to proportionate dilution by reason of the admission of its successor). Any successor General Partner shall indemnify the Departing General
Partner (or its transferee) as to all debts and liabilities of the Partnership arising on or after the date on which the Departing General Partner (or its transferee) becomes a Limited Partner. For purposes of this Agreement, conversion of the
Combined Interest of the Departing General Partner to Common Units will be characterized as if the Departing General Partner (or its transferee) contributed its Combined Interest to the Partnership in exchange for the newly issued Common Units. 

(c)        If a successor General Partner is elected in accordance with the terms of Sections 11.1 or
11.2 (or if the Partnership is continued pursuant to Section 12.2 and the successor General Partner is not the former General Partner) and the option described in Section 11.3(a) is not exercised by the party entitled to do so, the
successor General Partner shall, at the effective date of its admission to the Partnership, contribute to the Partnership cash in the amount equal to the product of (i) the quotient obtained by dividing (A) the Percentage Interest of the
General 

  
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Partner Interest of the Departing General Partner by (B) a percentage equal to 100% less the Percentage Interest of the General Partner Interest of the Departing General Partner and
(ii) the Net Agreed Value of the Partnership’s assets on such date. In such event, such successor General Partner shall, subject to the following sentence, be entitled to its Percentage Interest of all Partnership allocations and
distributions to which the Departing General Partner was entitled. In addition, the successor General Partner shall cause this Agreement to be amended to reflect that, from and after the date of such successor General Partner’s admission, the
successor General Partner’s interest in all Partnership distributions and allocations shall be its Percentage Interest. 

Section 11.4        Termination of Subordination Period, Conversion of Subordinated Units and
Extinguishment of Cumulative Common Unit Arrearages. Notwithstanding any provision of this Agreement, if the General Partner is removed as general partner of the Partnership under circumstances where Cause does not exist and no Units held by the
General Partner and its Affiliates are voted in favor of such removal, (i) the Subordination Period will end and all Subordinated Units will immediately and automatically convert into Common Units on a one-for-one basis, (ii) all
Cumulative Common Unit Arrearages on the Common Units will be extinguished, (iii) the General Partner will have the right to convert its General Partner Interest (represented by General Partner Units) and its Incentive Distribution Rights into
Common Units or to receive cash in exchange therefor, as provided in Section 11.3 and (iv) the other holders of the Incentive Distribution Rights will have the right to convert their Incentive Distribution Rights into Common Units or to
receive cash in exchange therefor, as provided in Section 11.3. 

Section 11.5        Withdrawal of Limited Partners. No Limited Partner shall have any
right to withdraw from the Partnership; provided, however, that when a transferee of a Limited Partner’s Limited Partner Interest becomes a Record Holder of the Limited Partner Interest so transferred, such transferring Limited
Partner shall cease to be a Limited Partner with respect to the Limited Partner Interest so transferred. 
 ARTICLE XII 

DISSOLUTION AND LIQUIDATION 

Section 12.1        Dissolution. The Partnership shall not be dissolved by the admission
of additional Limited Partners or by the admission of a successor or additional General Partner in accordance with the terms of this Agreement. Upon the removal or withdrawal of the General Partner, if a successor General Partner is elected pursuant
to Sections 11.1 or 11.2, the Partnership shall not be dissolved and the Board of Directors shall continue the business of the Partnership. The Partnership shall dissolve, and (subject to Section 12.2) its affairs shall be wound up, upon: 

(a)        an election to dissolve the Partnership by the General Partner and our Board of Directors
that is approved by the holders of a Unit Majority; 
 (b)        at any time there are no Limited
Partners, unless the Partnership is continued without dissolution in accordance with the Marshall Islands Act; 

(c)        the entry of a decree of judicial dissolution of the Partnership pursuant to the provisions
of the Marshall Islands Act; or 
 (d)        an Event of Withdrawal of the General Partner as
provided in Section 11.1(a) (other than Section 11.1(a)(ii)), unless a successor is elected and an Opinion of Counsel is received as provided in Sections 11.1(b) or 11.2 and such successor is admitted to the Partnership pursuant to
Section 10.3. 
 Section 12.2        Continuation of the Business of the Partnership
After Dissolution. Upon (a) dissolution of the Partnership following an Event of Withdrawal caused by the withdrawal or removal of the General Partner as provided in Sections 11.1(a)(i) or 11.1(a)(iii) and the failure of the Partners to
select a successor to such Departing General Partner pursuant to Sections 11.1 or 11.2, then within 90 days thereafter, or (b) dissolution of the Partnership upon an event constituting an Event of Withdrawal as defined in Sections 11.1(a)(iv),
11.1(a)(v) or 11.1(a)(vi), then, to the maximum extent permitted by the Marshall Islands Act, within 180 days thereafter, the holders of a Unit Majority may elect in writing to continue the business of the Partnership on the same terms and
conditions set forth in this Agreement by appointing, effective as of the date of the Event of Withdrawal, as a successor General Partner a Person approved by the holders of a Unit Majority. Unless such an election is made

  
 47 

 
within the applicable time period as set forth above, the Partnership shall dissolve and conduct only activities necessary to wind up its affairs. If such an election is so made, then: 

(i)        the Partnership shall continue without dissolution unless earlier dissolved in accordance
with this Article XII; 
 (ii)        if the successor General Partner is not the former General
Partner, then the interest of the former General Partner shall be treated in the manner provided in Section 11.3; and 

(iii)        the successor General Partner shall be admitted to the Partnership as General Partner,
effective as of the Event of Withdrawal, by agreeing in writing to be bound by this Agreement; provided, however, that the right of the holders of a Unit Majority to approve a successor General Partner and to reconstitute and to
continue the business of the Partnership shall not exist and may not be exercised unless the Partnership has received an Opinion of Counsel that the exercise of the right would not result in the loss of limited liability of any Limited Partner. 

Section 12.3        Liquidating Trustee. Upon dissolution of the Partnership, unless the
business of the Partnership is continued pursuant to Section 12.2, the Board of Directors shall select one or more Persons to act as Liquidating Trustee. The Liquidating Trustee (if other than the General Partner) shall be entitled to receive
such compensation for its services as may be approved by holders of at least a majority of the Outstanding Common Units and Subordinated Units, voting as a single class. The Liquidating Trustee (if other than the General Partner) shall agree not to
resign at any time without 15 days’ prior notice and may be removed at any time, with or without cause, by notice of removal approved by holders of at least a majority of the Outstanding Common Units and Subordinated Units, voting as a single
class. Upon dissolution, removal or resignation of the Liquidating Trustee, a successor and substitute Liquidating Trustee (who shall have and succeed to all rights, powers and duties of the original Liquidating Trustee) shall within 30 days
thereafter be approved by the holders of at least a majority of the Outstanding Common Units and Subordinated Units, voting as a single class. The right to approve a successor or substitute Liquidating Trustee in the manner provided herein shall be
deemed to refer also to any such successor or substitute Liquidating Trustee approved in the manner herein provided. Except as expressly provided in this Article XII, the Liquidating Trustee approved in the manner provided herein shall have and may
exercise, without further authorization or consent of any of the parties hereto, all of the powers conferred upon the Board of Directors and the General Partner under the terms of this Agreement (but subject to all of the applicable limitations,
contractual and otherwise, upon the exercise of such powers, other than the limitation on sale set forth in Section 7.11(b)) necessary or appropriate to carry out the duties and functions of the Liquidating Trustee hereunder for and during the
period of time required to complete the winding up and liquidation of the Partnership as provided for herein. 

Section 12.4        Liquidation. The Liquidating Trustee shall proceed to dispose of the
assets of the Partnership, discharge its liabilities, and otherwise wind up its affairs in such manner and over such period as determined by the Liquidating Trustee, subject to Section 60 of the Marshall Islands Act and the following: 

(a)        The assets may be disposed of by public or private sale or by distribution in kind to one
or more Partners on such terms as the Liquidating Trustee and such Partner or Partners may agree. If any property is distributed in kind, the Partner receiving the property shall be deemed for purposes of Section 12.4(c) to have received cash
equal to its fair market value, and contemporaneously therewith, appropriate cash distributions must be made to the other Partners. The Liquidating Trustee may defer liquidation or distribution of the Partnership’s assets for a reasonable time
if it determines that an immediate sale or distribution of all or some of the Partnership’s assets would be impractical or would cause undue loss to the Partners. The Liquidating Trustee may distribute the Partnership’s assets, in whole or
in part, in kind if it determines that a sale would be impractical or would cause undue loss to the Partners. 

(b)        The Liquidating Trustee shall first satisfy the liabilities of the Partnership. Liabilities
of the Partnership include amounts owed to the Liquidating Trustee as compensation for serving in such capacity (subject to the terms of Section 12.3) and amounts to Partners otherwise than in respect of their distribution rights under Article
VI. With respect to any liability that is contingent, conditional or unmatured or is otherwise not yet due and payable, the Liquidating Trustee shall either settle such claim for such amount as it deems appropriate or establish a reserve of cash or
other assets to provide for its payment. When paid, any unused portion of the reserve shall be distributed as additional liquidation proceeds. 

  
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 (c)        All property and all cash in excess of that
required to discharge liabilities as provided in this Section 12.4 shall be distributed, subject to Section 16.4 in respect of Series A Preferred Units, as follows: 

(i)        If the Current Market Price of the Common Units as of the date three trading days prior to
the announcement of the proposed liquidation exceeds the Unrecovered Capital for a Common Unit plus the Cumulative Common Unit Arrearage: 

(A)        First, (x) to the General Partner in accordance with its Percentage
Interest and (y) to all the Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect of each Common Unit then Outstanding an amount
equal to such Current Market Price of a Common Unit; 
 (B)        Second
(x) to the General Partner in accordance with its Percentage Interest and (y) to all Unitholders holding Subordinated Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been
distributed in respect of each Subordinated Unit then Outstanding an amount equal to such Current Market Price of a Common Unit; and 

(C)        Thereafter (x) to the General Partner in accordance with its
Percentage Interest; (y) 50% to the holders of the Incentive Distribution Rights, Pro Rata; and (z) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (x) and (y) of
this clause (i)(C); 
 (ii)        If the Current Market Price of the Common Units as of the date
three trading days prior to the announcement of the proposed liquidation is equal to or less than the Unrecovered Capital for a Common Unit plus the Cumulative Common Unit Arrearage: 

(A)        First, (x) to the General Partner in accordance with its Percentage
Interest and (y) to all the Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect of each Common Unit then Outstanding an amount
equal to the Unrecovered Capital for a Common Unit; 
 (B)        Second,
(x) to the General Partner in accordance with its Percentage Interest and (y) to all Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been
distributed in respect of each Common Unit then Outstanding an amount equal to the Cumulative Common Unit Arrearage; 

(C)        Third, (x) to the General Partner in accordance with its Percentage
Interest and (y) to all Unitholders holding Subordinated Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect of each Subordinated Unit then Outstanding an
amount equal to the Unrecovered Capital for a Common Unit (as calculated prior to the distribution specified in clause (ii)(A) above); and 

(D)        Thereafter, (x) to the General Partner in accordance with its
Percentage Interest; (y) 50% to the holders of the Incentive Distribution Rights, Pro Rata; and (z) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (x) and (y) of
this clause (ii)(D); 
 Distributions with respect to Series A Preferred Units described in Article XVI in connection with a liquidation or
dissolution of the Partnership shall be made pursuant to Section 16.4, rather than pursuant to clause (i) or (ii) of this Section 12.4(c). 

Section 12.5        Cancellation of Certificate of Limited Partnership. Upon the
completion of the distribution of Partnership cash and property as provided in Section 12.4 in connection with the liquidation of the Partnership, the Certificate of Limited Partnership and all qualifications of the Partnership as a foreign
limited partnership in jurisdictions other than the Marshall Islands shall be canceled and such other actions as may be necessary to terminate the Partnership shall be taken. 

  
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 Section 12.6        Return of Contributions.
The General Partner shall not be personally liable for, and shall have no obligation to contribute or loan any monies or property to the Partnership to enable it to effectuate, the return of the Capital Contributions of the Limited Partners or
Unitholders, or any portion thereof, it being expressly understood that any such return shall be made solely from Partnership assets. 

Section 12.7        Waiver of Partition. To the maximum extent permitted by law, each
Partner hereby waives any right to partition of the Partnership property. 
 ARTICLE XIII 

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS; RECORD DATE 

Section 13.1        Amendments to be Adopted Without Approval of the Limited Partners or the
General Partner. The General Partner and each Limited Partner agree that the Board of Directors, without the approval of any Limited Partner or, subject to Section 5.5, the General Partner, may amend any provision of this Agreement and
execute, swear to, acknowledge, deliver, file and record whatever documents may be required in connection therewith, to reflect: 

(a)        a change in the name of the Partnership, the location of the principal place of business of
the Partnership, the registered agent of the Partnership or the registered office of the Partnership; 

(b)        admission, substitution, withdrawal or removal of Partners in accordance with this
Agreement; 
 (c)        a change that the Board of Directors determines to be necessary or
appropriate to qualify or continue the qualification of the Partnership as a limited partnership or a partnership in which the Limited Partners have limited liability under the Marshall Islands Act; 

(d)        subject to Section 16.5, to the extent applicable, a change that the Board of
Directors determines (i) does not adversely affect the Limited Partners (including any particular class or series of Partnership Interests as compared to other classes or series of Partnership Interests) in any material respect, (ii) to be
necessary or appropriate to (A) satisfy any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or regulation of any Marshall Islands authority (including the Marshall Islands Act) or (B) facilitate
the trading of the Units or comply with any rule, regulation, guideline or requirement of any National Securities Exchange on which the Units are or will be listed, or admitted to trading, (iii) to be necessary or appropriate in connection with
action taken by the Board of Directors pursuant to Section 5.8 or (iv) is required to effect the intent expressed in the Registration Statement or the intent of the provisions of this Agreement or is otherwise contemplated by this
Agreement; 
 (e)        a change in the fiscal year or taxable year of the Partnership and any
other changes that the Board of Directors determines to be necessary or appropriate as a result of a change in the fiscal year or taxable year of the Partnership including, if the Board of Directors shall so determine, a change in the definition of
“Quarter” and the dates on which distributions (other than Series A Distributions) are to be made by the Partnership; 

(f)        an amendment that is necessary, in the Opinion of Counsel, to prevent the Partnership, the
members of the Board of Directors, or the General Partner or its or their directors, officers, trustees or agents from in any manner being subjected to the provisions of the U.S. Investment Company Act of 1940, as amended, the U.S. Investment
Advisers Act of 1940, as amended, or “plan asset” regulations adopted under the U.S. Employee Retirement Income Security Act of 1974, as amended, regardless of whether such regulations are substantially similar to plan asset regulations
currently applied or proposed by the United States Department of Labor; 
 (g)        subject to
Section 16.5, an amendment that the Board of Directors, and if required by Section 5.5, the General Partner, determines to be necessary or appropriate in connection with the authorization of issuance of any class or series of Partnership
Interests pursuant to Section 5.4; 
 (h)        an amendment that the Board of Directors
determines to be necessary or appropriate for the authorization of additional Partnership Interests or rights to acquire Partnership Interests, including any amendment that the Board of Directors determines is necessary or appropriate in connection
with: 

  
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 (i)        the adjustments of the Minimum
Quarterly Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution in connection with the IDR Reset Election in accordance with Section 5.10; 

(ii)        the implementation of the provisions relating to the General
Partner’s right to reset its Incentive Distribution Rights in exchange for Common Units; or 

(iii)      any modification of the Incentive Distribution Rights made in connection with the
issuance of additional Partnership Interests or rights to acquire Partnership Interests, provided, that, with respect to this clause (iii), any such modifications to the Incentive Distribution Rights and the related issuance of Partnership
Interests have received Special Approval; 
 (i)        any amendment expressly permitted in this
Agreement to be made by the Board of Directors acting alone; 
 (j)        an amendment effected,
necessitated or contemplated by a Merger Agreement approved in accordance with Section 14.3; 

(k)        an amendment that the Board of Directors determines to be necessary or appropriate to
reflect and account for the formation by the Partnership of, or investment by the Partnership in, any corporation, partnership, joint venture, limited liability company or other Person, in connection with the conduct by the Partnership of activities
permitted by the terms of Section 2.4; 
 (l)        a conversion, merger or conveyance
pursuant to Section 14.3(d); 
 (m)      to cure any ambiguity, defect or inconsistency; or 

(n)        any other amendments substantially similar to the foregoing. 

Section 13.2        Amendment Procedures. Except as provided in Sections 13.1 and 13.3,
all amendments to this Agreement shall be made in accordance with the following requirements. Amendments to this Agreement may be proposed only by, or with the written consent of a majority of the Board of Directors; provided, however,
that the Board of Directors shall have no duty or obligation to propose any amendment to this Agreement and may decline to do so free of any fiduciary duty or obligation whatsoever to the Partnership or any Limited Partner and, in declining to
propose an amendment, to the fullest extent permitted by applicable law shall not be required to act in good faith or pursuant to any other standard imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or
under the Marshall Islands Act or any other law, rule or regulation. Subject to Section 16.5, to the extent applicable, a proposed amendment shall be effective upon its approval by the Board of Directors and the holders of a Unit Majority,
unless a greater or different percentage is required under this Agreement or by the Marshall Islands Act. Each proposed amendment that requires the approval of the holders of a specified percentage of Outstanding Units shall be set forth in a
writing that contains the text of the proposed amendment. If such an amendment is proposed, the Board of Directors shall seek the written approval of the requisite percentage of Outstanding Units or call a meeting of the Unitholders to consider and
vote on such proposed amendment. The Board of Directors shall notify all Record Holders upon final adoption of any such proposed amendments. 

Section 13.3        Amendment Requirements. 

(a)        Notwithstanding the provisions of Sections 13.1 and 13.2, no provision of this Agreement
that establishes a percentage of Outstanding Units (including Units deemed owned by the General Partner and its Affiliates) required to take any action shall be amended, altered, changed, repealed or rescinded in any respect that would have the
effect of (i) in the case of any provision of this Agreement other than Section 11.2 or Section 13.4, reducing such percentage or (ii) in the case of Section 11.2 or Section 13.4, increasing such percentage, unless such
amendment is approved by the written consent or the affirmative vote of holders of Outstanding Units whose aggregate Outstanding Units constitute not less than the voting requirement sought to be reduced. 

  
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 (b)        Notwithstanding the provisions of Sections
13.1 and 13.2, no amendment to this Agreement may (i) enlarge the obligations of any Limited Partner without its consent, unless such enlargement shall be deemed to have occurred as a result of an amendment approved pursuant to
Section 13.3(c) or (ii) enlarge the obligations of, restrict in any way any action by or rights of, or reduce in any way the amounts distributable, reimbursable or otherwise payable to, the General Partner or any of its Affiliates without
its consent, which consent may be given or withheld at the General Partner’s option. 

(c)        Except as provided in Section 14.3 and subject to Section 16.5(c)(i) with respect
to Series A Preferred Units, and without limitation of the Board of Directors’ authority to adopt amendments to this Agreement without the approval of any Partners as contemplated in Section 13.1, any amendment that would have a material
adverse effect on the rights or preferences of any class or series of Partnership Interests in relation to other classes or series of Partnership Interests must be approved by the holders of not less than a majority of the Outstanding Partnership
Interests of the class or series affected. If the General Partner determines an amendment does not satisfy the requirements of Section 13.1(d)(i) because it adversely affects one or more classes of Partnership Interests, as compared to other
classes of Partnership Interests, in any material respect, such amendment shall only be required to be approved by the adversely affected class or classes. 

(d)        Notwithstanding any other provision of this Agreement, except for amendments pursuant to
Section 13.1 and except as otherwise provided by Section 14.3(b), no amendments shall become effective without the approval of the holders of at least 90% of the Outstanding Units voting as a single class unless the Partnership obtains an
Opinion of Counsel to the effect that such amendment will not affect the limited liability of any Limited Partner under applicable law. 

(e)        Except as provided in Section 13.1, this Section 13.3 shall only be amended with
the approval of the holders of at least 90% of the Outstanding Units. 

Section 13.4        Special Meetings. All acts of Limited Partners to be taken pursuant to
this Agreement shall be taken in the manner provided in this Article XIII. Special meetings of the Limited Partners may be called by the Board of Directors or by Limited Partners owning 20% or more of the Outstanding Units of the class, classes or
series for which a meeting is proposed. Limited Partners shall call a special meeting by delivering to the Board of Directors one or more requests in writing stating that the signing Limited Partners wish to call a special meeting and indicating the
general or specific purposes for which the special meeting is to be called, it being understood that the purposes of such special meeting may only be to vote on matters that require the vote of the Unitholders pursuant to this Agreement. Within 60
days after receipt of such a call from Limited Partners or within such greater time as may be reasonably necessary for the Partnership to comply with any statutes, rules, regulations, listing agreements or similar requirements governing the holding
of a meeting or the solicitation of proxies for use at such a meeting, the Board of Directors shall send a notice of the meeting to the Limited Partners either directly or indirectly through the Transfer Agent. A meeting shall be held at a time and
place determined by the Board of Directors on a date not less than 10 days nor more than 60 days after the mailing of notice of the meeting. Limited Partners shall not vote on matters that would cause the Limited Partners to be deemed to be taking
part in the management and control of the business and affairs of the Partnership so as to jeopardize the Limited Partners’ limited liability under the Marshall Islands Act or the law of any other jurisdiction in which the Partnership is
qualified to do business. 
 Section 13.5        Notice of a Meeting. Notice of a
meeting called pursuant to Section 13.4 shall be given to the Record Holders of the class, classes or series of Units for which a meeting is proposed in writing by mail or other means of written communication in accordance with
Section 17.1 at least 10 days in advance of such meeting. The notice shall be deemed to have been given at the time when deposited in the mail or sent by other means of written communication. 

Section 13.6        Record Date. For purposes of determining the Limited Partners entitled
to notice of or to vote at a meeting of the Limited Partners or to give approvals without a meeting as provided in Section 13.11, the Board of Directors may set a Record Date, which shall not be less than 10 nor more than 60 days before
(a) the date of the meeting (unless such requirement conflicts with any rule, regulation, guideline or requirement of any National Securities Exchange on which the Units are listed or admitted to trading, in which case the rule, regulation,
guideline or requirement of such National Securities Exchange shall govern) or (b) in the event that approvals are sought 

  
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without a meeting, the date by which Limited Partners are requested in writing by the Board of Directors to give such approvals. If the Board of Directors does not set a Record Date, then
(a) the Record Date for determining the Limited Partners entitled to notice of or to vote at a meeting of the Limited Partners shall be the close of business on the day next preceding the day on which notice is given, and (b) the Record
Date for determining the Limited Partners entitled to give approvals without a meeting shall be the date the first written approval is deposited with the Partnership in care of the Board of Directors in accordance with Section 13.11. 

Section 13.7        Adjournment. When a meeting is adjourned to another time or place,
notice need not be given of the adjourned meeting and a new Record Date need not be fixed, if the time and place thereof are announced at the meeting at which the adjournment is taken, unless such adjournment shall be for more than 45 days. At the
adjourned meeting, the Partnership may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 45 days or if a new Record Date is fixed for the adjourned meeting, a notice of the adjourned
meeting shall be given in accordance with this Article XIII. 
 Section 13.8        Waiver
of Notice; Approval of Meeting; Approval of Minutes. The transactions of any meeting of Limited Partners, however called and noticed, and whenever held, shall be as valid as if it had occurred at a meeting duly held after regular call and
notice, if a quorum is present either in person or by proxy. Attendance of a Limited Partner at a meeting shall constitute a waiver of notice of the meeting, except when the Limited Partner attends the meeting for the express purpose of objecting,
at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened; and except that attendance at a meeting is not a waiver of any right to disapprove the consideration of matters required to
be included in the notice of the meeting, but not so included, if the disapproval is expressly made at the meeting. 

Section 13.9        Quorum and Voting. The holders of a majority of the Outstanding Units
of the class, classes or series for which a meeting has been called (including Outstanding Units deemed owned by the General Partner) represented in person or by proxy shall constitute a quorum at a meeting of Limited Partners of such class, classes
or series unless any such action by the Limited Partners requires approval by holders of a greater percentage of such Units, in which case the quorum shall be such greater percentage. At any meeting of the Limited Partners duly called and held in
accordance with this Agreement at which a quorum is present, the act of Limited Partners holding Outstanding Units that in the aggregate represent a majority of the Outstanding Units entitled to vote and be present in person or by proxy at such
meeting shall be deemed to constitute the act of all Limited Partners, unless a greater or different percentage is required with respect to such action under the provisions of this Agreement, in which case the act of the Limited Partners holding
Outstanding Units that in the aggregate represent at least such greater or different percentage shall be required. The Limited Partners present at a duly called or held meeting at which a quorum is present may continue to transact business until
adjournment, notwithstanding the withdrawal of enough Limited Partners to leave less than a quorum, if any action taken (other than adjournment) is approved by the required percentage of Outstanding Units specified in this Agreement (including
Outstanding Units deemed owned by the General Partner). In the absence of a quorum, any meeting of Limited Partners may be adjourned from time to time by the affirmative vote of holders of at least a majority of the Outstanding Units entitled to
vote at such meeting (including Outstanding Units deemed owned by the General Partner) represented either in person or by proxy, but no other business may be transacted, except as provided in Section 13.7. 

Section 13.10        Conduct of a Meeting. The Board of Directors shall have full power
and authority concerning the manner of conducting any meeting of the Limited Partners or solicitation of approvals in writing, including the determination of Persons entitled to vote, the existence of a quorum, the satisfaction of the requirements
of Section 13.4, the conduct of voting, the validity and effect of any proxies and the determination of any controversies, votes or challenges arising in connection with or during the meeting or voting. The Chairman of the Board of Directors
shall serve as chairman of any meeting and shall further designate a Person to take the minutes of any meeting. All minutes shall be kept with the records of the Partnership maintained by the Board of Directors. The Board of Directors may make such
other regulations consistent with applicable law and this Agreement as it may deem advisable concerning the conduct of any meeting of the Limited Partners or solicitation of approvals in writing, including regulations in regard to the appointment of
proxies, the appointment and duties of inspectors of votes and approvals, the submission and examination of proxies and other evidence of the right to vote, and the revocation of approvals in writing. 

  
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 Section 13.11        Action Without a Meeting.
If authorized by the Board of Directors, any action that may be taken at a meeting of the Limited Partners may be taken without a meeting if an approval in writing setting forth the action so taken is signed by Limited Partners owning not less
than the minimum percentage of the Outstanding Units (including Units deemed owned by the General Partner) that would be necessary to authorize or take such action at a meeting at which all the Limited Partners were present and voted (unless such
provision conflicts with any rule, regulation, guideline or requirement of any National Securities Exchange on which the Units are listed or admitted to trading, in which case the rule, regulation, guideline or requirement of such National
Securities Exchange shall govern). Prompt notice of the taking of action without a meeting shall be given to the Limited Partners who have not approved the action in writing. The Board of Directors may specify that any written ballot submitted to
Limited Partners for the purpose of taking any action without a meeting shall be returned to the Partnership within the time period, which shall be not less than 20 days, specified by the Board of Directors. If a ballot returned to the Partnership
does not vote all of the Units held by the Limited Partners, the Partnership shall be deemed to have failed to receive a ballot for the Units that were not voted. If approval of the taking of any action by the Limited Partners is solicited by any
Person other than by or on behalf of the Board of Directors, the written approvals shall have no force and effect unless and until (a) they are deposited with the Partnership in care of the Board of Directors, (b) approvals sufficient to
take the action proposed are dated as of a date not more than 90 days prior to the date sufficient approvals are deposited with the Partnership and (c) an Opinion of Counsel is delivered to the Board of Directors to the effect that the exercise
of such right and the action proposed to be taken with respect to any particular matter (i) will not cause the Limited Partners to be deemed to be taking part in the management and control of the business and affairs of the Partnership so as to
jeopardize the Limited Partners’ limited liability, and (ii) is otherwise permissible under the applicable statutes then governing the rights, duties and liabilities of the Partnership and the Partners. 

Section 13.12        Right to Vote and Related Matters. 

(a)        Only those Record Holders of the Units on the Record Date set pursuant to Section 13.6
(and also subject to the limitations contained in the definition of “Outstanding”) shall be entitled to notice of, and to vote at, a meeting of Limited Partners or to act with respect to matters as to which the holders of the Outstanding
Units have the right to vote or to act. All references in this Agreement to votes of, or other acts that may be taken by, the Outstanding Units shall be deemed to be references to the votes or acts of the Record Holders of such Outstanding Units.

 (b)        With respect to Units that are held for a Person’s account by another Person
(such as a broker, dealer, bank, trust company or clearing corporation, or an agent of any of the foregoing), in whose name such Units are registered, such other Person shall, in exercising the voting rights in respect of such Units on any matter,
and unless the arrangement between such Persons provides otherwise, vote such Units in favor of, and at the direction of, the Person who is the beneficial owner, and the Partnership shall be entitled to assume it is so acting without further
inquiry. The provisions of this Section 13.12(b) (as well as all other provisions of this Agreement) are subject to the provisions of Section 4.3. 

ARTICLE XIV 
 MERGER,
CONSOLIDATION OR CONVERSION 
 Section 14.1        Authority. The Partnership may
merge or consolidate with or into one or more corporations, limited liability companies, statutory trusts or associations, real estate investment trusts, common law trusts or unincorporated businesses, including a partnership (whether general or
limited (including a limited liability partnership)) or convert into any such entity, pursuant to a written agreement of merger or consolidation (“Merger Agreement”) or a written plan of conversion (“Plan of
Conversion”), as the case may be, in accordance with this Article XIV. 

Section 14.2        Procedure for Merger, Consolidation or Conversion. 

(a)        Merger, consolidation or conversion of the Partnership pursuant to this Article XIV
requires the approval of the Board of Directors and the prior consent of the General Partner; provided, however, that, to the fullest extent permitted by law, neither the Board of Directors nor the General Partner shall have a duty or
obligation to consent to any merger, consolidation or conversion of the Partnership and may decline to do so free of any 

  
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fiduciary duty or obligation whatsoever to the Partnership or any Limited Partner and, in declining to consent to a merger, consolidation or conversion, shall not be required to act in good faith
or pursuant to any other standard imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation or at equity. 

(b)        If the Board of Directors and the General Partner shall determine to consent to the merger,
consolidation or conversion, the Board of Directors and the General Partner shall approve the Merger Agreement, which shall set forth: 

(i)        the names and jurisdictions of formation or organization of each of the
business entities proposing to merge or consolidate; 
 (ii)        the name and
jurisdiction of formation or organization of the business entity that is to survive the proposed merger or consolidation (the “Surviving Business Entity”); 

(iii)        the terms and conditions of the proposed merger or consolidation; 

(iv)        the manner and basis of exchanging or converting the equity securities of
each constituent business entity for, or into, cash, property or interests, rights, securities or obligations of the Surviving Business Entity; and (i) if any interests, securities or rights of any constituent business entity are not to be
exchanged or converted solely for, or into, cash, property or interests, rights, securities or obligations of the Surviving Business Entity, the cash, property or interests, rights, securities or obligations of any general or limited partnership,
corporation, trust, limited liability company, unincorporated business or other Person (other than the Surviving Business Entity) which the holders of such interests, securities or rights are to receive in exchange for, or upon conversion of their
interests, securities or rights, and (ii) in the case of securities represented by certificates, upon the surrender of such certificates, which cash, property or interests, rights, securities or obligations of the Surviving Business Entity or
any general or limited partnership, corporation, trust, limited liability company, unincorporated business or other Person (other than the Surviving Business Entity), or evidences thereof, are to be delivered; 

(v)        a statement of any changes in the constituent documents or the adoption of
new constituent documents (the articles or certificate of incorporation, articles of trust, declaration of trust, certificate or agreement of limited partnership or other similar charter or governing document) of the Surviving Business Entity to be
effected by such merger or consolidation; 
 (vi)        the effective time of the
merger, which may be the date of the filing of the certificate of merger pursuant to Section 14.4 or a later date specified in or determinable in accordance with the Merger Agreement (provided, that if the effective time of the merger is
to be later than the date of the filing of such certificate of merger, the effective time shall be fixed at a date or time certain at or prior to the time of the filing of such certificate of merger and stated therein); and 

(vii)        such other provisions with respect to the proposed merger or
consolidation that the Board of Directors and the General Partner determine to be necessary or appropriate. 

(c)        If the Board of Directors and the General Partner shall determine to consent to the
conversion the Board of Directors and the General Partner shall approve the Plan of Conversion, which shall set forth: 

(i)        the name of the converting entity and the converted entity; 

(ii)        a statement that the Partnership is continuing its existence in the
organizational form of the converted entity; 
 (iii)        a statement as to the
type of entity that the converted entity is to be and the state or country under the laws of which the converted entity is to be incorporated, formed or organized; 

  
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 (iv)        the manner and basis of
exchanging or converting the equity securities of each constituent business entity for, or into, cash, property or interests, rights, securities or obligations of the converted entity or another entity, or for the cancellation of such equity
securities; 
 (v)        in an attachment or exhibit, the certificate of limited
partnership of the Partnership; 
 (vi)        in an attachment or exhibit, the
certificate of limited partnership, articles of incorporation, or other organizational documents of the converted entity; 

(vii)        the effective time of the conversion, which may be the date of the filing
of the articles of conversion or a later date specified in or determinable in accordance with the Plan of Conversion (provided, that if the effective time of the conversion is to be later than the date of the filing of such articles of
conversion, the effective time shall be fixed at a date or time certain and stated in such articles of conversion); and 

(viii)        such other provisions with respect to the proposed conversion the Board
of Directors and the General Partner determines to be necessary or appropriate. 

Section 14.3        Approval by Limited Partners of Merger, Consolidation or Conversion.

 (a)        Except as provided in Sections 14.3(d) and 14.3(e), the Board of Directors, upon its
and the General Partner’s approval of the Merger Agreement or the Plan of Conversion, as the case may be, shall direct that the Merger Agreement or the Plan of Conversion and the merger, consolidation or conversion contemplated thereby, as
applicable, be submitted to a vote of Limited Partners, whether at a special meeting or by written consent, in either case in accordance with the requirements of Article XIII. A copy or a summary of the Merger Agreement or the Plan of Conversion, as
the case may be, shall be included in or enclosed with the notice of a special meeting or the written consent. 

(b)        Except as provided in Sections 14.3(d) and 14.3(e), the Merger Agreement or Plan of
Conversion, as the case may be, shall be approved upon receiving the affirmative vote or consent of the holders of a Unit Majority. 

(c)        Except as provided in Sections 14.3(d) and 14.3(e), after such approval by vote or consent
of the Limited Partners, and at any time prior to the filing of the certificate of merger or certificate of conversion pursuant to Section 14.4, the merger, consolidation or conversion may be abandoned pursuant to provisions therefor, if any,
set forth in the Merger Agreement or Plan of Conversion, as the case may be. 

(d)        Notwithstanding anything else contained in this Article XIV or in this Agreement, the Board
of Directors is permitted, without Limited Partner approval, to convert the Partnership or any Group Member into a new limited liability entity, to merge the Partnership or any Group Member into, or convey all of the Partnership’s assets to,
another limited liability entity which shall be newly formed and shall have no assets, liabilities or operations at the time of such conversion, merger or conveyance other than those it receives from the Partnership or other Group Member if
(i) the Board of Directors has received an Opinion of Counsel that the conversion, merger or conveyance, as the case may be, would not result in the loss of the limited liability of any Limited Partner, (ii) the sole purpose of such
conversion, merger or conveyance is to effect a mere change in the legal form of the Partnership into another limited liability entity and (iii) the governing instruments of the new entity provide the Limited Partners, the General Partner and
the Board of Directors with the same rights and obligations as are herein contained. 

(e)        Additionally, notwithstanding anything else contained in this Article XIV or in this
Agreement, the Board of Directors, with the prior consent of the General Partner, is permitted, without Limited Partner approval, to merge or consolidate the Partnership with or into another entity if (i) the Board of Directors has received an
Opinion of Counsel that the merger or consolidation, as the case may be, would not result in the loss of the limited liability of any Limited Partner, (ii) the merger or consolidation would not result in an amendment to this Agreement, other
than any amendments that could be adopted pursuant to Section 13.1, (iii) the Partnership is the Surviving Business Entity in such merger or consolidation, (iv) each Unit outstanding immediately prior to the

  
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effective date of the merger or consolidation is to be an identical Unit of the Partnership after the effective date of the merger or consolidation, and (v) the number of Partnership
Interests to be issued by the Partnership in such merger or consolidation does not exceed 20% of the Partnership Interests Outstanding immediately prior to the effective date of such merger or consolidation. 

Section 14.4        Certificate of Merger or Conversion. Upon the required approval by the
Board of Directors, the General Partner and the Unitholders of a Merger Agreement or Plan of Conversion, as the case may be, a certificate of merger or conversion, as applicable, shall be executed and filed in conformity with the requirements of the
Marshall Islands Act. 
 Section 14.5        Amendment of Partnership Agreement.
Pursuant to Section 20(2) of the Marshall Islands Act, an agreement of merger or consolidation approved in accordance with Section 20(2) of the Marshall Islands Act may (a) effect any amendment to this Agreement or (b) effect the
adoption of a new partnership agreement for a limited partnership if it is the Surviving Business Entity. Any such amendment or adoption made pursuant to this Section 14.5 shall be effective at the effective time or date of the merger or
consolidation. 
 Section 14.6        Effect of Merger, Consolidation or Conversion.

 (a)        At the effective time of the certificate of merger: 

(i)        all of the rights, privileges and powers of each of the business entities
that has merged or consolidated, and all property, real, personal and mixed, and all debts due to any of those business entities and all other things and causes of action belonging to each of those business entities, shall be vested in the Surviving
Business Entity and after the merger or consolidation shall be the property of the Surviving Business Entity to the extent they were of each constituent business entity; 

(ii)        the title to any real property vested by deed or otherwise in any of those
constituent business entities shall not revert and is not in any way impaired because of the merger or consolidation; 

(iii)        all rights of creditors and all liens on or security interests in
property of any of those constituent business entities shall be preserved unimpaired; and 

(iv)        all debts, liabilities and duties of those constituent business entities
shall attach to the Surviving Business Entity and may be enforced against it to the same extent as if the debts, liabilities and duties had been incurred or contracted by it. 

(b)        At the effective time of the certificate of conversion, for all purposes of the laws of the
Marshall Islands: 
 (i)        the Partnership shall continue to exist, without
interruption, but in the organizational form of the converted entity rather than in its prior organizational form; 

(ii)        all rights, title, and interests to all real estate and other property
owned by the Partnership shall remain vested in the converted entity in its new organizational form without reversion or impairment, without further act or deed, and without any transfer or assignment having occurred, but subject to any existing
liens or other encumbrances thereon; 
 (iii)        all liabilities and obligations
of the Partnership shall continue to be liabilities and obligations of the converted entity in its new organizational form without impairment or diminution by reason of the conversion; 

(iv)        all rights of creditors or other parties with respect to or against the
prior interest holders or other owners of the Partnership in their capacities as such in existence as of the effective time of the conversion will continue in existence as to those liabilities and obligations and are enforceable against the
converted entity by such creditors and obligees to the same extent as if the liabilities and obligations had originally been incurred or contracted by the converted entity; 

  
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 (v)        the Partnership Interests that
are to be converted into partnership interests, shares, evidences of ownership, or other rights or securities in the converted entity or cash as provided in the Plan of Conversion shall be so converted, and Partners shall be entitled only to the
rights provided in the Plan of Conversion. 
 ARTICLE XV 

RIGHT TO ACQUIRE LIMITED PARTNER INTERESTS 

Section 15.1        Right to Acquire Limited Partner Interests. 

(a)        Notwithstanding any other provision of this Agreement, if at any time from and after the
Closing Date the General Partner and its Affiliates hold more than 80% of the total Limited Partner Interests of any class or series then Outstanding, the General Partner shall then have the right, which right it may assign and transfer in whole or
in part to the Partnership or any Affiliate of the General Partner, exercisable at its option, to purchase all, but not less than all, of such Limited Partner Interests of such class or series then Outstanding held by Persons other than the General
Partner and its Affiliates, at the greater of (x) the Current Market Price as of the date three days prior to the date that the notice described in Section 15.1(b) is mailed and (y) the highest price paid by the General Partner or any
of its Affiliates for any such Limited Partner Interest of such class or series purchased during the 90-day period preceding the date that the notice described in Section 15.1(b) is mailed. Notwithstanding the foregoing, the repurchase right
described in this Article XV shall not apply to Preferred Units. 
 (b)        If the General
Partner, any Affiliate of the General Partner or the Partnership elects to exercise the right to purchase Limited Partner Interests granted pursuant to Section 15.1(a), the General Partner shall deliver to the Transfer Agent notice of such
election to purchase (the “Notice of Election to Purchase”) and shall cause the Transfer Agent to mail a copy of such Notice of Election to Purchase to the Record Holders of Limited Partner Interests of such class or series (as of a
Record Date selected by the General Partner) at least 10, but not more than 60, days prior to the Purchase Date. Such Notice of Election to Purchase shall also be published for a period of at least three consecutive days in at least two daily
newspapers of general circulation printed in the English language and published in the Borough of Manhattan, New York. The Notice of Election to Purchase shall specify the Purchase Date and the price (determined in accordance with
Section 15.1(a)) at which Limited Partner Interests will be purchased and state that the General Partner, its Affiliate or the Partnership, as the case may be, elects to purchase such Limited Partner Interests, upon surrender of Certificates
representing such Limited Partner Interests in exchange for payment, at such office or offices of the Transfer Agent as the Transfer Agent may specify, or as may be required by any National Securities Exchange on which such Limited Partner Interests
are listed. Any such Notice of Election to Purchase mailed to a Record Holder of Limited Partner Interests at his address as reflected in the records of the Transfer Agent shall be conclusively presumed to have been given regardless of whether the
owner receives such notice. On or prior to the Purchase Date, the General Partner, its Affiliate or the Partnership, as the case may be, shall deposit with the Transfer Agent cash in an amount sufficient to pay the aggregate purchase price of all of
such Limited Partner Interests to be purchased in accordance with this Section 15.1. If the Notice of Election to Purchase shall have been duly given as aforesaid at least 10 days prior to the Purchase Date, and if on or prior to the Purchase
Date the deposit described in the preceding sentence has been made for the benefit of the holders of Limited Partner Interests subject to purchase as provided herein, then from and after the Purchase Date, notwithstanding that any Certificate shall
not have been surrendered for purchase, all rights of the holders of such Limited Partner Interests (including any rights pursuant to Articles IV, V, VI and XII) shall thereupon cease, except the right to receive the applicable purchase price
(determined in accordance with Section 15.1(a)) for Limited Partner Interests therefor, without interest, upon surrender to the Transfer Agent of the Certificates representing such Limited Partner Interests, and such Limited Partner Interests
shall thereupon be deemed to be transferred to the General Partner, its Affiliate or the Partnership, as the case may be, on the record books of the Transfer Agent and the Partnership, and the General Partner or any Affiliate of the General Partner,
or the Partnership, as the case may be, shall be deemed to be the owner of all such Limited Partner Interests from and after the Purchase Date and shall have all rights as the owner of such Limited Partner Interests (including all rights as owner of
such Limited Partner Interests pursuant to Articles IV, V, VI and XII). 
 (c)        At any time
from and after the Purchase Date, a holder of an Outstanding Limited Partner Interest subject to purchase as provided in this Section 15.1 may surrender his Certificate evidencing such Limited Partner

  
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Interest to the Transfer Agent in exchange for payment of the amount described in Section 15.1(a), without interest thereon. 

ARTICLE XVI 
 SERIES A
CUMULATIVE REDEEMABLE PREFERRED UNITS 
 Section 16.1        Designations. On
[●], 2015, the Board of Directors designated and created a series of Preferred Units designated as “[●]% Series A Cumulative Redeemable Preferred Units,” and fixed the preferences, rights, powers and duties of the holders
of the Series A Preferred Units as set forth in this Article XVI. Each Series A Preferred Unit shall be identical in all respects to every other Series A Preferred Unit, except as to the respective dates from which the Series A
Liquidation Preference shall increase or from which Series A Distributions may begin accruing, to the extent such dates may differ. The Series A Preferred Units represent perpetual equity interests in the Partnership and shall not give
rise to a claim by the holder for redemption thereof at a particular date. 

Section 16.2        Units. 

(a)        The authorized number of Series A Preferred Units shall each be unlimited.
Series A Preferred Units that are purchased or otherwise acquired by the Partnership shall be cancelled. 

(b)        The Series A Preferred Units shall be represented by a single Certificate registered
in the name of the Depository or its nominee, and no Series A Holder shall be entitled to receive a Certificate evidencing such applicable Units, unless otherwise required by law or the Depository gives notice of its intention to resign or is
no longer eligible to act as such with respect to such series of Preferred Units and the Partnership shall have not selected a substitute Depository within 60 calendar days thereafter. So long as the Depository shall have been appointed and is
serving with respect to such series of Preferred Units, payments and communications made by the Partnership to Series A Holders shall be made by making payments to, and communicating with, the Depository. 

Section 16.3        Distributions. 

(a)        Distributions on each Series A Preferred Unit shall be cumulative and shall accrue at
the Series A Distribution Rate from the Series A Original Issue Date (or, for any subsequently issued and newly Outstanding Series A Preferred Units, from the Series A Distribution Payment Date immediately preceding the issuance
date of such Units) until such time as the Partnership pays the Series A Distribution or redeems the Series A Preferred Units in full in accordance with Section 16.6 below, whether or not such Series A Distributions shall have been
declared. Series A Holders shall be entitled to receive Series A Distributions from time to time out of any assets of the Partnership legally available for the payment of distributions at the Series A Distribution Rate per Series A
Preferred Unit when, as, and if declared by the Board of Directors. Distributions, to the extent declared by the Board of Directors to be paid by the Partnership in accordance with this Section 16.3, shall be paid quarterly on each
Series A Distribution Payment Date. Distributions shall accumulate in each Series A Distribution Period from and including the preceding Series A Distribution Payment Date (other than the initial Series A Distribution Period,
which shall commence on and include the Series A Original Issue Date), to but excluding the next Series A Distribution Payment Date for such Series A Distribution Period and distributions shall accrue on accumulated Series A
Distributions at the Series A Distribution Rate. If any Series A Distribution Payment Date otherwise would occur on a date that is not a Business Day, declared Series A Distributions shall be paid on the immediately succeeding Business Day
without the accumulation of additional distributions. Series A Distributions shall be payable based on a 360-day year consisting of twelve 30-day months. 

(b)        Not later than 5:00 p.m., New York City time, on each Series A Distribution Payment
Date, the Partnership shall pay those Series A Distributions, if any, that shall have been declared by the Board of Directors to Series A Holders on the Record Date for the applicable Series A Preferred Distribution. The Record Date (the
“Series A Distribution Record Date”) for the payment of any Series A Distributions shall be the fifth Business Day immediately preceding the applicable Series A Distribution Payment Date, except that in the case of
payments of Series A Distributions in arrears, the Series A Distribution Record Date with respect to a Series A Distribution Payment Date shall be such date as may be designated by the Board of Directors in accordance with this
Article XVI. No distribution shall be declared or paid or set apart for payment on any Junior Securities (other than a distribution payable solely in Junior Securities) unless full cumulative Series A Distributions have been or

  
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contemporaneously are being paid or provided for on all Outstanding Series A Preferred Units and any other Parity Securities through the most recent respective Series A Distribution
Payment Dates. Accumulated Series A Distributions in arrears for any past Series A Distribution Period may be declared by the Board of Directors and paid on any date fixed by the Board of Directors, whether or not a Series A Distribution
Payment Date, to Series A Holders on the record date for such payment, which may not be more than 60 days, nor less than 15 days, before such payment date. Subject to the next succeeding sentence, if all accumulated Series A Distributions
in arrears on all Outstanding Series A Preferred Units and any other Parity Securities shall not have been declared and paid, or if sufficient funds for the payment thereof shall not have been set apart, payment of accumulated distributions in
arrears on the Series A Preferred Units and any such Parity Securities shall be made in order of their respective distribution payment dates, commencing with the earliest. If less than all distributions payable with respect to all Series A
Preferred Units and any other Parity Securities are paid, any partial payment shall be made pro rata with respect to the Series A Preferred Units and any such other Parity Securities entitled to a distribution payment at such time in proportion
to the aggregate distribution amounts remaining due in respect of such Series A Preferred Units and such other Parity Securities at such time. Subject to Sections 12.4 and 16.6, Series A Holders shall not be entitled to any distribution,
whether payable in cash, property or stock, in excess of full cumulative Series A Distributions. Except insofar as distributions accrue on the amount of any accumulated and unpaid Series A Distributions as described in Section 16.3(a), no
interest or sum of money in lieu of interest shall be payable in respect of any distribution payment which may be in arrears on the Series A Preferred Units. So long as the Series A Preferred Units are held of record by the nominee of the
Depository, declared Series A Distributions shall be paid to the Depository in same-day funds on each Series A Distribution Payment Date. 

Section 16.4        Liquidation Rights. 

(a)        Upon the occurrence of any Liquidation Event, Series A Holders shall be entitled to
receive out of the assets of the Partnership or proceeds thereof legally available for distribution to the Partners, (i) after satisfaction of all liabilities, if any, to creditors of the Partnership, (ii) after all applicable
distributions of such assets or proceeds being made to or set aside for the holders of any Senior Securities then Outstanding in respect of such Liquidation Event, (iii) concurrently with any applicable distributions of such assets or proceeds
being made to or set aside for holders of any Series A Preferred Units or other Parity Securities then Outstanding in respect of such Liquidation Event and (iv) before any distribution of such assets or proceeds is made to or set aside for the
holders of Common Units and any other classes or series of Junior Securities as to such distribution, a liquidating distribution or payment in full redemption of such Series A Preferred Units in an amount equal to the Series A Liquidation
Preference. For purposes of clarity, upon the occurrence of any Liquidation Event, (x) the holders of then Outstanding Senior Securities shall be entitled to receive the applicable Liquidation Preference on such Senior Securities before any
distribution shall be made with respect to the Series A Preferred Units or any Parity Securities and (y) the Series A Holders shall be entitled to the Series A Liquidation Preference per Series A Preferred Unit in cash,
concurrently with any distribution made to the holders of any Parity Securities and before any distribution shall be made to the holders of Common Units or any other Junior Securities. Series A Holders shall not be entitled to any other amounts from
the Partnership, in their capacity as Series A Holders, after they have received the Series A Liquidation Preference. The payment of the Series A Liquidation Preference shall be a payment in redemption of the Series A Preferred
Units such that, from and after payment of the full Series A Liquidation Preference, any such Series A Preferred Unit shall thereafter be cancelled and no longer be Outstanding. 

(b)        If, in the event of any distribution or payment described in Section 16.4(a) above
where the Partnership’s assets available for distribution to holders of the Outstanding Series A Preferred Units and any other Parity Securities are insufficient to satisfy the applicable Liquidation Preference for such Series A
Preferred Units and Parity Securities, the Partnership’s then remaining assets or proceeds thereof legally available for distribution to shareholders of the Partnership shall be distributed among the holders of Outstanding Series A
Preferred Units and such Parity Securities, as applicable, ratably on the basis of their relative aggregate Liquidation Preferences. To the extent that the Series A Holders receive a partial payment of their Series A Liquidation
Preference, such partial payment shall reduce the Series A Liquidation Preference of their Series A Preferred Units, but only to the extent of such amount paid. 

(c)        After payment of the applicable Liquidation Preference to the holders of the Outstanding
Series A Preferred Units and any other Parity Securities, the Partnership’s remaining assets and funds shall be distributed 

  
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among the holders of the Common Units and any other Junior Securities then Outstanding according to their respective rights and preferences. 

Section 16.5        Voting Rights. 

(a)        Notwithstanding anything to the contrary in this Agreement, the Series A Preferred
Units shall not have any voting rights except as set forth in Section 13.3(d), this Section 16.5 or as otherwise provided by the Marshall Islands Act. 

(b)        In the event that six quarterly Series A Distributions, whether consecutive or not, are in
arrears, the Series A Holders shall have the right, voting as a class together with holders of any other Parity Securities upon which like voting rights have been conferred and are exercisable, at a meeting of the Board of Directors called for
such purpose within 30 days after receipt by the General Partner of a request by Series A Holders holding a majority of the Outstanding Series A Preferred Units, to elect one member of the Board of Directors, and the size of the Board of
Directors shall be increased as needed to accommodate such change; provided, however, that such right of the Series A Holders shall not apply to the election of another director if (i) Series A Holders and holders of Parity Securities upon
which like voting rights have been conferred, voting as a class, have previously elected a member of the Board of Directors and (ii) such director continues then to serve on the Board of Directors. Such right of such Series A Holders to
elect a member of the Board of Directors shall continue until the Partnership pays in full, or declares and sets aside funds for the payment of, all Series A Distributions accumulated and in arrears on the Series A Preferred Units, at which
time such right shall terminate, subject to the revesting of such right in the event of each and every subsequent failure to pay six quarterly Series A Distributions as described above in this Section 16.5(b). Upon any termination of the right
of the Series A Holders and, if applicable, holders of any other Parity Securities to vote as a class for such director, the term of office of the director then in office elected by such Series A Holders and holders voting as a class shall
terminate immediately. Any director elected by the Series A Holders and, if applicable, holders of any other Parity Securities shall be entitled to one vote on any matter before the Board of Directors. 

(c) (i)    Unless the Board of Directors shall have received the affirmative vote or consent of the holders of at least 66
2/3% of the Outstanding Series A Preferred Units, voting as a separate class, neither the General Partner nor the Board of Directors shall adopt any amendment to this Agreement that would have a material adverse effect on the existing terms of
the Series A Preferred Units. 
  (ii)    Unless the Board of Directors shall have received the affirmative
vote or consent of the holders of at least 66 2/3% of the Outstanding Series A Preferred Units voting as a class together with holders of any other Parity Securities upon which like voting rights have been conferred and are exercisable, the
Partnership shall not (x) issue any Parity Securities or Senior Securities if the cumulative dividends payable on Outstanding Series A Preferred Units are in arrears or (y) create or issue any Senior Securities. 

(d)        For any matter described in this Section 16.5 in which the Series A Holders are
entitled to vote as a class (whether separately or together with the holders of any Parity Securities), such Series A Holders shall be entitled to one vote per Series A Preferred Unit. Any Series A Preferred Units held by the
Partnership or any of its subsidiaries or Affiliates shall not be entitled to vote. 

Section 16.6        Optional Redemption. 

The Partnership shall have the right at any time, and from time to time, on or after August 12, 2020 to redeem the Series A Preferred
Units, in whole or in part, from any source of funds legally available for such purpose. Any such redemption shall occur on a date set by the Board of Directors (the “Series A Redemption Date”). 

(a)        The Partnership shall effect any such redemption by paying cash for each Series A
Preferred Unit to be redeemed equal to the Series A Liquidation Preference for such Series A Preferred Unit on such Series A Redemption Date (the “Series A Redemption Price”). So long as the Series A
Preferred Units to be redeemed are held of record by the nominee of the Depository, the Series A Redemption Price shall be paid by the Paying Agent to the Depository on the Series A Redemption Date. 

  
 61 

 (b)        The Partnership shall give notice of any
redemption by mail, postage prepaid, not less than 30 days and not more than 60 days before the scheduled Series A Redemption Date to the Series A Holders (as of 5:00 p.m. New York City time on the Business Day next preceding the day
on which notice is given) of any Series A Preferred Units to be redeemed as such Series A Holders’ names appear on the books of the Transfer Agent and at the address of such Series A Holders shown therein. Such notice
(the “Series A Redemption Notice”) shall state, as applicable: (1) the Series A Redemption Date, (2) the number of Series A Preferred Units to be redeemed and, if less than all Outstanding Series A
Preferred Units are to be redeemed, the number (and the identification) of Units to be redeemed from such Series A Holder, (3) the Series A Redemption Price, (4) the place where the Series A Preferred Units are to be
redeemed and shall be presented and surrendered for payment of the Series A Redemption Price therefor and (5) that distributions on the Units to be redeemed shall cease to accumulate from and after such Series A Redemption Date. 

(c)        If the Partnership elects to redeem less than all of the Outstanding Series A
Preferred Units, the number of Series A Preferred Units to be redeemed shall be determined by the Board of Directors, and such Series A Preferred Units shall be redeemed by such method of selection as the Depository shall determine either
Pro Rata or by lot, with adjustments to avoid redemption of fractional Series A Preferred Units. The aggregate Series A Redemption Price for any such partial redemption of the Outstanding Series A Preferred Units shall be allocated
correspondingly among the redeemed Series A Preferred Units. The Series A Preferred Units not redeemed shall remain Outstanding and entitled to all the rights and preferences provided in this Article XVI. 

(d)        If the Partnership gives or causes to be given a Series A Redemption Notice, the
Partnership shall deposit with the Paying Agent funds, sufficient to redeem the Series A Preferred Units, as to which such Series A Redemption Notice shall have been given, no later than 5:00 p.m. New York City time on the Business Day
immediately preceding the Series A Redemption Date, and shall give the Paying Agent irrevocable instructions and authority to pay the Series A Redemption Price to the Series A Holders to be redeemed upon surrender or deemed surrender
(which shall occur automatically if the Certificate representing such Series A Preferred Units is issued in the name of the Depository or its nominee) of the Certificates therefor as set forth in the Series A Redemption Notice. If the
Series A Redemption Notice shall have been given, from and after the Series A Redemption Date, unless the Partnership defaults in providing funds sufficient for such redemption at the time and place specified for payment pursuant to the
Series A Redemption Notice, all Series A Distributions on such Series A Preferred Units to be redeemed shall cease to accumulate and all rights of holders of such Series A Preferred Units as Limited Partners with respect to such
Series A Preferred Units to be redeemed shall cease, except the right to receive the Series A Redemption Price, and such Series A Preferred Units shall not thereafter be transferred on the books of the Transfer Agent or be deemed to
be Outstanding for any purpose whatsoever. The Partnership shall be entitled to receive from the Paying Agent the interest income, if any, earned on such funds deposited with the Paying Agent (to the extent that such interest income is not required
to pay the Series A Redemption Price of the Series A Preferred Units to be redeemed), and the holders of any Series A Preferred Units so redeemed shall have no claim to any such interest income. Any funds deposited with the Paying
Agent hereunder by the Partnership for any reason, including redemption of Series A Preferred Units, that remain unclaimed or unpaid after two years after the applicable Series A Redemption Date or other payment date, as applicable, shall
be, to the extent permitted by law, repaid to the Partnership upon its written request, after which repayment the Series A Holders entitled to such redemption or other payment shall have recourse only to the Partnership. Notwithstanding any
Series A Redemption Notice, there shall be no redemption of any Series A Preferred Units called for redemption until funds sufficient to pay the full Series A Redemption Price of such Series A Preferred Units shall have been
deposited by the Partnership with the Paying Agent. 
 (e)        Any Series A Preferred Units
that are redeemed or otherwise acquired by the Partnership shall be canceled. If only a portion of the Series A Preferred Units represented by a Certificate shall have been called for redemption, upon surrender of the Certificate to the Paying
Agent (which shall occur automatically if the Certificate representing such Series A Preferred Units is registered in the name of the Depository or its nominee), the Paying Agent shall issue to the Series A Holders a new Certificate (or
adjust the applicable book-entry account) representing the number of Series A Preferred Units represented by the surrendered Certificate that have not been called for redemption. 

(f)        Notwithstanding anything to the contrary in this Article XVI, in the event that full
cumulative distributions on the Series A Preferred Units and any other Parity Securities shall not have been paid or declared and 

  
 62 

 
set apart for payment, none of the Partnership, the General Partner or any Affiliate of the General Partner shall be permitted to repurchase, redeem or otherwise acquire, in whole or in part, any
Series A Preferred Units or other Parity Securities except pursuant to a purchase or exchange offer made on the same terms to all Series A Holders and holders of any other Parity Securities. None of the Partnership, the General Partner or
any Affiliate of the General Partner shall be permitted to redeem, repurchase or otherwise acquire any Common Units or any other Junior Securities unless full cumulative distributions on the Series A Preferred Units and any other Parity
Securities for all prior and the then-ending Series A Distribution Periods shall have been paid or declared and set apart for payment. 

Section 16.7        Rank. 

The Series A Preferred Units shall each be deemed to rank: 

(a)        Senior to (i) the Common Units and (ii) any other class or series of Partnership
Interests established after the Series A Original Issue Date by the Board of Directors, the terms of which class or series do not expressly provide that it is made senior to or on parity with the Series A Preferred Units as to
distributions and distributions upon any Liquidation Event (collectively referred to with the Partnership’s Common Units as “Junior Securities”); 

(b)        On a parity with any other class or series of Partnership Interests established after the
Series A Original Issue Date by the Board of Directors, the terms of which class or series are not expressly subordinated or senior to the Series A Preferred Units as to distributions and distributions upon any Liquidation Event
(collectively referred to as “Parity Securities”); and 
 (c)        Junior to
any class or series of Partnership Interests established after the Series A Original Issue Date by the Board of Directors, the terms of which class or series expressly provide that it ranks senior to the Series A Preferred Units as to
distributions and distributions upon any Liquidation Event (collectively referred to as “Senior Securities”). 
 The
Partnership may issue Junior Securities and, subject to any approvals required by Series A Holders pursuant to Section 16.5(c)(ii), Parity Securities from time to time in one or more classes or series without the consent of the
Series A Holders. The Board of Directors has the authority to determine the preferences, powers, qualifications, limitations, restrictions and special or relative rights or privileges, if any, of any such class or series before the issuance of
any Partnership Interests of such class or series. 
 Section 16.8        No Sinking
Fund. 
 The Series A Preferred Units shall not have the benefit of any sinking fund. 

Section 16.9        Record Holders. 

To the fullest extent permitted by applicable law, the General Partner, Partnership, the Transfer Agent and the Paying Agent may deem and treat
any Series A Holder as the true, lawful and absolute owner of the applicable Series A Preferred Units for all purposes, and neither the General Partner, the Partnership nor the Transfer Agent or the Paying Agent shall be affected by any
notice to the contrary. 
 Section 16.10        Notices. 

All notices or communications in respect of the Series A Preferred Units shall be sufficiently given if given in writing and delivered in
person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Article XVI, this Agreement or by applicable law. 

Section 16.11        Other Rights; Fiduciary Duties. 

  
 63 

 The Series A Preferred Units shall not have any voting powers, preferences or relative,
participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth in this Article XVI or as provided by applicable law. Notwithstanding anything to the contrary in this Agreement, but
subject to Section 7.9(c) and without reference to the definition of “good faith” in Section 7.9(b), neither the General Partner nor any other Indemnitee shall owe any fiduciary duties to Series A Holders, other than the
implied duty of good faith and fair dealing. 
 ARTICLE XVII 

GENERAL PROVISIONS 

Section 17.1        Addresses and Notices. 

(a)        Any notice, demand, request, report or proxy materials required or permitted to be given or
made to a Partner under this Agreement shall be in writing and shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written communication to the Partner at the address described
below. Any notice, payment or report to be given or made to a Partner hereunder shall be deemed conclusively to have been given or made, and the obligation to give such notice or report or to make such payment shall be deemed conclusively to have
been fully satisfied, upon sending of such notice, payment or report to the Record Holder of such Partnership Interests at his address as shown on the records of the Transfer Agent or as otherwise shown on the records of the Partnership, regardless
of any claim of any Person who may have an interest in such Partnership Interests by reason of any assignment or otherwise. An affidavit or certificate of making of any notice, payment or report in accordance with the provisions of this
Section 17.1 executed by a member of the Board of Directors, the General Partner, the Transfer Agent or the mailing organization shall be prima facie evidence of the giving or making of such notice, payment or report. If any notice, payment or
report addressed to a Record Holder at the address of such Record Holder appearing on the books and records of the Transfer Agent or the Partnership is returned by the United States Postal Service marked to indicate that the United States Postal
Service is unable to deliver it, such notice, payment or report and any subsequent notices, payments and reports shall be deemed to have been duly given or made without further mailing (until such time as such Record Holder or another Person
notifies the Transfer Agent or the Partnership of a change in his address) if they are available for the Partner at the principal office of the Partnership for a period of one year from the date of the giving or making of such notice, payment or
report to the other Partners. Any notice to the Partnership shall be deemed given if received by the General Partner or the Board of Directors at the principal office of the Partnership designated pursuant to Section 2.3. The General Partner
and the Board of Directors may rely and shall be protected in relying on any notice or other document from a Partner or other Person if believed by it to be genuine. 

(b)        The terms “in writing,” “written communications,” “written
notice” and words of similar import shall be deemed satisfied under this Agreement by use of e-mail and other forms of electronic communication. 

Section 17.2        Further Action. The parties shall execute and deliver all documents,
provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement. 

Section 17.3        Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors, administrators, successors, legal representatives and permitted assigns. 

Section 17.4        Integration. This Agreement constitutes the entire agreement among the
parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto, including the Prior Agreement. 

Section 17.5        Creditors. None of the provisions of this Agreement shall be for the
benefit of, or shall be enforceable by, any creditor of the Partnership. 

  
 64 

 Section 17.6         Waiver. No failure
by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach of any other covenant,
duty, agreement or condition. 
 Section 17.7         Counterparts. This Agreement
may be executed in counterparts, all of which together shall constitute an agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound
by this Agreement immediately upon affixing its signature hereto or, in the case of a Person acquiring a Limited Partner Interest, pursuant to Section 10.2(a), immediately upon the acquisition of such Limited Partner Interests without execution
hereof. 
 Section 17.8         Applicable Law; Forum, Venue and Jurisdiction. 

(a)         This Agreement shall be construed in accordance with and governed by the laws of The
Republic of the Marshall Islands, without regard to the principles of conflicts of law. 

(b)         Each of the Partners and each Person holding any beneficial interest in the
Partnership (whether through a broker, dealer, bank, trust company or clearing corporation or an agent of any of the foregoing or otherwise): 

(i)         irrevocably agrees that any claims, suits, actions or proceedings
(A) arising out of or relating in any way to this Agreement (including any claims, suits or actions to interpret, apply or enforce the provisions of this Agreement or the duties, obligations or liabilities among Partners or of Partners to the
Partnership, or the rights or powers of, or restrictions on, the Partners or the Partnership), (B) brought in a derivative manner on behalf of the Partnership, (C) asserting a claim of breach of a fiduciary duty owed by any director,
officer, or other employee of the Partnership or the General Partner, or owed by the General Partner, to the Partnership or the Partners, (D) asserting a claim arising pursuant to any provision of the Marshall Islands Act or (E) asserting
a claim governed by the internal affairs doctrine shall be exclusively brought in the Court of Chancery of the State of Delaware, unless otherwise provided for in the Marshall Islands Act, in each case regardless of whether such claims, suits,
actions or proceedings sound in contract, tort, fraud or otherwise, are based on common law, statutory, equitable, legal or other grounds, or are derivative or direct claims; 

(ii)         irrevocably submits to the exclusive jurisdiction of the Court of
Chancery of the State of Delaware, unless otherwise provided for in the Marshall Islands Act, in connection with any such claim, suit, action or proceeding; 

(iii)         agrees not to, and waives any right to, assert in any such claim,
suit, action or proceeding that (A) it is not personally subject to the jurisdiction of the Court of Chancery of the State of Delaware or of any other court to which proceedings in the Court of Chancery of the State of Delaware may be appealed,
(B) such claim, suit, action or proceeding is brought in an inconvenient forum, or (C) the venue of such claim, suit, action or proceeding is improper; 

(iv)         expressly waives any requirement for the posting of a bond by a
party bringing such claim, suit, action or proceeding; and 

(v)         consents to process being served in any such claim, suit, action or
proceeding by mailing, certified mail, return receipt requested, a copy thereof to such party at the address in effect for notices hereunder, and agrees that such services shall constitute good and sufficient service of process and notice thereof;
provided, nothing in clause (v) hereof shall affect or limit any right to serve process in any other manner permitted by law. 

Section 17.9         Invalidity of Provisions. If any provision or part of a
provision of this Agreement is or becomes for any reason, invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions and part thereof contained herein shall not be affected thereby and
this Agreement shall, to the fullest extent permitted by law, be reformed and construed as if such invalid, illegal or unenforceable provision, 

  
 65 

 
or part of a provision, had never been contained herein, and such provision or part reformed so that it would be valid, legal and enforceable to the maximum extent possible. 

Section 17.10         Consent of Partners. Each Partner hereby expressly consents and
agrees that, whenever in this Agreement it is specified that an action may be taken upon the affirmative vote or consent of less than all of the Partners (including any amendment to this Agreement), such action may be so taken upon the concurrence
of less than all of the Partners and each Partner shall be bound by the results of such action (including any amendment to this Agreement). 

Section 17.11         Facsimile Signatures. The use of facsimile signatures affixed
in the name and on behalf of the transfer agent and registrar of the Partnership on certificates representing Common Units and Preferred Units is expressly permitted by this Agreement. 

Section 17.12         Third-Party Beneficiaries. Each Partner agrees that any
Indemnitee shall be entitled to assert rights and remedies hereunder as a third-party beneficiary hereto with respect to those provisions of this Agreement affording a right, benefit or privilege to such Indemnitee. 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 66 

 IN WITNESS WHEREOF, the parties hereto have executed this Third Amended and Restated Agreement of
Limited Partnership as of the date first written above. 
  

			
	GENERAL PARTNER:
	
	Dynagas GP LLC
		
	By:        		  

			Name:
			Title:
	
	LIMITED PARTNERS:
	
	All Limited Partners now and hereafter admitted as Limited Partners of the Partnership, pursuant to authority now and hereafter executed in favor of, and granted and delivered to, the Board of Directors pursuant to
Section 13.1 of this Partnership Agreement.
		
	By:		  

			Name:
			Title:

  
  

  
 Signature Page to Third
Amended and Restated Agreement of Limited Partnership 

 EXHIBIT A 

to the Third Amended and Restated Agreement of Limited Partnership of 

DYNAGAS LNG PARTNERS LP 

Certificate Evidencing Common Units 

Representing Limited Partner Interests in 

DYNAGAS LNG PARTNERS LP 
  

			
	
No.                        
     
		                     Common Units

 In accordance with Section 4.1 of the Third Amended and Restated Agreement of Limited Partnership of
Dynagas LNG Partners LP, as amended, supplemented or restated from time to time (the “Partnership Agreement”), Dynagas LNG Partners LP, a Marshall Islands limited partnership (the “Partnership”), hereby certifies
that (the “Holder”) is the registered owner of the above designated number of Common Units representing limited partner interests in the Partnership (the “Common Units”) transferable on the books of the Partnership,
in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. The rights, preferences and limitations of the Common Units are set forth in, and this Certificate and the Common Units represented hereby are issued and
shall in all respects be subject to the terms and provisions of, the Partnership Agreement. Copies of the Partnership Agreement are on file at, and will be furnished without charge on delivery of written request to the Partnership at, the principal
executive office of the Partnership located at 23, Rue Basse, 98000 Monaco. Capitalized terms used herein but not defined shall have the meanings given them in the Partnership Agreement. 

The Holder, by accepting this Certificate, is deemed to have (i) requested admission as, and agreed to become, a Limited Partner and to
have agreed to comply with and be bound by and to have executed the Partnership Agreement, (ii) represented and warranted that the Holder has all right, power and authority and, if an individual, the capacity necessary to enter into the
Partnership Agreement and (iii) made the waivers and given the consents and approvals contained in the Partnership Agreement. 
 This
Certificate shall not be valid for any purpose unless it has been countersigned and registered by the Transfer Agent and Registrar. This Certificate shall be governed by and construed in accordance with the laws of the Marshall Islands. 

Dated: 
  

							
	Countersigned and Registered by:		DYNAGAS LNG PARTNERS LP
			
			By:		
				
	  
						  

	as Transfer Agent and Registrar 						  Title:
				
	By:				By:		
				
	                                      
                                         
                   						  

	      Authorized Signature						  Secretary

 EXHIBIT B 

to the Third Amended and Restated Agreement of Limited Partnership of 

DYNAGAS LNG PARTNERS LP 

Certificate Evidencing Series A Cumulative Redeemable Preferred Units 

Representing Limited Partner Interests in 

DYNAGAS LNG PARTNERS LP 
  

			
	
No.                        
     
		                     Common Units

 In accordance with Section 4.1 of the Third Amended and Restated Agreement of Limited Partnership of
Dynagas LNG Partners LP, as amended, supplemented or restated from time to time (the “Partnership Agreement”), Dynagas LNG Partners LP, a Marshall Islands limited partnership (the “Partnership”), hereby certifies
that (the “Holder”) is the registered owner [●]% Series A Cumulative Redeemable Preferred Units representing limited partner interests in the Partnership (the “Series A Preferred Units”) transferable on the
books of the Partnership, in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. The rights, preferences and limitations of the Series A Preferred Units are set forth in, and this Certificate and the Series A
Preferred Units represented hereby are issued and shall in all respects be subject to the terms and provisions of, the Partnership Agreement. Copies of the Partnership Agreement are on file at, and will be furnished without charge on delivery of
written request to the Partnership at, the principal executive office of the Partnership located 23, Rue Basse, 98000 Monaco. Capitalized terms used herein but not defined shall have the meanings given them in the Partnership Agreement. 

The Holder, by accepting this Certificate, is deemed to have (i) requested admission as, and agreed to become, a Limited Partner and to
have agreed to comply with and be bound by and to have executed the Partnership Agreement, (ii) represented and warranted that the Holder has all right, power and authority and, if an individual, the capacity necessary to enter into the
Partnership Agreement and (iii) made the waivers and given the consents and approvals contained in the Partnership Agreement. 
 This
Certificate shall not be valid for any purpose unless it has been countersigned and registered by the Transfer Agent and Registrar. This Certificate shall be governed by and construed in accordance with the laws of the Marshall Islands. 

Dated: 
  

							
	Countersigned and Registered by:		DYNAGAS LNG PARTNERS LP
			
			By:		
				
	  
						  

	as Transfer Agent and Registrar 						  Title:
				
	By:				By:		
				
	                                      
                                         
                   						  

	      Authorized Signature						  SecretaryEX-10.1

 Exhibit 10.1 

STEPAN COMPANY 
  

 

NOTE PURCHASE AGREEMENT 

 
  

DATED AS OF JULY 10, 2015 

Issuance of 
 $100,000,000 3.95%
Senior Notes, 
 due July 10, 2027 

 TABLE OF CONTENTS 

 

							
	SECTION	    	HEADING	  	PAGE	 
		
	SECTION 1. AUTHORIZATION OF NOTES	  	 	1	  
		
	SECTION 2. SALE AND PURCHASE OF NOTES	  	 	1	  
			
	 Section 2.1.
	    	 Notes
	  	 	1	  
	 Section 2.2.
	    	 Subsidiary Guaranty
	  	 	1	  
		
	SECTION 3. CLOSING DATE AND FUNDING DATE	  	 	2	  
		
	SECTION 4. CONDITIONS TO CLOSING AND FUNDING	  	 	2	  
			
	 Section 4.1.
	    	 Representations and Warranties
	  	 	2	  
	 Section 4.2.
	    	 Performance; No Default
	  	 	2	  
	 Section 4.3.
	    	 Compliance Certificates
	  	 	3	  
	 Section 4.4.
	    	 Opinions of Counsel
	  	 	3	  
	 Section 4.5.
	    	 Purchase Permitted By Applicable Law, Etc
	  	 	3	  
	 Section 4.6.
	    	 Sale of Other Notes
	  	 	4	  
	 Section 4.7.
	    	 Payment of Special Counsel Fees
	  	 	4	  
	 Section 4.8.
	    	 Private Placement Number
	  	 	4	  
	 Section 4.9.
	    	 Changes in Corporate Structure
	  	 	4	  
	 Section 4.10.
	    	 Funding Instructions
	  	 	4	  
	 Section 4.11.
	    	 Proceedings and Documents
	  	 	4	  
	 Section 4.12.
	    	 Subsidiary Guaranty
	  	 	4	  
		
	SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	 	5	  
			
	 Section 5.1.
	    	 Organization; Power and Authority
	  	 	5	  
	 Section 5.2.
	    	 Authorization, Etc
	  	 	5	  
	 Section 5.3.
	    	 Disclosure
	  	 	5	  
	 Section 5.4.
	    	 Organization and Ownership of Shares of Subsidiaries; Affiliates
	  	 	6	  
	 Section 5.5.
	    	 Financial Statements; Material Liabilities
	  	 	6	  
	 Section 5.6.
	    	 Compliance with Laws, Other Instruments, Etc
	  	 	6	  
	 Section 5.7.
	    	 Governmental Authorizations, Etc
	  	 	7	  
	 Section 5.8.
	    	 Litigation; Observance of Agreements, Statutes and Orders
	  	 	7	  
	 Section 5.9.
	    	 Taxes
	  	 	7	  
	 Section 5.10.
	    	 Title to Property; Leases
	  	 	7	  
	 Section 5.11.
	    	 Licenses, Permits, Etc
	  	 	8	  
	 Section 5.12.
	    	 Compliance with ERISA
	  	 	8	  
	 Section 5.13.
	    	 Private Offering by the Company
	  	 	9	  
	 Section 5.14.
	    	 Use of Proceeds; Margin Regulations
	  	 	9	  
	 Section 5.15.
	    	 Existing Debt; Future Liens
	  	 	9	  
	 Section 5.16.
	    	 Foreign Assets Control Regulations, Etc
	  	 	10	  

  
 -i- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
	 Section 5.17.
		 Status under Certain Statutes
		 	12	  
	 Section 5.18.
		 Environmental Matters
		 	12	  
	 Section 5.19.
		 Notes Rank Pari Passu
		 	12	  
		
	SECTION 6. REPRESENTATIONS OF THE PURCHASER		 	12	  
			
	 Section 6.1.
		 Purchase for Investment
		 	12	  
	 Section 6.2.
		 Accredited Investor
		 	13	  
	 Section 6.3.
		 Source of Funds
		 	13	  
		
	SECTION 7. INFORMATION AS TO COMPANY		 	15	  
			
	 Section 7.1.
		 Financial and Business Information
		 	15	  
	 Section 7.2.
		 Officer’s Certificate
		 	17	  
	 Section 7.3.
		 Visitation
		 	18	  
	 Section 7.4.
		 Electronic Delivery
		 	18	  
		
	SECTION 8. PAYMENT OF THE NOTES		 	19	  
			
	 Section 8.1.
		 Required Prepayments
		 	19	  
	 Section 8.2.
		 Optional Prepayments with Make-Whole Amount
		 	19	  
	 Section 8.3.
		 Allocation of Partial Prepayments
		 	20	  
	 Section 8.4.
		 Maturity; Surrender, Etc.
		 	20	  
	 Section 8.5.
		 Purchase of Notes
		 	20	  
	 Section 8.6.
		 Make-Whole Amount
		 	20	  
	 Section 8.7.
		 Change in Control
		 	22	  
		
	SECTION 9. AFFIRMATIVE COVENANTS		 	24	  
			
	 Section 9.1.
		 Compliance with Law
		 	24	  
	 Section 9.2.
		 Insurance
		 	25	  
	 Section 9.3.
		 Maintenance of Properties
		 	25	  
	 Section 9.4.
		 Payment of Taxes and Claims
		 	25	  
	 Section 9.5.
		 Corporate Existence, Etc
		 	25	  
	 Section 9.6.
		 Designation of Subsidiaries
		 	26	  
	 Section 9.7.
		 Notes to Rank Pari Passu
		 	26	  
	 Section 9.8.
		 Additional Subsidiary Guarantors
		 	26	  
	 Section 9.6.
		 Books and Records
		 	27	  
		
	SECTION 10. NEGATIVE COVENANTS		 	27	  
			
	 Section 10.1.
		 Consolidated Net Worth
		 	27	  
	 Section 10.2.
		 Consolidated Debt to Consolidated Total Capitalization
		 	27	  
	 Section 10.3.
		 Interest Coverage Ratio
		 	27	  
	 Section 10.4.
		 Priority Debt
		 	27	  
	 Section 10.5.
		 Limitation on Liens
		 	27	  
	 Section 10.6.
		 Sales of Asset
		 	30	  
	 Section 10.7.
		 Merger and Consolidation
		 	30	  
	 Section 10.8.
		 Restrictions on Investments
		 	31	  

  
 -ii- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
	 Section 10.9.
		 Transactions with Affiliates
		 	31	  
	 Section 10.10.
		 Terrorism Sanctions Regulations
		 	32	  
	 Section 10.11.
		 Lien Restrictions
		 	32	  
		
	SECTION 11. EVENTS OF DEFAULT		 	32	  
		
	SECTION 12. REMEDIES ON DEFAULT, ETC		 	35	  
			
	 Section 12.1.
		 Acceleration
		 	35	  
	 Section 12.2.
		 Other Remedies
		 	35	  
	 Section 12.3.
		 Rescission
		 	35	  
	 Section 12.4.
		 No Waivers or Election of Remedies, Expenses, Etc
		 	36	  
		
	SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES		 	36	  
			
	 Section 13.1.
		 Registration of Notes
		 	36	  
	 Section 13.2.
		 Transfer and Exchange of Notes
		 	36	  
	 Section 13.3.
		 Replacement of Notes
		 	37	  
	 Section 13.4.
		 Prohibition on Transfer to a Competitor
		 	37	  
		
	SECTION 14. PAYMENTS ON NOTES		 	38	  
			
	 Section 14.1.
		 Place of Payment
		 	38	  
	 Section 14.2.
		 Home Office Payment
		 	38	  
		
	SECTION 15. EXPENSES, ETC		 	38	  
			
	 Section 15.1.
		 Transaction Expenses
		 	38	  
	 Section 15.2.
		 Survival
		 	39	  
		
	SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT		 	39	  
		
	SECTION 17. AMENDMENT AND WAIVER		 	39	  
			
	 Section 17.1.
		 Requirements
		 	39	  
	 Section 17.2.
		 Solicitation of Holders of Notes
		 	40	  
	 Section 17.3.
		 Binding Effect, etc
		 	40	  
	 Section 17.4.
		 Notes Held by Company, etc
		 	41	  
		
	SECTION 18. NOTICES		 	41	  
		
	SECTION 19. REPRODUCTION OF DOCUMENTS		 	41	  
		
	SECTION 20. CONFIDENTIAL INFORMATION		 	42	  
		
	SECTION 21. SUBSTITUTION OF PURCHASER		 	43	  
		
	SECTION 22. MISCELLANEOUS		 	43	  

  
 -iii- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			
	 Section 22.1.
		 Successors and Assigns
		 	43	  
	 Section 22.2.
		 Payments Due on Non-Business Days
		 	43	  
	 Section 22.3.
		 Accounting Terms
		 	43	  
	 Section 22.4.
		 Severability
		 	44	  
	 Section 22.5.
		 Construction
		 	44	  
	 Section 22.6.
		 Counterparts
		 	44	  
	 Section 22.7.
		 Governing Law
		 	44	  
	 Section 22.8.
		 Jurisdiction and Process; Waiver of Jury Trial
		 	44	  

  
 -iv- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

					
	SCHEDULE A		—		INFORMATION RELATING TO PURCHASERS
			
	SCHEDULE B		—		DEFINED TERMS
			
	SCHEDULE 5.4		—		Subsidiaries of the Company, Ownership of Subsidiary Stock, Affiliates
			
	SCHEDULE 5.5		—		Financial Statements
			
	SCHEDULE 5.11		—		Licenses, Permits, Etc.
			
	SCHEDULE 5.15		—		Existing Debt
			
	SCHEDULE 10.5		—		Existing Liens
			
	EXHIBIT 1		—		Form of 3.95% Senior Notes due July 10, 2027
			
	EXHIBIT 2.2		—		Form of Subsidiary Guaranty
			
	EXHIBIT 4.4(a)		—		Form of Opinion of Deputy General Counsel to the Company
			
	EXHIBIT 4.4(b)		—		Form of Opinion of Special Counsel to the Company
			
	EXHIBIT 4.4(c)		—		Form of Opinion of Special Counsel to the Purchasers

  
 -v- 

 STEPAN COMPANY 

EDENS AND WINNETKA ROAD 

NORTHFIELD, ILLINOIS 60093 

$100,000,000 3.95% SENIOR NOTES, 

DUE JULY 10, 2027 

Dated as of 
 July 10, 2015 

TO THE PURCHASERS LISTED IN 

THE ATTACHED SCHEDULE A: 

Ladies and Gentlemen: 
 STEPAN
COMPANY, a Delaware corporation (together with any successor thereto that becomes a party hereto pursuant to Section 10.7, the “Company”), agrees with the Purchasers listed in the attached Schedule A (the
“Purchasers”) to this Note Purchase Agreement (this “Agreement”) as follows: 
 SECTION 1.
AUTHORIZATION OF NOTES. 
 The Company will authorize the issue and sale of $100,000,000
aggregate principal amount of its 3.95% Senior Notes due July 10, 2027 (as amended, restated or otherwise modified from time to time pursuant to Section 17 and including any such notes issued in substitution therefor pursuant to
Section 13, the “Notes”). The Notes shall be substantially in the form set out in Exhibit 1. Certain capitalized and other terms used in this Agreement are defined in Schedule B. References to a “Schedule” are
references to a Schedule attached to this Agreement unless otherwise specified. References to a “Section” are references to a Section of this Agreement unless otherwise specified. 

SECTION 2. SALE AND PURCHASE OF NOTES. 

Section 2.1. Notes. Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and
each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount
thereof. The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder. 

Section 2.2. Subsidiary Guaranty. The payment by the Company of all amounts due with respect to the Notes and the performance by
the Company of its obligations under this Agreement will be absolutely and unconditionally guaranteed by the Subsidiary Guarantor(s) pursuant to the Subsidiary Guaranty Agreement dated as of even date herewith, which shall be substantially in the
form of Exhibit 2.2 attached hereto, and otherwise in accordance with the provisions of Section 9.8 hereof (the “Subsidiary Guaranty”). 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

SECTION 3. CLOSING. 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Chapman and Cutler LLP, 111 West Monroe
Street, Chicago, Illinois 60603 on July 10, 2015 at a closing (the “Closing”) or on such other Business Day thereafter as may be agreed upon by the Company and the Purchasers. On the Closing Date, the Company will deliver to
each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least $100,000 as such Purchaser may request) dated the Closing Date and registered in such
Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately
available funds for the account of the Company to Account Number 5156998, at JPMorgan Chase Bank, N.A., Chicago, Illinois, ABA Number 071-000-013, in the Account Name of “Stepan Company.” If at the Closing the Company shall fail to tender
such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all
further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of any of the conditions specified in Section 4 not having been fulfilled to such Purchaser’s satisfaction or such failure by
the Company to tender such Notes. 
 SECTION 4. CONDITIONS TO CLOSING. 

Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser on the Closing Date is subject to the
fulfillment to such Purchaser’s satisfaction, prior to or at the Closing Date, of the following conditions: 
 Section 4.1.
Representations and Warranties. 
 (a) Representations and Warranties of the Company. The representations and warranties of the
Company in this Agreement shall be correct when made and at the time of the Closing. 
 (b) Representations and Warranties of the
Subsidiary Guarantor. The representations and warranties of the Subsidiary Guarantor in the Subsidiary Guaranty shall be correct when made and at the time of the Closing. 

Section 4.2. Performance; No Default. The Company and each Subsidiary Guarantor shall have performed and complied with all
agreements and conditions contained in this Agreement and the Subsidiary Guaranty required to be performed or complied with by the Company and each such Subsidiary Guarantor prior to or at the Closing, and after giving effect to the issue and sale
of the Notes (and the application of the proceeds thereof as contemplated by 

  
 -2- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Section 5.14), no Default or Event of Default shall have occurred and be continuing. Neither the Company nor any Subsidiary shall have entered into any transaction since the date of the
Memorandum that would have been prohibited by Section 10 hereof had such Sections applied since such date. 
 Section 4.3.
Compliance Certificates. 
 (a) Officer’s Certificate of the Company. The Company shall have delivered to such Purchaser an
Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled. 

(b) Secretary’s Certificate of the Company. The Company shall have delivered to such Purchaser a certificate, dated the Closing
Date, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement. 

(c) Officer’s Certificate of the Subsidiary Guarantor. The Subsidiary Guarantor shall have delivered to such Purchaser an
Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1(b), 4.2 and 4.9 have been fulfilled. 

(d) Secretary’s Certificate of the Subsidiary Guarantor. The Subsidiary Guarantor shall have delivered to such Purchaser a
certificate, dated the Closing Date, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Subsidiary Guaranty. 

Section 4.4. Opinions of Counsel. Such Purchaser shall have received opinions in form and substance satisfactory to such
Purchaser, dated the Closing Date (a) from Kathleen O. Sherlock, Deputy General Counsel and Assistant Secretary of the Company, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions
contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers), (b) from Jones Day, special counsel for the Company, covering the matters set
forth in Exhibit 4.4(b) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the
Purchasers), and (c) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(c) and covering such other matters incident to such
transactions as such Purchaser may reasonably request. 
 Section 4.5. Purchase Permitted By Applicable Law, Etc. On the Closing
Date, such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance
Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the
Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty 

  
 -3- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If requested by such Purchaser, such Purchaser shall have
received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted. 

Section 4.6. Sale of Other Notes. Contemporaneously on the Closing Date the Company shall sell to each other Purchaser and each
other Purchaser shall purchase the Notes to be purchased by it at the Closing Date as specified in Schedule A. 
 Section 4.7.
Payment of Special Counsel Fees. Without limiting the provisions of Section 15.1, the Company shall have paid on or before the Closing Date, the reasonable fees, reasonable charges and reasonable disbursements of the Purchasers’
special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing Date. 

Section 4.8. Private Placement Number. A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau
(in cooperation with the SVO) shall have been obtained for the Notes. 
 Section 4.9. Changes in Corporate Structure. The
Company shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following
the date of the most recent financial statements referred to in Schedule 5.5. 
 Section 4.10. Closing Instructions. At
least three Business Days prior to the Closing Date, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the
name and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii) the account name and number into which the purchase price for the Notes is to be deposited. 

Section 4.11. Proceedings and Documents. All corporate and other organizational proceedings in connection with the transactions
contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart
originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request. 

Section 4.12. Subsidiary Guaranty. The Subsidiary Guaranty shall have been duly authorized, executed and delivered by Stepan
Specialty Products, LLC, shall constitute the legal, valid and binding contract and agreement of such Subsidiary Guarantor and such Purchaser shall have received a true, correct and complete copy thereof. 

  
 -4- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE
COMPANY. 
 The Company represents and warrants to each Purchaser that: 

Section 5.1. Organization; Power and Authority. The Company is a corporation duly organized, validly existing and in good standing
under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure
to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to own or hold under lease the properties it purports to
own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof. 

Section 5.2. Authorization, Etc. This Agreement and the Notes have been duly authorized by all necessary corporate action on the
part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each such Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law). 
 Section 5.3. Disclosure. The Company,
through its agent, Merrill Lynch, Pierce, Fenner & Smith Incorporated, has delivered to you and each other Purchaser a copy of a Private Placement Memorandum, dated April, 2015 (the “Memorandum”), relating to the
transactions contemplated hereby. The Memorandum fairly describes, in all material respects, the general nature of the business and principal properties of the Company and its Restricted Subsidiaries. This Agreement, the Memorandum, the documents,
certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby, the financial statements listed in Schedule 5.5 and the Company’s Forms 10-K and 10-Q
heretofore filed with the Securities and Exchange Commission, in each case, delivered to the Purchasers (or deemed to be delivered to the Purchasers in the case of the Company’s Forms 10-K and 10-Q) prior to May 8, 2015 (this
Agreement, the Memorandum and such documents, certificates or other writings and such financial statements being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a
material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Disclosure Documents, since December 31, 2014, there
has been no change in the financial condition, operations, business or properties of the Company or any of its Restricted Subsidiaries except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse
Effect. There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents. 

  
 -5- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Section 5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates. (a) Schedule 5.4 contains (except as noted
therein) complete and correct lists (i) of the Company’s Restricted and Unrestricted Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class
of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, (ii) of the Company’s Affiliates, other than Subsidiaries, and (iii) of the Company’s directors and senior officers.

 (b) All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being
owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4). 

(c) Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority
to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact. 

(d) No Subsidiary is a party to, or otherwise subject to, any legal, regulatory or contractual restriction (other than this Agreement, the
agreements listed on Schedule 5.4 and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the
Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary. 

Section 5.5. Financial Statements; Material Liabilities. The Company has delivered to each Purchaser copies of the financial
statements of the Company and its Subsidiaries listed on Schedule 5.5. All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the
Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently
applied throughout the periods involved except (a) as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments), and (b) as specifically disclosed in writing by the Company in
its public filings with the Securities and Exchange Commission. The Company and its Subsidiaries do not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents. 

Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery and performance by the Company of this
Agreement and the Notes will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of
trust, 

  
 -6- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

loan, purchase or credit agreement, lease, corporate charter or by-laws, shareholders agreement (if any) or any other agreement or instrument to which the Company or any Subsidiary is bound or by
which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to the Company or any Subsidiary, or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary. 

Section 5.7. Governmental Authorizations, Etc. No consent, approval or authorization of, or registration, filing or declaration
with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes. 

Section 5.8. Litigation; Observance of Agreements, Statutes and Orders. (a) There are no actions, suits, investigations or
proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Restricted Subsidiary or any property of the Company or any Restricted Subsidiary in any court or before any arbitrator of any kind or before
or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 

(b) Neither the Company nor any Restricted Subsidiary is (i) in default under any agreement or instrument to which it is a party or by
which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority
(including, without limitation, Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.16), which default or violation could, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. 
 Section 5.9. Taxes. The Company and its Subsidiaries have filed all tax returns that are
required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which is not individually or in the aggregate Material or (b) the amount, applicability or validity of
which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP. The Company knows of no basis for any
other tax or assessment that would reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of federal, state or other taxes for all fiscal periods are
adequate. The federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year
ended December 31, 2010. 
 Section 5.10. Title to Property; Leases. The Company and its Restricted Subsidiaries have good
and sufficient title, leasehold or other interest to their respective properties which the 

  
 -7- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Company and its Restricted Subsidiaries own or purport to own that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet
referred to in Section 5.5 or purported to have been acquired by the Company or any Restricted Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens
prohibited by this Agreement. All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects. 

Section 5.11. Licenses, Permits, Etc. Except as disclosed in Schedule 5.11, 

(a) the Company and its Restricted Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents,
copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others; 

(b) to the best knowledge of the Company, no product of the Company or any of its Restricted Subsidiaries infringes in any
Material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person, except for any such infringement which would not reasonably be
expected to have a Material Adverse Effect; and 
 (c) to the best knowledge of the Company, there is no Material violation
by any Person of any right of the Company or any of its Restricted Subsidiaries with respect to any patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Restricted
Subsidiaries, except violations which would not reasonably be expected to have a Material Adverse Effect. 
 Section 5.12.
Compliance with ERISA. (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and would not reasonably be
expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans
(as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of
any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code or
federal law or section 4068 of ERISA or by the granting of a security interest in connection with the amendment of a Plan, other than such liabilities or Liens as would not be individually or in the aggregate reasonably likely to have a
Material Adverse Effect. 
 (b) The Unfunded Liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end
of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed $10,000,000 in the aggregate for all Plans. 

  
 -8- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

(c) The Company and its ERISA Affiliates have not incurred any Unfunded Liabilities in respect of Multiemployer Plans that individually or in
the aggregate are Material. 
 (d) The expected postretirement benefit obligation (determined as of the last day of the Company’s most
recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715-60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the
Company and its Subsidiaries is not Material. 
 (e) The execution and delivery of this Agreement and the issuance and sale of the Notes
hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax would be imposed pursuant to section 4975(c)(1)(A)-(D) of the
Code. The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.3 as to the sources of the
funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser. 
 Section 5.13. Private Offering by the
Company. Neither the Company nor anyone acting on its behalf has offered the Notes or any similar Securities for sale to, or solicited any offer to buy the Notes or any similar Securities from, or otherwise approached or negotiated in respect
thereof with, any Person other than the Purchasers and not more than 35 other Institutional Investors, each of which has been offered the Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will
take, any action that would subject the issuance or sale of the Notes to the registration requirements of section 5 of the Securities Act or to the registration requirements of any Securities or blue sky laws of any applicable jurisdiction. 

Section 5.14. Use of Proceeds; Margin Regulations. The Company will apply the proceeds of the sale of the Notes to refinance
existing Debt and for general corporate purposes of the Company. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of
Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 5% of the value of the consolidated assets of the
Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets. As used in this Section, the terms “margin stock” and “purpose of
buying or carrying” shall have the meanings assigned to them in said Regulation U. 
 Section 5.15. Existing Debt;
Future Liens. (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Debt of the Company and its Restricted Subsidiaries as of May 31, 2015 (including descriptions of the obligors
and obligees, principal amounts outstanding, any collateral therefor and any Guaranties thereof), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments

  
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or maturities of the Debt of the Company or its Restricted Subsidiaries. Neither the Company nor any Restricted Subsidiary is in default and no waiver of default is currently in effect, in the
payment of any principal or interest on any Debt of the Company or such Restricted Subsidiary, and no event or condition exists with respect to any Debt of the Company or any Restricted Subsidiary, that would permit (or that with notice or the lapse
of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly scheduled dates of payment. 

(b) Except as disclosed in Schedule 5.15, neither the Company nor any Restricted Subsidiary has agreed or consented to cause or permit
any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Debt or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter
acquired, to be subject to a Lien that secures Debt. 
 (c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to
any provision contained in, any instrument evidencing Debt of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount
of, or otherwise imposes restrictions on the incurring of, Debt of the Company, except the agreements specifically identified in Schedule 5.15. 

Section 5.16. Foreign Assets Control Regulations, Etc. (a) Neither the Company nor any Controlled Entity is (i) a Person
whose name appears on the list of Specially Designated Nationals and Blocked Persons published by the Office of Foreign Assets Control, United States Department of the Treasury (“OFAC”) (an “OFAC Listed Person”)
(ii) an agent, department, or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any Person, entity, organization, foreign country
or regime that is subject to any OFAC Sanctions Program, or (iii) otherwise blocked, subject to sanctions under or engaged in any activity in violation of other United States economic sanctions, including but not limited to, the Trading with
the Enemy Act, the International Emergency Economic Powers Act, the Comprehensive Iran Sanctions, Accountability and Divestment Act (“CISADA”) or any similar law or regulation with respect to Iran or any other country, the Sudan
Accountability and Divestment Act, any OFAC Sanctions Program, or any economic sanctions regulations administered and enforced by the United States or any enabling legislation or executive order relating to any of the foregoing (collectively,
“U.S. Economic Sanctions”) (each OFAC Listed Person and each other Person, entity, organization and government of a country described in clause (i), clause (ii) or clause (iii), a “Blocked
Person”). Neither the Company nor any Controlled Entity has been notified that its name appears or may in the future appear on a state list of Persons that engage in investment or other commercial activities in Iran or any other country
that is subject to U.S. Economic Sanctions. 
 (b) No part of the proceeds from the sale of the Notes hereunder constitutes or will
constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (i) in connection with any investment in, or any transactions or dealings with, any Blocked
Person, or (ii) otherwise in violation of U.S. Economic Sanctions. 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

(c) Neither the Company nor any Controlled Entity (i) has been found in violation of, charged with, or convicted of, money laundering,
drug trafficking, terrorist-related activities or other money laundering predicate crimes under the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act), the USA PATRIOT Act or any other United States law
or regulation governing such activities (collectively, “Anti-Money Laundering Laws”) or any U.S. Economic Sanctions violations, (ii) to the Company’s actual knowledge after making due inquiry, is under investigation
by any Governmental Authority for possible violation of Anti-Money Laundering Laws or any U.S. Economic Sanctions violations, (iii) has been assessed civil penalties under any Anti-Money Laundering Laws or any U.S. Economic Sanctions,
or (iv) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws. The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to
ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable current and future Anti-Money Laundering Laws and U.S. Economic Sanctions. 

(d) (1) Neither the Company nor any Controlled Entity (i) has been charged with, or convicted of bribery or any other anti-corruption
related activity under any applicable law or regulation in a U.S. or any non-U.S. country or jurisdiction, including but not limited to, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010 (collectively,
“Anti-Corruption Laws”), (ii) to the Company’s actual knowledge after making due inquiry, is under investigation by any U.S. or non-U.S. Governmental Authority for possible violation of Anti-Corruption Laws,
(iii) has been assessed civil or criminal penalties under any Anti-Corruption Laws or (iv) has been or is the target of sanctions imposed by the United Nations or the European Union; 

(2) To the Company’s actual knowledge after making due inquiry, neither the Company nor any Controlled Entity has, within the last five
years, directly or indirectly offered, promised, given, paid or authorized the offer, promise, giving or payment of anything of value to a Governmental Official or a commercial counterparty for the purposes of: (i) influencing any act, decision
or failure to act by such Government Official in his or her official capacity or such commercial counterparty, (ii) inducing a Governmental Official to do or omit to do any act in violation of the Governmental Official’s lawful duty, or
(iii) inducing a Governmental Official or a commercial counterparty to use his or her influence with a government or instrumentality to affect any act or decision of such government or entity; in each case in order to obtain, retain or direct
business or to otherwise secure an improper advantage in violation of any applicable law or regulation or which would cause any holder to be in violation of any law or regulation applicable to such holder; and 

(3) No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any improper payments, including
bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage. The Company has established procedures and controls which it reasonably believes are adequate (and
otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable current and future Anti-Corruption Laws. 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Section 5.17. Status under Certain Statutes. Neither the Company nor any Restricted Subsidiary is subject to regulation under the
Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended. 

Section 5.18. Environmental Matters. (a) Neither the Company nor any Restricted Subsidiary has knowledge of any liability or
has received any notice of any liability, and no proceeding has been instituted raising any liability against the Company or any of its Restricted Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by
any of them, or other assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect. 

(b) Neither the Company nor any Restricted Subsidiary has knowledge of any facts which would give rise to any liability, public or private, of
violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such
as would not reasonably be expected to result in a Material Adverse Effect. 
 (c) Neither the Company nor any Restricted Subsidiary has
stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them in a manner which is contrary to any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect. 
 (d) Neither the Company nor any Restricted Subsidiary has disposed of any Hazardous Materials in a manner which
is contrary to any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 

(e) All buildings on all real properties now owned, leased or operated by the Company or any Restricted Subsidiary are in compliance with
applicable Environmental Laws, except where failure to comply could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 

Section 5.19. Notes Rank Pari Passu. The obligations of the Company under this Agreement and the Notes rank pari passu in right of
payment with all other senior unsecured Debt (actual or contingent) of the Company, including, without limitation, all senior unsecured Debt of the Company described in Schedule 5.15 hereto. 

SECTION 6. REPRESENTATIONS OF THE PURCHASER. 

Section 6.1. Purchase for Investment. Each Purchaser severally represents that it is purchasing the Notes for its own account or
for one or more separate accounts maintained by it or for the account of one or more pension or trust funds and not with a view to the distribution 

  
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thereof, provided that the disposition of such Purchaser’s or such pension or trust funds’ property shall at all times be within such Purchaser’s or such pension or trust
funds’ control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available,
except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 

Section 6.2. Accredited Investor. Each Purchaser represents that it is an “accredited investor” (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act acting for its own account (and not for the account of others) or as a fiduciary or agent for others (which others are also “accredited investors”). Each
Purchaser further represents that such Purchaser has had the opportunity to ask questions of the Company and received answers concerning the terms and conditions of the sale of the Notes. 

Section 6.3. Source of Funds. Each Purchaser severally represents that at least one of the following statements is an accurate
representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder: 

(a) the Source is an “insurance company general account” (as the term is defined in the United States Department of
Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the “NAIC Annual
Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee
benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of
separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or 

(b) the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual
obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not
affected in any manner by the investment performance of the separate account; or 
 (c) the Source is either (i) an
insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this
clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 

  
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(d) the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 84-14 (the
“QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no employee benefit plan’s assets that are managed by the QPAM in
such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the
same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person
controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be “related” within the meaning of Part VI(h) of the QPAM Exemption and (i) the identity of such
QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning
of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Company in writing pursuant to this clause (d); or 

(e) the Source constitutes assets of a “plan(s)” (within the meaning of Part IV(h) of PTE 96-23 (the “INHAM
Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are
satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and (i) the identity of
such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or 

(f) the Source is a governmental plan; or 

(g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee
benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or 
 (h) the
Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA. 
 As used in this Section 6.3, the
terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA. 

  
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SECTION 7. INFORMATION AS TO COMPANY. 

Section 7.1. Financial and Business Information. The Company shall deliver to each holder of Notes that is an Institutional
Investor: 
 (a) Quarterly Statements — within 60 days (or such shorter period as is 15 days greater than the
period applicable to the filing of the Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each quarterly
fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of, 

(i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and 

(ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its
Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in
reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being
reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments; 

(b) Annual Statements — within 105 days (or such shorter period as is 15 days greater than the period applicable to
the filing of the Company’s Annual Report on Form 10-K (the “Form 10-K”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each fiscal year of the Company, duplicate
copies of 
 (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and 

(ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries
for such year, 
 setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable
detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the
financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been
made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances; 

  
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(c) SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement,
report, notice or proxy statement sent by the Company or any Subsidiary to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to
pricing and borrowing availability) or to its public Securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such Purchaser or holder), and each
prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC and of all press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are
Material; 
 (d) Notice of Default or Event of Default — promptly, and in any event within five Business Days
(i) after a Responsible Officer becomes aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or
taken any action with respect to a claimed default of the type referred to in Section 11(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto
and (ii) of their becoming available, one copy of any letter, certificate or other writing supplied by the Company’s independent public accountants to any other Person pertaining to whether such accountants have cause to believe that there
has been any default by the Company under any other agreement or evidence of Debt; 
 (e) ERISA Matters —
promptly, and in any event within five Business Days after a Responsible Officer becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take
with respect thereto: 
 (i) with respect to any Plan, any reportable event, as defined in Section 4043(c) of ERISA and
the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date thereof; or 

(ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with
respect to such Multiemployer Plan; or 
 (iii) any event, transaction or condition that would result in the incurrence of
any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the imposition of a penalty or excise tax under the 

  
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provisions of the Code relating to employee benefit plans, or the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I
or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect; 

(f) Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of
any notice to the Company or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that would reasonably be expected to have a Material Adverse Effect; and 

(g) Requested Information — with reasonable promptness, such other data and information relating to the business,
operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries (including, but without limitation, actual copies of the Company’s Form 10-Q and Form 10-K) or relating to the ability of the Company to
perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of a Note. 

Notwithstanding the foregoing, in the event that the Company shall have one or more Unrestricted Subsidiaries, then, within the respective
periods provided in Section 7.1(a) and (b) above, the Company shall deliver to each holder of Notes that is an Institutional Investor, unaudited financial statements of the character and for the dates and periods as in said Sections 7.1(a)
and (b) covering the group of the Company and its Restricted Subsidiaries (on a consolidated basis), together with a consolidating statement reflecting eliminations or adjustments required to reconcile the financial statements of such group of
the Company and its Restricted Subsidiaries to the financial statements delivered pursuant to Sections 7.1(a) and (b). 

Section 7.2. Officer’s Certificate. Each set of financial statements delivered to a holder of a Note pursuant to
Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer: 
 (a)
Covenant Compliance — setting forth the information from such financial statements that is required in order to establish whether the Company was in compliance with the requirements of Sections 10.1 through 10.8 during the quarterly or
annual period covered by the statements then being furnished, (including with respect to each such provision that involves mathematical calculations, the information from such financial statements that is required to perform such calculations) and
detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Section, and the calculation of the amount, ratio or percentage then in existence; and 

(b) Event of Default — certifying that such Senior Financial Officer has reviewed the relevant terms hereof and has
made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its 

  
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Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the
existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of
the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 

Section 7.3. Visitation. The Company shall permit the representatives of each holder of Notes that is an Institutional Investor:

 (a) No Default — if no Default or Event of Default then exists, at the expense of such holder and upon
reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and (with the consent of the Company,
which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Restricted
Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and 
 (b) Default
— if a Default or Event of Default then exists, at the expense of the Company, to visit and inspect any of the offices or properties of the Company or any Restricted Subsidiary, to examine all their respective books of account, records, reports
and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants
to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested. 

Section 7.4. Electronic Delivery. Financial statements, opinions of independent certified public accountants, other information
and Officers’ Certificates that are required to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements: 

(i) such financial statements satisfying the requirements of Section 7.1(a) or (b) and related Officer’s
Certificate satisfying the requirements of Section 7.2 are delivered to each holder of a Note by e-mail; 
 (ii) the
Company shall have timely filed such Form 10–Q or Form 10–K, satisfying the requirements of Section 7.1(a) or Section 7.1(b), as the case may be, with the SEC and shall have made such form and the related Officer’s
Certificate satisfying the requirements of Section 7.2 available on its home page on the internet, which is located at http://www.stepan.com as of the date of this Agreement; 

  
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(iii) such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related
Officer’s Certificate(s) satisfying the requirements of Section 7.2 are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each holder of Notes has free access; or 

(iv) the Company shall have filed any of the items referred to in Section 7.1(c) with the SEC and shall have made such
items available on its home page on the internet or on IntraLinks or on any other similar website to which each holder of Notes has free access; 

provided however, that in the case of any of clauses (ii), (iii) or (iv), the Company shall have given each holder of a Note prior written notice,
which may be by e-mail or in accordance with Section 18, of such posting or filing in connection with each delivery, provided further, that upon request of any holder to receive paper copies of such forms, financial statements and
Officer’s Certificates or to receive them by e-mail, the Company will promptly e-mail them or deliver such paper copies, as the case may be, to such holder. 

SECTION 8. PAYMENT OF THE NOTES. 

Section 8.1. Required Prepayments. (a) On July 10, 2021 and on each July 10 thereafter to and including
July 10, 2026, the Company will prepay $14,285,714.29 principal amount (or such lesser principal amount as shall then be outstanding) of the Notes at par and without payment of the Make-Whole Amount or any premium. The entire unpaid principal
amount of the Notes shall become due and payable on July 10, 2027. 
 (b) Upon any partial prepayment of the Notes pursuant to
Section 8.2 or 8.7 or the purchase of any Notes pursuant to Section 8.5, the principal amount of each required prepayment of the Notes becoming due under this Section 8.1 on and after the date of such prepayment or purchase shall be
reduced in the same proportion as the aggregate unpaid principal amount of the Notes is reduced as a result of such prepayment or purchase. 

Section 8.2. Optional Prepayments with Make-Whole Amount. The Company may, at its option, upon notice as provided below, prepay at
any time all, or from time to time any part of, the Notes, in an amount not less than 10% of the aggregate principal amount then outstanding of the Notes to be prepaid in the case of a partial prepayment (or such lesser amount as shall be required
to effect a partial prepayment resulting from an offer of prepayment pursuant to Section 10.6), at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment, plus the Make-Whole Amount determined for the prepayment date with respect to such principal amount of each Note then outstanding. The Company will give each holder of Notes written notice of each optional prepayment under
this Section 8.2 not less than 15 days and not more than 60 days prior to the date fixed for such prepayment unless the Company and the Required Holders agree to another time period pursuant to Section 17. Each such notice shall specify
such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest
to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be 

  
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accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of
the prepayment), setting forth the details of such computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the calculation of each such Make-Whole Amount as of the specified prepayment date. 
 Section 8.3. Allocation of Partial
Prepayments. In the case of each partial prepayment of the Notes pursuant to Section 8.1 Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as
nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. 
 Section 8.4.
Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with
interest on such principal amount accrued to such date and the applicable Make-Whole Amount. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable,
together with the interest and Make-Whole Amount as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and
shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 
 Section 8.5. Purchase of
Notes. The Company will not and will not permit any of its Subsidiaries to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in
accordance with the terms of this Agreement and the Notes or (b) pursuant to a written offer to purchase any outstanding Notes made by the Company or a Subsidiary pro rata to the holders of the Notes upon the same terms and conditions. Any such
offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 10 Business Days. If the holders of more than 50% of the aggregate principal amount
of the Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of Notes of such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days
necessary to give each such remaining holder at least 5 Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all Notes acquired by the Company or any of its Subsidiaries pursuant to any payment,
prepayment or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes. 

Section 8.6. Make-Whole Amount. 

“Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the
Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole
Amount, the following terms have the following meanings: 
 “Called Principal” means, with respect to any Note, the
principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.  

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining
Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the
same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 

“Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by the
yield(s) reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1)
on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement
Date. If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond
equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between the yields Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities
(1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the
applicable Note. 
 If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of
interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which
such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury
constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield
to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant
maturity so reported with the term closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note. 

“Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (i) such
Called Principal into (ii) the sum of the products obtained by 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year
composed of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 

“Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called Principal
and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on
which interest payments are due to be made under the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date
pursuant to Section 8.2 or Section 12.1. 
 “Settlement Date” means, with respect to the Called Principal of any
Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 

Section 8.7. Change in Control. (a) Notice of Change in Control or Control Event. The Company will, within
15 Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control or Control Event, give written notice of such Change in Control or Control Event to each holder of Notes unless notice in respect of
such Change in Control (or the Change in Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.7. If a Change in Control has occurred, such notice shall contain and constitute an
offer to prepay all of the Notes as described in subparagraph (c) of this Section 8.7 and shall be accompanied by the certificate described in subparagraph (g) of this Section 8.7. 

(b) Condition to Company Action. The Company will not take any action that consummates or finalizes a Change in Control unless
(i) at least 15 Business Days prior to such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes as described in subparagraph (c) of this Section 8.7, accompanied
by the certificate described in subparagraph (g) of this Section 8.7, and (ii) contemporaneously with such action, it prepays all Notes required to be prepaid in accordance with this Section 8.7. 

(c) Offer to Prepay Notes. The offer to prepay Notes contemplated by subparagraphs (a) and (b) of this Section 8.7 shall
be an offer to prepay, in accordance with and subject to this Section 8.7, all, but not less than all, the Notes held by each holder (in this case only, “holder” in respect of any Note registered in the name of a nominee for a
disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). If such Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a)
of this Section 8.7, such date shall be not less than 20 days and not more than 30 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 20th
day after the date of such offer). 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

(d) Acceptance; Rejection. A holder of Notes may accept or reject the offer to prepay made pursuant to this Section 8.7 by causing
a written notice of such acceptance or rejection to be delivered to the Company at least 5 Business Days prior to the Proposed Prepayment Date. A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.7
shall be deemed to constitute a rejection of such offer by such holder. 
 (e) Prepayment. Prepayment of the Notes to be prepaid
pursuant to this Section 8.7 shall be at 100% of the unpaid principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment but without any premium or Make Whole Amount (the “Repurchase
Price”). The prepayment shall be made on the Proposed Prepayment Date except as provided in subparagraph (f) of this Section 8.7. 

(f) Deferral Pending Change in Control. The obligation of the Company to prepay Notes pursuant to the offers required by
subparagraph (b) and accepted in accordance with subparagraph (d) of this Section 8.7 is subject to the occurrence of the Change in Control in respect of which such offers and acceptances shall have been made. In the event that such
Change in Control does not occur on the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred until and shall be made on the date on which such Change in Control occurs. The Company shall keep each holder of Notes reasonably
and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur, and (iii) any determination by the Company that efforts to effect such
Change in Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.7 in respect of such Change in Control shall be deemed rescinded). 

(g) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.7 shall be accompanied by a certificate,
executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this Section 8.7; (iii) the Repurchase Price;
(iv) that the conditions of this Section 8.7 have been fulfilled; and (v) in reasonable detail, the nature and date or proposed date of the Change in Control. 

(h) Effect on Required Payments. The amount of each payment of the principal of the Notes made pursuant to this Section 8.7 shall
be applied against and reduce each of the then remaining principal payments due pursuant to Section 8.1 by a percentage equal to the aggregate principal amount of the Notes so paid divided by the aggregate principal amount of the Notes
outstanding immediately prior to such payment. 
 (i) “Change in Control” Defined. “Change in Control” means
(a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Exchange Act and the rules of the Securities and Exchange Commission thereunder as in effect on the date
hereof), other than the Stepan Family acting in concert, of Equity Interests representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Company; or (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the Company by Persons who were neither (i) nominated by the board of directors of the Company nor (ii) appointed by directors so nominated. 

  
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(j) “Control Event” Defined. “Control Event” means: 

(i) the execution by the Company or any of its Subsidiaries or Affiliates of any agreement or letter of intent with respect to
any proposed transaction or event or series of transactions or events which, individually or in the aggregate, may reasonably be expected to result in a Change in Control, 

(ii) the execution of any written agreement which, when fully performed by the parties thereto, would result in a Change in
Control, or 
 (iii) the making of any written offer by any person (as such term is used in section 13(d) and section
14(d)(2) of the Exchange Act as in effect on the date of the Closing) or related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act as in effect on the date of the Closing) to the holders of the common stock of
the Company, which offer, if accepted by the requisite number of holders, would result in a Change in Control. 
 (k) “Equity
Interest” Defined. “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and
any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest. 
 (l) “Stepan
Family” Defined. “Stepan Family” means at any time, collectively, F. Quinn Stepan and family, Paul H. Stepan and family, Charlotte Stepan Shea and family, Mary Louise Wehman and family, Alfred C. Stepan III and family, John
A. Stepan and family, Stratford E. Stepan and family, all trusts for the benefit of the foregoing or their heirs or any one or more of them, Stepan Venture I and Stepan Venture II and any entity controlled by any of the foregoing. 

SECTION 9. AFFIRMATIVE COVENANTS. 

The Company covenants that so long as any of the Notes are outstanding: 

Section 9.1. Compliance with Law. Without limiting Section 10.9, the Company will, and will cause each of its Subsidiaries to,
comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in
Section 5.16, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective
businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other
governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Section 9.2. Insurance. The Company will, and will cause each of its Restricted Subsidiaries to, maintain, with financially sound
and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if
adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated except for any non-maintenance that would not reasonably be
expected to have a Material Adverse Effect. 
 Section 9.3. Maintenance of Properties. The Company will, and will cause each of
its Restricted Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection
therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Restricted Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance
is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

Section 9.4. Payment of Taxes and Claims. The Company will, and will cause each of its Subsidiaries to, file all tax returns
required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or
franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company
or any Subsidiary not permitted by Section 10.5, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the
Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or
(ii) the non-filing or nonpayment, as the case may be, of all such taxes, assessments, charges, levies and claims in the aggregate would not reasonably be expected to have a Material Adverse Effect. 

Section 9.5. Corporate Existence, Etc. Subject to Sections 10.6 and 10.7, the Company will at all times preserve and keep in
full force and effect its corporate existence, and will at all times preserve and keep in full force and effect the corporate existence of each of its Restricted Subsidiaries (unless merged into the Company or a Restricted Subsidiary) and all rights
and franchises of the Company and its Restricted Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Section 9.6. Designation of Subsidiaries. The Company may from time to time cause any Subsidiary (other than a Subsidiary
Guarantor) to be designated as an Unrestricted Subsidiary or any Unrestricted Subsidiary to be designated a Restricted Subsidiary; provided, however, that at the time of such designation and immediately after giving effect thereto,
(a) no Default or Event of Default would exist under the terms of this Agreement, and (b) the Company and its Restricted Subsidiaries would be in compliance with all of the covenants set forth in this Section 9 and Section 10 if
tested on the date of such action and provided, further, that once a Subsidiary has been designated an Unrestricted Subsidiary, it shall not thereafter be redesignated as a Restricted Subsidiary on more than one occasion and once a Subsidiary
has been designated a Restricted Subsidiary, it shall not thereafter be redesignated as an Unrestricted Subsidiary on more than one occasion. Within ten (10) days following any designation described above, the Company will deliver to you a
notice of such designation accompanied by a certificate signed by a Senior Financial Officer of the Company certifying compliance with all requirements of this Section 9.6 and setting forth all information required in order to establish such
compliance. 
 Section 9.7. Notes to Rank Pari Passu. The Notes and all other obligations under this Agreement of the Company
are and at all times shall remain direct and unsecured obligations of the Company ranking pari passu as against the assets of the Company with all other present and future unsecured Debt (actual or contingent) of the Company which is not expressed
to be subordinate or junior in rank to any other unsecured Debt of the Company. 
 Section 9.8. Additional Subsidiary
Guarantors. (a) The Company will cause any Subsidiary which is required by the terms of the Bank Credit Agreement or any Debt Agreement to become a party to, or otherwise guarantee, Debt in respect of the Bank Credit Agreement or such Debt
Agreement, to enter into the Subsidiary Guaranty and deliver to each of the holders of the Notes (concurrently with the incurrence of any such obligation pursuant to the Bank Credit Agreement) the following items: 

(i) a joinder agreement in respect of the Subsidiary Guaranty; 

(ii) a certificate signed by an authorized Responsible Officer of the Company making representations and warranties to the
effect of those contained in Sections 5.4, 5.6 and 5.7, with respect to such Subsidiary and the Subsidiary Guaranty, as applicable; and 

(iii) an opinion of counsel (who may be in-house counsel for the Company) addressed to each of the holders of the Notes
satisfactory to the Required Holders, to the effect that the Subsidiary Guaranty by such Person has been duly authorized, executed and delivered and that the Subsidiary Guaranty constitutes the legal, valid and binding contract and agreement of such
Person enforceable in accordance with its terms, except as an enforcement of such terms may be limited by bankruptcy, insolvency, fraudulent conveyance and similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principles. 
 (b) At any time in which a Subsidiary Guaranty shall be in existence, the holders of the Notes agree to discharge
and release any Subsidiary Guarantor from such Subsidiary Guaranty upon receipt of written notice from the Company, provided that (i) such Subsidiary 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Guarantor has been released and discharged (or will be released and discharged concurrently with the release of such Subsidiary Guarantor under such Subsidiary Guaranty) as an obligor and
guarantor under and in respect of the Bank Credit Agreement and each Debt Agreement of the Company and the Company so certifies to the holders of the Notes in a certificate of a Responsible Officer, (ii) at the time of such release and
discharge, the Company shall deliver a certificate of a Responsible Officer to the holders of the Notes stating that no Default or Event of Default exists, and (iii) if any fee or other form of consideration is given to any holder of Debt of
the Company expressly for the purpose of such release, holders of the Notes shall receive equivalent consideration. 
 Section 9.9.
Books and Records. The Company will, and will cause each of its Restricted Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or
regulatory jurisdiction over the Company or such Restricted Subsidiary, as the case may be. The Company will, and will cause each of its Restricted Subsidiaries to, keep books, records and accounts which, in reasonable detail, accurately reflect all
transactions and dispositions of assets. The Company and its Restricted Subsidiaries have devised a system of internal accounting controls sufficient to provide reasonable assurances that their respective books, records, and accounts accurately
reflect all transactions and dispositions of assets and the Company will, and will cause each of its Restricted Subsidiaries to, continue to maintain such system. 

SECTION 10. NEGATIVE COVENANTS. 

The Company covenants that so long as any of the Notes are outstanding: 

Section 10.1. Consolidated Net Worth. The Company will not permit Consolidated Net Worth to be less than $325,000,000. 

Section 10.2. Consolidated Debt to Consolidated Total Capitalization. The Company will not at any time permit the ratio of
Consolidated Debt to Consolidated Total Capitalization to exceed 60%. 
 Section 10.3. Interest Coverage Ratio. The Company will
not permit the ratio of Consolidated EBIT to Consolidated Interest Expense for each period of four consecutive fiscal quarters (calculated as at the end of each fiscal quarter for the four consecutive fiscal quarters then ended) to be less than 1.75
to 1.00. 
 Section 10.4. Priority Debt. The Company will not at any time permit the aggregate amount of all Priority Debt to
exceed 25% of Consolidated Adjusted Tangible Net Worth (Consolidated Adjusted Tangible Net Worth to be determined as of the end of the then most recently ended fiscal quarter of the Company). 

Section 10.5. Limitation on Liens. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including, without limitation, any document or instrument in respect of goods or accounts

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

receivable) of the Company or any such Restricted Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to
receive income or profits (unless it makes, or causes to be made, effective provision whereby the Notes will be equally and ratably secured with any and all other obligations thereby secured, such security to be pursuant to an agreement reasonably
satisfactory to the Required Holders and, in any such case, the Notes shall have the benefit, to the fullest extent that, and with such priority as, the holders of the Notes may be entitled under applicable law, of an equitable Lien on such
property), except: 
 (a) Liens for taxes, assessments or other governmental charges that are not yet due and payable or the
payment of which is not at the time required by Section 9.4; 
 (b) any attachment or judgment Lien, unless the judgment
it secures shall not, within 60 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall not have been discharged within 60 days after the expiration of any such stay; 

(c) Liens incidental to the conduct of business or the ownership of properties and assets (including landlords’,
carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens for sums not yet due and payable) and Liens to secure the performance of bids, tenders, leases, or trade contracts, or to secure statutory obligations
(including obligations under workers compensation, unemployment insurance and other social security legislation), surety or appeal bonds or other Liens incurred in the ordinary course of business and not in connection with the borrowing of money;

 (d) leases or subleases granted to others, easements, rights-of-way, restrictions and other similar charges or
encumbrances, in each case incidental to the ownership of property or assets or the ordinary conduct of the business of the Company or any of its Restricted Subsidiaries, on Liens incidental to minor survey exceptions and the like, provided
that such Liens do not, in the aggregate, materially detract from the value of such property; 
 (e) Liens securing Debt of a
Restricted Subsidiary to the Company or to a Restricted Subsidiary; 
 (f) Liens existing as of the Closing Date and
reflected in Schedule 10.5; 
 (g) Liens incurred after the Closing Date given to secure the payment of the purchase
price incurred in connection with the acquisition, construction or improvement of property (other than accounts receivable or inventory) useful and intended to be used in carrying on the business of the Company or a Restricted Subsidiary, including
Liens existing on such property at the time of acquisition or construction thereof or Liens incurred within 365 days of such acquisition or completion of such construction or improvement, provided that (i) the Lien shall attach solely to
the property acquired, purchased, constructed or improved; (ii) at the time of acquisition, construction or improvement of such property (or, in the case of any Lien incurred within three hundred

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

sixty-five (365) days of such acquisition or completion of such construction or improvement, at the time of the incurrence of the Debt secured by such Lien), the aggregate amount remaining
unpaid on all Debt secured by Liens on such property, whether or not assumed by the Company or a Restricted Subsidiary, shall not exceed the lesser of (y) the cost of such acquisition, construction or improvement or (z) the Fair Market
Value of such property (as determined in good faith by one or more officers of the Company to whom authority to enter into the transaction has been delegated by the board of directors of the Company); and (iii) at the time of such incurrence
and after giving effect thereto, no Default or Event of Default would exist; 
 (h) any Lien incurred after the Closing Date
that exists on property of a Person immediately prior to its being consolidated with or merged into the Company or a Restricted Subsidiary or its becoming a Restricted Subsidiary, or any Lien incurred after the Closing Date that exists on any
property acquired by the Company or any Restricted Subsidiary at the time such property is so acquired (whether or not the Debt secured thereby shall have been assumed), provided that (i) no such Lien shall have been created or assumed
in contemplation of such consolidation or merger or such Person’s becoming a Restricted Subsidiary or such acquisition of property, (ii) each such Lien shall extend solely to the item or items of property so acquired and, if required by
the terms of the instrument originally creating such Lien, other property which is an improvement to or is acquired for specific use in connection with such acquired property, and (iii) at the time of such incurrence and after giving effect
thereto, no Default or Event of Default would exist; 
 (i) any extensions, renewals or replacements of any Lien permitted by
the preceding subparagraphs (e), (f), (g) and (h) of this Section 10.5, provided that (i) no additional property shall be encumbered by such Liens, (ii) the unpaid principal amount of the Debt or other obligations
secured thereby shall not be increased on or after the date of any extension, renewal or replacement, and (iii) at such time and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing; 

(j) Liens securing Priority Debt of the Company or any Restricted Subsidiary, provided that the aggregate principal
amount of any such Priority Debt shall be permitted by Section 10.4. 

  
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Section 10.6. Sales of Assets. The Company will not, and will not permit any Restricted Subsidiary to, sell, lease or otherwise
dispose of any substantial part (as defined below) of the assets of the Company and its Restricted Subsidiaries; provided, however, that the Company or any Restricted Subsidiary may sell, lease or otherwise dispose of assets constituting a
substantial part of the assets of the Company and its Restricted Subsidiaries if such assets are sold in an arms length transaction and, at such time and after giving effect thereto, no Default or Event of Default shall have occurred and be
continuing and an amount equal to the net proceeds received from such sale, lease or other disposition (but only with respect to that portion of such assets that exceeds the definition of “substantial part” set forth below) shall be used
within 365 days of such sale, lease or disposition, in any combination: 
 (1) to acquire productive assets used or useful in
carrying on the business of the Company and its Restricted Subsidiaries and having a value at least equal to the value of such assets sold, leased or otherwise disposed of; and/or 

(2) to prepay or retire Senior Debt of the Company and/or its Restricted Subsidiaries, provided that (i) the
Company shall offer to prepay each outstanding Note ratably with all such Senior Debt prepaid or retired, and (ii) any such prepayment of the Notes shall be made in accordance with the terms of Section 8.2 (but without the payment of any Make-Whole Amount or any other premium). 
 As used in this Section 10.6, a sale, lease or other
disposition of assets shall be deemed to be a “substantial part” of the assets of the Company and its Restricted Subsidiaries if the book value of such assets, when added to the book value of all other assets sold, leased or
otherwise disposed of by the Company and its Restricted Subsidiaries during the period of 12 consecutive months ending on the date of such sale, lease or other disposition, exceeds 10% of the book value of Consolidated Total Assets, determined as of
the end of the fiscal quarter immediately preceding such sale, lease or other disposition; provided that there shall be excluded from any determination of a “substantial part” any (i) sale or disposition of assets in the
ordinary course of business of the Company and its Restricted Subsidiaries, (ii) any transfer of assets from the Company to any Restricted Subsidiary or from any Restricted Subsidiary to the Company or a Restricted Subsidiary, and
(iii) any sale or transfer of property acquired by the Company or any Restricted Subsidiary after the date of this Agreement to any Person within 365 days following the acquisition or construction of such property by the Company or any
Restricted Subsidiary if the Company or a Restricted Subsidiary shall concurrently with such sale or transfer, lease such property, as lessee and (iv) the sale by the Company or any Restricted Subsidiary of accounts receivable owing to it by
account debtors which customarily pay on terms longer than general market practices pursuant to a receivables purchase agreement or other customary documentation (any such agreement a “Receivables Purchase Agreement”) with JPMorgan
Chase Bank, National Association or another institution (any such institution a “Receivables Facility Counterpart Counterparty”) whereby the Company or such Restricted Subsidiary promptly receive cash proceeds from such Receivables
Facility Counterparty equal to the face value of such receivables net of a commercially reasonable and customary discount rate; provided further that (i) any such sale is a true sale with recourse to the Company or such Restricted Subsidiary
limited to breach of representation, warranty or covenant by the Company or such Restricted Subsidiary with respect to the sold receivables; (ii) such Receivables Purchase Agreement is on customary terms for such arrangement; and (iii) no
Default or Event of Default exists or would result from the sale of such receivables. 
 Section 10.7. Merger and Consolidation.
The Company will not, and will not permit any of its Restricted Subsidiaries to, consolidate with or merge with any other Person or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to any
Person; provided that: 
 (1) any Restricted Subsidiary of the Company may (x) consolidate with or merge with, or
convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to, (i) the Company or a Restricted Subsidiary so long 

  
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	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

as in any merger or consolidation involving the Company, the Company shall be the surviving or continuing corporation or (ii) any other Person so long as the survivor is the Restricted
Subsidiary, or (y) convey, transfer or lease all of its assets in compliance with the provisions of Section 10.6; and 

(2) the foregoing restriction does not apply to the consolidation or merger of the Company with, or the conveyance, transfer or
lease of substantially all of the assets of the Company in a single transaction or series of transactions to, any Person so long as: 

(a) the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance,
transfer or lease substantially all of the assets of the Company as an entirety, as the case may be (the “Successor Corporation”), shall be a solvent entity organized and existing under the laws of the United States of America, any
State thereof or the District of Columbia; 
 (b) if the Company is not the Successor Corporation, such Successor Corporation
shall have executed and delivered to each holder of Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes (pursuant to such agreements and instruments as shall be
reasonably satisfactory to the Required Holders), and the Successor Corporation shall have caused to be delivered to each holder of Notes (A) an opinion of nationally recognized independent counsel, to the effect that all agreements or
instruments effecting such assumption are enforceable in accordance with their terms and (B) an acknowledgment from each Subsidiary Guarantor that the Subsidiary Guaranty continues in full force and effect; and 

(c) immediately after giving effect to such transaction no Default or Event of Default would exist. 

Section 10.8. Restrictions on Investments. The Company will not and will not permit any Restricted Subsidiary to make any
Investment, or commit to make any Investment, in any Unrestricted Subsidiaries after March 15, 2015, if, immediately after giving effect to any such proposed Investment, the aggregate amount of such proposed Investment together with all prior
Investments in Unrestricted Subsidiaries made after March 15, 2015 pursuant to this Section 10.8 (all such Investments to be taken at the cost thereof at the time of making such Investment without allowance for any subsequent write-offs or
appreciation or depreciation thereof, but less any amount repaid or recovered on account of capital or principal after March 15, 2015) shall exceed 30% of Consolidated Tangible Net Worth as of the date of such proposed Investment. 

Section 10.9. Transactions with Affiliates. The Company will not and will not permit any Restricted Subsidiary to enter into
directly or indirectly any Material transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than
the Company or another Restricted Subsidiary), except in the ordinary course and upon fair and reasonable terms that are not materially less favorable to the Company or such Restricted Subsidiary, taken as a whole, than would be obtainable in a
comparable arm’s-length transaction with a Person not an Affiliate. 

  
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Section 10.10. Terrorism Sanctions Regulations. The Company will not and will not permit any Controlled Entity (a) to become
(including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or any Person that is the target of sanctions imposed by the United Nations or by the European Union, or (b) directly or indirectly to have
any investment in or engage in any dealing or transaction (including, without limitation, any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any
holder to be in violation of any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions, or (c) to engage, nor shall any Affiliate of either engage, in any
activity that could subject such Person or any holder to sanctions under CISADA or any similar law or regulation with respect to Iran or any other country that is subject to U.S. Economic Sanctions. 

Section 10.11. Lien Restrictions. Notwithstanding anything to the contrary contained in Section 10.5, no Liens permitted
pursuant to the terms of Section 10.5 may secure any obligations under the Bank Credit Agreement or any private placement document pursuant to which the Company has issued senior notes, either existing as of the Closing Date or in the future
unless the Company makes, or causes to be made, effective a provision whereby the Notes will be equally and ratably secured with any and all other obligations thereby secured, such security to be pursuant to an agreement reasonably satisfactory to
the Required Holders. 
 SECTION 11. EVENTS OF DEFAULT. 

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: 

(a) the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due
and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or 
 (b) the Company
defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or 

(c) the Company defaults in the performance of or compliance with any term contained in Section 10 or any Subsidiary
Guarantor defaults in the performance of or compliance with any term of the Subsidiary Guaranty beyond any period of grace or cure period provided with respect thereto; or 

(d) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in
paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default or (ii) the Company receiving written
notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section 11); or 

  
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(e) any Subsidiary Guaranty ceases to be a legally valid, binding and enforceable obligation or contract of a Subsidiary
Guarantor (other than upon a release of any Subsidiary Guarantor from a Subsidiary Guaranty in accordance with the terms of Section 9.8(b) hereof), or any Subsidiary Guarantor or any party by, through or on account of any such Person,
challenges the validity, binding nature or enforceability of any such Subsidiary Guaranty; or 
 (f) any representation or
warranty made in writing by or on behalf of the Company or any Subsidiary Guarantor in this Agreement or any Subsidiary Guaranty or by any officer of the Company or any Subsidiary Guarantor in any writing furnished in connection with the
transactions contemplated hereby or by any Subsidiary Guaranty proves to have been false or incorrect in any material respect on the date as of which made; or 

(g) (i) the Company or any Restricted Subsidiary is in default (as principal or as guarantor or other surety) in the
payment of any principal of or premium or make-whole amount or interest (in the payment amount of at least $100,000) on any Debt other than the Notes that is outstanding in an aggregate principal amount of at least $20,000,000 beyond any period of
grace provided with respect thereto, or (ii) the Company or any Restricted Subsidiary is in default in the performance of or compliance with any term of any instrument, mortgage, indenture or other agreement relating to any Debt other than the
Notes in an aggregate principal amount of at least $20,000,000 or any other condition exists, and as a consequence of such default or condition such Debt has become, or has been declared, due and payable or one or more Persons has the right to
declare such Debt to be due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the
right of the holder of Debt to convert such Debt into equity interests), the Company or any Restricted Subsidiary has become obligated to purchase or repay Debt other than the Notes before its regular maturity or before its regularly scheduled dates
of payment in an aggregate outstanding principal amount of at least $20,000,000 or one or more Persons have the right to require the Company or any Restricted Subsidiary to purchase or repay such Debt; or 

(h) the Company, any Material Subsidiary or any Subsidiary Guarantor (i) is generally not paying, or admits in writing its
inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take
advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or
other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

  
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(i) a court or governmental authority of competent jurisdiction enters an order appointing, without consent by the Company, any
of its Material Subsidiaries or any Subsidiary Guarantor, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or
approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the
Company, any of its Material Subsidiaries or any Subsidiary Guarantor, or any such petition shall be filed against the Company, any of its Material Subsidiaries or any Subsidiary Guarantor and such petition shall not be dismissed within 60 days; or

 (j) a final judgment or judgments at any one time outstanding for the payment of money aggregating in excess of
$20,000,000 are rendered against one or more of the Company, its Restricted Subsidiaries or any Subsidiary Guarantor and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged
within 60 days after the expiration of such stay; or 
 (j) if (i) any Plan shall fail to satisfy the minimum funding
standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under Section 412 of the Code, (ii) a notice of intent to terminate any Plan shall
have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA
Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under all Plans, determined in accordance with
Title IV of ERISA, shall exceed an amount that could reasonably be expected to have a Material Adverse Effect, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to
Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary
establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder; and any such event or events described in clauses
(i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect. As used in this Section 11(j), the terms “employee benefit
plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in section 3 of ERISA; or 

As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the
respective meanings assigned to such terms in Section 3 of ERISA. 

  
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SECTION 12. REMEDIES ON DEFAULT, ETC. 

Section 12.1. Acceleration. (a) If an Event of Default with respect to the Company described in paragraph (h) or
(i) of Section 11 (other than an Event of Default described in clause (i) of paragraph (h) or described in clause (vi) of paragraph (h) by virtue of the fact that such clause encompasses clause (i) of paragraph
(h)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 
 (b) If any other Event of
Default has occurred and is continuing, any holder or holders of more than 50% in aggregate principal amount of the Notes at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare all the Notes then
outstanding to be immediately due and payable. 
 (c) If any Event of Default described in paragraph (a) or (b) of Section 11
has occurred and is continuing with respect to any Notes, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes
held by such holder or holders to be immediately due and payable. 
 Upon any Note’s becoming due and payable under this
Section 12.1, whether automatically or by declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate) and (ii) the Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as
herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the
deprivation of such right under such circumstances. 
 Section 12.2. Other Remedies. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of
such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note or Subsidiary Guaranty, or for an injunction against a violation of any of the
terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 
 Section 12.3.
Rescission. At any time after the Notes have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of more than 50% in aggregate principal amount of the Notes then outstanding, by written notice
to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and Make-Whole Amount on any Notes that are due and payable and are

  
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unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount and (to the extent permitted by applicable law) any overdue interest in respect
of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of
amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to any
Notes. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 

Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay on the part of any holder of
any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement, any Subsidiary Guaranty or by any Note
upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under
Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including,
without limitation, reasonable attorneys’ fees, expenses and disbursements. 
 SECTION 13. REGISTRATION;
EXCHANGE; SUBSTITUTION OF NOTES. 
 Section 13.1. Registration of
Notes. The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of
each transferee of one or more Notes shall be registered in such register. If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as
an owner and holder thereof and (b) at any such beneficial owner’s option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement. Prior to due presentment for registration of
transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall
give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes. 

Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note to the Company at the address and to the attention of the
designated officer (all as specified in Section 18(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered
holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the
Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to

  
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the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of the Note originally
issued hereunder. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may
require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable
the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to
have made the representation set forth in Section 6.3, provided, that in lieu thereof such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect
that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA. 

The Notes have not been registered under the Securities Act or under the securities laws of any state and may not be transferred or resold
unless registered under the Securities Act and all applicable state securities laws or unless an exemption from the requirement for such registration is available. 

Section 13.3. Replacement of Notes. Upon receipt by the Company at the address and to the attention of the designated officer (all
as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such
Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 
 (a) in the case of loss,
theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000 or a
Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or 

(b) in the case of mutilation, upon surrender and cancellation thereof, 

the Company at its own expense shall execute and deliver not more than ten Business Days following satisfaction of such conditions, in lieu thereof, a new
Note dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

 Section 13.4 Prohibition on Transfer to a Competitor. Each Purchaser agrees that, prior to the existence of a Default or
Event of Default, it will not sell, assign or otherwise transfer any Note or portion thereof to a Competitor or Competitor Affiliate. As used herein “Competitor” means any Person which is primarily engaged in the lines of business of the
Company and its Restricted Subsidiaries as described in the Memorandum or as changed from time to time. “Competitor Affiliate” means, with respect to any Competitor, (a) any Person at the time directly

  
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or indirectly controlling, controlled by or under common control with such Competitor, (b) any other Person of which such Competitor at the time owns 50% or more on a consolidated basis of
the equity interest of such Person, and (c) any other Person which at the time owns 50% or more of any class of the capital stock or other equity interest of such Competitor, provided that: (i) the provision of investment advisory services
by a Person to an employee benefit plan which is owned or controlled by a Person which would otherwise be a Competitor or Competitor Affiliate shall not of itself cause the Person providing such services to be deemed a Competitor or Competitor
Affiliate; and (ii) in no event shall an Institutional Investor be deemed a Competitor or Competitor Affiliate. 
 SECTION 14.
PAYMENTS ON NOTES. 
 Section 14.1. Place of Payment. Subject to Section 14.2,
payments of principal, Make-Whole Amount and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of Bank of America, N.A. in such jurisdiction.
The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or
trust company in such jurisdiction. 
 Section 14.2. Home Office Payment. So long as any Purchaser or its nominee shall be the
holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, interest and all other amounts
becoming due hereunder by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the
Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment
in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant
to Section 14.1. Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has
been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect
transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 14.2. 

SECTION 15. EXPENSES, ETC. 

Section 15.1. Transaction Expenses. Whether or not the transactions contemplated hereby are consummated, the Company will pay all
costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such
transactions and in connection with any amendments, waivers or consents under or in 

  
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respect of this Agreement, any Subsidiary Guaranty or the Notes (whether or not such amendment, waiver or consent becomes effective) within 15 Business Days after the Company’s receipt of
any invoice therefor, including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement, any Subsidiary Guaranty or the Notes or in
responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement, any Subsidiary Guaranty or the Notes, or by reason of being a holder of any Note, (b) the costs and expenses, including
financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and any Subsidiary
Guaranty and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO provided, that such costs and expenses under this clause (c)
shall not exceed $3,500. The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a
Purchaser or other holder in connection with its purchase of the Notes). 
 Section 15.2. Survival. The obligations of the
Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement, any Subsidiary Guaranty or the Notes, and the termination of this Agreement. 

SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES;
ENTIRE AGREEMENT. 
 All representations and warranties contained herein shall survive the execution and
delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any
investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed
representations and warranties of the Company under this Agreement. Subject to the preceding sentence, this Agreement, the Notes and any Subsidiary Guaranties embody the entire agreement and understanding between each Purchaser and the Company and
supersede all prior agreements and understandings relating to the subject matter hereof. 
 SECTION 17. AMENDMENT
AND WAIVER. 
 Section 17.1. Requirements. This Agreement and the Notes may be amended, and the
observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), only with the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of Sections 1, 2, 3, 4, 5,
6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing; and (b) no amendment or waiver may, without the written consent of each Purchaser and the
holder of each Note at the time outstanding, (i) subject to Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of 

  
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principal of, or reduce the rate or change the time of payment or method of computation of (x) interest on the Notes or (y) the Make-Whole Amount, (ii) change the percentage of the
principal amount of the Notes the holders of which are required to consent to any amendment or waiver, or (iii) amend any of Sections 8 (except as set forth in the second sentence of Section 8.2), 11(a), 11(b), 12, 17 or 20. 

Section 17.2. Solicitation of Holders of Notes. 

(a) Solicitation. The Company will provide each holder of a Note with sufficient information, sufficiently far in advance of the date a
decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes or any Subsidiary Guaranty. The Company will
deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this Section 17 or any Subsidiary Guaranty to each holder of a Note promptly following the date on which it is executed and delivered by, or
receives the consent or approval of, the requisite holders of Notes. 
 (b) Payment. The Company will not directly or indirectly pay
or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering
into by such holder of any waiver or amendment of any of the terms and provisions hereof or of any Subsidiary Guaranty or any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support
concurrently provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment. 

(c) Consent in Contemplation of Transfer. Any consent given pursuant to this Section 17 or any Subsidiary Guaranty by a holder of
a Note that has transferred or has agreed to transfer its Note to the Company, any Subsidiary or any Affiliate of the Company in connection with such consent shall be void and of no force or effect except solely as to such holder, and any amendments
effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions)
shall be void and of no force or effect except solely as to such holder. 
 Section 17.3. Binding Effect, etc. Any amendment or
waiver consented to as provided in this Section 17 or any Subsidiary Guaranty applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has
been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course
of dealing between the Company and any holder of a Note and no delay in exercising any rights hereunder or under any Note or Subsidiary Guaranty shall operate as a waiver of any rights of any holder of such Note. 

  
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Section 17.4. Notes Held by Company, etc. Solely for the purpose of determining whether the holders of the requisite percentage of
the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, any Subsidiary Guaranty or the Notes, or have directed the taking of any action provided herein or
in any Subsidiary Guaranty or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates
shall be deemed not to be outstanding. 
 SECTION 18. NOTICES. 

Except to the extent otherwise provided in Section 7.4, all notices and communications provided for hereunder shall be in writing and sent
(a) by telecopy if the sender on the same day sends a confirming copy of such notice by an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested
(postage prepaid), or (c) by an internationally recognized overnight delivery service (with charges prepaid). Any such notice must be sent: 

(i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in
Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing, 

(ii) if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the
Company in writing, or 
 (iii) if to the Company, to the Company at its address set forth at the beginning hereof to the
attention of Chief Financial Officer, with a copy to the General Counsel, or at such other address as the Company shall have specified to the holder of each Note in writing. 

Notices under this Section 18 will be deemed given only when actually received. 

SECTION 19. REPRODUCTION OF DOCUMENTS. 

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may
hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be
reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by
applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in
the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other holder of Notes from contesting
any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 

  
 -41- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

SECTION 20. CONFIDENTIAL INFORMATION. 

For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser by or on
behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received
by such Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such
disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the
Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in
accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its
directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its auditors, financial advisors and other
professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to
sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 20), (v) any Person from which it offers to purchase
any Security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 20), (vi) any federal or state regulatory authority having jurisdiction over such
Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to
which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection
with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under such Purchaser’s Notes, this Agreement or any Subsidiary Guaranty. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be
entitled to the benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under
this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying this Section 20. 

  
 -42- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the
transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or
otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede any such other confidentiality
undertaking. 
 SECTION 21. SUBSTITUTION OF PURCHASER. 

Each Purchaser shall have the right to substitute any one of its Affiliates or another Purchaser or any one of such other Purchaser’s
Affiliates (a “Substitute Purchaser”) as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall
contain such Substitute Purchaser’s agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations set forth in Section 6. Upon receipt of
such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer to such Substitute Purchaser in lieu of such original Purchaser. In the event that such Substitute Purchaser is so
substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then held by such Substitute Purchaser, upon receipt by the Company of notice of such transfer, any reference to such
Substitute Purchaser as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall
again have all the rights of an original holder of the Notes under this Agreement. 
 SECTION 22. MISCELLANEOUS. 

Section 22.1. Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the
parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not. 

Section 22.2. Payments Due on Non-Business Days. Anything in this Agreement or the Notes to the contrary notwithstanding (but
without limiting the requirement in Section 8.2 that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on any Note that is due on a
date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any
Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding
Business Day. 
 Section 22.3. Accounting Terms. (a) All accounting terms used herein which are not expressly defined in
this Agreement have the meanings respectively given to them in accordance 

  
 -43- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

with GAAP. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial
statements shall be prepared in accordance with GAAP. For purposes of determining compliance with this Agreement (including, without limitation, Section 9, Section 10 and the definition of “Debt”), any election by the Company to
measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic
No. 825-10-25 — Fair Value Option, International Accounting Standard 39 — Financial Instruments: Recognition and Measurement
or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made. 
 (b)
Notwithstanding the foregoing provisions of Section 22.2(a), if at any time any change in GAAP would require a lessee to capitalize its operating leases under GAAP on the balance sheet of such lessee, the GAAP treatment of operating leases on
the date of the Closing shall continue to apply for purposes of this Agreement and the calculation of the financial covenants under this Agreement. 

Section 22.4. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 22.5. Construction. Each
covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be
deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or
indirectly by such Person. 
 For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part
hereof. 
 Section 22.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an
original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 

Section 22.7. Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties
shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State. 

Section 22.8. Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably submits to the non-exclusive
jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by

  
 -44- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any
objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. 
 (b) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or
proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in
Section 18 or at such other address of which such holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in
any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as
evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service. 
 (c) Nothing
in this Section 22.8 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any
appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction. 
 (d)
THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT
ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER
DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH. 

*  *  *  *  * 

  
 -45- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

The execution hereof by the Purchasers shall constitute a contract among the Company and the Purchasers for the uses and purposes hereinabove
set forth. This Agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement. 

 

			
	 Very truly yours,
  

STEPAN COMPANY

		
	By		 
	Name: Scott D. Beamer
	Title: Vice President and Chief Financial Officer

  
 -46- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Accepted as of the date first written above. 
  

			
	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
		
	By:		Babson Capital Management LLC as Investment Adviser
		
	By:		 
			Name:
			Title:

  

			
	CM LIFE INSURANCE COMPANY
		
	By:		Babson Capital Management LLC as Investment Adviser
		
	By:		 
			Name:
			Title:

  

			
	BANNER LIFE INSURANCE COMPANY
		
	By:		Babson Capital Management LLC as Investment Adviser
		
	By:		 
			Name:
			Title:

  

			
	MASSMUTUAL ASIA LIMITED
		
	By:		Babson Capital Management LLC as Investment Adviser
		
	By:		 
			Name:
			Title:

  
 -47- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Accepted as of the date first written above. 
  

			
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
		
	By:		 
			Vice President

  

			
	THE GIBRALTAR LIFE INSURANCE CO., LTD.
		
	By:		Prudential Investment Management Japan Co., Ltd. (as Investment Manager)
		
	By:		Prudential Investment Management, Inc. (as Sub-Adviser)
		
	By:		 
			Vice President

  

			
	 FARMERS NEW WORLD LIFE INSURANCE
COMPANY
 PHYSICIANS MUTUAL INSURANCE COMPANY

FARMERS INSURANCE EXCHANGE

MID CENTURY INSURANCE COMPANY

		
	By:		Prudential Private Placement Investors, L.P. (as Investment Advisor)
		
	By:		Prudential Private Placement Investors, Inc. (as its General Partner)
		
	By:		 
			Vice President

  
 -48- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Accepted as of the date first written above. 
  

			
	THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
		
	By:		Delaware Investment Advisers, a series of Delaware Management Business Trust, Attorney in Fact
		
	By:		 
			Name:
			Title:

  

			
	THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
		
	By:		 
			Name:
			Title:

  
 -49- 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Accepted as of the date first written above. 
  

			
	CONNECTICUT GENERAL LIFE INSURANCE COMPANY
		
	By:		 Cigna Investments, Inc.
 (authorized
agent)

		
	By		 
			Name:
			Title:

  

			
	LIFE INSURANCE COMPANY OF NORTH AMERICA
		
	By:		 Cigna Investments, Inc.
 (authorized
agent)

		
	By		 
			Name:
			Title:

  
 -50- 

 INFORMATION RELATING TO PURCHASERS

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

c/o Babson Capital Management LLC
 1500 Main Street — Suite
2200
 PO Box 15189
 Springfield, MA 01115-5189

Attn: Securities Investment Division
				$22,700,000

 Payments 
 All
payments on account of the Note shall be made by crediting in the form of bank wire transfer of Federal or other immediately available funds, (identifying each payment as “Stepan Company 3.95% Senior Notes, due July 10, 2027,
PPN 858586 J*2” interest and principal), to: 
 MassMutual 

Citibank 
 New York, New York 

ABA # 021000089 
 Acct # 30510685

 RE: Description of security, cusip, principal and interest split 

With advice of payment to the Treasury Operations Liquidity Management Department at Massachusetts Mutual Life Insurance Company at
mmincometeam@massmutual.com or (413) 226-4295 (facsimile). 
 Notices 

 

			
	 Send Communications and Notices to:
  

Massachusetts Mutual Life Insurance Company
 c/o Babson Capital
Management LLC
 1500 Main Street, Suite 2200
 PO Box 15189

Springfield, MA 01115-5189
		 Send Notices on Payments to:
  

Massachusetts Mutual Life Insurance Company
 1295 State Street

Treasury Operations Liquidity Management
 Springfield, MA
01111
 Attn: Janelle Tarantino
  

With a copy to:
  

Massachusetts Mutual Life Insurance Company
 c/o Babson Capital
Management LLC
 1500 Main Street — Suite 2200
 PO Box
15189
 Springfield, MA 01115

  

SCHEDULE A 
 (to Note
Purchase Agreement) 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Electronic delivery of financials and other information to: 

Massachusetts Mutual Life Insurance Company 
 c/o Babson Capital
Management LLC 
 1500 Main Street — Suite 2200 

Springfield, MA 01115 
 With email notification to: 

1. privateplacements@babsoncapital.com 
 2.
tpshea@babsoncapital.com 
 Physical Delivery of Notes 

All securities should be registered to Massachusetts Mutual Life Insurance Company and sent via overnight mail to: 

Steven Katz, Counsel 
 Babson
Capital Management LLC 
 1500 Main Street, Suite 2800 

Springfield, MA 01115-5189 

Telephone: 413-226-1059 

Facsimile: 413-226-2059 
 E-mail:
skatz@babsoncapital.com 
 Name of Nominee in which Notes are to be issued: None 

Taxpayer I.D. Number: 04-1590850 

  
 A-2 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 BANNER LIFE INSURANCE COMPANY

c/o Babson Capital Management LLC
 1500 Main Street — Suite
2200
 PO Box 15189
 Springfield, MA 01115-5189

Attn: Securities Investment Division
				$5,000,000

 Payments 
 All
payments on account of the Note shall be made by crediting in the form of bank wire transfer of Federal or other immediately available funds, (identifying each payment as “Stepan Company 3.95% Senior Notes, due July 10, 2027,
PPN 858586 J*2” interest and principal), to: 
 BANNER LIFE INSURANCE COMPANY 

The Bank of New York/Mellon 
 New
York, New York 
 ABA # 021000018 

Acct Name: Banner Life Insurance Company 

Acct # GLA 111566 
 Attention:
P&I Department 
 RE: Description of security, cusip, principal and interest split 

Notices 
  

			
	Send Communications and Notices, including notices on payments, to:		Electronic Delivery of Financials and other information to:
		
	 Banner Life Insurance Company
 c/o Babson
Capital Management LLC
 1500 Main Street — Suite 2200
 PO
Box 15189
 Springfield, MA 01115-5189
		 Banner Life Insurance Company
 c/o Babson
Capital Management LLC
 1500 Main Street — Suite 2200
 PO
Box 15189
 Springfield, MA 01115-5189
  

With notification to:
  

1. privateplacements@babsoncapital.com
  

2. tpshea@babsoncapital.com

  
 A-3 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Physical Delivery of Notes 
 All securities should
be registered to Hare & Co., LLC and sent via overnight mail to: 
 Bank of New York 

Depository ineligible and physical issues: 

The Bank of New York 
 One Wall
Street — 3rd Floor/Window A 
 New York, NY 10286 

For account: U.S. Bank N.A. #117612 

With a copy to: 
 Steven Katz,
Counsel 
 Babson Capital Management LLC 

1500 Main Street, Suite 2800 

Springfield, MA 01115-5189 

Telephone: 413-226-1059 

Facsimile: 413-226-2059 
 E-mail:
skatz@babsoncapital.com 
 Name of Nominee in which Notes are to be issued: Hare & Co., LLC 

Taxpayer I.D. Number: 52-1236145 

  
 A-4 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

 

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 C.M. LIFE INSURANCE COMPANY

c/o Babson Capital Management LLC
 1500 Main Street — Suite
2200
 PO Box 15189
 Springfield, MA 01115-5189

Attn: Securities Investment Division
				$1,300,000

 Payments 
 All
payments on account of the Note shall be made by crediting in the form of bank wire transfer of Federal or other immediately available funds, (identifying each payment as “Stepan Company 3.95% Senior Notes, due July 10, 2027,
PPN 858586 J*2” interest and principal), to: 
 JP Morgan Chase Bank 

New York, NY 
 ABA # 021000021

 Account Name: CM Life Insurance Company 

Account Number: 771061371 
 RE:
Description of security, cusip, principal and interest split 
 With advice of payment to the Treasury Operations Liquidity Management Department at
Massachusetts Mutual Life Insurance Company at mmincometeam@massmutual.com or (413) 226-4295 (facsimile). 
 Notices 

 

			
	 Send Communications and Notices to
  

C.M. Life Insurance Company
 c/o Babson Capital Management LLC

1500 Main Street — Suite 2200
 PO Box 15189

Springfield, MA 01115-5189
		 Send Notices on Payments to
  

C.M. Life Insurance Company
 Treasury Operations Liquidity
Management
 1295 State Street
 Springfield, MA 01111

Attn: Janelle Tarantino

		
	Electronic Delivery of Financials and other information to:		With a copy to:
		
	 C.M. Life Insurance Company
 c/o Babson Capital
Management LLC
 1500 Main Street — Suite 2200
 PO Box
15189
 Springfield, MA 01115-5189
		 C.M. Life Insurance Company
 c/o Babson Capital
Management LLC
 1500 Main Street — Suite 2200
 PO Box
15189
 Springfield, MA 01115

  
 A-5 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

With email notification to: 
 1.
privateplacements@babsoncapital.com 
 2. tpshea@babsoncapital.com 

Physical Delivery of Notes 
 All securities should
be registered to C.M. Life Insurance Company and sent via overnight mail to: 
 Steven Katz, Counsel 

Babson Capital Management LLC 

1500 Main Street, Suite 2800 

Springfield, MA 01115-5189 

Telephone: 413-226-1059 

Facsimile: 413-226-2059 
 E-mail:
skatz@babsoncapital.com 
 Name of Nominee in which Notes are to be issued: None 

Taxpayer I.D. Number: 06-1041383 

  
 A-6 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

 

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 MASSMUTUAL ASIA LIMITED COMPANY

c/o Babson Capital Management LLC
 1500 Main Street — Suite
2200
 PO Box 15189
 Springfield, MA 01115-5189

Attn: Securities Investment Division
				$1,000,000

 Payments 
 All
payments on account of the Note shall be made by crediting in the form of bank wire transfer of Federal or other immediately available funds, (identifying each payment as “Stepan Company 3.95% Senior Notes, due July 10, 2027,
PPN 858586 J*2” interest and principal), to: 
 Gerlach & Co. 

Citibank, N.A. 
 ABA Number
021000089 
 Concentration Account 36112805 

FFC: MassMutual Asia 849195 
 Name
of Security/CUSIP Number 
 With advice of payment to the Treasury Operations Liquidity Management Department at Massachusetts Mutual Life Insurance Company
at mmincometeam@massmutual.com or (413) 226-4295 (facsimile). 
 Notices 

 

			
	 Send Communications and Notices to
  

MassMutual Asia Limited
 c/o Babson Capital Management LLC

1500 Main Street — Suite 2200
 PO Box 15189

Springfield, MA 01115-5189
  

Electronic Delivery of Financials and other information to:
  

MassMutual Asia Limited
 c/o Babson Capital Management LLC

1500 Main Street — Suite 2200
 PO Box 15189

Springfield, MA 01115-5189
		 Send Notices on Payments to
  

MassMutual Asia Limited
 Treasury Operations Liquidity
Management
 1295 State Street
 Springfield, MA 01111

Attn: Janelle Tarantino
  

With a copy to:
  

MassMutual Asia Limited
 c/o Babson Capital Management LLC

1500 Main Street — Suite 2200
 PO Box 15189

Springfield, MA 01115

  
 A-7 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

With email notification to: 
 1.
privateplacements@babsoncapital.com 
 2. tpshea@babsoncapital.com 

Send Corporate Action Notification to: 
 Citigroup Global
Securities Services 
 Attn: Corporate Action Dept 
 3800
Citibank Center Tampa 
 Building B Floor 3 
 Tampa, FL
33610-9122 
 Physical Delivery of Notes 
 All
securities should be registered in Citibank’s nominee name of Gerlach & Co. and sent via overnight mail to: 
 Citibank
NA 
 399 Park Avenue 
 Level B
Vault 
 New York, NY 10022 

Acct. #849195 

With a copy to: 

Steven Katz, Counsel 
 Babson
Capital Management LLC 
 1500 Main Street, Suite 2800 

Springfield, MA 01115-5189 

Telephone: 413-226-1059 

Facsimile: 413-226-2059 
 E-mail:
skatz@babsoncapital.com 
 Name of Nominee in which Notes are to be issued: Gerlach & Co. 

  
 A-8 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA
 c/o Prudential Capital Group

Two Prudential Plaza

180 N. Stetson Avenue, Suite 5600

Chicago, IL 60601

Attention: Managing Director, Corporate Finance
				$10,000,000

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 JPMorgan
Chase Bank 
 New York, NY 
 ABA
No.: 021-000-021 
 Account Name: Motorola 

Account No.: P30875 (please do not include spaces) 

Each such wire transfer shall set forth the name of the Company, a reference to “3.95% Senior Notes due 10 July 2027, Security No. INV10081,
PPN 858586J*2” and the due date and application (as among principal, interest and Make-Whole Amount) of the payment being made. 
 Notices

 All notices with respect to payments, and written confirmation of each such payment, to be addressed to: 

The Prudential Insurance Company of America 

c/o Investment Operations Group 

Gateway Center Two, 10th Floor 

100 Mulberry Street 
 Newark, NJ
07102-4077 
 Attention: Manager, Billings and Collections 

All other notices and communications to be addressed as first provided above. 

  
 A-9 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Physical Delivery of Notes 
 Send physical security
by nationwide overnight delivery service to: 
 Prudential Capital Group 

Two Prudential Plaza 
 180 N.
Stetson Avenue 
 Suite 5600 

Chicago, IL 60601 
 Attention: Kim
L. Maranda 
 Telephone: (312) 540-4246 

Name of Nominee in which Notes are to be issued: None 
 Taxpayer
I.D. Number: 22-1211670 

  
 A-10 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 FARMERS INSURANCE EXCHANGE

Prudential Private Placement Investors, L.P.

c/o Prudential Capital Group

Two Prudential Plaza

180 N. Stetson Avenue

Suite 5600

Chicago, IL 60601

Attention: Managing Director, Corporate Finance
				$7,000,000

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 JPMorgan
Chase Bank 
 ABA: 021000021 

Beneficiary Account No: 9009000200 

Beneficiary Account Name: JPMorgan Income 

Ultimate Beneficiary: P13939 Farmers Insurance Exchange 

Each such wire transfer shall set forth the name of the Company, a reference to “3.95% Senior Notes due 10 July 2027, PPN 858586J*2” and the due
date and application (as among principal, interest and Make-Whole Amount) of the payment being made. 
 Notices 

All notices with respect to payments, and written confirmation of each such payment, to be addressed to: 

Farmers 
 4680 Wilshire Blvd. 

Los Angeles, CA 90010 
 Attention:
Treasury 
 Treasury: 
 Treasury
Manager 
 323-932-3450 

usw.treasury.farmers@farmersinsurance.com 
 All
other notices and communications to be addressed as first provided above. 

  
 A-11 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Physical Delivery of Notes 
  

	(a)	Send physical security by nationwide overnight delivery service to: 

 Mailing Address (for
overnight mail) 
 JPMorgan Chase Bank, N.A. 

Physical Receive Department 
 4
Chase Metrotech Center 
 3rd Floor 

Brooklyn, NY 11245-0001 

Attention: Brian Cavanaugh, Tel. 718-242-0264 

Please include in the cover letter accompanying the Notes a reference to the Purchaser’s account number (“P13939—Farmers
Insurance Exchange”) and CUSIP information. 
  

	(b)	Send copy by nationwide overnight delivery service to: 

 Prudential Capital Group 

Gateway Center 2, 10th Floor 
 100
Mulberry 
 Newark, NJ 07102 

Attention: Trade Management, Manager 

Telephone: (973) 367-3141 

Name of Nominee in which Notes are to be issued: None 

Taxpayer I.D. Number: 95-2575893 

  
 A-12 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

 

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 THE GIBRALTAR LIFE INSURANCE CO.,
LTD.
 Prudential Private Placement Investors, L.P.

c/o Prudential Capital Group
 Two Prudential Plaza

180 N. Stetson Avenue
 Suite 5600

Chicago, IL 60601
 Attention: Managing Director, Corporate
Finance
				$5,000,000

 Payments (principal, interest and Make-Whole) 

All principal, interest and Make-Whole Amount payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds
for credit to: 
 JPMorgan Chase Bank 

New York, NY 
 ABA No.:
021-000-021 
 Account Name: GIBPRVAFS2 

Account No.: P30784 (please do not include spaces) 

Each such wire transfer shall set forth the name of the Company, a reference to “3.95% Senior Notes due 10 July 2027, Security No. INV10081, PPN
858586J*2” and the due date and application (as among principal, interest and Make-Whole Amount) of the payment being made. 
 Payments (other
than principal, interest or Make-Whole) 
 All payments, other than principal, interest or Make-Whole Amount, on account of Notes held by such
purchaser shall be made by wire transfer of immediately available funds for credit to: 
 JPMorgan Chase Bank 

New York, NY 
 ABA
No. 021-000-021 
 Account No. 304199036 

Account Name: Prudential International Insurance Service Co. 

Each such wire transfer shall set forth the name of the Company, a reference to “3.95% Senior Notes due 10 July 2027, Security No. INV10081, PPN
858586J*2” and the due date and application (e.g., type of fee) of the payment being made. 

  
 A-13 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Notices 
 All notices with respect to payments, and
written confirmation of each such payment, to be addressed to: 
 The Gibraltar Life Insurance Co., Ltd. 

2-13-10, Nagata-cho 
 Chiyoda-ku,
Tokyo 100-8953, Japan 
 Telephone: 81-3-5501-6680 

Facsimile: 81-3-5501-6432 

E-mail: mizuho.matsumoto@gib-life.co.jp 
  

			
	Attention:		Mizuho Matsumoto, Team Leader of Investment
			Administration Team

 and e-mail copy to: 

Ito_Yuko@gib-life.co.jp 

Maki.Ichihari@gib-life.co.jp 

Kenji.Inoue@gib-life.co.jp 
 All other notices
and communications to be addressed as first provided above. 
 Physical Delivery of Notes 

Prudential Capital Group 
 Two
Prudential Plaza 
 180 N. Stetson Avenue 

Suite 5600 
 Chicago, IL 60601

 Attention: Kim L. Maranda 

Telephone: (312) 540-4246 
 Name of Nominee
in which Notes are to be issued: None 
 Taxpayer I.D. Number: 98-0408643 

  
 A-14 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 FARMERS NEW WORLD LIFE INSURANCE
COMPANY
 Prudential Private Placement Investors, L.P.

c/o Prudential Capital Group
 Two Prudential Plaza

180 N. Stetson Avenue
 Suite 5600

Chicago, IL 60601
 Attention: Managing Director, Corporate
Finance
				$3,750,000

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 JPMorgan
Chase Bank 
 New York, NY 
 ABA
No.: 021000021 
 Account No.: 9009000200 

Account Name: SSG Private Income Processing 

For further credit to Account P58834 Farmers NWL 

Each such wire transfer shall set forth the name of the Company, a reference to “3.95% Senior Notes due 10 July 2027, PPN 858586J*2” and the
due date and application (as among principal, interest and Make-Whole Amount) of the payment being made. 
 Notices 

All notices with respect to payments, and written confirmation of each such payment, to be addressed to: 

investment.accounting@farmersinsurance.com 

or 
 Farmers Insurance Company

 Attention: Investment Accounting Team 

4680 Wilshire Blvd., 4th Floor 

Los Angeles, CA 90010 

and 

investments.operations@farmersinsurance.com 

or 
 Farmers New World Life
Insurance Company 
 Attention: Investment Operations Team 

3003 77th Avenue Southeast, 5th Floor 

Mercer Island, WA 98040-2837 
 All other notices
and communications to be addressed as first provided above. 

  
 A-15 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Physical Delivery of Notes 
  

	(a)	Send physical security to: 

 If sending by overnight delivery: 

JPMorgan Chase Bank, N.A. 
 4
Chase Metrotech Center, 3rd Floor 
 Brooklyn, NY 11245-0001 

Attention: Physical Receive Department 

Brian Cavanaugh 
 Telephone:
(718) 242-0264 
 Please include in the cover letter accompanying the Notes a reference to the Purchaser’s account number
(“P58834 — Farmers New World Life Private Placement”) and CUSIP information. 
  

	(b)	Send copy by nationwide overnight delivery service to: 

 Prudential Capital Group 

Gateway Center 2, 10th Floor 
 100
Mulberry 
 Newark, NJ 07102 

Attention: Trade Management, Manager 

Telephone: (973) 367-3141 
 Name of Nominee
in which Notes are to be issued: None 
 Taxpayer I.D. Number: 91-0335750 

  
 A-16 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

 

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 MID CENTURY INSURANCE COMPANY

Prudential Private Placement Investors, L.P.
 c/o Prudential
Capital Group
 Two Prudential Plaza
 180 N. Stetson Avenue

Suite 5600
 Chicago, IL 60601

Attention: Managing Director, Corporate Finance
				$3,000,000

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 JPMorgan
Chase Bank 
 ABA: 021000021 

Beneficiary Account No: 9009000200 

Beneficiary Account Name: JPMorgan Income 

Ultimate Beneficiary: G23628 Mid Century Insurance Company 

Each such wire transfer shall set forth the name of the Company, a reference to “3.95% Senior Notes due 10 July 2027, PPN 858586J*2” and the
due date and application (as among principal, interest and Make-Whole Amount) of the payment being made. 
 Notices 

All notices with respect to payments, and written confirmation of each such payment, to be addressed to: 

Farmers 
 4680 Wilshire Blvd. 

Los Angeles, CA 90010 
 Attention:
Treasury 
 Treasury: 
 Treasury
Manager 
 323-932-3450 

usw.treasury.farmers@farmersinsurance.com 
 All
other notices and communications to be addressed as first provided above. 

  
 A-17 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Physical Delivery of Notes 
  

	(a)	Send physical security by nationwide overnight delivery 

 service to: 

Mailing Address (for overnight mail) 

JPMorgan Chase Bank, N.A. 

Physical Receive Department 
 4
Chase Metrotech Center 
 3rd Floor 

Brooklyn, NY 11245-0001 

Attention: Brian Cavanaugh, Tel. 718-242-0264 

Please include in the cover letter accompanying the Notes a reference to the Purchaser’s account number (“G23628 — Mid Century
Insurance Company”) and CUSIP information. 
  

	(b)	Send copy by nationwide overnight delivery service to: 

 Prudential Capital Group 

Gateway Center 2, 10th Floor 
 100
Mulberry 
 Newark, NJ 07102 

Attention: Trade Management, Manager 

Telephone: (973) 367-3141 
 Name of Nominee
in which Notes are to be issued: None 
 Taxpayer I.D. Number: 95-6016640 

  
 A-18 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 PHYSICIANS MUTUAL INSURANCE COMPANY

Prudential Private Placement Investors, L.P.

c/o Prudential Capital Group

Two Prudential Plaza

180 N. Stetson Avenue

Suite 5600

Chicago, IL 60601

Attention: Managing Director, Corporate Finance
				$1,250,000

 Payments 
 All
payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 
 The
Northern Trust Company 
 Chicago, IL 

ABA No.: 071000152 
 Account Name:
Physicians Mutual Insurance Company 
 Account No.: 26-27099 

Each such wire transfer shall set forth the name of the Company, a reference to “3.95% Senior Notes due 10 July 2027, PPN 858586J*2” and the due
date and application (as among principal, interest and Make-Whole Amount) of the payment being made. 
 Notices 

All notices with respect to payments, and written confirmation of each such payment, to be addressed to: 

Physicians Mutual Insurance Company 

2600 Dodge Street 
 Omaha, NE
68131 
 Attention: Steve Scanlan 

Facsimile: (402) 633-1096 
 All other notices
and communications to be addressed as first provided above. 

  
 A-19 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

Physical Delivery of Notes 
  

	(a)	Send physical security by nationwide overnight delivery service to: 

 The Northern Trust Company
of New York 
 Harborside Financial Center 10, Suite 1401 

3 Second Street 
 Jersey City, NJ
07311 
 Attention: Jose Mero & Ruby Vega 

Please include in the cover letter accompanying the Notes a reference to the Purchaser’s account number (Physicians Mutual Insurance
Company-Prudential; 26-27099). 
  

	(b)	Send copy by nationwide overnight delivery service to: 

 Prudential Capital Group 

Gateway Center 2, 10th Floor 
 100
Mulberry 
 Newark, NJ 07102 

Attention: Trade Management, Manager 

Telephone: (973) 367-3141 
 Name of Nominee
in which Notes are to be issued: How & Co. 
 Taxpayer I.D. Number: 47-0270450 

  
 A-20 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 THE LINCOLN NATIONAL LIFE INSURANCE
COMPANY
 c/o Delaware Investment Advisers

2005 Market Street, Mail Stop 41-104

Philadelphia, Pennsylvania 19103

Attention: Fixed Income Private Placements

Private Placement Fax: (215) 255-1654
				 $10,000,000

$4,000,000
 $3,000,000

$3,000,000

 Payments 
 All
principal and interest payments on or in respect of the Notes shall be made in immediately available funds via Fed Wire to: 
 The Bank of
New York Mellon 
 New York, NY 

ABA #: 021000018 

BENEFICIARY/Account #: GLA 111566 

Attn: The Bank of New York Mellon Private Placement P & I Dept. 

Bank to Bank Information Ref: insert Custody Account# listed above;  

PPN 858586 J*2/Sec Desc/ P&I Details 

Reference Registered Holder: The Lincoln National Life Insurance Company 

For Further Credit Account Numbers Listed Below: 
  

							
	 NOTE
AMOUNT
	 		 LINCOLN ACCOUNT
NAME
		CUSTODY
NUMBER
	 	$10,000,000	  		The Lincoln National Life Insurance Company — Seg 66		215733
	 	$4,000,000	  		The Lincoln National Life Insurance Company — Seg 62		215730
	 	$3,000,000	  		The Lincoln National Life Insurance Company — Seg 46		215726
	 	$3,000,000	  		The Lincoln National Life Insurance Company — Seg 76		215736

 Notices 
 All
notices of payments on or in respect of the Notes and written confirmation of each such payment to be addressed to: 
 Delaware Investment
Advisers 
 2005 Market Street, Mail Stop 41-104 

Philadelphia, Pennsylvania 19103 

Attention: Fixed Income Private Placements 

Private Placement Fax: 215-255-1654 

  
 A-21 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

With notices of PAYMENT ONLY: 

Lincoln Financial Group 
 1300
South Clinton Street 
 Fort Wayne, Indiana 46802 

Attention: K. Estep — Investment Accounting 

Investment Accounting Fax: 260-455-1441 

and 
 The Bank of New York Mellon

 P. O. Box 392003 

Pittsburgh, PA 15251-9003 

Attention: Private Placement P&I Department 

Registered Holder/Sec Desc/PPN 858586 J*2 

Email: ppservicing@bnymellon.com 
 All other
notices and communications to be addressed as first provided above. 
 Physical Delivery 

The Depository Trust Company 
 570
Washington Blvd — 5th Floor 
 Jersey City, New Jersey 07310 

Attention: BNY Mellon/Branch Deposit Department 

(in cover letter reference note amt, acct name, and bank custody account #) 

Please fax copy of cover letter to: 

Karen Costa — The Bank of New York Mellon — Fax #: 844-601-7769 

Name of Nominee in which Notes are to be issued: None 
 Taxpayer
I.D. Number: 35-0472300 

  
 A-22 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 THE GUARDIAN LIFE INSURANCE COMPANY
OF AMERICA
 7 Hanover Square

New York, NY 10004-2616

Attn: Timothy Powell

Investment Department 9-A

FAX # (212) 919-2658

Email address: timothy_powell@glic.com
				$14,000,000

 Payments 
 All
payments on or in respect of the Notes shall be made by wire transfer to: 
 JP Morgan Chase 

FED ABA #021000021 

Chase/NYC/CTR/BNF 
 A/C
900-9-000200 
 Reference A/C #G05978, Guardian Life, PPN 858586 J*2, Stepan Company 

Notices 
 All notices and communications with
respect to payments and written confirmation of each such payment, to be addressed as first provided above. 
 Physical Delivery of Notes 

JP Morgan Chase Bank, N.A. 
 4
Chase Metrotech Center — 3rd Floor 
 Brooklyn, NY 11245-0001 

Reference A/C #G05978, Guardian Life 
 Name of
Nominee in which Notes are to be issued: None 
 Taxpayer I.D. Number: 13-5123390 

  
 A-23 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 LIFE INSURANCE COMPANY OF NORTH
AMERICA
 CIG & Co. c/o Cigna Investments, Inc.

Attention: Fixed Income Securities

Wilde Building, A5PRI

900 Cottage Grove Rd.

Bloomfield, Connecticut 06002

E-Mail: CIMFixedIncomeSecurities@Cigna.com
				$5,000,000

 Payments 
 All
payments on or in respect of the Notes to be by Federal Funds Wire Transfer to: 
 J. P. Morgan Chase Bank 

BNF=Cigna Private Placements/AC=9009001802 

ABA #021000021 
 OBI = Stepan
Company 3.95% Senior Notes, due July 10, 2027, PPN 858586 J*2 
 Notices 

Address for Notices Related to Payments: 

CIG & Co. 
 c/o Cigna
Investments, Inc. 
 Attention: Fixed Income Securities 

Wilde Building, A5PRI 
 900
Cottage Grove Rd. 
 Bloomfield, Connecticut 06002 

E-Mail: CIMFixedIncomeSecurities@Cigna.com 

Address for All Other Notices to be addressed as first provided above. 

Physical Delivery of Notes 
 J.P.
Morgan Chase Bank, N.A. 
 4 Chase Metrotech Center 

3rd Floor 
 Brooklyn, New York
11245-0001 
 Attention: Physical Receive Department 

(718) 242-0264 
 Name of Nominee in which Notes
are issued: CIG & Co. 
 Taxpayer I.D. Number for CIG & Co.: 13-3574027 

  
 A-24 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

							
			 NAME OF AND ADDRESS

OF PURCHASER
				 PRINCIPAL AMOUNT OF

NOTES TO BE PURCHASED

			
	 CONNECTICUT GENERAL LIFE INSURANCE COMPANY

CIG & Co. c/o Cigna Investments, Inc.

Attention: Fixed Income Securities

Wilde Building, A5PRI

900 Cottage Grove Rd.

Bloomfield, Connecticut 06002

E-Mail: CIMFixedIncomeSecurities@Cigna.com
				 $500,000

$500,000

 Payments 
 All
payments on or in respect of the Notes to be by Federal Funds Wire Transfer to: 
 J. P. Morgan Chase Bank 

BNF=Cigna Private Placements/AC=9009001802 

ABA #021000021 
 OBI = Stepan
Company 3.95% Senior Notes, due July 10, 2027, PPN 858586 J*2 
 Notices 

Address for Notices Related to Payments: 

CIG & Co. 
 c/o Cigna
Investments, Inc. 
 Attention: Fixed Income Securities 

Wilde Building, A5PRI 
 900
Cottage Grove Rd. 
 Bloomfield, Connecticut 06002 

E-Mail: CIMFixedIncomeSecurities@Cigna.com 

Address for All Other Notices to be addressed as first provided above. 

Physical Delivery of Notes 
 J.P.
Morgan Chase Bank, N.A. 
 4 Chase Metrotech Center 

3rd Floor 
 Brooklyn, New York
11245-0001 
 Attention: Physical Receive Department 

(718) 242-0264 
 Name of Nominee in which Notes
are issued: CIG & Co. 
 Taxpayer I.D. Number for CIG & Co.: 13-3574027 

  
 A-25 

 DEFINED TERMS 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 “Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at such time directly or
indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or
equity interests of the Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests. As used in this
definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or
otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. 

“Agreement” means this Agreement, including all Schedules attached to this Agreement, as it may be amended, restated,
supplemented or otherwise modified from time to time. 
 “Anti-Corruption Laws” is defined in Section 5.16(d)(1). 

“Anti-Money Laundering Laws” is defined in Section 5.16(c). 

“Blocked Person” is defined in Section 5.16(a). 

“Bank Credit Agreement” means the Amended and Restated Credit Agreement dated as of July 10, 2014 by and among the
Company, JPMorgan Chase Bank, N.A., as administrative agent, and the other financial institutions party thereto, as amended, restated, joined, supplemented or otherwise modified from time to time, and any renewals, extensions or, refinancings
replacements thereof, which constitute the primary bank credit facility of the Company. 
 “Business Day” means any day
other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed. 

“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the
acquisition of an asset and the incurrence of a liability in accordance with GAAP. 
 “Capital Lease Obligation” means,
with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the lessee under such Capital Lease which would, in accordance with GAAP, appear as a liability on a balance sheet of such Person. 

  

SCHEDULE B 
 (to Note
Purchase Agreement) 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“CISADA” means the Comprehensive Iran Sanctions, Accountability and Divestment Act. 

“Closing” is defined in Section 3 hereof. 

“Closing Date” is the date of the Closing. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated
thereunder from time to time. 
 “Company” means Stepan Company, a Delaware corporation. 

“Confidential Information” is defined in Section 20. 

“Consolidated Adjusted Tangible Net Worth” shall mean the sum of the amounts set forth on the consolidated balance sheet of
the Company and its Subsidiaries prepared in accordance with GAAP and as of any date selected by the Company not more than 45 days prior to the taking of any action for the purpose of which the determination is being made, which appears as
(a) the par or stated value of all outstanding stock, (b) capital, paid-in and earned surplus and (c) long term deferred tax liabilities, less the sum of (i) any surplus resulting from any write-up of assets, (ii) good will,
including any amounts (however designated on such balance sheet) representing the cost of acquisitions of Subsidiaries in excess of underlying tangible assets, unless an appraisal of such assets made by a reputable firm of appraisers at the time of
acquisition shall indicate sufficient value to cover such excess, (iii) any amounts by which Investments in Persons appearing on the asset side of the balance sheet exceed the lesser of cost or the proportionate share of such corporation in the
book value of the assets of such Persons, provided that such book value shall be reduced by any amounts representing restrictions on the payment of dividends by such Persons pursuant to any law, charter provisions, mortgage or indenture or,
in lieu of the foregoing, any Investment may be carried at its market value if the securities representing such Investment are publicly traded, (iv) patents, trademarks, copyrights, leasehold improvements not recoverable at the expiration of a
lease and deferred charges (including, but not limited to, unamortized debt discount and expense, organization expenses, experimental and development expenses, but excluding prepaid expenses), (v) any amounts at which shares of capital stock of
the Company appear on the asset side of such balance sheet, (vi) any amount of Debt not included on the liability side of such balance sheet and (vii) other comprehensive income or expense (as defined by GAAP), to the extent included in
subclause (a), (b) or (c) above. 
 “Consolidated Debt” means as of any date of determination the total amount of all
Debt of the Company and its Restricted Subsidiaries determined on a consolidated basis in accordance with GAAP. 
 “Consolidated
EBIT” shall mean, for any period, Consolidated Net Income for such period, plus, to the extent deducted in computing such Consolidated Net Income and without duplication, (a) Consolidated Interest Expense for such period,
(b) income tax expense for such period, and (c) other non cash charges (including, without limitation, deferred compensation expense, stock option expense and share-based compensation expense) for such period, all determined on a
consolidated basis in accordance with GAAP. 

  
 B-2 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“Consolidated Interest Expense” shall mean, for any period, the gross interest expense of the Company and its Restricted
Subsidiaries deducted in the calculation of Consolidated Net Income for such period, determined on a consolidated basis in accordance with GAAP. 

“Consolidated Net Income” shall mean, for any period, the consolidated net income (or loss) of the Company and its Restricted
Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
 “Consolidated Net Worth” shall
mean the consolidated stockholder’s equity of the Company and its Restricted Subsidiaries, as defined according to GAAP. 

“Consolidated Tangible Net Worth” shall mean the sum of the amounts set forth on the consolidated balance sheet of the
Company and its Restricted Subsidiaries, prepared in accordance with GAAP and as of any date selected by the Company not more than 45 days prior to the taking of any action for the purpose of which the determination is being made, which appears as
(a) the par or stated value of all outstanding stock, (b) capital, paid-in and earned surplus and (c) long term deferred tax liabilities, less the sum of (i) any surplus resulting from any write-up of assets, (ii) good will,
including any amounts (however designated on such balance sheet) representing the cost of acquisitions of Restricted Subsidiaries in excess of underlying tangible assets, unless an appraisal of such assets made by a reputable firm of appraisers at
the time of acquisition shall indicate sufficient value to cover such excess, (iii) any amounts by which Investments in persons appearing on the asset side of such balance sheet exceed the lesser of cost or the proportionate share of such
corporation in the book value of the assets of such persons, provided that such book value shall be reduced by any amounts representing restrictions on the payment of dividends by such persons pursuant to any law, charter provision, mortgage
or indenture or, in lieu of the foregoing, any Investment may be carried at its market value if the securities representing such Investment are publicly traded, (iv) patents, trademarks, copyrights, leasehold improvements not recoverable at the
expiration of a lease and deferred charges (including, but not limited to, unamortized debt discount and expense, organization expenses, experimental and development expenses, but excluding prepaid expenses), (v) any amounts at which shares of
capital stock of the Company appear on the asset side of such balance sheet, (vi) any amount of Debt not included on the liability side of such balance sheet and (vii) other comprehensive income or expense (as defined by GAAP), to the
extent included in subclause (a), (b) or (c) above. 
 “Consolidated Total Assets” means, as of any date of
determination, the total amount of all assets of the Company and its Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP. 

“Consolidated Total Capitalization” means, at any time, the sum of (i) Consolidated Net Worth and (ii) Consolidated
Debt. 

  
 B-3 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“Controlled Entity” means (i) any of the Subsidiaries of the Company and any of their or the Company’s respective
Controlled Affiliates and (ii) if the Company has a parent company, such parent company and its Controlled Affiliates. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

“Debt” means, with respect to any Person, without duplication, 

(a) its liabilities for borrowed money; 

(b) its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable and other
accrued liabilities arising in the ordinary course of business but including, without limitation, all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 

(c) its Capital Lease Obligations; 

(d) its liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it
has assumed or otherwise become liable for such liabilities); and 
 (e) Guarantees by such Person with respect to
liabilities of a type described in any of clauses (a) through (d) hereof. 
 Debt of any Person shall include all obligations of
such Person of the character described in clauses (a) through (e) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. 

“Debt Agreement” with respect to any Person means any note, note agreement, loan agreement or other similar agreement or
instrument that evidences Debt of such Person. 
 “Default” means an event or condition the occurrence or existence of
which would, with the lapse of time or the giving of notice or both, become an Event of Default. 
 “Default Rate” means
that rate of interest that is 2% per annum above the rate of interest stated in clause (a) of the first paragraph of the Notes. 

“Disclosure Documents” is defined in Section 5.3. 

“Electronic Delivery” is defined in Section 7.1(a). 

“Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules,
judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but
not limited to those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 

  
 B-4 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect. 
 “ERISA Affiliate” means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Company under section 414 of the Code. 
 “Event of
Default” is defined in Section 11. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “Fair Market Value” means, at any time and with respect to any property, the sale value of such property that would be
realized in an arm’s-length sale at such time between an informed and willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell), as reasonably determined in the good faith opinion of the Company’s
board of directors. 
 “Form 10-K” is defined in Section 7.1(b). 

“Form 10-Q” is defined in Section 7.1(a). 

“GAAP” means those generally accepted accounting principles as in effect from time to time in the United States of America.

 “Governmental Authority” means 

(a) the government of 

(i) the United States of America or any state or other political subdivision thereof, or 

(ii) any jurisdiction in which the Company or any Restricted Subsidiary conducts all or any part of its business, or which has
jurisdiction over any properties of the Company or any Restricted Subsidiary, or 
 (b) any entity exercising executive,
legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. 
 “Governmental
Official” means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public
international organization or anyone else acting in an official capacity. 

  
 B-5 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of
negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation)
obligations incurred through an agreement, contingent or otherwise, by such Person: 
 (a) to purchase such Debt or
obligation or any property constituting security therefor primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation; 

(b) to advance or supply funds (i) for the purchase or payment of such Debt or obligation, or (ii) to maintain any
working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such Debt or obligation; 

(c) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such Debt or
obligation of the ability of any other Person to make payment of the Debt or obligation; or 
 (d) otherwise to assure the
owner of such Debt or obligation against loss in respect thereof. 
 In any computation of the Debt or other liabilities of the obligor
under any Guaranty, the Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor, provided that the amount of such Debt outstanding for purposes of this Agreement shall not
exceed the maximum amount of Debt that is the subject of such Guaranty. 
 “Hazardous Material” means any and all
pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam
insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances. 

“holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the
Company pursuant to Section 13.1, provided, however, that if such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related definitions in this Schedule B, “holder” shall mean the beneficial owner
of such Note whose name and address appears in such register. 
 “INHAM Exemption” is defined in Section 6.2(e). 

  
 B-6 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or
more of its affiliates) at least $2,000,000 of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any
insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note. 

“Investments” shall mean all investments, in cash or by delivery of property made, directly or indirectly in any Person,
whether by acquisition of shares of capital stock, Debt or other obligations or securities or by loan, advance, capital contribution or otherwise. 

“Lease Rentals” shall mean, for any period, the aggregate amount of fixed rental or operating lease expense payable by the
Company and its Restricted Subsidiaries with respect to leases of real and personal property (excluding Capital Lease Obligations) determined in accordance with GAAP. 

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any
interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement (other than an operating lease) or Capital Lease, upon or with respect to any property or asset
of such Person (including, in the case of stock, shareholder agreements, voting trust agreements and all similar arrangements). 

“Make-Whole Amount” shall have the meaning set forth in Section 8.6 with respect to any Note. 

“Material” means material in relation to the business, operations, affairs, financial condition, assets or properties of the
Company and its Restricted Subsidiaries taken as a whole. 
 “Material Adverse Effect” means a material adverse effect on
(a) the business, operations, affairs, financial condition, assets or properties of the Company and its Restricted Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement and the
Notes, (c) the ability of any Subsidiary Guarantor to perform its obligations under the Subsidiary Guaranty or (d) the validity or enforceability of this Agreement, the Notes or the Subsidiary Guaranty. 

“Material Subsidiary” means, at any time, any Restricted Subsidiary of the Company which, together with all other Restricted
Subsidiaries of such Restricted Subsidiary, accounts for more than (i) 5% of the consolidated assets of the Company and its Restricted Subsidiaries or (ii) 5% of consolidated revenue of the Company and its Restricted Subsidiaries. 

“Memorandum” is defined in Section 5.3. 

“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
Section 4001(a)(3) of ERISA). 

  
 B-7 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“NAIC” means the National Association of Insurance Commissioners or any successor thereto. 

“Notes” is defined in Section 1. 

“OFAC” is defined in Section 5.16(a). 

“OFAC Listed Person” is defined in Section 5.16(a). 

“OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing. A
list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx. 

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose
responsibilities extend to the subject matter of such certificate. 
 “PBGC” means the Pension Benefit Guaranty Corporation
referred to and defined in ERISA or any successor thereto. 
 “Person” means an individual, partnership, corporation,
limited liability company, association, trust, unincorporated organization, business entity or a Governmental Authority. 

“Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is or, within the preceding
five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA
Affiliate may have any liability. 
 “Priority Debt” means (without duplication), as of the date of any determination
thereof, the sum of (i) all unsecured Debt of Subsidiaries (including all Guaranties of Debt but excluding (x) Debt owing to the Company or any other Subsidiary, (y) Debt outstanding at the time such Person became a Subsidiary,
provided that such Debt shall have not been incurred in contemplation of such Person becoming a Subsidiary, and (z) all Debt of Subsidiary Guarantors, and (ii) all Debt of the Company and its Subsidiaries secured by Liens other than
Debt secured by Liens permitted by subparagraphs (a) through (i), inclusive, of Section 10.5 (including for purposes of such subparagraphs, Debt secured by Liens on assets of Unrestricted Subsidiaries in the same manner as Liens are
permitted on the assets of Restricted Subsidiaries in such subparagraphs, except that, solely for purposes of this definition of Priority Debt, subparagraph (f) of Section 10.5 shall be read as permitting only Liens existing as of the
Closing Date and reflected in Schedule 10.5 with respect to Unrestricted Subsidiaries). 
 “property” or
“properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. 

“PTE” is defined in Section 6.2(a). 

  
 B-8 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“Purchaser” or “Purchasers” means each of the purchasers that has executed and delivered this Agreement to
the Company and such Purchaser’s successors and assigns (so long as any such assignment complies with Section 13.2), provided, however, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner
(through a nominee) of such Note as the result of a transfer thereof pursuant to Section 13.2 shall cease to be included within the meaning of “Purchaser” of such Note for the purposes of this Agreement upon such transfer. 

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning
of such term as set forth in Rule 144A(a)(1) under the Securities Act. 
 “QPAM Exemption” is defined in
Section 6.2(e). 
 “Receivables Facility Counterpart Counterparty” is defined in Section 10.6. 

“Receivables Purchase Agreement” is defined in Section 10.6. 

“Related Fund” means, with respect to any holder of any Note, any fund or entity that (i) invests in Securities or bank
loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor. 

“Required Holders” means, at any time, the holders of more than 50% in principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Company or any of its Affiliates and any Notes held by parties who are contractually required to abstain from voting with respect to matters affecting the holders of the Notes). 

“Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the
administration of the relevant portion of this Agreement. 
 “Restricted Subsidiary” means any Subsidiary in which:
(i) at least a majority of the voting securities are owned by the Company and/or one or more Restricted Subsidiaries and (ii) the Company has not designated an Unrestricted Subsidiary by notice in writing given to the holders of the Notes.

 “SEC” means the Securities and Exchange Commission of the United States, or any successor thereto. 

“Securities” or “Security” shall have the meaning specified in section 2(a)(1) of the Securities Act.

 “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect. 
 “Senior Debt” means, as of the date of any determination thereof,
all Consolidated Debt, other than Subordinated Debt. 

  
 B-9 

			
	STEPAN COMPANY		NOTE PURCHASE AGREEMENT

  

“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the
Company. 
 “Source” is defined in Section 6.2. 

“Subordinated Debt” means all unsecured Debt of the Company which shall contain or have applicable thereto subordination
provisions providing for the subordination thereof to other Debt of the Company (including, without limitation, the obligations of the Company under this Agreement or the Notes). 

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such
first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions)
of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries
(unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Company. 
 “Subsidiary Guarantor” means each Subsidiary which
is party to a Subsidiary Guaranty. 
 “Subsidiary Guaranty” is defined in Section 2.2 of this Agreement. 

“Substitute Purchaser” is defined in Section 21. 

“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office. 

“Unfunded Liabilities” means (i) in the case of Plans (other than Multiemployer Plans) the amount (if any) by which the
present value of all vested nonforfeitable benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as of the then most recent valuation date for such Plan, and (ii) in the case of
Multiemployer Plans, the withdrawal liability of the Company and Subsidiaries. The interest rate for computing the present value of all vested nonforfeitable benefits shall be the Valuation Liability Interest Rate, as indicated on Form 5500 Schedule
B for such Plan. For purposes of this defined term ‘Unfunded Liabilities’ only, the term ‘Plan’ means an employee pension benefit plan which is covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Internal Revenue Code as to which the Company or any Subsidiary may have any liability. 
 “Unrestricted
Subsidiary” means any Subsidiary so designated by the Company. 
 “USA PATRIOT Act” means United States Public Law
107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time
in effect. 
 “U.S. Economic Sanctions” is defined in Section 5.16(a). 

  
 B-10 

 SUBSIDIARIES OF THE COMPANY
AND OWNERSHIP OF SUBSIDIARY STOCK 

SUBSIDIARIES OF THE COMPANY 

 

											
	 CORPORATE NAME
	  	JURISDICTION
OF INCORPORATION OR
FORMATION	  	PERCENTAGE
OF
SHARES
HELD
OR
BENEFICIALLY
OWNED	 	 	RESTRICTED
SUBSIDIARY
(Y/N)	 
	 Stepan Holdings, LLC
	  	United States	  	 	100	% 	 	 	Y	  
	 Stepan Canada Inc.
	  	Canada	  	 	100	% 	 	 	Y	  
	 Stepan Asia Pte. Ltd.
	  	Singapore	  	 	100	% 	 	 	Y	  
	 Stepan Specialty Products, LLC
	  	United States	  	 	100	% 	 	 	Y	  
	 Stepan Specialty Products B.V.
	  	Netherlands	  	 	100	% 	 	 	Y	  
	 Stepan Europe S.A.S.
	  	France	  	 	100	% 	 	 	N	  
	 Stepan Mexico, S.A. de C.V.
	  	Mexico	  	 	100	% 	 	 	N	  
	 Stepan Quimica Ltda.
	  	Brazil	  	 	100	% 	 	 	Y	  
	 Stepan Colombia S.A.S.
	  	Colombia	  	 	100	% 	 	 	N	  
	 Stepan UK Limited
	  	England and Wales	  	 	100	% 	 	 	N	  
	 Stepan Deutschland GmbH
	  	Germany	  	 	100	% 	 	 	N	  
	 Stepan Polska Sp. z o.o.
	  	Poland	  	 	100	% 	 	 	N	  
	 Stepan Philippines, Inc.
	  	Philippines	  	 	100	% 	 	 	N	  
	 Stepan Philippines Quaternaries, Inc.
	  	Philippines	  	 	100	% 	 	 	N	  
	 Stepan India (Private) Limited
	  	India	  	 	100	% 	 	 	N	  
	 Stepan Chemical (Nanjing) Co., Ltd.
	  	China	  	 	100	% 	 	 	N	  
	 Nanjing Stepan Jinling Chemical LLC. (Joint Venture)
	  	China	  	 	80	% 	 	 	N	  
	 Stepan Chemical (Shanghai) Co., Ltd.
	  	China	  	 	100	% 	 	 	N	  
	 Stepan (Nanjing) Chemical R&D Co., Ltd.
	  	China	  	 	100	% 	 	 	N	  
	 Stepan International Trading (Shanghai) Co., Ltd.
	  	China	  	 	100	% 	 	 	N	  

  

SCHEDULE 5.4 
 (to
Note Purchase Agreement) 

 AFFILIATES OF THE COMPANY 

 

							
	 CORPORATE NAME
	  	JURISDICTION
OF
INCORPORATION
OR FORMATION	  	PERCENTAGE
OF
SHARES
HELD
OR
BENEFICIALLY
OWNED	 
	 Tiorco, LLC (Joint Venture)
	  	United States	  	 	50	% 

 As of the Closing Date, the Company’s directors are Michael R. Boyce, Randall S. Dearth, Joaquin Delgado, Gregory E.
Lawton, F. Quinn Stepan, F. Quinn Stepan, Jr., and Edward J. Wehmer. 
 As of the Closing Date, the Company’s senior officers are F. Quinn Stepan, F.
Quinn Stepan, Jr., Frank Pacholec, Greg Servatius, Scott C. Mason, Scott D. Beamer, Arthur W. Mergner, Scott R. Behrens, and Kathleen O. Sherlock. 

  
 5.4-2 

 FINANCIAL STATEMENTS 

 

	1.	Financial statements for the quarterly period ended March 31, 2015 

  

	2.	Financial statements for the fiscal years ended December 31, 2010, December 31, 2011, December 31, 2012, December 31, 2013 and December 31, 2014 

  

SCHEDULE 5.5 
 (to
Note Purchase Agreement) 

 LICENSES, PERMITS, ETC. 

None. 

  

SCHEDULE 5.11 
 (to
Note Purchase Agreement) 

 EXISTING DEBT 

Indebtedness of the Company and its Restricted Subsidiaries on May 31, 2015 

 

													
	 OBLIGOR
	  	 CREDITOR
	  	DESCRIPTION OF
INDEBTEDNESS
(INCLUDING
INTEREST RATE)	  	COLLATERAL
(IF ANY)	  	MATURITY	  	OUTSTANDING
PRINCIPAL
AMOUNT 
(000’S)	 
	 Stepan Company
	  	JPMorgan Chase Bank, N.A. (as Agent)	  	Credit Agreement
(various rates)	  	None	  	2019	  	$	20,000	  
	 Stepan Company
	  	The Northwestern Mutual Life Insurance Company	  	6.86% Notes	  	None	  	2015	  	$	2,856	  
	 Stepan Company
	  	The Northwestern Mutual Life Insurance Company for its Group Annuity	  	6.86% Notes	  	None	  	2015	  	$	143	  
	 Stepan Company
	  	Thrivent Financial for Lutherans	  	6.86% Notes	  	None	  	2015	  	$	428	  
	 Stepan Company
	  	The Mutual Life Insurance Company of New York	  	6.86% Notes	  	None	  	2015	  	$	428	  
	 Stepan Company
	  	Prudential Investment Management	  	6.86% Notes	  	None	  	2015	  	$	428	  
	 Stepan Company
	  	Alliance Capital	  	5.69% Notes	  	None	  	2018	  	$	11,429	  
	 Stepan Company
	  	CIGNA	  	5.69% Notes	  	None	  	2018	  	$	11,429	  
	 Stepan Company
	  	Prudential Investment Management	  	5.88% Notes	  	None	  	2022	  	$	20,000	  
	 Stepan Company
	  	AXA/Alliance Capital	  	5.88% Notes	  	None	  	2022	  	$	10,000	  
	 Stepan Company
	  	CIGNA	  	5.88% Notes	  	None	  	2022	  	$	10,000	  
	 Stepan Company
	  	Prudential Investment Management	  	4.86% Notes	  	None	  	2023	  	$	22,500	  

  

SCHEDULE 5.15 
 (to
Note Purchase Agreement) 

													
	 OBLIGOR
	  	 CREDITOR
	  	DESCRIPTION OF
INDEBTEDNESS
(INCLUDING
INTEREST RATE)	  	COLLATERAL
(IF ANY)	  	MATURITY	  	OUTSTANDING
PRINCIPAL
AMOUNT 
(000’S)	 
	 Stepan Company
	  	Mutual of Omaha Insurance Company	  	4.86% Notes	  	None	  	2023	  	$	15,000	  
	 Stepan Company
	  	New York Life Insurance and Annuity Corporation	  	4.86% Notes	  	None	  	2023	  	$	10,600	  
	 Stepan Company
	  	New York Life Insurance Company	  	4.86% Notes	  	None	  	2023	  	$	9,400	  
	 Stepan Company
	  	RGA Reinsurance Company	  	4.86% Notes	  	None	  	2023	  	$	7,500	  
	 Stepan Company
	  	Babson Capital Management LLC	  	3.86% Notes	  	None	  	2025	  	$	40,000	  
	 Stepan Company
	  	Delaware Investment Advisors	  	3.86% Notes	  	None	  	2025	  	$	25,000	  
	 Stepan Company
	  	The Guardian Life Insurance Company of America	  	3.86% Notes	  	None	  	2025	  	$	18,000	  
	 Stepan Company
	  	AXA Equitable Life Insurance Company/Alliance Bernstein	  	3.86% Notes	  	None	  	2025	  	$	10,000	  
	 Stepan Company
	  	Great-West Life & Annuity Insurance Company	  	3.86% Notes	  	None	  	2025	  	$	7,000	  

  
 5.15-2 

 EXISTING LIENS 

Debt of Foreign Subsidiaries Secured by Liens as of May 31, 2015 

 

													
	 OBLIGOR
	  	CREDITOR	  	DESCRIPTION
OF
INDEBTEDNESS	  	SECURITY	  	MATURITY	  	OUTSTANDING
PRINCIPAL
AMOUNT 
(000’S)	 
	 Stepan Europe S.A.S.
	  	LCL	  	Term Loan	  	General
Intangibles	  	2015	  	$	275	  
	 Stepan UK Limited
	  	HSBC	  	Short-Term
Credit Line	  	Accounts
Receivable	  	2015	  	$	3,511	  
	 Stepan Quimica Ltda.
	  	Banco Itau	  	Short-Term
Credit Line	  	Accounts
Receivable	  	2015	  	$	0	  

  

SCHEDULE 10.5 
 (to
Note Purchase Agreement) 

 [FORM OF NOTE] 

STEPAN COMPANY 

3.95% SENIOR NOTE DUE JULY 10, 2027 

 

			
	No. [            ]		July 10, 2015
	$[            ]		PPN 858586 J*2

 For Value Received, the undersigned, Stepan Company (herein called the “Company”), a
corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to [            ], or registered assigns, the principal sum of
[            ] Dollars (or so much thereof as shall not have been prepaid) on July 10, 2027 (the “Maturity Date”), with interest (computed on the basis
of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at the rate of 3.95% per annum from the date hereof, payable semiannually, on the 10th day of July and January in each year, commencing with the July 10 or
January 10 next succeeding the date hereof, and on the Maturity Date, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, (x) on any overdue payment of interest and (y) during the
continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount, at a rate per annum equal to 5.95%, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).

 Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United
States of America at Bank of America, N.A. in New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below. 

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase
Agreement, dated as of July 10, 2015 (as from time to time amended, the “Note Purchase Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this
Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note
Purchase Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement. 

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the
name of, the transferee. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the
Company will not be affected by any notice to the contrary. 

  

EXHIBIT 1 
 (to Note
Purchase Agreement) 

 The Company will make required prepayments of principal on the date and in the amounts specified
in the Note Agreement. This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise. 

If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement. 

This Note shall be construed and enforced in accordance with, and the rights of the issuer and holder hereof shall be governed by, the law of
the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State. 

 

							
	STEPAN COMPANY
		
	By	 	 
		 	Name:	 	 
		 	Title:	 	 

  
 E-1-2 

 FORM OF SUBSIDIARY GUARANTY

 GUARANTY 
 THIS
GUARANTY (as the same may be amended, restated, supplemented or otherwise modified from time to time, this “Guaranty”) is made as of July 10, 2015, by Stepan Specialty Products, LLC, a Delaware limited liability company
(together with any Subsidiaries which become parties to this Guaranty by executing a Supplement hereto in the form attached hereto as Annex I, the “Guarantors”), for the benefit of the holders from time to time of the Notes
(as defined below) (the “Holders”). 
 WITNESSETH: 

WHEREAS, Stepan Company, a Delaware corporation (the “Borrower”), has entered into that certain Note Purchase Agreement,
dated as of July 10, 2015 (the “Note Purchase Agreement”), by and among the Borrower and the purchasers named therein. 

WHEREAS, the Borrower has authorized the issuance of and, pursuant to the Note Purchase Agreement, proposes to issue and sell on the date
hereof its 3.95% Senior Notes, due July 10, 2027 (the “Notes”) pursuant to the Note Purchase Agreement. 
 WHEREAS,
pursuant to Section 9.8 of the Note Purchase Agreement, the Borrower has agreed that certain of its Subsidiaries (each a “Guarantor” and, collectively, the “Guarantors”) will guarantee the Borrower’s
obligations under the Notes and the Note Purchase Agreement; 
 WHEREAS, the Guarantors hereby execute and deliver this Guaranty, whereby
each of the Guarantors, without limitation and with full recourse, shall guarantee the payment when due of all of the “Guaranteed Obligations” (as defined below); and 

WHEREAS, the Guarantors each acknowledge that they have and will continue to derive substantial benefits from the issuance of the Notes, and
each of the Guarantors is willing to guarantee the Guaranteed Obligations; 
 NOW, THEREFORE, in consideration of the foregoing premises and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

SECTION 1. Definitions. Terms defined in the Note Purchase Agreement and not otherwise defined herein have, as used herein, the
respective meanings provided for therein. 
 SECTION 2. Representations, Warranties and Covenants. Each of the Guarantors
represents and warrants to each Holder as of the date of this Agreement that: 
 (A) It (i) is a corporation, partnership or limited
liability company, duly incorporated or organized, as the case may be, validly existing and in good standing under the laws of its jurisdiction of incorporation or organization, (ii) is duly qualified to do business as a foreign entity and is
in good standing under the laws of each jurisdiction where the business by it makes such qualification necessary, 

  

EXHIBIT 2.2 
 (to
Note Purchase Agreement) 

 
and (iii) has all requisite corporate, partnership or limited liability power and authority, as the case may be, to own, operate and encumber its property and to conduct its business in each
jurisdiction in which its business is conducted except to the extent that the failure to have such authority could not reasonably be expected to have a material adverse effect (a) on the business, financial condition, operations or properties
of a Guarantor taken as a whole or (b) on its ability to perform its obligations hereunder. 
 (B) It has the requisite corporate,
limited liability company or partnership, as applicable, power and authority and legal right to execute and deliver this Guaranty and to perform its obligations hereunder. The execution and delivery by it of this Guaranty and the performance of each
of its obligations hereunder have been duly authorized by proper proceedings, and this Guaranty constitutes a legal, valid and binding obligation of each Guarantor, enforceable against such Guarantor, in accordance with its terms, except as
enforceability may be limited by (i) bankruptcy, insolvency, fraudulent conveyances or transfers, reorganization or similar laws relating to or affecting the enforcement of creditors’ rights generally, (ii) general equitable
principles (whether considered in a proceeding in equity or at law), and (iii) requirements of reasonableness, good faith and fair dealing. 

(C) Neither the execution and delivery by it of this Guaranty, nor the consummation by it of the transactions herein contemplated, nor
compliance by it with the terms and provisions hereof, will (i) conflict with the charter or other organizational documents of such Guarantor, (ii) conflict with, result in a breach of or constitute (with or without notice or lapse of time
or both) a default under any law, rule, regulation, order, writ, judgment, injunction, decree or award (including, without limitation, any environmental property transfer laws or regulations) applicable to such Guarantor or any provisions of any
indenture, instrument or agreement to which such Guarantor is party or is subject or which it or its property is bound or affected, or require termination of any such indenture, instrument or agreement, (iii) result in or require the creation
or imposition of any Lien whatsoever upon any of the property or assets of such Guarantor, other than Liens permitted or created by the Note Purchase Agreement, or (iv) require any approval of such Guarantor’s board of directors or
shareholders or unitholders except such as have been obtained. The execution, delivery and performance by the Guarantors of this Guaranty do not and will not require any registration with, consent or approval of, or notice to, or other action to,
with or by any governmental authority, including under any environmental property transfer laws or regulations, except filings, consents or notices which have been made. 

In addition to the foregoing, each of the Guarantors covenants that, so long as any amount is payable under the Note Purchase Agreement or the
Notes or any other Guaranteed Obligations shall remain unpaid, it will, and, if necessary, will enable the Borrower to, fully comply with those covenants and agreements of the Borrower applicable to such Guarantor set forth in the Note Purchase
Agreement. 
 SECTION 3. The Guaranty. Each of the Guarantors hereby unconditionally guarantees, jointly with the other Guarantors
and severally, as a primary obligor and not merely as a surety, to each Holder and its successors, transfers and assigns, the full and punctual payment and performance when due, whether at stated maturity, upon acceleration or otherwise, of the
principal of and Make-Whole Amount and interest on (including, without limitation, interest whether or not an allowable claim, accruing after the date of filing of any petition in bankruptcy, or the commencement of any bankruptcy, insolvency or
similar proceeding relating to the Borrower) the Notes issued from time to time, including Additional Notes issued after the date hereof, and all other amounts under the Note Purchase Agreement and all other obligations, agreements and covenants of
the Borrower now or hereafter existing under the Note Purchase 

  
 S-2.2-2 

 
Agreement whether for principal, Make-Whole Amount, interest (including interest accruing both prior to and subsequent to the commencement of any proceeding against or with respect to the
Borrower under any chapter of the Bankruptcy Code), indemnification payments, expenses (including attorneys’ fee and expenses) or otherwise, and all costs and expenses, if any, incurred by any Holder in connection with enforcing any rights
under this Guaranty (all of the foregoing being referred to collectively as the “Guaranteed Obligations” and the holders from time to time of the Guaranteed Obligations being referred to collectively as the “Holders of
Guaranteed Obligations”). Upon (x) the failure by the Borrower to pay punctually any such amount or perform such obligation, and (y) such failure continuing beyond any applicable grace or notice and cure period, each of the
Guarantors agrees that it shall forthwith on demand pay such amount or perform such obligation at the place and in the manner specified in the Note Purchase Agreement. Each of the Guarantors hereby agrees that this Guaranty is an absolute,
irrevocable, unconditional, present and continuing guaranty of payment and is not a guaranty of collection, and is no way conditioned upon any attempt to collect from the Borrower or any other action, occurrence or circumstance whatsoever. 

Notwithstanding any stay, injunction or other prohibition preventing such action against the Borrower, if for any reason whatsoever the
Borrower shall fail or be unable duly, punctually and fully to perform and (in the case of the payment of the Guaranteed Obligations) pay such amounts as and when the same shall become due and (in the case of the payment of the Guaranteed
Obligations) payable or to perform or comply with any other Guaranteed Obligation, whether or not such failure or inability shall constitute an “Event of Default” under the Note Purchase Agreement or the Notes, each Guarantor will
forthwith (in the case of the payment of Guaranteed Obligations) pay or cause to be paid such amounts to the Holders, in lawful money of the United States of America, at the place specified in the Note Purchase Agreement, or perform or comply with
such Guaranteed Obligations or cause such Guaranteed Obligations to be performed or complied with, (in the case of the payment of Guaranteed Obligations) together with interest (in the amounts and to the extent required under such Notes) on any
amount due and owing. 
 SECTION 4. Guaranty Unconditional. The obligations of each of the Guarantors hereunder shall be
unconditional and absolute and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 

(A) any extension, renewal, settlement, indulgence, compromise, waiver or release of or with respect to the Guaranteed
Obligations or any part thereof or any agreement relating thereto, or with respect to any obligation of any other guarantor of any of the Guaranteed Obligations, whether (in any such case) by operation of law or otherwise, or any failure or omission
to enforce any right, power or remedy with respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto, or with respect to any obligation of any other guarantor of any of the Guaranteed Obligations; 

(B) any modification or amendment of or supplement to the Note Purchase Agreement, including, without limitation, any such
amendment which may increase the amount of, or the interest rates applicable to, any of the Guaranteed Obligations guaranteed hereby; 

(C) any release, surrender, compromise, settlement, waiver, subordination or modification, with or without consideration, of
any collateral securing the Guaranteed 

  
 S-2.2-3 

 
Obligations or any part thereof, any other guaranties with respect to the Guaranteed Obligations or any part thereof, or any other obligation of any person or entity with respect to the
Guaranteed Obligations or any part thereof, or any nonperfection or invalidity of any direct or indirect security for the Guaranteed Obligations; 

(D) any change in the corporate, partnership or other existence, structure or ownership of the Borrower or any other guarantor
of any of the Guaranteed Obligations, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Borrower or any other guarantor of the Guaranteed Obligations, or any of their respective assets or any resulting release
or discharge of any obligation of the Borrower or any other guarantor of any of the Guaranteed Obligations; 
 (E) the
existence of any claim, setoff or other rights which the Guarantors may have at any time against the Borrower, any other guarantor of any of the Guaranteed Obligations, any Holder of Guaranteed Obligations or any other Person, whether in connection
herewith or in connection with any unrelated transactions; provided that nothing herein shall prevent the assertion of any such claim by separate suit or compulsory counterclaim; 

(F) the enforceability or validity of the Guaranteed Obligations or any part thereof or the genuineness, enforceability or
validity of any agreement relating thereto or with respect to any collateral securing the Guaranteed Obligations or any part thereof, or any other invalidity or unenforceability relating to or against the Borrower or any other guarantor of any of
the Guaranteed Obligations, for any reason related to the Note Purchase Agreement, the Notes or any provision of applicable law, decree, order or regulation of any jurisdiction purporting to prohibit the payment by the Borrower or any other
guarantor of the Guaranteed Obligations, of any of the Guaranteed Obligations or otherwise affecting any term of any of the Guaranteed Obligations; 

(G) the failure of the Holders to take any steps to perfect and maintain any security interest in, or to preserve any rights
to, any security or collateral for the Guaranteed Obligations, if any; 
 (H) the election by, or on behalf of, any one or
more of the Holders of Guaranteed Obligations, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code (11 U.S.C. 101 et seq.) (the “Bankruptcy Code”), of the application of Section 1111(b)(2) of the
Bankruptcy Code; 
 (I) any borrowing or grant of a security interest by the Borrower, as debtor-in-possession, under
Section 364 of the Bankruptcy Code; 
 (J) the disallowance, under Section 502 of the Bankruptcy Code, of all or
any portion of the claims of the Holders of Guaranteed Obligations for repayment of all or any part of the Guaranteed Obligations; 

(K) the failure of any other guarantor to sign or become party to this Guaranty or any amendment, change, or reaffirmation
hereof; or 

  
 S-2.2-4 

 (L) any other act or omission to act or delay of any kind by the Borrower, any
other guarantor of the Guaranteed Obligations, any Holder of Guaranteed Obligations or any other Person or any other circumstance whatsoever which might, but for the provisions of this Section 4, constitute a legal or equitable discharge of any
Guarantor’s obligations hereunder except as provided in Section 5. 
 SECTION 5. Discharge Only Upon Payment In Full:
Reinstatement In Certain Circumstances. 
 (A) Each of the Guarantors’ obligations hereunder shall remain in full
force and effect and shall not be discharged until such time as all of the principal of, Make-Whole Amount and interest on the Notes, the other Guaranteed Obligations and all other independent payment obligations of such Guarantor under the Guaranty
shall have been paid in full in cash and performed in full, and all of the agreements of each of the other Guarantors hereunder shall be duly paid in cash and performed in full. If at any time any payment of the principal of, Make-Whole Amount, or
interest on any Note or any other amount payable by the Borrower or any other party under the Note Purchase Agreement or any Note is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the
Borrower or otherwise, each of the Guarantors’ obligations hereunder with respect to such payment shall be reinstated as though such payment had been due but not made at such time. 

(B) A Guarantor shall automatically be released from its obligations hereunder in the event that all of the capital stock of
such Guarantor shall be sold, transferred or otherwise disposed of, or the assets of such Guarantor shall be sold, transferred or otherwise disposed of substantially in their entirety, in each case to a Person that is not the Borrower in accordance
with the terms of the Note Purchase Agreement. 
 (C) In connection with any termination or release pursuant to paragraph
(A) or (B) of this Section 5 the Holders shall execute and deliver to any Guarantor, as the case may be, at such Guarantor’s expense, all documents that such Guarantor shall reasonably request to evidence such termination or
release. Any execution and delivery of documents pursuant to this Section 5 shall be without recourse to or warranty by the Holders. 

SECTION 6. General Waivers; Additional Waivers. 

(A) General Waivers. Each of the Guarantors irrevocably waives acceptance hereof, presentment, demand or action on
delinquency, protest, the benefit of any statutes of limitations and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against the Borrower, any
other guarantor of the Guaranteed Obligations, or any other Person. 
 (B) Additional Waivers. Notwithstanding
anything herein to the contrary, each of the Guarantors hereby absolutely, unconditionally, knowingly, and expressly waives: 

(i) any right it may have to revoke this Guaranty as to future indebtedness or notice of acceptance hereof; 

  
 S-2.2-5 

 (ii) (a) notice of acceptance hereof; (b) notice of any financial
accommodations made or extended under the Note Purchase Agreement or the creation or existence of any Guaranteed Obligations; (c) notice of the amount of the Guaranteed Obligations, subject, however, to each Guarantor’s right to make
inquiry of the Holders of Guaranteed Obligations to ascertain the amount of the Guaranteed Obligations at any reasonable time; (d) notice of any adverse change in the financial condition of the Borrower or of any other fact that might increase
such Guarantor’s risk hereunder; (e) notice of presentment for payment, demand, protest, and notice thereof as to any instruments under the Note Purchase Agreement or the Notes; (f) notice of any Default or Event of Default; and
(g) all other notices (except if such notice is specifically required to be given to such Guarantor hereunder or under the Note Purchase Agreement) and demands to which each Guarantor might otherwise be entitled; 

(iii) its right, if any, to require the Holders of Guaranteed Obligations to institute suit against, or to exhaust any rights
and remedies which the Holders of Guaranteed Obligations have or may have against, the other Guarantors or any third party, or against any collateral provided by the other Guarantors, or any third party; and each Guarantor further waives any defense
arising by reason of any disability or other defense (other than the defense that the Guaranteed Obligations shall have been fully and finally performed and indefeasibly paid) of the other Guarantors or by reason of the cessation from any cause
whatsoever of the liability of the other Guarantors in respect thereof; 
 (iv) (a) any rights to assert against the
Holders of Guaranteed Obligations any defense (legal or equitable), set-off, counterclaim, or claim which such Guarantor may now or at any time hereafter have against the other Guarantors or any other party liable to the Holders of Guaranteed
Obligations; (b) any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the Guaranteed Obligations or any
security therefor; (c) any defense such Guarantor has to performance hereunder, and any right such Guarantor has to be exonerated, arising by reason of: the impairment or suspension of the Holders of Guaranteed Obligations’ rights or
remedies against the other Guarantors; the alteration by the Holders of Guaranteed Obligations of the Guaranteed Obligations; any discharge of the other Guarantors’ obligations to the Holders of Guaranteed Obligations by operation of law as a
result of the Holders of Guaranteed Obligations’ intervention or omission; or the acceptance by the Holders of Guaranteed Obligations of anything in partial satisfaction of the Guaranteed Obligations; and (d) the benefit of any statute of
limitations affecting such Guarantor’s liability hereunder or the enforcement thereof, and any act which shall defer or delay the operation of any statute of limitations applicable to the Guaranteed Obligations shall similarly operate to defer
or delay the operation of such statute of limitations applicable to such Guarantor’s liability hereunder; and 
 (v) any
defense arising by reason of or deriving from (a) any claim or defense based upon an election of remedies by the Holders of Guaranteed Obligations; or (b) any election by the Holders of Guaranteed Obligations under Section 1111(b) of
Title 11 of the United States Code entitled “Bankruptcy”, as now and hereafter in effect (or any successor statute), to limit the amount of, or any collateral securing, its claim against the Guarantors. 

  
 S-2.2-6 

 SECTION 7. Subordination of Subrogation; Subordination of Intercompany Indebtedness. 

(A) Subordination of Subrogation. Until the Guaranteed Obligations have been fully and finally performed and
indefeasibly paid in full in cash (other than contingent indemnity obligations), the Guarantors (i) shall have no right of subrogation with respect to such Guaranteed Obligations and (ii) waive any right to enforce any remedy which the
Holders of Guaranteed Obligations now have or may hereafter have against the Borrower, any endorser or any guarantor of all or any part of the Guaranteed Obligations or any other Person, and the Guarantors waive any benefit of, and any right to
participate in, any security or collateral given to the Holders of Guaranteed Obligations to secure the payment or performance of all or any part of the Guaranteed Obligations or any other liability of the Borrower to the Holders of Guaranteed
Obligations. Should any Guarantor have the right, notwithstanding the foregoing, to exercise its subrogation rights, each Guarantor hereby expressly and irrevocably (a) subordinates any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off that such Guarantor may have to the indefeasible payment in full in cash of the Guaranteed Obligations (other than contingent indemnity obligations) and (b) waives any and all
defenses available to a surety, guarantor or accommodation co-obligor until the Guaranteed Obligations are indefeasibly paid in full in cash and performed in full. Each Guarantor acknowledges and agrees that this subordination is intended to benefit
the Holders of Guaranteed Obligations and shall not limit or otherwise affect such Guarantor’s liability hereunder or the enforceability of this Guaranty, and that the Holders of Guaranteed Obligations and their successors and assigns are
intended third party beneficiaries of the waivers and agreements set forth in this Section 7(A). 
 (B) Subordination
of Intercompany Indebtedness. Each Guarantor agrees that any and all claims of such Guarantor against the Borrower or any other Guarantor hereunder (each an “Obligor”) with respect to any “Intercompany Indebtedness”
(as hereinafter defined), any endorser, obligor or any other guarantor of all or any part of the Guaranteed Obligations, or against any of its properties shall be subordinate and subject in right of payment to the prior payment, in full and in cash,
of all Guaranteed Obligations; provided that, as long as no Event of Default has occurred and is continuing, such Guarantor may receive payments of principal and interest from any Obligor with respect to Intercompany Indebtedness.
Notwithstanding any right of any Guarantor to ask, demand, sue for, take or receive any payment from any Obligor, all rights, liens and security interests of such Guarantor, whether now or hereafter arising and howsoever existing, in any assets of
any other Obligor shall be and are subordinated to the rights of the Holders of Guaranteed Obligations in those assets. No Guarantor shall have any right to possession of any such asset or to foreclose upon any such asset, whether by judicial action
or otherwise, unless and until all of the Guaranteed Obligations shall have been fully paid and satisfied (in cash) and fully performed. If all or any part of the assets of any Obligor, or the proceeds thereof, are subject to any distribution,
division or application to the creditors of such Obligor, whether partial or complete, voluntary or involuntary, and whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other action
or proceeding, or if the business of any such Obligor is dissolved or if substantially all of the assets of any such Obligor are sold, then, and in any such event (such events being herein referred to as an “Insolvency Event”), any
payment or distribution of any kind or character, either in cash, securities or other property, which shall be payable or deliverable upon or with respect to any indebtedness of any Obligor to any Guarantor (“Intercompany 

  
 S-2.2-7 

 
Indebtedness”) shall be paid or delivered directly to the Holders for application on any of the Guaranteed Obligations, due or to become due, until such Guaranteed Obligations shall
have first been fully paid and satisfied (in cash). Should any payment, distribution, security or instrument or proceeds thereof be received by the applicable Guarantor upon or with respect to the Intercompany Indebtedness after any Insolvency Event
and prior to the satisfaction of all of the Guaranteed Obligations, such Guarantor shall receive and hold the same in trust, as trustee, for the benefit of the Holders of Guaranteed Obligations and shall forthwith deliver the same to the Holders of
Guaranteed Obligations, in precisely the form received (except for the endorsement or assignment of the Guarantor where necessary), for application to any of the Guaranteed Obligations, due or not due, and, until so delivered, the same shall be held
in trust by the Guarantor as the property of the Holders of Guaranteed Obligations. If any such Guarantor fails to make any such endorsement or assignment to the Holders of Guaranteed Obligations, the Holders of Guaranteed Obligations or any of
their officers or employees are irrevocably authorized to make the same. Each Guarantor agrees that until the Guaranteed Obligations (other than the contingent indemnity obligations) have been paid in full (in cash) and satisfied and fully
performed, no Guarantor will assign or transfer to any Person any claim any such Guarantor has or may have against any Obligor. 
 SECTION
8. Contribution with Respect to Guaranteed Obligations. 
 (A) To the extent that any Guarantor shall make a payment
under this Guaranty (a “Guarantor Payment”) which, taking into account all other Guarantor Payments then previously or concurrently made by any other Guarantor, exceeds the amount which otherwise would have been paid by or
attributable to such Guarantor if each Guarantor had paid the aggregate Guaranteed Obligations satisfied by such Guarantor Payment in the same proportion as such Guarantor’s “Allocable Amount” (as defined below) (as determined
immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Guarantors as determined immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of the
Guaranteed Obligations and termination of the Note Purchase Agreement, such Guarantor shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Guarantor for the amount of such excess, pro rata
based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment. 
 (B) As of any date of
determination, the “Allocable Amount” of any Guarantor shall be equal to the excess of the fair value of the property of such Guarantor over the total liabilities of such Guarantor (including the maximum amount reasonably expected to
become due in respect of contingent liabilities, calculated, without duplication, assuming each other Guarantor that is also liable for such contingent liability pays its ratable share thereof), giving effect to all payments made by other Guarantors
as of such date in a manner to maximize the amount of such contributions. 
 (C) This Section 8 is intended only to
define the relative rights of the Guarantors, and nothing set forth in this Section 8 is intended to or shall impair the obligations of the Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and payable
in accordance with the terms of this Guaranty. 

  
 S-2.2-8 

 (D) The parties hereto acknowledge that the rights of contribution and
indemnification hereunder shall constitute assets of the Guarantor or Guarantors to which such contribution and indemnification is owing. 

(E) The rights of the indemnifying Guarantors against other Guarantors under this Section 8 shall be exercisable upon the
full and indefeasible payment of the Guaranteed Obligations in cash, the performance in full of the Guaranteed Obligations and the termination of the Note Purchase Agreement. 

(F) In determining the solvency of any Guarantor, it is the intention of the parties hereto that any rights of subrogation or
contribution which such Guarantor may have under this Guaranty, any other agreement or applicable law shall be taken into account. 

SECTION 9. Limitation of Obligations. Notwithstanding any other provision of this Guaranty, each Guarantor’s obligation to pay the
amount guaranteed by each Guarantor hereunder shall be limited to the extent, if any, required so that its obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy Code or under any applicable state Uniform
Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law. 
 SECTION 10. Stay of Acceleration. If
acceleration of the time for payment of any amount payable by the Borrower under the Note Purchase Agreement or any Note is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, all such amounts otherwise subject to acceleration
under the terms of the Note Purchase Agreement or any Note shall nonetheless be payable by each of the Guarantors hereunder forthwith on demand by the Holders. 

SECTION 11. Notices. All notices, requests and other communications to any party hereunder shall be given in the manner prescribed in
the Note Purchase Agreement with respect to the Holders at their notice address therein and with respect to any Guarantor, in care of the Borrower at the address of the Borrower set forth in the Note Purchase Agreement or such other address or
telecopy number as such party may hereafter specify for such purpose by notice in accordance with the provisions of the Note Purchase Agreement. 

SECTION 12. No Waivers. No failure or delay by the Holder of Guaranteed Obligations in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies provided in this Guaranty,
the Note Purchase Agreement, and the Notes shall be cumulative and not exclusive of any rights or remedies provided by law. 
 SECTION 13.
Successors and Assigns. This Guaranty is for the benefit of the Holders and the Holders of Guaranteed Obligations and their respective successors, transfers and permitted assigns; provided, that no Guarantor shall have any right to
assign its rights or obligations hereunder without the consent of all of the Holders, and any such assignment in violation of this Section 13 shall be null and void; and in the event of an assignment of any amounts payable under the Note
Purchase Agreement or the Notes in accordance with the respective terms thereof, the rights hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness. This Guaranty shall be binding upon each of
the Guarantors and their respective successors and assigns. 

  
 S-2.2-9 

 SECTION 14. Changes in Writing. Other than in connection with the addition of additional
Subsidiaries, which become parties hereto by executing a supplement hereto in the form attached as Annex I, neither this Guaranty nor any provision hereof may be changed, waived, discharged or terminated orally, but only in writing signed by each of
the Guarantors and the Holders. 
 SECTION 15. GOVERNING LAW. THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAW OF THE STATE OF NEW YORK. 
 SECTION 16. CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL. 

(A) CONSENT TO JURISDICTION. EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THE NOTE PURCHASE AGREEMENT OR ANY NOTE AND EACH GUARANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW
OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY HOLDER OF GUARANTEED OBLIGATIONS TO BRING PROCEEDINGS AGAINST
ANY GUARANTOR IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY GUARANTOR AGAINST ANY HOLDER OF GUARANTEED OBLIGATIONS INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
GUARANTY OR ANY OTHER RELATED DOCUMENT SHALL BE BROUGHT ONLY IN A COURT SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK. 

(B) WAIVER OF JURY TRIAL. EACH GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS GUARANTY, THE NOTE PURCHASE AGREEMENT OR ANY NOTE OR THE RELATIONSHIP ESTABLISHED THEREUNDER. 

SECTION 17. No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Guaranty. In
the event an ambiguity or question of intent or interpretation arises, this Guaranty shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Guaranty. 

  
 S-2.2-10 

 SECTION 18. Taxes, Expenses of Enforcement, etc. 

(A) Taxes. 

(i) All payments by any Guarantor to or for the account of any Holder of Guaranteed Obligations hereunder or under any
promissory note shall be made free and clear of and without deduction for any and all taxes. If any Guarantor shall be required by law to deduct any taxes from or in respect of any sum payable hereunder to any Holder of Guaranteed Obligations,
(a) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 18(A)) such Holder or Holder of Guaranteed Obligations (as the
case may be) receives an amount equal to the sum it would have received had no such deductions been made, (b) such Guarantor shall make such deductions, (c) such Guarantor shall pay the full amount deducted to the relevant authority in
accordance with applicable law and (d) such Guarantor shall furnish to the Holders the original copy of a receipt evidencing payment thereof within ten (10) days after such payment is made. 

(ii) In addition, the Guarantors hereby agree to pay any present or future stamp or documentary taxes and any other excise or
property taxes, charges or similar levies which arise from any payment made hereunder or under any promissory note or from the execution or delivery of, or otherwise with respect to, this Guaranty or any promissory note (“Other
Taxes”). 
 (iii) The Guarantors hereby agree to indemnify the Holder of Guaranteed Obligations for the full amount
of taxes or Other Taxes (including, without limitation, any taxes or Other Taxes imposed on amounts payable under this Section 18(A)) paid by any Holder or Holder of Guaranteed Obligations and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto. Payments due under this indemnification shall be made within thirty (30) days of the date the Holder of Guaranteed Obligations makes demand therefor. 

(B) Expenses of Enforcement, Etc. Subject to the terms of the Note Purchase Agreement, after the occurrence of a Default
under the Note Purchase Agreement, the Holders shall have the right at any time to commence enforcement proceedings with respect to the Guaranteed Obligations. The Guarantors agree to reimburse the Holders and Holders of Guaranteed Obligations for
any costs and out-of-pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the Holders), paid or incurred by any Holder or Holder of Guaranteed Obligations in connection with the collection and enforcement of
amounts due under the Note Purchase Agreement, the Notes and this Guaranty. 
 SECTION 19. Setoff. At any time after all or any part
of the Guaranteed Obligations have become due and payable (by acceleration or otherwise), each Holder of Guaranteed Obligations may, without notice to any Guarantor and regardless of the acceptance of any security or collateral for the payment
hereof, appropriate and apply in accordance with the terms of the Note Purchase Agreement and the Notes toward the payment of all or any part of the Guaranteed Obligations (i) any indebtedness due or to become due from such Holder of Guaranteed
Obligations to any Guarantor, and (ii) any moneys, credits or other property belonging to any Guarantor, at any time held by or coming into the possession of such Holder of Guaranteed Obligations or any of their respective affiliates. 

  
 S-2.2-11 

 SECTION 20. Financial Information. Each Guarantor hereby assumes responsibility for
keeping itself informed of the financial condition of the Borrower and any and all endorsers and/or other Guarantors of all or any part of the Guaranteed Obligations, and of all other circumstances bearing upon the risk of nonpayment of the
Guaranteed Obligations, or any part thereof, that diligent inquiry would reveal, and each Guarantor hereby agrees that none of the Holders of Guaranteed Obligations shall have any duty to advise such Guarantor of information known to any of them
regarding such condition or any such circumstances. In the event any Holder of Guaranteed Obligations in its sole discretion, undertakes at any time or from time to time to provide any such information to a Guarantor, such Holder of Guaranteed
Obligations shall be under no obligation (i) to undertake any investigation not a part of its regular business routine, (ii) to disclose any information which such Holder of Guaranteed Obligations, pursuant to accepted or reasonable
commercial finance practices, wishes to maintain confidential or (iii) to make any other or future disclosures of such information or any other information to such Guarantor. 

SECTION 21. Severability. Wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Guaranty. 
 SECTION 22. Merger. This Guaranty represents the final agreement of each
of the Guarantors with respect to the matters contained herein and may not be contradicted by evidence of prior or contemporaneous agreements, or subsequent oral agreements, between the Guarantor and any Holder of Guaranteed Obligations. 

SECTION 23. Headings. Section headings in this Guaranty are for convenience of reference only and shall not govern the interpretation
of any provision of this Guaranty. 
 [SIGNATURE PAGES TO FOLLOW] 

  
 S-2.2-12 

 IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed by its authorized
officer as of the day and year first above written. 
  

			
	Stepan Specialty Products, LLC, as a Guarantor
		
	By:		 
	Name:		Robert J. Peacock
	Title:		President

  
 S-2.2-13 

 ANNEX I TO GUARANTY 

Reference is hereby made to the Guaranty (as the same may be amended, restated, supplemented or otherwise modified from time to time, the
“Guaranty”), dated as of July 10, 2015, made by Stepan Specialty Products, LLC, a Delaware limited liability company (together with any Subsidiaries which become parties to the Guaranty by executing a Supplement thereto
substantially similar in form and substance hereto, the “Guarantors”), for the benefit of the Holders. Each capitalized term used herein and not defined herein shall have the meaning given to it in the Guaranty. By its execution
below, the undersigned, [NAME OF NEW GUARANTOR], a [corporation] [partnership] [limited liability company] (the “New Guarantor”), agrees to become, and does hereby become, a Guarantor under the Guaranty and agrees to be bound by
such Guaranty as if originally a party thereto. By its execution below, the undersigned represents and warrants as to itself that all of the representations and warranties contained in Section 2 of the Guaranty are true and correct in all
respects as of the date hereof. 
 IN WITNESS WHEREOF, the New Guarantor has executed and delivered this Annex I counterpart to the Guaranty
as of this                      day of             ,
    . 
  

			
	[NAME OF NEW GUARANTOR]
		
	By:		 

 
			
	Title:		 

  
 S-2.2-14 

 FORM OF OPINION OF
GENERAL COUNSEL 
 TO THE COMPANY 

The closing opinion of Kathleen O. Sherlock, Deputy General Counsel and Assistant Secretary of the Company, which is called for by
Section 4.4 of the Note Purchase Agreement, shall be dated the Closing Date and addressed to the Purchasers, shall be satisfactory in scope and form to each Purchaser and shall be to the effect that: 

1. The Company and Stepan Specialty Products, LLC (the “Guarantor”) each have the corporate or limited liability company
power, as applicable, and authority to own, pledge and operate its properties, to lease any properties it operates under lease, to conduct its business as presently conducted and to execute and deliver the Note Purchase Agreement, the Notes and the
Subsidiary Guaranty (the “Transaction Documents”) to which it is a party and to perform its obligations thereunder. 
 2.
Assuming the proceeds of the Notes are used solely for the purposes set forth in the Note Purchase Agreement, neither the execution and delivery by the Company or the Guarantor of the Transaction Documents to which it is a party, nor the performance
by the Company or the Guarantor of its obligations thereunder (including the issuance and sale of the Notes): (i) results in the breach of, or constitutes a default under, any material indenture, mortgage, deed of trust, lease or sublease
agreement to which the Company or the Guarantor is a party or by which it or any of its properties is bound; (ii) results in the creation or imposition of any lien upon any of the property of the Company or the Guarantor under any indenture,
mortgage or other agreement described in clause (i) above; or (iii) requires the consent or approval of, or withholding of objection, or any filing of qualification or registration with, any governmental body, agency or authority other
than those which have been obtained. 
 3. Except as disclosed in the Note Purchase Agreement or the Subsidiary Guaranty, there are no
actions, suits, or proceedings pending or overtly threatened against the Company or the Guarantor or any of their assets and properties that questions or may affect the validity of any action to be taken by the Company or the Guarantor pursuant to
the Transaction Documents, or that seeks to restrain the Company or the Guarantor from carrying out the transactions contemplated therein or the Company’s or the Guarantor’s obligations thereunder. 

  

EXHIBIT 4.4(a) 
 (to
Note Purchase Agreement) 

 FORM OF OPINION OF
SPECIAL COUNSEL 
 TO THE COMPANY 

The closing opinion of Jones Day, special counsel to the Company, which is called for by Section 4.4 of the Note Purchase Agreement,
shall be dated the Closing Date and addressed to the Purchasers, shall be satisfactory in scope and form to each Purchaser and shall be to the effect that: 

(1) The Company is a corporation validly existing and in good standing under the laws of the State of Delaware as of the date listed on the
Company Good Standing Certificate. The Guarantor is a limited liability company validly existing and in good standing under the laws of the State of Delaware as at the date listed on the Guarantor Good Standing Certificate. The Company is authorized
or qualified to do business and in good standing as a foreign corporation in the State of Illinois as at the date listed on the Foreign Good Standing Certificate. 

(2) The issuance and sale of the Notes and the execution and delivery to the Purchasers by the Company of the Notes and the Note Purchase
Agreement (the “Company Documents”) and the performance by the Company of its obligations thereunder have been duly authorized by all necessary corporate action of the Company. The execution and delivery to the Purchasers by, Stepan
Specialty Products, LLC (the “Guarantor”) of the Subsidiary Guaranty (the “Guaranty”) and the performance by the Guarantor of its obligations thereunder have been duly authorized by all necessary limited liability
company action of the Guarantor. 
 (3) Each Company Document has been duly executed and delivered on behalf of the Company and, when the
Notes are delivered against payment therefor in accordance with the terms of the Note Purchase Agreement, constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. The Guaranty has been
duly executed and delivered on behalf of the Guarantor and, when the Notes are delivered against payment therefor in accordance with the terms of the Note Purchase Agreement, constitutes a valid and binding obligation of the Guarantor, enforceable
against the Guarantor in accordance with its terms. 
 (4) Assuming the proceeds of the Notes are used solely for the purposes set forth in
the Note Purchase Agreement, the execution and delivery to the Purchasers by the Company of the Note Purchase Agreement and the performance by the Company of its obligations thereunder, and the issuance and sale of the Notes: (i) do not
contravene any provision of the Company Certificate of Incorporation or the Company By-Laws; and (ii) do not violate (A) any present law, or present regulation of any governmental agency or authority, of the State of New York or the United
States of America applicable to the Company or its property or (B) any court decree or order binding upon the Company or its property that is listed on Annex I to the Company Officer’s Certificate (this opinion being limited in that we
express no opinion (1) with respect to any violation not readily ascertainable from the face of any such decree or order, or arising under or based upon any cross default provision insofar as it relates to a default under an agreement not so
identified to us, or arising under or based upon any covenant of a financial or numerical nature or requiring computation or (2) as to any law which might be violated by any misrepresentation or omission or a fraudulent act). 

  

EXHIBIT 4.4(b) 
 (to
Note Purchase Agreement) 

 (5) The execution and delivery to the Purchasers by the Guarantor of the Guaranty and the
performance by the Guarantor of its obligations thereunder: (i) do not contravene any provision of the Guarantor Certificate of Formation or the Guarantor LLC Agreement; and (ii) do not violate (A) any present law, or present
regulation of any governmental agency or authority, of the State of New York or the United States of America applicable to the Guarantor or its property or (B) any court decree or order binding upon the Guarantor or its property that is listed
on Annex I to the Guarantor Officer’s Certificate (this opinion being limited in that we express no opinion (1) with respect to any violation not readily ascertainable from the face of any such decree or order, or arising under or based
upon any cross default provision insofar as it relates to a default under an agreement not so identified to us, or arising under or based upon any covenant of a financial or numerical nature or requiring computation or (2) as to any law which
might be violated by any misrepresentation or omission or a fraudulent act). 
 (6) Neither the Company nor the Guarantor is required to
register as an “investment company” (under, and as defined in, the Investment Company Act of 1940, as amended (the “1940 Act”)) or, to our knowledge, is a company controlled by a company required to register as such under the
1940 Act. 
 (7) Assuming the offer, issuance, sale and delivery of the Notes occurs solely in the manner and under the circumstances
contemplated by the Note Purchase Agreement, it is not necessary in connection with the offer and sale of the Notes to the Purchasers under the Note Purchase Agreement to register the Notes under the Securities Act of 1933, as amended. 

(8) The issuance by the Company of the Notes and the application of the proceeds thereof as provided in the Note Purchase Agreement will not
violate Regulation T, U or X of the Board of Governors of the Federal Reserve System (the “Margin Regulations”). 
 The opinion of
Jones Day, shall cover such other matters relating to the sale of the Notes as each Purchaser may reasonably request and successors and assigns of the Purchasers shall be entitled to rely on such opinion. With respect to matters of fact on which
such opinion is based, such counsel shall be entitled to rely on appropriate certificates of public officials and other officers of the Company. 

  
 E-4.4(b)-2 

 FORM OF OPINION OF
SPECIAL COUNSEL 
 TO THE PURCHASERS 

[To be provided to the Purchasers only] 

  
 EXHBIT
4.4(c) 
 (to Note Purchase Agreement)

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