Document:

Exhibit
10.3

 

 

COSTAMARE PARTNERS LP

 

COSTAMARE PARTNERS GP
LLC

 

- and –

 

COSTAMARE SHIPPING COMPANY
S.A.

 

MANAGEMENT AGREEMENT

 

    	 

    	

    

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I	INTERPRETATION	1
	ARTICLE II	APPOINTMENT	6
	ARTICLE III	THE PARTNERSHIP’S GENERAL OBLIGATIONS	8
	ARTICLE IV	THE MANAGER’S GENERAL OBLIGATIONS	9
	ARTICLE V	ADMINISTRATIVE SERVICES	11
	ARTICLE VI	COMMERCIAL SERVICES	14
	ARTICLE VII	INSURANCE	15
	ARTICLE VIII	OFFICERS AND EMPLOYEES	15
	ARTICLE IX	MANAGEMENT FEES AND EXPENSES	16
	ARTICLE X	BUDGETS, CORPORATE PLANNING AND EXPENSES	20
	ARTICLE XI	LIABILITY AND INDEMNITY	22
	ARTICLE XII	RIGHTS OF THE MANAGER AND RESTRICTIONS ON THE MANAGER’S AUTHORITY	24
	ARTICLE XIII	TERMINATION OF THIS AGREEMENT	25
	ARTICLE XIV	NOTICES	28
	ARTICLE XV	APPLICABLE LAW	28
	ARTICLE XVI	ARBITRATION	28
	ARTICLE XVII	MISCELLANEOUS	29
	 	 	 
	APPENDIX I	Form of Ship Management Agreement	 
	 	 	 
	APPENDIX II	Form of Supervision Agreement	 

    	 

    	

    

THIS MANAGEMENT AGREEMENT (this “Agreement”)
is made on the [•] day of [•], 2015, BY AND BETWEEN:

 

(1)COSTAMARE PARTNERS LP, a Marshall
Islands limited partnership (the “Partnership”);

 

(2)COSTAMARE PARTNERS GP LLC, a Marshall
Islands limited liability company, as general partner of the Partnership (the “General Partner”); and

 

(3)COSTAMARE SHIPPING COMPANY S.A., a
company organized and existing under the laws of the Republic of Panama (the “Manager”).

 

WHEREAS:

 

(A)The Partnership wholly owns (i) the
entities set out in Schedule A, as such Schedule A may be amended from time to time (the “Shipowning Subsidiaries”),
each of which owns one or more Container Vessels (as defined below) (the “Vessels”) and (ii) the entities set
out in Schedule B, as such Schedule B may be amended from time to time (together with the Shipowning Subsidiaries, the “Subsidiaries”).

 

(B)The Manager has the benefit of experience
in the technical and commercial management of Container Vessels and administration of shipowning companies generally.

 

(C)The Partnership and the Manager desire
to adopt this Agreement, pursuant to which the Manager shall represent the Partnership Group (as defined below) in its dealings
with third parties and either directly or through a Submanager (as defined below) provide technical, commercial, administrative
and certain other services to the members of the Partnership Group as specified herein in connection with the management and administration
of the business of the members of the Partnership Group.

 

NOW, THEREFORE, THE PARTIES HEREBY AGREE:

 

ARTICLE
I

INTERPRETATION

 

SECTION 1.1. In this Agreement, unless the
context otherwise requires:

 

“Affiliates” means, with
respect to any person as to any particular date, any other persons that directly or indirectly, through one or more intermediaries,
are Controlled by, Control or are under common Control with the person in question, and Affiliates means any of them.

 

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

    	 

    		2

    

“Amended and Restated Group Management
Agreement” means the amended and restated management agreement dated March 3, 2015, as amended from time to time, between
Costamare and the Manager.

 

“Annual Period” shall
have the meaning set forth in Section 9.2.

 

“Approved Budget” shall
have the meaning set forth in Section 10.3.

 

“Beneficial Owner” has
the meaning set forth in Rule 13d-3 under the Exchange Act. For purposes of this definition, such person or group shall be deemed
to Beneficially Own any outstanding voting securities of a company held by any other company (the “parent company”)
that is Controlled by such person or group. The term “Beneficially Own” and similar capitalized terms shall have analogous
meanings.

 

“Board of Directors” means
the board of directors or the board of managers of the General Partner as the same may be constituted from time to time, provided
that, after a Board Election, the term “Board of Directors” shall mean such board of directors of the Partnership.

 

“Board Election” means
the election by the General Partner to cause the Partnership to be managed by the Partnership’s own board of directors, pursuant
to Section 7.14 of the Limited Partnership Agreement.

 

“Business Days” means
a day (excluding Saturdays and Sundays) on which banks are open for business in Athens, Greece; and New York, New York.

 

“Change in Control of the General
Partner or the Partnership” means, with respect to the General Partner or the Partnership (the “Applicable Person”),
any of the following events: (a) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions)
of all or substantially all of the Applicable Person’s assets to any other person, unless immediately following such sale,
lease, exchange or other transfer such assets are owned, directly or indirectly, by the Applicable Person; (b) the consolidation
or merger of the Applicable Person with or into another person pursuant to a transaction in which the outstanding voting securities
of the Applicable Person are changed into or exchanged for cash, securities or other property, other than any such transaction
where (i) the outstanding voting securities of the Applicable Person are changed into or exchanged for voting securities of the
surviving person or its parent and (ii) the holders of the voting securities of the Applicable Person immediately prior to such
transaction own, directly or indirectly, not less than a majority of the outstanding voting securities of the surviving person
or its parent immediately after such transaction; or (c) a “person” or “group” (within the meaning of Sections
13(d) or 14(d)(2) of the Exchange Act or any successor provision), other than Costamare, York or their Affiliates with respect
to the General Partner or the Partnership or the Konstantakopoulos Entities with respect to Costamare, being or becoming the Beneficial
Owner of more than 50% of all of the then outstanding voting securities of the Applicable Person, except in a merger or consolidation
which would not constitute a Change in Control of the General Partner or the Partnership under clause (b) above.

    	 

    		3

    

“Change in Control of the Manager”
means (a) a sale of all or substantially all of the assets or property of the Manager necessary for the performance of the Manager’s
services under this Agreement, (b) a sale of the Manager’s shares that would result in Konstantinos Konstantakopoulos Beneficially
Owning, directly or indirectly, less than 50.1% of the total voting power of the outstanding voting securities of the Manager or
(c) a merger, consolidation or similar transaction, that would result in Konstantinos Konstantakopoulos Beneficially Owning, directly
or indirectly, less than 50.1% of the total voting power of the outstanding voting securities of the resulting entity following
such transaction.

 

“Conflicts Committee”
means the conflicts committee of the Board of Directors.

 

“Consent of the Partnership”
means the Special Approval (as defined in the Limited Partnership Agreement) of the Conflicts Committee.

 

“Container Vessel” means
any ocean-going vessel (whether in its construction phase or operational) that is intended to be used primarily to transport containerized
cargoes.

 

“Continuing Directors”
means, as of any date of determination, any member of the board of directors of Costamare who (i) was a member of the board of
directors immediately after the Effective Date, or (ii) was nominated for election or elected to the board of directors of Costamare
with the approval of a majority of the directors then still in office or who were either directors immediately after the Effective
Date or whose nomination or election was previously so approved.

 

“Control” or “Controlled”
means, with respect to any person, the right to elect or appoint, directly or indirectly, a majority of the directors of such person
or a majority of the persons who have the right, including any contractual right, to manage and direct the business, affairs and
operations of such person or the possession 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.

 

“Costamare” means Costamare
Inc., a corporation incorporated under the laws of the Republic of the Marshall Islands.

 

“Crew” shall have the
meaning set forth in clause 1 of each Shipmanagement Agreement.

 

“Draft Budget” shall have
the meaning set forth in Section 10.1.

 

“Effective Date” means
the date upon which the initial public offering of the Partnership is consummated.

 

“Exchange Act” means the
U.S. Securities Exchange Act of 1934, as amended.

    	 

    		4

    

“Executive Officers” means
the Chief Executive Officer, the Chief Operating Officer (if any) and the Chief Financial Officer of the General Partner or, after
a Board Election, the Partnership, as applicable.

 

“Fixed Period” shall have
the meaning set forth in Section 9.2.

 

“Force Majeure” shall
have the meaning set forth in Section 11.1.

 

“General Partner” shall
have the meaning set forth in the preamble.

 

“Initial Term” shall have
the meaning set forth in Section 13.1.

 

“Konstantakopoulos Entities”
means:

 

		(a)	Konstantinos Konstantakopoulos, Christos Konstantakopoulos, Achillefs Konstantakopoulos or Vassileios Konstantakopoulos;

 

		(b)	any spouse or lineal descendant of any of the individuals set out in paragraph (a) above; and

 

		(c)	any person Controlled by, or under common Control with, any such individual or combination of such individuals as set out in
paragraphs (a) and (b) above.

 

“Limited Partnership Agreement”
means the first amended and restated agreement of limited partnership of the Partnership, dated as of [•], 2015, as from time
to time amended.

 

“Management Fee” shall
have the meaning set forth in Section 9.1.

 

“Management Services”
shall have, in relation to a Vessel, the meaning set forth in clause 1 of the Shipmanagement Agreement applicable to such Vessel.

 

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

 

“Manager Related Parties”
shall have the meaning set forth in Section 11.2.

 

“Newbuild” means a new
vessel to be or which has just been constructed, or is under construction, pursuant to a shipbuilding contract or other related
agreement entered into by the relevant member of the Partnership Group.

 

“Omnibus Agreement” means
that certain Omnibus Agreement, dated as of October 1, 2014, among Costamare, the Partnership, the General Partner, Costamare Partners
Holdings LLC and York, as such agreement may be amended, supplemented or restated from time to time.

 

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

    	 

    		5

    

“Partnership Group” means,
at any time, the Partnership, the General Partner and the Subsidiaries at such time taking into account the Schedule A and Schedule
B in effect at such time and “member of the Partnership Group” shall be construed accordingly.

 

“Questioned Items” shall
have the meaning set forth in Section 10.2.

 

“Related Manager” means
each of Shanghai Costamare Ship Management Co., Ltd. or any Affiliate of a Konstantakopoulos Entity appointed as Submanager in
accordance with the terms of this Agreement.

 

“Services” shall have
the meaning set forth in Section 2.3.

 

“Shipmanagement Agreement”
shall have the meaning set forth in Section 3.2.

 

“Shipowning Subsidiaries”
shall have the meaning set forth in the recitals.

 

“STCW 95” means the International
Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978, as amended in 1995 or any subsequent amendment
thereto.

 

“Submanager” shall have
the meaning set forth in Section 2.4.

 

“Subsequent Term” shall
have the meaning set forth in Section 13.1.

 

“Subsidiaries” shall have
the meaning set forth in the recitals.

 

“Supervision Agreement”
shall have the meaning set forth in Section 3.3.

 

“Term” shall have the
meaning set forth in Section 13.1.

 

“Vessels” shall have the
meaning set forth in the recitals.

 

“V.Ships” means V.Ships
Greece Ltd, Par-La Ville Place 14, Par-La Ville Road, Hamilton HM08, Bermuda and includes its successors in title and permitted
assignees.

 

“York” means York Capital
Management Global Advisors LLC, Sparrow Holdings, L.P., Bluebird Holdings, L.P. and certain affiliated funds on whose behalf York
Capital Management Global Advisors LLC has entered into the Omnibus Agreement.

 

SECTION 1.2. The headings of this Agreement
are for ease of reference and do not limit or otherwise affect the meaning hereof.

 

SECTION 1.3. All the terms of this Agreement,
whether so expressed or not, shall be binding upon the parties hereto and their respective successors and assigns.

    	 

    		6

    

SECTION 1.4. In the event of any conflict
between this Agreement, any Shipmanagement Agreement or any Supervision Agreement, the provisions of this Agreement shall prevail.

 

SECTION 1.5. Unless otherwise specified,
all references to money refer to the legal currency of the United States of America.

 

SECTION 1.6. Unless the context otherwise
requires, words in the singular include the plural and vice versa.

 

SECTION 1.7. The words “include”,
“includes” and “including” when used herein shall be deemed in each case to be followed by the words “without
limitation” and shall not be construed to limit any general statement which it follows to the specific or similar items or
matters immediately following it.

 

SECTION 1.8. Any reference to “person”
includes an individual, body corporate, limited liability company, partnership, joint venture, cooperative, trust or unincorporated
organization, association, trustee, domestic or foreign government or any agency or instrumentality thereof, or any other entity
recognized by law.

 

SECTION 1.9. Any reference to an enactment
shall be deemed to include reference to such enactment as re-enacted, amended or extended.

 

SECTION 1.10. Any reference to (or to any
specified provision of) this Agreement or any other document shall be construed as reference to this Agreement, that provision
or that document as in force for the time being and as amended in accordance with the terms thereof, or, as the case may be, with
the agreement of the relevant parties.

 

SECTION 1.11. Any reference to clauses, appendices
and schedules shall be construed as reference to clauses of, appendices to and schedules to this Agreement and references to this
Agreement includes its appendices and schedules.

 

ARTICLE
II

 

APPOINTMENT

 

SECTION 2.1. The Manager is hereby appointed
by the Partnership as the administrative manager of the Partnership Group and hereby accepts such appointment on the terms and
conditions of this Agreement.

 

SECTION 2.2. The Manager shall be appointed
by (a) each Shipowning Subsidiary pursuant to the provisions of Section 3.3 as the technical and/or commercial manager of each
such Shipowning Subsidiary’s Vessel on the terms and conditions of the relevant Shipmanagement Agreement and this Agreement
and (b) each member of the Partnership Group to be acquiring a Newbuild, as the supervisor of the construction thereof on the terms
and conditions of the relevant Supervision Agreement and this Agreement.

    	 

    		7

    

SECTION 2.3. The Manager agrees to provide:

 

(a) the services specified in Articles
V, VI, VII and VIII of this Agreement;

 

(b) the services specified in each
Supervision Agreement; and

 

(c) the Management Services (as
such term is defined in clause 1 of each Shipmanagement Agreement) in respect of each Vessel specified in each Shipmanagement Agreement
(the services to be provided under Sections 2.3(a), 2.3(b) and 2.3(c) collectively the “Services”).

 

The Partnership and the Manager each hereby agree that
in the performance of this Agreement, any Supervision Agreement or any Shipmanagement Agreement, the Manager or, as the case may
be, any Submanager, is acting solely on behalf of, as agent of and for the account of, the Partnership or any other relevant member
of the Partnership Group. The Manager or, as the case may be, the relevant Submanager may advise persons with whom it deals on
behalf of the Partnership or any other member of the Partnership Group that it is conducting such business for and on behalf of
the Partnership or, as the case may be, a member of the Partnership Group.

 

SECTION 2.4. The Manager may upon notice
to the Partnership appoint any person (a “Submanager”) at any time throughout the duration of this Agreement
to discharge any of the Manager’s duties under this Agreement or a Shipmanagement Agreement or a Supervision Agreement, provided
that if such person is not a Related Manager or V.Ships, the Manager shall obtain the written Consent of the Partnership prior
to such appointment (such Consent of the Partnership shall not be unreasonably withheld or delayed). The Manager shall appoint
a Submanager either by entering into a management agreement or supervision agreement (such management agreement or supervision
agreement to be on terms to be agreed between the parties thereto and only in respect of the services that the Manager wishes such
Submanager to discharge) directly with such Submanager (for the avoidance of doubt, unless otherwise agreed in writing, no member
of the Partnership Group shall have any responsibility for any fees or costs incurred under any such management agreement or supervision
agreement) or by directing such Submanager to enter into a management agreement or supervision agreement directly with the relevant
member of the Partnership Group (such management agreement or supervision agreement to be on terms to be agreed between the parties
thereto and only in respect of the services that the Manager wishes such Submanager to discharge). Any Submanager (other than V.Ships)
shall agree to the terms and conditions of this Agreement to the extent applicable to it, prior to performing any services for
any member of the Partnership Group. The Partnership shall procure that each member of the Partnership Group shall provide written
confirmation to the Manager or, as the case may be, a Submanager, that such member’s Vessel is commercially and/or technically
managed by the Manager or, as the case may be, the relevant Submanager.

    	 

    		8

    

SECTION 2.5. The Manager’s power to
delegate performance of any provision of this Agreement, including delegation by directing a Submanager to enter into a management
agreement or supervision agreement directly with a member of the Partnership Group in accordance with Section 2.4, shall not limit
the Manager’s liability to the Partnership to perform this Agreement with the intention that the Manager shall remain responsible
to the Partnership for the due and timely performance of all duties and responsibilities of the Manager hereunder, PROVIDED
HOWEVER, that to the extent that any Submanager has performed any such duty, the Manager shall not be under any obligation
to perform again the same duty.

 

ARTICLE
III

 

THE PARtnership’S GENERAL OBLIGATIONS

 

SECTION 3.1. The Partnership shall notify
the Manager as soon as possible of any purchase of any vessel (whether the same is a second-hand vessel or a Newbuild), the delivery
of any Newbuild from the relevant builder or intermediate seller to the relevant member of the Partnership Group to take ownership
of such Newbuild, the sale of any Vessel, the purchase or creation of any direct or indirect subsidiary of the Partnership or the
sale or divestiture of any Subsidiary and shall promptly amend Schedule A and Schedule B, as applicable, to be reflective of any
such development. Such amended Schedule A or Schedule B shall be effective on any such day as mutually agreed by the Partnership
and the Manager, which date shall be no later than five Business Days after delivery of such amended Schedule A and/or Schedule
B to the Manager by the Partnership.

 

SECTION 3.2. For each Vessel the Partnership
shall cause the relevant Shipowning Subsidiary to enter into with the Manager, and the Manager shall enter into with such Shipowning
Subsidiary, a contract substantially in the form attached as Appendix I (each a “Shipmanagement Agreement” and,
collectively, the “Shipmanagement Agreements”), with such alterations and additions as are appropriate; PROVIDED
HOWEVER, that any alterations or additions which materially vary from such form shall require the approval of the Board of
Directors.

 

SECTION 3.3. For each Newbuild the Partnership
shall cause the relevant Shipowning Subsidiary to enter into with the Manager, and the Manager shall enter into with such Shipowning
Subsidiary, a contract substantially in the form attached as Appendix II (each a “Supervision Agreement” and,
collectively, the “Supervision Agreements”) with such alterations and additions as are appropriate; PROVIDED
HOWEVER, that any alterations or additions which materially vary from such form shall require the approval of the Board of
Directors.

 

SECTION 3.4. The Partnership shall pay punctually
all sums due to the Manager under this Agreement, any Shipmanagement Agreement and/or any Supervision Agreement to which the Manager
is a party in accordance with the respective terms thereof.

    	 

    		9

    

SECTION 3.5. The Partnership shall procure
that each other member of the Partnership Group (a) performs its obligations under any Shipmanagement Agreement or any Supervision
Agreement to which it is a party and (b) does not take any action or omit to take any action the effect of which is to cause the
Partnership Group or the Manager or a Submanager to be in breach of this Agreement, any Shipmanagement Agreement and/or any Supervision
Agreement.

 

SECTION 3.6. The Partnership agrees that
it has engaged the Manager to provide the Services on an exclusive basis and, without receiving the prior written approval of the
Manager or before it has lawfully terminated this Agreement in accordance with its terms, it will not engage any other entity to
provide any of the Services.

 

ARTICLE
IV

 

THE MANAGER’S GENERAL OBLIGATIONS

 

SECTION 4.1. In the exercise of its duties
hereunder, the Manager shall act in accordance with the reasonable policies, guidelines and instructions from time to time communicated
to it in writing by any member of the Partnership Group.

 

SECTION 4.2. For each Vessel or, as the case
may be, Newbuild the Manager shall act and do all and/or any of the acts or things described in this Agreement and the relevant
Shipmanagement Agreement or Supervision Agreement applicable to each such Vessel or Newbuild in the name and/or on behalf of the
Partnership and/or the relevant Subsidiary or Subsidiaries.

 

SECTION 4.3. The Manager acknowledges that
the services it will provide pursuant to the Shipmanagement Agreements or the Supervision Agreements are not limited to the services
described in such agreements and include those set forth in this Agreement.

 

SECTION 4.4. The Manager shall exercise commercially
reasonable care to cause all material property of any member of the Partnership Group to be clearly identified as such, held separately
from the property of the Manager and, where applicable, held in safe custody.

 

SECTION 4.5. The Manager shall exercise commercially
reasonable care to cause adequate manpower to be employed by it to perform its obligations under this Agreement, PROVIDED HOWEVER,
that the Manager, in the performance of its responsibilities under this Agreement, shall be entitled to have regard to its overall
responsibilities in relation to the management of its clients (including Costamare) and in particular, without prejudice to the
generality of the foregoing, the Manager shall be entitled to allocate available resources and services in such manner as in the
prevailing circumstances the Manager considers to be fair and reasonable.

 

SECTION 4.6. Notwithstanding anything to
the contrary contained in this Agreement or any Shipmanagement Agreement or any Supervision Agreement, the

    	 

    		10

    

Manager agrees that any and all decisions
of a material nature relating to the Partnership Group, any Subsidiary, any Vessel or any Newbuild under construction shall be
reserved to the General Partner, or, after a Board Election, the Partnership, such decisions including, but not being limited to:

 

(a) the purchase and/or sale of
shares in any entity or other assets of a material nature;

 

(b) the purchase, formation or dissolution
of subsidiaries;

 

(c) the entry into guarantees or
loans or other forms of financing and any and all financial undertakings and commitments connected therewith; and

 

(d) the presentation, negotiation,
settlement, prosecution or defense of any claim, demand or petition for an amount exceeding US$1,000,000 or its equivalent.

 

SECTION 4.7. During the Term, the Manager
shall promote the business of the Partnership Group in accordance with the directions of the authorized representative or, as
the case may be, representatives of the respective member of the Partnership Group and shall at all times use commercially
reasonable efforts to conform to and comply with the lawful and reasonable directions, regulations or recommendations made by such
authorized representative or, as the case may be, representatives, and in the absence of any specific directions or recommendations
as aforesaid and, subject to the terms and conditions of this Agreement, shall provide general administrative and advisory services
in connection with the management of the business of the Partnership Group.

 

SECTION 4.8. The Manager, in the performance
of its responsibilities under this Agreement, any Supervision Agreement or any Shipmanagement Agreement, shall exercise commercially
reasonable care to cause any purchases of products or services from any of its Affiliates to be on terms no less favorable to the
Manager than the market prices for products or services that the Manager could obtain on an arm’s length basis from unrelated
parties.

 

SECTION 4.9. During the term hereof, the
Manager agrees that it will provide the Services to the Partnership Group and Costamare and their respective subsidiaries on an
exclusive basis and, without receiving the prior Consent of the Partnership, it will not provide any Services or other services
contemplated herein to any entity other than the Partnership Group and Costamare and their respective subsidiaries; provided, however,
the Manager may also provide the Services to entities formed pursuant Framework Agreement between Costamare, Costamare Ventures
Inc. and York dated 15 May 2013 as amended from time to time.

 

SECTION 4.10. If a Vessel (which expression
for the purposes of this Section shall include any Newbuild to be acquired by a member of the Partnership Group) and a Container
Vessel directly or indirectly owned or operated by a third party

    	 

    		11

    

are both available and meet the criteria for
a charter being fixed by the Manager, the Vessel shall be offered such charter first and the Partnership shall have 48 hours from
such offer being received to accept such offer, failing which such charter shall be then offered to the relevant third party. If
a Vessel and a Container Vessel directly or indirectly owned or operated by Costamare are both available and meet the criteria
for a charter being fixed by the Manager, the Container Vessel owned or operated by Costamare shall be offered such charter first,
provided that such Container Vessel shall be subject to the terms of the Omnibus Agreement, as applicable.

 

SECTION 4.11. The Manager shall at all times
maintain appropriate and necessary accounts and records as regards the Services and shall make the same available for inspection
and auditing by the Partnership at such times as may be mutually agreed by the Manager, on the one hand, and the Partnership, on
the other hand.

 

ARTICLE V

 

ADMINISTRATIVE SERVICES

 

SECTION 5.1. The Manager shall provide certain
general administrative services to the Partnership Group, including, but not limited to, the following:

 

(a) keeping all books and records
of things done and transactions performed on behalf of any member of the Partnership Group as it may require from time to time,
including, but not limited to, liaising with accountants, lawyers and other professional advisors;

 

(b) except as otherwise contemplated
herein, representing any member of the Partnership Group generally in its dealings and relations with third parties;

 

(c) maintaining the general ledgers
of the Partnership Group, establishing bank accounts with such financial institutions as the Partnership may request, managing,
administering and reconciling of the Partnership Group’s bank accounts, preparation of periodic consolidated financial statements
of the Partnership Group, including, but not limited to, those required for governmental and regulatory or self-regulatory agency
filings and reports to unitholders or other holders of partnership interests, arranging of the auditing and/or review of any such
financial statements and the provision of related data processing services;

 

(d) providing assistance in the
preparation of periodic and other reports, proxy statements, registration statements and other documents and reports required by
applicable law (including rules and regulations promulgated by the U.S. Securities and Exchange Commission) or the rules of any
securities exchange or inter-dealer quotation system on which the securities of the Partnership or any member of the Partnership
Group may be listed or quoted;

    	 

    		12

    

(e) preparing and providing (or
procuring, at the Partnership’s cost, a third party service provider to prepare and provide) tax returns required by any
law or regulatory authority and developing, maintaining and monitoring internal audit controls, disclosure controls and information
technology for the Partnership Group;

 

(f) arranging for the provision
of advisory services (either directly or, at the Partnership’s cost, through a third party service provider) to ensure the
Partnership Group is in compliance with all applicable laws, including all relevant securities laws, including the preparation
for review, approval and filing by the Partnership of reports and other documents with the U.S. Securities and Exchange Commission,
any securities exchange on which its shares are listed and all other regulatory authorities having jurisdiction over the Partnership
or with other securities exchanges on which the Partnership’s securities are listed; including the preparation for review,
approval and filing by the Partnership Group of reports and other documents with all applicable regulatory authorities; provided
that nothing herein shall permit or authorize the Manager to act for or on behalf of the Partnership in its relationship with regulatory
authorities, except to the extent that specific authorization may from time to time be given by the General Partner, or, after
a Board Election, the Partnership;

 

(g) either directly or, at the Partnership’s
cost, through a third party service provider (such as by appointing lawyers), providing for the presentation, negotiation, settlement,
prosecution or defense of any claim, demand or petition on behalf of any member of the Partnership Group arising in connection
with the business of any member of the Partnership Group for an amount not exceeding US$1,000,000 or its equivalent, including
the pursuit by any member of the Partnership Group of any rights of indemnification or reimbursement;

 

(h) providing assistance in negotiating
loan and credit terms with lenders and monitoring and administration of compliance with any applicable financing terms and conditions
in effect with investors, banks or other financial institutions;

 

(i) assisting with arranging board
meetings, director accommodation and travel for board meetings and preparing meeting materials and detailed papers and agendas
for scheduled meetings of the Board of Directors or the board of directors of any other member of the Partnership Group (and any
and all committees thereof) that, where applicable, contain such information as is reasonably available to the Manager to enable
the Board of Directors or such other board of directors (and any such committees) to base their opinion;

 

(j) preparing or causing to be prepared
reports to be considered by the Board of Directors (or any applicable committee thereof) in accordance with the Partnership’s
internal policies and procedures on any acquisition, investment or sale of any part of the business;

    	 

    		13

    

 

(k) administering payroll services,
benefits and director’s or consultant’s fees, as applicable, for any person providing services of an employee, officer,
consultant or director of the Partnership Group;

 

(l) handling general and administrative
expenses of the Partnership, which are related to its operation as public company and, upon being placed by the Partnership in
funds in accordance with the terms of this Agreement, arranging for the payment of the same;

 

(m) either directly or, at the Partnership’s
cost, through a third party service provider (such as by appointing lawyers), handling all administrative and clerical matters
in respect of (i) the calling and arrangement of all annual and/or special meetings of unitholders of the Partnership pursuant
to the Limited Partnership Agreement, (ii) the preparation of all materials (including notices of meetings and information circulars)
in respect thereof and (iii) the submission of all such materials to the Partnership in sufficient time prior to the dates upon
which they must be mailed, filed or otherwise relied upon so that the Partnership has full opportunity to review, approve, execute
and return them to the Manager for filing or mailing or other disposition as the Partnership may require or direct;

 

(n) providing, at the request and
under the direction of the Partnership, such communications to the transfer agent for the Partnership as may be necessary or desirable;

 

(o) assisting the Partnership in
establishing and maintaining a system of internal controls sufficient to satisfy applicable regulatory requirements;

 

(p) providing the Partnership Group
with office accommodation, equipment, office staff (including all accounting, clerical, secretarial, corporate administrative and
information technology services as may be reasonably necessary), facilities and stationery;

 

(q) maintaining, at the Partnership’s
cost, the Partnership’s and each other member’s of the Partnership Group corporate existence, qualification and good
standing in all necessary jurisdictions and assisting in all other corporate and regulatory compliance requirements;

 

(r) at the Partnership’s cost,
assisting in all corporate and regulatory compliance requirements for incorporating a new entity that will be owned (inter alios)
by a member of the Partnership Group and/or for dissolving any member of the Partnership Group, in all necessary jurisdictions;

    	 

    		14

    

(s) at the request of the Partnership,
negotiating the terms and thereafter arranging for cash management services and/or hedging arrangements, in each case with a third
party provider at the cost of the Partnership;

 

(t) at the request of the Partnership,
monitoring the performance of investment managers; and

 

(u) providing any such other administrative
services as the General Partner, or, after a Board Election, the Partnership, the Executive Officers or any other representative
of the Partnership may request and the Manager may agree to provide from time to time.

 

ARTICLE
VI

 

COMMERCIAL SERVICES

 

SECTION 6.1. In addition to any commercial
services provided under clause 3.3 of each Shipmanagement Agreement, the Manager shall provide the following commercial services
to the Partnership Group:

 

(a) performing class records review
and physical inspections in respect of any vessel considered for purchase by a member of the Partnership Group;

 

(b) at the request and under the
direction of the General Partner, or, after a Board Election, the Partnership, providing administrative services in connection
with the purchase of a second-hand vessel or the acquisition and sale of a Newbuild, in either case by any member of the Partnership
Group, including, if specifically instructed by the General Partner, or, after a Board Election, the Partnership, in writing, signing
any agreed form of memorandum of agreement, shipbuilding contract or other similar contract for and on behalf of the relevant member
of the Partnership Group;

 

(c) managing relationships between
the Partnership Group and any existing or potential charterers, shipbuilders, insurers, lenders, investors, fund managers, unitholders
and other shipping industry service providers/participants;

 

(d) providing, or arranging for
the provision of, such services as may be required by the Partnership to support and assist the Partnership in considering any
future acquisitions or divestments of assets of the Partnership and for the integration of any businesses or assets acquired by
the Partnership, all in accordance with the direction and under the supervision of the General Partner, or, after a Board Election,
the Partnership; and

    	 

    		15

    

(e) at the request of the General
Partner, or, after a Board Election, the Partnership, providing certain services in connection with a member of the Partnership
Group taking physical delivery of a vessel, registering a vessel under a ship register, tendering physical delivery of a Vessel
or deleting a Vessel from the applicable port of registry, in each case on behalf of the relevant member of the Partnership Group.

 

ARTICLE
VII

 

INSURANCE

 

SECTION 7.1. In addition to any insurance
requirements provided in clause 3.4 of each Shipmanagement Agreement, the Manager shall:

 

(a) arrange either directly or,
through insurance brokers appointed by the Manager, Directors & Officers’ liability insurance for the Board of Directors
with such insurance companies, at such rates and otherwise on such other terms as the General Partner, or, after a Board Election,
the Partnership, shall have instructed and/or agreed upon;

 

(b) on request, provide the Partnership
with a copy of any insurance claims and any reports prepared by the relevant insurers; and

 

(c) subject to having been placed
in funds on time by the Partnership, take commercially reasonable care to cause all premiums on the Partnership’s Directors & Officers’ liability insurance are paid in a timely fashion.

 

ARTICLE
VIII

 

OFFICERS
AND EMPLOYEES

 

SECTION 8.1. The Manager shall make available
to the General Partner or, after a Board Election, the Partnership, as applicable, all such officers, managers and employees, including
any of the Executive Officers, that the General Partner or the Partnership, as applicable, and the Manager agree shall be made
available.

 

SECTION 8.2. The Executive Officers are entitled
to direct the Manager to remove and replace any individual serving as an officer or any senior manager serving as head of a business
unit, in either case, of any member of the Partnership Group, other than an Executive Officer, from such position. The Board of
Directors, in its sole discretion, shall be entitled to direct the Manager to remove any individual made available to the General
Partner or the Partnership, as applicable, by the Manager serving as an Executive Officer from such position and to appoint such
other individual to serve as successor as the Board of Directors shall approve. Furthermore, the Manager agrees that it will not
remove any individuals serving as officers or senior managers of any member of the Partnership Group from their respective positions
without the prior written consent of the Executive Officers (such consent not to be unreasonably withheld or

    	 

    		16

    

unduly delayed) and, in the case of any Executive
Officer, the Board of Directors. If any officer or senior manager who is made available to the General Partner or the Partnership,
as applicable, by the Manager resigns, is terminated or otherwise vacates his or her office, the Manager shall, as soon as practicable
after acceptance of any resignation or after termination, use reasonable best efforts to identify suitable candidates for replacement
of such officer.

 

SECTION 8.3. The Partnership Group may employ
directly any other officers, senior managers or employees as it may deem necessary that will not be subject to this Agreement.

 

SECTION 8.4. The Manager will report to the
Partnership and the Board of Directors through any one of the Executive Officers.

 

ARTICLE
IX

 

MANAGEMENT
FEES AND EXPENSES

 

SECTION 9.1. In consideration of the Manager
providing the Services to the Partnership Group, the Partnership shall pay the Manager the following fees (together, the “Management
Fees” and, on a per Vessel basis, the “Management Fee”):

 

(a) subject to Sections 9.2 and
9.3, a fee of US$956 per day per Vessel, payable monthly in arrears (pro rated to reflect the actual number of days that the Partnership
(or any Subsidiary) owns or charters-in each Vessel during the applicable month), unless a Vessel is chartered-out to a third party
on a bareboat charter basis, in which case the fee payable to the Manager for such Vessel shall be, subject to Sections 9.2 and
9.3, US$478 per day, PROVIDED HOWEVER, that when in respect of certain services to a Vessel the Manager appoints a Submanager
in accordance with Section 2.4 and such Submanager enters into a management agreement directly with the relevant member of the
Partnership Group (the “direct agreement”), the fees payable by the Partnership and/or such member of the Partnership
Group under this Agreement and/or any relevant Shipmanagement Agreement in respect of such Vessel pursuant to Section 9.1(a) shall
be US$956 per day, or as the case may be, US$478 per day minus, in each case, the fees per day payable by such member of the Partnership
Group to such Submanager under the relevant direct agreement in respect of such Vessel;

 

(b) a fee equal to 0.75% calculated
on the aggregate of the gross freight, demurrage, charter hire, ballast bonus or other income obtained for the employment of each
Vessel during the term of this Agreement, payable to the Manager monthly in arrears, only to the extent such freight, demurrage,
charter hire, ballast bonus or other income, as the case may be, is received as revenue;

    	 

    		17

    

(c) subject to Sections 9.2 and
9.3, a fee of US$787,405 per Newbuild under construction for the services rendered by the Manager under the Supervision Agreement
in respect of such Newbuild, payable in accordance with the terms of such Supervision Agreement; and

 

(d) an annual fee payable to the
Manager (or its designee) quarterly in arrears of the number of validly issued, fully paid and nonassessable common units representing
limited partnership interests in the Partnership equal to 0.75% of the aggregate number of issued and outstanding common units,
subordinated units and general partnership units representing partnership interests in the Partnership as of January 1 of the applicable
calendar year (the “Units”) payable in kind, PROVIDED HOWEVER, that the Partnership and the Manager shall
renegotiate in good faith, on no more than one occasion in any calendar year, a reduction in the amount of such unit based compensation
in the event of a substantial increase in the public trading price of the Partnership’s common units above the trading price
of such common units over the prior year. PROVIDED ALWAYS, that the Manager is aware and acknowledges that there are limitations
and restrictions on the circumstances under which it may offer to sell, transfer or otherwise dispose of the Units to be acquired
by it including certain restrictions on transfer under the applicable securities laws.

 

The fee payable to the Manager pursuant
to clause (d) above for the year ending on December 31, 2015, will be reduced pro rata based on the actual number of days this
Agreement is in effect in such year and will be based on the issued and outstanding common units, subordinated units and general
partnership units of the Partnership as of the date immediately following the Partnership’s initial public offering but after
giving effect to any green shoe option in connection therewith (the “IPO Date”) as if such units had been issued
and outstanding on January 1 of such year (i.e., such fee shall be 0.75% of the aggregate number of the common units, subordinated
units and general partnership units issued and outstanding on the IPO Date times a fraction where the numerator is equal to the
number of actual days this Agreement is in effect in 2015 and the denominator is equal to 365).

 

SECTION 9.2. The Management Fees will be
fixed for the period commencing on the date of this Agreement and ending on December 31, 2015 (the “Fixed Period”)
and shall not be subject to adjustment for Euro/U.S. Dollar exchange rate fluctuations or inflation. For the 12-month period starting
on January 1, 2016 and for each subsequent 12-month period falling thereafter (each such 12-month period referred to hereinafter
as an “Annual Period”), the Management Fee for each Vessel payable pursuant to Section 9.1(a) or Section 9.1(c)
will be adjusted pursuant to Section 9.3.

 

SECTION 9.3. The Management
Fees for each Vessel payable pursuant to Section 9.1(a) or Section 9.1(c), for the Annual Period commencing

    	 

    		18

    

on the day falling immediately
after the end of the Fixed Period and each subsequent Annual Period thereafter, will, in each case, be further adjusted upwards
with effect from the beginning of such Annual Period if:

 

(a) the average of the Euro/U.S.
Dollar exchange rates during the 12-month period ending on the last day of the month of September falling before the commencement
date of such Annual Period (such average being the average over the applicable period, as calculated by the Manager from the Euro
Foreign Exchange Reference Rate published daily at 15:00 CET by the European Central Bank on www.ecb.int) evidence that the Euro
has strengthened against the U.S. Dollar by more than five per cent (5%) from:

 

(i) in the case of the first Annual
Period starting on the day falling immediately after the end of the Fixed Period, the rate existing on the business day immediately
prior to the date of this Agreement, and

 

(ii) in the case of each subsequent
Annual Period, the previous Euro/U.S. Dollar average calculated for the purposes of this Section 9.3 in respect of the immediately
previous Annual Period,

 

by the average percentage amount by which the Euro
has in each such case so strengthened against the U.S. Dollar; and/or

 

(b) the Manager has incurred a material
unforeseen increase in the cost of providing the Services, by an amount to be agreed between the Manager and the Partnership, each
acting in a commercially reasonable manner.

 

SECTION 9.4. The Manager shall, subject to
Section 9.5, pay for all usual office expenses incurred by it as the Manager.

 

SECTION 9.5. The Partnership hereby acknowledges
that any capital expenditure, financial costs, operating expenses for each Vessel and any general and administrative expenses of
the Partnership Group whatsoever are not covered by the Management Fees and any such expenditure, costs and expenses shall be paid
fully by the Partnership or the applicable member of the Partnership Group, whether directly to third parties (which for the avoidance
of doubt shall include any Submanager) or by payment to such third parties through the Manager and, without prejudice to Section
10.8, to the extent incurred by the Manager, shall be reimbursed to it by the Partnership and/or any member of the Partnership
Group the Manager seeks, in its discretion, reimbursement from. The said capital expenditure, financial costs, operating expenses
for each Vessel and general and administrative expenses of the Partnership Group include, without limiting the generality of the
foregoing, items such as:

 

(a) fees, interest, principal and
any other costs due to the Partnership Group’s financiers and their respective advisors;

    	 

    		19

    

(b) all voyage expenses and vessel
operating and maintenance expenses relating to the operation and management of the Vessels (including Crew costs, surveyor’s
attendance fees, bunkers, lubricant oils, spares, survey fees, classification society fees, maintenance and repair costs, vetting
expenses, etc.); 

 

(c) any commissions, fees, remuneration
or disbursements due to lawyers, brokers, agents, surveyors, consultants, financial advisors, investment bankers, insurance advisors
or any other third parties whatsoever appointed by the Manager whether in its name or on behalf and/or in the name of any member
of the Partnership Group;

 

(d) any commissions, fees, remuneration
or disbursements due to lawyers, brokers, agents, surveyors, consultants, financial advisors, investment bankers, insurance advisors
or any other third parties (other than, if applicable, a Related Manager) whatsoever sub-contracted to the Manager in the normal
and reasonable course of meeting the Manager’s duties and obligations under this Agreement or any Shipmanagement Agreement
or any Supervision Agreement including the duties provided in Articles V, VI and VII of this Agreement;

 

(e) applicable deductibles, insurance
premiums (including Directors & Officers’ liability insurance) and/or P&I calls;

 

(f) compensation expenses for employees
who are not provided by the Manager pursuant to Section 8.1;

 

(g) postage, communication, traveling,
lodging, victualling, overtime, out of office compensation and out of pocket expenses of the Manager and/or its personnel, incurred
in pursuance of the Services; and

 

(h) any other out of pocket expenses
that are incurred by the Manager in the performance of the Services pursuant to this Agreement, any Supervision Agreement or any
Shipmanagement Agreement.

 

SECTION 9.6. The Manager shall have the right
to demand the Management Fee payable in relation to each Vessel from either the Partnership or the Shipowning Subsidiary owning
such Vessel under the terms of the relevant Shipmanagement Agreement. By written notice to the Partnership, the Manager may direct
the Partnership to pay any amounts owing by the Manager to any Submanager pursuant to a subcontract of any provisions of this Agreement
or any Shipmanagement Agreement or any Supervision Agreement, directly to the relevant Submanager.

 

SECTION 9.7. In the event that a Shipmanagement
Agreement is terminated, other than by reason of default by the Managers, the Management Fee payable to the Manager under Section
9.1(a) for the Vessel subject to such Shipmanagement Agreement shall be payable in respect of such Vessel for a further period
of three months from the termination date. The fees payable for the said three

    	 

    		20

    

months shall be paid in one lump sum in advance
on the termination of the relevant Shipmanagement Agreement. In addition the relevant member of the Partnership Group shall pay
any Severance Costs (as such term is defined in the relevant Shipmanagement Agreement) for the relevant Vessel which may materialize.

 

ARTICLE
X

 

BUDGETS,
CORPORATE PLANNING AND EXPENSES

 

SECTION 10.1. On or before October 1 of each
calendar year, the Manager shall prepare and submit to the Executive Officers a detailed draft budget for the next calendar year
in a format acceptable to the Executive Officers and the Board of Directors and generally used by the Manager which shall include
a statement of estimated revenue and out-of-pocket expenses in providing the Services (the “Draft Budget”).

 

SECTION 10.2. For a period of 20 days after
receipt of the Draft Budget, the Executive Officers, from time to time, may request further details and submit written comments
on the Draft Budget. If the Executive Officers do not agree with any item of the Draft Budget, they will, within the same 20-day
period, give the Manager notice of any inquiries to the Draft Budget, which notice will include the list of items under consideration
(the “Questioned Items”) and a proposal for the resolution of each such Questioned Item. The Executive Officers
and the Manager will endeavor to resolve any such differences between them with respect to the Questioned Items, failing which
the relevant Questioned Items shall be left as presented by the Manager. If the Executive Officers do not present any Questioned
Items within such 20-day period, they will be deemed to have accepted the Draft Budget and, such Draft Budget, shall be deemed
to be the Approved Budget (as defined in Section 10.3 below).

 

SECTION 10.3. By November 15 of the relevant
calendar year (or such later date as the Manager and the Board of Directors deem appropriate), and to the extent that changes are
required to the Draft Budget pursuant to Section 10.2, the Manager will prepare and deliver to the Partnership a revised budget
that has been approved by the Executive Officers (the “Approved Budget”). However, the Partnership acknowledges
that the Approved Budget is only an estimate of the performance of the Vessels and/or the Partnership Group and the Manager makes
no assurance, representation or warranty that the actual performance of the Vessels and/or the Partnership Group in any relevant
calendar year will correspond to the estimates contained in the Approved Budget for that calendar year. Notwithstanding the provisions
of Section 10.2 and this Section 10.3, the Approved Budget for the 2015 calendar year shall be the 2015 revised budget that has
been previously approved pursuant to the Amended and Restated Group Management Agreement.

 

SECTION 10.4. The Manager may, from time
to time, in any calendar year propose amendments to the Approved Budget upon 15 days notice to the Partnership, in which event
the Executive Officers will have the right to approve the amendments in accordance with the process set out in Section 10.2 with
the relevant time periods being amended accordingly.

    	 

    		21

    

SECTION 10.5. Once the Approved Budget has
been delivered, the Manager shall prepare and present to the Partnership its estimate of the working capital requirements of the
Vessels and the Partnership Group and the Manager shall each month update this estimate. Based thereon, the Manager shall each
month make a request to the Partnership and/or, as the case may be, the relevant members of the Partnership Group, in writing for
the funds required to provide the Services to the Partnership Group and to operate each Vessel for the ensuing month, including
the payment of any occasional or extraordinary item of expenditure, such as emergency repair costs, additional insurance premiums,
bunkers or provisions. The Manager may also make a request in writing to the Partnership and/or, as the case may be, the relevant
members of the Partnership Group, at any time for funds required for the payment of any occasional or extraordinary item of expenditure,
such as emergency repair costs, additional insurance premiums, bunkers or provisions. Such funds shall be received by the Manager
within ten calendar days after the receipt by the Partnership or, as the case may be, the relevant member of the Partnership Group
of the Manager’s written request and shall be held in a separate bank account in the name of the Manager or, if requested
by the Manager, in the name of the Partnership or of the relevant member of the Partnership Group.

 

At the end of each quarter or, if the Manager from time to time
so requires, month, the Manager shall preliminarily reconcile the amounts advanced to it by the Partnership or, as the case may
be, the relevant member of the Partnership Group, with the amounts actually expended by it for the operation of each of the Vessels
and/or the Partnership Group, and (a) the Manager shall remit to the Partnership, or credit to the Partnership amounts to be advanced
to it hereunder for future months, any unused portion of the amounts previously advanced by the Partnership or, as the case may
be, the relevant member of the Partnership Group, or (b) the Partnership shall pay to the Manager any amounts properly expended
by the Manager in excess of the amounts previously advanced by the Partnership or, as the case may be, the relevant member of the
Partnership Group. The Partnership and the Manager shall reconcile any amounts due to the Partnership by the Manager or due to
the Manager by the Partnership for each fiscal year of the Partnership as promptly as practicable following the close of each such
fiscal year. Without prejudice to Section 10.8, any expenses incurred by the Manager under the terms of this Agreement on behalf
of any member of the Partnership Group may be debited against the account of the respective member of the Partnership Group, but
shall in any event remain payable by the Partnership and the relevant member of the Partnership Group to the Manager on demand.

 

SECTION 10.6. The Manager shall also maintain
the records of all costs and expenses incurred, including any invoices, receipts and supplementary materials as are necessary or
proper for the settlement of accounts.

 

SECTION 10.7. Insofar as any moneys are collected
from third parties by the Manager under the terms of this Agreement, any Shipmanagement Agreement and/or any Supervision Agreement
(other than moneys payable by a member of the Partnership Group to the Manager), such moneys and any interest thereon shall be
held to the credit of the relevant member of the Partnership Group in a separate bank account in the name

    	 

    		22

    

thereof. Interest on any such bank account
shall be for the benefit of the relevant member of the Partnership Group.

 

SECTION 10.8. Notwithstanding anything contained
herein to the contrary, the Manager shall in no circumstances be required to use or commit its own funds to finance the provision
of the Services.

 

SECTION 10.9. To the extent that a Related
Manager has been appointed in accordance with the terms of Section 2.4, it is agreed by the Partnership and the Manager for the
benefit of such Related Manager that the provisions of Article X shall apply to such Related Manager as if such provisions were
repeated herein, but with references to:

 

(a) the “Manager” being
deemed as references to the relevant Related Manager;

 

(b) the “Services” being
deemed as references to the services to be performed by such Related Manager under the relevant management agreement;

 

(c) the “Vessels” being
deemed as references to the Vessels being managed by such Related Manager under a management agreement entered into directly with
the relevant Partnership Group members;

 

(d) the “Partnership”
being deemed as references to the relevant Partnership Group members; and

 

(e) references to “this Agreement,
any Shipmanagement Agreement and/or any Supervision Agreement” being deemed as references to any management agreement signed
by such Related Manager directly with the relevant Partnership Group members.

 

ARTICLE
XI

 

LIABILITY
AND INDEMNITY

 

SECTION 11.1. Save for the obligation of
the Partnership to pay any moneys due to the Manager hereunder, neither any member of the Partnership Group nor the Manager shall
be under any liability to the other for any failure to perform any of their obligations hereunder by reason of Force Majeure. “Force
Majeure” shall mean any cause whatsoever of any nature or kind beyond the reasonable control of the relevant member of
the Partnership Group or the Manager, including, without limitation, acts of God, acts of civil or military authorities, acts of
war or public enemy, acts of any court, regulatory agency or administrative body having jurisdiction, insurrections, riots, strikes
or other labor disturbances, embargoes or other causes of a similar nature.

 

SECTION 11.2. The Manager, including its
officers, directors, employees, shareholders, agents, sub-contractors and any Submanager (the “Manager

    	 

    		23

    

Related Parties”) shall be under
no liability whatsoever to any member of the Partnership Group or to any third party (including the Crew) for any loss, damage,
delay or expense of whatsoever nature, whether direct or indirect (including but not limited to loss of profit arising out of or
in connection with detention of or delay to a Vessel), and howsoever arising in the course of the performance of this Agreement,
any Shipmanagement Agreement or any Supervision Agreement, unless and to the extent that the same is proved to have resulted solely
from the gross negligence or willful misconduct of the Manager, its officers, employees, agents, sub-contractors or any Submanager.

 

SECTION 11.3. Notwithstanding anything that
may appear to the contrary in this Agreement or any Shipmanagement Agreement, the Manager shall not be liable for any of the actions
of the Crew, even if such actions are negligent, grossly negligent or willful, except only to the extent that they are shown to
have resulted from a failure by the Manager to discharge its obligations under clause 3.1 of each Shipmanagement Agreement, in
which case the Manager’s liability shall be limited in accordance with the terms of this Article XI.

 

SECTION 11.4. The Partnership shall indemnify
and hold harmless the Manager Related Parties against all actions, proceedings, claims, demands or liabilities whatsoever or howsoever
arising which may be brought against them or incurred or suffered by them arising out of or in connection with the performance
of this Agreement, any Shipmanagement Agreement or any Supervision Agreement and against and in respect of any loss, damage, delay
or expense of whatsoever nature (including legal costs and expenses on a full indemnity basis), whether direct or indirect, incurred
or suffered by any Manager Related Party arising out of or in connection with the performance of this Agreement, any Shipmanagement
Agreement and any Supervision Agreement, unless incurred or suffered due to the gross negligence or willful misconduct of any Manager
Related Party.

 

SECTION 11.5. It is hereby expressly agreed
that no employee or agent of the Manager (including any sub-contractor from time to time employed by the Manager) shall in any
circumstances whatsoever be under any liability whatsoever to any member of the Partnership Group or any third party for any loss,
damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while
acting in the course of or in connection with his employment or agency and, without prejudice to the generality of the foregoing
provisions in this Article XI, every exemption, limitation, condition and liberty herein contained and every right, exemption from
liability, defense and immunity of whatsoever nature applicable to the Manager or to which the Manager is entitled hereunder shall
also be available and shall extend to protect every such employee or agent of the Manager acting as aforesaid, and for the purpose
of all the foregoing provisions of this Article XI, the Manager is or shall be deemed to be acting as agent or trustee on behalf
of and for the benefit of all persons who are or might be the Manager’s servants or agents from time to time (including sub-contractors
as aforesaid) and all such persons shall to this extent be or be deemed to be parties to this Agreement. Nothing in this Section
11.5 shall be construed so as to further limit any liability the Manager may have to the Partnership Group under Section 11.2.

    	 

    		24

    

SECTION 11.6. The provisions of this Article
XI shall survive any termination of this Agreement.

 

ARTICLE
XII

 

RIGHTS
OF THE MANAGER AND RESTRICTIONS ON THE MANAGER’S AUTHORITY

 

SECTION 12.1. Except as may be provided in
this Agreement or in any separate written agreement between the Partnership or any other member of the Partnership Group and the
Manager or a Submanager, the Manager and any Submanager shall be an independent contractor and not the agent of the Partnership
or any other member of the Partnership Group and shall have no right or authority to incur any obligation on behalf of any member
of the Partnership Group or to bind any member of the Partnership Group in any way whatsoever. Nothing in this Agreement shall
be deemed to make the Manager or any Submanager or any of their subsidiaries or employees an employee, joint venturer or partner
of any member of the Partnership Group.

 

SECTION 12.2. The Partnership acknowledges
that the Manager or, as the case may be, any Submanager shall have no responsibility hereunder, direct or indirect, with regard
to the formulation of the business plans, policies, management or strategies (financial, tax, legal or otherwise) of any member
of the Partnership Group, which is solely the responsibility of each respective member of the Partnership Group. Each member of
the Partnership Group shall set its corporate policies independently through its respective board of directors and executive officers
and nothing contained herein shall be construed to relieve such directors or officers of each respective member of the Partnership
Group from the performance of their duties or to limit the exercise of their powers.

 

SECTION 12.3. Notwithstanding the other provisions
of this Agreement:

 

(a) the Manager or, as the case
may be, any Submanager may act with respect to a member of the Partnership Group upon any advice, resolutions, requests, instructions,
recommendations, direction or information obtained from such member of the Partnership Group or any banker, accountant, broker,
lawyer or other person acting as agent of or adviser to such member of the Partnership Group and the Manager or, as the case may
be, the relevant Submanager shall incur no liability to such member of the Partnership Group for anything done or omitted or suffered
in good faith in reliance upon such advice, instruction, resolution, recommendation, direction or information made or given by
such member of the Partnership Group or its agents, in the absence of gross negligence or willful misconduct by the Manager or,
as the case may be, the relevant Submanager or their respective servants, and shall not be responsible for any misconduct, mistake,
oversight, error of judgment, neglect, default, omission, forgetfulness or want of prudence on the part of any such

    	 

    		25

    

banker, accountant, broker, lawyer,
agent or adviser or other person as aforesaid;

 

(b) the Manager or, as the case
may be, a Submanager shall not be under any obligation to carry out any request, resolution, instruction, direction or recommendation
of any member of the Partnership Group or its agents if the performance thereof is or would be illegal or unlawful; and

 

(c) the Manager or, as the case
may be, the relevant Submanager shall incur no liability to any member of the Partnership Group for doing or failing to do any
act or thing which it shall be required to do or perform or forebear from doing or performing by reason of any provision of any
law or any regulation or resolution made pursuant thereto or any decision, order or judgment of any court or any lawful request,
announcement or similar action of any person or body exercising or purporting to exercise the legitimate authority of any government
or of any central or local governmental institution in each case where the above entity has jurisdiction.

 

ARTICLE
XIII

 

TERMINATION
OF THIS AGREEMENT

 

SECTION 13.1. This Agreement shall be effective
as of the Effective Date and, subject to Sections 13.2, 13.3, 13.4 and 13.5, shall continue until December 31, 2015 (the “Initial
Term”). Thereafter the term of this Agreement shall be extended on a year-to-year basis for up to ten times (each a “Subsequent
Term”) unless the General Partner, or, after a Board Election, the Partnership, at least 12 months prior to the end of
the then current term, gives written notice to the Manager that it wishes to terminate this Agreement at the end of the then current
term. In no event will the term of this Agreement (the “Term”) extend beyond the date falling ten years after
the last day of the Initial Term.

 

SECTION 13.2. The Partnership shall be entitled
to terminate this Agreement by notice in writing to the Manager if:

 

(a) the Manager defaults in the
performance of any material obligation under this Agreement, subject to a cure right of 20 Business Days following written notice
by the Partnership, PROVIDED ALWAYS, that any default of the Manager to perform any of its obligations under a particular
Shipmanagement Agreement or any Supervision Agreement, shall not, in itself, entitle the Partnership to terminate this Agreement
pursuant to this Section 13.2(a) and shall only allow the relevant member of the Partnership Group to terminate the relevant Shipmanagement
Agreement or Supervision Agreement;

    	 

    		26

    

(b) any moneys due and payable to
the Partnership or third parties by the Manager under this Agreement is not paid or accounted for within 10 Business Days following
written notice by the Partnership;

 

(c) there is a Change in Control
of the Manager; or

 

(d) the Manager is convicted of,
enters a plea of guilty or nolo contendere with respect to, or enters into a plea bargain or settlement admitting guilt for a crime
(including, for the avoidance of doubt, fraud), which conviction, plea bargain or settlement is demonstrably and materially injurious
to the Partnership, PROVIDED ALWAYS, such crime is not a misdemeanor and PROVIDED ALWAYS further that such crime
has been committed solely and directly by an officer or director of the Manager acting within the terms of its employment or office.

 

SECTION 13.3. The Manager shall be entitled
to terminate this Agreement by notice in writing to the Partnership if:

 

(a) any moneys payable by the Partnership
under this Agreement is not paid when due or if due on demand within 20 Business Days following demand by the Manager;

 

(b) the Partnership defaults in
the performance of any other material obligations under this Agreement, subject to a cure right of 20 Business Days following written
notice by the Manager; or

 

(c) there is a Change in Control
of the General Partner or the Partnership;

 

SECTION 13.4. Either party shall be entitled
to terminate this Agreement by notice in writing to the other party if:

 

(a) the other party ceases to conduct
business, or all or substantially all of the equity-interests, properties or assets of such other party are sold, seized or appropriated
which, in the case of seizure or appropriation, is not discharged within 20 Business Days;

 

(b) (i) the other party files a
petition under any bankruptcy law, makes an assignment for the benefit of its creditors, seeks relief under any law for the protection
of debtors or adopts a plan of liquidation; (ii) a petition is filed against the other party seeking to have it declared insolvent
or bankrupt and such petition is not dismissed or stayed within 90 Business Days of its filing; (iii) the other party shall admit
in writing its insolvency or its inability to pay its debts as they mature; (iv) an order is made for the appointment of a liquidator,
manager, receiver or trustee of the other party of all or a substantial part of its assets; (v) if an encumbrancer takes possession
of or a receiver or trustee is appointed over the whole or a substantial part of the other party’s undertaking, property
or

    	 

    		27

    

assets; or (vi) if an order is made
or a resolution is passed for the other party’s winding up;

 

(c) the other party is prevented
from performing its obligations hereunder, in any material respect, by reasons of Force Majeure for a period of two or more consecutive
months; or

 

(d) all Supervision Agreements and
all Shipmanagement Agreements are terminated in accordance with the respective terms thereof.

 

SECTION 13.5. Upon the effective date of
termination pursuant to this Article XIII, the Manager shall promptly terminate its service hereunder, after taking reasonable
commercial steps to minimize any interruption to the business of the members of the Partnership Group.

 

SECTION 13.6. Upon termination, the Manager
shall, as promptly as possible, submit a final accounting of funds received and disbursed under this Agreement, any Supervision
Agreement and/or any Shipmanagement Agreement and of any remaining Management Fees and/or any other funds due from the Partnership
or any other member of the Partnership Group, calculated pro rata to the date of termination, and any non-disbursed funds of any
member of the Partnership Group in the Manager’s possession or control will be paid by the Manager as directed by such member
of the Partnership Group promptly upon the Manager’s receipt of all sums then due to it under this Agreement, any Supervision
Agreement and/or any Management Agreement, if any.

 

SECTION 13.7. Upon termination of this Agreement,
the Manager shall release to the Partnership the originals where possible, or otherwise certified copies, of all such accounts
and all documents specifically relating to each Vessel or the provision of the Services.

 

SECTION 13.8. Upon termination of this Agreement
either by the Manager for any reason (other than pursuant to Section 13.4(c)) or by the Partnership pursuant to Section 13.1, the
Partnership shall be liable to pay to the Manager as liquidated damages an amount in U.S. Dollars and common units representing
limited partnership interests in the Partnership equal to the lesser of (a) ten times and (b) the number of full years remaining
prior to the date falling ten years after the last day of the Initial Term times, in each case, the aggregate fees due and payable
to the Manager under the terms of this Agreement during the 12-month period ending on the date of termination of this Agreement
(without taking into account any reduction to the fees payable to the Manager under Section 9.1(a) in the event that a Submanager
has been appointed as provided therein), PROVIDED ALWAYS, that the amount of liquidated damages payable thereunder shall
never be less than two times the aggregate fees due and payable to the Manager under the terms of this Agreement during the 12-month
period ending on the date of termination of this Agreement.

    	 

    		28

    

SECTION 13.9. The provisions of this Article
XIII shall survive any termination of this Agreement.

 

ARTICLE
XIV

 

NOTICES

 

SECTION 14.1. All notices, consents and other
communications hereunder, or necessary to exercise any rights granted hereunder, shall be in writing, sent either by prepaid registered
mail or telefax, and will be validly given if delivered on a Business Day to an individual at the following address:

 

Costamare Partners LP

60 Zephyrou Street & Syngrou Avenue

Palaio Faliro, Athens, Greece

 

Telefax: +30 210 9406454 

Attention: CEO

 

Costamare Shipping Company S.A.

60 Zephyrou Street & Syngrou 

Avenue, Palaio Faliro, Athens, Greece

 

Telefax: +30 210 9409081

Attention: General Manager

 

ARTICLE
XV

 

APPLICABLE
LAW

 

SECTION 15.1. This Agreement and any non-contractual
obligations connected with it shall be governed by, and construed in accordance with, the laws of England.

 

SECTION 15.2. Except for Sections 2.3, 3.5,
9.5 and 9.6 and Articles XI and XII which can be relied by a Submanager (other than V.Ships) and Sections 2.3, 3.5, 9.5, 9.6 and
10.9 and Articles XI and XII which can be relied by a Related Manager, no other term of this Agreement is enforceable under the
Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

 

ARTICLE
XVI

 

ARBITRATION

 

SECTION 16.1. All disputes arising out of
this Agreement and/or any non-contractual obligations connected with it shall be arbitrated in London in the following manner.
One arbitrator is to be appointed by each of the parties hereto and a third by the two so chosen. Their decision or that of any
two of them shall be final. The

    	 

    		29

    

arbitrators shall be commercial persons,
conversant with shipping matters. Such arbitration is to be conducted in accordance with the London Maritime Arbitration Association
(LMAA) Terms current at the time when the arbitration proceedings are commenced and in accordance with the Arbitration Act 1996
or any statutory modification or re-enactment thereof.

 

SECTION 16.2. In the event that a party hereto
shall state a dispute and designate an arbitrator in writing, the other party shall have 10 Business Days to designate its own
arbitrator. If such other party fails to designate its own arbitrator within such period, the arbitrator appointed by the first
party can render an award hereunder.

 

SECTION 16.3. Until such time as the arbitrators
finally close the hearings, either party shall have the right by written notice served on the arbitrators and on the other party
to specify further disputes or differences under this Agreement for hearing and determination.

 

SECTION 16.4. The arbitrators may grant any
relief, and render an award, which they or a majority of them deem just and equitable and within the scope of this Agreement, including
but not limited to the posting of security. Awards pursuant to this Article XVI may include costs and judgments may be entered
upon any award made herein in any court having jurisdiction.

 

ARTICLE
XVII

 

MISCELLANEOUS

 

SECTION 17.1. This Agreement constitutes
the sole understanding and agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements
or understandings, written or oral, with respect thereto. This Agreement may not be amended, waived or discharged except by an
instrument in writing executed by the party against whom enforcement of such amendment, waiver or discharge is sought.

 

SECTION 17.2. During the term hereof, the
Manager will not provide services hereunder through, or otherwise cause any member of the Partnership Group to have, an office
or fixed place of business in the United States.

 

SECTION 17.3. This Agreement may be executed
in one or more written counterparts, each of which shall be deemed an original, but all of which together shall constitute one
instrument.

 

IN WITNESS WHEREOF the undersigned have executed
this Agreement as of the date first above written.

 

	 	COSTAMARE PARTNERS LP
	 	 	 
	 	By:  	COSTAMARE PARTNERS GP LLC,
	 	its general partner

    	 

    		30

    

	 	By:  	 
	 	 	Name: Gregory Zikos 
	 	 	Title:   CFO
	 	 	 

	 	COSTAMARE PARTNERS GP LLC
	 	 
	 	By:  	 
	 	 	Name: Gregory Zikos
	 	 	Title:   CFO

 

	 	COSTAMARE SHIPPING COMPANY S.A.
	 	 	 
	 	By:  	 
	 	 	Name: Diamantis Manos
	 	 	Title:  Director

    	 

    	

    

SCHEDULE A

 

SHIPOWNING SUBSIDIARIES

 

1) Capetanissa Maritime Corporation

 

2) Jodie Shipping Co.

 

3) Kayley Shipping Co.

 

4) Raymond Shipping Co.

    	 

    	

    

SCHEDULE B

 

NON-SHIPOWNING SUBSIDIARIES

 

1. Costamare Partners Holdings LLC

    	 

    	

    

APPENDIX I

 

FORM OF SHIP MANAGEMENT AGREEMENT

 

 
 

 

 

 

 

 

 

	1.	
        Date of Agreement

        [to be dated the date of execution]
	THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)  

STANDARD SHIP MANAGEMENT AGREEMENT

CODE NAME: “SHIPMAN 98”

Part I

	2.	Owners
    (name, place of registered office and law of registry) (Cl. 1)	3.	Managers
    (name, place of registered office and law of registry) (Cl. 1)
	 	
        Name

        [name of relevant member of the Partnership Group]
	 	
        Name

        Costamare Shipping Company S.A.

	 	
        Place of registered office

        [to be completed]
	 	
        Place of registered office

        Panama City, Republic of Panama

	 	
        Law of registry

        [to be completed]
	 	
        Law of registry

        Republic of Panama

	4.	
        Day and year of commencement
        of Agreement (Cl. 2)

        [to be completed on execution]

	5.	
        Crew Management (state “yes” or “no”
        as agreed) (Cl. 3.1)

        YES
	6.	
        Technical Management (state “yes” or “no”
        as agreed) (Cl. 3.2)

        YES

	7.	
        Commercial Management (state “yes” or “no”
        as agreed) (Cl. 3.3)

        YES
	8.	
        Insurance Arrangements (state “yes” or
        “no” as agreed) (Cl. 3.4)

        YES

	9.	
        Accounting Services (state “yes” or “no”
        as agreed) (Cl. 3.5)

        YES
	10.	
        Sale or purchase of the Vessel (state “yes”
        or “no” as agreed) (Cl. 3.6)

        YES

	11.	
        Provisions (state “yes” or “no”
        as agreed) (Cl. 3.7)

        YES
	12.	
        Bunkering (state “yes” or “no”
        as agreed) (Cl. 3.8)

        YES

	13. 	
        Chartering Services Period (only to be filled in if
“yes” stated in Box 7) (Cl. 3.3(i)) 

36 months (including any optional extensions applicable) and with a gross daily rate (or time charter equivalent) of US$[  ]
	14. 	
        Owners’ Insurance (state alternative (i),
        (ii) or (iii) of Cl. 6.3)

        Clause 6.3(ii)

	15.	
        Annual Management Fee (state annual amount) (Cl. 8.1)

        See Clause 8.1
	16.	
        Severance Costs (state maximum amount) (Cl. 8.4(ii)

        not applicable

	17.	
        Day and year of termination of Agreement (Cl. 17)

        see Clause 17
	18.	
        Law and Arbitration (state alternative 19.1,
        19.2 or 19.3; if 19.3 place of arbitration must be stated) (Cl. 19)

        see Clause 19.1

	19.	
        Notices (state postal and-cable-address,
telex and telefax number for serving notice and communication to the Owners) (Cl. 20)

        c/o Costamare Partners LP

        60 Zephyrou Street & Syngrou Avenue

        Athens, Greece

        Telefax: +30 210 940 6454

        Attention: Chief Executive Officer
	20.	
        Notices (state postal and
        cable address, telex and telefax number for serving
        notice and communication to the Managers) (Cl. 20)

        60 Zephyrou Street & Syngrou Avenue

        Athens, Greece

        Telefax: +30 210 940 9051

        Attention: Chief Executive Officer

	It
    is mutually agreed between the party stated in Box 2 and the party stated in Box 3 that this Agreement consisting
    of PART I and PART II as well as Annexes “A” (Details of Vessel),
    “B” (Details of Crew), “C” (Budget) and “D” (Associated vessels) attached
    hereto, shall be performed subject to the conditions contained herein. In the event of a conflict of conditions, the provisions
    of PART I and Annexes “A”, “B”, “C”
    and “D” shall prevail over those of PART II to
    the extent of such conflict but no further..
	Signature(s) (Owners)

        [name of relevant
member of the Partnership Group]

	Signature(s) (Managers)

         COSTAMARE SHIPPING COMPANY S.A.

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO
approved document and this computer generated document.

    	A-I-1

    	

    

PART II

“SHIPMAN 98” Standard Ship Management Agreement

 

	1.	Definitions	1
	 	In this Agreement save where the context otherwise requires, 	2
	 	the following words and expressions shall have the meanings	3
	 	hereby assigned to them.	4
	 	“Owners” means the party identified in Box 2.	5
	 	“Managers” means the party identified in Box 3.	6
	 	“Vessel” means the vessel or vessels details of which
    are set out 	7
	 	in Annex “A” attached hereto.	8
	 	“Business Day” shall have the same meaning as ascribed thereto
    	 
	 	In Section 1.1 of the Partnership Management Agreement.	8
	 	“Crew” means the Master, officers and ratings employed
    on the	9
	 	Vessel from time to time of the numbers,	 
	 	rank and nationally specified in Annex “B”
    attached hereto.	10
	 	“Crew support Code” means all expenses of a general
    nature	11
	 	which are not particularly referable to any individual vessel for	12
	 	the time being managed by the Managers and which are incurred	13
	 	by the Managers for the purpose of providing an efficient and	14
	 	economic management service and, without prejudice to the	15
	 	generality of the foregoing, shall include the cost of crew standby	16
	 	pay, training schemes for officers and ratings, cadet training	17
	 	schemes, sick pay, study pay, recruitment and interviews.	18
	 	“Related Manager” shall have the meaning as ascribed
    thereto 	19
	 	in Section 1.1 of the Partnership Management Agreement. 	 
	 	“Severance Costs” means the costs which the employers
    are 	 
	 	legally obliged to pay to or in respect of the Crew as a result of	20
	 	the early termination of any employment contract for service on 	21
	 	the Vessel.	22
	 	“Crew Insurances” means insurances against crew risks
    which 	23
	 	shall include but not be limited to death, sickness, repatriation, 	24
	 	injury, shipwreck unemployment indemnity and loss of personal 	25
	 	effects.	26
	 	“Partnership Management Agreement” means the agreement dated	 
	 	[  ] 2015 made between the Partnership and the Managers.	 
	 	“Management Services” means the services specified in
    sub-	27
	 	clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12.	28
	 	“ISM Code” means the International Management Code for
    the	29
	 	Safe Operation of Ships and for Pollution Prevention as adopted	30
	 	by the International Maritime Organization (IMO) by resolution	31
	 	A.741(18) or any subsequent amendment thereto.	32
	 	“ISPS Code” means the International Ship and Port Facility.	 
	 	Security Code constituted pursuant to resolution A.924(22) of 	 
	 	
the International Maritime Organisation now set out in Chapter 	 
	 	XI-2 of the International Convention for the Safety of Life at Sea 	 
	 	(SOLAS) 1974 (as amended) and the mandatory ISPS Code as 	 
	 	adopted by a Diplomatic Conference of the International 	 
	 	Maritime Organisation on Maritime Security in December 2002 	 
	 	and includes any amendments or extensions to it and any 	 
	 	regulation issued pursuant to it.	 
	 	“Partnership” means Costamare Partners LP of Trust Company
    	 
	 	Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the 	 
	 	Marshall Islands MH96960.	 
	 	“STCW 95” means the International Convention on Standards	33
	 	of Training, Certification and Watchkeeping for Seafarers, 1978, 	34
	 	as amended in 1995 or any subsequent amendment thereto.	35
	 	 	 
	2.	Appointment of Managers	36
	 	With effect from the day and year stated in Box 4 and continuing
    	37
	 	unless and until terminated as provided herein, the Owners 	38
	 	hereby appoint the Managers as the technical and commercial 	39
	 	managers of the Vessel and the Managers hereby agree 	 
	 	to act as the technical and commercial Mmanagers of the
    Vessel.	40
	 	 	 
	3.	Basis of Agreement	 
	 	Subject to the terms and conditions herein provided, during the	42
	 	period of this Agreement, the Managers shall carry out	43
	 	Management Services in respect of the Vessel as agents for	44
	 	and on behalf of the Owners. Subject to Section 4.6 of the Partnership	45
	 	Management Agreement, Tthe Managers shall
    have authority	 
	 	to take such actions as they may from time to time in their absolute 	46
	 	discretion consider to be necessary to enable them to perform 	47
	 	this Agreement in accordance with sound ship management	48

	 	practice.	49
	 	 	 

	3.1 Crew Management	50
	(only applicable if agreed according to Box 5) 	51
	The Managers shall provide suitably qualified Crew for the Vessel 	52
	as required by the Owners in accordance with the STCW 95 	53
	requirements, provision of which includes but is not limited to 	54
	the following functions: 	55

	 	(i)	selecting and engaging the Vessel’s Crew, including payroll 	56
	 	 	arrangements, pension administration, and insurances for 	57
	 	 	the Crew other than those mentioned in Clause 6; 	58
	 	(ii)	ensuring that the applicable requirements of the law of the	58
	 	 	flag of the Vessel are satisfied in respect of manning levels, 	60
	 	 	rank, qualification and certification of the Crew and 	61
	 	 	employment regulations including Crew’s tax, social 	62
	 	 	insurance, discipline and other requirements; 	63
	 	(iii)	ensuring that all members of the Crew have passed a medical 	64
	 	 	examination with a qualified doctor certifying that they are fit 	65
	 	 	for the duties for which they are engaged and are in possession 	66
	 	 	of valid medical certificates issued in accordance with 	67
	 	 	appropriate flag State requirements. In the absence of 	68
	 	 	applicable flag State requirements the medical certificate shall 	69
	 	 	be dated not more than three months prior to the respective 	70
	 	 	Crew members leaving their country of domicile and 	71
	 	 	maintained for the duration of their service on board the Vessel; 	72
	 	(iv)	ensuring that the Crew shall have a command of the English 	73
	 	 	language of a sufficient standard to enable them to perform 	74
	 	 	their duties safely; 	75
	 	(v)	arranging transportation of the Crew, including 	76
	 	 	repatriation, board and lodging as and when required at rates and 	 
	 	 	types of accommodations as customary in the industry;	 
	 	(vi)	training of the Crew and supervising their efficiency;	77
	 	(vii)	keeping and maintaining full and complete records of any	78
	 	 	labor agreements which may be entered into with the Crew and,  	 
	 	 	if applicable, conducting union negotiations;	 
	 	(viii) 	operating the Managers’ drug and alcohol policy unless	79
	 	 	otherwise agreed in writing.	80
	 	 	 	 
	3.2	Technical Management	81
	 	(only applicable if agreed according to Box 6)	82
	 	The Managers shall provide technical management which	83
	 	includes, but is not limited to, the following functions:	84
	 	(i)	provision of competent personnel to supervise the	85
	 	 	maintenance and general efficiency of the Vessel;	86
	 	(ii)	arrangement and supervision of dry dockings, repairs,	87
	 	 	alterations and the upkeep of the Vessel to the standards	88
	 	 	required by the Owners provided that the Managers shall	89
	 	 	be entitled to incur the necessary expenditure to ensure	90
	 	 	that the Vessel will comply with the law of the flag of the	91
	 	 	Vessel and of the places where she trades, and all	92
	 	 	requirements and recommendations of the classification	93
	 	 	society;	94
	 	(iii)	arrangement of the supply of necessary stores, spares and	95
	 	 	lubricating oil;	96
	 	(iv)	appointment of surveyors and technical consultants as the	97
	 	 	Managers may consider from time to time to be necessary;	98
	 	(v)	development, implementation and maintenance of a Safety	99
	 	 	Management System (SMS) in accordance with the ISM	100
	 	 	Code (see sub-clauses 4.2 and 5.3) and of a security system
    in 	101
	 	 	accordance with the ISPS Code;	 
	 	(vi)	handling any claims against the builder of the Vessel 	 
	 	 	arising out of the relevant shipbuilding contract, 	 
	 	 	if applicable; and	 
	 	(vii)	on request by the Owners, providing the Owners with a 	 
	 	 	copy of any inspection report, survey, valuation or any other 	 
	 	 	similar report prepared by any shipbrokers, surveyors, the 	 
	 	 	Class etc..	 
	 	 	 	 
	 	3.3 Commercial Management	102
	 	(only applicable if agreed according to Box 7)	103
	 	The Managers shall provide the commercial operation of the	104

This document is a computer generated SHIPMAN 98 form printed
by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to
the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.
BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved
document and the computer generated document.

    	A-I-2

    	

    

PART II

“SHIPMAN 98” Standard Ship Management Agreement

 

	 	Vessel,-as-required-by-the-Owners, which includes,
    but is not	105
	 	limited to, the following functions:	106
	 	(i)	providing chartering services in-accordance-with-the-Owners’	107
	 	 	institutions-which include, but are not limited to, seeking	108
	 	 	and negotiating employment for the Vessel and the conclusion	109
	 	 	(including the execution thereof) of charter parties or other	110
	 	 	contracts relating to the employment of the Vessel, whether on a 	111
	 	 	voyage, time, demise, contract of affreightment or other	 
	 	 	basis. If such a	 
	 	 	contract exceeds the period and is for a rate that is less than	112
	 	 	the rate, in either case, stated in Box 13, consent thereto	 
	 	 	in writing shall first be obtained from the Owners.	113
	 	(ii)	arranging of the proper payment to Owners or their nominees	114
	 	 	of all hire and/or freight revenues or other moneys of	115
	 	 	whatsoever nature to which Owners may be entitled arising	116
	 	 	out of the employment of or otherwise in connection with the	117
	 	 	Vessel;.	118
	 	(iii)	providing voyage estimates and accounts and calculating of	119
	 	 	hire, freights, demurrage and/or dispatch moneys due from	120
	 	 	or due to the charterers of the Vessel;	121
	 	(iv)	issuing to the Crew ofappropriate voyage instructions
    and	122
	 	 	monitoring voyage performance;	 
	 	(v)	appointing agents;	123
	 	(vi)	appointing stevedores;	124
	 	(vii)	arranging surveys associated with the commercial operation	125
	 	 	of the Vessel;	126
	 	(viii) 	carrying out the necessary communications with the 	 
	 	 	shippers, charterers and others involved with the receiving	 
	 	 	and handling of the Vessel at the relevant loading and	 
	 	 	discharging ports, including sending any notices required 	 
	 	 	under the terms of the Vessel’s employment at the time;	 
	 	(ix)	invoicing on behalf of the Owners all freights, hires,	 
	 	 	demurrages, outgoing claims, refund of taxes, balances of 	 
	 	 	 disbursements, statements of account and other sums due	 
	 	 	 to the Owners and account receivables arising from the 	 
	 	 	operation of the Vessel and, upon the request of the Owners, 	 
	 	 	issuing releases on behalf of the Owners upon receipt of 	 
	 	 	payment or settlement of any such amounts;	 
	 	(x)	preparing off-hire statements and/or hire statements;	 
	 	(xi)	procuring and arranging for port entrance and clearance,	 
	 	 	pilots, consular approvals and other services necessary for	 
	 	 	the management and safe operation of the Vessel; and	 
	 	(xii)	reporting to the Owners of any major casualties,	 
	 	 	damages received or caused by the Vessel or any major	 
	 	 	release or discharge of oil or other hazardous material not in 	 
	 	 	compliance with any laws.	 
	 	 
	3.4 Insurance Arrangements’	127
	(only applicable if agreed according to Box 8)	128
	The Managers shall arrange insurances in accordance with	129
	Clause 6, on such terms and conditions as the Owners shall	130
	have instructed or agreed, in particular regarding underwriters	131
	conditions,	 
	insured values, deductibles and franchises.	132
	 	 	 	 
	3.5 Accounting Services	133
	(only applicable if agreed according to Box 9)	134
	Without prejudice to the relevant provisions of the Partnership	135
	Management Agreement and, in particular, but without 	 
	limitation, Section 4.11, Section 5.1 and Section 10.6 thereof,
    	 
	Tthe Managers shall:	 
	(I)	establish an accounting system which meets the	136
	 	requirements of the Owners and provide regular accounting	137
	 	services, supply regular reports and records,	138
	(ii)	maintain the records of all costs and expenditure incurred	139
	 	as well as data necessary or proper for the settlement of	140
	 	accounts between the parties.	141
	 	 	 	 
	3.6 Sale or Purchase of the Vessel	142
	(only applicable if agreed according to Box 10)	143
	The Managers shall, in accordance with the Owners’ instructions,	144
	supervise the sale or purchase of the Vessel, including the	145
	performance of any sale or purchase agreement, but not	146

	 	negotiation of the same. The Managers shall, on the request
    of	147
	 	the Owners, either directly or by employing the services of
    a 	 
	 	broker, endeavor to procure a buyer for the Vessel at a price
    	 
	 	and otherwise on terms acceptable to the Owners.	 
	 	 	 
	 	3.7 Provisions (only applicable if agreed according
    to Box 11)	148
	 	The Managers shall arrange for the supply of provisions.	149
	 	 	 	 
	 	3.8 Bunkering (only applicable if agreed according
    to Box 12)	150
	 	The Managers shall arrange for the provision of bunker fuel
    of the	151
	 	quality specified by the Owners as required for the Vessel’s
    trade.	152
	 	 	 	 
	4.	Managers’ Obligations	153
	 	4.1 Without prejudice to the relevant provisions of
    the Partnership	154
	 	Management Agreement and in particular, but without limitation
    	 
	 	to the foregoing, the provisions of Section 2.3, Section 4.1,	 
	 	Section 4.5 and Section 4.7 thereof, the Managers undertake
    to	 
	 	use their best-endeavors commercially reasonable
    efforts to	 
	 	provide the agreed Management Services as agents for and on	155
	 	behalf of the Owners in accordance with sound ship management	156
	 	practice and to protect and promote the interests of the Owners
    in	157
	 	all matters relating to the provision of services hereunder.	158
	 	Provided, however, that the Managers in the performance of
    their	159
	 	management responsibilities under this Agreement shall be entitled	160
	 	to have regard to their overall responsibility in relation
    to all vessels	161
	 	as may from time to time be entrusted to their management and	162
	 	in particular, but without prejudice to the generality of the
    foregoing,	163
	 	the Managers shall be entitled to allocate available supplies,	164
	 	manpower and services in such manner as in the prevailing	165
	 	circumstances the Managers in their absolute discretion consider	166
	 	to be fair and reasonable.	167
	 	4.2 Where the Managers are providing Technical Management	168
	 	in accordance with sub-clause 3.2, they shall procure
    that the	169
	 	requirements of the law of the flag of the Vessel are satisfied
    and	170
	 	they shall in particular be deemed to be the “Company’
    as defined	171
	 	by the ISM Code, assuming the responsibility for the operation
    of	172
	 	the Vessel and taking over the duties and responsibilities
    imposed	173
	 	by the ISM Code and/or the ISPS Code when applicable.	174
	 	 	 	 
	5.	Owners’ Obligations	175
	 	5.1 Without prejudice to the relevant provisions of
    the Partnership	176
	 	Management Agreement, Tthe Owners shall pay
    all sums due to 	 
	 	the Managers punctually	 
	 	in accordance with the terms of this Agreement.	177
	 	5.2 Where the Managers are providing Technical Management	178
	 	in accordance with sub-clause 3.2, the Owners shall:	179
	 	(i)	procure that all officers and ratings supplied by them or on	180
	 	 	their behalf comply with the requirements of STCW 95;	181
	 	(ii)	instruct such officers and ratings to obey all reasonable orders	182
	 	 	of the Managers in connection with the operation of the	183
	 	 	Managers’ safety management system.	184
	 	5.3 Where the Managers are not providing Technical Management	185
	 	in accordance with sub-clause 3.2, the Owners shall
    procure that	186
	 	the requirements of the law of the flag of the Vessel are satisfied	187
	 	and that they, or such other entity as may be appointed by
    them	188
	 	and identified to the Managers, shall be deemed to be the	189
	 	“Company” as defined by the ISM Code assuming the
    responsibility 	190
	 	for the operation of the Vessel and taking over the duties
    and	191
	 	responsibilities imposed by the ISM Code when applicable.	192
	 	 	 
	6.	Insurance Policies	193
	 	The Owners shall procure, whether-by instructing
    the Managers	194
	 	under sub-clause 3.4 or otherwise,
    that throughout the period of	195
	 	this Agreement:	196
	 	6.1 at the Owners’ expense, the Vessel is insured
    for not less	197
	 	than her sound market value or entered for her full gross tonnage,	198
	 	as the case may be for:	199
	 	(i)	usual hull and machinery marine risks (including crew	200
	 	 	negligence) and excess liabilities;	201
	 	(ii)	protection and indemnity risks (including pollution risks and	202

This document is a computer generated SHIPMAN 98 form printed
by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to
the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.
BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved
document and the computer generated document.

    	A-I-3

    	

    

PART II

“SHIPMAN 98” Standard Ship Management Agreement

 

	 	Crew insurances); and	203
	 	(iii)  war risks (including protection and indemnity and crew risks);	204
	 	and	 
	 	(iv)  any other insurance that the Owners determine or the	 
	 	Managers advise them in writing that, in either case, it is 	 
	 	prudent or, as the case may be, appropriate on the basis of 	 
	 	prevailing market practices to be obtained in respect of the 	 
	 	Vessel, its freight/hire or any third party liabilities,	 
	 	in each case in accordance with the best practice of prudent owners	205
	 	of	 
	 	vessels of a similar type to the Vessel, with first crass insurance	206
	 	companies, underwriters or associations (“the Owners’	207
	 	Insurances”);	208
	 	6.2 all premiums and calls and applicable deductibles and/or	209
	 	franchises on the Owners’ Insurances are paid	 
	 	promptly by their due date,	210
	 	6.3 the Owners’ Insurances name the Managers and, subject	211
	 	to underwriters’ agreement, any third party designated by the	212
	 	Managers as a joint assured, with full cover, with the Owners	213
	 	obtaining cover in respect of each of the insurances specified in	214
	 	sub-clause 6.1:	215
	 	(i)	on terms whereby the Managers and any such third party	216
	 	 	are liable in respect of premiums or calls arising in connection	217
	 	with the Owners’ Insurances; or	218
	 	(ii)	if reasonably obtainable, on terms such that neither the	219
	 	 	Managers nor any such third party shall be under any	220
	 	 	liability in respect of premiums or calls arising in connection	221
	 	 	with the Owners’ Insurances; or	222
	 	(iii)	on such other terms as may be agreed in writing.	223
	 	Indicate alternative (i), (ii) or (iii) in Box 14. If Box 14 is left	224
	 	blank then (i) applies.	225
	 	6.4 written evidence is provided, to the reasonable satisfaction	226
	 	of the Managers, of their compliance with their obligations under	227
	 	Clause 6 within a reasonable time of the commencement of	228
	 	the Agreement, and of each renewal date and, If specifically	229
	 	requested, of each payment date of the Owners’ Insurances,	230
	 	 	 	 
	7.	Income Collected and Expenses Paid on Behalf of Owners	231
	 	7.1 Without prejudice to the provisions of Section 10.7 of the	232
	 	Partnership Management Agreement, Aall moneys collected by the 	 
	 	Managers under the terms of	 
	 	this Agreement (other than moneys payable by the Owners to	233
	 	the Managers) and any interest thereon shall be held to the	234
	 	credit of the Owners in a separate bank account.	235
	 	7.2 Without prejudice to the provisions of Section 9.7, Section	236
	 	10.5 and Section 10.8 of the Partnership Management Agreement, Aall	 
	 	expenses incurred by the Managers under the terms	 
	 	of this Agreement on behalf of the Owners (including expenses	237
	 	as provided in Clause 8) may be debited against the Owners	238
	 	in the account referred to under sub-clause 7.1 but shall in any	239
	 	event remain payable by the Owners to the Managers on	240
	 	demand. For the avoidance of doubt, the Managers can make	241
	 	such demand on the Owners as well as on the Partnership as 	 
	 	provided in Section 10.5 of the Partnership Management Agreement. 	 
	 	Furthermore and without prejudice to the generality of the 	 
	 	provisions of this Clause 7, the Managers shall, subject to being 	 
	 	placed in funds by the Owners or the Partnership, arrange for the 	 
	 	payment of all ordinary charges incurred in connection with the 	 
	 	Management Services, including, but not limited to, all canal 	 
	 	tolls, port charges, any amounts due to any governmental 	 
	 	authority with respect to the Crew and all duties and taxes in 	 
	 	respect of the Vessel, the cargo, hire or freight (whether levied 	 
	 	against the Owners, the Partnership or the Vessel), insurance 	 
	 	premiums, advances of balances of disbursements, invoices for 	 
	 	bunkers, stores, spares, provisions, repairs and any other 	 
	 	material and/or service in respect of the Vessel.	 
	 	 	 
	8.	Management Fee	242
	 	8.1 The Owners shall pay to the Managers for their services	243
	 	as Managers under this Agreement an-annual the management	244
	 	fees as stated in Box 15 Section 9.1(a)
    and Section 9(b) of the	245
	 	Partnership Management Agreement -which shall be payable by-equal	 
	 	monthly installments in advance, the first installment being monthly	246

	 	in accordance with the provisions of Article IX of the Partnership	 
	 	Management Agreement.	 
	 	payable on the commencement of the Agreement (see Clause	247
	 	2 and Box 4) and subsequent installments being payable
    every	248
	 	month.	249
	 	8.2 The management fee shall be subject to an annual-review 	250
	 	in accordance with the provisions of Sections 9.2 and 9.3 of the 	251
	 	Partnership Management Agreement the anniversary date of the	 
	 	Agreement and the proposed	 
	 	fee shall be presented in the annual budget referred to in sub-	252
	 	clause 9.1.	253
	 	8.3 The Managers shall, at no extra cost to the Owners, provide	254
	 	their own office accommodation, office staff, facilities and	255
	 	stationery.  Without limiting the generality of Clause 7 the Owners	256
	 	shall reimburse the Managers for postage and communication	257
	 	expenses, travelling expenses, and other out of pocket	258
	 	expenses properly incurred by the Managers in pursuance of	259
	 	the Management Services.	260
	 	8.4 The provisions of Section 9.4, Section 9.5, Section 9.6 and	261
	 	Section 9.7 of the Partnership Management Agreement shall
    be deemed as incorporated herein mutatis mutandis.	 
	 	8.5 The Managers have the right to demand the payment of
    any of the management fees and expenses payable under this Agreement either from the Partnership or the Owners.
     Payment     of any such fees or expenses or any part thereof by either the Partnership or the Owners shall prevent the
    Managers from making a claim on the other person for the same amount to the extent that the same has been already paid to the Managers.	 
	 	in the event of the appointment of the Managers being	 
	 	terminated by the Owners of the Managers in accordance with	262
	 	the provisions of Clauses 17 and 18 other than by reason
    of 	263
	 	default by the Managers, or if the Vessel is lost, sold or otherwise	264
	 	Disposed of, the “management fee” payable to the Managers	265
	 	According to the provisions of sub-clause 8.1, shall
    continue to	266
	 	be payable for a further period of three calendar months as	267
	 	from the termination date. In addition, provided that the 	268
	 	Managers provide Crew for the Vessel in accordance with sub-	269
	 	clause 3.1.	270
	 	(i)	the Owners shall continue to pay Crew Support Costs during	271
	 	 	the said further period of three calendar months and	272
	 	(ii)	the Owners shall pay an equitable proportion of any	273
	 	 	Severance Costs which may materialize, not exceeding	274
	 	 	the amount stated in Box 16.	275
	 	8.5 If the Owners decide to lay up the Vessel whilst this	276
	 	Agreement remain in force and such lay up lasts for more	277
	 	than three months, an appropriate reduction of the management	278
	 	fee for the period exceeding three months until one month	279
	 	before the Vessel is again put into service shall be mutually 	280
	 	agreed between the parties.	281
	 	8.6  Unless otherwise agreed in writing all discounts and 	282
	 	commissions obtained by the Managers in the course of the	283
	 	management of the Vessel shall be credited to the Owners	284
	 	 	 	 
	9.	Budgets and Management of Funds	285
	 	9.1 The Owners are aware that the Managers will be preparing	286
	 	budgets in connection with, inter alia, the provision of the 	 
	 	Management Services which the Managers will be submitting	 
	 	for approval to the Partnership in accordance with the provisions of	 
	 	Article X of the Partnership Management Agreement. The Managers	 
	 	shall present to the Owners annually a	 
	 	budget for the following twelve months in such form as the	287
	 	Owners require. The budget for the first year hereof is set out	288
	 	in Annex “C” hereto. Subsequent annual
    budgets shall be	289
	 	prepared by the Managers and submitted to the Owners not	290
	 	less than three months before the anniversary date of the 	291
	 	commencement of this Agreement (see Clause 2 and Box
    4).	292
	 	9.2  The Owners shall indicate to the Managers their acceptance	293
	 	and approval of the annual budget within one month of	294
	 	presentation and in the absence of any such indication the	295
	 	Managers shall be entitled to assume that the Owners have	296
	 	accepted the proposed budget.	297
	 	9.3  Following the agreement of the budget, the Managers shall	298

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO. Any insertion or
deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which
is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any
loss, damage or expense as a result of discrepancies between the original BIMCO approved document and the computer generated document.

    	A-I-4

    	

    

PART II

 “SHIPMAN
98” Standard Ship Management Agreement

 

	 	prepare and present to the Owners
    their estimate of the working	299
	 	capital requirement of the Vessel and the
    Managers shall each	300
	 	month up date this estimate. Based thereon,
    Without prejudice to the right of the Managers to ask for funds in relation to the Management Services directly from
    the Partnership in accordance with the relevant provisions of the Partnership Management Agreement, the Managers shall	301
	 	each month request the Owners in writing for the
    funds required	302
	 	to run the Vessel for the ensuing month, including
    the payment	303
	 	of any occasional or extraordinary item of expenditure,
    such as	304
	 	emergency repair costs, additional insurance premiums,
    bunkers	305
	 	or provisions. Such funds shall be received by the
    Managers	306
	 	within ten running days after the receipt by the
    Owners of the	307
	 	Managers’ written request and shall be held
    to the credit of the	308
	 	Owners in a separate bank account
    in the name of the Managers or, if requested by the Managers, in the name of the Owners.	309
	 	9.4 The Managers
    shall produce a comparison between	310
	 	budgeted and actual income and expenditure
    of the Vessel in	311
	 	such form as required by the Owners monthly
    or at such other	312
	 	intervals as mutually agreed.	313
	 	9.5 Notwithstanding anything contained herein
    to the contrary,	314
	 	the Managers shall in no circumstances be required
    to use or	315
	 	commit their own funds to finance the provision of
    the	316
	 	Management Services.	317
	 	 	 
	10. 	Managers’ Right to Sub-Contract	318
	 	Except to a Related Manager or V.Ships Greece Ltd.
    (where the Manager

 may
 subcontract any of their obligations hereunder, without need of

 obtaining the Owners’ consent
    for doing so), or as provided in the

 Partnership Management Agreement, Tthe Managers

 shall not have the right
    to sub-contract any of	319
	 	their obligations hereunder, including those mentioned
    in sub-	320
	 	clause 3.1, without the prior written consent
    of the Owners which	321
	 	shall not be unreasonably withheld and which shall
    be promptly responded to. In the event of such a sub-	322
	 	contract the Managers shall remain fully liable for
    the due	323
	 	performance of their obligations under this Agreement	324
	 	 	 
	11.	Responsibilities	325
	 	The parties agree that the provisions of Sections
    11.1 to 11.5 (inclusive) of the Partnership Management Agreement, shall apply to this Agreement mutatis mutandis, save that
    references therein to “any Shipmanagement Agreement or any Supervision Agreement” shall be omitted and references
    to “Partnership”, “any member of the Partnership Group”, “Manager”, “any Submanager”,
    “a Vessel”, “Section”, “Management Fees”, “each Shipmanagement Agreement”,
    “Partnership Group” and “Article Xl” shall be construed as references to the Owners, the Owners, the
    Managers, any submanager, the Vessel, Clause, management fee, this Agreement, the Owners and Clause 11, respectively, when
    used herein.	 
	 	 	 
	 	11.1 Force Majeure
    - Neither the Owners nor the Managers	 
	 	shall be under any liability for any failure
    to perform any of their	327
	 	obligations hereunder by reason of any cause
    whatsoever of	328
	 	any nature or kind beyond their reasonable
    control	329
	 	11.2 Liability to Owners
    – (i) Without prejudice to sub-clause	330
	 	11.1, the Managers shall be under no liability
    whatsoever to the	331
	 	Owners for any loss, damage, delay or expense
    of whatsoever	332
	 	nature, whether direct or indirect, (including
    but not limited to	333
	 	loss of profit arising out of or in connection
    with detention of or	334
	 	delay to the Vessel) and howsoever arising
    in the course of	335
	 	performance of the Management Services UNLESS
    same is	336
	 	proved to have resulted solely from the negligence,
    gross	337
	 	negligence or wilful default of the Managers
    or their employees,	338
	 	or agents or sub-contractors employed by
    them in connection	339
	 	with the Vessel, in which case (save where
    loss, damage, delay	340
	 	or expense has resulted from the Managers’
    personal act or	341
	 	omission committed with the intent to cause
    same or recklessly	342
	 	and with knowledge that such loss, damage,
    delay or expense	343
	 	would probably result) the Managers’
    liability for each incident	344

	 	or series of incidents giving rise to a claim
    or claims shall never	345
	 	Exceed a total of ten times the annual management
    fee payable	346
	 	hereunder,	347
	 	(ii) Notwithstanding anything that may appear
    to the contrary in	348
	 	this Agreement, the Managers shall not be
    liable for any of the	349
	 	actions of the Crew, even if such actions
    are negligent, grossly	350
	 	negligent or wilful, except only to the extent
    that they are shown	351
	 	to have resulted from a failure by the Managers
    to discharge	352
	 	their obligations under sub clause 3.1,
    in which case their liability	353
	 	shall be limited in accordance
    with the terms of this Clause 11.	354
	 	11.3 Indemnity
    – Except to the extent and solely for the amount	355
	 	therein set out that the Managers would be
    liable under sub-	356
	 	clause 11.2, the
    Owners hereby undertake to keep the Managers	357
	 	and their employees, agents and sub-contractors
    indemnified	358
	 	and to hold them harmless against all actions,
    proceedings,	359
	 	claims, demands or liabilities whatsoever
    or howsoever arising	360
	 	which may be brought against them or incurred
    or suffered by	361
	 	them arising out of or in connection with
    the performance of the	362
	 	Agreement, and against and in respect of
    all costs, losses,	363
	 	damages and expenses including legal costs
    and expenses on	364
	 	a full indemnity basis) which the Managers
    may suffer or incur	365
	 	(either directly or indirectly) in the course
    of the performance of	366
	 	this Agreement.	367
	 	11.4 “Himalaya”
    – It is hereby expressly agreed that no	368
	 	employee or agent of the Managers (including
    every sub-	369
	 	contractor from time to time employed by
    the Managers) shall in	370
	 	Any circumstances whatsoever be under any
    liability whatsoever	371
	 	to the Owners for any loss, damage or delay
    of whatsoever kind	372
	 	arising or resulting directly or indirectly
    from any act, neglect or	373
	 	default on his part while acting in the course
    of or in connection	374
	 	with his employment and, without prejudice
    to the generality of	375
	 	the foregoing provisions in this Clause
    11, every exemption,	376
	 	limitation, condition and liberty herein
    contained and every right,	377
	 	exemption from liability, defence and immunity
    of whatsoever	378
	 	nature applicable to the Managers or to which
    the Managers are	379
	 	entitled hereunder shall also be available
    and shall extend to	380
	 	protest every such employee or agent of the
    Managers acting	381
	 	as aforesaid and for the purpose of all the
    foregoing provisions	382
	 	of this Clause 11
    the Managers are or shall be deemed to be	383
	 	acting as agent or trustee on behalf of and
    for the benefit of all	384
	 	persons who are or might be their servants
    or agents from time	385
	 	to time (including sub-contractors as aforesaid)
    and all such	386
	 	persons shall to this extent be or be deemed
    to be parties to this	387
	 	Agreement.	388
	 	 	 
	12.	Documentation	389
	 	Without prejudice to the relevant provisions of the
    Partnership Management Agreement, Wwhere the Managers are providing Technical Management in	390
	 	accordance with sub-clause 3.2 and/or Crew
    Management in	391
	 	accordance with sub-clause 3.1, they shall
    make available,	392
	 	upon Owners’ request, all documentation and
    records related	393
	 	to the Safety Management System (SMS) and/or the
    Crew	394
	 	which the Owners need in order to demonstrate compliance	395
	 	with the ISM Code, the ISPS Code and STCW 95 or to
    defend a claim against a third party.	396
	 	 	 
	13.	General Administration	398
	 	13.1 Without
    prejudice to the provisions of Article V of the Partnership Management Agreement, but subject to the provisions of Section
    4.6 of the Partnership Management Agreement, Tthe Managers shall handle and settle all claims arising out of the Management Services hereunder and keep
    the Owners	399
	 		400
	 	informed regarding any incident of which the Managers
    become	401
	 	aware which gives or may give rise to material claims
    or disputes involving	402
	 	third parties.	403
	 	13.2 The Managers shall, as instructed by
    the Owners under this Agreement and/or, as the case may be, Section 4.6 of the Partnership Management Agreement, bring	404
	 	or defend actions, suits or proceedings in connection
    with matters	405

This document is a computer generated SHIPMAN 98 form printed
by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to
the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.
BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved
document and the computer generated document.

    	A-I-5

    	

    

PART II

 “SHIPMAN
98” Standard Ship Management Agreement

 

	 	entrusted to the Managers according to this Agreement.	406
	 	13.3 The Managers shall also have power to
    obtain legal or	407
	 	technical or other outside expert advice in relation
    to the handling	408
	 	and settlement of claims and disputes or all other
    matters	409
	 	effecting the interests of the Owners in respect
    of the Vessel.	410
	 	13.4 The Owners shall arrange for the provision
    of any	411
	 	necessary guarantee bond or other security.	412
	 	13.5 Any costs reasonably-incurred
    by the Managers in	413
	 	carrying out their obligations according to Clause
    13 shall be	414
	 	reimbursed by the Owners.	415
	 	 	 
	14.	Auditing	416
	 	The Managers shall at all times maintain
    and keep true and	417
	 	correct accounts and shall make the same available
    for inspection	418
	 	and auditing by the Owners at such times as may be
    mutually	419
	 	agreed. On the termination, for whatever reasons,
    of this	420
	 	Agreement, the Managers shall release to the Owners,
    if so	421
	 	requested, the originals where possible, or otherwise
    certified	422
	 	copies, of all such accounts and all documents specifically
    relating	423
	 	to the Vessel and her operation. For the avoidance
    of any doubt,	424
	 	this Clause is in addition to and not in substitution
    of the	 
	 	relevant provisions of the Partnership Management
    Agreement,.	 
	 	 	 
	15.	Inspection of Vessel	425
	 	The Owners shall have the right at any time after
    giving	426
	 	reasonable notice to the Managers to inspect the
    Vessel for any	427
	 	reason they consider necessary.	428
	 	 	 
	16.	Compliance with Laws and Regulations	429
	 	The Managers will not do or permit to be done anything
    which	430
	 	might cause any breach or infringement of the laws
    and	431
	 	regulations of the Vessel’s flag, or of the
    places where she trades.	432
	 	 	 
	17.	Duration of the Agreement	433
	 	This Agreement shall come into effect on the day
    and year stated	434
	 	in Box 4 and shall continue until the date
    the Partnership Management	435
	 	Agreement is terminated in accordance with the provisions
    of	 
	 	Article XIII thereof, unless this Agreement is terminated
    earlier	 
	 	in accordance with the provision of Clause 18 hereofthe
    date	 
	 	stated in Box 17.	 
	 	Thereafter it shall continue until terminated
    by either party giving	436
	 	to the other notice in writing, in which
    event the Agreement shall	437
	 	terminate upon the expiration of a period
    of two months from the	438
	 	date upon which such notice was given.	439
	 	 	 
	18.	Termination	440

	 	18.1	Owners’ default	441
	 	(i)	The Managers shall
    be entitled to terminate the Agreement	442
	 	 	with immediate effect by notice in writing if any
    moneys	443
	 	 	payable by the Owners under this Agreement and/or
    the	444
	 	 	owners of-any associated vessel, details
    of which are listed	445
	 	 	in Annex “D”,
    shall not have been received in the Managers’	446
	 	 	nominated account within ten20
    running Business dDays of	447
	 	 	receipt by	 
	 	 	the Owners of the Managers written request or if
    the Vessel	448
	 	 	is repossessed by the Mortgagees.	449
	 	(ii)	if the Owners:	450

	 	 	(a)	fall to meet their
    obligations under 5 sub-clauses 5.2	451
	 	 	 	and 5.3 of this Agreement for any reason
    within their	452
	 	 	 	control, or	453
	 	 	(b)	proceed with the employment
    of or continue to employ	454
	 	 	 	the Vessel in the carriage of contraband, blockade	455
	 	 	 	running, or in an unlawful trade, or on a voyage
    which	456
	 	 	 	in the reasonable opinion of the Managers is unduly	457
	 	 	 	hazardous or improper,	458
	 	 	the Managers may give notice of the default to the Owners,	459
	 	 	requiring them to remedy it as soon as practically possible.	460
	 	 	In the event that the Owners fall to remedy it within a	461
	 	 	reasonable time 20 Business Days of receipt by the Owners	462
	 	 	of the Managers’ written request to the satisfaction of the	 
	 	 	Managers, the	 
	 	 	Managers shall be entitled to terminate the Agreement	463
	 	 	with immediate effect by notice In writing.	464

	18.2 	Managers’ Default	465
	 	If the Managers fail to meet their obligations under
    Clauses 3	466
	 	and 4 of this Agreement for any reason within
    the control of the	467
	 	Managers, the Owners may give notice to the Managers
    of the	468
	 	default, requiring them to remedy it within 20 Business
    Days as	469
	 	soon as practically	 
	 	possible. In the event that the
    Managers fail to remedy it within a	470
	 	Reasonable timesuch period to the
    satisfaction of the Owners, the 	471
	 	Owners	 
	 	shall be entitled to terminate the Agreement with
    immediate effect	472
	 	by notice in writing.	473
	 	18.3 Extraordinary Termination	474
	 	This Agreement shall be deemed to be terminated in
    the case of	475
	 	the sale of the Vessel or if the Vessel becomes a
    total loss or is	476
	 	declared as a constructive or compromised or arranged
    total	477
	 	loss or is requisitioned.	478
	 	18.4 For the purpose of sub-clause 18.3
    hereof	479
	 	(i)	the date upon which
    the Vessel is to be treated as having	480
	 	 	been sold or otherwise disposed of shall be the
    date on	481
	 	 	which the Owners cease to be registered as Owners
    of	482
	 	 	the Vessel;	483
	 	(ii)	the Vessel shall not
    be deemed to be lost unless either	484
	 	 	she has become an actual total loss or agreement
    has	485
	 	 	been reached with her underwriters in respect of
    her	486
	 	 	constructive, compromised or arranged total loss
    or if such	487
	 	 	agreement with her underwriters is not reached it
    is	488
	 	 	adjudged by a competent tribunal that a constructive
    loss	489
	 	 	of the Vessel has occurred.	490
	 	18.5 The parties agree that the provisions of Sections 13.4(a) to	491
	 	13.4(d) (inclusive) of the Partnership Management Agreement, shall	 
	 	apply to this Agreement mutatis mutandis. This agreement shall	 
	 	terminate forthwith in the event of	 
	 	an order being made or resolution passed for the winding up,	492
	 	dissolution, liquidation or bankruptcy of other party (otherwise	493
	 	than for the purpose of reconstruction or amalgamation) or if a	494
	 	receiver is appointed, or if it suspends payment, ceases to	495
	 	on business or makes any special arrangement or composition	496
	 	carry with its creditors.	497
	 	18.6 The termination of this Agreement shall be without	498
	 	prejudice to all rights accrued due between the parties prior to	496
	 	the date of termination.	500
	 	 	 	 
	19.	Law and Arbitration	501
	 	19.1 This Agreement and any non-contractual
    obligations	502
	 	connected with it shall be governed by and construed
    in	 
	 	accordance with English law. All disputes
        arising out of this Agreement and/or any non-contractual obligations connected with it shall be arbitrated in London in
        the following manner. One arbitrator is to be appointed by each of the parties hereto and a third by the two so chosen.
        Their decision or that of any two of them shall be final. The arbitrators shall be commercial persons, conversant with
        shipping matters. Such arbitration is to be conducted in accordance with the London Maritime Arbitration Association (LMAA)
        Terms current at the time when the arbitration proceedings are commenced and in accordance with the Arbitration Act 1996
        or any statutory modification or re-enactment thereof. In the event that a party hereto shall state a dispute and designate
        an arbitrator in writing, the other party shall have 10 Business Days to designate its own arbitrator. If such other party
        fails to designate its own arbitrator within such period, the arbitrator appointed by the first party can render an award
        hereunder. Until such time as the arbitrators finally close the hearings, either party shall have the right by written
        notice served on the arbitrators and on the other party to specify further disputes or differences under this Agreement
        for hearing and determination. The arbitrators may grant any relief, and render an award, which they or a majority of
        them deem just and equitable and within the scope of this Agreement, including but not limited to the posting of security.
        Awards pursuant to this Clause 19.1 may include costs and judgments may be entered upon any award made herein in any court
        having jurisdiction.

and any dispute arising out of or	503
	 	in connection with this Agreement shall be
    referred to arbitration	504
	 	in London in accordance with the Arbitration
    Act 1996 or	505
	 	any statutory modification or re-enactment
    thereof save to	506
	 	the extent necessary to give effect to the
    provisions of this	507

This document is a computer generated SHIPMAN 98 form printed
by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to
the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.
BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved
document and the computer generated document.

    	A-I-6

    	

    

PART II

 “SHIPMAN
98” Standard Ship Management Agreement

 

	 	Clause.	508
	 	The arbitration shall be conducted in accordance
    with the	509
	 	London Maritime Arbitrators Association (LMAA)
    Terms	510
	 	current at the time when the arbitration
    proceedings are	511
	 	commenced.	512
	 	The reference shall be to three arbitrators.
    A party wishing	513
	 	to refer a dispute to arbitration shall appoint
    its arbitrator	514
	 	and send notice of such appointment in writing
    to the other	515
	 	party requiring the other party to appoint
    its own arbitrator	516
	 	within 14 calendar days of that notice and
    stating that it will	517
	 	appoint its arbitrator as sole arbitrator
    unless the other party	518
	 	appoints its own arbitrator and gives notice
    that it has done	519
	 	so within the 14 days specified. If the other
    party does not	520
	 	appoint its own arbitrator and give notice
    that it has done so	521
	 	within the 14 days specified, the part referring
    a dispute to	522
	 	arbitration may, without the
    requirement of any further prior	523
	 	notice to the other party, appoint its arbitrator
    as sole	524
	 	arbitrator and shall advise the other party
    accordingly. The	525
	 	award of a sole arbitrator shall be binding
    on both parties	526
	 	as if he had been appointed by agreement.	527
	 	Nothing herein shall prevent the parties
    agreeing in writing	528
	 	to vary these provisions to provide for the
    appointment of a	529
	 	sole arbitrator.	530
	 	In cases where neither the claim nor any
    counterclaim	531
	 	exceeds the sum of USD50,000 (or such other
    sum as the	532
	 	parties may agree) the arbitration shall
    be conducted in	533
	 	accordance with the LMAA Small Claims Procedure
    current	534
	 	at the time when the arbitration proceedings
    are commenced.	535
	 	19.2 This Agreement
    shall be governed by and construed	536
	 	in accordance with Title 9 of the United
    States code and	537
	 	the Maritime Law of the United States and
    any dispute	538
	 	arising out of or in connection with this
    Agreement shall be	539

	 	referred to three persons at New York, one
    to be appointed	540
	 	by each of the parties hereto, and the third
    by the two so	541
	 	chosen; their decision or that of any two
    of them shall be	542
	 	final, and for the purposes of enforcing
    any award,	543
	 	judgement may be entered on an award by any
    court of	544
	 	competent jurisdiction. The proceedings shall
    be conducted	545
	 	in accordance with the rules of the Society
    of Maritime	546
	 	Arbitrators, Inc.	547
	 	In cases where neither the claim nor any
    counterclaim	548
	 	exceeds the sum of USD50,000 (or such other
    sum as the	549
	 	parties may agree) the arbitration shall
    be conducted in	550
	 	accordance with the Shortened Arbitration
    Procedure of the	551
	 	Society of Maritime Arbitrators, Inc. current
    at the time when	552
	 	the arbitration proceedings are commenced.	553
	 	19.3 This Agreement
    shall be governed by and construed	554
	 	in accordance with the laws of the place
    mutually agreed by	555
	 	the parties and any dispute arising out of
    or in connection	556
	 	with this Agreement shall be referred to
    arbitration at a	557
	 	mutually agreed place, subject to the procedures
    applicable	558
	 	there.	559
	 	19.4 If Box 18 in Part I is not appropriately
    filled in, sub-	560
	 	clause 19.1 of this Clause shall apply.	561
	 	 	 
	 	Note: 19.1, 19.2 and 19.3
    are alternatives; indicate	562
	 	alternative agree in Box 18.	563
	 	 	 

	20.	Notices	564
	 	20.1 Any notice to be given by either party
    to the other	565
	 	Party shall be in writing and may be sent by fax,
    telex,	566
	 	Registered or recorded mail or by personal service.	567
	 	20.2 The address of the Parties for service
    of such	568
	 	communication shall be as stated in Boxes 19
    and 20,	569
	 	respectively.	570

This document is a computer generated SHIPMAN 98 form printed
by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to
the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.
BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved
document and the computer generated document.

    	A-I-7

    	

    

APPENDIX II

 

FORM OF SUPERVISION AGREEMENT

 

THIS AGREEMENT is made the ____ day of                           , 20[ • ]
BETWEEN:

 

		(1)	[name of relevant member of the Partnership Group], a company incorporated under the laws of [•], whose registered
office is [ADDRESS] (the “Owner”); and

 

		(2)	COSTAMARE SHIPPING COMPANY S.A., a company incorporated under the laws of [•], whose registered office is at [ADDRESS]
(the “Construction Supervisor”).

 

WHEREAS:

 

By a shipbuilding contract dated                                   (the “Shipbuilding
Contract”) and made between [•1 (the “Builder”) and the Owner, the Builder agreed to construct,
to the order of the Owner, and sell to the Owner, a [•] container vessel, known during construction as Hull No.[•] (the
“Vessel”);

 

IT IS NOW AGREED as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.1. Except as otherwise defined
herein, all terms defined in the Shipbuilding Contract shall have the same respective meanings when used herein.

 

SECTION 1.2. In this Agreement, unless the
context otherwise requires, the following expressions shall have the following meanings:

 

“Business Day” means a
day, other than a Saturday or Sunday or a public holiday, on which major retail banks in New York City and Athens Greece, and (in
respect of any payments which are to be made to the Builder) [•], are open for non-automated customer services;

 

“Partnership Management Agreement”
means the agreement dated [         ] 2015 made between the Partnership and the Construction Supervisor.

 

“Owner’s Supplies”
means all of the items to be furnished to the Vessel by the Owner in accordance the relevant provisions of the Shipbuilding Contract.

 

“Partnership” means Costamare
Partners LP of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 and includes its successors
in title.

 

“Spares” means the items
to be designated as spares by the parties hereto at the time of the delivery of the Vessel.

    	A-II-1

    	

    

“Supervision Period” means
the period from the execution of this Agreement to and including the earlier of (i) the date of delivery of the Vessel pursuant
to the Shipbuilding Contract and (ii) the date this Agreement is terminated.

 

ARTICLE II

 

APPOINTMENT

 

SECTION 2.1. The Owner hereby appoints the
Construction Supervisor, and the Construction Supervisor hereby agrees to act as the Owner’s supervisor towards the Builder
and as the “Owner’s Representative” under the Shipbuilding Contract for the duration of the Supervision
Period and to perform the duties and rights which rest with the Owner regarding the construction and delivery of the Vessel in
accordance with all of the provisions of the Shipbuilding Contract. The Owner shall be responsible for, inter alia, determining
the general policy of supervision of construction of the Vessel and the scope of activities of the Construction Supervisor and,
in the performance of its duties under this Agreement, the Construction Supervisor shall at all times act strictly in accordance
with any instructions or directions given to it by the Owner regarding such general policy or, in the absence of such instructions
or directions, in accordance with the standards of a prudent supervisor providing services of the type to be provided under this
Agreement, having due regard to the Owner’s interest. Any instructions so given shall be consistent with the nature and scope
of the supervision services required to be performed by the Construction Supervisor under this Agreement and shall not require
the Construction Supervisor to do or omit to do anything which may be contrary to any applicable law of any jurisdiction or which
is inconsistent or contrary to any of the rights and duties of the Owner under the Shipbuilding Contract. Upon appointment the
Owner shall furnish the Construction Supervisor with a full and complete copy of the Shipbuilding Contract (which for the avoidance
of doubt shall include the Specifications and the Plans).

 

SECTION 2.2. Specific Powers and Duties
of the Construction Supervisor. Without prejudice to the generality of the appointment made under Section 2.1, and (where applicable)
by way of addition to the rights, powers and duties so conferred, the Construction Supervisor shall, subject to this Section 2.2
and to Articles III and IV, have and be entrusted with the following rights, powers and duties in relation to the Shipbuilding
Contract and the Vessel:

 

(a) to review, comment on, agree
and approve the lists of plans and the drawings referred to; to attend the testing of the Vessel’s machinery, outfitting
and equipment and to request any tests or inspections which the Construction Supervisor may consider appropriate or desirable and
to review and comment on the results of all tests and inspections to the extent this is possible under the terms of the Shipbuilding
Contract; to carry out such inspections and give such advice or suggestions to the Builder as the Construction Supervisor may consider
appropriate and as the terms of the Shipbuilding Contract allow him to do; and to give notice to the Builder in the event that
the Construction Supervisor discovers any construction, material or workmanship which the Construction Supervisor

    	A-II-2

    	

    

believes does not or will not conform
to the requirements of the Shipbuilding Contract and the specifications again provided the terms of the Shipbuilding Contract allows
for such notice to be given;

 

(b) to appoint a representative
of the Construction Supervisor for the purposes specified under Article [•];

 

(c) if any alteration or addition
to the Shipbuilding Contract becomes obligatory or desirable, to consult with the Builder and make recommendations to the Owner
as to whether or not acceptance should be given to any proposal notified to the Owner by the Builder;

 

(d)
to request and agree to any minor alterations, additions or modifications to the Vessel or the specifications and any substitute
materials to the extent this is possible under the terms of the Shipbuilding Contract, which the Construction Supervisor may consider
appropriate or desirable, provided that if the cost of such variations or substitute materials would have the effect of altering
the Contract Price (as defined in the Shipbuilding Contract) by more than three per cent (3%) from the Contract Price on the date
hereof or the amount of any of the installments of the Contract Price due under the Shipbuilding Contract prior to the delivery
of the Vessel, the Construction Supervisor shall notify the same to the Owner in writing and obtain the Owner’s instructions
before taking any action in relation thereto; to receive from and transmit to the Builder information relating to the requirements
of the classification society and to give instructions and agree with the Builder regarding alterations, additions or changes in
connection with such requirements; and to approve the substitution of materials as requested by the Builder;

 

(e) to attend and witness the trials
of the Vessel to the extent this is possible under the terms of the Shipbuilding Contract;

 

(f) to determine whether the Vessel
has been designed, constructed, equipped and completed in accordance with, and complies with, the Shipbuilding Contract and the
Specifications and Plans (each as defined in the Shipbuilding Contract); to give the Builder a notice of acceptance or (as the
case may be) rejection of the Vessel, to require or request any further test and inspection of the Vessel to the extent this is
possible under the terms of the Shipbuilding Contract, and to give and receive any further or other notice relative to such matters
and generally to advise the Owner in respect of all such matters;

 

(g) to sign on behalf of the Owner
any protocols as to sea trials, consumable stores, delivery and acceptance or otherwise, having first ascertained with the Owner
the appropriateness of so doing;

 

(h) to accept on behalf of the Owner
the documents specified in Article [•], Paragraph [•] of the Shipbuilding Contract to be delivered by the Builder at

    	A-II-3

    	

    

delivery of the Vessel under the
Shipbuilding Contract and to confirm receipt thereof to the Owner;

 

(i) to give and receive on behalf
of the Owner any notice contemplated by the Shipbuilding Contract, provided that the Construction Supervisor shall not have authority
to give on behalf of the Owner any notice which the Owner may be entitled to give to cancel, repudiate or rescind the Shipbuilding
Contract without the prior written consent of the Owner; and

 

(j) to purchase, after being placed
in funds by the Owner, all Owner’s Supplies as agent of the Owner and supply and deliver the same together with all necessary
specifications, plans, drawings, instruction books, manuals, test reports and certificates to the Builder as provided in the Shipbuilding
Contract, and provide to the Owner a list of all such Owner’s Supplies as soon as possible.

 

SECTION 2.3. The Construction Supervisor
shall discharge its responsibilities under this Clause 2 as the Owner’s agent.

 

SECTION 2.4. In the event that the Construction
Supervisor uses own funds to purchase Owner’s Supplies, the cost of supplying and delivering Owner’s Supplies pursuant
to relevant terms of the Shipbuilding Contract shall be reimbursed by the Owner to the Construction Supervisor on the date the
Construction Supervisor submits to the Owner supporting invoices in respect of such cost.

 

ARTICLE III

 

CONSTRUCTION SUPERVISOR’S DUTIES

REGARDING CONSTRUCTION

 

SECTION 3.1. The Construction Supervisor
undertakes with the Owner with respect to the Shipbuilding Contract:

 

(a) to notify the Owner in writing
promptly on becoming aware of any likely change to any of the dates on which any installment under the Shipbuilding Contract is
expected to be due;

 

(b) to (i) notify the Owner in writing
of the expected date on which the launching or, as the case may be, sea trials of the Vessel is or are to take place and (ii) promptly
on the same day as the launching or, as the case may be, sea trials of the Vessel takes or take place to confirm that the launching
or, as the case may be, sea trials of the Vessel has or have taken place and, where relevant, that the amount specified in such
confirmation is due and payable;

 

(c) to (i) advise the Owner in writing,
four (4) Business Days prior to the date on which the delivery installment under the Shipbuilding Contract is anticipated to become
due, of the times and amounts of payments to be made to the Builder under the Shipbuilding Contract and any amount due to the Construction
Supervisor for Owner’s Supplies not already settled and (ii)

    	A-II-4

    	

    

promptly confirm the same on the
day on which such installment becomes due (and being the date the same is required to be paid to the account referred to in the
relevant term of the Shipbuilding Contract);

 

(d) not to accept the Vessel or
delivery of the Vessel on the Owner’s behalf without the Owner’s prior written approval and unless the Construction
Supervisor shall have previously certified to the Owner in writing, in the form of the certificate set out in Schedule 1 to this
Agreement, that:

 

(i) the Vessel has been duly completed
and is ready for delivery to and acceptance by the Owner in or substantially in accordance with the Shipbuilding Contract and the
Specifications and Plans;

 

(ii) there is, to the best of
the Construction Supervisor’s knowledge and belief having made due enquiry with the Builder, no lien or encumbrance on the
Vessel other than the lien in favor of the Builder in respect of the delivery installment of the Contract Price due in accordance
with the terms of the Shipbuilding Contract; and

 

(iii) the Vessel is recommended
for classification by the relevant classification society provided for in the Shipbuilding Contract (and the Construction Supervisor
shall attach to its certificate the provisional certificate of such classification society recommending such classification of
the Vessel or a duplicate or photocopy of such provisional certificate or otherwise provide evidence of such classification to
the Owner);

 

(e) on receipt thereof from the
Builder promptly to deliver the documents specified in Article [•], Paragraph [•] of the Shipbuilding Contract to the
Owner or as the Owner may direct; and

 

(f) solely with the prior written
approval of the Owner, to request from or agree with the Builder any material alterations, additions or modifications to the Vessel.

 

ARTICLE IV

 

CONSTRUCTION SUPERVISOR’S GENERAL
OBLIGATIONS

 

SECTION 4.1. The Construction Supervisor
undertakes to the Owner, with respect to the exercise and performance of its rights, powers and duties as the Owner’s representative
under this Agreement, as follows:

 

(a) it will exercise commercially
reasonable efforts to cause the due and punctual observance and performance of all conditions, duties and obligations imposed on
the Owner by the Shipbuilding Contract (other than to pay the Contract Price) and will not without the prior written consent of
the Owner:

    	A-II-5

    	

    

(i) exercise any rights of the
Owner to cancel, repudiate or rescind the Shipbuilding Contract;

 

(ii) waive, modify or suspend
any provision of the Shipbuilding Contract if as a result of such waiver, modification or suspension the Owner will or may suffer
any adverse consequences; and

 

(b) it will, at its own expense,
keep all necessary and proper books, accounts, records and correspondence files relating to its duties and activities under this
Agreement and shall send quarterly reports to the Owner concerning the progress of the design and construction of the Vessel and
keep the Owner promptly informed of any deviations from the building program.

 

ARTICLE V

 

LIABILITY AND INDEMNITY

 

SECTION 5.1. Save for the obligation of the
Owner to pay any moneys due to the Construction Supervisor hereunder, neither the Owner nor the Construction Supervisor shall be
under any liability to the other for any failure to perform any of their obligations hereunder by reason of Force Majeure. “Force
Majeure” shall mean any cause whatsoever of any nature or kind beyond the reasonable control of the Owner or the Construction
Supervisor, including, without limitation, acts of God, acts of civil or military authorities, acts of war or public enemy, acts
of any court, regulatory agency or administrative body having jurisdiction, insurrections, riots, strikes or other labor disturbances,
embargoes or other causes of a similar nature.

 

SECTION 5.2. The Construction Supervisor,
including its officers, directors, employees, shareholders, agents and any sub-contractors (the “Construction Supervisor
Related Parties”), shall be under no liability whatsoever to the Owner or to any third party (including the Builder)
for any loss, damage, delay or expense of whatsoever nature, whether direct or indirect (including but not limited to loss of profit
arising out of or in connection with the delayed or non-conforming delivery of the Vessel), and howsoever arising in the course
of the performance of this Agreement, unless and to the extent that the same is proved to have resulted solely from the gross negligence
or willful misconduct of the Construction Supervisor, its officers, employees, agents or any of its sub-contractors in which case
(save where loss, damage, delay or expense, has resulted from the Construction Supervisor’s personal act or omission committed
with the intent to cause same) the Construction Supervisor’s liability for each incident or series of incidents giving rise
to claim or claims shall never exceed a total of ten times the fees payable hereunder.

 

SECTION 5.3. The Owner shall indemnify and
hold harmless the Construction Supervisor Related Parties against all actions, proceedings, claims, demands or liabilities whatsoever
or howsoever arising which may be brought against them or incurred or suffered by them arising out of or in connection with the
performance of this Agreement and against and in respect of any loss, damage, delay or expense of

    	A-II-6

    	

    

whatsoever nature (including legal costs and
expenses on a full indemnity basis), whether direct or indirect, incurred or suffered by any Construction Supervisor Related Party
in the performance of this Agreement, unless incurred or suffered due to the gross negligence or willful misconduct of any Construction
Supervisor Related Party.

 

SECTION 5.4. It is hereby expressly agreed
that no employee or agent of the Construction Supervisor (including any sub-contractor from time to time employed by the Construction
Supervisor) shall in any circumstances whatsoever be under any liability whatsoever to the Owner or any third party for any loss,
damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while
acting in the course of or in connection with his employment and, without prejudice to the generality of the foregoing provisions
in this Article V, every exemption, limitation, condition and liberty herein contained and every right, exemption from liability,
defense and immunity of whatsoever nature applicable to the Construction Supervisor or to which the Construction Supervisor is
entitled hereunder shall also be available and shall extend to protect every such employee or agent of the Construction Supervisor
acting as aforesaid, and for the purpose of all the foregoing provisions of this Article V, the Construction Supervisor is or shall
be deemed to be acting as agent or trustee on behalf of and for the benefit of all persons who are or might be their servants or
agents from time to time (including sub-contractors as aforesaid) and all such persons shall to this extent be or be deemed to
be parties to this Agreement.

 

SECTION 5.5. The provisions of this Article
V shall survive any termination of this Agreement.

 

ARTICLE VI

 

FEES

 

SECTION 6.1. In consideration of the performance
of the duties assigned to the Construction Supervisor in this Agreement, the Owner shall pay to the Construction Supervisor the
sum of US$787,405 for its total supervision costs in connection with the supervision of the construction of the Vessel, plus any
expenses incurred under the Shipbuilding Contract against presentation of supporting invoices from the Construction Supervisor
which the Construction Supervisor shall supply to the Owner at the same time as payment is requested. The fee payable hereunder
to the Construction Supervisor shall include all costs which are incurred by the Construction Supervisor in connection with the
ordinary exercise and performance by the Construction Supervisor of the rights, powers and duties entrusted to it pursuant to this
Agreement. The supervision fee will be paid in two equal installments as follows:

 

		(a)	US$393,702.50 on the execution of this Agreement; and

 

		(b)	US$393,702.50 upon the Construction Supervisor advising the Owner of the completion of the sea trial run of the Vessel.

    	A-II-7

    	

    

For the avoidance of doubt, the Construction Supervisor can
demand payment of the fee and other amounts payable hereunder from the Partnership pursuant to the relevant provisions of the Partnership
Management Agreement.

 

ARTICLE VII

 

COMMENCEMENT - TERMINATION

 

SECTION 7.1. This Agreement shall come into
effect on the date hereof and shall continue until the delivery of the Vessel in accordance with the Shipbuilding Contract unless
terminated earlier pursuant to the terms of Section 7.2, Section 7.3, Section 7.4 or Section 7.5.

 

SECTION 7.2. The Owner shall be entitled
to terminate this Agreement by notice in writing to the Construction Supervisor if the Construction Supervisor defaults in the
performance of any material obligation under this Agreement, subject to a cure right of 20 Business Days following written notice
by the Owner.

 

SECTION 7.3. This Agreement shall terminate
automatically if:

 

(a) the Shipbuilding Contract
is cancelled, rescinded or terminated; or

 

(b) the Partnership Management
Agreement is terminated.

 

SECTION 7.4. The Construction Supervisor
shall be entitled to terminate this Agreement by notice in writing to the Owner if:

 

(a) any moneys payable by the
Owner under this Agreement is not paid when due or if due on demand within 10 Business Days following demand by the Construction
Supervisor; or

 

(b) the Owner defaults in the
performance of any other material obligations under this Agreement, subject to a cure right of 20 Business Days following written
notice by the Construction Supervisor.

 

SECTION 7.5. Either party shall be entitled
to terminate this Agreement immediately if:

 

(a) the other party ceases to conduct
business, or all or substantially all of the equity-interests, properties or assets of either such party is sold, seized or appropriated;
or

 

(b) (i) the other party files a
petition under any bankruptcy law, makes an assignment for the benefit of its creditors, seeks relief under any law for the protection
of debtors or adopts a plan of liquidation; (ii) a petition is filed against the other party seeking to have it declared insolvent
or bankrupt and such petition is not dismissed or stayed within 40 Business Days of its filing; (iii) the other

    	A-II-8

    	

    

party shall admit in writing its
insolvency or its inability to pay its debts as they mature; (iv) an order is made for the appointment of a liquidator, manager,
receiver or trustee of the other party of all or a substantial part of its assets; (v) an encumbrancer takes possession of or a
receiver or trustee is appointed over the whole or any part of the other party’s undertaking, property or assets; or (vi)
an order is made or a resolution is passed for the other party’s winding up;

 

(c) a distress, execution, sequestration
or other process is levied or enforced upon or sued out against the other party’s property which is not discharged within
20 Business Days;

 

(d) the other party ceases or threatens
to cease wholly or substantially to carry on its business otherwise than for the purpose of a reconstruction or amalgamation without
insolvency previously approved by the terminating party;

 

or

 

(e) the other party is prevented
from performing its obligations hereunder by reasons of Force Majeure for a period of two or more consecutive months.

 

SECTION 7.6. In the event of termination
due to the Construction Supervisor’s default, then it shall not be entitled to receive any payment in respect of the fees
and other amounts described in Article VI becoming due and payable after the date of such termination.

 

ARTICLE VIII

 

EMPLOYEES

 

SECTION 8.1. None of the employees and/or
sub-contractors of the Construction Supervisor shall constitute, for the purposes of this Agreement, sub-agents of the Owner. The
Construction Supervisor, in its capacity as employer and contractor (and not in its capacity as agent for the Owner), shall (a)
be responsible for the salaries, expenses and costs in respect of each of its employees and sub-contractors (not in its capacity
as agent for the Owner) and (b) save for the provisions of Article V, indemnify its employees and sub-contractors for any liabilities
and losses incurred by such employees and sub-contractors.

 

ARTICLE IX

 

GOVERNING LAW - ARBITRATION

 

SECTION 9.1. This Agreement shall be governed
by and be construed in accordance with the laws of England.

 

SECTION 9.2. All disputes arising out of
this Agreement shall be arbitrated in London in the following manner. One arbitrator is to be appointed by each of the parties
hereto and a third by the two so chosen. Their decision or that of any two of them shall be final and, for the purpose of enforcing
any award, this Agreement may

    	A-II-9

    	

    

be made a rule of the court. The arbitrators
shall be commercial persons, conversant with shipping matters. Such arbitration is to be conducted in accordance with the rules
of the London Maritime Arbitration Association terms current at the time when the arbitration proceedings are commenced and in
accordance with the Arbitration Act 1996 or any statutory modification or re-enactment thereof.

 

SECTION 9.3. In the event that a party hereto
shall state a dispute and designate an arbitrator in writing, the other party shall have 20 Business Days to designate its own
arbitrator. If such other party fails to designate its own arbitrator within such period, the arbitrator appointed by the first
party can render an award hereunder.

 

SECTION 9.4. Until such time as the arbitrators
finally close the hearings, either party shall have the right by written notice served on the arbitrators and on the other party
to specify further disputes or differences under this Agreement for hearing and determination.

 

SECTION 9.5. The arbitrators may grant any
relief, and render an award, which they or a majority of them deem just and equitable and within the scope of this Agreement, including
but not limited to the posting of security. Awards pursuant to this Article IX may include costs, including a reasonable allowance
for attorneys’ fees, and judgments may be entered upon any award made herein in any court having jurisdiction.

 

ARTICLE X

 

COUNTERPARTS

 

SECTION 10.1. This Agreement may be executed
in any number of counterparts, all of which taken together shall constitute one and the same instrument.

 

ARTICLE XI

 

NOTICES

 

SECTION 11.1. Every notice or other communication
under this Agreement shall:

 

(a) be in writing delivered personally
or by first-class prepaid letter (airmail if available) or facsimile transmission or other means of telecommunication (other than
telex) in permanent written form;

 

(b) be deemed to have been received,
in the case of a letter, when delivered personally or three (3) days after it has been put into the post and, in the case of a
facsimile transmission or other means of telecommunication (other than telex) in permanent written form, at the time of dispatch
(provided that if the date of dispatch is a Saturday or Sunday or a public holiday in the country of the addressee or if the time
of dispatch is after the close of business in the country of the addressee it shall be deemed to have been received at the opening
of business on the next day which is not a Saturday or Sunday or public holiday); and

    	A-II-10

    	

    

(c) be sent:

 

	 	(i)	to the Construction Supervisor at:

 

Costamare Shipping Company S.A.

[•l

Facsimile No.: [•]

Attention: [•]

 

		(ii)	to the Owner at:

 

C/o Costamare Partners LP

[•]Athens, Greece

Facsimile No.: +30 210 [•]

Attention: [•]

 

or to such other address and/or numbers for a party as is notified
by such party to the other party under this Agreement.

 

SECTION 11.2. Each communication and document
made or delivered by one party to another pursuant to this Agreement shall be in the English language.

 

SECTION 11.3. This Agreement shall not create
benefits on behalf of any other person not a party to this Agreement, and this Agreement shall be effective only as between the
parties hereto, their successors and permitted assigns.

    	A-II-11

    	

    

IN WITNESS of which this
Agreement has been duly executed the day and year first before written.

 

For the Owner

 

For the Construction Supervisor

    	A-II-1

    	

    

SCHEDULE 1

 

FORM OF CONSTRUCTION CERTIFICATE

[On the letterhead of the Construction
Supervisor]

 

[Vessel Owner] (the “Owner”)

[Address]

Facsimile: [ ]

Attention: [ ]

 

	 	Date: 	 

 

Dear Sirs,

 

[Name of Builder] (the “Builder”), [Name
of Vessel] (the “Vessel”)

 

We refer to the construction supervision
agreement dated [       ] between the Owner and us (the “Supervision Agreement”).

 

Words and expressions defined in the Supervision
Agreement (whether expressly or by incorporation by reference to another document) shall have the same meaning where used in this
certificate.

 

We hereby certify, pursuant to Section 3.1(d)
of the Supervision Agreement, as follows:

 

		(1)	the Vessel has been duly completed and is ready for delivery to and acceptance by the Owner in or substantially in accordance
with the Shipbuilding Contract and the Specifications and Plans; and

 

		(ii)	the Vessel is recommended for classification by [Name of the classification society] (the “Classification Society”).

 

With respect to paragraph (ii) above, please
find attached to this certificate the provisional certificate of the Classification Society recommending such classification of
the Vessel / a duplicate or photocopy of the provisional certificate of the Classification Society recommending such classification
of the Vessel / the following evidence of the Classification Society’s recommendation of such classification of the Vessel
[ ].

 

 

	 	Yours faithfully,
	 	 
	 	for and on behalf of

COSTAMARE SHIPPING COMPANY S.A.

    	S-1-1Exhibit
10.25

 

Dated June 8, 2015

 

CAPETANISSA MARITIME CORPORATION

JODIE SHIPPING CO.

KAYLEY SHIPPING CO. and

RAYMOND SHIPPING CO.

as joint and several Borrowers

 

and

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1

as Lenders

 

and

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 2

as Mandated Lead Arrangers

 

and

 

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 3

as Swap Banks

 

and

 

DNB BANK ASA

as Bookrunner, Agent and Security Trustee

 

LOAN AGREEMENT

 

relating to a secured term loan and reducing
revolving loan facility in an aggregate

amount of up to $176,842,100 to refinance existing indebtedness secured on

m.v.s. “COSCO BEIJING”, “MSC ATHENS”, “MSC ATHOS” and “VALUE” and to provide liquidity
for

 general corporate purposes

 

    	 

    	

    

Index

 

	Clause	 	 	Page
	 	 	 	 
	1	Interpretation	 	1
	2	Facility	 	22
	3	Position of the Lenders, the Swap Banks and the Majority Lenders	 	22
	4	Drawdown	 	24
	5	Interest	 	25
	6	Interest Periods	 	28
	7	Default Interest	 	28
	8	Reduction, Repayment and Prepayment	 	30
	9	Conditions Precedent	 	35
	10	Representations and Warranties	 	37
	11	General Undertakings	 	40
	12	Corporate Undertakings	 	44
	13	Insurance	 	45
	14	Ship Covenants	 	50
	15	Security cover	 	54
	16	Payments and Calculations	 	56
	17	Application of Receipts	 	59
	18	Application of Earnings	 	61
	19	Events of Default	 	61
	20	Fees and Expenses	 	67
	21	Indemnities	 	68
	22	No set-off or Tax Deduction	 	70
	23	Illegality, Etc.	 	72
	24	Increased Costs	 	73
	25	Set-off	 	75
	26	Transfers and Changes in Lending Offices	 	76
	27	Variations and Waivers	 	83
	28	Notices	 	84
	29	Supplemental	 	86
	30	Joint and Several liability	 	87
	31	Law and Jurisdiction	 	88
	Schedule 1 Lenders and Commitments	 	89
	Schedule 2 Mandated Lead Arrangers	 	90
	Schedule 3 Swap Banks	 	91
	Schedule 4 Drawdown Notice	 	92
	Schedule 5 Condition Precedent Documents	 	93
	Schedule 6 Transfer Certificate	 	96
	Schedule 7 Designation Notice	 	100
	Schedule 8 Form of Confidentiality Agreement	 	101
	Execution Pages	 	106

    	 

    	

    

THIS AGREEMENT is made on June 8,
2015

 

BETWEEN

 

		(1)	CAPETANISSA MARITIME CORPORATION, JODIE SHIPPING CO., KAYLEY SHIPPING CO. and RAYMOND
SHIPPING CO., as Borrowers;

 

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

 

		(3)	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 2, as Mandated Lead Arrangers;

 

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

 

		(5)	DNB BANK ASA, as Bookrunner;

 

		(6)	DNB BANK ASA, as Agent; and

 

		(7)	DNB BANK ASA, as Security Trustee.

 

BACKGROUND

 

		(A)	The Lenders have agreed to make available to the Borrowers secured term loan and reducing revolving
facilities not exceeding, in aggregate, US$176,842,100 divided into two tranches as follows:

 

		(i)	Tranche A, being a secured term loan facility in an amount equal to the lesser of (AA) US$124,378,945
and (BB) an amount, which when aggregated with the amount of the reducing revolving facility referred to in Recital A(ii) drawn
down on the Drawdown Date of Tranche A, does not exceed 50 per cent. of the Initial Market Value (as defined below) to be made
available to the Borrowers in a single advance for the purpose of refinancing the whole of the existing indebtedness secured on
the Ships (as defined below); and

 

		(ii)	Tranche B, being a reducing revolving facility in an amount equal to the lesser of (AA) US$52,463,155
and (BB) an amount, which when aggregated with the amount of Tranche A actually drawn down on the Drawdown Date of Tranche A, does
not exceed 50 per cent. of the Initial Market Value (as defined below), to be made available to the Borrowers in multiple advances
for the purpose of providing the Borrowers with liquidity for their general corporate purposes.

 

		(B)	The Swap Banks may enter into interest rate swap transactions with the Borrowers from time to time
to hedge the Borrowers’ exposure under this Agreement to interest rate fluctuations.

 

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

 

IT IS AGREED as follows:

 

Interpretation

 

		1.1	Definitions

 

Subject to Clause 1.5, in this
Agreement:

 

“Acceptable
Bank” means a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced
debt obligations of BBB+ or higher by Standard & Poor’s

    	 

    	

    

Rating Services
or Fitch Ratings Ltd or Baa1 or higher by Moody’s Investor Service Limited or a comparable rating from an internationally
recognised credit rating agency;

 

“Account
Charge” means, in relation to each Earnings Account, a deed creating security in respect of that Earnings Account in
the Agreed Form and, in the plural, means all of them;

 

“Advance”
means the principal amount of each borrowing by the Borrowers under this Agreement;

 

“Affected
Lender” has the meaning given in Clause 5.7;

 

“Agency
and Trust Agreement” means the agency and trust agreement dated the same date as this Agreement and made between the
same parties;

 

“Agent”
means DNB Bank ASA, acting in such capacity through its office 8th Floor, The Walbrook Building, 25 Walbrook, London
EC4N 8AF, England, or any successor of it appointed in accordance with clause 5 of the Agency and Trust Agreement;

 

“Agreed
Form” means in relation to any document, that document in the form agreed in writing between the Agent (acting on the
instructions of all the Lenders) and the Borrowers or as approved in accordance with any approval procedure specified in any relevant
provisions of any Finance Document;

 

“Approved
Charterer” means:

 

		(a)	in relation to Ship A, Cosco Container Lines Co., Ltd., a company incorporated and existing in
the People’s Republic of China whose registered office is at No.378, Dong Da Ming Road, Shanghai 200080 (“Approved
Charterer A”);

 

		(b)	in relation to Ship B, MSC-Mediterranean Shipping Co. S.A., a company incorporated and existing
in Switzerland whose registered office is at 40, Avenue Eugene Pittard – 1206 Geneva, Switzerland (“Approved Charterer
B”);

 

		(c)	in relation to Ship C, MSC- Mediterranean Shipping Co. S.A., a company incorporated and existing
in Switzerland whose registered office is at 40, Avenue Eugene Pittard – 1206 Geneva, Switzerland (“Approved Charterer
C”); and

 

		(d)	in relation to Ship D, Italia Maritima S.p.A., a company incorporated and existing in Italy whose
registered office is at ‘Passegio Sant’ Andrea 4-34123 Trieste, Republic of Italy (“Approved Charterer D”),

 

and, in the plural,
means all of them;

 

“Approved
Charter Assignment” means, in relation to an Approved Charter, an assignment of the rights of the Borrower which is
a party to that Approved Charter under the Approved Charter executed or to be executed by that Borrower in favour of the Security
Trustee in the Agreed Form and, in the plural, means all of them;

 

“Approved
Charter” means:

 

		(a)	in relation to Ship A, the time charterparty dated 16 January 2004 entered into between Borrower
A as owner and the Approved Charterer A as charterer (“Approved Charter A”);

 

		(b)	in relation to Ship B, a time charterparty dated 28 January 2011 entered into between Borrower
B as owner and the Approved Charterer B as charterer (“Approved Charter B”);

    	2

    	

    

		(c)	in relation to Ship C, a time charterparty dated 28 January 2011 entered into between Borrower
C as owner and the Approved Charterer C as charterer (“Approved Charter C”);

 

		(d)	in relation to Ship D, a time charterparty dated 30 March 2011 entered into between Borrower D
as owner and the Approved Charterer D as charterer (“Approved Charter D”); and

 

		(e)	any other charterparty in respect of any of the Ships made on terms and with a charterer, in all
respects acceptable to the Majority Lenders (in their absolute discretion) in accordance with Clause 19.1(m) and, in the plural,
means all of them;

 

“Approved
Classification Society” means, in relation to a Ship, American Bureau of Shipping, Det Norske Veritas/Germanischer Lloyd,
Lloyds Register of Shipping or any other classification society, in respect of that Ship, acceptable to the Majority Lenders (such
acceptance not to be unreasonably withheld or delayed);

 

“Approved
Flag” means, in respect of a Ship, any of the Greek, Panamanian, Liberian, Marshall Islands or Maltese flags or any other
flag acceptable to the Majority Lenders as the flag on which that Ship may be registered (such acceptance not to be unreasonably
withheld or delayed);

 

“Approved
Flag State” means, in respect of a Ship, any of Greece, Panama, Liberia, the Marshall Islands or Malta or any other country
in which the Majority Lenders may approve that that Ship may be registered (such approval not to be unreasonably withheld or delayed);

 

“Approved
Manager” means, in relation to a Ship, any one (or more) of Costamare Shipping, Shanghai Costamare and V-Ships and/or
any other company which the Majority Lenders may approve from time to time (such approval not to be unreasonably withheld or delayed)
as the commercial and/or technical manager of that Ship and, in the plural, means all of them;

 

“Approved
Shipbrokers” means, together, Clarksons Platou Shipbroking of London, England, Braemar ACM Shipbroking of London, England,
Simpson Spence & Young of London, England and Howe Robinson of London, England and any other independent firm of shipbrokers
nominated by the Borrower and approved in writing by the Agent (acting on the instructions of the Majority Lenders) in its absolute
discretion always excluding any firm which becomes a Restricted Party after the date of this Agreement and, in the singular, means
any of them;

 

“Asset
Cover Ratio” means, at any relevant time, the aggregate of (a) the aggregate Market Value of the Mortgaged Ships and
(b) the net realisable value of any additional security previously provided under Clause 15 expressed as a percentage of the Loan;

 

“Assignable
Charter” means, in respect of a Ship, any time charterparty (other than an Approved Charter) in respect of that Ship
whose duration exceeds or is capable of exceeding 12 months entered into between the Borrower which is the owner of that Ship and
a charterer and, in the plural, means all of them;

 

“Assignable
Charter Assignment” means, in relation to an Assignable Charter, an assignment of the rights of the Borrower
which is a party to that Assignable Charter under the Assignable Charter executed or, as the context may require, to be executed
by that Borrower in favour of the Security Trustee in the agreed form, and, in the plural, means all of them;

 

“Availability
Period” means the period commencing on the date of this Agreement and ending on:

    	3

    	

    

		(a)	in relation to:

 

		(i)	Tranche A, 30 September 2015; and

 

		(ii)	Tranche B, the date falling 3 months prior to the Final Maturity Date,

 

or such later date as the Agent
may, with the authorisation of the Lenders, agree with the Borrowers; or

 

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

 

“Balloon
Instalment” has the meaning given in Clause 8.1(a)(ii);

 

“Bank
Levy” means the proposed tax detailed in draft legislation released together with a written ministerial statement by
the Financial Secretary to the Treasury of the United Kingdom made on 21 October 2010 as such proposed tax may be subsequently
enacted;

 

“Basel
II Accord” means the “International Convergence of Capital Measurement and Capital Standards, a Revised
Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this
Agreement;

 

“Basel
III” means, together:

 

		(a)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel
III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework
for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical
capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or
restated;

 

		(b)	the rules for global systemically important banks contained in “Global systemically important
banks: assessment methodology and the additional loss absorbency requirement - Rules text” published by the Basel Committee
on Banking Supervision in November 2011, as amended, supplemented or restated; and

 

		(c)	any further guidance or standards published by the Basel Committee on Banking Supervision relating
to “Basel III”;

 

“Bookrunner”
means DNB Bank ASA, acting in such capacity through its office 8th Floor, The Walbrook Building, 25 Walbrook, London
EC4N 8AF, England;

 

“Borrower”
means each of Borrower A, Borrower B, Borrower C and Borrower D and, in the plural, means all of them;

 

“Borrower
A” means Capetanissa Maritime Corporation, a corporation incorporated and existing in Liberia whose registered office
is at 80 Broad Street, Monrovia, Liberia;

 

“Borrower
B” means Jodie Shipping Co., a corporation incorporated and existing in Liberia whose registered office is at 80 Broad
Street, Monrovia, Liberia;

 

“Borrower
C” means Kayley Shipping Co., a corporation incorporated and existing in Liberia whose registered office is at 80 Broad
Street, Monrovia, Liberia;

 

“Borrower
D” means Raymond Shipping Co., a corporation incorporated and existing in Liberia whose registered office is at 80 Broad
Street, Monrovia, Liberia;

 

“Break
Costs” means the amount (if any) by which:

    	4

    	

    

		(a)	the interest which a Lender should have received for the period from the date of receipt of all
or any part of its participation in a Tranche or, as the case may be, Advance to the last day of the current Interest Period in
respect of such Tranche or, as the case may be, Advance had the principal amount received been paid on the last day of that Interest
Period;

 

exceeds:

 

		(b)	the amount which that Lender would be able to obtain by placing an amount equal to the principal
amount received by it on deposit with a leading bank in the London interbank market for a period starting on the Business Day following
receipt or recovery and ending on the last day of the current Interest Period;

 

“Business
Day” means a day on which banks are open in London, Zurich, Basel, Athens, Piraeus and, in respect of a day on which
a payment is required to be made under a Finance Document, also in New York City and/or any other relevant place of payment;

 

“Charter
Cover Deficiency” means, at any relevant time, the majority of Fleet Vessels by number not being subject to time charters
having an unexpired duration at that time exceeding or, capable of exceeding (through the exercise by the relevant member(s) of
the Group of any extension option exercisable by it (or, as the case may be, them)), 18 months;

 

“Commitment”
means, in relation to a Lender, the amount set opposite its name in Schedule 1, or, as the case may require, the amount specified
in the relevant Transfer Certificate, as that amount may be reduced, cancelled or terminated in accordance with this Agreement
(and “Total Commitments” means the aggregate of the Commitments of all the Lenders);

 

“Confidential
Information” means all information relating to any Security Party, the Group, the Finance Documents or the Loan of which
a Creditor Party becomes aware in its capacity as, or for the purpose of becoming, a Creditor Party or which is received by a Creditor
Party in relation to, or for the purpose of becoming a Creditor Party under, the Finance Documents or the Loan from either:

 

		(a)	any member of the Group or any of its advisers; or

 

		(b)	another Creditor Party, if the information was obtained by that Creditor Party directly or indirectly
from any member of the Group or any of its advisers,

 

in whatever form,
and includes information given orally and any document, electronic file or any other way of representing or recording information
which contains or is derived or copied from such information but excludes information that:

 

		(i)	is or becomes public information other than as a direct or indirect result of any breach by that
Creditor Party of Clause 26.12; or

 

		(ii)	is identified in writing at the time of delivery as non-confidential by any member of the Group
or any of its advisers; or

 

		(iii)	is known by that Creditor Party before the date the information is disclosed to it in accordance
with paragraphs (a) or (b) above or is lawfully obtained by that Creditor Party after that date, from a source which is, as far
as that Creditor Party is aware, unconnected with the Group and which, in either case, as far as that Creditor Party is aware,
has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality;

 

“Confidentiality
Agreement” means a confidentiality agreement in the form set out in Schedule 8;

    	5

    	

    

“Confirmation”
and “Early Termination Date”, in relation to any continuing Designated Transaction, have the meanings given
in the relevant Master Agreement;

 

“Contractual
Currency” has the meaning given in Clause 21.4;

 

“Contribution”
means, in relation to a Lender, the part of the Loan which is owing to that Lender;

 

“Costamare
Inc.” means Costamare Inc., a corporation incorporated and existing in the Republic of the Marshall Islands whose registered
office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, the Marshall Islands;

 

“Costamare
Partners” means Costamare Partners GP LLC, a limited liability company formed and existing in the Republic of the Marshall
Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, the Marshall Islands;

 

“Costamare
Shipping” means Costamare Shipping Company S.A., a company incorporated under the laws of Panama and having a place of
business at 60, Zephyrou Street & Syngrou Avenue, 175 64 Athens, Greece;

 

“Creditor
Party” means the Agent, the Security Trustee, any Swap Bank or any Lender, whether as at the date of this Agreement
or at any later time;

 

“Defaulting Lender”
means any Lender:

 

		(a)	which has failed to make available the relevant proportion of its Commitment in respect of any
Advance or has given notice to the Agent that it will not make such amount available by the relevant Drawdown Date pursuant to
Clause 4.3; or

 

		(b)	which has otherwise rescinded or repudiated a Finance Document; or

 

		(c)	with respect to which an Insolvency Event has occurred and is continuing,

 

unless, in the case of paragraph
(a) above:

 

		(i)	its failure to pay is caused by:

 

		(A)	an administrative or technical error; or

 

		(B)	a Disruption Event; and

 

payment is made within 5 Business
Days of its due date; or

 

		(ii)	the Lender is disputing in good faith whether it is contractually obliged to make the relevant
payment;

 

“Designated
Transaction” means a Transaction which fulfils the following requirements:

 

		(a)	it is entered into by the Borrowers pursuant to a Master Agreement with the relevant Swap Bank
which, at the time the Transaction is entered into, is also a Lender and the Borrowers’ rights under the Master Agreement
are subject to a Master Agreement Assignment;

    	6

    	

    

		(b)	its purpose is the hedging of the Borrowers’ exposure under this Agreement to fluctuations
in LIBOR arising from the funding of the Loan (or any part thereof) for a period expiring no later than the final Repayment Date;
and

 

		(c)	it is designated by the Borrowers, by delivery by the Borrowers to the Agent of a notice of designation
in the form set out in Schedule 7, as a Designated Transaction for the purposes of the Finance Documents;

 

“Disposal
Date” has the meaning given to it in Clause 8.1;

 

“Disruption Event”
means either or both of:

 

		(a)	a material disruption to those payment or communications systems or to those financial markets
which are, in each case, required to operate in order for payments to be made in connection with the Loan (or otherwise in order
for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond
the control of, a party to this Agreement (a “Party”); or

 

		(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related
nature) to the treasury or payments operations of a Party preventing that, or any other, Party:

 

		(i)	from performing its payment obligations under the Finance Documents; or

 

		(ii)	from communicating with other parties in accordance with the terms of the Finance Documents,

 

and which (in
either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted;

 

“Dollars”
and “$” means the lawful currency for the time being of the United States of America;

 

“Drawdown
Date” means, in relation to an Advance, the date requested by the Borrower for that Advance to be made, or (as the context
requires) the date on which the Advance is actually made;

 

“Drawdown
Notice” means a notice in the form set out in Schedule 4;

 

“Earnings”
means, in relation to a Ship, all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Borrower
owning that Ship or the Security Trustee and which arise out of the ownership, use or operation of that Ship;

 

“Earnings
Account” means, in relation to a Ship, an account in the name of the Borrower owning that Ship with the Agent in London
or any other account (with that or another office of the Agent) which is designated by the Agent as the Earnings Account in relation
to that Ship for the purposes of this Agreement and, in the plural, means all of them;

 

“Environmental
Claim” means:

 

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

 

		(b)	any claim by any other person which relates to an Environmental Incident,

 

and “claim”
means a claim for damages, compensation, fines, penalties or any other payment of any kind whether or not similar to the foregoing;
an order or direction to take,

    	7

    	

    

or not to take,
certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the arrest
or attachment of any asset;

 

“Environmental
Incident” means, in relation to a Ship:

 

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

 

		(b)	any incident in which Environmentally Sensitive Material is released from a vessel other than that
Ship as a result of a collision between that Ship and such other vessel or some other incident of navigation or operation, in either
case, in connection with which that Ship is actually arrested, attached, detained or injuncted and/or that Ship and/or the Borrower
owning that Ship and/or any operator or manager of that Ship is at fault or otherwise liable to any legal or administrative action;
or

 

		(c)	any other incident in which Environmentally Sensitive Material is released otherwise than from
that Ship and in connection with which that Ship is actually arrested and/or where the relevant Borrower and/or any operator or
manager of that Ship is at fault or otherwise liable to any legal or administrative action;

 

“Environmental
Law” means any law relating to pollution or protection of the environment, to the carriage of Environmentally Sensitive
Material or to actual or threatened releases of Environmentally Sensitive Material;

 

“Environmentally
Sensitive Material” means oil, oil products and any other substance (including any chemical, gas or other hazardous or
noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous;

 

“Event
of Default” means any of the events or circumstances described in Clause 19.1;

 

“FATCA”
means:

 

		(a)	sections 1471 to 1474 of the Code and any Treasury regulations thereunder:

 

		(b)	any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating
to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation
of paragraph(a) above; or

 

		(c)	any agreement pursuant to the implementation of paragraphs (a) or (b) above with the US Internal
Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction;

 

“FATCA
Deduction” means a deduction or withholding from a payment under any Finance Document required by or under FATCA;

 

“FATCA
Exempt Party” means a party to a Finance Document that is entitled under FATCA to receive payments free from any FATCA
Deduction;

 

“Fee
Letter” means any letter or letters dated on or about the date of this Agreement executed between the Agent and the Borrowers
setting out the fees referred to in Clause 20.1(a);

 

“Final
Maturity Date” means the date falling on the earlier of (i) the date falling 54 months after the Drawdown Date of Tranche
A and (ii) 30 November 2019;

 

“Finance
Documents” means:

    	8

    	

    

		(a)	this Agreement;

 

		(b)	the Fee Letter;

 

		(c)	the Agency and Trust Agreement;

 

		(d)	the Master Agreements;

 

		(e)	the Master Agreement Assignments;

 

		(f)	the Guarantee;

 

		(g)	the General Assignments;

 

		(h)	the Mortgages;

 

		(i)	the Account Charges;

 

		(j)	the Approved Charter Assignments;

 

		(k)	the Manager’s Undertakings;

 

		(l)	any Assignable Charter Assignments; and

 

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

 

“Financial
Indebtedness” means, in relation to a person (the “debtor”), a liability of the debtor:

 

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

 

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

 

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

 

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

 

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

 

“Financial
Year” means, in relation to the Group and each Borrower, each period of 1 year commencing on 1 January in respect of
which its audited accounts are or ought to be prepared;

 

“Fleet
Vessel” means, at any relevant time, each vessel included in the consolidated accounts of the Group (including, without
limitation, the Ships, any vessel owned or leased by a member of the Group and any vessel under construction for the account of
a member of the Group at such time) and, in the plural, means all of them;

    	9

    	

    

“Fund”
means an entity (which is not a bank) which manages or invests monies and which is regularly engaged in the making, purchasing
or investing in loans, securities or other financial assets;

 

“General
Assignment” means, in relation to a Ship, a general assignment of the Earnings, the Insurances and any Requisition Compensation
in respect of that Ship in the Agreed Form and, in the plural, means all of them;

 

“Group”
means the Guarantor and each of its subsidiaries and “member of the Group” shall be construed accordingly;

 

“Guarantee”
means a guarantee of the obligations of the Borrowers under this Agreement and the other Finance Documents executed or, as the
context may require, to be executed by the Guarantor in the Agreed Form;

 

“Guarantor”
means Costamare Partners LP, a limited partnership established in the Marshall Islands whose registered office is at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, MH 96960 the Marshall Islands;

 

“Impaired Agent”
means the Agent at any time when:

 

		(a)	it has failed to make (or has notified a party to a Finance Document that it will not make) a payment
required to be made by it under the Finance Documents by the due date for payment;

 

		(b)	the Agent otherwise rescinds or repudiates a Finance Document;

 

		(c)	(if the Agent is also a Lender), it is a Defaulting Lender under paragraph (a) or (b) of the definition
of “Defaulting Lender”; or

 

		(d)	an Insolvency Event has occurred and is continuing with respect to the Agent;

 

unless, in the case of paragraph
(a) above:

 

		(i)	its failure to pay is caused by:

 

		(A)	an administrative or technical error; or

 

		(B)	a Disruption Event; and

 

		(ii)	payment is made within 10 Business Days of its due date; or

 

		(iii)	the Agent is disputing in good faith whether it is contractually obliged to make the payment in
question;

 

“Initial
Approved Charter” means each of Approved Charter A, Approved Charter B, Approved Charter C and Approved Charter D and,
in the plural, means all of them;

 

“Initial
Market Value” means the aggregate of the Market Values of the Ships determined pursuant to the valuations referred to
in paragraph 6 of Schedule 5, Part B;

 

“Insolvency Event”
in relation to a Lender means that Lender:

 

		(a)	is dissolved (other than pursuant to a consolidation, amalgamation or merger);

 

		(b)	becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally
to pay its debts as they become due;

    	10

    	

    

		(c)	makes a general assignment, arrangement, or composition with or for the benefit of its creditors;

 

		(d)	institutes or has instituted against it, by a regulator, supervisor or any similar official with
primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation
or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief
under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation by it or such regulator, supervisor or similar official;

 

		(e)	has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other
relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented
for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such
proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:

 

		(i)	results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making
of an order for its winding-up or liquidation; or

 

		(ii)	is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution
or presentation thereof;

 

		(f)	has a resolution passed for its winding-up, official management or liquidation (other than pursuant
to a consolidation, amalgamation or merger);

 

		(g)	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than, for so long
as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a
person or entity described in paragraph (d) above);

 

		(h)	has a secured party take possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and
such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within
30 days thereafter;

 

		(i)	causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction,
has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or

 

		(j)	takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the foregoing acts;

 

“Instalment”
has the meaning given in the definition of “Reduction Amount” in Clause 8.1;

 

“Insurances”
means, in relation to a Ship:

 

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

 

		(b)	all rights and other assets relating to, or derived from, any of the foregoing, including any rights
to a return of a premium and any rights in respect of any claim

    	11

    	

    

whether or not
the relevant policy, contract of insurance or entry has expired on or before the date of this Agreement;

 

“Interest
Period” means a period determined in accordance with Clause 6;

 

“Interpolated
Screen Rate” means, in relation to LIBOR for Tranche A or, as the case may be, an Advance under Tranche B the rate (rounded
to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:

 

		(a)	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which
is less than the Interest Period of that Tranche or, as the case, Advance; and

 

		(b)	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which
exceeds the Interest Period of that Tranche or, as the case may be, Advance,

 

each as of 11 a.m. (London time)
on the Quotation Date for the currency of that Tranche or, as the case may be, Advance;

 

“ISM
Code” means the International Safety Management Code (including the guidelines on its implementation), adopted by the
International Maritime Organisation as the same may be amended or supplemented from time to time (and the terms “safety
management system”, “Safety Management Certificate” and “Document of Compliance”
have the same meanings as are given to them in the ISM Code);

 

“ISPS
Code” means the International Ship and Port Facility Security Code as adopted by the International Maritime Organisation,
as the same may be amended or supplemented from time to time;

 

“ISSC”
means a valid and current International Ship Security Certificate issued under the ISPS Code;

 

“Lender”
means a bank or financial institution listed in Schedule 1 and acting through its branch indicated in Schedule 1 (or through another
branch notified to the Agent under Clause 26.13) or its permitted transferee, successor or assignee;

 

“LIBOR”
means, in relation to an Interest Period for Tranche A or, as the case may be, Advance under Tranche B:

 

		(a)	the applicable Screen Rate;

 

		(b)	(if no Screen Rate is available for that Interest Period), the applicable Interpolated Screen Rate;
or

 

		(c)	if no Screen Rate is available for that Interest Period and it is not possible to calculate an
Interpolated Screen Rate for that Tranche or, as the case may be, Advance, the Reference Bank Rate,

 

as of, in the case of paragraphs
(a) and (c) above, 11 a.m. (London time) on the Quotation Date for Dollars for that Tranche or, as the case may be, Advance and
for a period equal in length to that Interest Period and, if any such rate is below zero, LIBOR shall be deemed to be zero;

 

“Loan”
means the principal amount for the time being outstanding under this Agreement;

 

“Major
Casualty” means, in relation to a Ship, any casualty to that Ship in respect of which the claim or the aggregate of the
claims against all insurers, before adjustment for any

    	12

    	

    

relevant franchise
or deductible, exceeds $2,000,000 or the equivalent in any other currency;

 

“Majority
Lenders” means:

 

		(a)	before an Advance has been made, Lenders whose Commitments total 65 per cent. of the Total Commitments;
and

 

		(b)	after an Advance has been made, Lenders whose Contributions total 65 per cent. of the Loan;

 

“Management
Agreement” means, in relation to each Ship, an agreement made or to be made between (i) the Borrower owning that Ship
and (ii) the applicable Approved Manager in respect of the commercial and/or technical management of that Ship and, in the plural,
means all of them;

 

“Manager’s
Undertaking” means, in relation to each Ship, a letter of undertaking executed or, as the context my require, to be executed
by the relevant Approved Manager in favour of the Security Trustee in the Agreed Form agreeing certain matters in relation to the
commercial and/or technical management of that Ship and subordinating the rights of that Approved Manager against the Ship and
the Borrower which is the owner thereof to the rights of the Creditor Parties under the Finance Documents and, in the plural, means
all of them;

 

“Mandated
Lead Arranger” means a bank or financial institution listed in Schedule 2 and acting through its branch indicated in
Schedule 2 or its successor;

 

“Mandatory
Cost” means, in relation to any period, a percentage calculated for such period at an annual rate equal to the cost to
the Lenders of complying with any regulation from the Swiss National Bank, the European Central Bank or the Swiss Financial Market
Supervisory Authority or any other similar regulation (as defined in Clause 1.2);

 

“Market
Value” means, in relation to each Ship, the market value thereof calculated in accordance with Clause 15.2;

 

“Margin”
means 1.95 per cent. per annum;

 

“Master
Agreement” means, in relation to each Swap Bank, a master agreement (on the 2002 ISDA (Multicurrency - Crossborder) form)
made between the Borrowers and that Swap Bank and includes all Designated Transactions from time to time entered into and Confirmations
from time to time exchanged under that master agreement and, in the plural, means all of them;

 

“Master
Agreement Assignment” means, in relation to each Master Agreement, the assignment of that Master Agreement executed or,
as the context may require, to be executed by the Borrowers in favour of the Security Trustee in the Agreed Form and, in the plural,
means all of them;

 

“Maximum
Available Amount” has the meaning given in Clause 8.1;

 

“Mortgage”
means, in relation to a Ship, a first priority or preferred mortgage on that Ship together, if applicable, with a deed of covenants
collateral thereto, executed or, as the context may require, to be executed by the Borrower owning that Ship in favour of the Security
Trustee or, as the case may be, the Lenders, in each case, in the Agreed Form, and in the plural, means all of them;

 

“Mortgaged
Ship” means any Ship which is subject to a Mortgage at the relevant time and, in the plural, means all of them;

    	13

    	

    

“Negotiation
Period” has the meaning given in Clause 5.10;

 

“Notifying
Lender” has the meaning given in Clause 23.1 or Clause 24.1 as the context requires;

 

“Paying
Party” has the meaning given in Clause 16.12;

 

“Payment
Currency” has the meaning given in Clause 21.4;

 

“Permitted
Security Interests” means:

 

		(a)	Security Interests created by the Finance Documents;

 

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

 

		(c)	liens for salvage;

 

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

 

		(e)	any liens arising in the ordinary course of trading by operation of law in respect of obligations
which are not overdue or which are being contested in good faith by appropriate proceedings (and for the payment of which adequate
reserves have been provided);

 

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

 

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

 

		(h)	any Security Interest of any kind securing any obligation of any person or any type of preferential
arrangement (including without limitation title transfer arrangements having a similar effect):

 

		(i)	over goods and products of a Borrower, or documents of title to goods and products of a Borrower,
arising in the ordinary course of trading required to be paid within 180 days after the date upon which the relevant indebtedness
was first incurred; and

 

		(ii)	arising by operation of law or which arises pursuant to any order of attachment, distraint or similar
legal process arising in connection with court proceedings Provided that the execution or other enforcement thereof is effectively
stayed and the claims served thereby are being contested at the time in good faith by appropriate proceedings;

 

“Pertinent
Document” means:

 

		(a)	any Finance Document;

 

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

 

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

    	14

    	

    

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

 

“Pertinent
Jurisdiction”, in relation to a company, means:

 

		(a)	England and Wales;

 

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

 

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

 

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

 

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

 

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

 

“Pertinent
Matter” means:

 

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

 

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

 

and covers any such transaction,
matter or statement, whether entered into, arising or made at any time before the signing of this Agreement or on or at any time
after that signing;

 

“Potential
Event of Default” means an event or circumstance which, with the giving of any notice, the lapse of time, a determination
of the Agent (acting on the instructions of the Majority Lenders) and/or the satisfaction of any other condition, would constitute
an Event of Default;

 

“Quotation
Date” means, in relation to any period for which an interest rate is to be determined, two Business Days before the first
day of that period unless market practice differs in the London interbank market in which case the Quotation Date will be determined
by the Agent in accordance with market practice in the London interbank market (and if quotations would normally be given by leading
banks in the London interbank market on more than one day, the Quotation Date will be the last of those days);

 

“Recipient
Party” has the meaning given in Clause 16.12;

 

“Reduction
Date” has the meaning given to it in Clause 8.1;

 

“Reference
Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at
its request by each Reference Bank as the rate at which the relevant Reference Bank could borrow funds in the London interbank
market in

    	15

    	

    

Dollars for the
relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that
currency and for that period;

 

“Reference
Banks” means the principal London offices of DNB Bank ASA, Citibank, N.A., London Branch and Credit Suisse AG or such
other banks as may be appointed by the Agent (acting on the instructions of the Lenders) with the agreement of the Borrowers;

 

“Relevant
Person” has the meaning given in Clause 19.9;

 

“Repayment
Date” means a date on which a repayment is required to be made under Clause 8;

 

“Representative”
means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian;

 

“Requisition Compensation”
includes all compensation or other moneys payable by reason of any act or event such as is referred to in paragraph (b) of the
definition of “Total Loss”;

 

“Restricted
Country” means the Republic of Cuba, the Islamic Republic of Iran, Myanmar, the Democratic People’s Republic of
Korea, the Syrian Arab Republic, Sudan and any other country which is subject to Sanctions Laws (as long as each such country remains
subject to Sanctions Laws);

 

“Restricted
Party” means a person:

 

		(a)	that is listed on any Sanctions List (whether designated by name or by reason of being included
in a class of person);

 

		(b)	that is domiciled, registered as located or having its main place of business in, or is incorporated
under the laws of, a Restricted Country; or

 

		(c)	that is directly or indirectly owned or controlled by a person referred to in (a) and/or (b) above;
or

 

		(d)	with which any Lender is prohibited from dealing or otherwise engaging in a transaction with by
any Sanctions Laws;

 

“Sanctions
Authority” means the Norwegian State, the United Nations, the European Union, the member states of the European Union,
the United States of America, Switzerland, Hong Kong Special Administrative Region, Singapore, any authority acting on behalf of
any of them or otherwise in connection with Sanctions Laws;

 

“Sanctions
Laws” means the economic or financial sanctions laws and/or regulations, trade embargoes, prohibitions, restrictive measures,
decisions, executive orders or notices from regulators implemented, adapted, imposed, administered, enacted and/or enforced by
any Sanctions Authority;

 

“Sanctions
List” means any list of persons or entities published in connection with Sanctions Laws by or on behalf of any Sanctions
Authority;

 

“Screen
Rate” means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person
which takes over the administration of that rate) for Dollars for the relevant period displayed on pages LIBOR01 or LIBOR02 of
the Reuters screen (or any replacement Reuters page which displays that rate) or on the appropriate page of such other information
service which publishes that rate from time to time in place of Reuters. If such page or service ceases to be available, the Agent
may specify another page or service displaying the relevant rate after consultation with the Borrowers and the Lenders;

    	16

    	

    

“Secured
Liabilities” means all liabilities which the Borrowers, the Security Parties or any of them have, at the date of this
Agreement or at any later time or times, under or in connection with any Finance Document or any judgment relating to any Finance
Document; and for this purpose, there shall be disregarded any total or partial discharge of these liabilities, or variation of
their terms, which is effected by, or in connection with, any bankruptcy, liquidation, arrangement or other procedure under the
insolvency laws of any country;

 

“Security
Interest” means:

 

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

 

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

 

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

 

“Security
Party” means the Guarantor and any other person (except a Creditor Party, any Approved Manager or any Approved Charterer)
who, as a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes
a document falling within the last paragraph of the definition of “Finance Documents” and, in the plural, means
all of them;

 

“Security
Period” means the period commencing on the date of this Agreement and ending on the date on which the Agent notifies
the Borrowers, the Security Parties and the Lenders that:

 

		(a)	all amounts which have become due for payment by any Borrower or any Security Party under the Finance
Documents have been paid;

 

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

 

		(c)	neither a Borrower nor any Security Party has any future or contingent liability under Clauses
20, 21 or 22 or any other provision of this Agreement or another Finance Document; and

 

		(d)	the Agent, the Security Trustee and the Lenders do not consider that there is a significant risk
that any payment or transaction under a Finance Document would be set aside, or would have to be reversed or adjusted, in any present
bankruptcy of any Borrower or a Security Party or in any present proceeding relating to a Finance Document or any asset covered
(or previously covered) by a Security Interest created by a Finance Document;

 

“Security
Trustee” means DNB Bank ASA, acting in such capacity through its office at 8th Floor, The Walbrook Building,
25 Walbrook, London EC4N 8AF, England, or any successor of it appointed in accordance with clause 5 of the Agency and Trust Agreement;

 

“Servicing
Bank” means the Agent or the Security Trustee;

 

“Shanghai
Costamare” means Shanghai Costamare Ship Management Co., Ltd., a company incorporated in the People’s Republic
of China and having its principal place of business at 38F Sino Life Tower, 707 Zhangyang Road, Pudong New District, Shanghai,
PRC 200122;

    	17

    	

    

“Ship
A” means the 2006-built containership of approximately 9,469 TEU currently registered in the ownership of Borrower A
under an Approved Flag in accordance with the laws of the relevant Approved Flag State with the name “COSCO BEIJING”;

 

“Ship
B” means the 2013-built containership of approximately 8,827 TEU currently registered in the ownership of Borrower B
under an Approved Flag in accordance with the laws of the relevant Approved Flag State with the name “MSC ATHENS”;

 

“Ship
C” means the 2013-built containership of approximately 8,827 TEU currently registered in the ownership of Borrower C
under an Approved Flag, in accordance with the laws of the relevant Approved Flag State with the name “MSC ATHOS”;

 

“Ship
D” means the 2013-built containership of approximately 8,827 TEU currently registered in the ownership of Borrower D
under an Approved Flag in accordance with the laws of the relevant Approved Flag State with the name “VALUE”;

 

“Ships”
means, together, Ship A, Ship B, Ship C and Ship D and, in the singular, means any of them;

 

“Swap
Bank” means a bank or financial institution listed in Schedule 3 and acting through its branch, indicated in Schedule
3 or its permitted transferee, successor or assign;

 

“Swap
Exposure” means, as at any relevant date in the case of a Master Agreement, the amount certified by the Swap Bank which
is a party to that Master Agreement to the Agent to be the aggregate net amount in Dollars which would be payable by the Borrowers
to that Swap Bank or by that Swap Bank to the Borrowers under (and calculated in accordance with) section 6(e) (Payments on Early
Termination) of that Master Agreement if an Early Termination Date had occurred on the relevant date in relation to all continuing
Designated Transactions entered into between the Borrowers and that Swap Bank;

 

“Total
Loss” means, in relation to a Ship:

 

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

 

		(b)	any expropriation, confiscation, requisition or acquisition of that Ship, whether for full consideration,
a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any government
or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding
a requisition for hire) unless it is within 3 months redelivered to the full control of the Borrower owning that Ship; and

 

		(c)	any arrest, capture, seizure or detention of that Ship (including any hijacking or theft) unless
it is within 90 days redelivered to the full control of that Borrower;

 

“Total
Loss Date” means, in relation to a Ship:

 

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

 

		(b)	in the case of a constructive, compromised, agreed or arranged total loss of that Ship, the earlier
of:

 

		(i)	90 days after the date on which notice of abandonment is given to the insurers; and

 

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

    	18

    	

    

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

 

“Tranche”
means each of Tranche A and Tranche B and, in the plural, means both of them;

 

“Tranche
A” means an amount of up to the lesser of (i) $124,378,945 and (ii) an amount, which when aggregated with the amount
of any Advance or Advances under Tranche B which is or are to be made available on the Drawdown Date for Tranche A, does not exceed
50 per cent. of the Initial Market Value or, as the context may require, the aggregate principal amount outstanding thereof at
that time;

 

“Tranche
B” means an amount equal to the lesser of (i) $52,463,155 and (ii) an amount, which when aggregated with the amount of
Tranche A actually drawn on the Drawdown Date of Tranche A, does not exceed 50 per cent. of the Initial Market Value or, as the
context may require, the aggregate principal amount outstanding thereof at that time;

 

“Transfer
Certificate” has the meaning given in Clause 26.2 and means a certificate in the form set out in Schedule 6;

 

“Transaction”
has the meaning given in the Master Agreement;

 

“Trust
Property” has the meaning given in clause 3.1 of the Agency and Trust Agreement;

 

“Underlying
Documents” means, in relation to a Ship, together, the Approved Charter and the Management Agreement in relation to that
Ship and, in the plural, means all of them;

 

“USGAAP”
means generally accepted accounting principles as from time to time in effect in the United States of America;

 

“VAT”
means:

 

		(a)	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system
of value added tax (EC Directive 2006/112); and

 

		(b)	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution
for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere; and

 

“V-Ships”
means V-Ships Greece Ltd. a company incorporated and existing in Bermuda whose registered address is at Par-La-Ville, Par-La-Ville
Road, Hamilton HM08, Bermuda.

 

		1.2	Construction of certain terms

 

In this Agreement:

 

“administration
notice” means a notice appointing an administrator, a notice of intended appointment and any other notice which is required
by law (generally or in the case concerned) to be filed with the court or given to a person prior to, or in connection with, the
appointment of an administrator;

 

“approved”
means, for the purposes of Clause 13, approved (such approval not to be unreasonably withheld or delayed and it being agreed that
any cover on Nordic terms placed with or under the lead of the Swedish Club shall be deemed approved) in writing by the Agent;

 

“asset” includes
every kind of property, asset, interest or right, including any present, future or contingent right to any revenues or other payment;

    	19

    	

    

“company” includes
any partnership, joint venture and unincorporated association;

 

“consent” includes
an authorisation, consent, approval, resolution, licence, exemption, filing, registration, notarisation and legalisation;

 

“contingent
liability” means a liability which is not certain to arise and/or the amount of which remains unascertained;

 

“document” includes
a deed; also a letter or fax;

 

“excess
risks” means, in relation to a Ship, the proportion of claims for general average, salvage and salvage charges not recoverable
under the hull and machinery policies in respect of that Ship in consequence of its insured value being less than the value at
which that Ship is assessed for the purpose of such claims;

 

“expense”
means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable value added or other
tax;

 

“law” includes
any order or decree, any form of delegated legislation, any treaty or international convention and any regulation or resolution
of the Council of the European Union, the European Commission, the United Nations or its Security Council;

 

“legal
or administrative action” means any legal proceeding or arbitration and any administrative or regulatory action;

 

“liability”
includes every kind of debt or liability (present or future, certain or contigent), whether incurred as principal or surety or
otherwise;

 

“months” shall
be construed in accordance with Clause 1.3;

 

“obligatory
insurances” means, in relation to a Ship, all insurances effected, or which the Borrower owning that Ship is obliged
to effect, under Clause 13 or any other provision of this Agreement or another Finance Document;

 

“parent
company” has the meaning given in Clause 1.4;

 

“person” includes
any company; any state, political sub-division of a state and local or municipal authority; and any international organisation;

 

“policy”, in
relation to any insurance, includes a slip, cover note, certificate of entry or other document evidencing the contract of insurance
or its terms;

 

“protection
and indemnity risks” means the usual risks covered by a protection and indemnity association being a member of the International
Group of P&I Clubs or any successor organisation, including pollution risks and the proportion (if any) of any sums payable
to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of
the incorporation in them of clause 6 of the International Hull Clauses (1/11/02 or 1/11/03) or clause 8 of the Institute Time
Clauses (Hulls) (1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute Amended Running Down Clause
(1/10/71) or any equivalent provision, whichever is applicable in the case of the relevant Ship;

 

“regulation”
includes any regulation, rule, official directive, request or guideline (whether or not having the force of law, but if not having
the force of law, one with which the relevant person habitually complies) of any governmental, intergovernmental or supranational
body, agency, department or regulatory, self-regulatory or other authority or organisation;

 

“subsidiary”
has the meaning given in Clause 1.4;

    	20

    	

    

“tax” includes
any present or future tax, duty, impost, levy or charge of any kind which is imposed by any state, any political sub-division of
a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any connected
penalty, interest or fine; and

 

“war risks”
includes the risk of mines, blocking and trapping risks, primary war protection and indemnity risks and all risks excluded by clause
29 of the International Hull Clauses (1/11/02 or 1/11/03) or clause 24 of the Institute Time Clauses (Hulls)(1/11/95) or clause
23 of the Institute Time Clauses (Hulls) (1/10/83) or any equivalent provision, whichever is applicable in the case of the relevant
Ship.

 

		1.3	Meaning of “month”

 

A period of one or more “months”
ends on the day in the relevant calendar month numerically corresponding to the day of the calendar month on which the period started
(“the numerically corresponding day”), but:

 

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

 

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

 

and “month”
and “monthly” shall be construed accordingly.

 

		1.4	Meaning of “subsidiary”

 

A company (S) is a subsidiary of
another company (P) if:

 

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

 

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

 

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

 

and any company of which S is a
subsidiary is a parent company of S.

 

		1.5	General Interpretation

 

In this Agreement:

 

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

 

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

 

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

 

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

    	21

    	

    

		1.6	Headings

 

In interpreting a Finance Document
or any provision of a Finance Document, all clause, sub-clause and other headings in that and any other Finance Document shall
be entirely disregarded.

 

		1.7	Event of Default

 

An Event of Default is “continuing”
if it has not been remedied or waived.

 

Facility

 

		2.1	Amount of facility

 

Subject to the other provisions
of this Agreement, the Lenders shall make available to the Borrowers secured term loan and reducing revolving facilities not exceeding,
in aggregate, $176,842,100 divided into two Tranches, with Tranche A being made available in a single Advance and Tranche B in
multiple Advances.

 

		2.2	Lenders’ participations in Advances

 

Subject to the other provisions
of this Agreement, each Lender shall participate in each Advance in the proportion which, as at the relevant Drawdown Date, its
Commitment bears to the Total Commitments.

 

		2.3	Purpose of Advances

 

The Borrowers undertake with each
Creditor Party to use each Advance only for the purpose stated in the preamble to this Agreement.

 

Position
of the Lenders, the Swap Banks and the Majority Lenders

 

		3.1	Interests of Lenders and Swap Banks several

 

The rights of the Lenders and the
Swap Banks under this Agreement and the Master Agreements are several; accordingly:

 

		(a)	each Lender shall be entitled to sue for any amount which has become due and payable by the Borrowers
to it under this Agreement; and

 

		(b)	each Swap Bank shall be entitled to sue for any amount which has become due and payable by the
Borrowers to it under the Master Agreement to which that Swap Bank is a party,

 

without joining the Agent, the
Security Trustee, any other Lender and any other Swap Bank as additional parties in the proceedings.

 

		3.2	Proceedings by individual Lender or individual Swap Bank

 

However, without the prior written
consent of the Agent (acting on the instructions of the Majority Lenders), no Lender nor any Swap Bank may bring proceedings in
respect of:

 

		(a)	any other liability or obligation of any Borrower or a Security Party under or connected with a
Finance Document; or

 

		(b)	any misrepresentation or breach of warranty by any Borrower or a Security Party in or connected
with a Finance Document.

    	22

    	

    

Clause 19.2 shall apply to any
action which may be taken by the Agent and/or the Security Trustee, acting on the instructions of the Majority Lenders, following
the occurrence of an Event of Default (including, without limitation, the enforcement of any of the Security Interests created
by the Finance Documents).

 

		3.3	Obligations several

 

The obligations of the Lenders
and each Swap Bank under this Agreement and of that Swap Bank under the relevant Master Agreement are several; and a failure of
a Lender or a Swap Bank to perform its obligations under this Agreement or of a Swap Bank to perform its obligations under the
Master Agreement to which that Swap Bank is a party shall not result in:

 

		(a)	the obligations of the other Lenders or (as the case may be) the other Swap Banks being increased;
nor

 

		(b)	any Borrower, any Security Party or any other Creditor Party being discharged (in whole or in part)
from its obligations under any Finance Document,

 

and in no circumstances shall a
Lender or a Swap Bank have any responsibility for a failure of another Lender or another Swap Bank to perform its obligations under
this Agreement or any Master Agreement.

 

		3.4	Parties bound by certain actions of Majority Lenders

 

Every Lender, every Swap Bank,
each Borrower and each Security Party shall be bound by:

 

		(a)	any determination made, or action taken, by the Majority Lenders under any provision of a Finance
Document;

 

		(b)	any instruction or authorisation given by the Majority Lenders to the Agent or the Security Trustee
under or in connection with any Finance Document (subject always to Clause 27.2);

 

		(c)	any action taken (or in good faith purportedly taken) by the Agent or the Security Trustee in accordance
with such an instruction or authorisation.

 

		3.5	Reliance on action of Agent

 

However, each Borrower and each
Security Party:

 

		(a)	shall be entitled to assume that the Majority Lenders have duly given any instruction or authorisation
which, under any provision of a Finance Document, is required in relation to any action which the Agent has taken or is about to
take; and

 

		(b)	shall be entitled to assume that unless otherwise expressly stated in this Agreement and the other
Finance Documents, the Agent is acting on the instructions of all Lenders when taking any action, giving any authorisation or making
any determination; and

 

		(c)	shall not be entitled to require any evidence that such an instruction or authorisation has been
given.

 

		3.6	Construction

 

In Clauses 3.4 and 3.5 references
to action taken include (without limitation) the granting of any waiver or consent, an approval of any document and an agreement
to any matter.

    	23

    	

    

Drawdown

 

		4.1	Request for Advance

 

Subject to the following conditions,
the Borrowers may request an Advance to be made by ensuring that the Agent receives a completed Drawdown Notice not later than
11.00 a.m. (London time) 3 Business Days prior to the intended Drawdown Date.

 

		4.2	Availability

 

The conditions referred to in Clause
4.1 are that:

 

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

 

		(b)	the first Drawdown Date in respect of Tranche B shall not fall earlier than the Drawdown Date in
respect of Tranche A;

 

		(c)	each Tranche shall be made available:

 

		(i)	in the case of Tranche A, in a single Advance in an amount not exceeding the lesser of (i) $124,378,945
and (ii) an amount, which when aggregated with the amount of any Advance or Advances under Tranche B which is or are to be made
available on the Drawdown Date of Tranche A does not exceed 50 per cent. of the Initial Market Value:

 

		(ii)	in the case of Tranche B, in multiple Advances, each being in an amount of not less than $1,000,000
Provided that:

 

		(A)	such amount shall not exceed the Maximum Available Amount applicable at the relevant Drawdown Date;

 

		(B)	for as long as that Maximum Available Amount is less than $1,000,000 the Borrowers shall not be
entitled to drawdown an Advance under Tranche B; and

 

		(d)	the aggregate amount of the Tranches shall not exceed the Total Commitments.

 

		4.3	Notification to Lenders of receipt of a Drawdown Notice

 

The Agent shall promptly notify
the Lenders that it has received a Drawdown Notice and shall inform each Lender of:

 

		(a)	the amount of the Advance and the Drawdown Date of that Advance;

 

		(b)	the amount of that Lender’s participation in that Advance; and

 

		(c)	the duration of the first Interest Period in respect of that Advance.

 

		4.4	Drawdown Notice irrevocable

 

A Drawdown Notice must be signed
by a director or attorney-in-fact of each Borrower; and once served, a Drawdown Notice cannot be revoked without the prior consent
of the Agent, acting on the authority of the Majority Lenders, such consent not to be unreasonably withheld or delayed (and such
consent may be withheld if any of the Lenders incurs any reasonable and documented expenses or losses as a result of a revocation
of a Drawdown Notice and is not indemnified by the Borrowers (or any of them) for the same).

    	24

    	

    

		4.5	Lenders to make available Contributions

 

Subject to the provisions of this
Agreement, each Lender shall, on and with value on each Drawdown Date, make available to the Agent for the account of the Borrowers
the amount due from that Lender on that Drawdown Date under Clause 2.2.

 

		4.6	Disbursement of Advance

 

Subject to the provisions of this
Agreement, the Agent shall on each Drawdown Date pay to the Borrowers the amounts which the Agent receives from the Lenders under
Clause 4.5; and that payment to the Borrowers shall be made:

 

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

 

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

 

		4.7	Disbursement of Advance to third party

 

The payment by the Agent under
Clause 4.6 shall constitute the making and borrowing of the Advance and the Borrowers shall at that time become indebted, as principal
and direct obligor, to each Lender in an amount equal to that Lender’s Contribution.

 

Interest

 

		5.1	Payment of normal interest

 

Subject to the provisions of this
Agreement, interest on Tranche A or, in the case of Tranche B, an Advance under that Tranche in respect of each Interest Period
applicable to it shall be paid by the Borrowers on the last day of that Interest Period.

 

		5.2	Normal rate of interest

 

Subject to the provisions of this
Agreement, the rate of interest on Tranche A or, in the case of Tranche B, an Advance under that Tranche in respect of an Interest
Period applicable to it shall be the aggregate of:

 

		(a)	the Margin; and

 

		(b)	the Mandatory Cost (if any); and

 

		(c)	LIBOR.

 

		5.3	Payment of accrued interest

 

In the case of an Interest Period
longer than 6 months (to be selected by the Borrowers and agreed by the Lenders in accordance with Clause 6.2(c)), accrued interest
shall be paid every 6 months during that Interest Period and on the last day of that Interest Period.

 

		5.4	Notification of Interest Periods and rates of normal interest

 

The Agent shall notify the Borrowers
and each Lender of:

 

		(a)	each rate of interest; and

 

		(b)	the duration of each Interest Period,

 

as soon as reasonably practicable
after each is determined.

    	25

    	

    

		5.5	Obligation of Reference Banks to quote

 

A Reference Bank which is a Lender
shall use all reasonable efforts to supply the quotation required of it for the purposes of fixing a rate of interest under this
Agreement.

 

		5.6	Absence of quotations by Reference Banks

 

If any Reference Bank fails to
supply a quotation by 12 p.m. (London time) on a Quotation Date, the Agent shall determine the relevant LIBOR on the basis of the
quotations supplied by the other Reference Bank or Banks; but if 2 or more of the Reference Banks fail to provide a quotation,
the relevant rate of interest shall be set in accordance with the following provisions of this Clause 5.

 

		5.7	Market disruption

 

The following provisions of this
Clause 5 apply if:

 

		(a)	no rate is quoted on the Screen Rate and 2 or more of the Reference Banks do not, before 1.00 p.m.
(London time) on the Quotation Date for an Interest Period in relation to Tranche A or, as the case may be, an Advance under Tranche
B, provide quotation to the Agent in order to fix LIBOR for that Tranche or, as the case may be, Advance; or

 

		(b)	at least 1 Business Day before the start of an Interest Period, Lenders having Contributions together
amounting to more than 50 per cent. of the Loan (or, if an Advance has not been made, Commitments amounting to more than 50 per
cent. of the Total Commitments) notify the Agent that LIBOR fixed by the Agent would not accurately reflect the cost to those Lenders
of funding their respective Contributions (or any part of them) during the Interest Period in the London interbank market at or
about 11.00 a.m. (London time) on the Quotation Date for the Interest Period; or

 

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

 

		5.8	Notification of market disruption

 

The Agent shall promptly notify
the Borrowers and each of the Lenders stating the circumstances falling within Clause 5.7 which have caused its notice to be given.

 

		5.9	Suspension of drawdown

 

If the Agent’s notice under
Clause 5.8 is served before an Advance is made:

 

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

 

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

 

shall be suspended while the circumstances
referred to in the Agent’s notice continue.

 

		5.10	Negotiation of alternative rate of interest

 

If the Agent’s notice under
Clause 5.8 is served after an Advance is made, the Borrowers, the Agent and the Lenders or (as the case may be) the Affected Lender
shall use reasonable endeavours to agree in good faith, within the 30 days after the date on which the Agent serves its notice
under Clause 5.8 (the “Negotiation Period”), an alternative interest rate or

    	26

    	

    

(as the case may be) an alternative
basis for the Lenders or (as the case may be) the Affected Lender to fund or continue to fund their or its Contribution during
the Interest Period concerned.

 

		5.11	Application of agreed alternative rate of interest

 

Any alternative interest rate or
an alternative basis which is agreed during the Negotiation Period shall take effect in accordance with the terms agreed.

 

		5.12	Alternative rate of interest in absence of agreement

 

If an alternative interest rate
or alternative basis is not agreed within the Negotiation Period, and the relevant circumstances are continuing at the end of the
Negotiation Period, then the Agent shall, with the agreement of each Lender or (as the case may be) the Affected Lender, set an
interest period and interest rate (the “Substitute Basis”) representing the cost of funding of the Lenders or
(as the case may be) the Affected Lender in Dollars or in any available currency of their or its Contribution plus the Margin and
the Mandatory Cost (if any); and the procedure provided for by this Clause 5.12 shall be repeated if the relevant circumstances
are continuing at the end of the interest period so set by the Agent.

 

The Substitute Basis so certified
shall be binding upon the Borrowers and shall take effect in accordance with its terms from the date specified in the notice until
such time as the Agent notifies the Borrowers that none of the circumstances specified in Clause 5.7 continues to exist whereupon
the normal interest rate fixing provisions of this Agreement shall apply. For so long as any Substitute Basis is in force, the
Agent shall from time to time (but at least on a monthly basis) and in consultation with the Lenders, review whether or not the
circumstances that have caused the application of the Substitute Basis have ceased to exist, and if the Majority Lenders and the
Agent conclude that they have so ceased to exist and that such Substitute Basis shall no longer apply, the Agent shall notify the
Borrowers and the Lenders that the Substitute Basis shall cease to be effective from such date as the Agent shall reasonably specify.

 

		5.13	Notice of prepayment

 

If the Borrowers do not agree with
an interest rate set by the Agent under Clause 5.12, the Borrowers may give the Agent not less than 3 Business Days’ notice
of their intention to prepay the Loan or (as the case may be) the Affected Lender’s Contribution, at the end of the interest
period set by the Agent.

 

		5.14	Prepayment; termination of Commitments

 

A notice under Clause 5.13 shall
be irrevocable; the Agent shall promptly notify the Lenders or (as the case may require) the Affected Lender of the Borrowers’
notice of intended prepayment; and:

 

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

 

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

 

		5.15	Application of prepayment

 

The provisions of Clause 8 shall
apply in relation to the prepayment.

    	27

    	

    

Interest
Periods

 

		6.1	Commencement of Interest Periods

 

The first Interest Period applicable
to Tranche A or, as the case may be, an Advance under Tranche B shall commence on the Drawdown Date applicable to that Tranche
or, as the case may be, Advance and each subsequent Interest Period in respect of that Tranche or, as the case may be, Advance
shall commence on the expiry of the preceding Interest Period.

 

		6.2	Duration of normal Interest Periods

 

Subject to Clauses 6.3 and 6.4,
each Interest Period in respect of Tranche A or, as the case may be, an Advance under Tranche B shall be:

 

		(a)	3 or 6 months as notified by the Borrowers to the Agent not later than 11.00 a.m. (London time)
2 Business Days before the commencement of that Interest Period; or

 

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

 

		(c)	such other period as the Agent may, with the authorisation of all the Lenders, agree with the Borrowers.

 

		6.3	Duration of Interest Periods for Instalments

 

In respect of an amount due to
be repaid under Clause 8 on a particular Repayment Date, or, as the case may be, Reduction Date an Interest Period shall end on
that Repayment Date or, as the case may be, Reduction Date.

 

		6.4	Non-availability of matching deposits for Interest Period selected

 

If, after the Borrowers have selected
and, as the case may be, the Lenders have agreed in accordance with Clause 6.2(c) an Interest Period longer than 3 months, any
Lender notifies the Agent by 11.00 a.m. (London time) on the third Business Day before the commencement of the Interest Period
that it is not satisfied that deposits in Dollars for a period equal to the Interest Period will be available to it in the London
interbank market when the Interest Period commences, the Interest Period shall be of 3 months unless the Borrowers do not agree
in which case the procedure referred to in Clause 5 (arising from a notification to the Agent pursuant to Clause 5.7(c)) shall
apply.

 

Default
Interest

 

		7.1	Payment of default interest on overdue amounts

 

The Borrowers shall pay interest
in accordance with the following provisions of this Clause 7 on any amount payable by any Borrower under any Finance Document which
the Agent, the Security Trustee or the other designated payee does not receive on or before the relevant date, that is:

 

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

 

		(b)	if a Finance Document provides that such amount is payable on demand, the date falling 3 Business
Days after the date on which the demand is served; or

 

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

    	28

    	

    

		7.2	Default rate of interest

 

Interest shall accrue on an overdue
amount from (and including) the relevant date until the date of actual payment (as well after as before judgment) at the rate per
annum determined by the Agent to be 2 per cent. above:

 

		(a)	in the case of an overdue amount of principal, either the rate set out at Clause 7.3(a) (during
any unexpired part of any current Interest Period applicable to that overdue amount immediately prior to the relevant date) or
the rate set out at Clause 7.3(b) (in all other cases); or

 

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

 

		7.3	Calculation of default rate of interest

 

The rates referred to in Clause
7.2 are:

 

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

 

		(b)	the aggregate of the Margin and, to the extent higher than the Mandatory Cost applicable on the
date of this Agreement, the Mandatory Cost (if any) plus, in respect of successive periods of any duration (including at call)
up to 3 months which the Agent may select from time to time:

 

		(i)	LIBOR; or

 

		(ii)	if the Agent (after consultation with the Reference Banks) determines that Dollar deposits for
any such period are not being made available to two or more Reference Banks by leading banks in the London interbank market in
the ordinary course of business, a rate from time to time determined by the Agent by reference to the cost of funds to the Reference
Banks from such other sources as the Agent (after consultation with the Reference Banks) may from time to time determine.

 

		7.4	Notification of interest periods and default rates

 

The Agent shall promptly notify
the Lenders and the Borrowers of each interest rate determined by the Agent under Clause 7.3 and of each period selected by the
Agent for the purposes of paragraph 7.3(b) of that Clause; but this shall not be taken to imply that the Borrowers are liable to
pay such interest only with effect from the date of the Agent’s notification.

 

		7.5	Payment of accrued default interest

 

Subject to the other provisions
of this Agreement, any interest due under this Clause shall be paid on the last day of the period by reference to which it was
determined; and the payment shall be made to the Agent for the account of the Creditor Party to which the overdue amount is due.

 

		7.6	Compounding of default interest

 

Any such interest which is not
paid at the end of the period by reference to which it was determined shall thereupon be compounded.

 

		7.7	Application to Master Agreement

 

For the avoidance of doubt, this
Clause 7 does not apply to any amount payable under any Master Agreement in respect of any continuing Designated Transaction in
respect of that

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Master Agreement as to which section
2(e) (Default Interest; Other Amounts) of that Master Agreement shall apply.

 

Reduction,
Repayment and Prepayment

 

		8.1	Amount of instalments and reductions

 

In the case of:

 

		(a)	Tranche A, the Borrowers shall repay that Tranche by:

 

		(i)	17 equal consecutive quarterly instalments (each an “Instalment A” and, together,
the “Instalments A”), each in the amount of $2,221,055; and

 

		(ii)	a balloon instalment in the amount of $86,621,010 (the “Balloon Instalment”),

 

Provided that if the amount
of Tranche A drawn down is less than $124,378,945 each Instalment A and the Balloon Instalment will be reduced pro rata by an amount
in aggregate equal to the undrawn amount; and

 

		(b)	Tranche B:

 

		(i)	such Tranche shall be reduced on each Reduction Date by the applicable Reduction Amount;

 

		(ii)	the Maximum Available Amount shall be reduced, in addition to any reduction arising pursuant to
Clause 8.1(b)(i), by the amount of any prepayments required to be made under or pursuant to:

 

		(A)	Clause 5.14;

 

		(B)	Clause 8.8(c);

 

		(C)	Clause 19.2(a);

 

		(D)	Clause 23.3; and

 

		(E)	Clause 24.6;

 

		(iii)	the Maximum Available Amount shall, on the date on which a Mortgaged Ship is sold or on the applicable
Total Loss Date (a “Disposal Date”), be reduced, in addition to any reduction arising pursuant to Clause
8.1(b)(i) and/or Clause 8.1(b)(ii), by an amount equal to the Maximum Available Amount which applied immediately prior to the relevant
Disposal Date multiplied by a fraction whose:

 

		(A)	numerator is the Market Value of the Mortgaged Ship being sold or which has become a Total Loss
on the relevant Disposal Date ; and

 

		(B)	denominator is the aggregate Market Value of the Mortgaged Ships (including the Mortgaged Ship
sold or lost) on the relevant Disposal Date;

 

		(iv)	such Tranche shall be repaid on each Reduction Date by the lesser of:

 

		(A)	the applicable Reduction Amount; and

 

		(B)	the amount (if any) by which Tranche B exceeds the then applicable Maximum Available Amount on
that Reduction Date; and

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		(v)	the Borrowers shall repay each Advance under Tranche B in full in the manner described in Clause
8.2(b)(iii).

 

In this Clause 8.1:

 

“Maximum Available
Amount” means:

 

		(a)	on the date of this Agreement and at all times until the first Reduction Date, an amount equal
to the lesser of (the “Initial Maximum Amount”):

 

		(i)	$52,463,155; and

 

		(ii)	an amount which when aggregated with (A) the amount of Tranche A and (B) any other Advances drawn
down under Tranche B which are outstanding as at the relevant Drawdown Date does not exceed 50 per cent. of the Initial Market
Value; and

 

		(b)	on each Reduction Date and at all times until the following Reduction Date (but subject to paragraph
(c)), the Initial Maximum Amount:

 

		(i)	as reduced on that date by the relevant Reduction Amount; and

 

		(ii)	in the case of the second, and each subsequent, Reduction Date, as previously reduced on the preceding
Reduction Date(s);

 

		(c)	on each Disposal Date, the Initial Maximum Amount:

 

		(i)	as reduced pursuant to paragraph (b); and

 

		(ii)	as reduced on that date by the amount determined in accordance with Clause 8.1(b)(iii);

 

“Reduction Amount”
means, in respect of each Reduction Date, an amount equal to the higher of:

 

		(a)	$936,845; and

 

		(b)	in the case of the Final Reduction Date, the amount of Tranche B as at that date,

 

(each an “Instalment B”
and, together, the “Instalments B” and together with the Instalments A, the “Instalments”
and each, an “Instalment”); and

 

“Reduction Date”
means, in relation to Tranche B, 30 September 2015 and each subsequent date every three months thereafter and the last Reduction
Date (the “Final Reduction Date”) shall fall on the Final Maturity Date.

 

		8.2	Repayment Dates

 

In the case of:

 

		(a)	Tranche A, the Borrowers shall repay the first Instalment in respect of that Tranche on 30 September
2015, each subsequent Instalment (including the last Instalment) in respect of that Tranche shall be repaid at three-monthly intervals
thereafter and the Balloon Instalment shall be repaid on the Final Maturity Date; and

 

		(b)	Tranche B, the Borrowers shall repay:

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		(i)	Tranche B by the amounts calculated in accordance with Clause 8.1(b)(iv) on each Reduction Date;

 

		(ii)	any outstanding balance of Tranche B on the Final Reduction Date; and

 

		(iii)	each Advance under Tranche B in full on the last day of an Interest Period in respect of that Advance,
unless the Borrowers select a further Interest Period for that Advance in accordance with Clause 6.2 Provided that the Borrowers
shall not be permitted to select such a further Interest Period if an Event of Default has occurred and is continuing and shall
then be obliged to repay such Advance on the last day of its then current Interest Period.

 

		8.3	Final Maturity Date

 

On the Final Maturity Date, the Borrowers shall
additionally pay to the Agent for the account of the Creditor Parties all other sums then accrued or owing under any Finance Document.

 

		8.4	Voluntary prepayment

 

Subject to the following conditions, the Borrowers
may prepay the whole or any part of the Loan on any day.

 

		8.5	Conditions for voluntary prepayment

 

The conditions referred to in Clause 8.4 are
that:

 

		(a)	a partial prepayment shall be in an amount of (not less than) the lesser of (i) $1,000,000 and
(ii) the outstanding balance of the Tranche to be prepaid;

 

		(b)	the Agent has received from the Borrowers at least 5 Business Days’ prior written notice
specifying:

 

		(i)	the amount to be prepaid and the date on which the prepayment is to be made; and

 

		(ii)	whether such prepayment will be applied against a specific Tranche, in which case the Borrowers
will specify the Tranche against which that prepayment shall be applied. A failure by the Borrowers to make such a designation
shall result in the prepayment being applied against the Loan in accordance with Clause 8.10(a) but without the option included
within the proviso of that Clause; and

 

		(c)	if a prepayment is not made on the last day of an Interest Period, Clause 8.9 shall apply to such
prepayment.

 

		8.6	Effect of notice of prepayment and cancellation notice

 

A prepayment notice or a cancellation notice
may not be withdrawn or amended without the consent of the Agent, given with the authorisation of the Majority Lenders (such consent
not to be unreasonably withheld or delayed), and the amount specified in:

 

		(a)	a prepayment notice shall become due and payable by the Borrowers on the date for prepayment specified
in that prepayment notice; and

 

		(b)	a cancellation notice shall be permanently cancelled on the date specified in the cancellation
notice and the Borrowers shall pay any commitment fee accrued under Clause 20.1(b) in respect of the amount cancelled up until
the date of cancellation.

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		8.7	Notification of notice of prepayment

 

The Agent shall notify the Lenders promptly
upon receiving a prepayment notice or a cancellation notice.

 

		8.8	Mandatory prepayment and cancellation of Commitments

 

The Borrowers shall be obliged to prepay the
Relevant Amount:

 

		(a)	if a Ship is sold, on or before the date on which the sale is completed by delivery of that Ship
to its buyer;

 

		(b)	if a Ship becomes a Total Loss, on the earlier of the date falling 180 days after the Total Loss
Date (or such later date as the Agent (acting on the instructions of the Lenders) may agree) and the date of receipt by the Security
Trustee of the proceeds of insurance relating to such Total Loss; or

 

		(c)	if a Change of Control occurs, within 10 Business Days of the Agent’s notice (which notice
shall be issued promptly by the Agent upon being advised, or becoming aware, of the occurrence of a Change of Control in the absence
of any contrary instructions of the Majority Lenders), and additionally, any undrawn balance of the Total Commitments which has
not been previously cancelled shall be automatically cancelled on the date on which such Change of Control has occurred and the
Lenders’ several obligations to make their respective Commitments in relation to that part of the Total Commitments available
to the Borrowers shall automatically terminate.

 

In this Clause 8.8:

 

“Change of Control”
means:

 

		(a)	if Costamare Inc. ceases to wholly own Costamare Partners;

 

		(b)	if Costamare Partners ceases to be the general partner of the Guarantor; or

 

		(c)	if Costamare Partners ceases to control (whether by way of ownership of shares, proxy, agency,
contract or otherwise) the appointment of the majority of the board of directors of the Guarantor.

 

“Relevant Amount”
means:

 

		(a)	in the case of the circumstances referred to in Clauses 8.8(a) and 8.8(b), the aggregate of:

 

		(i)	Tranche A multiplied by a fraction whose:

 

		(A)	numerator is the Market Value of the Mortgaged Ship being sold or which has become a Total Loss
on the date on which such sale is completed or, as the case may be, the date on which the Total Loss occurred; and

 

		(B)	denominator is the aggregate Market Value of the Mortgaged Ships (including the Mortgaged Ship
sold or lost) on the date on which that Ship is sold or becomes a Total Loss; and

 

		(ii)	an amount (if any) required to ensure that Tranche B does not, after the application of the prepayment
made pursuant to this Clause 8.8, exceed the then applicable Maximum Available Amount; and

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		(b)	in the case of the circumstances referred to in Clause 8.8(c), the Loan.

 

		8.9	Amounts payable on prepayment

 

A prepayment shall be made together with accrued
interest (and any other amount payable under Clause 21 or otherwise) in respect of the amount prepaid and, if the prepayment is
not made on the last day of an Interest Period together with any sums payable under Clause 21.1(b) but without premium or penalty.

 

		8.10	Application of partial prepayment and cancellation

 

Each:

 

		(a)	partial prepayment made pursuant to Clauses 5.14, 8.4, 8.8, 8.13, 15.1, 19.2, 23.3 and 24.6, shall
be applied proportionately between each Tranche:

 

		(i)	in the case of Tranche A, pro rata against the Instalments of that Tranche which are at the time
being outstanding and the Balloon Instalment; and

 

		(ii)	in the case of Tranche B, in reduction of that Tranche,

 

Provided that the Borrowers may, at
their option, request that a prepayment made in accordance with Clauses 8.4 (in circumstances where the Borrowers have made a designation
pursuant to Clause 8.5(b)(ii)) or 8.13 be applied against either Tranche in which case such amount shall be applied:

 

		(A)	to the extent such prepayment is to be applied against Tranche A, against the Instalments of that
Tranche which are outstanding at that time and the Balloon Instalment, pro rata or in direct chronological order of maturity or
in inverse chronological order of maturity, at the Borrowers’ option; and

 

		(B)	to the extent such prepayment is to be applied against Tranche B, in reduction thereof; and

 

		(b)	partial cancellation made pursuant to Clause 8.11 shall be applied proportionately between each
Tranche in the manner set out in Clause 8.10(a).

 

		8.11	Optional facility cancellation

 

The Borrowers shall be entitled, upon giving
to the Agent not less than 5 Business Days prior written notice, to cancel, in whole or in part, and, if in part, by an amount
of not less than $1,000,000 of the undrawn balance of the Total Commitments. Upon such cancellation taking effect on expiry of
a cancellation notice the several obligations of the Lenders to make their respective Commitments available in relation to the
portion of the Total Commitments to which such cancellation notice relates shall terminate.

 

		8.12	Unwinding of Designated Transactions

 

On or prior to any prepayment of the Loan under
this Clause 8 (but only to the extent there remain any sale or, as the case may be, insurance proceeds following such prepayment)
or any other provision of this Agreement, the Borrowers shall wholly or partially reverse, offset, unwind or otherwise terminate
one or more of the continuing Designated Transactions to the extent necessary to ensure that the notional principal amount of the
continuing Designated Transactions thereafter remaining does not and will not in the future (taking into account the scheduled
amortisation) exceed the amount of the Loan as reducing from time to time thereafter pursuant to Clause 8.1.

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		8.13	Prepayment of swap benefit

 

If a Designated Transaction is terminated in
circumstances where a Swap Bank would be obliged to pay an amount to the Borrowers under the relevant Master Agreement, the Borrowers
hereby agree that such payment shall, if an Event of Default is continuing at that time, be applied in prepayment of the Loan in
accordance with Clause 8.10(a) and authorises the Swap Bank to pay such amount to the Agent for such purpose.

 

		8.14	No reborrowing

 

In the case of:

 

		(a)	Tranche A, no amount repaid, prepaid or cancelled may be reborrowed; and

 

		(b)	Tranche B:

 

		(i)	an amount prepaid or cancelled in respect of that Tranche pursuant to Clauses 5.14, 8.8, 19.2,
23.3 or 24.6 may not be reborrowed; and

 

		(ii)	an amount prepaid in respect of that Tranche pursuant to Clause 8.4, 8.13 or 15.1 may, subject
to the other terms of this Agreement, be reborrowed.

 

		8.15	Release of Borrower

 

As soon as reasonably practicable after a prepayment
has been made pursuant to Clause 8.8 following the sale or the Total Loss of a Mortgaged Ship, the Agent will, subject to being
indemnified to its satisfaction against the cost of doing so, release the Borrower owning that Ship from its obligations under
the Finance Documents to which it is a party and reassign to that Borrower without any warranty, representation, covenant or other
recourse any rights which had been assigned by that Borrower under the Finance Documents Provided that at the time of the
release and reassignment no Event of Default is continuing nor will result from such release and reassignment.

 

		8.16	Right of cancellation in relation to a Defaulting Lender

 

		(a)	If any Lender becomes a Defaulting Lender, the Borrowers may, at any time whilst the Lender continues
to be a Defaulting Lender, give the Agent 5 Business Days’ notice of cancellation of the undrawn Commitment of that Lender;

 

		(b)	On the notice referred to in paragraph (a) above becoming effective, the undrawn Commitment of
the Defaulting Lender shall immediately be reduced to zero; and

 

		(c)	The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above,
notify all the Lenders.

 

Conditions
Precedent

 

		9.1	Documents, fees and no default

 

Each Lender’s obligation to contribute
to an Advance is subject to the following conditions precedent:

 

		(a)	that, on or before the date of this Agreement, the Agent receives:

 

		(i)	the documents described in Part A of Schedule 5 in form and substance satisfactory to the Agent
and its lawyers; and

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		(ii)	payment of the fees referred to in the Fee Letter which are expressed to be payable on or before
the date of this Agreement; and

 

		(iii)	payment of any expenses payable pursuant to Clause 20.2 which are due and payable on the date hereof;

 

		(b)	that, on or before the Drawdown Date in respect of Tranche A and on or before the first Drawdown
Date in respect of Tranche B, the Agent receives:

 

		(i)	the documents described in Part B of Schedule 5 in form and substance satisfactory to it and its
lawyers; and

 

		(ii)	payment of the fees referred to in the Fee Letter which are expressed to be payable on or before
the Drawdown Date in respect of Tranche A and on or before the first Drawdown Date in respect of Tranche B; and

 

		(iii)	payment of any commitment fee payable pursuant to Clause 20.1(b); and

 

		(iv)	payment of any expenses payable pursuant to Clause 20.2 which are due and payable on that Drawdown
Date;

 

		(c)	that, on or before each of the other Drawdown Dates in respect of Tranche B, the Agent receives:

 

		(i)	payment of the fees referred to in the Fee Letter which are expressed to be payable on or before
the relevant Drawdown Date;

 

		(ii)	payment of any commitment fee payable pursuant to Clause 20.1(b); and

 

		(iii)	payment of any expenses payable pursuant to Clause 20.2 which are due and payable on that date;

 

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

 

		(i)	no Event of Default or Potential Event of Default has occurred and is continuing or would result
from the borrowing of the Advance which relates to that Drawdown Notice;

 

		(ii)	the representations and warranties in Clause 10.1 and those of each Borrower or any Security Party
which are set out in the other Finance Documents would be true and not misleading if repeated on each of those dates with reference
to the circumstances then existing (other than in the case of the representation and warranty set out in Clause 10.18 which would
be true and not misleading if repeated on the first Drawdown Date to occur under this Agreement with reference to the circumstances
then existing); and

 

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

 

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

    	36

    	

    

		9.2	Waiver of conditions precedent

 

The conditions specified in this Clause 9 are
inserted solely for the benefit of the Lenders and may be waived by the Agent (acting on the instructions of the Majority Lenders)
in whole or in part and with or without conditions.

 

Representations
and Warranties

 

		10.1	General

 

Each Borrower represents and warrants to each
Creditor Party as follows, subject always to any qualifications contained in the legal opinions obtained by the Agent pursuant
to the provisions of Clause 9.

 

		10.2	Status

 

Each Borrower is duly incorporated and validly
existing and in good standing under the laws of the Republic of Liberia.

 

		10.3	Corporate power

 

Each Borrower has the corporate capacity, and
has taken all corporate action and obtained all consents necessary for it:

 

		(a)	to execute the Underlying Documents to which it is a party;

 

		(b)	to execute the Finance Documents to which it is a party; and

 

		(c)	to borrow under this Agreement, to enter into Designated Transactions under each Master Agreement
and to make all the payments contemplated by, and to comply with, those Finance Documents.

 

		10.4	Consents in force

 

All the consents referred to in Clause 10.3
remain in force and nothing has occurred which makes any of them liable to revocation.

 

		10.5	Legal validity; effective Security Interests

 

The Finance Documents and the Underlying Documents
to which each Borrower is a party, do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration
as provided for in the Finance Documents):

 

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

 

		(b)	in the case of the Finance Documents (or any of them) create, where applicable, legal, valid and
binding Security Interests enforceable in accordance with their respective terms over all the assets to which they, by their terms,
relate,

 

subject to any relevant insolvency laws affecting
creditors’ rights generally.

 

		10.6	No third party Security Interests

 

Without limiting the generality of Clause 10.5,
at the time of the execution and delivery of each Finance Document:

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

 

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

 

		10.7	No conflicts

 

The execution by each Borrower of each Finance
Document and each Underlying Document to which that Borrower is a party, and the borrowing by the Borrowers of the Loan, and its
compliance with each Finance Document and each Underlying Document to which that Borrower is a party will not involve or lead to
a contravention of:

 

		(a)	any law or regulation; or

 

		(b)	the constitutional documents of that Borrower; or

 

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

 

		10.8	No withholding taxes

 

All payments which each Borrower is liable
to make under the Finance Documents may be made without deduction or withholding for or on account of any tax payable under any
law of any Pertinent Jurisdiction.

 

		10.9	No default

 

No Event of Default has occurred and is continuing.

 

		10.10	Information

 

All information which has been provided in
writing by or on behalf of any Borrower or any Security Party to the Agent in connection with any Finance Document satisfied the
requirements of Clause 11.4; all audited and unaudited accounts which have been so provided satisfied the requirements of Clause
11.6.

 

		10.11	No litigation

 

No legal or administrative action (including,
but not limited to, investigative proceedings) involving any Borrower, the Guarantor or any other Security Party (including action
relating to any breach of the ISM Code or the ISPS Code) has been commenced or taken which, would be likely to have a material
adverse effect on that Borrower’s or any Security Party’s financial position, state of affairs or prospects in light
of which there is a significant risk that the Guarantor or any Borrower or any other Security Party is, or will later become unable
to discharge its liabilities under the Finance Documents as they fall due.

 

		10.12	Validity and completeness of Underlying Documents

 

		(a)	The copies of each Underlying Document delivered to the Agent before the date of this Agreement
are true and complete copies (and include all amendments or additions to that Underlying Document made on or before the date of
this Agreement);

 

		(b)	each Underlying Document constitutes valid, binding and enforceable obligations of the Borrower
which is a party thereto in accordance with its terms; and

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		(c)	no party to any Underlying Document (in the case of any such party other than a Borrower, to the
best of the Borrowers’ knowledge), is in default under that Underlying Document.

 

		10.13	Compliance with certain undertakings

 

At the date of this Agreement, the Borrowers
are in compliance with Clauses 11.2, 11.4, 11.8 and 11.12.

 

		10.14	Taxes paid

 

Each Borrower has paid all taxes applicable
to, or imposed on or in relation to that Borrower and its business.

 

		10.15	No money laundering

 

Without prejudice to the generality of Clause
2.3, in relation to the borrowing by the Borrowers of the Loan, the performance and discharge of each Borrower’s obligations
and liabilities under the Finance Documents, and the transactions and other arrangements affected or contemplated by the Finance
Documents to which that Borrower is a party, each Borrower confirms (i) that it is acting for its own account; (ii) that it will
use the proceeds of the Loan for the Borrowers’ and, as the case may be and subject always to Clause 12.3(d), Group’s
benefit, under its full responsibility and exclusively for the purposes specified in this Agreement; and (iii) that the foregoing
will not involve or lead to a contravention of any law, official requirement or other regulatory measure or procedure implemented
to combat “money laundering” (as defined in Article 1 of Directive 2005/60/EC of the European Parliament and of the
Council).

 

		10.16	Solvency

 

Each Borrower is not insolvent nor is it in
voluntary arrangement, liquidation or administration or subject to any other insolvency procedure, and no receiver, administrative
receiver, administrator, liquidator, trustee or analogous officer has been appointed in respect of that Borrower or all or any
part of its assets (and, for the purposes of this Clause 10.16, the Borrower will be deemed insolvent if it is unable to pay its
debts within the meaning of s.123 of the Insolvency Act 1986).

 

		10.17	Sanctions

 

		(a)	Each Borrower, the Guarantor, each Approved Manager, the other members of the Group, their joint
ventures, their respective directors, and, to the best of their knowledge, their officers, employees, agents or representatives
have been and are in compliance with Sanctions Laws;

 

		(b)	none of the Borrowers, the Guarantor or any other member of the Group, their joint ventures, and
their respective directors, officers, employees, agents or representatives:

 

		(i)	is a Restricted Party, or is involved in any transaction through which it is likely to become a
Restricted Party; or

 

		(ii)	is subject to or involved in any inquiry, claim, action, suit, proceeding or investigation against
it with respect to Sanctions Laws by any Sanctions Authority.

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		10.18	Material adverse change

 

There has been no material adverse change in
the financial condition of the Group which will affect the ability of any Borrower and/or any Security Party to discharge any of
their respective obligations and liabilities under the Loan Agreement and the other Finance Documents in a timely manner.

 

		10.19	Repetition

 

The representations and warranties in this
Clause 10 shall be deemed to be repeated by the Borrowers on the date of each Drawdown Notice (except in the case of the representation
and warranty in Clause 10.18 which will be deemed to be repeated only on the first Drawdown Date to occur under this Agreement).

 

General
Undertakings

 

		11.1	General

 

Each Borrower undertakes with each Creditor
Party to comply with the following provisions of this Clause 11 at all times during the Security Period except as the Agent may,
with the authorisation of the Majority Lenders (in the case of Clause 11.10, the Lenders), otherwise permit.

 

		11.2	Title; negative pledge and pari passu ranking

 

Each Borrower will:

 

		(a)	hold the legal title to, and own the entire beneficial interest in its Ship, her Insurances and
Earnings, free from all Security Interests and other interests and rights of every kind (other than Permitted Security Interests);
and

 

		(b)	procure that its liabilities under the Finance Documents to which it is a party do and will rank
at least pari passu with all its other present and future unsecured liabilities, except for liabilities which are mandatorily preferred
by law.

 

		11.3	No disposal of assets

 

No Borrower will transfer, lease or otherwise
dispose of:

 

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

 

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

 

but paragraph (a) does not apply to (i) any
charter of a Mortgaged Ship in which case Clause 14.13 applies and (ii) any sale of a Mortgaged Ship, provided the required prepayment
in respect of that Ship is made in accordance with Clause 8.8.

 

		11.4	Information provided to be accurate

 

All financial and other information which is
provided in writing by or on behalf of any Borrower under or in connection with any Finance Document will be true and not misleading
and will not omit any material fact or consideration.

 

		11.5	Provision of financial statements

 

Each Borrower will send or procure these are
sent to the Agent:

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		(a)	as soon as possible, but in no event later than 180 days after the end of each Financial Year of
the Guarantor (commencing with the Financial Year ending on 31 December 2015), the audited consolidated accounts of the Group for
that Financial Year; and

 

		(b)	as soon as possible, but in no event later than 90 days after the end of each 3-month period in
each Financial Year of the Guarantor ending on 31 March, 30 June and 30 September, the unaudited consolidated accounts of the Group
for that 3-month period.

 

		11.6	Form of financial statements

 

All accounts (audited and unaudited) delivered
under Clause 11.5 will:

 

		(a)	be prepared in accordance with all applicable laws and USGAAP consistently applied;

 

		(b)	give a true and fair view of the state of affairs of the Group at the date of those accounts and
of its profit for the period to which those accounts relate; and

 

		(c)	fully disclose or provide for all significant liabilities of the Group.

 

		11.7	Consents

 

Each Borrower will maintain in force and promptly
obtain or renew, and will promptly following the Agent’s request send certified copies to the Agent of, all consents required:

 

		(a)	for that Borrower to perform all material obligations under any Finance Document or any Underlying
Document to which it is a party;

 

		(b)	for the validity or enforceability of any Finance Document or Underlying Document to which it is
a party; and

 

		(c)	for that Borrower to continue to own and operate its Ship,

 

and that Borrower will comply with the terms
of all such consents unless a waiver in relation thereto has been obtained.

 

		11.8	Maintenance of Security Interests

 

Each Borrower will:

 

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

 

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

 

		11.9	Notification of litigation

 

Each Borrower will provide the Agent with details
of any legal or administrative action involving any Borrower, any Security Party, any Approved Manager (subject to such action,
in the case of that Approved Manager, being connected to any of the Ships, the Borrowers, the Earnings or the Insurances in respect
of that Ship) or any Ship, her Earnings or her Insurances as soon as such action is instituted, unless it is clear that the legal
or administrative action cannot be considered material in the context of any Finance Document

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and Provided always that a legal
or administrative action for a sum or sums aggregating $3,000,000 in the case of the Guarantor and $1,000,000 in the case of any
other Security Party or an Approved Manager, shall not be considered material in the context of any Finance Document.

 

		11.10	No amendment to Approved Charters

 

No Borrower will agree to any material amendment
or supplement to, or waive or fail to enforce, any Approved Charter to which it is a party or any of their respective provisions
and each Borrower undertakes to promptly notify the Agent of any material amendment or supplement to any Approved Charter.

 

In this Clause 11.10 “material amendment
or supplement” means any amendment or supplement to that Approved Charter contemplating a change which would, in the
reasonable opinion of the Agent, adversely affect the Borrowers’ ability to discharge their liabilities under the Finance
Documents as they fall due.

 

		11.11	Principal place of business

 

Each Borrower will keep its corporate documents
and records, at the address stated at Clause 28.2(a); and that Borrower will not establish, or do anything as a result of which
it would be deemed to have, a place of business in England and Wales or the United States of America.

 

		11.12	Notification of default

 

Each Borrower will notify the Agent as soon
as that Borrower becomes aware of the occurrence of an Event of Default which is continuing and will keep the Agent fully up-to-date
with all developments while such Event of Default is continuing.

 

		11.13	Provision of further information

 

Each Borrower will:

 

		(a)	as soon as practicable after receiving the request, provide the Agent with any additional financial
or other information relating:

 

		(i)	to any Borrower, Security Party, any Ship, her Earnings or her Insurances; or

 

		(ii)	to any other matter relevant to, or to any provision of, a Finance Document,

 

which may be reasonably requested by the Agent,
the Security Trustee or any Lender at any time;

 

		(b)	promptly upon becoming aware of them, provide the Agent with the details of any inquiry, claim,
action, suit, proceeding or investigation pursuant to Sanctions Laws by any Sanctions Authority against any Borrower, the Guarantor,
any of its other direct or indirect subsidiaries, an Approved Manager and any other member of the Group, any of their joint ventures
or any of their respective directors, officers, employees, agents or representatives, as well as information on what steps are
being taken with regards to answer or oppose such;

 

		(c)	promptly upon becoming aware that a Borrower, the Guarantor, any of its other direct or indirect
subsidiaries, an Approved Manager, any other member of the Group, any of their joint ventures or any of their respective directors,
officers, employees, agents or representatives has become or is likely to become a Restricted Party, notify the Agent accordingly;
and

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		(d)	promptly upon becoming aware of it, notify the Agent of the occurrence of a Change of Control.

 

		11.14	Provision of copies and translation of documents

 

Each Borrower will supply the Agent with a
sufficient number of copies of the documents referred to above to provide 1 copy for each Creditor Party; and if the Agent so requires
in respect of any of those documents, that Borrower will provide a certified English translation prepared by a translator approved
by the Agent.

 

		11.15	Use of proceeds

 

No proceeds of any Advance shall be made available,
directly or indirectly, to or for the benefit of a Restricted Party nor shall they otherwise be applied in a manner or for a purpose
prohibited by Sanctions Laws including, but not limited to, in using any benefits of any money, proceeds or services provided by,
or received from, the Lenders under this Agreement, in business activities (including, but not limited to, entering into any ship
finance acquisition agreement, ship refinancing agreement or charter agreement relating to a vessel, project or asset) subject
to Sanctions Laws or related to a Restricted Country and/or a Restricted Party.

 

		11.16	Sanctions

 

Each Borrower shall ensure that none of the
Borrowers, the Guarantor, any of its other subsidiaries, neither Approved Manager, any other member of the Group, their respective
directors, officers, employees, agents or representatives or any other persons acting on any of their behalf, is or will become
a Restricted Party.

 

		11.17	No other liabilities or obligations to be incurred

 

No Borrower will incur any liability or obligation
except:

 

		(a)	liabilities and obligations under the Finance Documents and the Underlying Documents to which it
is or, as the case may be, will be a party; and

 

		(b)	liabilities or obligations reasonably incurred in the normal course of its business of trading,
operating and chartering, maintaining and repairing the Ship owned by it;

 

		(c)	liabilities or obligations under guarantees (i) from time to time required in the ordinary course
by any protection and indemnity or war risks association with which a Ship is entered or (ii) required to release a Ship from any
arrest, detention, attachment or levy or required for the salvage of a Ship or (iii) issued in the ordinary course of its business
not exceeding, in aggregate, the amount of $500,000 (or the equivalent in any other currency) in any calendar year; and

 

		(d)	liabilities and obligations reasonably incurred under any shareholder loan subject to the Agent
being satisfied that no principal or interest payments shall be made in respect of such Loans whilst an Event of Default has occurred
and is continuing.

 

		11.18	“Know your customer” checks

 

If:

 

		(a)	the introduction of or any change in (or in the interpretation, administration or application of)
any law or regulation made after the date of this Agreement;

 

		(b)	any change in the status of any Borrower or any Security Party after the date of this Agreement;
or

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		(c)	an assignment or transfer by a Lender of any of its rights and obligations under this Agreement
to a party that is not a Lender prior to such assignment or transfer,

 

obliges the Agent or any Lender (or, in the
case of paragraph (c), any new Lender) to comply with “know your customer” or similar identification procedures in
circumstances where the necessary information is not already available to it, each Borrower shall promptly upon the request of
the Agent or the Lender concerned supply, or procure the supply of, such documentation and other evidence as is reasonably requested
by the Agent (for itself or on behalf of any Lender) or the Lender concerned (for itself or, in the case of the event described
in paragraph (c), on behalf of any new Lender) in order for the Agent, or the Lender concerned or, in the case of the event described
in paragraph (c), any new Lender to carry out and be satisfied it has complied with all necessary “know your customer”
or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.
To the extent that Borrower can satisfy any request of the Agent or a Lender under this Clause 11.18 by referring the Agent, or,
as the case may be, the Lender concerned to its website or its filing with the U.S. Securities and Exchange Commission, the Agent
and each other Creditor Party agree that that Borrower shall have satisfied its obligations under this Clause 11.18 upon directing
such Creditor Party in this way.

 

		11.19	Inspection of records

 

Upon the request of the Agent, the Borrowers
shall provide the Agent and any of its representatives, professional advisors and contractors with access to, and permit inspection
of, books and records of each Borrower and the Guarantor, in each case, at reasonable times and upon reasonable notice.

 

Corporate
Undertakings

 

		12.1	General

 

Each Borrower also undertakes with each Creditor
Party to comply with the following provisions of this Clause 12 at all times during the Security Period except as the Agent may,
with the authorisation of the Majority Lenders, otherwise permit.

 

		12.2	Maintenance of status

 

Each Borrower will maintain its separate corporate
existence and remain in good standing under the laws of Liberia or any other country to which it may re-domicile Provided that
the Finance Documents and the rights and obligations of the Creditor Parties thereunder are not affected by such re-domiciliation
and the Agent receives favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of the
country in which the relevant Borrower is to be re-domiciled.

 

		12.3	Negative undertakings

 

No Borrower will:

 

		(a)	change the nature of its business; or

 

		(b)	pay any dividend or make any other form of distribution at any time when an Event of Default has
occurred and is continuing or will result from the payment of any dividend or the making of any other form of distribution;

 

		(c)	commence any action or procedure to effect any form of redemption, purchase or return of share
capital at any time while an Event of Default has occurred and is continuing or will result from any form of redemption, purchase
or return of share capital; or

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

 

		(i)	a person who is directly or indirectly interested in the Borrower’s share or loan capital;
or

 

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

 

or enter into any transaction with or involving
such a person or company on terms which are, in any respect, less favourable to that Borrower than those which it could obtain
in a bargain made at arms’ length Provided that the Borrowers may on-lend any Advance under Tranche B to the Guarantor
subject to:

 

	 	(i)	that Advance being used for the Group’s general corporate purposes; and

 

		(ii)	the rights of the Borrowers under such loan being fully subordinated in a manner acceptable to
the Agent to the rights of the Creditor Parties under the Finance Documents on the date on which such loan is made available; or

 

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

 

		(f)	issue, allot or grant any person a right to any of its shares or reduce its share capital;

 

		(g)	acquire any shares or other securities other than US or UK Treasury bills and certificates of deposit
issued by major North American or European banks, or enter into any transaction in a derivative other than:

 

		(i)	any Designated Transaction; and

 

		(ii)	any transaction in a derivative with a financial institution (other than the Swap Banks) for the
purpose referred to in paragraph (b) of the definition of “Designated Transaction” Provided that:

 

		(A)	the rights of such financial institution have been fully subordinated in writing or otherwise in
a manner acceptable to the Agent to the rights of the Creditor Parties under the Finance Documents; and

 

		(B)	no Borrower or any other Security Party (other than the Guarantor) shall create any form of Security
Interest over any of its assets nor provide a guarantee in respect of the liabilities of the relevant Borrower or Borrowers under
such transaction; or

 

		(h)	enter into any form of amalgamation, merger or de-merger or any form of reconstruction or reorganisation,
unless such merger or reconstruction or reorganisation will not result in an Event of Default and that Borrower will be the surviving
or continuing entity.

 

		12.4	Hedging of interest rate risks

 

The Borrowers may, from time to time, enter
into Designated Transactions with a Swap Bank for the purpose of hedging all or the major part of the interest rate risk under
this Agreement throughout the Security Period. The Borrower shall discuss with the Swap Bank any hedging strategy for the Loan
(or any part thereof) and shall give the Swap Bank a right of first refusal to quote for all hedging related services.

 

Insurance

 

		13.1	General

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Each Borrower also undertakes with each Creditor
Party to comply with the following provisions of this Clause 13 at all times during the Security Period (after the Drawdown Date
of Tranche A) except as the Agent may, with the authorisation of the Majority Lenders, otherwise permit.

 

		13.2	Maintenance of obligatory insurances

 

Each Borrower shall keep the Ship owned by
it insured at the expense of that Borrower against:

 

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

 

		(b)	war risks (including acts of terrorism and piracy);

 

		(c)	protection and indemnity risks (including, without limitation, pollution risks) for the full tonnage
of that Ship as an entry with a protection and indemnity association being a member of the International Group of Protection and
Indemnity Clubs; and

 

		(d)	any other risks against, or additional insurance (other than loss of hire or political risks),
which the Security Trustee considers, having regard to practices and other circumstances prevailing at the relevant time, it would
in the opinion of the Security Trustee be reasonable for that Borrower to insure or to effect and which are specified by the Security
Trustee by notice to that Borrower.

 

		13.3	Terms of obligatory insurances

 

Each Borrower shall effect such insurances:

 

		(a)	in Dollars;

 

		(b)	in the case of fire and usual marine risks and war risks, in an amount on an agreed value basis
at least the greater of (i) the Market Value of the Ship owned by that Borrower and (ii) an amount, which when aggregated with
the amount for which the other Mortgaged Ships at the relevant time are insured pursuant to this Agreement, is equal to at least
120 per cent. of the Loan (in the case of that Ship, the “Agreed Insured Value”);

 

		(c)	in the case of hull and machinery insurance, in an amount on an agreed value basis at least 66.6
per cent. of the Agreed Insured Value of that Ship with the remainder of that Agreed Insured Value being covered by hull interest
and freight interest covers;

 

		(d)	in the case of oil pollution liability risks, for an aggregate amount equal to the highest level
of cover from time to time available under basic protection and indemnity club entry from a member of the International Group of
Protection and Indemnity Clubs;

 

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

 

		(f)	on approved terms (and, for the time being (and until such time as the Agent may advise otherwise),
the standard insurance terms arranged by the Approved Manager as at the date of this Agreement for vessels managed by it are considered
approved for the purpose of this Clause 13); and

 

		(g)	through approved brokers and with approved insurance companies and/or underwriters or, in the case
of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations, in each
case if other than the Swedish Club,

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Provided that any
approval required under this Clause 13.3 shall not be unreasonably withheld or delayed and Provided further that
any cover on Nordic terms placed with or under the lead of the Swedish Club shall be deemed approved by the Agent.

 

		13.4	Further protections for the Creditor Parties

 

In addition to the terms set out in Clause
13.3, each Borrower shall and shall procure that:

 

		(a)	subject always to paragraph (b), name that Borrower as the sole named assured unless the interest
of every other named assured is limited:

 

		(i)	in respect of any obligatory insurances for hull and machinery and war risks;

 

		(A)	to any provable out-of-pocket expenses that it has incurred and which form part of any recoverable
claim on underwriters; and

 

		(B)	to any third party liability claims where cover for such claims is provided by the policy (and
then only in respect of discharge of any claims made against it); and

 

		(ii)	in respect of any obligatory insurances for protection and indemnity risks, to any recoveries it
is entitled to make by way of reimbursement following discharge of any third party liability claims made specifically against it;

 

and every other named assured has undertaken
in writing to the Security Trustee (in such form as it requires) that any deductible shall be apportioned between that Borrower
and every other named assured in proportion to the gross claims made or paid by each of them and that it shall do all things necessary
and provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any
time become payable in respect of the obligatory insurances;

 

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

 

		(c)	unless already named as an additional assured, name the Security Trustee as loss payee with such
directions for payment as the Security Trustee may specify;

 

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

 

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

 

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

 

		13.5	Renewal of obligatory insurances

 

Each Borrower shall:

 

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

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

 

		(ii)	obtain the Security Trustee’s approval to the matters referred to in paragraph (i);

 

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

 

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

 

		13.6	Copies of policies; letters of undertaking

 

Each Borrower shall ensure that all approved
brokers provide the Security Trustee with pro forma copies of all policies relating to the obligatory insurances which they are
to effect or renew and of a letter or letters or undertaking in a form which is customary in major marine insurance markets.

 

		13.7	Copies of certificates of entry

 

Each Borrower shall ensure that any protection
and indemnity and/or war risks associations in which the Ship owned by that Borrower is entered provides the Security Trustee with:

 

		(a)	a certified copy of the certificate of entry for that Ship;

 

		(b)	a letter or letters of undertaking in the form usually issued by such protection and indemnity
and/or war risks association; and

 

		(c)	a certified copy of each certificate of financial responsibility for pollution by oil or other
Environmentally Sensitive Material issued by the relevant certifying authority in relation to that Ship.

 

		13.8	Deposit of original policies

 

Each Borrower shall ensure that all policies
relating to obligatory insurances effected by it are deposited with the approved brokers through which the insurances are effected
or renewed.

 

		13.9	Payment of premiums

 

Each Borrower shall punctually pay all premiums
or other sums payable in respect of the obligatory insurances effected by it and produce all relevant receipts when so required
by the Security Trustee unless contested in good faith so long as it does not, in the reasonable opinion of the Security Trustee,
affect the relevant obligatory insurances effected.

 

		13.10	Guarantees

 

Each Borrower shall ensure that any guarantees
required by a protection and indemnity or war risks association are promptly issued and remain in full force and effect.

 

		13.11	Compliance with terms of insurances

 

Each Borrower shall not do nor omit to do (nor
permit to be done or not to be done) any act or thing which would or might render any obligatory insurance invalid, void, voidable
or

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unenforceable or render any sum payable under
an obligatory insurance repayable in whole or in part; and, in particular:

 

		(a)	it shall take all necessary action and comply with all requirements which may from time to time
be applicable to the obligatory insurances, and ensure that the obligatory insurances are not made subject to any exclusions or
qualifications to which the Security Trustee has not given its prior approval;

 

		(b)	it shall not make any changes relating to the classification or an Approved Classification Society
or manager or operator of the Ship owned by that Borrower approved by the underwriters of the obligatory insurances;

 

		(c)	it shall make (and promptly supply copies to the Agent of) all quarterly or other voyage declarations
which may be required by the protection and indemnity risks association in which that Ship is entered to maintain cover for trading
to the United States of America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990 or any other
applicable legislation); and

 

		(d)	it shall not employ its Ship, nor allow it to be employed, otherwise than in conformity with the
terms and conditions of the obligatory insurances, without first obtaining the consent of the insurers and complying with any requirements
(as to extra premium or otherwise) which the insurers specify.

 

		13.12	Alteration to terms of insurances

 

Each Borrower shall neither make nor agree
to any alteration to the terms of any obligatory insurance nor waive any right relating to any obligatory insurance other than
where alterations are mandatory to strictly comply with international conventions or Sanctions Laws.

 

		13.13	Settlement of claims

 

Each Borrower shall not settle, compromise
or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty, and shall do all things necessary and
provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any time
become payable in respect of the obligatory insurances.

 

		13.14	Provision of copies of communications

 

Following the occurrence of an Event of Default
and while the same is continuing, each Borrower shall provide the Security Trustee, at the time of each such communication, copies
of all written communications between that Borrower and:

 

		(a)	the approved brokers;

 

		(b)	the approved protection and indemnity and/or war risks associations; and

 

		(c)	the approved insurance companies and/or underwriters, which relate directly or indirectly to:

 

		(i)	that Borrower’s obligations relating to the obligatory insurances including, without limitation,
all requisite declarations and payments of additional premiums or calls; and

 

		(ii)	any credit arrangements made between that Borrower and any of the persons referred to in paragraphs
(a) or (b) relating wholly or partly to the effecting or maintenance of the obligatory insurances.

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		13.15	Provision of information

 

In addition, each Borrower shall
promptly provide the Security Trustee (or any persons which it may designate) with any information which the Security Trustee (or
any such designated person) reasonably requests for the purpose of:

 

		(a)	obtaining or preparing (acting on the instructions of the Majority Lenders) any report from an
independent marine insurance broker as to the adequacy of the obligatory insurances effected or proposed to be effected; and/or

 

		(b)	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.16 or dealing
with or considering any matters relating to any such insurances,

 

and that Borrower shall, forthwith
upon demand, indemnify the Security Trustee in respect of all reasonable and documented fees and other expenses incurred by or
for the account of the Security Trustee in connection with any such report as is referred to in paragraph (a).

 

		13.16	Mortgagee’s interest insurances and additional perils insurance

 

The Security
Trustee shall be entitled from time to time if instructed by any Lender to effect, maintain and renew in respect of each Ship a
mortgagee’s interest marine insurance and, in the case where a Ship is trading to ports in, or the territorial waters of, the United
States of America, mortgagee’s interest additional perils insurance in respect of each Ship in an amount which, when aggregated
with the amount for which the other Mortgaged Ships at the relevant time are insured pursuant to this Agreement, does not exceed
120 per cent. of the Loan, on such terms, through such insurers and generally in such manner as the Security Trustee may from time
to time reasonably consider appropriate and the Borrowers shall upon demand fully indemnify the Security Trustee in respect of
all premiums and other reasonable and documented expenses which are incurred in connection with or with a view to effecting, maintaining
or renewing any such insurance or dealing with, or considering, any matter arising out of any such insurance.

 

Ship Covenants

 

		14.1	General

 

Each Borrower also undertakes
with each Creditor Party to comply with the following provisions of this Clause 14 at all times during the Security Period (after
the Drawdown Date of Tranche A) except as the Agent, with the authorisation of the Majority Lenders, may otherwise permit (in the
case of Clauses 14.3(a) and 14.13(d) such permission not to be unreasonably withheld or delayed).

 

		14.2	Ship’s name and registration

 

Each Borrower shall procure
that each Borrower shall keep the Ship owned by it registered in its name under an Approved Flag; shall not do, omit to do or allow
to be done anything as a result of which such registration might be cancelled or imperilled.

 

		14.3	Repair and classification

 

Each Borrower shall keep the
Ship owned by it in a good and safe condition and state of repair:

 

		(a)	so as to maintain her present classification or the highest classification available for vessels
of the same type, age and specification as the relevant Ship with an Approved Classification Society free of material overdue recommendations
affecting that Ship’s class; and

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		(b)	so as to comply with all laws and regulations applicable to vessels registered at ports in the
applicable Approved Flag State or to vessels trading to any jurisdiction to which that Ship may trade from time to time, including
but not limited to the ISM Code and the ISPS Code unless a waiver has been obtained by that Borrower.

 

		14.4	Approved Classification Society undertaking

 

Following the occurrence of
an Event of Default and while the same is continuing, each Borrower shall, following a written request from the Agent, instruct
the relevant Approved Classification Society referred to in Clause 14.3 (and will use reasonable endeavours to procure that that
Approved Classification Society undertakes with the Security Trustee):

 

		(a)	to send to the Security Trustee, following receipt of a written request from the Security Trustee,
certified true copies of all original class records held by the Approved Classification Society in relation to the Ship owned by
that Borrower;

 

		(b)	to allow the Security Trustee (or its agents), at any time and from time to time, to inspect the
original class and related records of that Borrower and that Ship at the offices of that Approved Classification Society and to
take copies of them;

 

		(c)	to notify the Security Trustee immediately in writing if that Approved Classification Society:

 

		(i)	receives notification from that Borrower or any person that that Ship’s Approved Classification
Society is to be changed; or

 

		(ii)	becomes aware of any facts or matters which may result in or have resulted in a change, suspension,
discontinuance, withdrawal or expiry of that Ship’s class under the rules or terms and conditions of that Borrower’s or that Ship’s
membership of that Approved Classification Society; and

 

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

 

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

 

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

 

		14.5	Modification

 

Each Borrower shall not make
any modification or repairs to, or replacement of, the Ship owned by that Borrower or equipment installed on it which would materially
and adversely alter the structure, type or performance characteristics of that Ship or materially reduce its value.

 

		14.6	Removal of parts

 

Each Borrower shall not remove
any material part of the Ship owned by that Borrower, or any item of equipment installed on, that Ship unless the part or item
so removed is replaced in a timely manner by a suitable part or item which is in the same condition as or better condition than
the part or item removed, is free from any Security Interest or any right in favour of any person other than the Security Trustee
and, if it was the property of that Borrower prior to its removal, becomes on installation on that Ship the property of that Borrower
and subject to the security constituted by the relevant Mortgage Provided that each Borrower may install equipment owned
by a third party if the equipment can be

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removed without any risk of
damage to the Ship owned by that Borrower and provided further that that Borrower can remove obsolete equipment or equipment no
longer required to ensure compliance with the rules and regulations of the Approved Classification Society of that Ship.

 

		14.7	Surveys

 

Each Borrower shall submit the
Ship owned by it to all periodical or other surveys which may be required for classification purposes (but, which for the avoidance
of doubt, shall not restrict that Borrower asking for, and obtaining, an extension of a survey wherever it considers appropriate
to do so) and, if so required by the Security Trustee provide the Security Trustee, with copies of all survey reports.

 

		14.8	Inspection

 

Each Borrower shall permit the
Security Trustee (by surveyors or other persons appointed by it for that purpose) to board the Ship owned by that Borrower at all
reasonable times upon provision of timely advance notice to inspect its condition or to satisfy themselves about proposed or executed
repairs and shall afford all proper facilities for such inspections.

 

		14.9	Prevention of and release from arrest

 

Each Borrower shall discharge
within 10 Business Days all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against
the Ship owned by that Borrower, the Earnings or the Insurances and, forthwith upon receiving notice of the arrest of that Ship
owned by it, or of its detention in exercise or purported exercise of any lien or claim, that Borrower shall procure its release
within 10 Business Days of the date of receipt of such notice of the arrest or detention of that Ship by providing bail or otherwise
as the circumstances may require.

 

		14.10	Compliance with laws etc.

 

Each Borrower shall:

 

		(a)	comply, or procure compliance with the ISM Code, the ISPS Code, all Environmental Laws, Sanctions
Laws and all other laws or regulations relating to that Ship, its ownership, operation and management or to the business of that
Borrower unless a waiver in relation thereto has been obtained by that Borrower;

 

		(b)	not employ the Ship owned by it nor allow its employment in any manner contrary to any law or regulation
in any relevant jurisdiction including but not limited to the ISM Code, the ISPS Code and any Sanctions Laws unless a waiver in
relation thereto has been obtained by that Borrower; and

 

		(c)	in the event of hostilities in any part of the world (whether war is declared or not), not cause
or permit that Ship to enter or trade to any zone which is declared a war zone by any government or by the Ship’s war risks insurers
unless that Borrower has (at its expense) effected any special, additional or modified insurance cover which the relevant Ship’s
underwriters may require.

 

		14.11	Provision of information

 

Each Borrower shall promptly
provide the Security Trustee with any information which it reasonably requests regarding:

 

		(a)	the Ship owned by that Borrower, its employment, position and engagements;

 

		(b)	the Earnings and payments and amounts due to the master and crew of that Ship;

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

 

		(d)	any towages and salvages; and

 

		(e)	its compliance, the relevant Approved Manager’s compliance and the compliance of that Ship, in
each case with the ISM Code, the ISPS Code and any Sanctions Laws as regards that Ship,

 

and, upon the Security Trustee’s
request, provide copies of any current charter relating to the Ship owned by it, of any current charter guarantee and copies of
the Borrower’s or the Approved Manager’s Document of Compliance.

 

		14.12	Notification of certain events

 

Each Borrower shall immediately
notify the Security Trustee by fax of:

 

		(a)	any casualty which is a Major Casualty;

 

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

 

		(c)	any requirement or recommendation made by any insurer or any Approved Classification Society or
by any competent authority which is not complied with in accordance with its terms;

 

		(d)	any arrest or detention of that Ship, any exercise or purported exercise of any lien on that Ship
or its Earnings or any requisition of that Ship for hire unless in the case of an arrest or detention or the exercise or purported
exercise of any lien, that Borrower has, within 5 Business Days from the occurrence of the relevant event, discharged the arrest,
detention or lien;

 

		(e)	any intended dry docking of that Ship which is expected to last at least 30 days;

 

		(f)	any Environmental Claim made against that Borrower or in connection with that Ship, or any Environmental
Incident which may or is likely to result in an Environmental Claim;

 

		(g)	any claim for breach of the ISM Code or the ISPS Code being made against that Borrower, the relevant
Approved Manager or otherwise in connection with that Ship which may result in the withdrawal of the Safety Management Certificate,
the Document of Compliance or the ISSC applicable to that Ship, that Borrower or, as the case may be, that Approved Manager; or

 

		(h)	any other matter, event or incident, actual or threatened, the effect of which will or could lead
to the withdrawal of the Safety Management Certificate, the Document of Compliance or the ISSC applicable to any Ship, a Borrower
or, as the case may be, that Approved Manager,

 

and that Borrower shall keep
the Security Trustee advised in writing on a regular basis and in such detail as the Security Trustee shall reasonably require
of that Borrower’s, that Approved Manager’s or any other person’s response to any of those events or matters.

 

		14.13	Restrictions on chartering, appointment of managers etc.

 

Each Borrower shall not, in
relation to the Ship owned by it:

 

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

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

 

		(c)	charter that Ship otherwise than on bona fide arm’s length terms;

 

		(d)	appoint a manager of that Ship other than an Approved Manager; or

 

		(e)	de-activate or lay up that Ship if that Ship is scheduled to be de-activated or laid up for a period
exceeding 6 months unless the de-activation or lay-up is being made at the request of the charterer of that Ship and the charterer
shall continue performing its obligations under the relevant charter during the de-activation or lay-up period; or

 

		(f)	put that Ship into the possession of any person for the purpose of work being done upon it in an
amount exceeding or likely to exceed $2,000,000 (or the equivalent in any other currency) unless that person has (i) first given
to the Security Trustee and in terms reasonably satisfactory to it a written undertaking not to exercise any lien on that Ship
or its Earnings for the cost of such work or for any other reason or (ii) entered into an agreement with that Borrower pursuant
to which that person agrees that the Ship may depart the relevant shipyard or repair yard in consideration of a payment of part,
but not all, of the costs of the relevant work.

 

		14.14	Notice of Mortgage

 

Each Borrower shall keep the
relevant Mortgage registered against the Ship owned by it as a valid first priority or, as the case may be, preferred mortgage,
carry on board that Ship a certified copy of the relevant Mortgage and place and maintain in a conspicuous place in the navigation
room and the Master’s cabin of that Ship a framed printed notice stating that that Ship is mortgaged by that Borrower to the Security
Trustee.

 

		14.15	Sharing of Earnings

 

No Borrower shall enter into
any agreement or arrangement for the sharing of any Earnings.

 

		14.16	Assignable Charter Assignment

 

If a Borrower enters into an
Assignable Charter, it shall, at the request of the Agent (such request to be made promptly upon the Agent being advised, or becoming
aware, of the existence of that Assignable Charter), execute in favour of the Security Trustee an Assignable Charter Assignment
in respect of such Assignable Charter (such Assignable Charter Assignment to be notified to, acknowledged by, the relevant charterer
and any charter guarantor) and shall deliver to the Agent such other documents equivalent to those referred to at paragraphs 3,
4, 5, 7 and 9 of Schedule 5, Part A as the Agent may require.

 

Security
cover

 

		15.1	Minimum required security cover; provision of additional security; prepayment

 

If at any time there is a Charter
Cover Deficiency and the Agent notifies the Borrowers that the Asset Cover Ratio is less than 1.25:1, the Borrowers shall prepay
such part (at least) of the Loan as will eliminate the shortfall on or before the date falling 30 days after the date on which
the Agent’s notice is served on them (the “Prepayment Date”) unless at least 1 Business Day before the
Prepayment Date:

 

		(a)	the Borrowers have provided, or ensured that a third party has provided, additional security which
has a market value (which shall be determined in accordance with Clause 15.4) at least equal to the shortfall and which has been
documented in such terms as the Agent may approve or require; or

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		(b)	the Borrowers have eliminated the shortfall through a combination of a partial prepayment of the
Loan and the provision of additional security pursuant to Clause 15.1(a).

 

		15.2	Valuation of Ships

 

The Market Value of a Ship or
any Fleet Vessel at any date is that shown by a valuation prepared:

 

		(a)	as at a date not more than 30 days previously;

 

		(b)	by an Approved Shipbroker appointed by the Borrowers (subject to such valuation being addressed
to the Agent);

 

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

 

		(d)	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as
between a willing seller and a willing buyer, by taking into account any time charter to which that Ship or Fleet Vessel (and in
the case of a Ship, including but not limited to an Approved Charter or an Assignable Charter) may be subject only if it has an
unexpired duration exceeding or, capable of exceeding (through the exercise by the relevant Borrower or, as the case may be, the
owner of the relevant Fleet Vessel of any extension option exercisable by it), 18 months.

 

		15.3	Frequency of valuations

 

The Borrowers acknowledge and
agree that the Agent may commission valuations of any Ship not more than once during each 6-month period of the Security Period
or, if an Event of Default has occurred, at such other times whilst that Event of Default is continuing as the Agent shall deem
necessary.

 

		15.4	Value of additional security

 

The market value of any additional
security which is provided under Clause 15.1 shall be as follows:

 

		(a)	if it consists of a Security Interest over a vessel, shall be that shown by a valuation complying
with the requirements of Clause 15.2 Provided that if such vessel is, on the date of its valuation, subject to an Assignable
Charter with an unexpired duration exceeding or, capable of exceeding (through the exercise by its owner of any extension option
exercisable by it), 18 months, in respect of which an Assignable Charter Assignment has been executed, the valuation shall be adjusted
to take account of that charter;

 

		(b)	if it consists of a Security Interest over a Dollar cash deposit, shall be that of the amount standing
to the credit of the relevant account at that time (without taking into consideration, for the avoidance of doubt, cash standing
to the credit of the Earnings Account) on a “Dollar for Dollar” basis; and

 

		(c)	if it consists of a Security Interest over any other asset, shall be that reasonably determined
by the Agent.

 

		15.5	Valuations binding

 

Any valuation under Clause 15.2
or 15.4 shall be binding and conclusive as regards the Borrowers and the Creditor Parties, as shall be any valuation which the
Agent reasonably makes of any additional security.

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		15.6	Provision of information

 

Each Borrower shall promptly
provide the Agent and any shipbroker or expert acting under Clauses 15.2 or 15.4 with any information which the Agent or the shipbroker
or expert may reasonably request for the purposes of the valuation; and, if that Borrower fails to provide the information by the
date specified in the request, the valuation may be made on any basis and assumptions which the shipbroker or the Agent, acting
on the instructions of the Majority Lenders, (or the expert appointed by them) consider prudent.

 

		15.7	Payment of valuation expenses

 

Without prejudice to the generality
of the Borrowers’ obligations under Clauses 20.2, 20.3 and 21.3, the Borrowers shall, on demand, pay the Agent the amount of the
reasonable and documented fees and expenses of any shipbroker or expert instructed by the Agent under this Clause (provided that
no more than one set of valuations of each Ship in each 6-month period shall be payable by the Borrowers unless an Event of Default
has occurred which is continuing in which case the Borrowers shall be liable to pay for all valuations that take place during the
period such Event of Default is continuing) and all legal and other expenses incurred by any Creditor Party in connection with
any matter arising out of this Clause.

 

		15.8	Application of prepayment

 

Clause 8 shall apply in relation
to any prepayment pursuant to Clause 15.1.

 

		15.9	Release of additional security

 

If the Asset Cover Ratio shall
at any time exceed 1.25:1 and the Borrowers shall have previously provided further security pursuant to this Clause 15, the Agent,
after receiving a notice from the Borrowers to do so (such notice to include evidence satisfactory to the Agent that the Asset
Cover Ratio specified in Clause 15.1 has been maintained for a period of 30 consecutive days (or a shorter period as the Agent
may (acting on the instructions of the Majority Lenders) accept) prior to such notice) will, subject to being indemnified to its
satisfaction against the cost of doing so, release any such further security specified by the Borrowers to the extent that the
Asset Cover Ratio shall continue to be at least 1.25:1 following such release Provided that at the relevant time no Event
of Default has occurred and is continuing or will result from such release.

 

Payments
and Calculations

 

		16.1	Currency and method of payments

 

All payments to be made by the
Lenders or by the Borrowers under a Finance Document (other than under a Master Agreement) shall be made to the Agent or to the
Security Trustee, in the case of an amount payable to it:

 

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

 

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

 

		(c)	in the case of an amount payable by a Lender to the Agent or by a Borrower to the Agent or
                                                           any Lender, to the account of the Agent at Bank of New York, New York (SWIFT Code: IRVTUS3N; Account No. 8900429585) with
                                                           reference “Attn Loans Admin - Costamare –$176,842,100 facility”, or to such other account with such other
                                                           bank as the Agent may from time to time notify to the Borrowers and the other Creditor Parties; and

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

 

		16.2	Payment on non-Business Day

 

If any payment by any Borrower
under a Finance Document (other than under the Master Agreement) would otherwise fall due on a day which is not a Business Day:

 

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

 

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

 

and interest shall be payable
during any extension under paragraph (a) at the rate payable on the original due date.

 

		16.3	Basis for calculation of periodic payments

 

All interest and commitment
fee and any other payments under any Finance Document (other than under a Master Agreement) which are of an annual or periodic
nature shall accrue from day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year.

 

		16.4	Distribution of payments to Creditor Parties

 

Subject to Clauses 16.5, 16.6
and 16.7:

 

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

 

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

 

		16.5	Permitted deductions by Agent

 

Notwithstanding any other provision
of this Agreement or any other Finance Document, the Agent may, before making an amount available to a Lender, deduct and withhold
from that amount:

 

		(i)	any sum which is then due and payable to the Agent from that Lender under any Finance Document
or any sum which the Agent is then entitled under any Finance Document to require that Lender to pay on demand; and

 

		(ii)	any FATCA Deduction.

 

		16.6	Agent only obliged to pay when monies received

 

Notwithstanding any other provision
of this Agreement or any other Finance Document, the Agent shall not be obliged to make available to any Borrower or any Lender
any sum which the Agent is expecting to receive for remittance or distribution to that Borrower or that Lender until the Agent
has satisfied itself that it has received that sum.

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		16.7	Refund to Agent of monies not received

 

If and to the extent that the
Agent makes available a sum to a Borrower or a Lender, without first having received that sum, the Borrower’s or (as the case may
be) the Lender concerned shall, on demand:

 

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

 

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

 

		16.8	Agent may assume receipt

 

Clause 16.7 shall not affect
any claim which the Agent has under the law of restitution, and applies irrespective of whether the Agent had any form of notice
that it had not received the sum which it made available.

 

		16.9	Creditor Party accounts

 

Each Creditor Party shall maintain
accounts showing the amounts owing to it by any Borrower and each Security Party under the Finance Documents and all payments in
respect of those amounts made by any Borrower and any Security Party.

 

		16.10	Agent’s memorandum account

 

The Agent shall maintain a memorandum
account showing the amounts advanced by the Lenders and all other sums owing to the Agent, the Security Trustee and each Lender
from any Borrower and each Security Party under the Finance Documents and all payments in respect of those amounts made by any
Borrower and any Security Party.

 

		16.11	Accounts prima facie evidence

 

If any accounts maintained under
Clauses 16.9 and 16.10 show an amount to be owing by any Borrower or a Security Party to a Creditor Party, those accounts shall
be prima facie evidence that that amount is owing to that Creditor Party.

 

		16.12	Impaired Agent

 

		(a)	If, at any time, the Agent becomes an Impaired Agent, the Borrowers or a Lender which is required
to make a payment under the Finance Documents to the Agent in accordance with clause 16.1 may instead either:

 

		(i)	pay that amount direct to the required recipient(s); or

 

		(ii)	if in its absolute discretion it considers that it is not reasonably practicable to pay that amount
direct to the required recipient(s), pay the relevant part of that amount to an interest-bearing account held with an Acceptable
Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of any Borrower or the Lender making
the payment (the “Paying Party”) and designated as a trust account for the benefit of the party or parties under
this Agreement beneficially entitled to that payment under the Finance Documents (the “Recipient Party” or
“Recipient Parties”).

 

In each case such payments must
be made on the due date for payment under the Finance Documents;

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		(b)	all interest accrued on the amount standing to the credit of the trust account shall be for the
benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements;

 

		(c)	a party to this Agreement which has made a payment in accordance with paragraphs (a) and (b) shall
be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to
the amounts standing to the credit of the trust account;

 

		(d)	promptly upon the appointment of a successor Agent in accordance with the Finance Documents, each
Paying Party shall (other than to the extent that that party has given an instruction pursuant to paragraph (e) below) give all
requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest)
to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance with Clause 16.4; and

 

		(e)	a Paying Party shall, promptly upon request by a Recipient Party and to the extent:

 

		(i)	that it has not given an instruction pursuant to paragraph (d) above; and

 

		(ii)	that it has been provided with the necessary information by that Recipient Party,

 

give all requisite instructions
to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient
Party.

 

Application
of Receipts

 

		17.1	Normal order of application

 

Except as any Finance Document
may otherwise provide, any sums which are received or recovered by any Creditor Party under or by virtue of any Finance Document
shall be applied:

 

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

 

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

 

		(ii)	secondly, in or towards satisfaction pro rata of any and all amounts of interest or default interest
payable to the Creditor Parties under the Finance Documents (other than under the Master Agreements); and

 

		(iii)	thirdly, in or towards satisfaction of the Loan;

 

		(b)	SECONDLY: in or towards satisfaction of any amounts then due and payable under the Master Agreements
in the following order and proportions:

 

		(i)	first, in or towards satisfaction pro rata of all amounts then due and payable to the Swap Banks
under the Master Agreements other than those amounts referred to at paragraphs (b)(ii) and (b)(iii);

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		(ii)	secondly, in or towards satisfaction pro rata of any and all amounts of interest or default interest
payable to the Swap Banks under the Master Agreements (and, for this purpose, the expression “interest” shall
include any net amount which the Borrowers shall have become liable to pay or deliver under section 2(e) (Obligations) of each
Master Agreement but shall have failed to pay or deliver to the relevant Swap Bank (or any of them) at the time of application
or distribution under this Clause 17); and

 

		(iii)	thirdly, in or towards satisfaction pro rata of the aggregate Swap Exposure (calculated as at the
actual Early Termination Date applying to each particular Designated Transaction entered into under the Master Agreements (or any
of them), or if no such Early Termination Date shall have occurred, calculated as if an Early Termination Date occurred on the
date of application or distribution hereunder and pro rata as between them);

 

		(c)	THIRDLY: (if an Event of Default has occurred and is continuing at the time any sums received or
recovered are being applied in accordance with this Clause 17.1) in retention of an amount equal to any amount not then due and
payable under any Finance Document (other than a Master Agreement) but which the Agent, by notice to the Borrowers, the Security
Parties and the other Creditor Parties, states in its opinion will or may become due and payable in the future and, upon those
amounts becoming due and payable, in or towards satisfaction of them in accordance with the foregoing provisions of this Clause
17;

 

		(d)	FOURTHLY: (if an Event of Default has occurred and is continuing at the time any sums received
or recovered are being applied in accordance with this Clause 17.1) in retention of an amount equal to any amount not then due
under and payable under a Master Agreement but which the Swap Bank, by notice to the Borrowers, the Security Parties and the other
Creditor Parties, states in its opinion will or may become due and payable in the future and, upon those amounts becoming due and
payable, in or towards satisfaction of them in accordance with the foregoing provisions of this Clause; and

 

		(e)	FIFTHLY: any surplus shall be paid to the Borrowers or to any other person appearing to be entitled
to it.

 

		17.2	Variation of order of application

 

The Agent may, with the authorisation
of all the Lenders and the Swap Banks, by notice to the Borrowers, the Security Parties and the other Creditor Parties provide
for a different manner of application from that set out in Clause 17.1 either as regards a specified sum or sums or as regards
sums in a specified category or categories.

 

		17.3	Notice of variation of order of application

 

The Agent may give notices under
Clause 17.1(a) from time to time; and such a notice may be stated to apply not only to sums which may be received or recovered
in the future, but also to any sum which has been received or recovered on or after the third Business Day before the date on which
the notice is served and which have not yet been applied.

 

		17.4	Appropriation rights overridden

 

This Clause 17 and any notice
which the Agent gives under Clause 17.1(a) shall override any right of appropriation possessed, and any appropriation made, by
the Borrowers or any Security Party.

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Application
of Earnings

 

		18.1	Payment of Earnings

 

Each Borrower undertakes with
each Creditor Party to ensure that, throughout the Security Period (and subject only to the provisions of the General Assignment
to which that Borrower is a party), all the Earnings of the Ship owned by that Borrower are paid to the Earnings Account for that
Ship.

 

		18.2	Interest accrued on Earnings Accounts

 

Any credit balance on an Earnings
Account shall bear interest at the rate from time to time offered by the Agent to its customers for Dollar deposits of similar
amounts and for periods similar to those for which such balances appear to the Agent likely to remain on that Earnings Account.

 

		18.3	Location of accounts

 

Each Borrower shall promptly:

 

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

 

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

 

		18.4	Earnings Account: withdrawals

 

Unless and until an Event of
Default shall occur which is continuing and the Agent shall direct to the contrary, each Borrower shall freely withdraw moneys
from its Earnings Account,

 

Provided that:

 

		(a)	if a Borrower wishes to make a withdrawal during either of the grace periods referred to in Clause
19.1(a), it may only make such withdrawal with the prior written consent of the Agent unless during such grace period the relevant
payment referred to in Clause 19.1(a) has been made rendering such grace period redundant; and

 

		(b)	any such withdrawal shall not result in a breach of the Borrowers’ obligations under Clause 12.3(b).

 

Events
of Default

 

		19.1	Events of Default

 

An Event of Default occurs if:

 

		(a)	each Borrower or any Security Party fails to pay any sum within 3 days of the date such sum is
due and payable under a Finance Document or, in the case of any sum expressed to be payable on demand, within 3 Business Days of
the Agent’s written demand, unless such failure to pay is caused by an administrative error in the banking system and payment of
the relevant sum is made within 3 Business Days of its due date; or

 

		(b)	any breach occurs of Clause 9.2, 11.2, 11.3, 11.17, 12.2, 12.3, 13.7 or 15.1 if the Agent (acting
on the instructions of the Majority Lenders) elects to apply the minimum required security cover test in the circumstances referred
to in Clause 15.1; or

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		(c)	any breach by any Borrower or any Security Party occurs of any provision of a Finance Document
(other than a breach covered by paragraphs (a) or (b)) which, in the opinion of the Agent (acting on the instructions of the Majority
Lenders), is capable of remedy, and such default continues unremedied 20 days after written notice from the Agent requesting action
to remedy the same; or

 

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

 

		(e)	any representation, warranty or statement made or repeated by, or by an officer of, a Borrower
or a Security Party in a Finance Document or in a Drawdown Notice or any other notice or document relating to a Finance Document
is untrue or misleading when it is made or repeated and the effect of which will be adverse to the Security Interests created pursuant
to the Finance Documents or will have a material adverse effect on the performance of the obligations undertaken by the Borrowers
and the other Security Parties pursuant to this Agreement, any Master Agreement or any of the other Finance Documents; or

 

		(f)	any of the following occurs in relation to any Financial Indebtedness of a Relevant Person which,
in the case of each Borrower, exceeds, in aggregate, $1,500,000 (or the equivalent in any other currency) and, in the case of the
Guarantor, exceeds, in aggregate, $5,000,000 (or the equivalent in any other currency):

 

		(i)	any Financial Indebtedness of a Relevant Person is not paid when due (after taking into account
any applicable grace periods); or

 

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

 

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

 

		(iv)	any long-term loan and/or guarantee facility (which is to be used in financing one or more ships
or newbuildings) relating to any Financial Indebtedness of a Relevant Person becomes capable of being declared due and payable
as a result of any event of default in respect of such facility and a notice of default (or similar notice setting out the event
which makes that facility capable of being declared due and payable) has been issued; or

 

		(v)	any Security Interest securing any Financial Indebtedness of a Relevant Person becomes enforceable
and such enforcement is not cancelled, terminated, withdrawn or suspended within 30 days of being commenced; or

 

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

 

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

 

		(ii)	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration
or distress:

 

		(A)	in the case of a Ship and any arrest thereof, if that Ship has not been released within 10 Business
Days of the date of receipt of such notice of the arrest of that Ship by providing bail or otherwise as the circumstances may require;
and

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		(B)	in respect of all other assets of a Relevant Person, in respect of a sum of, or sums aggregating,
$3,000,000 , in the case of the Guarantor, and $1,000,000 in the case of any other Relevant Person or more or the equivalent in
another currency and the action in question is not discharged within 15 days; or

 

		(iii)	any administrative or other receiver is appointed over all or a substantial part of the assets
of a Relevant Person; or

 

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

 

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

 

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

 

		(vii)	a resolution is passed, an administration notice is given or filed, an application or petition
to a court is made or presented or any other step is taken by (aa) a Relevant Person, (bb) the members or directors of a Relevant
Person, (cc) a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person,
or (dd) a government minister or public or regulatory authority of a Pertinent Jurisdiction for or with a view to the winding up
of that or another Relevant Person or the appointment of a provisional liquidator or administrator in respect of that or another
Relevant Person, or that or another Relevant Person ceasing or suspending business operations or payments to creditors, save that
this paragraph does not apply to a fully solvent winding up of a Relevant Person other than a Borrower or the Guarantor which is,
or is to be, effected for the purposes of an amalgamation or reconstruction previously approved by the Agent (acting on the instructions
of the Majority Lenders) and effected not later than 90 days after the commencement of the winding up and save further that the
provisions of this Clause 19.1(g)(vii) do not apply in the cases of paragraphs (cc) and (dd) if the proposed winding up, appointment
of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not with a view to some
other insolvency law procedure being implemented instead and either (aa) the application or petition is dismissed or withdrawn
within 90 days of it being made or presented, or (bb) within 90 days of the administration notice being given or filed, or other
relevant steps are being taken or other action is taken which will ensure that there will be no administration and (in both cases
(aa) or (bb)) the Security Party will continue to carry on its business in the ordinary course and without being the subject of
any actual, interim or pending insolvency law procedure; or

 

		(viii)	an administration notice is given or filed, an application or petition to a court is made or presented
or any other step is taken by a creditor of a Relevant Person (other than a holder of Security Interests which together relate
to all or substantially all of the assets of a Relevant Person) for the winding up of a Relevant Person or the appointment of a
provisional liquidator or administrator in respect of a Relevant Person in any Pertinent Jurisdiction, unless the proposed winding
up, appointment of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not
with a view to some other insolvency law procedure being implemented instead and either (aa) the application or petition is dismissed
or withdrawn within 90 days of being made or presented, or (bb) within 90 days of the administration notice being given or filed,
or the other relevant steps being taken, other action is taken which will ensure that there will be no administration and (in both
cases (aa) or (bb)) the Relevant Person will continue to carry on business in the

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ordinary way and without being
the subject of any actual, interim or pending insolvency law procedure; or

 

		(ix)	a Relevant Person or its directors take any steps (whether by making or presenting an application
or petition to a court, or submitting or presenting a document setting out a proposal or proposed terms, or otherwise) with a view
to obtaining, in relation to that or another Relevant Person, any form of moratorium, suspension or deferral of payments, reorganisation
of debt (or certain debt) or arrangement with all or a substantial proportion (by number or value) of creditors or of any class
of them or any such moratorium, suspension or deferral of payments, reorganisation or arrangement is effected by court order, by
the filing of documents with a court, by means of a contract or in any other way at all Provided however:

 

		(A)	a discussion about the possibility of taking any such a step in relation to any of the above during
a board meeting, shall not constitute an Event of Default under this Clause 19.1(g)(ix);

 

		(B)	a petition or legal proceedings initiated by a third party, which the Borrowers can demonstrate
to the satisfaction of the Agent (acting upon the instructions of the Majority Lenders) in its absolute discretion, by providing
an opinion of leading counsel to that effect, is frivolous, vexatious or an abuse of the process of the court or relates to a claim
to which the relevant Security Party has a good defence and which is being vigorously contested by the relevant Security Party
shall not constitute an Event of Default; or

 

		(x)	in a Pertinent Jurisdiction other than England, any event occurs, any proceedings are opened or
commenced or any step is taken which, in the reasonable opinion of the Agent, acting on the instructions of the Majority Lenders
(having previously received advice of counsel) is similar to any of the foregoing unless the relevant proceedings are being contested
in good faith, on substantial grounds and not with a view to some other insolvency law procedure being implemented instead and/or
such having been terminated within 90 days of commencement; or

 

		(h)	a Borrower or any Security Party ceases or suspends carrying on its business or a part of its business
which, in the reasonable opinion of the Agent (acting on the instructions of the Majority Lenders) is material in the context of
this Agreement; or

 

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

 

		(i)	for any Borrower or any Security Party to discharge any liability under a Finance Document or to
comply with any other obligation which the Agent (acting on the instructions of the Majority Lenders) consider material under a
Finance Document; or

 

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

 

unless the Majority Lenders
are satisfied that through the implementation of alternative arrangements satisfactory to the Majority Lenders the unlawfulness
or impossibility will be overcome or rectified within a period of 10 days without jeopardising in any way the position of the Creditor
Parties under this Agreement, any Master Agreement or any of the other Finance Documents or the Security Interests created pursuant
to the Finance Documents (and such unlawfulness or impossibility is actually overcome or rectified within such 10-day period);
or

 

		(j)	any official consent necessary to enable any Borrower to own, operate or charter the Ship owned
by it or to enable any Borrower or any Security Party to comply with any provision which the Majority Lenders reasonably consider
material of a Finance Document is not

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granted, expires without being
renewed, is revoked or becomes liable to revocation or any condition of such a consent is not fulfilled unless that Borrower or
other relevant Security Party has obtained a waiver thereof from the relevant authorities; or

 

		(k)	if the common units of the Guarantor cease to be quoted on the New York Stock Exchange or any other
stock exchange acceptable to the Agent; or

 

		(l)	without the prior consent of the Lenders (such consent not to be unreasonably withheld or delayed),
the Guarantor ceases to wholly own, directly or indirectly, any Borrower; or

 

		(m)	without the prior written consent of the Agent (acting with the authorisation of the Majority Lenders),
any of the Initial Approved Charters is terminated or becomes invalid or unenforceable or otherwise ceases to be in full force
and effect for any reason prior to its stated termination date (without taking into account any option periods which, at the relevant
time, have not been exercised) unless that Initial Approved Charter is replaced within 90 days of its termination or of the date
on which such Initial Approved Charter ceased to be in full force and effect by another Approved Charter; or

 

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

 

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

 

		(p)	any other event occurs or any other circumstances arise or develop including, without limitation,
a material adverse change in the financial position, state of affairs or prospects of any Relevant Person in the light of which
the Majority Lenders reasonably consider that there is a significant risk that any Borrower or any Security Party is, or will later
become, unable to discharge its liabilities under the Finance Documents as they fall due.

 

		19.2	Actions following an Event of Default

 

On, or at any time after, the
occurrence of an Event of Default and while the same is continuing:

 

		(a)	the Agent shall, if so instructed by the Majority Lenders:

 

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

 

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

 

		(iii)	take any other action which, as a result of the Event of Default or any notice served under paragraph
(i) or (ii), the Agent and/or the Lenders are entitled to take under any Finance Document or any applicable law and the Agent may,
without being instructed by the Majority Lenders, take any action (other than that referred to in paragraphs (i) and (ii)) which,
as a result of the Event of Default, the Agent is entitled to take under any Finance Document or any applicable law; and/or

 

		(b)	the Security Trustee shall, if so instructed by the Agent, acting with the authorisation of the
Majority Lenders, take any action which, as a result of the Event of Default or any notice served under paragraph (a)(i) or (a)(ii),
the Security Trustee, the Agent and/or the Lenders

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are entitled to take under any
Finance Document or any applicable law and the Security Trustee may, without being instructed by the Agent or the Majority Lenders,
take any action which, as a result of the Event of Default, the Security Trustee is entitled to take under any Finance Document
or any applicable law.

 

		19.3	Termination of Commitments

 

On the service of a notice under
Clause 19.2(a)(i), the Commitments (or the relevant part thereof) and all other or the relevant obligations of each Lender to the
Borrowers under this Agreement shall be cancelled.

 

		19.4	Acceleration of Loan

 

On the service of a notice under
Clause 19.2(a)(ii) all or, as the case may be, the relevant part of the Loan, all accrued interest and all other amounts accrued
or owing from the Borrowers or any Security Party under this Agreement and every other Finance Document shall become immediately
due and payable or, as the case may be, payable on demand.

 

		19.5	Multiple notices

 

The Agent may serve notices
under Clauses 19.2(a)(i) or 19.2(a)(ii) simultaneously or on different dates and it and/or the Security Trustee may take any action
referred to in Clause 19.2 simultaneously with or at any time after the service of both or either of such notices.

 

		19.6	Notification of Creditor Parties and Security Parties

 

The Agent shall send to each
Lender, the Security Trustee, each Swap Bank and each Security Party a copy or the text of any notice which the Agent serves on
the Borrowers under Clause 19.2; but the notice shall become effective when it is served on the Borrowers, and no failure or delay
by the Agent to send a copy or the text of the notice to any other person shall invalidate the notice or provide the Borrowers
or any Security Party with any form of claim or defence.

 

		19.7	Creditor Party rights unimpaired

 

Nothing in this Clause shall
be taken to impair or restrict the exercise of any right given to individual Creditor Parties under a Finance Document or the general
law; and, in particular, this Clause is without prejudice to Clause 3.1.

 

		19.8	Exclusion of Creditor Party liability

 

No Creditor Party, and no receiver
or manager appointed by the Security Trustee, shall have any liability to any Borrower or a Security Party:

 

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

 

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

 

except that this does not exempt
a Creditor Party or a receiver or manager from liability for losses shown to have been caused by the dishonesty, the gross negligence
or the wilful misconduct of such Creditor Party’s own officers and employees or (as the case may be) such receiver’s or manager’s
own partners or employees unless the Borrower or any Security Party is privy to such conduct.

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		19.9	Relevant Persons

 

In this Clause
19, a “Relevant Person” means any Borrower and any Security Party.

 

		19.10	Interpretation

 

In Clause 19.1(f) references
to an event of default or a termination event include any event, howsoever described, which is similar to an event of default in
a facility agreement or a termination event in a finance lease; and in Clause 19.1(g) “petition” includes an application.

 

Fees
and Expenses

 

		20.1	Arrangement and commitment fees

 

The Borrowers shall pay (or,
as the case may be, has paid), to the Agent:

 

		(a)	certain fees in the amounts and at the times agreed in the Fee Letter; and

 

		(b)	quarterly in arrears during the period from (and including) the date of this Agreement to the earlier
of (i) the final Drawdown Date and (ii) the last day of the Availability Period (and on the last day of that period) for the account
of the Lenders, a commitment fee at the rate of 0.65 per cent. per annum on the undrawn and uncancelled amount of the Total Commitments
for distribution among the Lenders pro rata to their Commitments, Provided that no commitment fee shall be payable to the
Agent (for the account of a Lender) on the Commitment of that Lender for any day on which that Lender is a Defaulting Lender.

 

		20.2	Costs of negotiation, preparation etc.

 

The Borrowers shall pay to the
Agent on its demand the amount of all reasonable and documented expenses incurred by the Agent or the Security Trustee in connection
with the negotiation, preparation, execution or registration of any Finance Document or any related document or with any transaction
contemplated by a Finance Document or a related document.

 

		20.3	Costs of variations, amendments, enforcement etc.

 

The Borrowers shall pay to the
Agent, on the Agent’s demand, for the account of the Creditor Party concerned the amount of all documented expenses incurred by
a Creditor Party in connection with:

 

		(a)	any amendment or supplement to a Finance Document, or any proposal for such an amendment to be
made which results from a request made by the Borrowers, the occurrence of an Event of Default or a change of law (including, without
limitation, the application or interpretation thereof);

 

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

 

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

 

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

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There shall be recoverable under
paragraph (d) the full amount of all legal expenses, whether or not such as would be allowed under rules of court or any taxation
or other procedure carried out under such rules.

 

		20.4	Documentary taxes

 

The Borrowers shall promptly
pay any tax or duty payable on or by reference to any Finance Document, and shall, on the Agent’s demand, fully indemnify each
Creditor Party against any claims, expenses, liabilities and losses resulting from any failure or delay by the Borrowers to pay
such a tax or duty (but this does not extend to duties or taxes arising as a result of a transfer under Clause 26.2).

 

		20.5	Certification of amounts

 

A notice which is signed by
2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under
this Clause 20 and which indicates the matters in respect of which the amount, or aggregate amount, is due shall be prima facie
evidence that the amount, or aggregate amount, is due. Upon request by the Borrowers, the Agent shall provide details of the relevant
amounts together with supporting documents.

 

Indemnities

 

		21.1	Indemnities regarding borrowing and repayment of Loan

 

The Borrowers shall fully indemnify
the Agent, each Lender and their affiliates on the Agent’s demand and the Security Trustee on its demand in respect of all claims,
expenses, liabilities and losses which are made or brought against or incurred by that Creditor Party or its affiliates, or which
that Creditor Party or its affiliates reasonably and with due diligence estimates that it will incur, as a result of or in connection
with:

 

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

 

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

 

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

 

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

 

and in respect of any tax (other
than tax on its overall net income, a FATCA Deduction and the Bank Levy) for which a Creditor Party is liable in connection with
any amount paid or payable to that Creditor Party (whether for its own account or otherwise) under any Finance Document.

 

		21.2	Break Costs

 

Without limiting the generality
of Clause 21.1, the Borrowers shall be deemed to have complied with their obligations under Clause 21.1(b) as regards the Loan
(but not any other overdue sum) by, within 3 Business Days of demand by a Creditor Party, paying to that Creditor Party its Break
Costs attributable to all or any part of the Loan being paid by the Borrowers on a day other than the last day of an Interest Period
for Tranche A or, as the case may be, an Advance under Tranche B. Each Creditor Party shall, as soon as reasonably

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practicable after a demand by
the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

 

		21.3	Miscellaneous indemnities

 

The Borrowers shall fully indemnify
each Creditor Party and its affiliates severally on their respective demands in respect of all claims, expenses, liabilities and
losses which may be made or brought against or incurred by a Creditor Party or its affiliates, in any country, as a result of or
in connection with any Environmental Claim or otherwise howsoever arising out of any Environmental Incident or in connection with
any breach of any Sanctions laws.

 

		21.4	Currency indemnity

 

If any sum due from any Borrower
or any Security Party to a Creditor Party under a Finance Document or under any order or judgment relating to a Finance Document
has to be converted from the currency in which the Finance Document provided for the sum to be paid (the “Contractual Currency”)
into another currency (the “Payment Currency”) for the purpose of:

 

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

 

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

 

		(c)	enforcing any such order or judgment,

 

the Borrowers shall indemnify
the Creditor Party concerned against the loss arising when the amount of the payment actually received by that Creditor Party is
converted at the available rate of exchange into the Contractual Currency.

 

In this Clause
21.4 the “available rate of exchange” means the rate at which the Creditor Party concerned is able at the opening
of business (London time) on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the
Payment Currency.

 

This Clause 21.4 creates a separate
liability of the Borrowers which is distinct from its other liabilities under the Finance Documents and which shall not be merged
in any judgment or order relating to those other liabilities.

 

		21.5	Application to Master Agreement

 

For the avoidance of doubt,
Clause 21.4 does not apply in respect of sums due from the Borrowers to any Swap Bank under or in connection with the relevant
Master Agreement as to which sums the provisions of section 8 (Contractual Currency) of that Master Agreement shall apply.

 

		21.6	Certification of amounts

 

A notice which is signed by
2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under
this Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount,
or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due. Upon request by the Borrowers,
the Agent shall provide details of the relevant amounts together with supporting documents.

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		21.7	Sums deemed due to a Lender

 

For the purposes of this Clause
21, a sum payable by the Borrowers to the Agent or the Security Trustee for distribution to a Lender shall be treated as a sum
due to that Lender.

 

No
set-off or Tax Deduction

 

		22.1	No deductions

 

All amounts due from any Borrower
under a Finance Document shall be paid:

 

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

 

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

 

		22.2	Grossing-up for taxes

 

If any Borrower is required
by law to make a tax deduction from any payment:

 

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

 

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

 

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

 

		22.3	Evidence of payment of taxes

 

Within 1 month after making
any tax deduction, the Borrower concerned shall deliver to the Agent documentary evidence satisfactory to the Agent that the tax
had been paid to the appropriate taxation authority.

 

		22.4	Exclusion of tax on overall net income

 

In this Clause
22 “tax deduction” means any deduction or withholding for or on account of any present or future tax except tax
on a Creditor Party’s overall net income or a FATCA Deduction.

 

		22.5	Claw-back of tax benefit

 

If, following any such deduction
or withholding as is referred to in Clause 22.2 from any payment by a Borrower, a Lender shall receive or be granted a credit against
or remission for any taxes payable by it, such Lender shall, subject to that Borrower having made any increased payment in accordance
with Clause 22.2 and to the extent that such Lender can do so without prejudicing the retention of the amount of such credit or
remission and without prejudice to the right of such Lender to obtain any other relief or allowance which may be available to it,
reimburse that Borrower with such amount as such Lender shall certify (attaching supporting documentation unless the relevant Lender
is prohibited from disclosing any such documentation) to be the proportion of such credit or remission as will leave such Lender
(after such reimbursement) in no worse position than it would have been in had there been no such deduction or withholding from
the payment by the Borrower as aforesaid. Such reimbursement shall be made forthwith upon such Lender certifying that the amount
of such credit or remission has been received by it. Nothing contained in this Agreement shall oblige a Lender to rearrange its
tax affairs or to disclose any information

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regarding its tax affairs and
computations. Without prejudice to the generality of the foregoing, the Borrowers shall not, by virtue of this Clause 22.5, be
entitled to enquire about a Lender’s tax affairs.

 

		22.6	Application to a Master Agreement

 

For the avoidance of doubt,
Clause 22 does not apply in respect of sums due from the Borrowers to a Swap Bank under or in connection with the relevant Master
Agreement as to which sums the provisions of section 2(d) (Deduction or Withholding for Tax) of that Master Agreement shall apply.

 

		22.7	FATCA information

 

		(a)	Subject to paragraph (c) below, each party to the Finance Documents shall, within 10 Business Days
of a reasonable request by another party to the Finance Documents:

 

		(i)	confirm to that other party whether it is:

 

		(A)	a FATCA Exempt Party; or

 

		(B)	not a FATCA Exempt Party; and

 

		(ii)	supply to that other party such forms, documentation and other information relating to its status
under FATCA (including its applicable “passthru payment percentage” or other information required under the US Treasury
Regulations or other official guidance including intergovernmental agreements) as that other party reasonably requests for the
purposes of that other party’s compliance with FATCA;

 

		(b)	if a party to any Finance Document confirms to another party pursuant to sub-paragraph (i) of paragraph
(a) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt
Party, that party shall notify that other party reasonably promptly;

 

		(c)	paragraph (a) above shall not oblige any Creditor Party to do anything which would or might in
its reasonable opinion constitute a breach of:

 

		(i)	any law or regulation;

 

		(ii)	any fiduciary duty; or

 

		(iii)	any duty of confidentiality;

 

		(d)	if a party to any Finance Document fails to confirm its status or to supply forms, documentation
or other information requested in accordance with paragraph (a) above (including, for the avoidance of doubt, where paragraph (c)
above applies), then:

 

		(i)	if that party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such party
shall be treated for the purposes of the Finance Documents as if it is not a FATCA Exempt Party; and

 

		(ii)	if that party failed to confirm its applicable “passthru payment percentage” then such
party shall be treated for the purposes of the Finance Documents (and payments made thereunder) as if its applicable “passthru
payment percentage” is 100 per cent.,

 

until (in each case) such time
as the party in question provides the requested confirmation, forms, documentation or other information.

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		22.8	FATCA Deduction

 

		(a)	Each party to a Finance Document may make any FATCA Deduction it is required to make by FATCA,
and any payment required in connection with that FATCA Deduction, and shall not be required to increase any payment in respect
of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

 

		(b)	Each party to a Finance Document shall promptly, upon becoming aware that it must make a FATCA
Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the party to a Finance Document
to whom it is making the payment and, in addition, shall notify the Borrowers and the Agent and the Agent shall notify the other
Creditor Parties.

 

		22.9	Value Added Tax

 

The Borrowers agree that:

 

		(a)	all amounts expressed to be payable under a Finance Document by any party to a Creditor Party shall
be deemed to be exclusive of any VAT.  If VAT is chargeable on any supply made by a Creditor Party to any party in connection
with a Finance Document, that party shall pay to that Creditor Party (in additional to and at the same time as paying the consideration)
an amount equal to the amount of the VAT; and

 

		(b)	where a Finance Document requires any party to reimburse a Creditor Party for any costs or expenses,
that party shall also at the same time pay and indemnify that Creditor Party against all VAT incurred by that Creditor Party in
respect of the costs or expenses to the extent that that Creditor Party reasonably determines that it is not entitled to credit
or repayment of the VAT.

 

Illegality,
Etc.

 

		23.1	Illegality

 

This Clause 23 applies if a
Lender (the “Notifying Lender”) notifies the Agent that it has become, or will with effect from a specified date,
become:

 

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

 

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

 

for the Notifying Lender to
maintain or give effect to any of its obligations under this Agreement in the manner contemplated by this Agreement.

 

		23.2	Notification of illegality

 

The Agent shall promptly notify
the Borrowers, the Security Parties, the Security Trustee and the other Lenders of the notice under Clause 23.1 which the Agent
receives from the Notifying Lender.

 

		23.3	Prepayment; termination of Commitment

 

On the Agent notifying the Borrowers
under Clause 23.2, the Notifying Lender’s Commitment shall terminate; and thereupon or, if later, on the date specified in the
Notifying Lender’s notice under Clause 23.1 as the date on which the notified event would

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become effective the Borrower
shall prepay the Notifying Lender’s Contribution in accordance with Clause 8.

 

		23.4	Mitigation

 

If circumstances arise which
would result in a notification under Clause 23.1 then, without in any way limiting the rights of the Notifying Lender under Clause
23.3, the Notifying Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement
and the Finance Documents to another office or financial institution not affected by the circumstances but the Notifying Lender
shall not be under any obligation to take any such action if, in its opinion, to do would or might:

 

		(a)	have an adverse effect on its business, operations or financial condition; or

 

		(b)	involve it in any activity which is unlawful or prohibited or any activity that is contrary to,
or inconsistent with, any regulation; or

 

		(c)	involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage.

 

Increased
Costs

 

		24.1	Increased costs

 

This Clause 24 applies if a
Lender (the “Notifying Lender”) notifies the Agent that the Notifying Lender considers that as a result of:

 

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

 

		(b)	complying with any law or regulation (including any which relates to capital adequacy or liquidity
controls or which affects the manner in which the Notifying Lender allocates capital resources to its obligations under this Agreement,
which laws or regulations shall include, for the avoidance of doubt, the Basel II Accord) which is introduced, or altered, or the
interpretation or application of which is altered, after the date of this Agreement; or

 

		(c)	the implementation or application of, or compliance with, Basel III or any law or regulation which
implements or applies Basel III, the effect of which is not able to be reasonably calculated and quantified as at the date of this
Agreement,

 

the Notifying Lender has incurred
or will incur an “increased cost”.

 

		24.2	Meaning of “increased cost”

 

In this Clause
24, “increased cost” means, in relation to a Notifying Lender:

 

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

 

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

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

 

		(d)	a liability to make a payment, or a return foregone, which is calculated by reference to any amounts
received or receivable by the Notifying Lender under this Agreement,

 

but not (aa) an item attributable
to a change in the rate of tax on the overall net income of the Notifying Lender or the Bank Levy or (bb) an item covered by the
indemnity for tax in Clause 21.1 or by Clause 22, (cc) a FATCA Deduction or (dd) an item:

 

		(i)	attributable to a change in the weighting approach adopted by the Notifying Lender pursuant to
the Basel II Accord;

 

		(ii)	arising from a decision by the Notifying Lender to adopt or implement a law or regulation which
is not mandatorily applicable to it at the time it adopts such law or regulation; or

 

		(iii)	arising from a law or regulation applicable only to the Notifying Lender if the imposition of such
law or regulation arises from the Notifying Lender’s own behaviour,

 

but only to the extent that
the Notifying Lender determines it did or would have occurred the same level of increased costs as at the date of this Agreement
and by reference to the facts and circumstances prevailing at that time.

 

		24.3	Exception

 

Clause 24.1 does not apply to
the extent any increased cost is compensated for by the payment of the Mandatory Cost.

 

		24.4	Notification to Borrowers of claim for increased costs

 

The Agent shall promptly notify
the Borrowers and the Security Parties of the notice which the Agent received from the Notifying Lender under Clause 24.1.

 

		24.5	Payment of increased costs

 

The Borrowers shall pay to the
Agent, on the Agent’s demand, for the account of the Notifying Lender the amounts which the Agent from time to time notifies the
Borrowers that the Notifying Lender has specified to be necessary to compensate the Notifying Lender for the increased cost (subject
to providing the Borrowers with supporting documentation unless the Notifying Lender is prohibited from disclosing such documentation).

 

		24.6	Notice of prepayment

 

If the Borrowers are not willing
to continue to compensate the Notifying Lender for the increased cost under Clause 24.5, the Borrowers may give the Agent not less
than 3 days’ notice of its intention to prepay the Notifying Lender’s Contribution at the end of an Interest Period.

 

		24.7	Prepayment; termination of Commitment

 

A notice under Clause 24.6 shall
be irrevocable; the Agent shall promptly notify the Notifying Lender of the Borrowers’ notice of intended prepayment; and:

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

 

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

 

		24.8	Application of prepayment

 

Clause 8 shall apply in relation
to the prepayment.

 

Set-off

 

		25.1	Application of credit balances

 

Each Creditor Party may with
prior written notice to the Borrowers (other than at any time following the occurrence of an Event of Default and while the same
is continuing in which case no such notice shall be required):

 

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

 

		(b)	for that purpose:

 

		(i)	break, or alter the maturity of, all or any part of a deposit of the Borrowers (or any of them);

 

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

 

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

 

		25.2	Existing rights unaffected

 

No Creditor Party shall be obliged
to exercise any of its rights under Clause 25.1; and those rights shall be without prejudice and in addition to any right of set-off,
combination of accounts, charge, lien or other right or remedy to which a Creditor Party is entitled (whether under the general
law or any document).

 

		25.3	Sums deemed due to a Lender

 

For the purposes of this Clause
25, a sum payable by any Borrower to the Agent or the Security Trustee for distribution to, or for the account of, a Lender shall
be treated as a sum due to that Lender; and each Lender’s proportion of a sum so payable for distribution to, or for the account
of, the Lenders shall be treated as a sum due to such Lender.

 

		25.4	No Security Interest

 

This Clause 25 gives the Creditor
Parties a contractual right of set-off only, and does not create any equitable charge or other Security Interest over any credit
balance of any Borrower.

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Transfers
and Changes in Lending Offices

 

		26.1	Transfer by Borrowers

 

No Borrower may, without the
consent of the Agent, given on the instructions of all the Lenders transfer any of its rights, liabilities or obligations under
any Finance Document.

 

		26.2	Transfer by a Lender

 

Subject to Clause 26.4 and the
other provisions of this Clause 26.2, a Lender (the “Transferor Lender”) may at any time cause:

 

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

 

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

 

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

 

to be (in the case of its rights)
transferred to, or (in the case of its obligations) assumed by, another bank, financial institution or a Fund (a “Transferee
Lender”) by delivering to the Agent a completed certificate in the form set out in Schedule 6 with any modifications approved
or required by the Agent (a “Transfer Certificate”) executed by the Transferor Lender and the Transferee Lender.

 

However any rights and obligations
of the Transferor Lender in its capacity as Agent or Security Trustee will have to be dealt with separately in accordance with
the Agency and Trust Agreement.

 

Provided that a transfer
pursuant to this Clause 26.2 shall:

 

		(i)	be effected without the consent of the Borrowers (other than in the case of a transfer to a Fund):

 

		(A)	if such transfer is effected when an Event of Default is continuing for 90 consecutive days or
more; or

 

		(B)	if such transfer is to another Lender or an affiliate of a Lender; and

 

		(ii)	in all other circumstances (including a transfer to a Fund), be effected with the prior written
consent of the Borrowers (such consent not to be unreasonably withheld or delayed unless the transfer is to a Fund, in which case
the Borrowers may withhold their consent in their discretion). Such consent shall be deemed received by the Creditor Parties if
the Borrowers have failed to respond within 5 Business Days of the Creditor Parties’ request, unless the transfer is to a Fund
where failure to respond within 5 Business Days shall not be deemed to be a consent to such transfer.

 

		26.3	Transfer Certificate, delivery and notification

 

As soon as reasonably practicable
after a Transfer Certificate is delivered to the Agent, it shall (unless it has reason to believe that the Transfer Certificate
may be defective):

 

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

 

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

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

 

but the Agent shall only be
obliged to execute a Transfer Certificate delivered to it by the Transferor Lender and the Transferee Lender once it is satisfied
it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations
in relation to the transfer to that Transferee Lender.

 

		26.4	Effective Date of Transfer Certificate

 

A Transfer Certificate becomes
effective on the date, if any, specified in the Transfer Certificate as its effective date Provided that it is signed by
the Agent under Clause 26.3 on or before that date.

 

		26.5	No transfer without Transfer Certificate

 

Except as provided in Clause
26.16, no assignment or transfer of any right or obligation of a Lender under any Finance Document is binding on, or effective
in relation to, any Borrower, any Security Party, the Agent or the Security Trustee unless it is effected, evidenced or perfected
by a Transfer Certificate.

 

		26.6	Lender re-organisation; waiver of Transfer Certificate

 

However, if a Lender enters
into any merger, de-merger or other reorganisation as a result of which all its rights or obligations vest in another person (the
“successor”), the Agent may, if it sees fit, by notice to the successor and the Borrowers and the Security Trustee
waive the need for the execution and delivery of a Transfer Certificate; and, upon service of the Agent’s notice, the successor
shall become a Lender with the same Commitment and Contribution as were held by the predecessor Lender.

 

		26.7	Effect of Transfer Certificate

 

A Transfer Certificate takes
effect in accordance with English law as follows:

 

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

 

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

 

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

 

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

 

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

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		(f)	the Transferee Lender becomes entitled to all the rights under the Finance Documents which are
applicable to the Lenders generally, including but not limited to those relating to the Majority Lenders and those under Clause
5.7 and Clause 20, and to the extent that the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to
be entitled to them; and

 

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

 

The rights and equities of any
Borrower or any Security Party referred to above include, but are not limited to, any right of set off and any other kind of cross-claim.

 

		26.8	Maintenance of register of Lenders

 

During the Security Period the
Agent shall maintain a register in which it shall record the name, Commitment, Contribution and administrative details (including
the lending office) from time to time of each Lender holding a Transfer Certificate and the effective date (in accordance with
Clause 26.4) of the Transfer Certificate; and the Agent shall make the register available for inspection by any Lender, the Security
Trustee and the Borrowers during normal banking hours, subject to receiving at least 3 Business Days’ prior notice.

 

		26.9	Reliance on register of Lenders

 

The entries on that register
shall, in the absence of manifest error, be conclusive in determining the identities of the Lenders and the amounts of their Commitments
and Contributions and the effective dates of Transfer Certificates and may be relied upon by the Agent and the other parties to
the Finance Documents for all purposes relating to the Finance Documents.

 

		26.10	Authorisation of Agent to sign Transfer Certificates

 

The Borrowers, the Security
Trustee, each Swap Bank and each Lender irrevocably authorise the Agent to sign Transfer Certificates on its behalf.

 

		26.11	Registration fee

 

In respect of any Transfer Certificate,
the Agent shall be entitled to recover a registration fee of $2,500 from the Transferor Lender or (at the Agent’s option) the Transferee
Lender. Such fee is not to be reimbursed to the payee by the Borrowers or any Security Party.

 

		26.12	Disclosure of Confidential Information

 

Any Creditor Party may disclose:

 

		(a)	to any of its affiliates and any of its or their officers,
directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Creditor
Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a)
is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive
information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations
to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the
Confidential Information;

 

		(b)	to any person:

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		(i)	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any
of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as
Agent or Security Trustee and, in each case, to any of that person’s affiliates, Representatives
and professional advisers;

 

		(ii)	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly,
any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference
to, one or more Finance Documents and/or one or more Security Parties and to any of that person’s affiliates,
Representatives and professional advisers;

 

		(iii)	appointed by any Creditor Party or by a person to whom sub-paragraph (i) or (ii) of paragraph (b)
above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;

 

		(iv)	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly
or indirectly, any transaction referred to in sub-paragraph (i) or (ii) of paragraph (b) above;

 

		(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction
or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange
or pursuant to any applicable law or regulation;

 

		(vi)	to whom information is required to be disclosed in connection with, and for the purposes of, any
litigation, arbitrations, administrative or other investigations, proceedings or disputes;

 

		(vii)	to whom or for whose benefit that Creditor Party charges, assigns or otherwise creates Security
(or may do so) pursuant to Clause 26.16;

 

		(viii)	who is a party to this Agreement, a member of the Group or any related entity of a Security Party;

 

		(ix)	as a result of the registration of any Finance Document as contemplated by any Finance Document
or any legal opinion obtained in connection with any Finance Document; or

 

		(x)	with the consent of the Borrowers;

 

in each case, such Confidential
Information as that Creditor Party shall consider appropriate if:

 

		(A)	in relation to sub-paragraphs (i), (ii) and (iii) of paragraph (b) above, the person to whom the
Confidential Information is to be given has entered into a Confidentiality Agreement except that there shall be no requirement
for a Confidentiality Agreement if the recipient is already bound by requirements of confidentiality in relation to the Confidential
Information;

 

		(B)	in relation to sub-paragraph (iv) of paragraph (b) above, the person to whom the Confidential Information
is to be given has entered into a Confidentiality Agreement or is otherwise bound by requirements of confidentiality in relation
to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive
information;

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		(C)	in relation to sub-paragraph (v) of paragraph (b), sub-paragraph (vi) of paragraph (b) and sub-paragraph
(vii) of paragraph (b) above, the person to whom the Confidential Information is to be given is informed of its confidential nature
and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement
to so inform if, in the opinion of that Creditor Party, it is not practicable so to do in the circumstances;

 

		(c)	to any person appointed by that Creditor Party or by a person to whom sub-paragraph (i) or (ii)
of paragraph (b) above applies to provide administration or settlement services in respect of one or more of the Finance Documents
including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential
Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this
paragraph (c) if the service provider to whom the Confidential Information is to be given has entered in to a confidentiality agreement
substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers
or such other form of confidentiality undertaking agreed between the Borrowers and the relevant
Creditor Party;

 

		(d)	to any rating agency (including its professional advisers) such Confidential Information as may
be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents
and/or the Security Parties if the rating agency to whom the Confidential Information is to be given is informed of its confidential
nature and that some or all of such Confidential Information may be price-sensitive information.

 

Each Security
Party hereby releases each Creditor Party and each of its affiliates and each of its or their officers, directors, employees, head
office, professional advisers, auditors and Representatives from any confidentiality obligations or confidentiality restrictions
arising from Swiss law or other applicable banking secrecy and data protection legislation which would prevent any such person
from disclosing any Confidential Information in accordance with the provisions of this Clause 26.12.

 

		26.13	Change of lending office

 

A Lender may change its lending
office by giving notice to the Agent and the Agent shall notify the Borrowers and the other Creditor Parties and the change shall
become effective on the later of:

 

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

 

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

 

		26.14	Notification

 

On receiving such a notice,
the Agent shall notify the Borrowers and the Security Trustee; and, until the Agent receives such a notice, it shall be entitled
to assume that a Lender is acting through the lending office of which the Agent last had notice.

 

		26.15	Replacement of Reference Bank

 

If any Reference Bank ceases
to be a Lender or is unable on a continuing basis to supply quotations for the purposes of Clause 5 then, the Agent, acting on
the instructions of the Majority Lenders, and with the agreement of the Borrowers, shall appoint another bank (whether or not a
Lender) to be the replacement Reference Bank; and, when that appointment comes into effect, the first-mentioned Reference Bank’s
appointment shall cease to be effective.

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		26.16	Security over Lenders’ rights

 

In addition to the other rights
provided to Lenders under this Clause 26, each Lender may without consulting with or obtaining consent from the Borrowers or any
Security Party, at any time charge, assign or otherwise create a Security Interest in or over (whether by way of collateral or
otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender to a federal reserve or central
bank including, without limitation:

 

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

 

		(b)	if the Lender is a Fund, any charge, assignment or other Security Interest granted to any holders
(or trustee or representatives of holders) of obligations owed, or securities issued, by the Lender as security for those obligations
or securities,

 

except that
no such charge, assignment or Security Interest shall:

 

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

 

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

 

		26.17	No additional costs

 

If at the time of, or immediately
after, any transfer by a Lender of any part of its rights, benefits and/or obligations under this Agreement, or any change in the
office through which a Lender lends for the purposes of this Agreement or a Lender’s re-organisation under Clause 26.6, the Borrowers
would be obliged to pay to the Transferee Lender or the successor (as defined in Clause 26.6) or (in the case of a change of lending
office) such Lender under Clauses 5.7, 22.2 or 24.1 any sum in excess of the sum (if any) which it would have been obliged to pay
to such Lender under the relevant clauses in the absence of such transfer, re-organisation or change of office, the Borrowers shall
not be obliged to pay that excess.

 

		26.18	Publication

 

The Bookrunner and/or the Agent
may, subject to the prior written consent of the Borrowers (such consent not to be unreasonably withheld or delayed), publish information
(at the Bookrunner’s or the Agent’s expense) regarding their role and participation under such capacities in the Loan
under this Agreement and use the Guarantor’s logo and trademark in connection with such publication.

 

		26.19	Replacement of a Defaulting Lender

 

		(a)	The Borrowers may, at any time a Lender has become and continues to be a Defaulting Lender, by
giving 5 Business Days’ prior written notice to the Agent and such Lender replace such Lender by requiring such Lender to (and,
to the extent permitted by law, such Lender shall) transfer pursuant to this Clause 26 all (and not part only) of its rights and
obligations under this Agreement to a Lender or other bank, financial institution, trust, Fund or other entity (a “Replacement
Lender”) selected by the Borrowers, and which confirms its willingness to assume and does assume all the obligations,
or all the relevant obligations, of the transferring Lender in accordance with this Clause 26 for a purchase price in cash payable
at the time of transfer which is either:

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		(i)	in an amount equal to the outstanding principal amount of such Lender’s Contribution and all accrued
interest, Break Costs and other amounts payable in relation thereto under the Finance Documents; or

 

		(ii)	in an amount agreed between that Defaulting Lender, the Replacement Lender and the Borrowers and
which does not exceed the amount described in paragraph (i) above.

 

		(b)	Any transfer of rights and obligations of a Defaulting Lender pursuant to this Clause 26.20 shall
be subject to the following conditions:

 

		(i)	the Borrowers shall have no right to replace the Agent or Security Trustee;

 

		(ii)	neither the Agent nor the Defaulting Lender shall have any obligation to the Borrowers to find
a Replacement Lender;

 

		(iii)	the transfer must take place no later than 7 Business Days after the notice referred to in paragraph
(a) above;

 

		(iv)	in no event shall the Defaulting Lender be required to pay or surrender to the Replacement Lender
any of the fees received by the Defaulting Lender pursuant to the Finance Documents; and

 

		(v)	the Defaulting Lender shall only be obliged to transfer its rights and obligations pursuant to
paragraph (a) above once it is satisfied that it has complied with all necessary “know your customer” or other similar
checks under all applicable laws and regulations in relation to that transfer to the Replacement Lender.

 

		(c)	The Defaulting Lender shall perform the checks described in paragraph (b)(v) above as soon as reasonably
practicable following delivery of a notice referred to in paragraph (a) above and shall notify the Agent and the Borrowers when
it is satisfied that it has complied with those checks.

 

		26.20	Excluded Commitments

 

If any Defaulting Lender fails
to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote
of Lenders under the terms of this Agreement within 10 Business Days of that request being made (unless the Borrowers and the Agent
agree to a longer time period in relation to any request):

 

		(a)	its Commitment shall not be included for the purpose of calculating the Total Commitments under
the Loan when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total Commitments
has been obtained to approve that request; and

 

		(b)	its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement
of any specified group of Lenders has been obtained to approve that request.

 

		26.21	Disenfranchisement of Defaulting Lenders

 

		(a)	For so long as a Defaulting Lender has any undrawn Commitment, in ascertaining:

 

		(i)	the Majority Lenders; or

 

		(ii)	whether:

 

		(A)	any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments
under the Loan; or

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		(B)	the agreement of any specified group of Lenders,

 

has been obtained to approve any
request for a consent, waiver, amendment or other vote of Lenders under the Finance documents,

 

that Defaulting Lender’s Commitment
under the Loan will be reduced by the amount of its undrawn Commitment under the Loan and, to the extent that that reduction results
in that Defaulting Lender’s Commitment being zero, that Defaulting Lender shall be deemed not to be a Lender for the purposes of
paragraphs (i) and (ii) above.

 

		(b)	For the purposes of this Clause 26.21 the Agent may assume that the following Lenders are Defaulting
Lenders:

 

		(i)	any Lender which has notified the Agent that it has become a Defaulting Lender;

 

		(ii)	any Lender in relation to which it is aware that any of the events or circumstances referred to
in paragraphs (a) or (b) of the definition of “Defaulting Lender” has occurred,

 

unless it has received notice
to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent
is otherwise aware that the Lender has ceased to be a Defaulting Lender.

 

Variations
and Waivers

 

		27.1	Variations, waivers etc. by Majority Lenders

 

Subject to Clause 27.2, a document
shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or any Creditor Party’s rights or remedies
under such a provision or the general law, only if the document is signed, or specifically agreed to by fax, by the Borrowers,
by the Agent on behalf of the Majority Lenders, by the Agent and the Security Trustee in their own rights, and, if the document
relates to a Finance Document to which a Security Party is party, by that Security Party.

 

		27.2	Variations, waivers etc. requiring agreement of all Lenders

 

However, as regards the following,
Clause 27.1 applies as if the words “by the Agent on behalf of the Majority Lenders” were replaced by the words “by
or on behalf of every Lender and the Swap Bank”:

 

		(a)	a reduction in the Margin;

 

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

 

		(c)	an increase in any Lender’s Commitment;

 

		(d)	a change to the definition of “Majority Lenders”;

 

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

 

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

 

		(g)	any other change or matter as regards which this Agreement or another Finance Document expressly
provides that each Lender’s consent is required.

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		27.3	Exclusion of other or implied variations

 

Except for a document which
satisfies the requirements of Clauses 27.1 and 27.2, no document, and no act, course of conduct, failure or neglect to act, delay
or acquiescence on the part of the Creditor Parties or any of them (or any person acting on behalf of any of them) shall result
in the Creditor Parties or any of them (or any person acting on behalf of any of them) being taken to have varied, waived, suspended
or limited, or being precluded (permanently or temporarily) from enforcing, relying on or exercising:

 

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

 

		(b)	an Event of Default; or

 

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

 

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

 

and there shall not be implied
into any Finance Document any term or condition requiring any such provision to be enforced, or such right or remedy to be exercised,
within a certain or reasonable time.

 

Notices

 

		28.1	General

 

Unless otherwise specifically
provided, any notice under or in connection with any Finance Document shall be given by letter or fax; and references in the Finance
Documents to written notices, notices in writing and notices signed by particular persons shall be construed accordingly.

 

		28.2	Addresses for communications

 

A notice by letter or fax shall
be sent:

 

		(a)	to the Borrowers:	c/o Costamare Shipping Company S.A.

60 Zephyrou
Street and Syngrou Avenue

175 64 Athens

Greece
		 	 	 
		 	 	Fax No: +30
210 940 9051
		 	 	 
		 	 	Attn: CFO
of Costamare Partners

 

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

 

		(c)	to a Mandated Lead Arranger:	At the address below its name in Schedule 2

 

		(d)	to a Swap Bank:	At the address below its name in Schedule 3

 

		(e)	to the Agent, Bookrunner

and Security Trustee:	DNB Bank ASA

8th
Floor,

The Walbrook Building

25 Walbrook

    	84

    	

    

		 	 	London EC4N 8AF

England
		 	 	 
		 	 	Attn: Credit
Middle Office & Agency
		 	 	 
		 	 	Fax No: +44(0)
207 283 5935

 

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

 

		28.3	Effective date of notices

 

Subject to Clauses 28.4 and
28.5:

 

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

 

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

 

		28.4	Service outside business hours

 

However, if under Clause 28.3
a notice would be deemed to be served:

 

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

 

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

 

the notice shall (subject to
Clause 28.5) be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a business day.

 

		28.5	Illegible notices

 

Clauses 28.3 and 28.4 do not
apply if the recipient of a notice notifies the sender within 1 hour after the time at which the notice would otherwise be deemed
to be served that the notice has been received in a form which is illegible in a material respect.

 

		28.6	Valid notices

 

A notice under or in connection
with a Finance Document shall not be invalid by reason that its contents or the manner of serving it do not comply with the requirements
of this Agreement or, where appropriate, any other Finance Document under which it is served if:

 

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

 

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

 

		28.7	Electronic communication

 

Any communication
to be made between the Agent and a Lender or a Swap Bank under or in connection with the Finance Documents may be made by electronic
mail or other electronic means, if the Agent and the relevant Lender or the relevant Swap Bank:

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		(a)	agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

 

		(b)	notify each other in writing of their electronic mail address and/or any other information required
to enable the sending and receipt of information by that means; and

 

		(c)	notify each other of any change to their respective addresses or any other such information supplied
to them.

 

Any electronic communication
made between the Agent and a Lender or a Swap Bank will be effective only when actually received in readable form and, in the case
of any electronic communication made by a Lender or a Swap Bank to the Agent, only if it is addressed in such a manner as the Agent
shall specify for this purpose.

 

		28.8	English language

 

Any notice under or in connection
with a Finance Document shall be in English.

 

		28.9	Communication when Agent is Impaired Agent

 

If the Agent is an Impaired
Agent the parties to this Agreement may, instead of communicating with each other through the Agent, communicate with each other
directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to
be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by
the relevant parties directly. This provision shall not operate after a replacement Agent has been appointed.

 

		28.10	Meaning of “notice”

 

In this Clause 28, “notice”
includes any demand, consent, authorisation, approval, instruction, waiver or other communication.

 

Supplemental

 

		29.1	Rights cumulative, non-exclusive

 

The rights and remedies which
the Finance Documents give to each Creditor Party are:

 

		(a)	cumulative;

 

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

 

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

 

		29.2	Severability of provisions

 

If any provision of a Finance
Document is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or legality
of the other provisions of that Finance Document or of the provisions of any other Finance Document.

 

		29.3	Counterparts

 

A Finance Document may be executed
in any number of counterparts.

    	86

    	

    

		29.4	Third party rights

 

A person who is not a party
to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any
term of this Agreement.

 

Joint
and Several liability

 

		30.1	General

 

All liabilities and obligations
of the Borrowers under this Agreement shall, whether expressed to be so or not, be several and, if and to the extent consistent
with Clause 30.2, joint.

 

		30.2	No impairment of Borrower’s obligations

 

The liabilities and obligations
of a Borrower shall not be impaired by:

 

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

 

		(b)	any Lender, any Swap Bank or the Security Trustee entering into any rescheduling, refinancing or
other arrangement of any kind with any of the other Borrowers;

 

		(c)	any Lender, any Swap Bank or the Security Trustee releasing any of the other Borrowers or any Security
Interest created by a Finance Document; or

 

		(d)	any combination of the foregoing.

 

		30.3	Principal debtors

 

Each Borrower declares that
it is and will, throughout the Security Period, remain a principal debtor for all amounts owing under this Agreement and the Finance
Documents and no Borrowers shall in any circumstances be construed to be a surety for the obligations of any of the other Borrower
under this Agreement.

 

		30.4	Subordination

 

Subject to Clause 30.5, during
the Security Period, no Borrower shall:

 

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

 

		(b)	take or enforce any form of security from any of the other Borrowers or other Security Party for
such an amount, or in any other way seek to have recourse in respect of such an amount against any asset of any of the other Borrowers
or other Security Party; or

 

		(c)	set off such an amount against any sum due from it to any of the other Borrowers or other Security
Party; or

 

		(d)	prove or claim for such an amount in any liquidation, administration, arrangement or similar procedure
involving any of the other Borrowers or other Security Party; or

 

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

 

		30.5	Borrowers’ required action

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If during the Security Period,
the Agent, by notice to a Borrower, requires it to take any action referred to in paragraphs (a) to (e) of Clause 30.4, in relation
to any of the other Borrowers, that Borrower shall take that action as soon as practicable after receiving the Agent’s notice.

 

Law
and Jurisdiction

 

		31.1	English law

 

This Agreement and any non-contractual
obligations arising out of or in connection with it shall be governed by, and construed in accordance with, English law.

 

		31.2	Exclusive English jurisdiction

 

Subject to Clause 31.3, the
courts of England shall have exclusive jurisdiction to settle any Dispute.

 

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

 

Clause 31.2 is for the exclusive
benefit of the Creditor Parties, each of which reserves the right:

 

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

 

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

 

No Borrower shall commence any
proceedings in any country other than England in relation to a Dispute.

 

		31.4	Process agent

 

Each Borrower irrevocably appoints
Mr. Alan Ross at its office for the time being, presently at 58 Mymms Drive, Brookmans Park, Hartfield, Hertfordshire AL9 7AF,
England, to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the
English courts which are connected with a Dispute.

 

		31.5	Creditor Party rights unaffected

 

Nothing in this Clause 31 shall
exclude or limit any right which any Creditor Party may have (whether under the law of any country, an international convention
or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment
or any similar or related matter in any jurisdiction.

 

		31.6	Meaning of “proceedings”

 

In this Clause
31, “proceedings” means proceedings of any kind, including an application for a provisional or protective measure
and a “Dispute” means any dispute arising out of or in connection with this Agreement (including a dispute relating
to the existence, validity or termination of this Agreement) or any non-contractual obligation arising out of or in connection
with this Agreement.

 

THIS AGREEMENT has been entered
into on the date stated at the beginning of this Agreement.

    	88

    	

    

Schedule
1

 

Lenders and Commitments

 

	Lender	Lending Office	Commitment

(US Dollars)
	 	 	 
	DNB Bank ASA	
        8th Floor,

        The Walbrook Building

        25 Walbrook

        London EC4N 8AF

        England

         

        Fax: +44 207 283 5935

         

        Attn: Credit Middle Office & Agency

         
	58,947,367
	Citibank, N.A., London Branch	
        Citigroup Centre

        33 Canada Square

        Canary Wharf

        London E14 5LB

        England

         

        Fax: +30 210 429 2806

         

        Attn: Dimitri Vassilacos

         
	58,947,367
	Credit Suisse AG	
        St. Alban-Graben 1-3

        Basel CH-4002

        Switzerland

         

        Fax: 0041 61 266 7939

         

        Attn: Monica Klapp

	58,947,366

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Schedule
2

 

Mandated Lead Arrangers

 

	Lender	Office
	 	 
	DNB Bank ASA	
        8th Floor

The Walbrook Building

        25 Walbrook

        London EC4N 8AF

        England

         

        Fax: +44 207 283 5935

         

        Attn: Credit Middle Office & Agency

         

	
        Citibank, N.A.,

London Branch

         
	
        Citigroup Centre

        33 Canada Square

        Canary Wharf

        London E14 5LB

        England

         

        Fax: +30 210 429 2806

         

        Attn: Dimitri Vassilacos

         

	Credit Suisse AG	
        St. Alban-Graben 1-3

        Basel CH-4002

        Switzerland

         

        Fax: 0041 61 266 7939

         

        Attn: Monica Klapp

    	90

    	

    

Schedule
3

 

Swap Banks

 

	Swap Bank	Office
	 	 
	DNB Bank ASA	
        8th Floor

        The Walbrook Building

        25 Walbrook

        London EC4N 8AF

        England

         

        Fax: +44 207 283 5935

         

        Attn: Credit Middle Office & Agency

         

	
        Citibank International plc,

London Branch

         
	
        33 Canada Square

        Canary Wharf

        London E14 5LB

        England

         

        Fax: +30 210 429 2806

         

        Attn: Dimitri Vassilacos

         

	Credit Suisse AG	
        St. Alban-Graben 1-3

        Basel CH-4002

        Switzerland

         

        Fax: 0041 61 266 7939

         

        Attn: Monica Klapp

    	91

    	

    

Schedule
4

 

Drawdown Notice

 

		To:	DNB Bank ASA

8th Floor

The Walbrook Building

25 Walbrook

London EC4N 8AF

 

Attention: [Loans Administration]

 

[l]

 

DRAWDOWN NOTICE

 

		1	We refer to the loan agreement (the “Loan Agreement”) dated [l]
2015 and made between (amongst others) ourselves, as joint and several Borrowers, the Lenders, the Mandated Lead Arrangers and
the Swap Banks referred to therein, and yourselves as Agent, Bookrunner and Security Trustee in connection with a term loan and
reducing revolving facility of up to US$176,842,100. Terms defined in the Loan Agreement have their defined meanings when used
in this Drawdown Notice.

 

		2	We request to borrow [Tranche A] [an Advance under Tranche B] as follows:

 

		(a)	Amount: US$[l];

 

		(b)	Drawdown Date: [l];

 

		(c)	Duration of the first Interest Period shall be [l]
months; and

 

		(d)	Payment instructions: account of [l] and numbered [l]
with [l] of [l].

 

		3	We represent and warrant that:

 

		(a)	the representations and warranties in Clause 10 of the Loan Agreement would remain true and not
misleading if repeated on the date of this notice with reference to the circumstances now existing; and

 

		(b)	no Event of Default or Potential Event of Default has occurred or will result from the borrowing
of the Advance.

 

		4	This notice cannot be revoked without the prior consent of the Majority Lenders.

 

[Name of Signatory]

 

 

 

[Director] [Attorney-in-fact]

for and on behalf of

CAPETANISSA MARITIME CORPORATION

JODIE SHIPPING CO.

KAYLEY SHIPPING CO. and

RAYMOND SHIPPING CO.

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Schedule
5

 

Condition Precedent Documents

 

Part A

 

The following are the documents referred
to in Clause 9.1(a).

 

		1	A duly executed original of this Agreement, the Agency and Trust Agreement, the Guarantee, the
Master Agreements and the Master Agreement Assignments (and of each document required to be delivered pursuant thereto).

 

		2	Certified copies of the certificate of incorporation or, as the case may be, certificate of limited
partnership and constitutional documents of each Borrower and the Guarantor.

 

		3	Copies of resolutions of the directors and shareholders of each Borrower and copies of resolutions
of the directors of each Security Party authorising the execution of each of the Finance Documents to which that Borrower or that
Security Party is a party and, in the case of each Borrower, authorising named officers to give the Drawdown Notices and other
notices under this Agreement and in the case of each Borrower ratifying the execution of the Underlying Documents.

 

		4	The original of any power of attorney under which any Finance Document is executed on behalf of
each Borrower and each Security Party.

 

		5	Copies of all consents which each Borrower or any Security Party requires to enter into, or make
any payment under, any Finance Document or any Management Agreement to which it is a party.

 

		6	The originals of any mandates or other documents required in connection with the opening or operation
of the Earnings Accounts.

 

		7	Documentary evidence that the agent for service of process named in Clause 30 has accepted its
appointment.

 

		8	Such documents as the Agent on behalf of, and as instructed by, all Lenders, may require for its
“know your customer” and other customary money laundering checks.

 

		9	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws
of the Marshall Islands, Liberia, England and such other relevant jurisdictions as the Agent may require.

 

		10	A copy of each Approved Charter duly executed by the parties thereto.

 

		11	If the Agent so requires, in respect of any of the documents referred to above not being English,
a certified English translation prepared by a translator approved by the Agent.

 

Part B

 

The following are the documents referred
to in Clause 9.1(b).

 

		1	A duly executed original of the Mortgages, the General Assignments,
the Account Charges and the Approved Charter Assignments (and of each document to be delivered under each of them).

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		2	Documentary evidence that:

 

		(a)	Costamare Inc. wholly owns Costamare Partners and that Costamare Partners is the general partner
of the Guarantor;

 

		(b)	each Ship shall be registered permanently or (as the case may be) provisionally in the name of
the relevant Borrower under an Approved Flag;

 

		(c)	each Ship shall be in the absolute and unencumbered ownership of the relevant Borrower save as
contemplated by the Finance;

 

		(d)	each Ship maintains the classification referred to in Clause 14.3(a) free of all overdue recommendations
and conditions of the relevant Approved Classification Society affecting that Ship’s class;

 

		(e)	the Mortgage in respect of each Ship has or has been duly registered against that Ship as a valid
first preferred or priority ship mortgage in accordance with the laws of the applicable Approved Flag State immediately after the
Drawdown Date of Tranche A;

 

		(f)	each Ship is insured in accordance with the provisions of this Agreement and all requirements therein
in respect of insurances have been complied with; and

 

		(g)	evidence satisfactory to the Agent that each Ship is subject to the relevant Approved Charter.

 

		3	A duly executed original of the Manager’s Undertaking in relation to each Ship.

 

		4	Copies of:

 

		(a)	the document of compliance (DOC) and safety management certificate (SMC) referred to in paragraph
(a) of the definition of the ISM Code Documentation or, if not yet issued, the application in respect thereof, in respect of each
Ship and the Approved Manager certified as true and in effect by the Borrower owning that Ship; and

 

		(b)	the ISPS Code Documentation or, if not yet issued, the application in respect thereof, in respect
of each Ship and the Borrower owning that Ship certified as true and in effect by that Borrower.

 

		5	Evidence satisfactory to the Agent that each Borrower is a direct or, as the case may be, indirect
wholly owned subsidiary of the Guarantor,

 

		6	One valuation of each Ship addressed to the Agent prepared in accordance with Clause 15.

 

		7	A copy of each Underlying Document of each Ship.

 

		8	Documentary evidence that the agent for service of process named in the Finance Documents to which
the Borrower owning a Ship is a party has accepted its appointment.

 

		9	A favourable opinion (at the cost of the Borrowers) from an independent insurance consultant acceptable
to the Agent on such matters relating to the insurances for each Ship as the Agent may require.

 

		10	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws
of the applicable Approved Flag State and such other relevant jurisdictions as the Agent may require.

    	94

    	

    

		11	If the Agent so requires, in respect of any of the documents referred to above not in the English
language, a certified English translation prepared by a translator approved by the Agent.

 

Every copy document delivered under this
Schedule shall be, unless otherwise provided, certified as a true and up to date copy by a director or the secretary (or equivalent
officer) of the relevant Borrower.

    	95

    	

    

Schedule
6

 

Transfer Certificate

 

The Transferor and the Transferee accept
exclusive responsibility for ensuring that this Certificate and the transaction to which it relates comply with all legal and regulatory
requirements applicable to them respectively.

 

To:     DNB Bank ASA for itself
and for and on behalf of the Borrowers, each Security Party, the Security Trustee, each Swap Bank and each Lender, as defined in
the Loan Agreement referred to below.

 

[l]

 

		1	This Certificate relates to a Loan Agreement dated [l]
2015 (as amended and/or supplemented from time to time, the “Loan Agreement”) and made between (1) Capetanissa
Maritime Corporation, Jodie Shipping Co., Kayley Shipping Co., and Raymond Shipping Co. as joint and several borrowers (together,
the “Borrowers”), (2) certain banks and financial institutions as lenders (together in such capacity, the “Lenders”),
(3) certain banks and financial institutions as swap banks (in such capacity, the “Swap Banks”), (4) certain banks
and financial institutions as mandated lead arrangers and (5) DNB Bank ASA as agent (in such capacity, the “Agent”),
Bookrunner and as security trustee (in such capacity, the “Security Trustee”) for a term loan and reducing revolving
facility in an aggregate amount of up to $176,842,100.

 

		2	In this Certificate, terms defined in the Loan Agreement shall, unless the contrary intention appears,
have the same meanings and:

 

“Relevant Parties”
means the Agent, each Borrower, each Security Party, the Security Trustee, each Swap Bank and each Lender;

 

“Transferor”
means [full name] of [lending office]; and

 

“Transferee”
means [full name] of [lending office].

 

		3	The effective date of this Certificate is [l] Provided
that this Certificate shall not come into effect unless it is signed by the Agent on or before that date.

 

		4	The Transferor assigns to the Transferee absolutely all rights and interests (present, future or
contingent) which the Transferor has as Lender under or by virtue of the Loan Agreement and every other Finance Document (other
than a Master Agreement) in relation to [l] per cent. of its Contribution, which percentage
represents $[l].

 

		5	By virtue of this Certificate and Clause 26 of the Loan Agreement, the Transferor is discharged
[entirely from its Commitment which amounts to $[l]] [from [l]
per cent. of its Commitment, which percentage represents $[l]] and the Transferee acquires
a Commitment of $[l].]

 

		6	The Transferee undertakes with the Transferor and each of the Relevant Parties that the Transferee
will observe and perform all the obligations under the Finance Documents (other than a Master Agreement) which Clause 26 of the
Loan Agreement provides will become binding on it upon this Certificate taking effect.

 

		7	The Agent, at the request of the Transferee (which request is hereby made) accepts, for the Agent
itself and for and on behalf of every other Relevant Party, this Certificate as a Transfer Certificate taking effect in accordance
with Clause 26 of the Loan Agreement.

 

		8	The Transferor:

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		(a)	warrants to the Transferee and each Relevant Party that:

 

		(i)	the Transferor has full capacity to enter into this transaction and has taken all corporate action
and obtained all consents which are in connection with this transaction; and

 

		(ii)	this Certificate is valid and binding as regards the Transferor;

 

		(b)	warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances, to
all the rights and interests covered by the assignment in paragraph 4 above; and

 

		(c)	undertakes with the Transferee that the Transferor will, at its own expense, execute any documents
which the Transferee reasonably requests for perfecting in any relevant jurisdiction the Transferee’s title under this Certificate
or for a similar purpose.

 

		9	The Transferee:

 

		(a)	confirms that it has received a copy of the Loan Agreement and each of the other Finance Documents;

 

		(b)	agrees that it will have no rights of recourse on any ground against either the Transferor, the
Agent, the Security Trustee or any Lender in the event that:

 

		(i)	any of the Finance Documents prove to be invalid or ineffective;

 

		(ii)	any Borrower or any Security Party fails to observe or perform its obligations, or to discharge
its liabilities, under any of the Finance Documents;

 

		(iii)	it proves impossible to realise any asset covered by a Security Interest created by a Finance Document,
or the proceeds of such assets are insufficient to discharge the liabilities of that Borrower or Security Party under the Finance
Documents;

 

		(c)	agrees that it will have no rights of recourse on any ground against the Agent, the Security Trustee
or any Lender in the event that this Certificate proves to be invalid or ineffective;

 

		(d)	warrants to the Transferor and each Relevant Party that:

 

		(i)	it has full capacity to enter into this transaction and has taken all corporate action and obtained
all consents which it needs to take or obtain in connection with this transaction; and

 

		(ii)	this Certificate is valid and binding as regards the Transferee; and

 

		(e)	confirms the accuracy of the administrative details set out below regarding the Transferee.

 

		10	The Transferor and the Transferee each undertake with the Agent and the Security Trustee severally,
on demand, fully to indemnify the Agent and/or the Security Trustee in respect of any claim, proceeding, liability or expense (including
all legal expenses) which they or either of them may incur in connection with this Certificate or any matter arising out of it,
except such as are shown to have been mainly and directly caused by the gross and culpable negligence or dishonesty of the Agent’s
or the Security Trustee’s own officers or employees.

 

		11	The Transferee shall repay to the Transferor on demand so much of any sum paid by the Transferor
under paragraph 10 as exceeds one-half of the amount demanded by the Agent or the Security Trustee in respect of a claim, proceeding,
liability or expense which was not reasonably foreseeable at the date of this Certificate; but nothing in this paragraph shall
affect the liability of each of the Transferor and the Transferee to the Agent or the Security Trustee for the full amount demanded
by it.

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		12	This Certificate shall be governed by, and construed in accordance with, English law.

 

	[Name of Transferor]	[Name of Transferee]
	 	 
	By:	By:
	 	 
	Date:	Date:

 

Agent

 

Signed for itself and for and on behalf of
itself

as Agent and for every other Relevant Party

 

DNB BANK ASA

 

By:

 

Date:

    	98

    	

    

Administrative Details of Transferee

 

Name of Transferee:

 

Lending Office:

 

Contact Person

(Loan Administration Department):

 

Telephone:

 

Fax:

 

Contact Person

(Credit Administration Department):

 

Telephone:

 

Fax:

 

Account for payments:

 

Note:     This Transfer Certificate alone
may not be sufficient to transfer a proportionate share of the Transferor’s interest in the security constituted by the Finance
Documents in the Transferor’s or Transferee’s jurisdiction. It is the responsibility of each Lender to ascertain whether any other
documents are required for this purpose.

    	99

    	

    

Schedule
7

 

Designation Notice

 

To:     [l]

 

[l]

 

Dear Sirs

 

Loan agreement dated [l]
2015 (as amended and/or supplemented from time to time, the “Loan Agreement”) made between (inter alia) (i) ourselves
as joint and several Borrowers, (ii) certain banks and financial institutions as Lenders, (iii) certain banks and financial institutions
as Mandated Lead Arrangers, (iv) certain banks and financial institutions as Swap Banks and (v) DNB Bank ASA as Agent, Bookrunner
and Security Trustee in respect of a term loan and reducing revolving facility in an aggregate amount of up to US$176,842,100.

 

We refer to:

 

		1	the Loan Agreement;

 

		2	the Master Agreement dated [l] 2015 (the “Master
Agreement”) made between ourselves and [l]; and

 

		3	a Confirmation delivered pursuant to the Master Agreement and addressed by [l]
to us.

 

In accordance with the terms of the Loan
Agreement, we hereby give you notice of the said Confirmation and hereby confirm that the Transaction evidenced by it will be designated
as a “Designated Transaction” for the purposes of the Loan Agreement and the other Finance Documents.

 

Yours faithfully

 

 

for and on behalf of

CAPETANISSA MARITIME CORPORATION

JODIE SHIPPING CO.

KAYLEY SHIPPING CO. and

RAYMOND SHIPPING CO.

    	100

    	

    

Schedule
8

 

Form of Confidentiality Agreement

 

[Letterhead of Agent]

 

To:

 

		[insert name of Potential Lender]

 

Re:     US$176,842,100 facility

 

	
         

        Company: Capetanissa Maritime Corporation,
        Jodie Shipping Co., Kayley Shipping Co., and Raymond Shipping Co. each a “Company” and, together, the “Companies”)

         

        Date: [l]
        2015

         

        Amount: US$176,842,100

         

        Agent: DBN Bank ASA 

         
	 

 

Dear Sirs

 

We understand that you are considering
participating in the Facility. In consideration of us agreeing to make available to you certain information, by your signature
of a copy of this letter you agree as follows:

 

		(A)	CONFIDENTIALITY

 

		1	Confidentiality Undertaking

 

You undertake:

 

		(a)	to keep all Confidential Information confidential and not to disclose it to anyone, save to the
extent permitted by paragraph (A)2 below and to ensure that all Confidential Information is protected with security measures and
a degree of care that would apply to your own confidential information;

 

		(b)	to keep confidential and not disclose to anyone except as provided for by paragraph (A)2 below
the fact that the Confidential Information has been made available or that discussions or negotiations are taking place or have
taken place between us in connection with the Facility; and

 

		(c)	to use the Confidential Information only for the Permitted Purpose.

 

		2	Permitted
                                         Disclosure

 

We agree that you may disclose
such Confidential Information and such of those matters referred to in paragraph (A)1.2 above as you shall consider appropriate:

    	101

    	

    

		(a)	to members of the Participant Group and their officers, directors, employees, professional advisers
and auditors if any person to whom the Confidential Information is to be given pursuant to this paragraph (A)2(a) is informed in
writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information, except
that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality
of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

 

		(b)	to any person to whom information is required or requested to be disclosed by any governmental,
banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable
law or regulation; and

 

		(c)	with the prior written consent of us and the Companies.

 

		3	Notification
                                         of Disclosure

 

You agree (to the extent permitted
by law and regulation) to inform us:

 

		(a)	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (A)2(b)
above except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its
supervisory or regulatory function; and

 

		(b)	upon becoming aware that Confidential Information has been disclosed in breach of this letter.

 

		4	Return
                                         of Copies

 

If you do not participate in
the Facility and we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently
erase (to the extent technically practicable) all copies of Confidential Information made by you and use your reasonable endeavours
to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases (to the extent technically
practicable) such Confidential Information and any copies made by them, in each case save to the extent that you or the recipients
are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial,
governmental, supervisory or regulatory body or in accordance with internal policy, or where the Confidential Information has been
disclosed under paragraph (A)2(b) above.

 

		5	Continuing
                                         Obligations

 

The obligations in this letter
are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us. Notwithstanding
the previous sentence, the obligations in Part A of this letter shall cease on the earlier of (a) the date on which you become
a party to the Facility Agreement or (b) twelve months after the date of this letter.

 

		6	No
                                         Representation; Consequences of Breach, etc

 

You acknowledge and
agree that:

 

		(a)	neither we nor any of our officers, employees or advisers (each a “Relevant Person”)
(i) make any representation or warranty, express or implied, as to, or assume any responsibility for, the accuracy, reliability
or completeness of any of the Confidential Information or any other information supplied by us or any member of the Group or the
assumptions on which it is based or (ii) shall be under any obligation to update or correct any inaccuracy in the Confidential
Information or any other information supplied by us or any member of the

    	102

    	

    

Group or be otherwise liable
to you or any other person in respect of the Confidential Information or any such information; and

 

		(b)	we or members of the Group may be irreparably harmed by the breach of the terms of this letter
and damages may not be an adequate remedy; each Relevant Person or member of the Group may be granted an injunction or specific
performance for any threatened or actual breach of the provisions of this letter by you.

 

		7	Entire
                                         Agreement; No Waiver; Amendments, etc

 

		(a)	This letter constitutes the entire agreement between us in relation to your obligations regarding
Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

 

		(b)	No failure or delay in exercising any right or remedy under this letter will operate as a waiver
thereof nor will any single or partial exercise of any right or remedy preclude any further exercise thereof or the exercise of
any other right or remedy under this letter.

 

		(c)	The terms of this letter and your obligations under this letter may only be amended or modified
by written agreement between us.

 

		8	Inside
                                         Information

 

You acknowledge that some or
all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated
or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and you undertake
not to use any Confidential Information for any unlawful purpose.

 

		9	Nature
                                         of Undertakings

 

The undertakings given by you
under Part A of this letter are given to us and (without implying any fiduciary obligations on our part) are also given for the
benefit of the Company and each other member of the Group.

 

		(B)	MISCELLANEOUS

 

		10	Third
                                         Party Rights

 

		(a)	Subject to this paragraph (B)1 and to paragraphs (A)6 and (A)9, a person who is not a party to
this letter has no right under the Contracts (Rights of Third Parties) Act 1999 (the “Third Parties Act”) to enforce
or to enjoy the benefit of any term of this letter.

 

		(b)	The Relevant Persons and each member of the Group may enjoy the benefit of the terms of paragraphs
(A)6 and (A)9 subject to and in accordance with this paragraph (B)1 and the provisions of the Third Parties Act.

 

		(c)	Notwithstanding any provisions of this letter, the parties to this letter do not require the consent
of any Relevant Person or any member of the Group to rescind or vary this letter at any time.

 

		11	Governing
                                         Law and Jurisdiction

 

		(a)	This letter and the agreement constituted by your acknowledgement of its terms (the “Letter”)
and any non-contractual obligations arising out of or in connection with it (including any non-contractual obligations arising
out of the negotiation of the transaction contemplated by this Letter) are governed by English law.

    	103

    	

    

		(b)	The courts of England have non-exclusive jurisdiction to settle any dispute arising out of or in
connection with this Letter (including a dispute relating to any non-contractual obligation arising out of or in connection with
either this Letter or the negotiation of the transaction contemplated by this Letter).

 

		12	Definitions

 

In this letter (including
the acknowledgement set out below):

 

“Confidential Information”
means all information relating to any Company, any other Obligor, the Group, the Facility which is provided to you in relation
to the Finance Documents or Facility by us or any of our affiliates or advisers, in whatever form, and includes information given
orally and any document, electronic file or any other way of representing or recording information which contains or is derived
or copied from such information but excludes information that:

 

		(i)	is or becomes public information other than as a direct or indirect result of any breach by you
of this letter; or

 

		(ii)	is identified in writing at the time of delivery as non-confidential by us or our advisers; or

 

		(iii)	is known by you before the date the information is disclosed to you by us or any of our affiliates
or advisers or is lawfully obtained by you after that date, from a source which is, as far as you are aware, unconnected with the
Group and which, in either case, as far as you are aware, has not been obtained in breach of, and is not otherwise subject to,
any obligation of confidentiality.

 

“Facility Agreement”
means the facility agreement entered into or to be entered into in relation to the Facility.

 

“Facility Interest”
means a legal, beneficial or economic interest acquired or to be acquired expressly and specifically in or in relation to the Facility,
whether as initial lender or by way of assignment, transfer, novation, sub-participation (whether disclosed, undisclosed, risk
or funded) or any other similar method.

 

“Finance Documents”
means the documents defined in the Facility Agreement as Finance Documents.

 

“Group” has
the meaning give to it in the Facility Agreement.

 

“Obligor” means
any Company and any Security Party (as that term is defined in the Facility Agreement).

 

“Participant Group”
means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such
term is defined in the Companies Act 2006).

 

“Permitted Purpose”
means considering and evaluating whether to enter into the Facility.

 

“Syndication”
means the primary syndication of the Facility.

 

Please acknowledge your agreement to the
above by signing and returning the enclosed copy.

    	104

    	

    

Yours faithfully

 

 

For and on behalf of

DNB Bank ASA

(in its capacity as Agent)

 

To:     [The Companies]

 

We acknowledge and agree to the above:

 

 

For and on behalf of

[Potential Lender]

Date: [l]

    	105

    	

    

Execution
Pages

 

BORROWERS

 

	SIGNED by Anastassios Gabrielides	) /s/ Anastassios Gabrielides
	for and on behalf of	) Attorney-in-Fact
	CAPETANISSA MARITIME CORPORATION	)

 

	SIGNED by Anastassios Gabrielides	) /s/ Anastassios Gabrielides
	for and on behalf of	) Attorney-in-Fact
	JODIE SHIPPING CO.	)

 

	SIGNED by Anastassios Gabrielides	) /s/ Anastassios Gabrielides
	for and on behalf of	) Attorney-in-Fact
	KAYLEY SHIPPING CO.	)

 

	SIGNED by Anastassios Gabrielides	) /s/ Anastassios Gabrielides
	for and on behalf of	) Attorney-in-Fact
	RAYMOND SHIPPING CO.	)

 

LENDERS

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	DNB BANK ASA	)

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	CITIBANK, N.A.,	)
	LONDON BRANCH	)

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	CREDIT SUISSE AG	)

 

SWAP BANKS

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	DNB BANK ASA	)

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	CITIBANK INTERNATIONAL plc.	)
	LONDON BRANCH	)

    	106

    	

    

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	CREDIT SUISSE AG	)

 

MANDATED LEAD ARRANGERS

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	DNB BANK ASA	)

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	CITIBANK, N.A.,	)
	LONDON BRANCH	)

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	CREDIT SUISSE AG	)

 

AGENT 

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	DNB BANK ASA	)

 

SECURITY TRUSTEE

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	DNB BANK ASA	)

 

BOOKRUNNER

 

	SIGNED by Marinos Papadopoulos	) /s/ Marinos Papadopoulos
	for and on behalf of	) Attorney-in-Fact
	DNB BANK ASA	)

 

	Witness to the above	) /s/ Theocharis Almpanidis
	signatures:	)

 

Name: Theocharis Almpanidis

 

Address: Watson, Farley & Williams

	107

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