Document:

RIGHT OF FIRST REFUSAL AGREEMENT

      This Right of First Refusal Agreement (this "Agreement") is made effective
as of , 2005 among: (a) Stealth Maritime Corporation S.A., a Liberian
corporation ("Stealth Maritime"); Harry N. Vafias, an individual residing at
Hydras 5, Kifissias, Athens, Greece (together with Stealth Maritime, the
"Grantors"); and (b) StealthGas Inc., a Marshall Islands company (the
"Company").

                                   BACKGROUND

      A.   The Company and its vessel owning subsidiaries have entered into that
           certain management agreement (the "Management Agreement") with
           Stealth Maritime whereby Stealth Maritime is responsible for the
           commercial, technical and strategic management of vessels owned by
           the Company.

      B.   The Company and its vessel owning subsidiaries desire to enter into
           an amended and restated management agreement, (the "Amended and
           Restated Management Agreement"), amending and restating the terms of
           and conditions of the Management Agreement governing the technical
           and commercial management of vessels owned by the Company.

      C.   In order to induce the Company to enter into the Amended and Restated
           Management Agreement and to facilitate the acquisition by the Company
           of additional vessels, which will also become subject to the Amended
           and Restated Management Agreement, each of the Grantors desires to
           grant the Company a right of first refusal to purchase or charter-in
           any liquefied petroleum gas vessels (a "Subject Vessel") which any of
           the Grantors, or any entity with respect to which Harry N. Vafias is
           an executive officer, director or the principal shareholder, may
           consider for acquisition or chartering-in in the future.

                                   AGREEMENT

      In order to induce the Company to enter into the Amended and Restated
Management Agreement and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Grantors and the Company
agree to the following:

      1.   Vessel Acquisition Restriction, Etc. Each of the Grantors agrees with
the Company that, from the date hereof and so long as: (i) Stealth Maritime, or
any entity with respect to which Harry N. Vafias is an executive officer,
director or the principal shareholder, manages vessels owned or chartered-in by
the Company and/or (ii) Harry N. Vafias is an executive officer or director of
the Company, it will (and Harry N. Vafias will ensure that each entity with
respect to which he is an executive officer, director or the principal
shareholder will):

            a.  promptly notify the Company of any acquisition or proposed
                acquisition by such Grantor, or by any entity with respect to
                which Harry N. Vafias is an executive officer, director or the
                principal shareholder, of a Subject Vessel by delivering a
                notice to the Company, advising it of the details of the
                acquisition or proposed acquisition of a Subject Vessel,
                including its terms, and offering to sell the Subject Vessel to
                the Company on substantially the same terms plus any costs of
                the Subject Vessel's acquisition and net costs of carrying the
                Subject Vessel since its acquisition; and

            b.  promptly notify the Company of any chartering-in or proposed
                chartering-in by such Grantor, or by any entity with respect to
                which Harry N. Vafias is an executive officer, director or the
                principal shareholder, of a Subject Vessel by delivering a
                notice to the Company, advising it of the details of the any
                chartering-in or proposed chartering-in of a Subject

                Vessel, including its terms, and offering the opportunity of
                chartering-in the Subject Vessel to the Company on substantially
                the same terms.

         2. Response Notice. Within five (5) business days after receipt of any
notice referred to in Section 1(a) or 1(b) above, the Company will have the
right, but not the obligation, to deliver to the Grantors a notice (a "Response
Notice") that states whether the Company wishes, as the case may be, either (x)
to purchase the Subject Vessel described in the notice referred to in Section
1(a) above upon the terms stated therein and subject to the negotiation and
execution of a memorandum of agreement or other contract of sale or (y) to
charter-in the Subject Vessel described in the notice referred to Section 1(b)
above upon the terms stated therein and subject to the negotiation and execution
of a charter party agreement. If the Company wishes to purchase or charter-in,
as the case may be, the Subject Vessel, the Company will have forty-five days
(45) after delivery of its Response Notice to complete the acquisition or enter
into a charter party agreement, as the case may be. If the Company fails to
deliver a Response Notice within the aforementioned five (5) business days, then
the Company will be deemed to have declined to purchase or charter-in, as the
case may be, the Subject Vessel and each of the Grantors, or any entity with
respect to which Harry N. Vafias is an executive officer, director or the
principal shareholder, will have the right to own and operate or charter-in the
same. The Company will have the right to designate any other entity to acquire
or charter-in the Subject Vessel so long as such entity is an affiliate of the
Company. The Company shall have no right to assign its rights hereunder except
as provided in this Section 2.

         3. Notices. All notices, requests, demands and other communications to
any party hereunder shall be in writing (including prepaid overnight courier,
facsimile transmission, or similar writing) and shall be given to such party at
its respective address or facsimile number set forth below or at such other
address or facsimile numbers as such party may hereafter specify for the purpose
by notice to the other party hereto. Each such notice, request or other
communication shall be effective (i) if given by facsimile, when such facsimile
is transmitted to the facsimile number specified in this Section 3 and
telephonic confirmation of receipt thereof is obtained or (ii) if given by mail,
prepaid overnight courier or any other means, when received at the address
specified in this Section or when delivery at such address is refused.

Notices to the Grantors shall be made as follows:

           Stealth Maritime
           Appollon Business Center - Building No. 2
           331, Kifissias Avenue, Kifisia
           14561, Athens, Greece
           Phone: +30 210 625 2849
           Fax: +30 210 625 2817

Notices to the Company shall be made as follows:

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           StealthGas Inc.
           331, Kifissias Avenue, Kifisia
           14561, Athens, Greece
           Phone: +30 210 625 2849
           Fax: +30 210 625 0018-019

         4. Governing Law. This Agreement and the rights and obligations of the
parties hereto shall be governed by and construed in accordance with the laws of
England.

         5. Further Assurances. Each of the Grantors agrees to execute,
acknowledge and deliver all such instruments and take all such actions as the
Company from time to time may reasonably request in order to further effectuate
the purposes of this Agreement and to carry out the terms hereof and to better
assure and confirm to the Company its rights, powers and remedies hereunder.

         6. Binding Effect; Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and to their respective heirs,
executors, administrators, successors and permitted assigns. This Agreement is
not assignable by either party without the prior written consent of the other
party except as provided in Section 2 hereof.

         7. Severability. If any term, covenant or condition of this Agreement
is held to be invalid, illegal or unenforceable in any respect, then this
Agreement shall be construed as if such invalid, illegal, or unenforceable
provision or part of a provision had never been contained in this Agreement.

         8. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of such
counterparts together shall constitute one agreement. To facilitate execution of
this Agreement, the parties may execute and exchange counterparts of signature
pages by telephone facsimile.

                            [Signature page follows.]

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         IN WITNESS WHEREOF, the parties hereto have executed or caused this
Agreement to be executed as of the date set forth above.

                                    STEALTH MARITIME CORPORATION S.A.

                                    By:
                                        ----------------------------------------
                                    Name:
                                    Title:

                                    --------------------------------------------
                                    Harry N. Vafias

                                    STEALTHGAS INC.

                                    By:
                                       -----------------------------------------
                                    Name:
                                    Title:--------------------------------------------------------------------------------

                                 STEALTHGAS INC.

                          2005 EQUITY COMPENSATION PLAN

--------------------------------------------------------------------------------

1.       Purpose of the Plan

         The purpose of this 2005 Equity Compensation Plan (the "Plan") is to
advance the interests of the Company and its stockholders by providing a means
(a) to attract, retain, and reward directors, officers, other employees and
persons who provide services to the Company and its Subsidiaries, and to enable
such persons to acquire or increase a proprietary interest in the Company in
order to promote a closer identity of interests between such persons and the
Company's stockholders, (b) to link compensation to measures of the Company's
performance in order to provide additional incentives, including stock-based
incentives and cash-based incentives, to such persons for the creation of
stockholder value, and (c) to enable such persons to acquire or increase a
proprietary interest in the Company in order to promote a closer identity of
interests between such persons and the Company's stockholders.

2.       Definitions

         Capitalized terms used in the Plan and not defined elsewhere in the
Plan shall have the meaning set forth in this Section.

         2.1 "Award" means a compensatory award made pursuant to the Plan
pursuant to which a Participant receives, or has the opportunity to receive
Shares or cash.

         2.2 "Award Agreement" means a written document prescribed by the
Committee and provided to a Participant evidencing the grant of an Award under
the Plan.

         2.3 "Beneficiary" means the person(s) or trust(s) entitled by will or
the laws of descent and distribution to receive any rights with respect to an
Award that survive such Participant's death provided that if at the time of a
Participant's death, the Participant had on file with the Committee a written
designation of a person(s) or trust(s) to receive such rights, then such
person(s) (if still living at the time of the Participant's death) or trust(s)
shall be the "Beneficiary" for purposes of the Plan.

         2.4 "Board" means the Board of Directors of the Company.

         2.5 "Committee" means the committee appointed by the Board to
administer the Plan or the Board, where the Board is acting as the Committee or
performing the functions of the Committee, as set forth in Section 3.

         2.6 "Company" means StealthGas Inc., a corporation organized under the
laws of the Republic of the Marshall Islands.

         2.7 "Participant" means any employee or director who has been granted
an Award under the Plan.

         2.8 "Shares" means common shares of the Company and such other
securities as may be substituted or resubstituted for Shares pursuant to Section
6.

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         2.9 "Subsidiary" means an entity that is, either directly or through
one or more intermediaries, controlled by the Company.

3.       Administration

         3.1 Committee. The Plan shall be administered by the Compensation
Committee of the Board, unless the Board shall appoint a different committee.
Other provisions of the Plan notwithstanding, the Board may perform any function
of the Committee under the Plan, and that authority specifically reserved to the
Board under the terms of the Plan, the Company's Articles of Incorporation,
By-Laws, or applicable law shall be exercised by the Board and not by the
Committee. The Board shall serve as the Committee in respect of any Awards made
to any director of the Company who is not otherwise employed by the Company.

         3.2 Powers and Duties of Committee. In addition to the powers and
duties specified elsewhere in the Plan, the Committee shall have full authority
and discretion to:

             (a) adopt, amend, suspend, and rescind such rules and regulations
and appoint such agents as the Committee may deem necessary or advisable to
administer the Plan;

             (b) correct any defect or supply any omission or reconcile any
inconsistency in the Plan and to construe and interpret the Plan and any Award,
rules and regulations, Award Agreement, or other instrument hereunder;

             (c) make determinations relating to eligibility for and
entitlements in respect of Awards, and to make all factual findings related
thereto; and

             (d) make all other decisions and determinations as may be required
under the terms of the Plan or as the Committee may deem necessary or advisable
for the administration of the Plan. All determination and decisions of the
Committee shall be final and binding upon a Participant or any person claiming
any rights under the Plan from or through any Participant, and the Participant
or such other person may not further pursue his or her claim in any court of law
or equity or other arbitral proceeding.

             (e) Delegation by Committee. Except to the extent prohibited by
applicable law or the applicable rules of a stock exchange, the Committee may
delegate, on such terms and conditions as it determines in its sole and absolute
discretion, to one or more senior executives of the Company (i) the authority to
make grants of Awards to officers (other than executive officers) and employees
of the Company and any Subsidiary and (ii) other administrative
responsibilities. Any such allocation or delegation may be revoked by the
Committee at any time.

         3.3 Limitation of Liability. Each member of the Committee shall be
entitled to, in good faith, rely or act upon any report or other information
furnished to him by any officer or other employee of the Company or any
Subsidiary, the Company's independent certified public accountants, or any
executive compensation consultant, legal counsel, or other professional retained
by the Company to assist in the administration of the Plan. No member of the
Committee, nor any officer or employee of the Company acting on behalf of the
Committee, shall be personally liable for any action, determination, or
interpretation taken or made in good faith with respect to the Plan, and all
members of the Committee and any officer or employee of the Company acting on
behalf of the Committee or members thereof shall, to the extent permitted by
law, be fully indemnified and protected by the Company with respect to any such
action, determination, or interpretation.

                                       2

4.       Limitations on Awards

         4.1 Aggregate Number of Shares Available for Awards. The aggregate
number of Shares for which Awards may be granted under this Plan shall not
exceed 10% of the number of Shares issued and outstanding at the time any Award
is granted. Awards made under this Plan which are forfeited (including a
repurchase or cancellation of Shares subject thereto by the Company in exchange
for the price, if any, paid to the Company for such Shares, or for their par or
other nominal value), cancelled or have expired, shall be disregarded for
purposes of the preceding sentence.

         4.2 Type of Shares Deliverable. The Shares delivered in connection with
Awards may consist, in whole or in part, of authorized and unissued Shares, or
Shares acquired in the market for the account of a Participant.

5.       Awards

         5.1 Eligibility. The Committee shall have the discretion to select
Award recipients from among the following categories of eligible recipients: (i)
individuals who are employees (including officers) of the Company or any
Subsidiary, (ii) individuals who are members of the Board and not otherwise
employed by the Company or any Subsidiary, (iii) any other individual or entity
who provides substantial personal services to the Company or any Subsidiary,
(iv) any individual who has agreed to become an employee of the Company or a
Subsidiary, provided that no such person may receive any payment or exercise any
right relating to an Award until such person has commenced employment, and (v)
individuals formerly employed by the Company or any Subsidiary as compensation
in respect of their employment with the Company or any Subsidiary.

         5.2 Type of Awards. The Committee shall have the discretion to
determine the type of Awards to be granted under the Plan. Such Awards may be in
a form payable in either Shares or cash, including, but not limited to, options
to purchase Shares, restricted Shares, bonus Shares, appreciation rights, share
units, performance units and dividend equivalents. The Committee is authorized
to grant Awards as a bonus, or to grant Awards in lieu of obligations of the
Company or any Subsidiary to pay cash or grant other awards under other plans or
compensatory arrangements, to the extent permitted by such other plans or
arrangements. Shares issued pursuant to an Award in the nature of a purchase
right (e.g., options) shall be purchased for such consideration, paid for at
such times, by such methods, and in such forms, including cash, Shares, other
Awards, or other consideration, as the Committee shall determine.

         5.3 Terms and Conditions of Awards. The Committee shall determine the
size of each Award to be granted (including, where applicable, the number of
Shares to which an Award will relate), and all other terms and conditions of
each such Award (including, but not limited to, any exercise price, grant price,
or purchase price, any restrictions or conditions relating to transferability,
forfeiture, exercisability, or settlement of an Award, and any schedule or
performance conditions for the lapse of such restrictions or conditions, and
accelerations or modifications thereof, based in each case on such
considerations as the Committee shall determine). The Committee may determine
whether, to what extent, and under what circumstances an Award may be settled,
or the exercise price of an Award may be paid, in cash, Shares, other Awards, or
other consideration, or an Award may be canceled, forfeited, or surrendered.

         5.4 Option Repricing. As to any Award granted as an option to purchase
Shares or an appreciation right payable in Shares, the Committee is authorized
to subsequently reduce the applicable exercise price relating to such Award, or
take such other action as may be considered a repricing of such Award under
generally accepted accounting principles.

                                       3

         5.5 Stand-Alone, Additional, Tandem, and Substitute Awards. Awards
granted under the Plan may, in the discretion of the Committee, be granted
either alone or in addition to, in tandem with, or in substitution or exchange
for, any other Award or any award granted under another plan of the Company, any
Subsidiary, or any business entity to be acquired by the Company or a
Subsidiary, or any other right of a Participant to receive payment from the
Company or any Subsidiary and in granting a new Award, the Committee may
determine that the value of any surrendered Award or award may be applied to
reduce the exercise price of any option or appreciation right or purchase price
of any other Award.

6.       Adjustments

         In the event of any change in the outstanding Shares by reason of any
Share dividend or split, reorganization, recapitalization, merger, amalgamation,
consolidation, spin-off, combination or exchange of Shares, repurchase,
liquidation, dissolution or other corporate exchange, any large, special and
non-recurring dividend or distribution to stockholders, or other similar
corporate transaction, the Committee may make such substitution or adjustment,
if any, as it deems to be equitable and in order to preserve, without enlarging,
the rights of Participants, as to (i) the number and kind of Shares which may be
delivered in connection with Awards granted thereafter, (ii) the number and kind
of Shares subject to or deliverable in respect of outstanding Awards, and (iii)
the exercise price, grant price or purchase price relating to any Award. In
addition, the Committee is authorized to make adjustments in the terms and
conditions of, and the criteria included in, Awards (including cancellation of
Awards in exchange for the intrinsic (i.e., in-the-money) value, if any, of the
vested portion thereof, substitution of Awards using securities or other
obligations of a successor or other entity, acceleration of the expiration date
for Awards, or adjustment to performance goals in respect of Awards) in
recognition of unusual or nonrecurring events (including events described in the
preceding sentence, as well as acquisitions and dispositions of businesses and
assets) affecting the Company, any Subsidiary or any business unit, or the
financial statements of the Company or any Subsidiary, or in response to changes
in applicable laws, regulations, or accounting principles. Notwithstanding the
foregoing, if any such event will result in the acquisition of all or
substantially all of the Company's outstanding Shares, then if the document
governing such acquisition (e.g., merger agreement) specifies the treatment of
outstanding Awards, such treatment shall govern without the need for any action
by the Committee.

7.       General Provisions

         7.1 Compliance with Laws and Obligations. The Company shall not be
obligated to issue or deliver Shares in connection with any Award or take any
other action under the Plan in a transaction subject to the registration
requirements of any applicable securities law, any requirement under any listing
agreement between the Company and any securities exchange or automated quotation
system, or any other law, regulation, or contractual obligation of the Company,
until the Company is satisfied that such laws, regulations, and other
obligations of the Company have been complied with in full. Certificates
representing Shares issued under the Plan will be subject to such stop-transfer
orders and other restrictions as may be applicable under such laws, regulations,
and other obligations of the Company, including any requirement that a legend or
legends be placed thereon.

         7.2 Limitations on Transferability. Awards and other rights under the
Plan will not be transferable by a Participant except to a Beneficiary in the
event of the Participant's death (to the extent any such Award, by its terms,
survives the Participant's death), and, if exercisable, shall be exercisable
during the lifetime of a Participant only by such Participant or his guardian or
legal representative; provided, however, that such Awards and other rights may
be transferred during the lifetime of the Participant, for purposes of the
Participant's estate planning or other purposes consistent with the purposes of
the Plan (as determined by the Committee), and may be exercised by such
transferees in accordance with the terms of such Award, but only if and to the
extent permitted by the Committee. Awards and other rights under the Plan may
not be pledged,

                                       4

mortgaged, hypothecated, or otherwise encumbered, and shall not be subject to
the claims of creditors. A Beneficiary, transferee, or other person claiming any
rights under the Plan from or through any Participant shall be subject to all
terms and conditions of the Plan and any Award Agreement applicable to such
Participant, except as otherwise determined by the Committee, and to any
additional terms and conditions deemed necessary or appropriate by the
Committee.

         7.3 No Right to Continued Employment; Leaves of Absence. Neither the
Plan, the grant of any Award, nor any other action taken hereunder shall be
construed as giving any employee, consultant, director, or other person the
right to be retained in the employ or service of the Company or any of its
Subsidiaries (for the vesting period or any other period of time), nor shall it
interfere in any way with the right of the Company or any of its Subsidiaries to
terminate any person's employment or service at any time. Unless otherwise
specified in the applicable Award Agreement, (i) an approved leave of absence
shall not be considered a termination of employment or service for purposes of
an Award under the Plan, and (ii) any Participant who is employed by or performs
services for a Subsidiary shall be considered to have terminated employment or
service for purposes of an Award under the Plan if such Subsidiary is sold or no
longer qualifies as a Subsidiary of the Company, unless such Participant remains
employed by the Company or another Subsidiary.

         7.4 Taxes. The Company and any Subsidiary is authorized to withhold
from any delivery of Shares in connection with an Award, any other payment
relating to an Award, or any payroll or other payment to a Participant, amounts
of withholding and other taxes due or potentially payable in connection with any
transaction involving an Award, and to take such other action as the Committee
may deem advisable to enable the Company, its Subsidiaries and Participants to
satisfy obligations for the payment of withholding taxes and other tax
obligations relating to any Award. This authority shall include authority to
withhold Shares or receive or accept Shares by way of repurchase, Participant
services, or other consideration and to make cash payments in respect thereof in
satisfaction of withholding tax obligations.

         7.5 Changes to the Plan and Awards. The Board may amend, suspend,
discontinue, or terminate the Plan or the Committee's authority to grant Awards
under the Plan without the consent of stockholders or Participants, except that
any amendment shall be subject to the approval of the Company's stockholders at
or before the next annual meeting of stockholders for which the record date is
after the date of such Board action if such stockholders approval is required by
any applicable law, regulation or stock exchange rule, and the Board may
otherwise, in its discretion, determine to submit other such amendments to
stockholders for approval; provided, however, that, without the consent of an
affected Participant, no such action may materially impair the rights of such
Participant under any Award theretofore granted. The Committee may amend,
suspend, discontinue, or terminate any Award theretofore granted and any Award
Agreement relating thereto; provided, however, that, without the consent of an
affected Participant, no such action may materially impair the rights of such
Participant under such Award. Any action taken by the Committee pursuant to
Section 6 shall not be treated as an action described in this Section 7.5.

         7.6 No Right to Awards; No Shareholder Rights. No Participant or other
person shall have any claim to be granted any Award under the Plan, and there is
no obligation for uniformity of treatment of Participants, employees,
consultants, or directors. No Award shall confer on any Participant any of the
rights of a shareholder of the Company unless and until Shares are duly issued
or transferred and delivered to the Participant in accordance with the terms of
the Award.

         7.7 Unfunded Status of Awards; Creation of Trusts. The Plan is intended
to constitute an "unfunded" plan for incentive and deferred compensation. With
respect to any payments not yet made to a Participant pursuant to an Award,
nothing contained in the Plan or any Award shall give any such Participant any
rights that are greater than those of a general creditor of the Company;
provided, however, that the Committee may authorize the creation of trusts or
make other arrangements to meet the Company's obligations

                                       5

under the Plan to deliver cash, Shares, other Awards, or other consideration
pursuant to any Award, which trusts or other arrangements shall be consistent
with the "unfunded" status of the Plan unless the Committee otherwise
determines.

         7.8 Nonexclusivity of the Plan. Neither the adoption of the Plan by the
Board nor the submission of the Plan or of any amendment to stockholders for
approval shall be construed as creating any limitations on the power of the
Board to adopt such other compensatory arrangements as it may deem desirable,
including the granting of awards otherwise than under the Plan, and such
arrangements may be either applicable generally or only in specific cases.

         7.9 Successors and Assigns. The Plan and Award Agreements may be
assigned by the Company to any successor to the Company's business. The Plan and
any applicable Award Agreement shall be binding on all successors and assigns of
the Company and a Participant, including any permitted transferee of a
Participant, the Beneficiary or estate of such Participant and the executor,
administrator or trustee of such estate, or any receiver or trustee in
bankruptcy or representative of the Participant's creditors.

         7.10 Governing Law. The Plan and all Award Agreements shall be governed
by and construed in accordance with the laws of the Republic of the Marshall
Islands, without giving effect to any choice of law or conflict of law provision
or rule that would cause the application of the laws of any jurisdiction other
than the Republic of the Marshall Islands.

         7.11 Severability of Provisions. If any provision of the Plan shall be
held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provisions hereof, and the Plan shall be construed and enforced
as if such provisions had not been included.

         7.12 Plan Termination. Unless earlier terminated by the Board, the Plan
shall terminate on the day before the tenth anniversary of the later of the date
the Company's stockholders originally approved the Plan (August __, 2005) or the
date of any subsequent shareholder approval of the Plan. Upon any such
termination of the Plan, no new authorizations of grants of Awards may be made,
but then-outstanding Awards shall remain outstanding in accordance with their
terms, and the Committee otherwise shall retain its full powers under the Plan
with respect to such Awards.

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