Document:

Exhibit 4.1

	
1. Date of Agreement

 

 

 

	
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) STANDARD SHIP MANAGEMENT AGREEMENT CODE NAME:

"SHIPMAN 98"

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

Name

 

Place of registered office

 

 

Law of registry

 

 

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

 

Dynagas Ltd.

Name

 

 

 

 

Poseidonos Ave. & 2 Foivis Street

166-74 Glyfada, Athens, Greece

Place of registered office

 

 

Law of Registry

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

 

 

	
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)

 

NO

	
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))

 

 

	
14. Owners' Insurance (state alternative (i), (ii) or (iii) of Cl. 6.3)

 

6.3 (ii)

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

 

See Clause 23

 

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

 

As per applicable Agreement

 

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

 

19.1

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

 

 

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

 

Dynagas Ltd.

Poseidonos Ave. & 2 Foivis Street

166-74 Glyfada, Athens, Greece

Email: lngcoordination@dynagas.com

Fax: +30-2109680571

 

It is mutually agreed between the party stated in Box 2 and the party stated in Box 3 that this Agreement consisting of PART 1 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 1 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)

For and on behalf of the Owners:

 

 

Authorised Signatory

 

	
Signature(s) (Managers)

For and behalf of the Manager:

 

 

 

"SHIPMAN 98" Standard Ship Management Agreement

	1.	Definitions

In this Agreement save where the context otherwise requires, the following words and expressions shall have the meanings hereby assigned to them.

"Owners" means the party identified in Box 2.

"Managers" means the party identified in Box 3.

"Vessel" means the vessel or vessels details of which are set out in Annex "A" attached hereto.

"Crew" means the Master, officers and ratings employed on the Vessel from time to time.

"Crew Support Costs" means all expenses of a general nature which are not particularly referable to any individual vessel for the time being managed by the Managers and which are incurred by the Managers for the purpose of providing an efficient and economic management service and, without prejudice to the generality of the foregoing, shall include the cost of crew standby pay, training schemes for officers and ratings, cadet training schemes, sick pay, study pay, recruitment and interviews.

"Severance Costs" means the costs which the employers are legally obliged to pay to or in respect of the Crew as a result of the early termination of any employment contract for service on the Vessel. "Crew Insurances" means insurances against crew risks which shall include but not be limited to death, sickness, repatriation, injury, shipwreck unemployment indemnity and loss of personal effects.

"Management Services" means the services specified in sub-clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12.

"ISM Code" means the International Management Code for the Safe Operation of Ships and for Pollution Prevention as adopted by the International Maritime Organization (IMO) by resolution A.741(18) or any subsequent amendment thereto.

"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.

	2.	Appointment of Managers

With effect from the day and year stated in Box 4 and continuing unless and until terminated provided herein, the Owners hereby appoint the Managers and the Managers hereby agree to act as the managers of the Vessel in accordance with the Management Services.

	3.	Basis of Agreement

Subject to the terms and conditions herein provided, during the period of this Agreement, the Managers shall carry out Management Services in respect of the Vessel as agents for and on behalf of the Owners. The Managers shall have authority to take such actions as they may from time to time in their absolute discretion consider to be necessary to enable them to perform this Agreement in accordance with sound ship management practice.

	3.1	Crew Management

(only applicable if agreed according to Box 5)

The Managers shall provide suitably qualified Crew for the Vessel as required by the Owners in accordance with the STCW 95 requirements, provision of which includes but is not limited to the following functions:

	(i)	selecting and engaging the Vessel's Crew, including payroll arrangements, pension administration when required, and insurances for the Crew other than those mentioned in Clause 6;

	(ii)	ensuring that the applicable requirements of the law of the flag of the Vessel are satisfied in respect of manning levels, rank, qualification and certification of the Crew and employment regulations including Crew's tax, social insurance, discipline and other requirements;

	(iii)	ensuring that all members of the Crew have passed a medical examination with a qualified doctor certifying that they are fit for the duties for which they are engaged and are in possession of valid medical certificates issued in accordance with appropriate flag State requirements. In the absence of applicable flag State requirements the medical certificate shall be dated not more than three months prior to the respective Crew members leaving their country of domicile and maintained for the duration of their service on board the Vessel;

	(iv)	ensuring that the Crew shall have a command of the English language of a sufficient standard to enable them to perform their duties safely;

	(v)	arranging transportation of the Crew, including 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;

	(vii)	keeping and maintaining full and complete records of any 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 otherwise agreed.

	3.2	Technical Management

(only applicable if agreed according to Box 6)

The Managers shall provide technical management which includes, but is not limited to, the following functions:

	(i)	provision of competent personnel to supervise the maintenance and general efficiency of the Vessel;

	(ii)	arrangement and supervision of dry dockings, repairs, alterations and the upkeep of the Vessel to the standards required by the Owners provided that the Managers shall be entitled to incur the necessary expenditure to ensure that the Vessel will comply with the law of the flag of the Vessel and of the places where she trades, and all requirements and recommendations of the classification society;

	(iii)	arrangement of the supply of necessary stores, spares and lubricating oil;

	(iv)	appointment of surveyors, service engineers, and technical consultants as the Managers may consider from time to time to be necessary;

	(v)	development, implementation and maintenance of a Safety Management System (SMS) in accordance with the ISM Code (see sub-clauses 4.2 and 5.3) and a Planned Maintenance System;

	(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, obtaining and / or 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

(only applicable if agreed according to Box 7)

The Managers shall provide the commercial operation of the Vessel, as required by the Owners, which includes, but is not limited to, the following functions;

	(i)	providing chartering services in accordance with the Owners' instructions which include, but are not limited to, developing and  seeking and negotiating employment for the Vessel and the conclusion (including the execution thereof) of charter parties or other contracts relating to the employment of the Vessel. If such a contract exceeds the period stated in Box 13, consent thereto in writing shall first be obtained from the Owners.

	(ii)	arranging of the proper payment to Owners or their nominees of all hire and/or freight revenues or other moneys of whatsoever nature to which Owners may be entitled arising out of the employment of or otherwise in connection with the Vessel;.

	(iii)	providing voyage estimates and accounts and calculating of hire, freights, demurrage and/or despatch moneys due from or due to the charterers of the Vessel;

	(iv)	issuing of voyage instructions and monitoring voyage performance;

	(v)	appointing agents;

	(vi)	appointing stevedores;

	(vii)	arranging surveys associated with the commercial operation of the Vessel;

	(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)	conducting Ship Shore Compatibility studies and procuring and arranging for port/terminal 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'

(only applicable if agreed according to Box 8)

The Managers shall arrange insurances in accordance with Clause 6, on such terms and conditions as the Owners shall have instructed or agreed, in particular regarding, conditions, insured values, deductibles and franchises.

	3.5	Accounting Services

(only applicable if agreed according to Box 9)

The Managers shall:

	(i)	establish an accounting system which meets the reasonable requirements of the Owners and provide regular accounting services, supply regular reports and records,

	(ii)	maintain the records of all costs and expenditure incurred as well as data necessary or proper for the settlement of accounts between the parties.

	3.6	Sale or Purchase of the Vessel

(only applicable if agreed according to Box 10)

The Managers shall, in accordance with the Owners' instructions, supervise the sale or purchase of the Vessel, including the performance of any sale or purchase agreement, but not including negotiation of the same.

	3.7	Provisions

(only applicable if agreed according to Box 11)

The Managers shall arrange for the supply of provisions.

	3.8	Bunkering

(only applicable if agreed according to Box 12)

The Managers shall arrange for the provision of bunker fuel of the quality specified by the Owners as required for the Vessel's trade.

	4.	Managers' Obligations

	4.1	The Managers undertake to use their best endeavours to provide the agreed Management Services as agents for and on behalf of the Owners in accordance with sound ship management practice and to protect and promote the interests of the Owners in all matters relating to the provision of services hereunder. Provided, however, that the Managers in the performance of their management responsibilities under this Agreement shall be entitled to have regard to their overall responsibility in relation to all vessels as may from time to time be entrusted to their management and in particular, but without prejudice to the generality of the foregoing, the Managers shall be entitled to allocate available supplies, manpower and services in such manner as in the prevailing circumstances the Managers in their absolute discretion consider to be fair and reasonable.

	4.2	Where the Managers are providing Technical Management in accordance with sub-clause 3.2, they shall procure that the requirements of the law of the flag and Charterers of the Vessel are satisfied and they, or such other entity as may be appointed by them which shall be acceptable to Owners, shall in particular be deemed to be the "Company" as defined by the ISM Code, assuming the responsibility for the operation of the Vessel and taking over the duties and responsibilities imposed by the ISM Code when applicable.

	5.	Owners' Obligations

	5.1	The Owners shall pay all sums due to the Managers punctually in accordance with the terms of this Agreement.

	5.2	Where the Managers are providing Technical Management in accordance with sub-clause 3.2, the Owners shall:

	(i)	procure that all officers and ratings supplied by them or on their behalf comply with the requirements of STCW 95;

	(ii)	instruct such officers and ratings to obey all reasonable orders of the Managers in connection with the operation of the Managers' safety management system.

5.3

	6.	Insurance Policies

The Owners shall procure, whether by instructing the Managers under sub-clause 3.4 or otherwise, that throughout the period of this Agreement:

	6.1	at the Owners' expense, the Vessel is insured for not less than her sound market value or entered for her full gross tonnage, as the case may be for:

	(i)	usual hull and machinery marine risks (including crew negligence) and excess liabilities;

	(ii)	protection and indemnity risks (including pollution risks and Crew Insurances); and

	(iii)	war risks (including protection and indemnity and crew risks); 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 of vessels of a similar type to the Vessel, with first class insurance companies, underwriters or associations ("the Owners' Insurances");

	6.2	all premiums and calls on the Owners' Insurances are paid promptly by their due date,

	6.3	the Owners' Insurances name the Managers and, subject to underwriters' agreement, any third party designated by the Managers as a joint assured, with full cover, with the Owners obtaining cover in respect of each of the insurances specified in sub-clause 6.1:

		if reasonably obtainable, on terms such that neither the Managers nor any such third party shall be under any liability in respect of premiums or calls arising in connection with the Owners' Insurances; or

Indicate alternative (i), (ii) or (iii) in Box 14. If Box 14 is left blank then (i) applies.

	6.4	written evidence is provided, to the reasonable satisfaction of the Managers, of their compliance with their obligations under Clause 6 within a reasonable time of the commencement of the Agreement, and of each renewal date and, if specifically requested, of each payment date of the Owners' Insurances.

	7.	Income Collected and Expenses Paid on Behalf of Owners

	7.1	All moneys collected by the Managers under the terms of this Agreement (other than moneys payable by the Owners to the Managers) and any interest thereon shall be held to the credit of the Owners in a separate bank account.

	7.2	All expenses incurred by the Managers under the terms of this Agreement on behalf of the Owners (including expenses as provided in Clause 8) may be debited against the Owners in the account referred to under sub-clause 7.1 but shall in any event remain payable by the Owners to the Managers on demand. 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, 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, 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), 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

	8.1	The Owners shall pay to the Managers for their services as Managers under this Agreement an annual management fee as stated in Box 15 which shall be payable by equal quarterly monthly instalments in advance, the first instalment being payable on the commencement of this Agreement (see Clause 2 and Box 4) and subsequent instalments being payable every quarter month, unless otherwise established by separate letter. The Owners shall place with the manager for the duration of this agreement an amount equal to three months of management fee stated in clause 23 as security.

	8.2	The management fee shall be subject an annual to adjustment review in accordance with Clause 23.

	8.3	The Managers shall, at no extra cost to the Owners, provide their own office accommodation, office staff, facilities and stationery. Without limiting the generality of Clause 7 the Owners shall reimburse the Managers for postage and communication expenses, travelling expenses, and other out of pocket expenses properly incurred by the Managers in pursuance of the Management Services.

	8.4	In the event of the appointment of the Managers being terminated by the Owners or the Managers in accordance with the provisions of Clauses 17 and 18 other than by reason of default by the Managers, or if the Vessel is lost, sold or otherwise disposed of, the "management fee" payable to the Managers according to the provisions of sub-clause 8.1, shall continue to be payable for a further period of three calendar months as from the termination date. In addition, provided that the Managers provide Crew for the Vessel in accordance with sub-clause- 3.1:

	(i)	the Owners shall continue to pay Crew Support Costs during the said further period of three calendar months and

	(ii)	the Owners shall pay an equitable proportion of any Severance Costs which may materialize, not exceeding the amount stated in Box 16.

	8.5	If the Owners decide to lay up the Vessel whilst this Agreement remains in force and such lay up lasts for more than three months, an appropriate reduction of the management fee for the period exceeding three months until one month before the Vessel is again put into service shall be mutually agreed between the parties.

	8.6	Unless otherwise agreed in writing all discounts and commissions obtained by the Managers in the course of the management of the Vessel shall be credited to the Owners.

9.            Budgets and Management of Funds

	9.1	Managers will be preparing budgets in connection with, inter alia, the provision of the Management Services with Managers will be submitting for as the Owners reasonable require.

	9.2	.

	9.3	Following the agreement of the budget, the Managers shall prepare and present to the Owners their estimate of the working capital requirement of the Vessel and the Managers shall each month update this estimate. Based thereon, the Managers shall each month request the Owners in writing for the funds required to run the 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. Such funds shall be received by the Managers within ten running days after the receipt by the Owners of the Managers' written request and shall be held to the credit of the Owners in a separate bank account in the name of the Managers or, if requested by the Managers, in the name of the Owners.

	9.4	The Managers shall produce a comparison between budgeted and actual income and expenditure of the Vessel in such form as required by the Owners monthly or at such other intervals as mutually agreed.

	9.5	Notwithstanding anything contained herein to the contrary, the Managers shall in no circumstances be required to use or commit their own funds to finance the provision of the Management Services.

	10.	Managers' Right to Sub-Contract

The Managers shall not have the right to sub-contract any of their obligations hereunder, including those mentioned in sub-clause 3.1, without the prior written consent of the Owners which shall not be unreasonably withheld. In the event of such a sub-contract the Managers shall remain fully liable for the due performance of their obligations under this Agreement.

	11.	Responsibilities

	11.1	Force Majeure - Neither the Owners nor the Managers shall be under any liability for any failure to perform any of their obligations hereunder by reason of any cause whatsoever of any nature or kind beyond their reasonable control.

	11.2	Liability to Owners - (i) Without prejudice to sub-clause 11.1, the Managers shall be under no liability whatsoever to the Owners 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 the Vessel) and howsoever arising in the course of performance of the Management Services UNLESS same is proved to have resulted solely from the negligence, gross negligence or wilful default of the Managers or their employees, or agents or sub-contractors employed by them in connection with the Vessel, in which case (save where loss, damage, delay or expense has resulted from the Managers' personal act or omission committed with the intent to cause same or recklessly and with knowledge that such loss, damage, delay or expense would probably result) the Managers' liability for each incident or series of incidents giving rise to a claim or claims shall never exceed a total of ten times the annual management fee payable hereunder.

	(ii)	Notwithstanding anything that may appear to the contrary in this Agreement, the Managers shall not be liable for any of the actions of the Crew, even if such actions are negligent, grossly negligent or wilful, except only to the extent that they are shown to have resulted from a failure by the Managers to discharge their obligations under sub-clause 3.1, in which case their liability shall be limited in accordance with the terms of this Clause 11.

	11.3	Indemnity - Except to the extent and solely for the amount therein set out that the Managers would be liable under sub-clause 11.2, the Owners hereby undertake to keep the Managers and their employees, agents and sub-contractors indemnified and to hold them harmless 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 the Agreement, and against and in respect of all costs, losses, damages and expenses (including legal costs and expenses on a full indemnity basis) which the Managers may suffer or incur (either directly or indirectly) in the course of the performance of this Agreement.

	11.4	"Himalaya" It is hereby expressly agreed that no employee or agent of the Managers (including every sub-contractor from time to time employed by the Managers) shall in any circumstances whatsoever be under any liability whatsoever to the Owners 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 Clause 11, every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defence and immunity of whatsoever nature applicable to the Managers or to which the Managers are entitled hereunder shall also be available and shall extend to protect every such employee or agent of the Managers acting as aforesaid and for the purpose of all the foregoing provisions of this Clause 11 the Managers are 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.

	12.	Documentation

Where the Managers are providing Technical Management in accordance with sub-clause 3.2 and/or Crew Management in accordance with sub-clause 3.1, they shall make available, upon Owners' request, all documentation and records related to the Safety Management System (SMS) and/or the Crew which the Owners need in order to demonstrate compliance with the ISM Code, and STCW 95 or to defend a claim against a third party.

	13.	General Administration

	13.1	The Managers shall handle and settle all claims arising out of the Management Services hereunder and keep the Owners informed regarding any incident of which the Managers become aware which gives or may give rise to claims or disputes involving third parties.

	13.2	The Managers shall, as instructed by the Owners, bring or defend actions, suits or proceedings in connection with matters entrusted to the Managers according to this Agreement.

	13.3	The Managers shall also have power to obtain legal or technical or other outside expert advice in relation to the handling and settlement of claims and disputes or all other matters affecting the interests of the Owners in respect of the Vessel.

	13.4	The Owners shall arrange for the provision of any necessary guarantee bond or other security.

	13.5	Any costs reasonably incurred by the Managers in carrying out their obligations according to Clause 13 shall be reimbursed by the Owners.

	14.	Auditing

The Managers shall at all times maintain and keep true and correct accounts and shall make the same available for inspection and auditing by the Owners at such times as may be mutually agreed. On the termination, for whatever reasons, of this Agreement, the Managers shall release to the Owners, if so requested, the originals where possible, or otherwise certified copies, of all such accounts and all documents specifically relating to the Vessel and her operation.

	15.	Inspection of Vessel

The Owners shall have the right at any time after giving reasonable notice to the Managers to inspect the Vessel for any reason they consider necessary.

	16.	Compliance with Laws and Regulations

The Managers will not do or permit to be done anything which might cause any breach or infringement of the laws and regulations of the Vessel's flag, or of the places where she trades.

	17.	Duration of the Agreement

This Agreement shall come into effect on the day and year stated in Box 4 and shall continue until the date stated in Box 17. Thereafter it shall automatically renew for an eight-year period and shall thereafter be extended in additional eight-year increments if notice of termination is not provided by the Owners in the fourth quarter of the year immediately preceding the end of the respective term.

	18.	Termination

	18.1	Owners' default

	(i)	The Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing if any moneys payable by the Owners under this Agreement and/or the owners of any associated vessel, shall not have been received in the Managers' nominated account within ten running Business days of receipt by the Owners of the Managers written request or if the Vessel is repossessed by the Mortgagees.

	(ii)	If the Owners:

	(a)	fail to meet their obligations under sub-clauses 5.2 and 5.3 of this Agreement for any reason within their control, or

	(b)	proceed with the employment of or continue to employ the Vessel in the carriage of contraband, blockade running, or in an unlawful trade, or on a voyage which in the reasonable opinion of the Managers is unduly hazardous or improper, the Managers may give notice of the default to the Owners, requiring them to remedy it as soon as practically possible. In the event that the Owners fail to remedy it within a reasonable time to the satisfaction of the Managers, the Managers shall be entitled to terminate the Agreement with immediate effect by notice in writing.

	18.2	Managers' Default

If the Managers fail to meet their obligations under Clauses 3 and 4 of this Agreement for any reason within the control of the Managers, the Owners may give notice to the Managers of the default, requiring them to remedy it within as soon as practically possible. In the event that the Managers fail to remedy it within a reasonable time to the satisfaction of the Owners, the Owners shall be entitled to terminate the Agreement with immediate effect by notice in writing.

	18.3	Extraordinary Termination

This Agreement shall be deemed to be terminated in the case of the sale of the Vessel or if the Vessel becomes a total loss or is declared as a constructive or compromised or arranged total loss or is requisitioned.

	18.4	For the purpose of sub-clause 18.3 hereof

	(i)	the date upon which the Vessel is to be treated as having been sold or otherwise disposed of shall be the date on which the Owners cease to be registered as Owners of the Vessel;

	(ii)	the Vessel shall not be deemed to be lost unless either she has become an actual total loss or agreement has been reached with her underwriters in respect of her constructive, compromised or arranged total loss or if such agreement with her underwriters is not reached it is adjudged by a competent tribunal that a constructive loss of the Vessel has occurred.

	18.5	This Agreement shall terminate forthwith in the event of an order being made or resolution passed for the winding up, dissolution, liquidation or bankruptcy of either party (otherwise than for the purpose of reconstruction or amalgamation) or if a receiver is appointed, or if it suspends payment, ceases to carry on business or makes any special arrangement or composition with its creditors.

	18.6	The termination of this Agreement shall be without prejudice to all rights accrued due between the parties prior to the date of termination.

	19.	Law and Arbitration

	19.1	This Agreement shall be governed by and construed in accordance with English law. and any dispute arising out of or in connection with this Agreement shall be referred to arbitration in London in accordance with the Arbitration Act 1996- or any statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause. The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced. The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall appoint its arbitrator and send notice of such appointment in writing to the other party requiring the other party to appoint its own arbitrator within 14 calendar days of that notice and stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own arbitrator and gives notice that it has done so within the 14 days specified. If the other party does not appoint its own arbitrator and give notice that it has done so within the 14 days specified, the party referring a dispute to arbitration may, without the requirement of any further prior notice to the other party, appoint its arbitrator as sole arbitrator and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on both parties as if he had been appointed by agreement. Nothing herein shall prevent the parties agreeing in writing to vary these provisions to provide for the appointment of a sole arbitrator. In cases where neither the claim nor any counterclaim exceeds the sum of USD50,000 (or such other sum as the parties may agree) the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.

19.2

19.3

	19.4	If Box 18 in Part I is not appropriately filled in, sub-clause 19.1 of this Clause shall apply. Note: 19.1, 19.2 and 19.3 are alternatives; indicate alternative agreed in Box 18.

	20.	Notices

	20.1	Any notice to be given by either party to the other party shall be in writing and may be sent by email, fax, registered or recorded mail or by personal service.

	20.2	The address of the Parties for service of such communication shall be as stated in Boxes 19 and 20, respectively.

	21.	Administrative Services

The Manager shall provide certain general administrative services to the Owners, including, but not limited to, the following:

	(a)	keeping all books and records of things done and transactions performed on behalf of the Owners 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 the Owner generally in its dealings and relations with third parties;

	(c)	maintaining the general ledgers of the Owner, establishing bank accounts with such financial institutions as may be requested, managing, administering and reconciling of bank accounts, preparation of periodic financial statements, including, but not limited to, those required for governmental and regulatory or self-regulatory agency filings and reports to shareholders, arranging of the auditing and/or review of any such financial statements and the provision of related data processing services as required;

	(d)	preparing and providing (or procuring, at the Owner's cost) tax returns required by any law or regulatory authority and developing, maintaining and monitoring internal audit controls;

	(e)	providing office accommodation, office staff (including secretarial and administrative assistance), facilities and stationery;

	(f)	maintaining, at the Owner's cost, corporate existence, qualification and good standing in all necessary jurisdictions and assisting in all other corporate and regulatory compliance requirements;

	(g)	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 Owner.

	(h)	providing any such other administrative services as may be requested and the Manager may agree to provide from time to time.

	(i)	Negotiate, at the Owner's request, loan and credit terms with lenders and monitor and maintain compliance therewith and in addition negotiate and arrange, at the Owner's request, for interest rate swap agreements, foreign currency contracts, forward exchange contracts and any other hedging arrangements;

	(j)	Provide, or arrange for the provision of, information technology services

	22.	Commercial Services

In addition to any commercial services provided under this Agreement, the Manager shall provide the following commercial services to the Owners:

	(a)	managing relationships between the Owners and any existing or potential charterers, shipbuilders, insurers, lenders, investors, fund managers, shareholders and other shipping industry service providers/participants; and

	(b)	providing certain services in connection with taking physical delivery of the vessel, if applicable, 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 Owners.

	23.	Management Fees

	23.1	In consideration of the Manager providing the services herein, the Owners shall pay the Manager the following management fee:

	(a)	A fee of US$                       per day per Vessel, payable                      in arrears (pro rated to reflect the number of days that the Owners owns the Vessel during the applicable quarter);

	(b)	a fee equal to 1.25% calculated on the aggregate of the gross freight, charter hire, ballast bonus or other income obtained for the employment of the Vessel during the term of this Agreement, payable to the Manager monthly in arrears, only to the extent such freight, charter hire, ballast bonus or other income, as the case may be, is received as revenue. Such fee will be payable in USD. For the avoidance of any doubt and regardless of anything stipulated in this Agreement, chartering commissions shall survive the termination of this agreement under all circumstances until the termination of the charter party in force at the time or termination of any other employment arranged;

	23.2	The Management Fees will be fixed for the period commencing on the date the stipulated in Box 4 (the "Commencement Date") and ending on the last day of the calendar year (the "Initial Year"). For the 12-month period starting on the day falling immediately after 31st December of the Initial Year and for each subsequent calendar year falling thereafter (each such 12-month period referred to hereinafter as an "Annual Period"), the Management Fee for the Vessel payable pursuant to this clause will be adjusted upwards with effect from the beginning of such Annual Period by application, to the relevant per Vessel amount, of a percentage figure equal to three per cent (3%), PROVIDED ALWAYS, that in the event of any of the provisions of Section 23.2 applying, further increases may be applied to such Management Fees as determined pursuant to Section 23.2.

	23.3	The Management Fees for the Vessel payable pursuant to this clause, for the Annual Period commencing on the day falling immediately after the end of the Initial Year and each subsequent Annual Period thereafter, will, in each case, be further adjusted upwards with effect from the beginning of such Annual Period if the Manager has incurred a material unforeseen increase in the cost of providing the management services, by an amount to be agreed between the Manager and the Owners, each acting in a commercially reasonable manner.

	23.4	The Owners hereby acknowledge that any capital expenditure, financial costs, operating expenses for the Vessel and any general and administrative expenses of the Owners whatsoever are not covered by the management fees and any such expenditure, costs and expenses shall be paid fully by the Owners, whether directly to third parties or by payment to such third parties through the Manager and to the extent incurred by the Manager, shall be reimbursed to it by the Owners. The said capital expenditure, financial costs, operating expenses for the Vessel and general and administrative expenses include, without limiting the generality of the foregoing, items such as:

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

	(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, auditors, 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 the Owners;

	(d)	applicable deductibles, insurance premiums and/or P&I calls;

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

	(f)	any other out of pocket expenses that are incurred by the Manager in the performance of the services pursuant to this Agreement and Supervision Agreement.

		At their sole discretion the Owner on an annual basis in order to provide the Managers with a performance incentive, may make a payment to the Managers of an incentive fee in addition to the management fee.

		Incentive Fee

		At their sole discretion the Owners on an annual basis in order to provide the Managers with a performance incentive, may make a payment to the Managers of an incentive fee in addition to the management fee.

	25.	Termination After Change of Control

	25.1	This Agreement will terminate automatically immediately after a change of control (as defined below) of the Owners and/or of the Owner's ultimate parent. Upon such termination, the Owners will be required to pay the Manager the Termination Payment in a single Installment.

For the purpose of this Agreement "Change of Control" means the occurrence of any of the following:

	(i)	The acquisition by any individual, entity or group of beneficial ownership of fifty (50) percent (%) or more of either (A) the then-outstanding shares of stock of the Owner and/or the Owners ultimate parent or (B) the combined voting power of the then-outstanding voting securities of the Owner and/or the Owners ultimate parent entitled to vote generally in the election of directors;

	(ii)	The consummation of a reorganization, merger or consolidation of Owner and/or the Owners ultimate parent or the sale or other disposition of all or substantially all of the assets of Owner and/or Owners ultimate parent.

	(iii)	The approval by the shareholders of Owner and/or the Owners ultimate parent of a complete liquidation or dissolution of Owner and/or the Owners ultimate parent.

Further, for the purpose of this Agreement "Termination Payment" means a payment to be received by the Manager in the event of a Change of Control. Such payment shall be equal to the estimated remaining fees payable to the Manager under the then current term of the agreement but in any case shall not be less than for a period of 36 months and not more than a period of 60 months.

ANNEX "A" (DETAILS OF VESSEL OR VESSELS) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

 STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: "SHIPMAN 98"

Date of Agreement                                     :            

Name of Vessel(s)                                        :            

Particulars of Vessel(s):FIRST AMENDED AND RESTATED

OMNIBUS AGREEMENT

by and among

Dynagas LNG Partners LP

Dynagas GP LLC

Dynagas Operating LP

Dynagas Operating GP LLC

and

 Dynagas Holding Ltd.

TABLE OF CONTENTS

 

	 	
 Page

 

	
ARTICLE I                          DEFINITIONS

	
1

	
Section 1.1

	
Definitions.

 

	
1

	
ARTICLE II  FOUR-YEAR LNG CARRIER RESTRICTED BUSINESS OPPORTUNITIES

	
5

	
Section 2.1

	
Four-Year LNG Carrier Restricted Businesses.

	
5

	
Section 2.2

	
Permitted Exceptions.

 

	
5

	
ARTICLE III  BUSINESS OPPORTUNITIES PROCEDURES

	
6

	
Section 3.1

	
Procedures.

	
6

	
Section 3.2

	
Scope of Prohibition.

	
8

	
Section 3.3

	
Enforcement.

 

	
8

	
ARTICLE IV  RIGHTS OF FIRST OFFER

	
8

	
Section 4.1

	
Rights of First Offer.

	
8

	
Section 4.2

	
Procedures for Rights of First Offer.

 

	
8

	
ARTICLE V  PURCHASE OPTIONS - OPTIONAL VESSELS

	
9

	
Section 5.1

	
Options to Purchase the Optional Vessels.

	
9

	
Section 5.2

	
Procedures.

 

	
10

	
ARTICLE VI  INDEMNIFICATION

	
11

	
Section 6.1

	
Dynagas Holding Indemnification.

	
11

	
Section 6.2

	
Limitation Regarding Indemnification.

	
11

	
Section 6.3

	
Indemnification Procedures.

 

	
11

	
ARTICLE VII  MISCELLANEOUS

	
12

	
Section 7.1

	
Choice of Law; Arbitration.

	
12

	
Section 7.2

	
Notice.

	
13

	
Section 7.3

	
Entire Agreement.

	
13

	
Section 7.4

	
Termination.

	
13

	
Section 7.5

	
Waiver; Effect of Waiver or Consent.

	
13

	
Section 7.6

	
Amendment or Modification.

	
13

	
Section 7.7

	
Assignment.

	
14

	
Section 7.8

	
Counterparts.

	
14

	
Section 7.9

	
Severability.

	
14

	
Section 7.10

	
Gender, Parts, Articles and Sections.

	
14

	
Section 7.11

	
Further Assurances.

	
14

	
Section 7.12

	
Withholding or Granting of Consent.

	
14

	
Section 7.13

	
Laws and Regulations.

	
14

	
Section 7.14

	
Negotiation of Rights of Dynagas Holding, Members, Assignees and Third Parties

	
14

FIRST AMENDED AND RESTATED OMNIBUS AGREEMENT

THIS FIRST AMENDED AND RESTATED OMNIBUS AGREEMENT (this "Agreement") by and among Dynagas Holding Ltd., a corporation organized under the laws of the Republic of the Marshall Islands ("Dynagas Holding"), Dynagas LNG Partners LP, a limited partnership organized under the laws of the Republic of the Marshall Islands (the "Partnership"), Dynagas GP LLC, a limited liability company organized under the laws of the Republic of the Marshall Islands and general partner of the Partnership including any permitted successors and assigns under the Partnership Agreement (as defined herein) (the "General Partner"), Dynagas Operating LP, a limited partnership organized under the laws of the Republic of the Marshall Islands ("Operating LP"), and Dynagas Operating GP LLC, a limited liability company organized under the laws of the Republic of the Marshall Islands and the general partner of Operating LP ("Operating GP"), is dated as of the 12th day of April, 2016.  The above-named entities are sometimes referred to in this Agreement each as a "Party" and collectively as the "Parties."

R E C I T A L S:

1.            The Parties entered into that certain initial omnibus agreement, effective as of the closing of the Partnership's initial public offering of common units representing limited partner interests in the Partnership, which the Parties seek to amend and restate as set forth herein.

2.            The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Articles II and III, with respect to (a) those business opportunities that the Dynagas Holding Entities (as defined herein) will not pursue during the term of this Agreement and (b) the procedures whereby such business opportunities are to be offered to the Partnership Group (as defined herein).

3.            The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article IV, with respect to the Partnership's right of first offer relating to Four-Year LNG Carriers (as defined herein) that Dynagas Holding owns or might own.

4.            The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article V, with respect to the rights of the Partnership to purchase the Optional Vessels from Dynagas Holding.

5.            The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Section 5.2(b)(ii), and Article VI, with respect to certain indemnification obligations of Dynagas Holding.

NOW THEREFORE, in consideration of the foregoing, the mutual covenants, terms and conditions of this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I

 DEFINITIONS

		Section 1.1	Definitions.

As used in this Agreement, the following terms shall have the respective meanings set forth below:

"AAA" has the meaning given such term in Section 7.1.

"Acquiring Party" has the meaning given such term in Section 3.1.

"Acquisition Date" has the meaning given such term in Section 6.1.

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"Additional Optional Vessels" means the entities set forth on Schedule 1 hereto, that own Hull 2421, Hull 2422, Hull 2427, Hull 2428 and Hull 2429, respectively, including the related charters or other agreements relating to the operation or ownership of such hulls (or such LNG carriers upon delivery) then in effect (each such entity, an "Additional Optional Vessel"); provided that for purposes of this Agreement, the Additional Optional Vessels shall be treated as Four-Year LNG Carriers as from the date the corresponding hull referenced above is delivered from the shipyard as an LNG carrier and such delivered LNG carrier is employed under a Four-Year Charter.

"Affiliate" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term "control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of Voting Securities, by contract or otherwise.

"Agreement" means this First Amended and Restated Omnibus Agreement, as it may be amended, modified, or supplemented from time to time in accordance with Section 7.6 hereof.

"Board" means the Board of Directors of the Partnership.

"Break-up Costs" means the aggregate amount of any and all additional taxes, flag administration, financing, legal and other similar costs (except with respect to Section 2.2(b) where Break-up Costs shall be deemed to include only administrative costs associated with transfer and re-flagging, including related legal costs) to the Dynagas Holding Entities that would be required to transfer any Four-Year LNG Carrier acquired by the Dynagas Holding Entities as part of a larger transaction to a Partnership Group Member pursuant to Section 2.2(b) or Section 2.2(d).

"Change of Control" means, with respect to any Person (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 (other than in the ordinary course of business), 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; and (c) a "person" or "group" (within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act), other than Dynagas Holding or its Affiliates with respect to the General Partner, being or becoming the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) 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 of Control under clause (b) above.  For purposes of this Agreement, a "Change of Control" will not occur in connection with any sale, lease exchange or other transfer of assets between the Dynagas Holding Entities, the entities set forth on Schedule 1 hereto, and the Partnership Group.

"Conflicts Committee" means the Conflicts Committee of the Board.

"Contribution Assets" has the meaning given such term in Section 6.1.

"Covered Environmental Losses" means all Losses suffered or incurred by the Partnership Group by reason of, arising out of or resulting from:

(a)            any violation or correction of violation of Environmental Laws; or

(b)            any event or condition relating to environmental or human health and safety matters, in each case, associated with the ownership or operation by the Partnership Group or the Dynagas Holding Entities of the Contribution Assets (including, without limitation, the presence of Hazardous Substances on,

2

under, about or migrating to or from the Contribution Assets or the disposal or release of, or exposure to, Hazardous Substances generated by or otherwise related to operation of the Contribution Assets), including, without limitation, the reasonable and documented cost and expense of (i) any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation or other corrective action required or necessary under Environmental Laws, (ii) the preparation and implementation of any closure, remedial, corrective action or other plans required or necessary under Environmental Laws and (iii) any environmental or toxic tort (including, without limitation, personal injury or property damage claims) pre-trial, trial or appellate legal or litigation support work; but only to the extent that such violation complained of under clause (a), or such events or conditions included in clause (b), occurred before the applicable Acquisition Date; and, provided, that in no event shall Losses to the extent arising from a change in any Environmental Law after the applicable Acquisition Date be deemed "Covered Environmental Losses."

"Dynagas Holding" is defined in the introduction to this Agreement.

"Dynagas Holding Entity" means Dynagas Holding and any other Person controlled, directly or indirectly, by Dynagas Holding (other than the Partnership Entities), and "Dynagas Holding Entities" means all of them.

"Dynagas Potential Transferee" has the meaning given such term in Section 4.2(b).

"Dynagas Sale Assets" has the meaning given such term in Section 4.2(b).

"Dynagas Transfer Notice" has the meaning given such term in Section 4.2(b).

"Dynagas Transferring Party" has the meaning given such term in Section 4.2(b).

"Environmental Laws" means all international, federal, state, foreign and local laws, statutes, rules, regulations, treaties, conventions, orders, judgments and ordinances having the force and effect of law and relating to protection of natural resources, health and safety and the environment, each in effect and as amended through the applicable Acquisition Date.

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

"First Offer Negotiation Period" has the meaning given such term in Section 4.2(c).

"Four-Year LNG Carrier" means any LNG carrier employed (or to be employed upon completion of construction) under any charter with an initial term of four or more years, not including any extension term, as from the date such LNG carrier commences employment, which date may not be earlier than the date such LNG carrier is delivered for employment under such charter (a "Four-Year Charter").  For purposes of this definition, (i) if a Dynagas Holding Entity, directly or indirectly, acquires or enters into a contract for the construction of any LNG carrier and enters into a Four-Year Charter with respect to such vessel, then such LNG carrier will be a Four-Year LNG carrier as from the date it is delivered for employment under the Four-Year Charter, (ii) if a Dynagas Holding Entity acquires an LNG carrier with a Four-Year Charter attached in any other manner, then such LNG carrier will be a Four-Year LNG Carrier as from the date it is acquired by the Dynagas Holding Entity and (iii) and each Additional Optional Vessel shall be treated as a Four-Year LNG Carrier, as from such time as set forth in the definition of Additional Optional Vessel.

"General Partner" is defined in the introduction to this Agreement.

"Hazardous Substances" means (a) each substance defined, designated or classified as a hazardous waste, hazardous substance, hazardous material, solid waste, contaminant or toxic substance under Environmental Laws; (b) petroleum and petroleum products, including crude oil and any fractions thereof; (c) natural gas, synthetic gas and any mixtures thereof; (d) any radioactive material; and (e) any asbestos-containing materials in a friable condition.

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"Initial Optional Vessels" means the following LNG carriers currently owned by certain Dynagas Holding Entities: Clean Ocean, Clean Planet, Clean Horizon and Clean Vision, including any charters or other agreements relating to the operation or ownership of the Initial Optional Vessels then in effect.

"Losses" means losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses (including, without limitation, court costs and reasonable attorneys' and experts' fees) of any and every kind or character; provided, however, that such term shall not include any special, indirect, incidental or consequential damages.

"Non-Four-Year LNG Carriers" means any LNG carrier that is not a Four-Year LNG Carrier.

"Offer" has the meaning given such term in Section 3.1.

"Offer Period" has the meaning given such term in Section 3.1.

"Offered Assets" has the meaning given such term in Section 3.1.

"Offeree" has the meaning given such term in Section 3.1.

"Operating GP" is defined in the introduction to this Agreement.

"Operating LP" is defined in the introduction to this Agreement.

"Option Assets" has the meaning given such term in Section 5.1.

"Optional Interests" means all of the rights, title and interests in the Initial Optional Vessels or in the Additional Optional Vessels held, directly or indirectly, by a Dynagas Holding Entity in any manner, including shares of capital stock or other equity interests of any (x) other person holding ownership interests in the Initial Optional Vessels, or (y) Dynagas Holding Entity holding ownership interests in the Additional Optional Vessels, or by contract, or otherwise, or by any combination thereof, and including any charters or other agreements relating to the operation or ownership of the Optional Vessels then in effect.

"Optional Vessels" means the Initial Optional Vessels, including any charters or other agreements relating to the operation or ownership of such vessels then in effect, and the Optional Interests corresponding to the Additional Optional Vessels.

"Parties" means the parties to this Agreement and their successors and permitted assigns.

"Partnership" is defined in the introduction to this Agreement.

"Partnership Agreement" means the Third Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of July 20, 2015, to which reference is hereby made for all purposes of this Agreement. No amendment or modification to the Partnership Agreement subsequent to the date hereof shall be given effect for purposes of this Agreement unless consented to by each of the Parties to this Agreement.

"Partnership Entities" means the General Partner, the Partnership, Operating LP and Operating GP LLC, and any Person controlled by any such entity.

"Partnership Group" means the Partnership and Operating LP and any Person controlled by any such entity.

"Partnership Group Member" means any Person in the Partnership Group.

"Partnership Potential Transferee" has the meaning given such term in Section 4.2(a).

 

4

"Partnership Sale Assets" has the meaning given such term in Section 4.2(a).

"Partnership Transfer Notice" has the meaning given such term in Section 4.2(a).

"Partnership Transferring Party" has the meaning given such term in Section 4.2(a).

"Person" means an individual, corporation, partnership, joint venture, trust, limited liability company, unincorporated organization or any other entity.

"Potential Transferee" has the meaning given such term in Section 4.2(b).

"Sale Assets" has the meaning given such term in Section 4.2(b).

"Third-Party Advisor" means an investment banking firm, broker, expert advisor or other firm generally recognized in the shipping industry as qualified to perform the tasks for which such firm has been engaged.

"Transfer" means any transfer, assignment, sale or other disposition of any (i) Optional Interest, (ii) Four-Year LNG Carrier or (iii) a Non Four-Year LNG Carrier, as applicable, by any Dynagas Holding Entity (including any transfer, assignment, sale or other disposition of any ownership interest in such Four-Year LNG Carrier or Non Four-Year LNG Carrier (as applicable) or any shares of capital stock or other equity interests of any Dynagas Holding Entity holding, directly or indirectly, ownership interests in such Four-Year LNG Carrier or Non Four-Year LNG Carrier (as applicable)); provided, however, that such term shall not include (i) transfers, assignments, sales or other dispositions from a Dynagas Holding Entity to another Dynagas Holding Entity, (ii) transfers, assignments, sales or other dispositions, pursuant to the terms of any related charter or other agreement with a charter counterparty, (iii) transfers, assignments, sales or other dispositions pursuant to Article II of this Agreement, or (iv) grants of security interests in or mortgages or liens on such Four-Year LNG Carrier or Non Four-Year LNG Carrier, as applicable, in favor of a bona fide third party lender (but not the foreclosing of any such security interest, mortgage or lien).

"Transfer Notice" has the meaning given such term in Section 4.2(b).

"Transferring Party" has the meaning given such term in Section 4.2(b).

"Voting Securities" means securities of any class of Person entitling the holders thereof to vote in the election of members of the board of directors or other similar governing body of the Person.

ARTICLE II

 FOUR-YEAR LNG CARRIER RESTRICTED BUSINESS OPPORTUNITIES

		Section 2.1	Four-Year LNG Carrier Restricted Businesses.

Subject to Section 7.4 and except as permitted by Section 2.2, each of the Dynagas Holding Entities shall be prohibited from acquiring, owning, operating or chartering Four-Year LNG Carriers.

		Section 2.2	Permitted Exceptions.

Notwithstanding any provision of Section 2.1 to the contrary, the restrictions in this Agreement shall not prevent any Dynagas Holding Entity from:

(a)            acquiring, owning, operating or chartering any Non-Four-Year LNG Carrier;

(b)            (i) acquiring or owning one or more Four-Year LNG Carriers (other than with respect to the Additional Optional Vessels, which are covered in (ii) below) if such Dynagas Holding Entity offers to sell such Four-Year LNG Carrier to the Partnership for the acquisition price plus any Break-up Costs in

5

accordance with the procedures set forth in Section 3.1 (and the Partnership does not fulfill its obligation to purchase such Four-Year LNG Carrier in accordance with the terms of this Agreement) and (ii) owning any Optional Interests in an Additional Optional Vessel at any time on or after the time at which such Additional Optional Vessel is treated as a Four-Year LNG Carrier pursuant to this Agreement, if the related Dynagas Holding Entities (as applicable) offer to sell such Optional Interests for the pro rata portion of the acquisition price relating to the corresponding LNG carrier owned by such Additional Optional Vessel plus any applicable Break-up Costs in accordance with the procedures set forth in Section 3.1 (and the Partnership does not fulfill its obligation to purchase such Optional Interests in accordance with the terms of this Agreement);

(c)            operating or chartering an LNG Carrier under a charter with a term of four or more years if such Dynagas Holding Entity (other than in the case of an Additional Optional Vessel) offers to sell such LNG Carrier to the Partnership for fair market value (x) promptly after the time it becomes a Four-Year LNG Carrier and (y) at each renewal or extension of that charter if such renewal or extension is for a term of four or more years, in each case in accordance with the procedures set forth in Section 3.1;

(d)            acquiring and owning a controlling interest in one or more Four-Year LNG Carriers as part of the acquisition of an interest in business or package of assets that owns, operates or charters such Four-Year LNG Carriers; provided, however; if a majority of the value of the business or assets acquired is attributable to Four-Year LNG Carriers, as determined in good faith by Dynagas Holding's board of directors, the Dynagas Holding Entity must offer to sell such Four-Year LNG Carrier(s) to the Partnership for their fair market value plus any Break-up Costs in accordance with the procedures set forth in Section 3.1 (for the avoidance of doubt, nothing herein shall prohibit the acquisition and owning of one or more Four-Year LNG Carriers as part of the acquisition of a minority interest in a business or package of assets that owns, operates or charters Four-Year LNG Carriers);

(e)            acquiring a non-controlling interest in any company, business or pool of assets;

(f)            acquiring, owning, operating or chartering any Four-Year LNG Carrier if the Partnership does not fulfill its obligations to purchase such Four-Year LNG Carrier in accordance with the terms of this Agreement;

(g)            acquiring, owning, operating or chartering any Four-Year LNG Carrier that is subject to an offer to purchase by a Partnership Group Member as described in paragraphs (b), (c) and (d) above, in each case pending the offer of such Four-Year LNG Carrier to the Partnership and the Partnership's determination pursuant to Section 3.1 whether to purchase the Four-Year LNG Carrier and, if the Partnership has determined to purchase or to cause any Partnership Group Member to purchase such Four-Year LNG Carrier, pending the closing of such purchase;

(h)            providing vessel management services relating to any LNG carrier;

(i)            acquiring and owning any Four-Year LNG Carrier as part of a financing arrangement, including by way of a sale leaseback transaction, which is accounted for as a financial lease under United States generally accepted accounting principles; or

(j)            acquiring, owning, operating or chartering any Four-Year LNG Carrier if the Partnership has previously advised Dynagas Holding that it consents to such acquisition, operation or charter.

ARTICLE III

 BUSINESS OPPORTUNITIES PROCEDURES

		Section 3.1	Procedures.

6

In the event that one or more Dynagas Holding Entities acquires, owns, operates or charters Four-Year LNG Carriers (other than the Additional Optional Vessels) or Optional Interests in Additional Optional Vessels in accordance with Sections 2.2(b), 2.2(c) or 2.2(d), then simultaneously or in any event not later than 30 calendar days after the consummation of the acquisition or the commencement of operations or charter or delivery from the shipyard (as applicable), each such Dynagas Holding Entity, as the case may be, (the "Acquiring Party") shall notify the Board and offer the Partnership (the "Offeree") the opportunity for any Partnership Group Member to purchase such Four-Year LNG Carriers, including any charters or other agreements relating to the operation or ownership of such Four-Year LNG Carrier or Optional Interests, as the case may be, (the "Offered Assets"), for their fair market value (or, in the case of an acquisition in accordance with Section 2.2(b), the acquisition price) plus, in the case of an acquisition in accordance with Sections 2.2(b), or 2.2(d), any applicable Break-up Costs, in each case on commercially reasonable terms in accordance with this Section 3.1 (the "Offer"). The Offer shall set forth the Acquiring Party's proposed terms relating to the purchase of the Offered Assets by the applicable Partnership Group Member, including any liabilities to be assumed by the applicable Partnership Group Member as part of the Offer. As soon as practicable after the Offer is made, the Acquiring Party will deliver to the Offeree all information prepared by or on behalf of or in the possession of such Acquiring Party relating to the Offered Assets (including for the avoidance of doubt, the acquisition price, in the case of Section 2.2(b)) and reasonably requested by the Offeree. As soon as practicable, but in any event, within 30 calendar days after receipt of the Offer, the Offeree shall notify the Acquiring Party in writing that either:

(a)            The Board has elected not to cause any Partnership Group Member to purchase such Offered Assets, in which event the Acquiring Party and its Affiliates shall, subject to the other terms of this Agreement (including Section 2.2(b)), be forever free, subject to the provisions of this Agreement, to continue to own, operate and charter such Offered Assets; or

(b)            The Board has elected to cause any Partnership Group Member to purchase such Offered Assets, in which event, (i) in the case of an acquisition in accordance with Section 2.2(b), it shall accept such Offer and cause the Partnership Group Member to purchase the Offered Asset on such terms as soon as commercially reasonable after such agreement has been reached, or (ii) in the case of an acquisition in accordance with Section 2.2(c) or Section 2.2(d), the following procedures shall be followed:

(i)            After the receipt of the Offer by the Offeree, the Acquiring Party and the Offeree shall negotiate in good faith regarding the fair market value and any applicable Break-up Costs of the Offered Assets that are subject to the Offer and the other terms of the Offer on which the Offered Assets will be sold to the applicable Partnership Group Member. If the Acquiring Party and the Offeree agree on the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to the Offer and the other terms of the Offer during the 30-day period (the "Offer Period") after receipt by the Acquiring Party of the Board's election to cause any Partnership Group Member to purchase the Offered Assets, the Board shall cause any Partnership Group Member to purchase the Offered Assets on such terms as soon as commercially practicable after such agreement has been reached.

(ii)            If the Acquiring Party and the Offeree are unable to agree on the fair market value (and any applicable Break-up Costs) of the Offered Assets that are subject to an Offer at fair market value on any other terms of the Offer during the Offer Period, the Acquiring Party and the Offeree will engage a mutually-agreed-upon Third-Party Advisor prior to the end of the Offer Period to determine the fair market value of the Offered Assets and/or the other terms on which the Acquiring Party and the Offeree are unable to agree. In determining the fair market value of the Offered Assets and other terms on which the Offered Assets are to be sold, the Third-Party Advisor, as applicable, will have access to the proposed sale and purchase values and terms for the Offer submitted by the Acquiring Party and the Offeree, respectively, and to all information prepared by or on behalf of the Acquiring Party relating to the Offered Assets and reasonably requested by such Third-Party Advisor. Such Third-Party Advisor will determine the fair market value (and any applicable Break-up Costs) of the Offered Assets and/or the other terms on which the Acquiring Party and the Offeree are unable to agree within 30 calendar days of its engagement and furnish the Acquiring Party and the Offeree its determination. The fees and expenses of the Third-Party Advisor, as applicable, will be divided equally between the Acquiring Party and the Offeree. Upon receipt of such determination, the Offeree will have the option, but not the obligation:

7

(A)            to cause any Partnership Group Member to purchase the Offered Assets for the fair market value (and any applicable Break-up Costs), and on the other terms determined by the Third-Party Advisor, as soon as commercially practicable after determinations have been made; or

(B)            not to cause any Partnership Group Member to purchase such Offered Assets, in which event the Acquiring Party and its Affiliates shall, subject to the other terms of this Agreement, be forever free to continue to own and operate such Offered Assets.

		Section 3.2	Scope of Prohibition.

If any Dynagas Holding Entity or its Affiliates engages in the ownership or operation, including the chartering, of Four-Year LNG Carriers pursuant to any of the exceptions described in Section 2.2, the Dynagas Holding Entity and its Affiliates may not subsequently expand that portion of their business other than pursuant to the exceptions contained in such Section 2.2. Except as otherwise provided in this Agreement or the Partnership Agreement, each Party and its Affiliates shall be free to engage in any business activity whatsoever, including those that may be in direct competition with the Dynagas Holding Entities or the Partnership Group Members.

		Section 3.3	Enforcement.

Each Party agrees and acknowledges that the other Parties may not have an adequate remedy at law for the breach by any such Party of its covenants and agreements set forth in this Article III, and that any breach by any such Party of its covenants and agreements set forth in this Article III could result in irreparable injury to such other Parties. Each Party further agrees and acknowledges that any other Party may, in addition to the other remedies which may be available to such other Party, file a suit in equity to enjoin such Party from such breach, and consent to the issuance of injunctive relief to enforce the provisions of Article III of this Agreement.

ARTICLE IV

 RIGHTS OF FIRST OFFER

		Section 4.1	Rights of First Offer.

(a)            The Partnership Group hereby grants Dynagas Holding a right of first offer on any proposed Transfer by any Partnership Group Member of (x) any LNG carrier, including any charters or other agreements relating to the operation or ownership of such vessels or (y) Optional Interests corresponding to an Additional Optional Vessel, owned or acquired by any Partnership Group Member. The Dynagas Holding Entities hereby grant the Partnership a right of first offer on any proposed Transfer of (x) any Four-Year LNG Carriers (other than with respect to the Additional Optional Vessels, which are covered in (y) below), including any charters or other agreements relating to the operation or ownership of such vessels or (y) Optional Interests corresponding to an Additional Optional Vessel, owned or acquired by any Dynagas Holding Entity.

(b)            The Parties acknowledge that all potential Transfers pursuant to this Article IV are subject to obtaining any and all written consents of governmental authorities and other non-affiliated third parties and to the terms of all existing agreements in respect of such LNG Carriers or Optional Interests, as applicable.

		Section 4.2	Procedures for Rights of First Offer.

(a)            In the event that a Partnership Group Member (a "Partnership Transferring Party") proposes to Transfer (x) any LNG carrier, any charters or other agreements relating to the operation or ownership of such vessel or (y) Optional Interests corresponding to an Additional Optional Vessel (the "Partnership Sale Assets"), prior to engaging in any negotiation for such Transfer with any non-affiliated

8

third party or otherwise offering to Transfer the Partnership Sale Assets to any non-affiliated third party, such Partnership Transferring Party shall give Dynagas Holding (a "Partnership Potential Transferee"), written notice setting forth all material terms and conditions (including, without limitation, the purchase price or the terms of the charter agreement and a description of the Partnership Sale Assets on which such Partnership Transferring Party desires to Transfer the Partnership Sale Assets) (a "Partnership Transfer Notice").

(b)            In the event that a Dynagas Holding Entity (a "Dynagas Transferring Party" and, together with a Partnership Transferring Party, a "Transferring Party") proposes to Transfer any (x) Four-Year LNG carrier any charters or other agreements relating to the operation or ownership of such vessel or (y) Optional Interests corresponding to an Additional Optional Vessel (the "Dynagas Sale Assets" and, together with the Partnership Sale Assets, the "Sale Assets"), prior to engaging in any negotiation for such Transfer with any non-affiliated third party or otherwise offering to Transfer the Dynagas Sale Assets to any non-affiliated third party, such Dynagas Transferring Party shall give the Partnership (a "Dynagas  Potential Transferee" and, together with a Partnership Potential Transferee, a "Potential Transferee"), written notice setting forth all material terms and conditions (including, without limitation, the purchase price or the terms of the charter and a description of the Dynagas Sale Asset(s) on which such Dynagas Transferring Party desires to Transfer the Dynagas Sale Assets) (a "Dynagas Transfer Notice" and, together with a Partnership Transfer Notice, each a "Transfer Notice").

(c)            After delivery of a Transfer Notice, and at the Potential Transferee's election, the Transferring Party then shall be obligated to negotiate in good faith for a 30-day period following the delivery by the Transferring Party of the Transfer Notice (the "First Offer Negotiation Period") to reach an agreement for the Transfer of such Sale Assets to the Potential Transferee or any of its Affiliates on the terms and conditions set forth in the Transfer Notice. If no such agreement with respect to the Sale Assets is reached during the First Offer Negotiation Period, and the Transferring Party has not Transferred, or agreed in writing to Transfer, such Sale Assets to a third party within 180 calendar days after the end of the First Offer Negotiation Period on terms generally no less favorable to the Transferring Party than those included in the Transfer Notice, then the Transferring Party shall not thereafter Transfer any of the Sale Assets without first offering such assets to the applicable Potential Transferee in the manner provided above.

ARTICLE V

 PURCHASE OPTIONS - OPTIONAL VESSELS

		Section 5.1	Options to Purchase the Optional Vessels.

(a)            Dynagas Holding hereby grants, and will cause any other relevant Dynagas Entity to grant, to the Partnership Group the unconditional right and option to purchase for a respective purchase price to be agreed upon by Dynagas Holding and the Partnership Group, (i) with respect to each Optional Vessel that is an Initial Optional Vessel, at any time within 24 months following the delivery of such Initial Optional Vessel from the shipyard (or in the case of the Clean Ocean and the Clean Planet until March 31, 2017) and (ii) with respect to each Optional Vessels that is an Additional Optional Vessel, within 24 months following the expiration (without acceptance) of an Offer under Section 3.1 with respect to such Additional Optional Vessel, all of the Optional Interests in such Optional Vessel (each, an "Option Asset" and, together, the "Option Assets").

(b)            The Parties acknowledge that the potential Transfer of the Option Assets pursuant to this Article V is subject to obtaining any and all written consents of governmental authorities and other third parties and to the terms of all agreements existing as of the date hereof in respect of the Option Assets including, without limitation, any rights of first refusal of the parties to such agreements to purchase the Option Assets. Dynagas Holding hereby covenants and agrees to use its reasonable efforts to obtain any such consents required to be obtained by it in connection with the Transfer of the Option Assets pursuant to this Article V.

9

		Section 5.2	Procedures.

(a)            If a Partnership Group Member decides to exercise the option to purchase the Option Assets, it will provide written notice to Dynagas Holding of such exercise, the purchase price it proposes to pay for the applicable Option Asset, and the other material terms of the purchase. The decision to purchase the applicable Option Asset, the purchase price to be paid for the applicable Option Asset, and the other terms of the purchase shall be approved by the Conflicts Committee. If the Partnership Group Member and Dynagas Holding are unable to agree on the purchase price of the applicable Option Asset and/or the other material terms, Dynagas Holding and the Conflicts Committee shall engage a mutually-agreed-upon independent appraiser, such as an Third-Party Advisor, to determine the fair market value of the applicable Option Asset and/or any other material terms on which the Partnership Group Member and Dynagas Holding are unable to agree. In determining the fair market value of the applicable Option Asset and/or the other material terms on which the applicable Option Asset will be sold, such independent appraiser will have access to the proposed sale and purchase values and terms for the offer submitted by the Partnership Group Member and Dynagas Holding, respectively, and to all information prepared by or on behalf of the Partnership Group Member and Dynagas Holding with respect to the Option Assets and reasonably requested by such independent appraiser. Such independent appraiser will determine the fair market value of the applicable Option Asset and/or the other terms on which the Partnership Group Member and Dynagas Holding are unable to agree within 30 calendar days of its engagement and furnish the Partnership Group Member and Dynagas Holding its determination in writing. The fees and expenses of such independent appraiser will be divided equally between the Partnership Group Member and Dynagas Holding. Upon receipt of such determination, the Partnership Group Member will have the option, but not the obligation, to purchase the applicable Option Asset for the fair market value and on the other terms determined by the independent appraiser as soon as commercially practicable after determinations have been made.

(b)            If a Partnership Group Member chooses to exercise its option to purchase the applicable Option Asset under Section 5.2(a), the applicable parties shall enter into a purchase and sale agreement for the purchase and sale of the applicable Option Asset pursuant to which Dynagas Holding shall be obligated to sell the applicable Option Asset to the Partnership Group Member and the Partnership Group Member shall be obligated to purchase such Option Asset from Dynagas Holding on the terms either agreed upon or determined in accordance with Section 5.2(a). The terms of the purchase and sale agreement will include the following:

(i)            the Partnership Group Member will deliver a cash purchase price (unless the Partnership Group Member and Dynagas Holding agree that the consideration will be paid by means of equity of the Partnership, an interest-bearing promissory note or other form of consideration);

(ii)            the Partnership Group will be entitled to the benefit of the indemnification contained in Article VI of this Agreement;

(iii)            Dynagas Holding will provide customary representations and warranties with respect to title to the applicable Option Asset and any other such matters as the Partnership Group Member may approve, which approval will not be unreasonably withheld;

(iv)            Dynagas Holding will grant to the Partnership Group Member the right, exercisable at the Partnership Group Member's risk and expense, to make such surveys, tests and inspections of the Optional Vessels as the Partnership Group Member may deem desirable, so long as such surveys, tests or inspections do not damage the Optional Vessels or interfere with the activities of the Dynagas Holding Entities thereon and so long as the Partnership Group Member has furnished Dynagas Holding with evidence that adequate liability insurance is in full force and effect;

(v)            the Partnership Group Member will have the right to terminate its obligation to purchase the Option Assets under this Article V and the related purchase and sale agreement if the results of any searches, surveys, tests or inspections conducted pursuant to paragraph (iv) above are, in the reasonable opinion of the Partnership Group Member, unsatisfactory; and

10

(vi)            neither Dynagas Holding nor the applicable Partnership Group Member shall have any obligation to sell or buy the applicable Option Asset if any of the consents referred to in Section 5.1(b) above have not been obtained.

(c)            If a Partnership Group Member chooses or is deemed to have chosen not to exercise its option to purchase the applicable Option Asset at the price determined by the Third-Party Advisor under Section 5.2(a), all future rights to purchase such Option Asset by the Partnership Group will be extinguished.

ARTICLE VI

 INDEMNIFICATION

		Section 6.1	Dynagas Holding Indemnification.

Subject to the provisions of Section 6.2 and Section 6.3, Dynagas Holding shall indemnify, defend and hold harmless the Partnership Group from and against: (a) any Covered Environmental Losses relating to the assets that may be acquired, directly or indirectly, by any Partnership Group Member, directly or indirectly, from the Dynagas Holding Entities, including any Optional Interests in Additional Optional Vessels, pursuant to this Agreement and the following six (6) LNG carriers (Clean Energy, Ob River, Amur River, Arctic Aurora, Yenisei River, and Lena River), together with any charters or other agreements relating to the operation or ownership of such LNG carriers, that were acquired, directly or indirectly, by the Partnership Group from the Dynagas Holding Entities (the "Contribution Assets") prior to or on their respective acquisition dates ("Acquisition Date") to the extent that Dynagas Holding is notified by the Partnership of any such Covered Environmental Losses within five (5) years after the applicable Acquisition Date; (b) Losses to the Partnership Group arising from (i) the failure of the Partnership Group, immediately after the applicable Acquisition Date, to be the owner of such valid leasehold interests or fee ownership interests in and to the Contribution Assets as are necessary to enable the Partnership Entities to own and operate the Contribution Assets in substantially the same manner that the Contribution Assets were owned and operated by the Dynagas Holding Entities immediately prior to the respective dates on which each such Contribution Asset was acquired by the Partnership Entities or (ii) the failure of the Partnership Entities to have by the applicable Acquisition Date any consent or governmental permit necessary to allow the Partnership Entities to own or operate the Contribution Assets in substantially the same manner that the Contribution Assets were owned and operated by the Dynagas Holding Entities immediately prior to the respective dates on which each such Contribution Asset was acquired by the Partnership Entities, in each of clauses (b)(i) and (b)(ii) above, to the extent that Dynagas Holding is notified by the Partnership of such Losses within three (3) years after the applicable Acquisition Date; and (c) all federal, state, foreign and local income tax liabilities attributable to the operation of the Contribution Assets prior to the applicable Acquisition Date, including any such income tax liabilities of the Dynagas Holding Entities that may result from the consummation of the formation transactions for the Partnership Group and the Partnership, but excluding any federal, state, foreign and local income taxes reserved on the books of the Partnership Group on the applicable Acquisition Date.

		Section 6.2	Limitation Regarding Indemnification.

The aggregate liability of Dynagas Holding under Section 6.1(a) above shall not exceed $5,000,000. Furthermore, no claim may be made against Dynagas Holding for indemnification pursuant to Section 6.1(a), unless the aggregate dollar amount of all claims for indemnification pursuant to such section shall exceed $500,000, in which case Dynagas Holding shall be liable for claims for indemnification only to the extent such aggregate amount exceeds $500,000.

		Section 6.3	Indemnification Procedures.

(a)            The Partnership Group Members agree that within a reasonable period of time after they become aware of facts giving rise to a claim for indemnification pursuant to Section 6.1, they will provide notice thereof in writing to Dynagas Holding specifying the nature of and specific basis for such claim.

11

(b)            Dynagas Holding shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Partnership Group that are covered by the indemnification set forth in Section 6.1, including, without limitation, the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent (which consent shall not be unreasonably withheld) of the Partnership Group unless it includes a full release of the Partnership Group from such matter or issues, as the case may be.

(c)            The Partnership Group Members agree to cooperate fully with Dynagas Holding with respect to all aspects of the defense of any claims covered by the indemnification set forth in Section 6.1, including, without limitation, the prompt furnishing to Dynagas Holding of any correspondence or other notice relating thereto that the Partnership Group may receive, permitting the names of the members of the Partnership Group to be utilized in connection with such defense, the making available to Dynagas Holding of any files, records or other information of the Partnership Group that Dynagas Holding considers relevant to such defense and the making available to Dynagas Holding of any employees of the Partnership Group; provided, however, that in connection therewith Dynagas Holding agrees to use reasonable efforts to minimize the impact thereof on the operations of the Partnership Group and further agrees to maintain the confidentiality of all files, records and other information furnished by a Partnership Group Member pursuant to this Section 6.3. In no event shall the obligation of the Partnership Group to cooperate with Dynagas Holding as set forth in the immediately preceding sentence be construed as imposing upon the Partnership Group an obligation to hire and pay for counsel in connection with the defense of any claims covered by the indemnification set forth in this Article VI; provided, however, that the Partnership Group Members may, at their own option, cost and expense, hire and pay for counsel in connection with any such defense. Dynagas Holding agrees to keep any such counsel hired by the Partnership Group reasonably informed as to the status of any such defense (including providing such counsel with such information related to any such defense as such counsel may reasonably request) but Dynagas Holding shall have the right to retain sole control over such defense.

In determining the amount of any Loss for which any of the members of the Partnership Group is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (a) any insurance proceeds realized by the Partnership Group, and such correlative insurance benefit shall be net of any incremental insurance premium that becomes due and payable by the Partnership Group as a result of such claim, and (b) all amounts recovered by the Partnership Group under contractual indemnities from third Persons. The Partnership Group hereby agrees to use commercially reasonable efforts to realize any applicable insurance proceeds or amounts recoverable under such contractual indemnities; provided, however, that the costs and expenses (including, without limitation, court costs and reasonable attorneys' fees) of the Partnership Group in connection with such efforts shall be promptly reimbursed by Dynagas Holding in advance of any determination of whether such insurance proceeds or other amounts will be recoverable.

ARTICLE VII

 MISCELLANEOUS

		Section 7.1	Choice of Law; Arbitration.

This Agreement shall be subject to and governed by the laws of the State of New York. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by final and binding arbitration in New York, New York, before a single arbitrator, in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA"). The arbitrator shall be selected by mutual agreement of the parties, if possible. If the parties fail to reach agreement upon appointment of an arbitrator within 30 days following receipt by one party of the other party's notice of desire to arbitrate, the arbitrator shall be selected from a panel or panels of persons submitted by AAA. Judgment upon any award rendered pursuant to such arbitration may be entered in any court of competent jurisdiction or application may be made to any such court for enforcement of any such award and the entry of whatever orders are necessary for the enforcement thereof.

		Section 7.2	Notice.

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All notices, requests or consents provided for or permitted to be given pursuant to this Agreement must be in writing and must be given by depositing the same in the mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by private-courier, prepaid, or by telecopier to such party. Notice given by personal delivery or mail shall be effective upon actual receipt. Couriered notices shall be deemed delivered on the date the courier represents that delivery will occur. Notice given by telecopier shall be effective upon actual receipt if received during the recipient's normal business hours, or at the beginning of the recipient's next business day after receipt if not received during the recipient's normal business hours. All notices to be sent to a party pursuant to this Agreement shall be sent to or made at the address set forth below such party's signature to this Agreement, or at such other address as such party may stipulate to the other parties in the manner provided in this Section 7.2.

		Section 7.3	Entire Agreement.

This Agreement constitutes the entire agreement of the parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein.

		Section 7.4	Termination.

Upon a Change of Control of the General Partner or of the Partnership, the provisions of Articles II, III and IV, of this Agreement (but not less than all of such Articles) shall terminate immediately. Upon a Change of Control of Dynagas Holding, the provisions of Articles II, III and IV of this Agreement applicable to Dynagas Holding (but not less than all of such Articles) shall terminate at the time that is the later of (a) the date on which all of the Partnership's outstanding subordinated units have converted to common units of the Partnership and (b) the date of the Change of Control of Dynagas Holding. In addition, on the date on which a majority of the Partnership's directors ceases to consist of directors that were (1) appointed by the General Partner prior to the Partnership's first annual meeting of unitholders and (2) recommended for election by a majority of the Partnership's appointed directors, the provisions of Articles II, III and IV applicable to Dynagas Holding shall terminate immediately.

		Section 7.5	Waiver; Effect of Waiver or Consent.

Any party hereto may (a) extend the time for the performance of any obligation or other act of any other party hereto or (b) waive compliance with any agreement or condition contained herein. Except as otherwise specifically provided herein, any such extension or waiver shall be valid only if set forth in a written instrument duly executed by the party or parties to be bound thereby; provided, however, that the Partnership may not, without the prior approval of the Conflicts Committee, agree to any extension or waiver of this Agreement that, in the reasonable discretion of the Board, will adversely affect the holders of common units of the Partnership. No waiver or consent, express or implied, by any party of or to any breach or default by any Person in the performance by such Person of its obligations hereunder shall be deemed or construed to be a waiver or consent of or to any other breach or default in the performance by such Person of the same or any other obligations of such Person hereunder. Failure on the part of a party to complain of any act of any Person or to declare any Person in default, irrespective of how long such failure continues, shall not constitute a waiver by such party of its rights hereunder until the applicable statute of limitations period has run.

		Section 7.6	Amendment or Modification.

This Agreement may be amended or modified from time to time only by the written agreement of all the parties hereto; provided, however, that the Partnership may not, without the prior approval of the Conflicts Committee, agree to any amendment or modification of this Agreement that, in the reasonable discretion of the Board, will adversely affect the holders of common units of the Partnership.

		Section 7.7	Assignment.

No party shall have the right to assign its rights or obligations under this Agreement without the consent of the other parties hereto.

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		Section 7.8	Counterparts.

This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

		Section 7.9	Severability.

If any provision of this Agreement or the application thereof to any Person or circumstance shall be held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

		Section 7.10	Gender, Parts, Articles and Sections.

Whenever the context requires, the gender of all words used in this Agreement shall include the masculine, feminine and neuter, and the number of all words shall include the singular and plural. All references to Article numbers and Section numbers refer to Articles and Sections of this Agreement.

		Section 7.11	Further Assurances.

In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

		Section 7.12	Withholding or Granting of Consent.

Each party may, with respect to any consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled discretion, with or without cause, and subject to such conditions as it shall deem appropriate.

		Section 7.13	Laws and Regulations.

Notwithstanding any provision of this Agreement to the contrary, no party to this Agreement shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such party to be in violation of any applicable law, statute, rule or regulation.

		Section 7.14	Negotiation of Rights of Dynagas Holding, Members, Assignees and Third Parties.

The provisions of this Agreement are enforceable solely by the parties to this Agreement, and no shareholder of Dynagas Holding and no member, assignee or other Person of the Partnership shall have the right, separate and apart from Dynagas Holding or the Partnership, as applicable, to enforce any provision of this Agreement or to compel any party to this Agreement to comply with the terms of this Agreement.

14

IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the date indicated above.

	 	
DYNAGAS HOLDING LTD.

	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Konstantinos Lampsias

	 	 	
Name:

	
Konstantinos Lampsias

	 	 	
Title:

	
Sole Director

	 	 	 	 
	 	
Address for Notice

	 	 	 	 
	 	 	 
	 	 	 
	 	 	
lngcoordination@dynagas.com

	 	 	
Fax: (   ) -

	 	 	
Attention:

	 
	 	 	 	 
	 	 	 	 
	 	
DYNAGAS LNG PARTNERS LP

	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Michael Gregos

	 	 	
Name:

	
Michael Gregos

	 	 	
Title:

	
Authorized Signatory

	 	 	 	 
	 	
Address for Notice

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
lngcoordination@dynagas.com

	 	 	
Fax: (   ) -

	 
	 	 	
Attention:

	 
	 	 	 	 
	 	 	 	 
	 	
DYNAGAS GP LLC

	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Konstantinos Lampsias

	 	 	
Name:

	
Konstantinos Lampsias

	 	 	
Title:

	
Director Dynagas Holding Ltd. as Sole Director

	 	 	 	 
	 	
Address for Notice

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
lngcoordination@dynagas.com

	 	 	
Fax: (   ) -

	 
	 	 	
Attention:

	 
	 	 	 	 
	 	 	 	 

(Signature Pages to First Amended and Restated Omnibus Agreement)

	 	
DYNAGAS OPERATING LP

	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Michael Gregos

	 	 	
Name:

	
Michael Gregos

	 	 	
Title:

	
Authorized Signatory

	 	 	 	 
	 	
Address for Notice

	 	 	 	 
	 	 	 
	 	 	 
	 	 	
lngcoordination@dynagas.com

	 	 	
Fax: (   ) -

	 	 	
Attention:

	 
	 	 	 	 
	 	 	 	 
	 	
DYNAGAS OPERATING GP LLC

	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Michael Gregos

	 	 	
Name:

	
Michael Gregos

	 	 	
Title:

	
Authorized Signatory

	 	 	 	 
	 	
Address for Notice

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
lngcoordination@dynagas.com

	 	 	
Fax: (   ) -

	 
	 	 	
Attention:

	 
	 	 	 	 

 

(Signature Pages to First Amended and Restated Omnibus Agreement)

SCHEDULE 1

Additional Optional Vessels

	
Vessel Name

	
Vessel-Owning Entity

 

	
Hull 2421

	
Arctic LNG 1 Ltd.

	
Hull 2422

	
Arctic LNG 2 Ltd.

	
Hull 2427

	
Arctic LNG 3 Ltd.

	
Hull 2428

	
Arctic LNG 4 Ltd.

	
Hull 2429

	
Arctic LNG 5 Ltd.

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