Document:

Exhibit 10.5

 

FORM OF CONTRIBUTION AND CONVEYANCE AGREEMENT

 

This
CONTRIBUTION AND CONVEYANCE AGREEMENT, dated as of • , 2007, is
entered into by and among Capital Maritime & Trading Corp., a Marshall
Islands corporation (“Capital Maritime”); Capital GP L.L.C., a Marshall
Islands limited liability company (“GP LLC”); Capital Product Partners
L.P., a Marshall Islands limited partnership (the “MLP”); and Capital
Product Operating L.L.C., a Marshall Islands limited liability company (the “OLLC”).
The foregoing shall be referred to individually as a “Party” and
collectively as the “Parties.” 
Certain capitalized terms have the meanings assigned to them in
Article I hereof.

 

RECITALS

 

A.    Capital
Maritime and GP LLC have formed the MLP pursuant to the Marshall Islands
Limited Partnership Act (the “Marshall Islands LP Act”) for the purpose
of, among other things, acquiring and owning all of the outstanding shares of
capital stock of and operating all of the assets of certain subsidiaries of
Capital Maritime that own and operate new or almost new medium range product
tankers under medium to long-term time charters or bareboat charters. The respective Boards of Directors of Capital Maritime and the MLP have
prior to this Agreement authorized the Parties to effect the actions set forth
below at the times and in the order set forth below.

 

B.    To
accomplish the objectives and purposes in the preceding recital, the following
actions have been taken prior to the date hereof:

 

1.     Capital
Maritime formed GP LLC under the terms of the Marshall Islands Limited
Liability Company Act (the “Marshall Islands LLC Act”) and contributed
$1000 in exchange for all of the member interests in GP LLC.

 

2.     GP
LLC and Capital Maritime formed the MLP, to which GP LLC contributed $20 and
Capital Maritime contributed $980 in exchange for a 2% general partner interest
and 98% limited partner interest, respectively.

 

3.     The
MLP formed the OLLC pursuant to the Marshall Islands LLC Act and contributed
$1000 in exchange for all of the member interests in the OLLC.

 

4.     The
MLP made an election to be classified as an association taxable as
a corporation for U.S. federal income tax purposes, effective as of formation.

 

C.    At
the Effective Time, each of the following matters shall occur:

 

1.     Capital
Maritime will sell to the MLP, subsequent to the execution

 

 

of the Purchase Agreement, all of the
outstanding shares of capital stock of the subsidiaries named on Schedule A
hereto (collectively, the “Vessel Owning Subsidiaries”). As
consideration therefor, the MLP will issue to Capital Maritime, and Capital
Maritime will receive (a) 11,750,000 Common Units, representing a 56.0% limited
partner interest in the MLP, (b) 8,805,521 Subordinated Units, representing a
42.0% limited partner interest in the MLP, (c) the Incentive Distribution
Rights, (d) $25 million in cash representing a cash dividend and (e) the right
to receive an additional dividend in the amount of $30 million payable in cash
or a number of Common Units necessary to satisfy the Underwriters’ over-allotment
option or a combination thereof, as described in Section 3.02.

 

2.     Capital
Maritime’s original 98% limited partner interest in the MLP will be converted
into one Subordinated Unit.

 

3.     GP
LLC’s original 2% general partner interest in the MLP will be converted into 419,500
General Partner Units.

 

4.     The
MLP will transfer the Interests to the OLLC.

 

5.     Capital
Maritime will transfer the Incentive Distribution Rights to GP LLC.

 

6.     Capital
Maritime, through the underwriters of the Offering (the “Underwriters”) and
pursuant to the Purchase Agreement, will sell the 11,750,000 Common Units to
the public in exchange for $[•] million (the “Offering Proceeds”).

 

7.     Capital
Maritime will use the Offering Proceeds to (a) pay the underwriting
discounts and commissions of $[•] million (which may be withheld by the
Underwriters from the Offering Proceeds as payment thereof), (b) pay other
transaction expenses incurred by Capital Maritime in connection with the
Offering of approximately $[•] million and (c) with respect to the
remaining Offering Proceeds, to repay the debt of the Vessel Owning
Subsidiaries.

 

8.     The
agreements of limited partnership and the limited liability company agreements
of the aforementioned entities will be amended and restated to the extent
necessary to reflect the applicable matters set forth above and in Article II
and Article III of this Agreement.

 

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AGREEMENT

 

NOW, THEREFORE, in consideration of their mutual
undertakings and agreements hereunder, the Parties undertake and agree as
follows:

 

ARTICLE
I

 

Definitions;
Recordation

 

Section 1.01. Definitions. The
following capitalized terms have the meanings given below.

 

“Acts” shall mean collectively the Marshall
Islands LP Act and the Marshall Islands LLC Act.

 

“Agreement” means this Contribution and
Conveyance Agreement.

 

 “Attorney-In-Fact”
has the meaning assigned to such term in Section 5.02.

 

“Bank Credit Facility” means the credit
agreement dated • , 2007 by and among the MLP, as the
borrower, the banks and financial institutions named therein as lenders, and
the other parties thereto.

 

“Beneficial Owner” has the meaning assigned to
such term in Section 6.03.

 

“Capital Maritime” has the meaning assigned to
such term in the first paragraph of this Agreement.

 

“Common Units” has the meaning assigned to such
term in the Partnership Agreement.

 

“Conveyed Interests” has the meaning assigned
to such term in Section 5.02.

 

“Conveying Parties” has the meaning assigned to
such term in Section 5.02.

 

“Effective Time” means the time when the
transactions contemplated by Article II hereof have been consummated.

 

“General Partner Units” has the meaning
assigned to such term in the Partnership Agreement.

 

“GP LLC” has the meaning assigned to such term
in the first paragraph of this Agreement.

 

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“Hazardous Substances” has the meaning assigned
to such term in the Omnibus Agreement.

 

“Incentive Distribution Rights” has the meaning
assigned to such term in the Partnership Agreement.

 

“Interests” means the shares of capital stock
of the Vessel Owning Subsidiaries and other rights and interests sold and
conveyed to the MLP (or intended so to be) pursuant to this Agreement.

 

“Laws” means any and all laws, statutes,
ordinances, rules or regulations promulgated by a governmental authority,
orders of a governmental authority, judicial decisions, decisions of
arbitrators or determinations of any governmental authority or court.

 

“MLP” has the meaning assigned to such term in
the first paragraph of this Agreement.

 

“Marshall Islands LLC Act” has the meaning
assigned to such term in Recital B.1 of this Agreement.

 

“Marshall Islands LP Act” has the meaning
assigned to such term in Recital A of this Agreement.

 

“Net Over-Allotment Proceeds” has the meaning
assigned to such term in Section 3.01.

 

“Offering” means the initial public offering
and sale of 11,750,000 Common Units by Capital Maritime to the public.

 

“Offering Proceeds” has the meaning assigned to
such term in Recital C.2 of this Agreement.

 

“OLLC” has the meaning assigned to such term in
the first paragraph of this Agreement.

 

“Omnibus Agreement” means the Omnibus Agreement
dated of even date herewith, by and among Capital Maritime, GP LLC, the OLLC
and the MLP.

 

“Over-Allotment Proceeds” has the meaning
assigned to such term in Section 3.01.

 

“Partnership Agreement” means the First Amended
and Restated Agreement of Limited Partnership of the MLP, as it may be amended
from time to time.

 

“Partnership Group” has the meaning assigned to
such term in the Omnibus Agreement.

 

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“Party and Parties” have the meanings assigned
to such terms in the first paragraph of this Agreement.

 

“Purchase Agreement” means the Purchase
Agreement by and among Capital Maritime, the GP LLC, the MLP, the OLLC, the
Underwriters and the other parties thereto, dated as of •
, 2007.

 

“Registration Statement” means the registration
statement on Form F-1 (File No. [•]) filed by the MLP relating to the
Offering, as it may be amended.

 

 “Specific
Conveyances” has the meaning assigned to such term in Section 2.08.

 

“Subordinated Units” has the meaning assigned
to such term in the Partnership Agreement.

 

“Underwriters” has the meaning assigned to such
term in Recital C.6 of this Agreement.

 

“Vessel Owning Subsidiaries” has the meaning
assigned to such term in Recital C.1 of this Agreement.

 

“Vessels” has the meaning assigned to such term
in Section 4.01(d).

 

ARTICLE
II

 

Contribution
and Conveyance

 

Section 2.01. Sale by Capital Maritime of
Interest in Vessel Owning Subsidiaries. Capital Maritime hereby sells to
the MLP, subsequent to the execution of the Purchase Agreement, all of the
outstanding shares of capital stock in the Vessel Owning Subsidiaries as set
forth on Schedule A hereto.

 

Section 2.02. Issuance of New Units and
Incentive Distribution Rights and Payment of Cash Dividend. The MLP hereby
issues to Capital Maritime (a) 11,750,000 Common Units, representing a 56.0%
limited partner interest in the MLP, (b) 8,805,521 Subordinated Units,
representing a 42.0% limited partner interest in the MLP, (c) the Incentive
Distribution Rights, (d) $25 million in cash representing a cash dividend and
(e) the right to receive an additional dividend in the amount of $30 million,
payable in cash or a number of Common Units necessary to satisfy the
Underwriters' over-allotment option or a combination thereof as described in
Section 3.02, as consideration for the all of the outstanding shares of capital
stock of the Vessel Owning Subsidiaries.

 

Section 2.03. Conversion of Capital
Maritime’s Limited Partner Interest. The MLP hereby converts Capital
Maritime’s original 98% limited partner interest into one Subordinated Unit.

 

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Section 2.04. Conversion of GP LLC’s
General Partner Interest. The MLP hereby converts GP LLC’s original 2%
general partner interest into 419,500 General Partner Units.

 

Section 2.05. MLP Receipt of Capital Stock
of Vessel Owning Subsidiaries. As consideration for (a) 11,750,000 Common
Units, (b)  8,805,521 Subordinated Units,
(c) the Incentive Distribution Rights and (d) the $25 cash dividend, the MLP
hereby acknowledges receipt of the shares of outstanding capital stock of the
Vessel Owning Subsidiaries.

 

Section 2.06. Capital Maritime Receipt of
New Units, Incentive Distribution Rights and Cash Dividend. As
consideration for the shares of capital stock of the Vessel Owning
Subsidiaries, Capital Maritime hereby acknowledges receipt of (a) 11,750,000
Common Units, representing a 56.0% limited partner interest in the MLP, (b)
8,805,521 Subordinated Units, representing a 42.0% limited partner interest in
the MLP, (c) the Incentive Distribution Rights, (d) $25 million in cash
representing a cash dividend, and (e) the right to receive an additional
dividend in the amount of $30 million, payable in cash or a number of Common
Units necessary to satisfy the Underwriters' over-allotment option or a
combination thereof as described in Section 3.02.

 

Section 2.07. Transfer of Interests to
OLLC. The MLP hereby transfers all of the Interests to the OLLC, and the
OLLC hereby acknowledges receipt of such Interests.

 

Section 2.08. Transfer of Incentive
Distribution Rights to GP LLC. Capital Maritime hereby transfers the
Incentive Distribution Rights to GP LLC, and GP LLC hereby acknowledges receipt
of such Incentive Distribution Rights.

 

Section 2.09. Specific Conveyances. To
further evidence the sale of the Interests reflected in this Agreement, each
party making such sale may have executed and delivered to the party receiving
such Interest being sold certain conveyance, assignment and bill of sale
instruments (the “Specific Conveyances”). The Specific Conveyances shall
evidence and perfect such sale made by this Agreement and shall not constitute
a second conveyance of any assets or interests therein and shall be subject to
the terms of this Agreement.

 

ARTICLE
III

 

Additional
Transaction

 

Section 3.01. Exercise of the Over-Allotment Option.
In the event the Underwriters exercise their over-allotment option, the MLP
shall issue to Capital Maritime up to 1,762,500 additional common units which
Capital Maritime, through the Underwriters and pursuant to the Underwriting
Agreement, will sell to the public in one or more parts during the 30-day
period following the date of the pricing of the Offering in exchange for $[•]
million (the “Over-Allotment Proceeds”). Capital Maritime will use part
of the Over-Allotment Proceeds to (a) pay the underwriting discounts and
commissions of $[•] million and (b) pay other transaction expenses
incurred by Capital Maritime in connection with the exercise of the
over-allotment option (such remainder, in the aggregate,

 

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the “Net Over-Allotment Proceeds”). Capital Maritime will retain
the Net Over-Allotment Proceeds, if any, and use such proceeds to repay
indebtedness or for general corporate purposes.

 

Section 3.02. Dividend. Upon the
earlier of (i) the exercise in full of the Underwriters’ over-allotment option
and (ii) 30 days after the date of the Underwriting Agreement, the MLP shall
pay to Capital Maritime an additional cash dividend in an amount of either $30
million if the over-allotment option is not exercised or, if the over-allotment
option is exercised, a number of Common Units necessary to satisfy the
over-allotment option, provided that if the Net Over-Allotment Proceeds are
less than $30 million, the MLP shall also pay to Capital Maritime an amount in
cash equal to the difference between $30 million and the Net Over-Allotment
Proceeds.

 

ARTICLE
IV

 

Representations
and Warranties of Capital Maritime; Disclaimer

 

Section
4.01 Capital Maritime represents and warrants that:

 

(a)           Each
of the Vessel Owning Subsidiaries is a corporation duly incorporated, organized
and validly existing in good standing under the laws of The Republic of the
Marshall Islands and has all requisite power and authority to operate its
assets and conduct its business as described in the Registration Statement;

 

(b)           The
execution and delivery of this Agreement and all documents, instruments and
agreements required to be executed and delivered by it pursuant to this
Agreement, and the completion of the transactions contemplated by this
Agreement, have been duly authorized by all necessary action on its part, and
this Agreement has been duly executed and delivered by it and constitutes a
legal, valid and binding obligation of it enforceable in accordance with its
terms, except as may be limited by bankruptcy, insolvency, liquidation,
reorganization, reconstruction and other similar laws of general application
affecting the enforceability of remedies and rights of creditors and except
that equitable remedies such as specific performance and injunction are in the discretion
of a court;

 

(c)           The
execution, delivery and performance by it of this Agreement will not conflict
with or result in any violation of or constitute a breach of any of the terms
or provisions of, or result in the acceleration of any obligation under, or
constitute a default under any provision of: (i) its or any Vessel Owning
Subsidiary’s articles of incorporation or by-laws or other organizational
documents; (ii) any lien, encumbrance, security interest, pledge, mortgage, charge, other claim,
bond, indenture, agreement, contract, franchise license, permit or other
instrument or obligation to which it or any Vessel Owning Subsidiary is a party
or is subject or by which any of its or any Vessel Owning Subsidiary’s assets
or properties may be bound; (iii) any applicable Law; or (iv) any
charter or

 

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shipbuilding contract to which any Vessel Owning
Subsidiary is a party or any material provision of any material contract to
which it or any Vessel Owning Subsidiary is a party or by which its or any
Vessel Owning Subsidiary’s properties are bound;

 

(d)           Except
as have already been obtained, no consent, permit, approval or authorization
of, notice or declaration to or filing with any governmental authority or any
other person, including those related to any environmental laws or regulations,
is required in connection with the execution and delivery by it of this
Agreement or the consummation by it of the transactions contemplated hereunder,
and any consents required for the transfer or assignment of the charters and
shipbuilding contracts related to the vessels owned by the Vessel Owning
Subsidiaries set forth on Schedule A to this Agreement (collectively, the “Vessels”)
have been duly obtained;

 

(e)           All of the issued and outstanding shares of
capital stock of each Vessel Owning Subsidiary are duly authorized and validly
issued in accordance with the articles of incorporation and by-laws of such
Vessel Owning Subsidiary and are fully paid and nonassessable;

 

(f)            Capital
Maritime owns all of the outstanding shares of capital stock of each Vessel
Owning Subsidiary and has good and marketable title thereto, free and clear of
all liens, encumbrances,
security interests, pledges, mortgages, charges or other claims; each
Vessel Owning Subsidiary owns the Vessel set forth opposite its name on
Schedule A hereto with good and marketable title, free and clear of all liens, encumbrances, security interests, pledges,
mortgages, charges or other claims, other than those arising under the Bank
Credit Facility;

 

(g)           There is no agreement, contract, option, commitment
or other right or understanding in favor of, or held by, any person other than
the MLP to acquire any Vessel Owning Subsidiary or the assets of any Vessel
Owning Subsidiary, including the Vessels, that has not been waived;

 

(h)           Correct
and complete copies of the organizational documents of each Vessel Owning
Subsidiary (as amended to the date hereof) and each of the charters and
shipbuilding contracts to which each Vessel Owning Subsidiary is a party (as
amended to the date hereof) have been made available to the MLP;

 

(i)            Each
charter and shipbuilding contract is a valid and binding agreement of each
contracting Vessel Owning Subsidiary enforceable in accordance with its terms
and, to the best knowledge of Capital Maritime, of all other parties thereto
enforceable in accordance with its terms;

 

(j)            Each
Vessel Owning Subsidiary has fulfilled all material obligations required
pursuant to its respective charter and shipbuilding contract to have been
performed by it prior to the date hereof and has not waived any

 

8

 

material rights thereunder; and no material default or
breach exists in respect thereof on its or any Vessel Owning Subsidiary’s part
or, to its knowledge, any of the other parties thereto and, to its knowledge,
no event has occurred which, after giving of notice or the lapse of time, or
both, would constitute such a material default or breach;

 

(k)           Except
for such liabilities, debts obligations, encumbrances, defects, restrictions or
claims of a general nature and magnitude that would arise in connection with
the operation of vessels of the same type as the Vessels in the ordinary course
of business, there are no liabilities, debts or obligations of, encumbrances,
defects or restrictions with respect to, or claims against any Vessel Owning
Subsidiary or any of the assets owned by any Vessel Owning Subsidiary,
including the Vessels, other than those arising under the Bank Credit Facility;
and

 

(l)            Each
Vessel is (i) adequate and suitable for use by the applicable Vessel Owning
Subsidiary in such Vessel Owning Subsidiary’s business as presently conducted
by it in all material respects as described in the Registration Statement,
ordinary wear and tear excepted; (ii) seaworthy in all material respects for
hull and machinery insurance warranty purposes and is in good running order and
repair; (iii) insured against all risks, and in amounts, consistent with common
industry practices; (iv) in compliance with maritime laws and regulations; (v)
duly registered under the flag set forth opposite such Vessel’s name on
Schedule A hereto; and (vi) in compliance in all material respects with the
requirements of its present class and classification society; and all class
certificates of each Vessel are clean and valid and free of recommendations
affecting class.

 

Section 4.02           Disclaimer
of Warranties; Subrogation; Waiver of Bulk Sales Laws.
(a)  EXCEPT TO THE EXTENT PROVIDED IN
THIS AGREEMENT OR IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING, INCLUDING, WITHOUT LIMITATION, THE OMNIBUS
AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE,
DOES NOT MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF
ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, ORAL
OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR
CONDITION OF THE ASSETS OWNED BY THE VESSEL OWNING SUBSDIARIES (INCLUDING THE
VESSELS), INCLUDING, WITHOUT LIMITATION, THE ENVIRONMENTAL CONDITION OF SUCH
ASSETS GENERALLY, INCLUDING, WITHOUT LIMITATION, THE PRESENCE OR LACK OF HAZARDOUS
SUBSTANCES OR OTHER MATTERS ON SUCH ASSETS, (B) THE INCOME TO BE DERIVED
FROM SUCH ASSETS, (C) THE SUITABILITY OF SUCH ASSETS FOR ANY AND ALL
ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON OR THEREWITH, (D) THE
COMPLIANCE OF OR BY SUCH ASSETS OR THEIR OPERATION WITH ANY LAWS (INCLUDING
WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL PROTECTION,

 

9

 

POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR
REQUIREMENTS), OR (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY,
PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF SUCH ASSETS. EXCEPT TO THE
EXTENT PROVIDED IN THIS AGREEMENT OR IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT
LIMITATION, THE OMNIBUS AGREEMENT, EACH PARTY ACKNOWLEDGES AND AGREES THAT SUCH
PARTY HAS HAD THE OPPORTUNITY TO INSPECT THE RESPECTIVE ASSETS OF THE VESSEL
OWNING SUBSIDIARIES, AND SUCH PARTY IS RELYING SOLELY ON ITS OWN INVESTIGATION
OF THE RESPECTIVE ASSETS OF THE VESSEL OWNING SUBSIDIARIES AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE OTHER PARTIES. EXCEPT TO
THE EXTENT PROVIDED IN THIS AGREEMENT OR IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING, INCLUDING, WITHOUT
LIMITATION, THE OMNIBUS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR BOUND IN
ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION
PERTAINING TO THE ASSETS OF THE VESSEL OWNING SUBSIDIARIES FURNISHED BY ANY
AGENT, EMPLOYEE, SERVANT OR THIRD PARTY. THIS SECTION SHALL SURVIVE THE SALE
AND CONVEYANCE OF THE INTERESTS OR THE TERMINATION OF THIS AGREEMENT. THE
PROVISIONS OF THIS SECTION HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE
CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY
REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH
RESPECT TO THE INTERESTS AND THE ASSETS OF THE VESSEL OWNING SUBSIDIARIES THAT
MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT
AS SET FORTH IN THIS AGREEMENT OR IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED
IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING, INCLUDING, WITHOUT
LIMITATION, THE OMNIBUS AGREEMENT.

 

ARTICLE
V

 

Further
Assurances

 

Section 5.01. Further Assurances. From
time to time after the date hereof, and without any further consideration, the
Parties agree to execute, acknowledge and deliver all such additional deeds,
assignments, bills of sale, conveyances, instruments, notices, releases, acquaintances
and other documents, and will do all such other acts and things, all in
accordance with applicable Law, as may be necessary or appropriate
(a) more fully to assure that the applicable Parties own all of the
properties, rights, titles, interests, estates, remedies, powers and privileges
granted by this Agreement, or which are intended to be so granted,
(b) more fully and effectively to vest in the applicable Parties and their
respective successors and assigns beneficial and record

 

10

 

title to the interests sold and conveyed by this Agreement or intended
so to be and (c) to more fully and effectively carry out the purposes and
intent of this Agreement.

 

Section 5.02. Power of Attorney. Each
Party that has conveyed any Interests (the “Conveyed Interests”)
pursuant to this Agreement (collectively, the “Conveying Parties”)
hereby constitutes and appoints GP LLC (the “Attorney-in-Fact”) its true
and lawful attorney-in-fact with full power of substitution for it and in its
name, place and stead or otherwise on behalf of the applicable Conveying Party
and its successors and assigns, and for the benefit of the Attorney-in-Fact to
demand and receive from time to time the Conveyed Interests sold and conveyed by
this Agreement (or intended so to be) and to execute in the name of the
applicable Conveying Party and its successors and assigns instruments of
conveyance, instruments of further assurance and to give receipts and releases
in respect of the same, and from time to time to institute and prosecute in the
name of the applicable Conveying Party for the benefit of the Attorney-in-Fact,
any and all proceedings at law, in equity or otherwise which the
Attorney-in-Fact may deem proper in order to (a) collect, assert or
enforce any claims, rights or titles of any kind in and to the Conveyed
Interests, (b) defend and compromise any and all actions, suits or
proceedings in respect of any of the Conveyed Interests, and (c) do any
and all such acts and things in furtherance of this Agreement as the
Attorney-in-Fact shall deem advisable. Each Conveying Party hereby declares
that the appointment hereby made and the powers hereby granted are coupled with
an interest and are and shall be irrevocable and perpetual and shall not be
terminated by any act of any Conveying Party or its successors or assigns or by
operation of law.

 

ARTICLE
VI

 

Miscellaneous

 

Section 6.01. Completion of Transactions.
The transactions provided for in Articles II and III of this Agreement shall be
completed on the dates specified in this Agreement and in the following
order:  (i) the transactions provided for
in Article II shall be completed concurrently and (ii) the transactions
provided for in Article III shall be completed in the order set forth therein.

 

Section 6.02. Survival of Representations
and Warranties. The representations and warranties of Capital Maritime in
this Agreement and in or under any documents, instruments and agreements
delivered pursuant to this Agreement, will survive the completion of the
transactions contemplated hereby regardless of any independent investigations
that the MLP may make or cause to be made, or knowledge it may have, prior to
the Effective Time and will continue in full force and effect for a period of
one year from the Effective Time. At the end of such period, such
representations and warranties will terminate, and no claim may be brought by
the MLP against Capital Maritime thereafter in respect of such representations
and warranties, except for claims that have been asserted by the MLP prior to
the Effective Time.

 

Section 6.03. Costs. Capital Maritime
shall pay any and all sales, use and similar taxes arising out of the sale,
conveyances and deliveries to be made hereunder,

 

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and shall pay all documentary, filing, recording, transfer, deed, and
conveyance taxes and fees required in connection therewith.

 

Section 6.04. Headings; References;
Interpretation. All Article and Section headings in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder”
and words of similar import, when used in this Agreement, shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. All
references herein to Articles and Sections shall, unless the context requires a
different construction, be deemed to be references to the Articles and Sections
of this Agreement, respectively. All personal pronouns used in this Agreement,
whether used in the masculine, feminine or neuter gender, shall include all
other genders, and the singular shall include the plural and vice versa. The
use herein of the word “including” following any general statement, term or
matter shall not be construed to limit such statement, term or matter to the
specific items or matters set forth immediately following such word or to
similar items or matters, whether or not non-limiting language (such as “without
limitation,” “but not limited to,” or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such
general statement, term or matter.

 

Section 6.05. Successors and Assigns. The
Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and assigns.

 

Section 6.06. No Third Party Rights. The
provisions of this Agreement are intended to bind the Parties as to each other
and are not intended to and do not create rights in any other person or confer
upon any other person any benefits, rights or remedies and no person is or is
intended to be a third party beneficiary of any of the provisions of this
Agreement.

 

Section 6.07. Counterparts. This
Agreement may be executed in any number of counterparts, all of which together
shall constitute one agreement binding on the parties hereto.

 

Section 6.08. Governing Law. This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York applicable to contracts made and to be performed wholly
within such jurisdiction without giving effect to conflict of law principles
thereof other than Section 5-1401 of the New York
General Obligations Law, except to the extent that it is mandatory that the law
of some other jurisdiction, wherein the Vessels are located, shall apply.

 

Section 6.09. Severability. If any of
the provisions of this Agreement are held by any court of competent
jurisdiction to contravene, or to be invalid under, the laws of any
governmental body having jurisdiction over the subject matter hereof, such
contravention or invalidity shall not invalidate the entire Agreement. Instead,
this Agreement shall be construed as if it did not contain the particular
provision or provisions held to be invalid, and an equitable adjustment shall
be made and necessary provision

 

12

 

added so as to give effect, as nearly as possible, to the intention of
the Parties as expressed in this Agreement at the time of execution of this
Agreement.

 

Section 6.10. Deed; Bill of Sale;
Assignment. To the extent required and permitted by applicable Law, this
Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the
Interests.

 

Section 6.11. Amendment or Modification.
This Agreement may be amended or modified from time to time only by the written
agreement of all the Parties hereto.

 

Section 6.12. Integration. This Agreement
and the instruments referenced herein supersede all previous understandings or
agreements among the Parties, whether oral or written, with respect to its
subject matter hereof. This Agreement and such instruments contain the entire
understanding of the Parties with respect to the subject matter hereof and
thereof. No understanding, representation, promise or agreement, whether oral
or written, is intended to be or shall be included in or form part of this
Agreement unless it is contained in a written amendment hereto executed by the
Parties hereto after the date of this Agreement.

 

13

 

IN WITNESS WHEREOF, this Agreement has been duly
executed by the parties hereto as of the date first above written.

 

	
   

  	
   

  	
  CAPITAL MARITIME & TRADING CORP.,

  
	
   

  	
   

  	
  a Marshall Islands Corporation,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  CAPITAL GP L.L.C.,

  
	
   

  	
   

  	
  a Marshall Islands limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  CAPITAL PRODUCT PARTNERS L.P.,

  
	
   

  	
   

  	
  a Marshall Islands limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
   

  	
  CAPITAL OPERATING L.L.C.,

  
	
   

  	
   

  	
  a Marshall Islands limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

14

 

SCHEDULE A

 

VESSEL OWNING SUBSIDIARIES, VESSELS AND CHARTERS

 

 

	
  Vessel Owning Subsidiary

  	
   

  	
  Vessel

  	
   

  	
  Jurisdiction of Registration

  	
   

  	
  Number of Shares

  being Sold

  
	
  Shipping Rider Co.

  	
   

  	
  Atlantas

  	
   

  	
  Marshall Islands and
  Isle of Man

  	
   

  	
  500

  
	
  Canvey Shipmanagement
  Co.

  	
   

  	
  Assos

  	
   

  	
  Liberia

  	
   

  	
  500

  
	
  Centurion Navigation
  Limited

  	
   

  	
  Aktoras

  	
   

  	
  Marshall Islands and
  Isle of Man

  	
   

  	
  500

  
	
  Polarwind Maritime S.A.

  	
   

  	
  Agisilaos

  	
   

  	
  Marshall Islands

  	
   

  	
  500

  
	
  Carnation Shipping
  Company

  	
   

  	
  Arionas

  	
   

  	
  Marshall Islands

  	
   

  	
  500

  
	
  Iraklitos Shipping
  Company

  	
   

  	
  Axios

  	
   

  	
  Liberia

  	
   

  	
  100

  
	
  Tempest Maritime Inc.

  	
   

  	
  Aiolos

  	
   

  	
  Marshall Islands and
  Isle of Man

  	
   

  	
  500

  
	
  Apollonas Shipping
  Company

  	
   

  	
  Avax

  	
   

  	
  Liberia

  	
   

  	
  500

  

 

15Exhibit 10.6

 

 

	
   

  
	
   

  
	
  FORM OF SHARE PURCHASE
  AGREEMENT

  
	
   

  
	
   

  
	
  Dated •
  March, 2007

  
	
   

  
	
   

  
	
  between

  
	
   

  
	
   

  
	
  CAPITAL MARITIME &
  TRADING CORP.

  
	
   

  
	
   

  
	
  and

  
	
   

  
	
   

  
	
  CAPITAL PRODUCT
  PARTNERS L.P.

  
	
   

  
	
   

  

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Interpretation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01 Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase and Sale of
  Shares; Closing

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01 Purchase and Sale of Shares

  	
   

  	
  4

  
	
  SECTION 2.02 Closing

  	
   

  	
  5

  
	
  SECTION 2.03 Place of Closing

  	
   

  	
  5

  
	
  SECTION 2.04 Purchase Price for Shares

  	
   

  	
  5

  
	
  SECTION 2.05 Payment of the Purchase Price

  	
   

  	
  5

  
	
  SECTION 2.06 Deficient Vessel

  	
   

  	
  5

  
	
  SECTION 2.07 Delay in Delivery

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Representations and
  Warranties of the Buyer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01 Organization and Limited Partnership
  Authority

  	
   

  	
  6

  
	
  SECTION 3.02 Agreement Not in Breach of Other
  Instruments

  	
   

  	
  6

  
	
  SECTION 3.03 No Legal Bar

  	
   

  	
  7

  
	
  SECTION 3.04 Availability of Funds

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Representations and
  Warranties of the Seller

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01 Organization and Corporate Authority

  	
   

  	
  7

  
	
  SECTION 4.02 Agreement Not in Breach of Other
  Instruments

  	
   

  	
  7

  
	
  SECTION 4.03 No Legal Bar

  	
   

  	
  8

  
	
  SECTION 4.04 Good and Marketable Title to Shares

  	
   

  	
  8

  
	
  SECTION 4.05 Right to Enter Agreement

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Representations and
  Warranties of the Seller Regarding the Vessel Owning Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01 Organization Good Standing and
  Authority

  	
   

  	
  8

  
	
  SECTION 5.02 Capitalization

  	
   

  	
  8

  
	
  SECTION 5.03 Organizational Documents

  	
   

  	
  9

  
	
  SECTION 5.04 Agreement Not in Breach of Other
  Instruments

  	
   

  	
  9

  
	
  SECTION 5.05 Litigation

  	
   

  	
  9

  
	
  SECTION 5.06 Indebtedness to and from Officers, etc.

  	
   

  	
  9

  
	
  SECTION 5.07 Personnel

  	
   

  	
  10

  

 

i

 

	
  SECTION 5.08 Contracts and Agreements

  	
   

  	
  10

  
	
  SECTION 5.09 Compliance with Law

  	
   

  	
  10

  
	
  SECTION 5.10 No Undisclosed Liabilities

  	
   

  	
  10

  
	
  SECTION 5.11 Disclosure of Information

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Representations and
  Warranties of the Seller regarding the Vessels

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01 Title to Vessels

  	
   

  	
  11

  
	
  SECTION 6.02 No Encumbrances

  	
   

  	
  11

  
	
  SECTION 6.03 Condition

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Pre-Closing Matters

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01 Covenants of the Seller Prior to each
  Closing

  	
   

  	
  11

  
	
  SECTION 7.02 Covenant of the Buyer Prior to each
  Closing

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Conditions Of Closing

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01 Conditions of the Seller

  	
   

  	
  13

  
	
  SECTION 8.02 Conditions of the Buyer

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Termination, Amendment
  and Waiver

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01 Termination of Agreement

  	
   

  	
  14

  
	
  SECTION 9.02 Termination in Respect of a Vessel
  Owning Subsidiary

  	
   

  	
  15

  
	
  SECTION 9.03 Amendments and Waivers

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Indemnification

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01 Indemnity by the Seller

  	
   

  	
  15

  
	
  SECTION 10.02 Indemnity by the Buyer

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01 Governing Law

  	
   

  	
  16

  
	
  SECTION 11.02 Counterparts

  	
   

  	
  16

  
	
  SECTION 11.03 Complete Agreement

  	
   

  	
  16

  
	
  SECTION 11.04 Interpretation

  	
   

  	
  16

  
	
  SECTION 11.05 Severability

  	
   

  	
  16

  
	
  SECTION 11.06 Third Party Rights

  	
   

  	
  16

  
	
  SECTION 11.07 Notices

  	
   

  	
  16

  

 

ii

 

SHARE
PURCHASE AGREEMENT (the “Agreement”),
dated as of March • , 2007, by and between CAPITAL MARITIME & TRADING CORP.
(the “Seller”), a
corporation organized under the laws of the Republic of the Marshall Islands,
and CAPITAL PRODUCT PARTNERS L.P.
(the “Buyer”), a limited
partnership organized under the laws of the Republic of the Marshall Islands
and recently formed by the Seller.

 

RECITAL

 

WHEREAS, the Buyer wishes to purchase from the Seller,
and the Seller wishes to sell to the Buyer, the shares of common stock as set
forth on Schedule C to this Agreement (the “Shares”) representing all of the issued and outstanding shares
of common stock of each of the vessel owning subsidiaries that will take
delivery of a Vessel in 2007 as set forth in Schedule A.I hereto (each, a “2007 Vessel Owning Subsidiary,” and collectively the “2007 Vessel Owning Subsidiaries”)
and of each of the vessel owning subsidiaries that will take delivery of a
Vessel in 2008 as set forth in Schedule A.II hereto (each, a “2008
Vessel Owning Subsidiary,” and collectively the “2008 Vessel Owning
Subsidiaries” and, together with the 2007 Vessel Owning Subsidiaries, the “Vessel
Owning Subsidiaries”).

 

WHEREAS, each of the Vessel Owning Subsidiaries is
party to a shipbuilding contract for the construction and delivery of a vessel
(each, a “Ship Building Contract”) the name of which is set forth
opposite that Vessel Owning Subsidiary’s name on Schedule A.I or on
Schedule A.II hereto (each, a “Vessel” and collectively, the “Vessels”).

 

WHEREAS, each of the Vessels is subject to a medium to
long-term charter set forth opposite that Vessels name on Schedule A.I or on
Schedule A.II hereto (collectively, the “Charters”), and each such
Charter will commence upon delivery of the applicable Vessel.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

ARTICLE
I

 

Interpretation

 

SECTION
1.01  Definitions. In this
Agreement, unless the context requires otherwise or unless otherwise
specifically provided herein, the following terms shall have the respective
meanings set out below and grammatical variations of such terms shall have
corresponding meanings:

 

“Agreement” means this Agreement, including its
recitals and schedules, as amended and supplemented;

 

 

“Applicable Law” in respect of any Person,
property, transaction or event, means all laws, statutes, ordinances,
regulations, municipal by-laws, treaties, judgments and decrees applicable to
that Person, property, transaction or event and, whether or not having the
force of law, all applicable official directives, rules, consents, approvals,
authorizations, guidelines, orders, codes of practice and policies of any
Governmental Authority having or purporting to have authority over that Person,
property, transaction or event and all general principles of common law and
equity;

 

“Builder” means, in respect of the Vessels to
be delivered to the 2007 Vessel Owning Subsidiaries, Hyundai MIPO Dockyard Co.,
Ltd., South Korea and in respect of the Vessels to be delivered to the 2008
Vessel Owning Subsidiaries, STX Shipbuilding Co., Ltd., South Korea, and any
successor or permitted assign thereof;

 

“Business Day” means any day other than a
Saturday, Sunday or any statutory holiday on which banks in London, Greece and
New York are required to close;

 

“Buyer Indemnitees” has the meaning given to it
in Section 10.01;

 

“Change of Control” has, with respect to the
Buyer, the meaning ascribed to such term in the Omnibus Agreement;

 

“Charters” has the meaning given to it in the
recitals;

 

“Closing” has the meaning given to it in
Section 2.01;

 

“Closing Date” means the day on which a Closing
takes place;

 

“Common Units” means the common units
constituting the capital of the Buyer;

 

“Contracts” has the meaning given to it in
Section 5.08;

 

“Credit Facility” means the US$370 million
credit facility agreement dated • , 2007
between the Buyer and HSH Nordbank AG;

 

“Daily Charter Rate” means, with respect to any
Vessel, the daily charter rate set forth opposite that Vessel’s name on
Schedule A.I or on Schedule A.II hereto;

 

“Default” means a material Event of Default
under and as defined in the Credit Facility that is not capable of remedy or,
if capable of remedy has not been cured by the Buyer within the applicable cure
period; for the purposes of this definition, a “material Event of Default”
means any Event of Default the effect of which is to prohibit or prevent the
Buyer from (i) paying distributions or (ii) borrowing, pursuant to the Credit
Facility, those funds required to complete its obligations under this
Agreement;

 

“Delivered” means, in respect of any Vessel,
the concurrent delivery by the respective Vessel Owning Subsidiary and the
Builder of that Vessel, to each other, of

 

2

 

a protocol of acceptance and delivery acknowledging,
the delivery of that Vessel by the Builder, and the acceptance thereof by that
Vessel Owning Subsidiary;

 

“Delivery Date” means, with respect to any
Vessel, the date that Vessel is Delivered to the Vessel Owning Subsidiary set
out across from that Vessel on Schedule A.I or on Schedule A.II hereto;

 

“Encumbrance” means any mortgage, lien, charge,
assignment, adverse claim, hypothecation, restriction, option, covenant,
condition or encumbrance, whether fixed or floating, on, or any security
interest in, any property whether real, personal or mixed, tangible or
intangible, any pledge or hypothecation of any property, any deposit
arrangement, priority, conditional sale agreement, other title retention
agreement or equipment trust, capital lease or other security arrangements of
any kind;

 

“Financing” has the meaning given to it in
Section 3.04;

 

“Governmental Authority” means any domestic or
foreign government, including federal, provincial, state, municipal, county or
regional government or governmental or regulatory authority, domestic or
foreign, and includes any department, commission, bureau, board, administrative
agency or regulatory body of any of the foregoing and any multinational or
supranational organization;

 

“Initial Public Offering” means the initial
public offering by the Seller of the Buyer’s common units pursuant to the
Registration Statement;

 

“Losses” means, with respect to any matter, all
losses, claims, damages, liabilities, deficiencies, costs, expenses (including
all costs of investigation, legal and other professional fees and disbursements,
interest, penalties and amounts paid in settlement) or diminution of value,
whether or not involving a claim from a third party, however specifically
excluding consequential, special and indirect losses, loss of profit and loss
of opportunity;

 

“Manager” means Capital Ship Management Corp.;

 

“Notice” means any notice, citation, directive,
order, claim, litigation, investigation, proceeding, judgment, letter or other
communication, written or oral, actual or threatened, from any Person;

 

“Omnibus Agreement” means the Omnibus
Agreement, dated as of the date hereof, between, among others, the Buyer and
the Seller;

 

“Parties” means all parties to this Agreement
and “Party” means any one of them;

 

“Partnership Agreement” means the First Amended
and Restated Agreement of Limited Partnership of the Buyer dated as of the date
hereof;

 

3

 

“Person” means an individual, legal personal
representative, corporation, body corporate, firm, partnership, trust, trustee,
syndicate, joint venture, unincorporated organization or Governmental
Authority;

 

“Purchase Price” has the meaning given to it in
Section 2.04;

 

“Registration Statement” means the registration
statement on Form F-1 (File No. [•]) filed by the Buyer in connection with
the Initial Public Offering, as it may be amended.

 

“Seller Indemnities” has the meaning given to
it in Section 10.02;

 

“Shares” has the meaning given to it in the
recitals;

 

“Ship Building Contract” has the meaning given
to it in the recitals;

 

“Taxes” means all income, franchise, business,
property, sales, use, goods and services or value added, withholding, excise,
alternate minimum capital, transfer, excise, customs, anti-dumping, stumpage,
countervail, net worth, stamp, registration, franchise, payroll, employment,
health, education, business, school, property, local improvement, development,
education development and occupation taxes, surtaxes, duties, levies, imposts,
rates, fees, assessments, dues and charges and other taxes required to be reported
upon or paid to any domestic or foreign jurisdiction and all interest and
penalties thereon;

 

“Time of Closing” has the meaning given to it
in Section 2.01;

 

“Vessel Owning Subsidiaries” has the meaning
given to it in the recitals;

 

“Vessels” has the meaning given to it in the
recitals;

 

“2007 Vessel Owning Subsidiaries” has the
meaning given to it in the recitals;

 

“2008 Vessel Owning Subsidiaries” has the
meaning given to it in the recitals.

 

ARTICLE
II

 

Purchase
and Sale of Shares; Closing

 

SECTION
2.01  Purchase and Sale of Shares.
The Seller agrees to sell and transfer to the Buyer, and the Buyer agrees to
purchase from the Seller for the Purchase Price and in accordance with and
subject to the terms and conditions set forth in this Agreement, the Shares.

 

4

 

SECTION
2.02  Closing. On the terms and
subject to the conditions of this Agreement, the sale and transfer of the
Shares of each of the Vessel Owning Subsidiaries and payment of the Purchase
Price shall take place on a date that is within five (5) Business Days of the
Delivery Date for that Vessel Owning Subsidiary’s Vessel or on such other date
as may be agreed upon in writing by the Seller and the Buyer (the “Time of
Closing”); provided that if any such sale and transfer of a Vessel
Owning Subsidiary’s Shares is scheduled to occur on the Delivery Date, the Time
of Closing must be after the registration of the Vessel in the name of the
relevant Vessel Owning Subsidiary. Each sale and transfer of Shares of a Vessel
Owning Subsidiary is hereinafter referred to as a “Closing.”

 

SECTION
2.03  Place of Closing. Each
Closing shall take place at a place agreed upon in writing by the Seller and
the Buyer.

 

SECTION
2.04  Purchase Price for Shares. At
the applicable Time of Closing, the Buyer shall pay to the Seller (to such
account as the Seller shall nominate) the amount set out on Schedule B
across from the applicable Vessel Owning Subsidiary’s name, for that Vessel
Owning Subsidiary’s Shares (each such amount, a “Purchase Price”).

 

SECTION
2.05  Payment of the Purchase Price. Each
Purchase Price will be paid by the Buyer to the Seller of the Shares of the
applicable Vessel Owning Subsidiary in respect of which that Purchase Price is
payable by wire transfer of immediately available funds to an account
designated in writing by the Seller. The Seller shall give the Buyer written
notice ten (10) days prior to the expected Time of Closing

 

SECTION
2.06  Deficient Vessel. In the
event that there is a deficiency in a Vessel such that the Vessel does not meet
the specifications set forth in the relevant Ship Building Contract then:

 

(a)  if
the relevant Vessel Owning Subsidiary is not obligated under the Ship Building
Contract to purchase the Vessel or if the relevant Vessel Owning Subsidiary is
obligated under the Ship Building Contract to purchase the Vessel but the
charterer under the relevant Charter refuses to accept the Vessel or refuses to
accept the Vessel without any amendments to the relevant Charter, and the
Seller does not secure prior to the Time of Closing in respect of such Vessel
Owning Subsidiary a replacement charter similar in all material respects to the
relevant Charter, in the opinion of the Board of Directors of the Buyer, acting
reasonably:

 

(i)  the Buyer may elect to purchase the Vessel
Owning Subsidiary (in which case the Seller and applicable Vessel Owning
Subsidiary will complete the purchase of such Vessel in accordance with the
Ship Building Contract, and the Buyer will complete the purchase of the Vessel
Owning Subsidiary hereunder); or

 

(ii)  the Buyer may elect not to purchase the
Vessel Owning Subsidiary from the Seller, and the Seller and applicable Vessel
Owning Subsidiary may complete the purchase of such Vessel in accordance with

 

5

 

the Ship
Building Contract, provided that any such purchase, ownership and operation of
the Vessel by the Seller, the Vessel Owning Subsidiary or any of their
affiliates shall be subject to the terms of the Omnibus Agreement; and

 

(b)  if
the relevant Vessel Owning Subsidiary is obligated under the Ship Building
Contract to purchase the Vessel and the charterer under the relevant Charter
accepts the Vessel with no amendments to the Charter as a result of such
deficiencies, the Buyer will complete the purchase of the Vessel Owning
Subsidiary hereunder;

 

(c)  if
the Buyer completes the purchase of the relevant Vessel Owning Subsidiary
pursuant to subsection (a)(i) or (b) above and the Daily Charter Rate under the
relevant Charter has not decreased as a result of such deficiencies, the Seller
shall have the right to receive and retain any adjustments, rebates, discounts
or other reductions related to such deficiency received by the relevant Vessel
Owning Subsidiary pursuant to the relevant Ship Building Contract.

 

SECTION
2.07  Delay in Delivery. In the
event that there has been a delay in excess of three hundred (300) days in the
Delivery of any Vessel to a Vessel Owning Subsidiary from the delivery date
provided for in the relevant Ship Building Contract, the Buyer may elect not to
purchase such Vessel Owning Subsidiary from the Seller, and the Seller and
applicable Vessel Owning Subsidiary may complete the purchase of such Vessel in
accordance with the Ship Building Contract, provided that any such purchase,
ownership and operation of the Vessel by the Seller, the Vessel Owning
Subsidiary or any of their affiliates shall be subject to the terms of the
Omnibus Agreement.

 

ARTICLE
III

 

Representations
and Warranties of the Buyer

 

The Buyer represents and warrants to the Seller that
as of the date hereof and on each respective Closing Date:

 

SECTION
3.01  Organization and Limited
Partnership Authority. The Buyer is duly formed, validly existing and in
good standing under the laws of the Republic of The Marshall Islands, and has
all requisite limited partnership power and authority to enter into this
Agreement and to consummate the transactions contemplated hereby. This
Agreement has been duly executed and delivered by the Buyer, has been
effectively authorized by all necessary action, limited partnership or
otherwise, and constitutes legal, valid and binding obligations of the Buyer.
No meeting has been convened or resolution proposed or petition presented and
no order has been made to wind up the Buyer.

 

SECTION
3.02  Agreement Not in Breach of Other
Instruments. The execution and delivery of this Agreement, the consummation
of the transactions contemplated hereby and the fulfillment of the terms hereof
will not result in a breach of any of the terms or provisions of, or constitute
a default under, or conflict with, any agreement or other instrument to which
the Buyer is a party or by which it is bound, the Certificate of

 

6

 

Formation and the Partnership Agreement, any
judgment, decree, order or award of any court, governmental body or arbitrator
by which the Buyer is bound, or any law, rule or regulation applicable to
the Buyer which would have a material effect on the transactions contemplated
hereby.

 

SECTION
3.03  No Legal Bar. The Buyer is
not prohibited by any order, writ, injunction or decree of any body of
competent jurisdiction from consummating the transactions contemplated by this
Agreement and no such action or proceeding is pending or, to the best of its
knowledge and belief, threatened against the Buyer which questions the validity
of this Agreement, any of the transactions contemplated hereby or any action
which has been taken by any of the parties in connection herewith or in
connection with any of the transactions contemplated hereby.

 

SECTION
3.04  Availability of Funds.  The
Buyer has firm financing commitments that are sufficient to enable it to pay
the Purchase Price of the Shares of the 2007 Vessel Owning Subsidiaries and 50%
of the Purchase Price of the Shares of the 2008 Vessel Owning Subsidiaries. The
financing required to pay the Purchase Price is referred to in this Agreement
as the “Financing.”  The Buyer
does not have any reason to believe that any of the conditions of the Financing
will not be satisfied or that the Financing will not be available to the Buyer
on a timely basis to pay the Purchase Price of the Shares of the 2007 Vessel
Owning Subsidiaries and 50% of the Purchase Price of the Shares of the 2008
Vessel Owning Subsidiaries.

 

ARTICLE
IV

 

Representations
and Warranties of the Seller

 

The Seller represents and warrants to the Buyer that
as of the date hereof and on each respective Closing Date:

 

SECTION
4.01  Organization and Corporate Authority.
The Seller is duly incorporated, validly existing and in good standing under
the laws of the Republic of The Marshall Islands, and has all requisite
corporate power and authority to enter into this Agreement and to consummate
the transactions contemplated hereby. This Agreement has been duly executed and
delivered by the Seller, has been effectively authorized by all necessary
action, corporate or otherwise, and constitutes legal, valid and binding
obligations of the Seller. No meeting has been convened or resolution proposed
or petition presented and no order has been made to wind up the Seller.

 

SECTION
4.02  Agreement Not in Breach of Other
Instruments. The execution and delivery of this Agreement, the consummation
of the transactions contemplated hereby and the fulfillment of the terms hereof
will not result in a breach of any of the terms or provisions of, or constitute
a default under, or conflict with, any agreement or other instrument to which
the Seller is a party or by which it is bound, the Articles of Incorporation
and Bylaws of the Seller, any judgment, decree, order or award of any court,
governmental body or arbitrator by which the Seller is bound, or any law,
rule or regulation applicable to the Seller.

 

7

 

SECTION
4.03  No Legal Bar. The Seller is
not prohibited by any order, writ, injunction or decree of any body of
competent jurisdiction from consummating the transactions contemplated by this
Agreement and no such action or proceeding is pending or, to the best of its
knowledge and belief, threatened against the Seller which questions the
validity of this Agreement, any of the transactions contemplated hereby or any
action which has been taken by any of the parties in connection herewith or in
connection with any of the transactions contemplated hereby.

 

SECTION
4.04  Good and Marketable Title to
Shares. The Seller is the registered owner of all of the Shares and now
has, and at each Closing will have and convey to the Buyer, good and marketable
title to the Shares, free and clear of any and all Encumbrances.

 

SECTION
4.05  Right to Enter Agreement. The
Seller has the full right, power and authority to enter into this Agreement and
to transfer, convey and sell to the Buyer at the Time of Closing the Shares and
upon consummation of the purchase contemplated hereby, the Buyer will acquire
from the Seller good and marketable title to the Shares, free and clear of all
covenants, conditions, restrictions, voting trust arrangements, liens, charges,
encumbrances, options and adverse claims or rights whatsoever.

 

ARTICLE
V

 

Representations
and Warranties of 

the Seller Regarding the Vessel Owning Subsidiaries

 

The Seller represents and warrants to the Buyer that
as of the date hereof and on each respective Closing Date:

 

SECTION
5.01  Organization Good Standing and
Authority. Each of the Vessel Owning Subsidiaries is a corporation duly
incorporated, validly existing and in good standing under the laws of the Republic
of The Marshall Islands. Each of the Vessel Owning Subsidiaries has full
corporate power and authority to carry on its business as it is now, and has
since its incorporation been, conducted, and is entitled to own, lease or
operate the properties and assets it now owns, leases or operates and to enter
into legal and binding contracts. Each of the Vessel Owning Subsidiaries is
qualified to do business, is in good standing and has all required and
appropriate licenses and authorizations in each jurisdiction in which its
failure to obtain or maintain such qualification, good standing, licensing or
authorization would have a material adverse effect on the condition (financial
or otherwise), assets, properties, business or prospects of such Vessel Owning
Subsidiary taken as a whole. No meeting has been convened or resolution
proposed or petition presented and no order has been made to wind up any Vessel
Owning Subsidiary.

 

SECTION
5.02  Capitalization. The Shares
consist of the shares listed next to each of the Vessel Owning Subsidiaries
listed in Schedule C. The Shares have been duly authorized and validly
issued and are fully paid and non-assessable, and constitute the total authorized,
issued and outstanding capital stock of each of the Vessel Owning Subsidiaries.

 

8

 

There are not, and on each respective Closing
Date there will not be, outstanding (i) any options, warrants or other
rights to purchase from any Vessel Owning Subsidiary any capital stock of such
Vessel Owning Subsidiary, (ii) any securities convertible into or
exchangeable for shares of such capital stock or (iii) any other
commitments of any kind for the issuance of additional shares of capital stock
or options, warrants or other securities of the Vessel Owning Subsidiaries.

 

SECTION
5.03  Organizational Documents. The
Seller has supplied to the Buyer true and correct copies of the organizational
documents of each of the Vessel Owning Subsidiaries, in each case as in effect
on each respective Closing Date (the “Organizational Documents”) and no
amendments will be made to the Organizational Documents prior to any Closing
Date without the prior written consent of the Buyer (such consent not to be
unreasonably withheld).

 

SECTION
5.04  Agreement Not in Breach of Other
Instruments. Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby will violate, or result in
a breach of, any of the terms and provisions of, or constitute a default under,
or conflict with, or give any other party thereto a right to terminate any
agreement or other instrument to which any of the Vessel Owning Subsidiaries is
a party or by which any of them is bound including, without limitation, any of
the Charter Documents or any judgment, decree, order or award of any court,
governmental body or arbitrator applicable to any of the Vessel Owning
Subsidiaries.

 

SECTION
5.05  Litigation.

 

(a).          There
is no action, suit or proceeding to which any of the Vessel Owning Subsidiaries
is a party (either as a plaintiff or defendant) pending before any court or
governmental agency, authority or body or arbitrator; there is no action, suit
or proceeding threatened against any of the Vessel Owning Subsidiaries; and, to
the best knowledge of the Seller, there is no basis for any such action, suit
or proceeding;

 

(b).          None
of the Vessel Owning Subsidiaries has been permanently or temporarily enjoined
by any order, judgement or decree of any court or any governmental agency,
authority or body from engaging in or continuing any conduct or practice in
connection with the business, assets, or properties of any of the Vessel Owning
Subsidiaries; and

 

(c).          There
is not in existence any order, judgment or decree of any court or other
tribunal or other agency enjoining or requiring any of the Vessel Owning
Subsidiaries to take any action of any kind with respect to its business,
assets or properties.

 

SECTION
5.06  Indebtedness to and from
Officers, etc. None of the Vessel Owning Subsidiaries will be indebted,
directly or indirectly, to any person who is an officer, director, stockholder
or employee of any of the Seller or any spouse, child, or other relative or any
affiliate of any such person, nor shall any such officer, director,

 

9

 

stockholder, employee, relative or affiliate
be indebted to any of the Vessel Owning Subsidiaries.

 

SECTION
5.07  Personnel. The Vessel Owning
Subsidiaries have no employees other than the crew serving on board their
respective Vessels, to the extent such crew members are not directly employed
by the Manager.

 

SECTION
5.08  Contracts and Agreements. All
material contracts and agreements, written or oral, to which a Vessel Owning
Subsidiary is a party or by which any of its assets are bound, including the
Shipbuilding Contracts and the Charters (the “Contracts”), have been
disclosed to the Buyer. No other contracts will be entered into by any of the
Vessel Owning Subsidiaries prior to each respective Closing Date without the
prior consent of the Buyer (such consent not to be unreasonably withheld).

 

(a).          Each
of the Contracts is a valid and binding agreement of each respective
contracting Vessel Owning Subsidiary, and to the best knowledge of the Seller,
of all other parties thereto;

 

(b).          Each
of the Vessel Owning Subsidiaries has fulfilled all material obligations
required pursuant to its respective Contracts to have been performed by it
prior to the date hereof and has not waived any material rights thereunder; and

 

(c).          There
has not occurred any material default under any of the Contracts, or to the
best knowledge of the Seller, on the part of any other party thereto nor has
any event occurred which with the giving of notice or the lapse of time, or
both, would constitute any material default on the part of any of the Vessel
Owning Subsidiaries under any of the Contracts nor, to the best knowledge of
the Seller, has any event occurred which with the giving of notice or the lapse
of time, or both, would constitute any material default on the part of any
other party to any of the Contracts.

 

SECTION
5.09  Compliance with Law. The
conduct of business by each of the Vessel Owning Subsidiaries on the date
hereof does not violate any laws, statutes, ordinances, rules, regulations,
decrees, orders, permits or other similar items in force on the date hereof
(including, but not limited to, any of the foregoing relating to employment
discrimination, environmental protection or conservation) of any country,
province, state or other governing body, the enforcement of which would materially
and adversely affect the business, assets, condition (financial or otherwise)
or prospects of each Vessel Owning Subsidiary taken as a whole, nor has any of
the Vessel Owning Subsidiaries received any notice of any such violation.

 

SECTION 5.10  No Undisclosed Liabilities. Other than
the legal fees relating to the Delivery of the Vessel and the registration of
the Vessel with the relevant flag state, no Vessel Owning Subsidiary (or Vessel
owned by it) has any other liabilities or obligations of any nature, whether
absolute, accrued, contingent or otherwise, and whether due or to become due
(including, without limitation, any liability for taxes and

 

10

 

interest, penalties and other charges payable
with respect to any such liability or obligation).

 

SECTION
5.11   Disclosure of Information.
The Seller has disclosed to the Buyer all material information on, and about,
the Vessel Owning Subsidiaries and each of the Vessels and all such information
is true, accurate and not misleading in any material respect. Nothing has been
withheld from the material provided to the Buyer which would render such
information untrue or misleading.

 

ARTICLE
VI

 

Representations
and Warranties of

the Seller regarding the Vessels

 

The Seller represents and warrants to the Buyer that
at each respective Closing Date:

 

SECTION
6.01  Title to Vessels. Each of
the Vessel Owning Subsidiaries upon Delivery will be the registered owner of
the Vessel listed next to its name in Schedule A.I or in
Schedule A.II.

 

SECTION
6.02  No Encumbrances. Each of the
Vessel Owning Subsidiaries and Vessels will be free of all Encumbrances other
than the Encumbrances appearing in the ship registry of each Vessel and those
arising under the Credit Facility.

 

SECTION
6.03  Condition. Each Vessel will
be (i) adequate and suitable for use by the Vessel Owning Subsidiary in its
business as described in the Registration Statement, ordinary wear and tear
excepted; (ii) seaworthy in all material respects for hull and machinery
insurance warranty purposes and in good running order and repair; (iii) insured
against all risks, and in amounts, consistent with common industry practices;
(iv) in compliance with maritime laws and regulations; (v) in compliance in all
material respects with the requirements of its class and classification
society; and (vi) all class certificates of the Vessel will be clean and
valid and free of recommendations affecting class; and the Buyer acknowledges
and agrees that, subject only to the representations and warranties in this
Article VI, it is acquiring the Vessel on an “as is, where is” basis.

 

ARTICLE
VII

 

Pre-Closing
Matters

 

SECTION
7.01  Covenants of the Seller Prior to
each Closing. From the date of this Agreement to each respective Closing
Date, Seller shall cause the Vessel Owning Subsidiaries to conduct their
respective businesses in the usual, regular and ordinary course in
substantially the same manner as previously conducted. The Seller shall not,
and shall not permit the Vessel Owning Subsidiaries to, take any action that
would result

 

11

 

in any of the conditions to the purchase and
sale of Shares set forth in Article VIII not being satisfied. In addition
the Seller hereby agrees and covenants that it:

 

(a).          shall
cooperate with the Buyer and use its reasonable best efforts to obtain, at or
prior to each respective Closing Date, any consents required in respect of the
transfer of the rights and benefits under the Contracts;

 

(b).          shall
use its reasonable best efforts to take or cause to be taken promptly all
actions and to do or cause to be done all things necessary, proper and
advisable to consummate and make effective as promptly as practicable the
transactions contemplated by this Agreement and to cooperate with the Buyer in
connection with the foregoing, including using all reasonable best efforts to
obtain all necessary consents, approvals and authorizations from each
Governmental Authority and each other Person that are required to consummate
the transactions contemplated under this Agreement;

 

(c).          shall
take or cause to be taken all necessary corporate action, steps and proceedings
to approve or authorize validly and effectively the purchase and sale of the
Vessel Owning Subsidiaries and the execution and delivery of this Agreement and
the other agreements and documents contemplated hereby;

 

(d).          shall
not amend, alter or otherwise modify or permit any amendment, alteration or
modification of any material provision of or terminate the Charters or Ship
Building Contracts of any of the Vessel Owning Subsidiaries without the prior
written consent of the Buyer, not to be unreasonably withheld or delayed;

 

(e).          shall
not exercise or permit any exercise of any rights or options contained in the
Charters or Ship Building Contracts, without the prior written consent of the
Buyer, not to be unreasonably withheld or delayed;

 

(f).           shall
consult with the Buyer regarding all material decisions to be made pursuant to
the Ship Building Contracts, and shall make such decisions only with the prior
approval of the Buyer, not to be unreasonably withheld or delayed;

 

(g).          shall
observe and perform in a timely manner, all of its covenants and obligations
under its Charters and Ship Building Contracts, if any, and (i) in the
case of a default by another party thereto, it shall forthwith advise the Buyer
of such default and shall, if requested by the Buyer, enforce all of its rights
under such Charter or Ship Building Contract in respect of such default; and
(ii) subject to the rights of the lenders under the Credit Facility, in
the case of a breach or anticipated breach of any Charter or Ship Building
Contract by the Seller or Vessel Owning Subsidiary, it shall permit the Buyer
to cure on its behalf such breach or anticipated breach and shall promptly
reimburse the Buyer for any and all costs that the Buyer may expend in order to
effect such cure; and

 

12

 

(h).          shall
not cause or, to the extent reasonably within its control, permit any
Encumbrances to attach to any Vessel other than in connection with the Credit
Facility.

 

SECTION
7.02  Covenant of the Buyer Prior to
each Closing. The Buyer hereby agrees and covenants that during the period
of time after the date of the Agreement and prior to each respective Closing
Date, the Buyer shall, in respect of the Vessel Owning Subsidiaries to be
transferred on each respective Closing Date, take, or cause to be taken, all
necessary corporate action, steps and proceedings to approve or authorize
validly and effectively the purchase and sale of those Vessel Owning
Subsidiaries and the execution and delivery of this Agreement and the other
agreements and documents contemplated hereby.

 

ARTICLE
VIII

 

Conditions
Of Closing

 

SECTION
8.01  Conditions of the Seller. The
obligation of the Seller to sell is subject to the satisfaction (or waiver by
the Seller) on or prior to each respective Closing Date of the following
conditions:

 

(a).          the
representations and warranties of the Buyer made in this Agreement shall be
true and correct in all material respects as of each respective Closing Date as
though made on each respective Closing Date, except to the extent such
representations and warranties expressly relate to an earlier date (in which
case such representations and warranties shall be true and correct in all
material respects, on and as of such earlier date);

 

(b).          the
Buyer shall have performed or complied in all material respects with all
obligations and covenants required by this Agreement to be performed or
complied with by the Buyer by each respective Closing Date;

 

(c).          no
legal or regulatory action or proceeding shall be pending or threatened by any
Governmental Authority to enjoin, restrict or prohibit the purchase and sale of
the Vessel Owning Subsidiaries;

 

(d).          all
proceedings to be taken in connection with the transactions contemplated by
this Agreement and all documents incidental thereto shall be reasonably
satisfactory in form and substance to the Seller, and the Seller shall have
received copies of all such documents and other evidence as it may reasonably
request in order to establish the consummation of such transactions and the
taking of all proceedings in connection therewith.

 

SECTION
8.02  Conditions of the Buyer. The
obligation of the Buyer to purchase and pay for the Shares is subject to the
satisfaction (or waiver by the Buyer) on or prior to each respective Closing
Date of the following conditions:

 

13

 

(a).          the
representations and warranties of the Seller in this Agreement shall be true
and correct in all material respects as of each respective Closing Date as
though made on each respective Closing Date, except to the extent such
representations and warranties expressly relate to an earlier date (in which
case such representations and warranties shall be true and correct in all
material respects, on and as of such earlier date);

 

(b).          the
Seller shall have performed or complied in all material respects with all
obligations and covenants required by this Agreement to be performed or
complied with by the Seller by each respective Closing Date;

 

(c).          no
legal or regulatory action or proceeding shall be pending or threatened by any
Governmental Authority to enjoin, restrict or prohibit the purchase and sale of
the Vessel Owning Subsidiaries;

 

(d).          the
Buyer shall have obtained the funds necessary to consummate the purchase and
sale of the Shares of the Vessel Owning Subsidiaries, to refinance all
indebtedness the Buyer is required to refinance as a result of the purchase and
sale of the Vessel Owning Subsidiaries and to pay all related fees and
expenses;

 

(e).          the
Buyer shall have received written consents from all third parties necessary or
appropriate to effect the purchase and sale of the Shares of the Vessel Owning
Subsidiaries, other than such consents the absence of which, individually or in
the aggregate, could not reasonably be expected to have a material adverse
effect on the condition (financial or otherwise), assets, properties, business
or prospects of such Vessel Owning Subsidiaries taken as a whole;

 

(f).           all
proceedings to be taken in connection with the transactions contemplated by
this Agreement and all documents incidental thereto shall be reasonably
satisfactory in form and substance to the Buyer and its counsel, and the Buyer
shall have received copies of all such documents and other evidence as it or
its counsel may reasonably request in order to establish the consummation of
such transactions and the taking of all proceedings in connection therewith;
and

 

(g).          the
Buyer is satisfied that the relevant Vessel Owning Subsidiary has inspected the
Vessel prior to the Delivery Date in accordance with the relevant Ship Building
Contract.

 

ARTICLE
IX

 

Termination,
Amendment and Waiver

 

SECTION
9.01  Termination of Agreement. Notwithstanding
anything to the contrary in this Agreement, this Agreement may be terminated
and the purchase and sale of the Vessel Owning Subsidiaries and the other
transactions contemplated by this Agreement abandoned at any time prior to each
respective Closing:

 

14

 

(a).          by
mutual written consent of the Seller and the Buyer;

 

(b).          by
the Seller if any of the conditions set forth in Section 8.01 shall have become
incapable of fulfillment, and shall not have been waived by the Seller; or

 

(c).          by
the Buyer if any of the conditions set forth in Section 8.02 shall have become
incapable of fulfillment, and shall not have been waived by the Buyer.

 

provided, however, that the
party seeking termination pursuant to clause (b) or (c) is not then in material
breach of any of its representations, warranties, covenants or agreements
contained in this Agreement.

 

SECTION
9.02  Termination in Respect of a
Vessel Owning Subsidiary. Notwithstanding anything to the contrary, this
Agreement shall be deemed to be terminated in respect of and only in respect of
a particular Vessel Owning Subsidiary, without any further action by either the
Buyer or the Seller, if:

 

(a) the Ship Building Contract with respect
to such Vessel Owning Subsidiary is terminated or cancelled for any reason
whatsoever; or

 

(b) the Buyer elects not to purchase such
Vessel Owning Subsidiary pursuant to Section 2.06(a) or Section 2.07 hereof.

 

SECTION
9.03  Amendments and Waivers. This
Agreement may not be amended except by an instrument in writing signed on
behalf of each parties hereto. By an instrument in writing the Buyer, on the
one hand, or the Seller, on the other hand, may waive compliance by the other
with any term or provision of this Agreement that such other party was or is
obligated to comply with or perform.

 

ARTICLE
X

 

Indemnification

 

SECTION
10.01  Indemnity by the Seller. The
Seller shall be liable for, and shall indemnify the Buyer and each of its
directors, employees, agents and representatives (the “Buyer Indemnitees”)
against and hold them harmless from, any Losses, suffered or incurred by such
Buyer Indemnitee:

 

(a).          by
reason of, arising out of or otherwise in respect of any inaccuracy in, breach
of any representation or warranty, or a failure to perform or observe fully any
covenant, agreement or obligation of, the Seller in or under this Agreement or
in or under any document, instrument or agreement delivered pursuant to this
Agreement by the Seller; or

 

(b).          any
fees, expenses or other payments incurred or owed by the Seller to any brokers,
financial advisors or comparable other persons retained or

 

15

 

employed by it in connection with the
transactions contemplated by this Agreement.

 

SECTION
10.02  Indemnity by the Buyer. The
Buyer shall indemnify the Seller and its affiliates and each of their
respective officers, directors, employees, agents and representatives (the “Seller
Indemnitees”) against and hold them harmless from, any Losses, suffered or
incurred by such Seller Indemnitee by reason of, arising out of or otherwise in
respect of any inaccuracy in, breach of any representation or warranty, or a
failure to perform or observe fully any covenant, agreement or obligation of,
the Buyer in or under this Agreement or in or under any document, instrument or
agreement delivered pursuant to this Agreement by the Buyer.

 

ARTICLE
XI

 

Miscellaneous

 

SECTION
11.01  Governing Law. This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York applicable to contracts made and to be performed wholly
within such jurisdiction without giving effect to conflict of law principles
thereof other than Section 5-1401 of the New York General
Obligations Law, except to the extent that it is mandatory that the law
of some other jurisdiction, wherein the Vessels are located, shall apply.

 

SECTION
11.02  Counterparts. This
Agreement may be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which shall constitute but one
and the same instrument.

 

SECTION
11.03  Complete Agreement. This
Agreement and Schedules hereto contain the entire agreement between the parties
hereto with respect to the transactions contemplated herein and, except as
provided herein, supersede all previous oral and written and all
contemporaneous oral negotiations, commitments, writings and understandings.

 

SECTION
11.04  Interpretation. The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

 

SECTION
11.05  Severability. If any of the
provisions of this Agreement are held by any court of competent jurisdiction to
contravene, or to be invalid under, the laws of any governmental body having
jurisdiction over the subject matter hereof, such contravention or invalidity
shall not invalidate the entire Agreement. Instead, this Agreement shall be
construed as if it did not contain the particular provision or provisions held
to be invalid, and an equitable adjustment shall be made and necessary
provision added so as to give effect, as nearly as possible, to the intention
of the Parties as expressed in this Agreement at the time of execution of this
Agreement.

 

SECTION
11.06  Third Party Rights. A
person who is not a party to this Agreement has no right to enforce or to enjoy
the benefit of any term of this Agreement.

 

16

 

SECTION
11.07  Notices. Any notice, claim
or demand in connection with this Agreement shall be delivered to the parties
at the following addresses (or at such other address or facsimile number for a
party as may be designated by notice by such party to the other party):

 

(a).          if
to Capital Maritime & Trading Corp., as follows:

 

c/o Capital Ship Management Corp., 3 Iassonos Street,
Piraeus, Greece

Attention:     Ioannis E.
Lazaridis

Facsimile:     +30 210 428
4285

 

(b).          if
to Capital Product Partners L.P., as follows:

 

c/o Capital Ship Management Corp., 3 Iassonos Street,
Piraeus, Greece

Attention:     Ioannis E.
Lazaridis

Facsimile:     +30 210 428
4285

 

and any such notice shall be deemed to have been
received (i) on the next working day in the place to which it is sent, if
sent by facsimile or (ii) forty eight (48) hours from the time of
dispatch, if sent by courier.

 

17

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be signed as of the date first above written.

 

 

	
   

  	
   

  	
  CAPITAL MARITIME & TRADING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CAPITAL PRODUCT PARTNERS L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

18

 

SCHEDULE A.I

 

2007 VESSEL OWNING SUBSIDIARIES, VESSELS AND CHARTERS

 

 

	
  Vessel Owning Subsidiary

  	
   

  	
  Vessel

  	
   

  	
  Delivery Date

  	
   

  	
  Charter Type

  	
   

  	
  Daily

  Charter Rate

  	
   

  	
  Charterer

  
	
  Epicurus Shipping
  Company

  	
   

  	
  Atrotos

  	
   

  	
  05/07

  	
   

  	
  3-year Time Charter

  	
   

  	
  $

  	
  20,000

  	
   

  	
  Morgan Stanley Capital
  Group Inc.

  
	
  Laredo Maritime Inc.

  	
   

  	
  Akeraios

  	
   

  	
  08/07

  	
   

  	
  3-year Time Charter

  	
   

  	
  $

  	
  20,000

  	
   

  	
  Morgan Stanley Capital
  Group Inc.

  
	
  Splendor Shipholding
  S.A.,

  	
   

  	
  Anemos I

  	
   

  	
  10/07

  	
   

  	
  3-year Time Charter

  	
   

  	
  $

  	
  20,000

  	
   

  	
  Morgan Stanley Capital
  Group Inc.

  
	
  Lorenzo Shipmanagement
  Inc.

  	
   

  	
  Apostolos

  	
   

  	
  10/07

  	
   

  	
  3-year Time Charter

  	
   

  	
  $

  	
  20,000

  	
   

  	
  Morgan Stanley Capital
  Group Inc.

  

 

 

SCHEDULE A.II

 

2008 VESSEL OWNING SUBSIDIARIES, VESSELS AND CHARTERS

 

	
  Vessel Owning Subsidiary

  	
   

  	
  Vessel

  	
   

  	
  Delivery Date

  	
   

  	
  Charter Type

  	
   

  	
  Daily

  Charter Rate

  	
   

  	
  Charterer

  
	
  Sorrel Shipmanagement
  Inc.

  	
   

  	
  Alexandros II

  	
   

  	
  01/08

  	
   

  	
  10-year Bareboat
  Charter

  	
   

  	
  $

  	
  13,000

  	
   

  	
  Overseas Shipholding
  Group Inc.

  
	
  Wind Dancer Shipping
  Inc.

  	
   

  	
  Aristotelis II

  	
   

  	
  06/08

  	
   

  	
  10-year Bareboat
  Charter

  	
   

  	
  $

  	
  13,000

  	
   

  	
  Overseas Shipholding
  Group Inc.

  
	
  Belerion Maritime Co.

  	
   

  	
  Aris II

  	
   

  	
  08/08

  	
   

  	
  10-year Bareboat
  Charter

  	
   

  	
  $

  	
  13,000

  	
   

  	
  Overseas Shipholding
  Group Inc.

  

 

 

SCHEDULE B

 

PURCHASE PRICE

 

	
  Vessel Owning Subsidiary

  	
   

  	
  Purchase Price

  (US Dollars)

  	
   

  
	
  Epicurus
  Shipping Company

  	
   

  	
  $

  	
  56,000,000

  	
   

  
	
  Laredo Maritime
  Inc.

  	
   

  	
  $

  	
  56,000,000

  	
   

  
	
  Splendor
  Shipholding S.A.,

  	
   

  	
  $

  	
  56,000,000

  	
   

  
	
  Lorenzo
  Shipmanagement Inc.

  	
   

  	
  $

  	
  56,000,000

  	
   

  
	
  Sorrel
  Shipmanagement Inc.

  	
   

  	
  $

  	
  48,000,000

  	
   

  
	
  Wind Dancer
  Shipping Inc.

  	
   

  	
  $

  	
  48,000,000

  	
   

  
	
  Belerion
  Maritime Co.

  	
   

  	
  $

  	
  48,000,000

  	
   

  

 

 

SCHEDULE C

 

CAPITALIZATION

 

	
  Vessel Owning Subsidiary

  	
   

  	
  Number of Shares

  	
   

  
	
  Epicurus
  Shipping Company

  	
   

  	
  100

  	
   

  
	
  Laredo Maritime
  Inc.

  	
   

  	
  500

  	
   

  
	
  Splendor
  Shipholding S.A.,

  	
   

  	
  500

  	
   

  
	
  Lorenzo
  Shipmanagement Inc.

  	
   

  	
  500

  	
   

  
	
  Sorrel
  Shipmanagement Inc.

  	
   

  	
  500

  	
   

  
	
  Wind Dancer
  Shipping Inc.

  	
   

  	
  500

  	
   

  
	
  Belerion Maritime
  Co.

  	
   

  	
  500

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]