Exhibit 4.1

     

    PERFORMANCE SHIPPING INC.

     

    And

     

    COMPUTERSHARE INC. and

     

    COMPUTERSHARE TRUST COMPANY, N.A.,

     

    Jointly as

     

    Warrant Agent

     

    Warrant Agency Agreement

     

    Dated as of June 1, 2022

     

    

    
      
        


    

    
    WARRANT AGENCY AGREEMENT

     

    WARRANT AGENCY AGREEMENT, dated as of June 1, 2022 (“Agreement”), among Performance Shipping Inc., a corporation organized under the laws of the Republic of the Marshall Islands (the “Company”),


      and Computershare Inc., a Delaware corporation (“Computershare”), and its affiliate, Computershare Trust Company, N.A., a federally chartered trust company (collectively with Computershare, the “Warrant Agent”).

     

    WITNESSETH

     

    WHEREAS, pursuant to a registered offering by the Company (the “Offering”) of up to  7,620,000 common shares, par value $0.01 per share (the “Common Shares”) of the Company (or up to
      7,620,000 Pre-Funded Warrants to purchase Common Shares for any purchaser who, as a result of purchasing securities in this Offering, would, together with its affiliates and other related parties, beneficially own more than 4.99% or 9.99% of our
      outstanding Common Shares immediately following the consummation of the Offering) (the “Pre-Funded Warrants” and, together with the Common Shares and the Common Shares issuable upon exercise of the Pre-Funded Warrants, the “Shares”) and
      up to 7,620,000 Class A Warrants (the “Warrants”) to purchase 7,620,000 Common Shares (the “Warrant Shares”) at a price of $1.05 per share; and

     

    WHEREAS, the Company granted an over-allotment option to purchase up to fifteen percent (15%) of the aggregate number of Shares and/or Warrants sold, including warrants to purchase up to an
      additional 1,143,000 Common Shares (the “Over-Allotment Option”) to the Underwriters; and

     

    WHEREAS, upon the terms and subject to the conditions hereinafter set forth and pursuant to an effective registration statement on Form F-l, as amended (File No. 333-255100) (the “Registration


        Statement”), and the terms and conditions of the Warrant Certificate, the Company wishes to issue the Warrants in book entry form entitling the respective holders of the Warrants (the “Holders,” which term shall include a Holder’s
      transferees, successors and assigns and “Holder” shall include, if the Warrants are held in “street name,” a Participant (as defined below) or a designee appointed by such Participant) to purchase an aggregate of up to 8,763,000 Common Shares (which
      includes Warrants to purchase up to 1,143,000 Common Shares pursuant to the Over-Allotment Option); and

     

    WHEREAS, the Common Shares (or Pre-Funded Warrants) and Warrants to be issued in connection with the Offering shall be issued separately, but will be purchased together in the Offering; and

     

    WHEREAS, the Company wishes the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, registration, transfer, exchange, exercise
      and replacement of the Warrants.

     

    NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:

     

    

    
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    Section 1.          Certain Definitions. For purposes of this Agreement, the following capitalized terms have the meanings hereby indicated:

     

    (a) “Affiliate” has the meaning ascribed to it in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

     

    (b) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain
      closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any other similar orders or restrictions or
      the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by
      customers on such day.

     

    (c)  “Close of Business” on any given date means 5:00 p.m., New York City time, on such date; provided, however, that if such date is not a Business Day
      it means 5:00 p.m., New York City time, on the next succeeding Business Day.

     

    (d) “Person” means an individual, corporation, association, partnership, limited liability company, joint venture, trust, unincorporated organization, government or
      political subdivision thereof or governmental agency or other entity.

     

    (e)  “Warrant Certificate” means a certificate in substantially the form attached as Exhibit 1 hereto, representing Warrants to purchase the number of Warrant
      Shares as is indicated therein, provided that any reference to the delivery of a Warrant Certificate in this Agreement shall include delivery of a Definitive Certificate or a Global Warrant (each as defined below).

     

    All other capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Warrant Certificate.

     

    Section 2.          Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance with the express
      terms and conditions hereof, and the Warrant Agent hereby accepts such appointment. The Company may from time to time appoint such Co-Warrant Agents as it may, in its sole discretion, deem necessary or desirable upon ten (10) calendar days’ prior
      written notice to the Warrant Agent.  The Warrant Agent shall have no duty to supervise, and shall in no event be liable for the acts or omissions of, any such co-Warrant Agent.   In the event the Company appoints one or more co-Warrant Agents, the
      respective duties of the Warrant Agent and any co-Warrant Agent shall be as the Company shall reasonably determine, provided that such duties and determination are consistent with the terms and provisions of this Agreement.

     

    Section 3.          Global Warrants.

     

    (a) The Warrants shall be registered securities and shall be evidenced by a global warrant (the “Global Warrants”), in the form of the Warrant Certificate, which shall
      be deposited with the Warrant Agent and registered in the name of Cede & Co., a nominee of The Depository Trust Company (the “DTC”), or as otherwise directed by DTC. Ownership of beneficial interests in the Global Warrants shall be shown
      on, and the transfer of such ownership shall be effected through, records maintained by (i) DTC or its nominee for each Global Warrant or (ii) institutions that have accounts with DTC (such institution, with respect to a Warrant in its account, a “Participant”).

     

    

    
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    (b)  If DTC subsequently ceases to make its book-entry settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding other arrangements for
      book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary to have the Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to DTC to deliver to the Warrant Agent
      for cancellation each Global Warrant, and the Company shall instruct the Warrant Agent to deliver to each Holder a certificate for such Holder’s Warrants in the form of the Warrant Certificate. In such event, the transfer, exchange or exercise of the
      Warrants shall be conducted in accordance with the customary procedures of the Warrant Agent.

     

    (c) A Holder has the right to elect at any time or from time to time a Warrant Exchange (as defined below) pursuant to a Warrant Certificate Request Notice (as defined below).
      Upon written notice by a Holder to the Warrant Agent for the exchange of some or all of such Holder’s Global Warrants for a separate certificate substantially in the form attached hereto as Exhibit 1 (such separate certificate, a “Definitive


        Certificate”) evidencing the same number of Warrants, which request shall be in the form attached hereto as Exhibit 2 properly completed and duly executed (a “Warrant Certificate Request Notice” and the date of delivery of such
      Warrant Certificate Request Notice by the Holder, the “Warrant Certificate Request Notice Date” and the deemed surrender upon delivery by the Holder of a number of Global Warrants for the same number of Warrants evidenced by a Warrant
      Certificate, a “Warrant Exchange”), the Warrant Agent shall promptly effect the Warrant Exchange and the Company shall promptly issue and deliver (or instruct the Warrant Agent to deliver at the expense of the Company), to the Holder a
      Definitive Certificate for such number of Warrants in the name set forth in the Warrant Certificate Request Notice. Such Definitive Certificate shall be dated the original issue date of the Warrants, shall be executed manually or by facsimile by an
      authorized signatory of the Company and shall be reasonably acceptable in all respects to such Holder. In connection with a Warrant Exchange, the Company agrees to deliver, or to direct the Warrant Agent to deliver, the Definitive Certificate to the
      Holder within ten (10) Business Days of the Warrant Certificate Request Notice pursuant to the delivery instructions in the Warrant Certificate Request Notice (“Warrant Certificate Delivery Date”). If the Company fails for any reason to
      deliver to the Holder the Definitive Certificate subject to a Warrant Certificate Request Notice by the Warrant Certificate Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of
      Warrant Shares evidenced by such Definitive Certificate (based on the VWAP (as defined in the Warrant Certificate) of the Common Shares on the Warrant Certificate Request Notice Date), $10 per Business Day for each Business Day after such Warrant
      Certificate Delivery Date until such Definitive Certificate is delivered or, prior to delivery of such Definitive Certificate, the Holder rescinds such Warrant Exchange. In no event shall the Warrant Agent be liable for the Company’s failure to
      deliver to the Holders the Definitive Certificate as set forth in this Section 3(c). The Company covenants and agrees that, upon the date of delivery of the Warrant Certificate Request Notice, the Holder shall be deemed to be the holder of the
      Definitive Certificate and, notwithstanding anything to the contrary set forth herein, the Definitive Certificate shall be deemed for all purposes to contain all of the terms and conditions of the Warrants evidenced by such Warrant Certificate and
      the terms of this Agreement, other than Sections 3(c), 3(d) and 9 herein, shall not apply to the Warrants evidenced by the Definitive Certificate. In the event a beneficial owner requests a Warrant Exchange, upon issuance of the Definitive
      Certificate, the Company shall act as warrant agent and the terms of the paper Definitive Certificate so issued shall exclusively govern in respect thereof.  For purposes of clarity, the Company and the Warrant Agent acknowledge and agree that, with
      respect to: (i) the Definitive Certificate, the terms of the Warrant Certificate for the Definitive Certificate shall set forth all the terms of the Definitive Warrants; and (ii) the Global Warrants, the terms of the Warrant Certificate for the
      Global Warrant and the terms of this Agreement shall set forth all the terms of the Global Warrants.

     

    

    
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    (d) A Holder of a Definitive Certificate (pursuant to a Warrant Exchange or otherwise) has the right to elect at any time or from time to time a Global Warrants Exchange (as
      defined below) pursuant to a Global Warrants Request Notice (as defined below). Upon written notice by a Holder to the Company for the exchange of some or all of such Holder’s Warrants evidenced by a Definitive Certificate for a beneficial interest
      in Global Warrants held in book-entry form through DTC evidencing the same number of Warrants, which request shall be in the form attached hereto as Exhibit 3. properly completed and duly executed (a “Global Warrants Request Notice”
      and the date of delivery of such Global Warrants Request Notice by the Holder, the “Global Warrants Request Notice Date” and the surrender upon delivery by the Holder of the Warrants evidenced by Definitive Certificates for the same number of
      Warrants evidenced by a beneficial interest in Global Warrants held in book-entry form through DTC, a “Global Warrants Exchange”), the Company shall promptly effect the Global Warrants Exchange and shall promptly direct the Warrant Agent to
      issue and deliver to the Holder Global Warrants for such number of Warrants in the Global Warrants Request Notice, which beneficial interest in such Global Warrants shall be delivered by DTC’s Deposit or Withdrawal at Custodian system to the Holder
      pursuant to the instructions in the Global Warrants Request Notice. In connection with a Global Warrants Exchange, the Company shall direct the Warrant Agent to deliver the beneficial interest in such Global Warrants to the Holder within ten (10)
      Business Days of the Global Warrants Request Notice pursuant to the delivery instructions in the Global Warrant Request Notice (“Global Warrants Delivery Date”). The Company covenants and agrees that, upon the date of delivery of the Global
      Warrants Request Notice, the Holder shall be deemed to be the beneficial holder of such Global Warrants.

     

    (e) The Company shall provide to the Warrant Agent an opinion of counsel on or prior to the issuance of Warrants which opinion shall state that all Warrants or the Common
      Shares issuable upon the exercise of the Warrants, as applicable, are (i) registered under the Securities Act of 1933, as amended, and (ii) validly issued, fully paid and non-assessable.

     

    Section 4.          Form of Warrant Certificates. The Warrant Certificate, together with the form of election to purchase Common Shares (“Notice of Exercise”) and
      the form of assignment to be printed on the reverse thereof, whether a Definitive Warrant or a Global Warrant, shall be substantially in the form of Exhibit 1 hereto.

     

    

    
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    Section 5.          Countersignature and Registration. The Warrant Certificates shall be executed on behalf of the Company by its Chief Executive Officer
      or Chief Financial Officer, by manual or facsimile signature. Each Warrant Certificate (other than any Definitive Certificate issued pursuant to a Warrant Exchange, which shall not require a countersignature of the Warrant Agent) shall be
      countersigned by the Warrant Agent either manually, by facsimile or by some other form of electronic signature. In case any officer of the Company who shall have signed any of the Warrant Certificates shall cease to be such officer of the Company
      before countersignature by the Warrant Agent and issuance and delivery by the Company, such Warrant Certificates, nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the same force and effect as though the person who
      signed such Warrant Certificate had not ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Warrant Certificate, shall be a proper
      officer of the Company to sign such Warrant Certificate, although at the date of the execution of this Agreement any such person was not such an officer.

     

    The Warrant Agent will keep or cause to be kept, at one of its offices, or at the office of one of its agents, books for registration and transfer of the Warrant Certificates issued hereunder, other
      than the Warrants evidenced by any Definitive Certificate. Such books shall show the names and addresses of the respective Holders of the Warrant Certificates, the number of warrants evidenced on the face of each of such Warrant Certificate and the
      date of each of such Warrant Certificate. For purposes of clarity, the Warrant Agent shall not be required to keep a book for registration and transfer of Definitive Certificates.

     

    Section 6.          Transfer, Split Up, Combination and Exchange of Warrant Certificates: Mutilated, Destroyed, Lost or Stolen Warrant Certificates.

     

    (a) With respect to the Global Warrant, subject to the provisions of the Warrant Certificate and the last sentence of this first paragraph of Section 6 and subject to
      applicable law, rules or regulations, or any “stop transfer” instructions the Company may give to the Warrant Agent, at any time after the closing date of the Offering, and at or prior to the Close of Business on the Termination Date (as such term is
      defined in the Warrant Certificate), any Warrant Certificate or Warrant Certificates or Global Warrant or Global Warrants may be transferred, split up, combined or exchanged for another Warrant Certificate or Warrant Certificates or Global Warrant or
      Global Warrants, entitling the Holder to purchase a like number of Common Shares as the Warrant Certificate or Warrant Certificates or Global Warrant or Global Warrants surrendered then entitled such Holder to purchase. Any Holder desiring to
      transfer, split up, combine or exchange any Warrant Certificate or Global Warrant shall make such request in writing delivered to the Warrant Agent, and shall surrender the Warrant Certificate or Warrant Certificates or Global Warrant or Global
      Warrants, together with the required form of assignment and certificate duly executed and properly completed and such other documentation as the Warrant Agent may reasonably request, to be transferred, split up, combined or exchanged at the office of
      the Warrant Agent designated for such purposes, provided that no such surrender is applicable to the Holder of a Global Warrant. Any requested transfer of Global Warrants shall be accompanied by reasonable evidence of authority of the party making
      such request that may be required by the Warrant Agent, including but not limited to, a signature guarantee from an eligible guarantor institution participating in a signature guarantee program approved by the Securities Transfer Association.
      Thereupon the Warrant Agent shall, subject to the last sentence of this first paragraph of Section 6, countersign and deliver to the Person entitled thereto a Warrant Certificate or Warrant Certificates, as the case may be, as so requested. The
      Company may require payment from the Holder of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Warrant Certificates.  The Warrant Agent shall not have
      any duty or obligation to take any action under any section of this Agreement or any Warrant Certificate or Global Warrant that requires the payment of taxes and/or charges unless and until the Warrant Agent is reasonably satisfied that all such
      payments have been made.

     

    

    
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    (b) Upon receipt by the Warrant Agent of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of a Warrant Certificate, which evidence shall
      include an affidavit of loss, or in the case of mutilated certificates, the certificate or portion thereof remaining, and, in case of loss, theft or destruction, of indemnity or security acceptable to the Company and the Warrant Agent, and
      reimbursement to the Company and the Warrant Agent of all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant Certificate if mutilated, the Company will make and deliver a new Warrant
      Certificate of like tenor to the Warrant Agent for delivery to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or mutilated.

     

    Section 7.          Exercise of Warrants; Exercise Price; Termination Date.

     

    (a) The Warrants shall be exercisable commencing on the Issue Date. The Warrants shall cease to be exercisable and shall terminate and become void at 5:00 p.m. (New York City
      time) on the Termination Date (as defined in the Warrant Certificate). Subject to the foregoing and to Section 7(b) below, the Holder of a Warrant may exercise the Warrant in whole or in part upon providing the items required by Section 7(c) below to
      the Warrant Agent at the office of the Warrant Agent designated for such purposes or to the office of one of its agents as may be designated by the Warrant Agent from time to time. In the case of the Holder of a Global Warrant, the Holder shall
      deliver the executed Notice of Exercise and the payment of the Exercise Price pursuant to Section 2(a) of the Warrant. Notwithstanding any other provision in this Agreement, a holder whose interest in a Global Warrant is a beneficial interest in a
      Global Warrant held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall effect exercises by delivering to DTC (or such other clearing corporation, as applicable) the appropriate instruction
      form for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation, as applicable). No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type
      of guarantee or notarization) of any Notice of Exercise be required in connection with the exercise of an interest in a Global Warrant held in book-entry form through DTC. The Company hereby acknowledges and agrees that, with respect to a holder
      whose interest in a Global Warrant is a beneficial interest in a Global Warrant held in book-entry form through DTC (or another established clearing corporation performing similar functions), upon delivery of irrevocable instructions to such holder’s
      Participant to exercise such warrants, that solely for purposes of Regulation SHO that such holder shall be deemed to have exercised such warrants.

     

    (b) Upon receipt of a Notice of Exercise for a cashless exercise pursuant to Section 2(c) of the Warrant Certificate (a “Cashless Exercise”) the Company will promptly
      calculate and transmit to the Warrant Agent the number of Warrant Shares issuable in connection with such Cashless Exercise and deliver a copy of the Notice of Exercise to the Warrant Agent, which shall deliver such number of Warrant Shares in
      connection with such Cashless Exercise. The Warrant Agent shall have no duty or obligation to investigate or confirm whether the Company’s determination of the number of Warrant Shares to be issued on such exercise is accurate or correct.

     

    

    
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    (c) Upon the Warrant Agent’s receipt of the appropriate instruction form for exercise complying with the procedures to effect exercise of Global Warrants that are required by
      DTC, accompanied by payment of the aggregate Exercise Price pursuant to Section 2(a) of the Warrant Certificate for the Warrant Shares to be purchased (other than in the case of a cashless exercise) and payment of an amount equal to any applicable
      tax, governmental charge or expense reimbursement referred to in Section 6 by wire transfer, payable to the order of the Warrant Agent, the Company shall issue, and cause the Warrant Agent (or the transfer agent for the Common Stock) to, and the
      Warrant Agent (or the transfer agent for the Common Stock) shall, deliver such Warrant Shares to the Holder of such Warrant Certificate or Global Warrant, registered in such name or names as may be designated by such Holder, no later than the Warrant
      Share Delivery Date (as such term is defined in the Warrant Certificate). If the Company is then a participant in the DWAC system of the DTC and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to
      or resale of the Warrant Shares by Holder or (B) the Warrant is being exercised via Cashless Exercise, then the Warrant Shares shall be transmitted by the Warrant Agent to the Holder or its designee by crediting the account of the Holder or its
      designee’s broker with the DTC through its DWAC system. For the avoidance of doubt, if the Company becomes obligated to pay any amounts to any Holders pursuant to Section 2(d)(i) or 2(d)(iv) of the Warrant Certificate, such obligation shall be solely
      that of the Company and not that of the Warrant Agent. Notwithstanding anything else to the contrary in this Agreement, except in the case of a Cashless Exercise, if any Holder fails to duly deliver payment to the Warrant Agent of an amount equal to
      the aggregate Exercise Price of the Warrant Shares to be purchased upon exercise of such Holder’s Warrant by the Warrant Share Delivery Date, none of the Company, nor the Warrant Agent nor the transfer agent for Common Shares will be obligated to
      deliver such Warrant Shares (via DWAC or otherwise) until following receipt of such payment, and the applicable Warrant Share Delivery Date shall be deemed extended by one day for each day (or part thereof) until such payment is delivered to the
      Warrant Agent.

     

    (d) The Warrant Agent shall deposit all funds received by it in payment of the Exercise Price for all Warrants as described in this Section 7(d) and shall
      advise the Company via email upon receipt of each notice of exercise. All funds received by Computershare under this Agreement that are to be distributed or applied by the Warrant Agent in the performance of services to be provided hereunder (the
      “Funds”) shall be held by Computershare as agent for the Company and deposited in one or more bank accounts to be maintained by Computershare in its name as agent for the Company. Until paid pursuant to the terms of this Agreement, Computershare will
      hold the Funds through such accounts in: deposit accounts of commercial banks with Tier 1 capital exceeding $1 billion or with an average rating above investment grade by S&P (LT Local Issuer Credit Rating), Moody’s (Long Term Rating) and Fitch
      Ratings, Inc. (LT Issuer Default Rating) (each as reported by Bloomberg Finance L.P.). The Warrant Agent shall have no responsibility or liability for any diminution of the Funds that may result from any deposit made by Computershare Inc. in
      accordance with this paragraph, including any losses resulting from a default by any bank, financial institution or other third party. Computershare may from time to time receive interest, dividends or other earnings in connection with such deposits.
      The Warrant Agent shall not be obligated to pay such interest, dividends or earnings to the Company, any holder or any other party. The Warrant Agent shall forward funds received for warrant exercises in a given month by the 5th business day of the
      following month, or as otherwise from time to time reasonably requested by the Company, by wire transfer to an account designated by the Company.

    
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    Section 8.          Cancellation and Destruction of Warrant Certificates. All Warrant Certificates surrendered for the purpose of exercise, transfer, split up,
      combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Warrant Agent for cancellation or in canceled form, or, if surrendered to the Warrant Agent, shall be canceled by it, and no Warrant Certificate
      shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Warrant Agent for cancellation and retirement, and the Warrant Agent shall so cancel and retire, any other
      Warrant Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Warrant Agent shall deliver all canceled Warrant Certificates to the Company, or shall, at the written request of the Company, destroy such
      canceled Warrant Certificates, and in such case shall deliver a certificate of destruction thereof to the Company, subject to any applicable law, rule or regulation requiring the Warrant Agent to retain such canceled certificates.

     

    Section 9.          Certain Representations: Reservation and Availability of Common Shares or Cash.

     

    (a) This Agreement has been duly authorized, executed and delivered by the Company and, assuming due authorization, execution and delivery hereof by the Warrant Agent,
      constitutes a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, and the Warrants have been duly authorized, executed and issued by the Company and, assuming due authentication thereof by
      the Warrant Agent pursuant hereto and payment therefor by the Holders as provided in the Registration Statement, constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms and
      entitled to the benefits hereof; in each case except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally or by general equitable principles
      (regardless of whether such enforceability is considered in a proceeding in equity or at law).

     

    (b) As of the date hereof, the authorized capital stock of the Company consists of (i) 500,000,000 Common Shares, of which approximately 2,775,030 Common Shares are issued and
      outstanding as of June 1, 2022, and 8,763,000 Common Shares are reserved for issuance upon exercise of the Warrants, and (ii) 25,000,000 preferred shares, par value $0.01 per share, of which 793,657 Series B preferred shares are issued and
      outstanding. Except as disclosed in the Registration Statement, there are no other outstanding obligations, warrants, options or other rights to subscribe for or purchase from the Company any class of capital stock of the Company.

     

    (c) The Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued Common Shares or its authorized and issued Common
      Shares held in its treasury, free from preemptive rights, the number of Common Shares that will be sufficient to permit the exercise in full of all outstanding Warrants.

     

    

    
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    (d) The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect of
      the original issuance or delivery of the Warrant Certificates or Common Shares upon exercise of the Warrants. The Company shall not, however, be required to pay any tax or governmental charge which may be payable in respect of any transfer involved
      in the transfer or delivery of Warrant Certificates or the issuance or delivery of Common Shares in a name other than that of the Holder of the Warrant Certificate evidencing Warrants surrendered for exercise or to issue or deliver any Common Shares
      upon the exercise of any Warrants and the Warrant Agent shall not be required to take any related action until any such tax or governmental charge shall have been paid (any such tax or governmental charge being payable by the Holder of such Warrant
      Certificate at the time of surrender) or until it has been established to the Company’s and the Warrant Agent’s reasonable satisfaction that no such tax or governmental charge is due.   The Warrant Agent shall not have any duty or obligation to take
      any action under any section of this Agreement or any Warrant that requires the payment of taxes and/or charges unless and until the Warrant Agent is reasonably satisfied that all such payments have been made.

     

    Section 10.          Common Shares Record Date. Each Person in whose name any certificate for Common Shares is issued (or to whose broker’s account is credited Common
      Shares through the DWAC system) upon the exercise of Warrants shall for all purposes be deemed to have become the holder of record for the Common Shares represented thereby on, and such certificate shall be dated, the date on which submission of the
      Notice of Exercise was made, provided that the Warrant Certificate evidencing such Warrant is duly surrendered (but only if required herein or pursuant to the Warrant Certificate) and payment of the Exercise Price (and any applicable transfer taxes)
      is received on or prior to the Warrant Share Delivery Date; provided, however, that if the date of submission of the Notice of Exercise is a date upon which the Common Shares transfer books of the Company are closed, such Person shall be
      deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding day on which the Common Shares transfer books of the Company are open.

     

    Section 11.          Adjustment of Exercise Price. Number of Common Shares or Number of the Company Warrants. The Exercise Price, the number of shares covered by
      each Warrant and the number of Warrants outstanding are subject to adjustment from time to time as provided in Section 3 of the Warrant Certificate. In the event that at any time, as a result of an adjustment made pursuant to Section 3 of the Warrant
      Certificate, the Holder of any Warrant thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Common Shares, thereafter the number of such other shares so receivable upon exercise of any Warrant
      shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares contained in Section 3 of the Warrant Certificate and the provisions of Sections 7, 11 and 12
      of this Agreement with respect to the Common Shares shall apply on like terms to any such other shares. All Warrants originally issued by the Company subsequent to any adjustment made to the Exercise Price pursuant to the Warrant Certificate shall
      evidence the right to purchase, at the adjusted Exercise Price, the number of Common Shares purchasable from time to time hereunder upon exercise of the Warrants, all subject to further adjustment as provided herein. The Warrant Agent shall have no
      obligation under any Section of this Agreement to determine whether an event leading to an adjustment described in Section 11 or Section 12 of this Agreement has occurred or to calculate any of the adjustments set forth herein.

     

    

    
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    Section 12.          Certification of Adjusted Exercise Price or Number of Common Shares. Whenever the Exercise Price or the number of Common Shares issuable upon
      the exercise of each Warrant is adjusted as provided in Section 3 of the Warrant Certificate, the Company shall (a) promptly prepare a certificate setting forth the Exercise Price of each Warrant as so adjusted, and a brief statement of the facts
      accounting for such adjustment, (b) promptly file with the Warrant Agent and with each transfer agent for the Common Shares a copy of such certificate and (c) instruct the Warrant Agent to send a brief summary thereof to each Holder of a Warrant
      Certificate. The Warrant Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall have no duty or liability with respect to, and shall not be deemed to have knowledge of any such
      adjustment or any such event unless and until it shall have received such certificate.

     

    Section 13.          Fractional Common Shares.

     

    (a) The Company shall not issue fractions of Warrants or distribute Warrant Certificates which evidence fractional Warrants. Whenever any fractional Warrant would otherwise be
      required to be issued or distributed, the actual issuance or distribution shall reflect a rounding of such fraction to the nearest whole Warrant (rounded down).

     

    (b) The Company shall not issue fractions of Common Share upon exercise of Warrants or distribute stock certificates which evidence fractional Common Shares. Whenever any
      fraction of a Common Share would otherwise be required to be issued or distributed, the actual issuance or distribution in respect thereof shall be made in accordance with Section 2(d)(v) of the Warrant Certificate.

     

    Section 14.          Conditions of the Warrant Agent’s Obligations. The Warrant Agent accepts its obligations herein set forth upon the express terms and
      conditions hereof, including the following to all of which the Company agrees and to all of which the rights hereunder of the Holders from time to time of the Warrants shall be subject:

     

    (a) Compensation and Indemnification. The Company agrees promptly to pay the Warrant Agent the compensation detailed on the fee
      schedule mutually agreed upon by the parties hereto and provided separately on the date hereof for all services rendered by the Warrant Agent and to reimburse the Warrant Agent for reasonable out-of-pocket expenses (including reasonable counsel fees
      and expenses) and other disbursements incurred in the preparation, delivery, negotiation, amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the
      Warrant Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expenses (including reasonable fees and expenses of its legal counsel) which may be paid, incurred or
      suffered by it or to which it may become subject, arising from or out of, directly or indirectly, any claims or liability resulting from its actions or omissions as Warrant Agent pursuant hereto; provided, that such covenant and agreement does not
      extend to, and the Warrant Agent shall not be indemnified with respect to, such costs, expenses, losses and damages incurred or suffered by the Warrant Agent as a result of, or arising out of, its gross negligence, bad faith or willful misconduct (in
      each case as determined by a final, non-appealable judgment of a court of competent jurisdiction). The reasonable costs and expenses incurred by the Warrant Agent in enforcing this right of indemnification shall be paid by the Company. Anything in
      this Agreement to the contrary notwithstanding, in no event shall: (i) the Warrant Agent be liable under or in connection with this Agreement for indirect, special, incidental, punitive or consequential losses or damages of any kind whatsoever,
      including but not limited to lost profits, whether or not foreseeable, even if the Warrant Agent has been advised of the possibility thereof and regardless of the form of action in which such damages are sought, and (ii) the Warrant Agent’s aggregate
      liability to the Company, or any of the Company’s representatives or agents, or any other Person under this Section 14(a) or under any other term or provision of this Agreement, whether in contract, tort, or otherwise, in any circumstances, exceed
      one (1) year’s fees received by the Warrant Agent as fees and charges under this Agreement, but not including reimbursable expenses previously reimbursed to the Warrant Agent by the Company hereunder.

     

    

    
      11

      
        


    

    (b) Agent for the Company. In acting under this Agreement and in connection with the Warrants, the Warrant Agent is acting solely as
      agent of the Company and does not assume any obligations or relationship of agency or trust for or with any of the Holders of Warrants or beneficial owners of Warrants.

     

    (c) Counsel. The Warrant Agent may consult with counsel satisfactory to it, which may include counsel for the Company, and the advice
      or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in the absence of bad faith and in accordance with the advice or opinion of such
      counsel.

     

    (d) Documents. The Warrant Agent shall be protected and shall incur no liability for or in respect of any action taken or omitted by
      it in reliance upon any Warrant Certificate, notice, direction, consent, certificate, affidavit, statement or other paper or document reasonably believed by it to be genuine and to have been presented or signed by the proper parties.

     

    (e) Certain Transactions. The Warrant Agent, and its officers, directors, Affiliates, and employees, may become the owner of, or
      acquire any interest in, Warrants, with the same rights that it or they would have if it were not the Warrant Agent hereunder, and, to the extent permitted by applicable law, it or they may engage or be interested in any financial or other
      transaction with the Company and may act on, or as depositary, trustee or agent for, any committee or body of Holders of Warrants or other obligations of the Company as freely as if it were not the Warrant Agent hereunder. Nothing in this Agreement
      shall be deemed to prevent the Warrant Agent from acting as trustee under any indenture to which the Company is a party.

     

    (f) No Liability for Interest. The Warrant Agent shall have no liability for interest on any monies at any time received by it
      pursuant to any of the provisions of this Agreement or of the Warrant Certificates.

     

    (g) No Liability for Invalidity. The Warrant Agent shall have no liability with respect to any invalidity of this Agreement or the
      Warrant Certificates (except as to the Warrant Agent’s countersignature thereon).

     

    (h) No Responsibility for Representations. The Warrant Agent shall not be responsible for any of the recitals or representations
      herein or in the Warrant Certificate (except as to the Warrant Agent’s countersignature thereon), all of which are made solely by the Company.

     

    

    
      12

      
        


    

    (i) No Implied Obligations. The Warrant Agent shall be obligated to perform only such duties as are herein and in the Warrant
      Certificates specifically set forth and no implied duties or obligations shall be read into this Agreement or the Warrant Certificates against the Warrant Agent. The Warrant Agent shall not be under any obligation to take any action hereunder which
      may tend to involve it in any expense or liability, the payment of which within a reasonable time is not, in its reasonable opinion, assured to it. The Warrant Agent shall not be accountable or under any duty or responsibility for the use by the
      Company of any of the Warrant Certificates authenticated by the Warrant Agent and delivered by it to the Company pursuant to this Agreement or for the application by the Company of the proceeds of the exercise of Warrants. The Warrant Agent shall
      have no duty or responsibility in case of any default by the Company in the performance of its covenants or agreements contained herein or in the Warrant Certificates or in the case of the receipt of any written demand from a Holder of a Warrant
      Certificate with respect to such default, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law.

     

    (j) No Notice. The Warrant Agent shall not be required to take notice or be deemed to have notice of any event or condition hereunder,
      including any event or condition that may require action by the Warrant Agent, unless the Warrant Agent shall be specifically notified in writing of such event or condition by the Company, and all notices or other instruments required by this
      Agreement to be delivered to the Warrant Agent must, in order to be effective, be received by the Warrant Agent as specified in Section 19 hereof, and in the absence of such notice so delivered, the Warrant Agent may conclusively assume no such event
      or condition exists.

     

    (k) Instructions; Certifications. From time to time, the Company may provide the Warrant Agent with instructions or certifications
      concerning or related to the services performed by the Warrant Agent hereunder. In addition, at any time the Warrant Agent may apply to any officer of the Company for instruction, and may consult with legal counsel for the Warrant Agent or the
      Company with respect to any matter arising in connection with the services to be performed by the Warrant Agent under this Agreement. The Warrant Agent and its employees, agents and subcontractors shall not be liable and shall be indemnified by the
      Company for any action taken, suffered or omitted to be taken by Warrant Agent, its employees, agents and subcontractors in reliance upon any Company instructions, certifications or upon the advice or opinion of such counsel. The Warrant Agent shall
      not be held to have notice of any change of authority of any person, until receipt of written notice thereof from the Company.

     

    (l) The Warrant Agent shall not have any duty or responsibility in the case of the receipt of any written demand from any holder of Warrants with respect to any action or
      default by the Company, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or to make any demand upon the Company.

     

    (m) The Warrant Agent shall not be obligated to expend or risk its own funds or to take any action that it believes would expose or subject it to expense or liability or to a
      risk of incurring expense or liability, unless it has been furnished with assurances of repayment or indemnity satisfactory to it.

     

    (n) The Warrant Agent may rely on and be fully authorized and protected in acting or failing to act upon (a) any guaranty of signature by an “eligible guarantor institution”
      that is a member or participant in the Securities Transfer Agents Medallion Program or other comparable “signature guarantee program” or insurance program in addition to, or in substitution for, the foregoing; or (b) any law, act, regulation or any
      interpretation of the same even though such law, act, or regulation may thereafter have been altered, changed, amended or repealed.

     

    

    
      13

      
        


    

    (o) In the event the Warrant Agent believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction, request or other communication, paper or
      document received by the Warrant Agent hereunder, the Warrant Agent, may, in its sole discretion, refrain from taking any action, and shall be fully protected and shall not be liable in any way to Company, the holder of any Warrant or any other
      Person for refraining from taking such action, unless the Warrant Agent receives written instructions signed by the Company which eliminates such ambiguity or uncertainty to the satisfaction of Warrant Agent.

     

    (p) Opinion of Counsel. The Company shall provide an opinion of counsel reasonably satisfactory to counsel to the Warrant Agent prior to the effective date of this Agreement,
      which opinion shall state that all Warrants or Common Shares, as applicable, are: (1) registered under the Securities Act or are exempt from such registration, and all appropriate state securities law filings have been made with respect to the
      warrants or shares; and (2) validly issued, fully paid and non-assessable.

     

    (q) The rights and obligations of the parties set forth in this Section 14 shall survive the termination of the Warrants, the termination of this Agreement and the resignation,
      replacement or removal of the Warrant Agent.

     

    Section 15.          Purchase or Consolidation or Change of Name of Warrant Agent. Any Person into which the Warrant Agent or any successor Warrant Agent
      may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Warrant Agent or any successor Warrant Agent shall be party, or any Person succeeding to the shareholder services or corporate
      trust business of the Warrant Agent or any successor Warrant Agent, shall be the successor to the Warrant Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided
      that such Person would be eligible for appointment as a successor Warrant Agent under the provisions of Section 17. In case at the time such successor Warrant Agent shall succeed to the agency created by this Agreement any of the Warrant Certificates
      shall have been countersigned but not delivered, any such successor Warrant Agent may adopt the countersignature of the predecessor Warrant Agent and deliver such Warrant Certificates so countersigned; and in case at that time any of the Warrant
      Certificates shall not have been countersigned, any successor Warrant Agent may countersign such Warrant Certificates either in the name of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and in all such cases such
      Warrant Certificates shall have the full force provided in the Warrant Certificates and in this Agreement.

     

    In case at any time the name of the Warrant Agent shall be changed and at such time any of the Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent may adopt the
      countersignature under its prior name and deliver such Warrant Certificates so countersigned; and in case at that time any of the Warrant Certificates shall not have been countersigned, the Warrant Agent may countersign such Warrant Certificates
      either in its prior name or in its changed name; and in all such cases such Warrant Certificates shall have the full force provided in the Warrant Certificates and in this Agreement.

     

    Section 16.          Duties of Warrant Agent. The Warrant Agent undertakes the duties and obligations imposed by this Agreement upon the following express terms
      and conditions, by all of which the Company, by its acceptance hereof, shall be bound:

     

    

    
      14

      
        


    

    (a) Whenever in the performance of its duties under this Agreement the Warrant Agent shall deem it necessary or desirable that any fact or matter be proved or established by
      the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the
      Chief Executive Officer, Chief Financial Officer or Vice President of the Company; and such certificate shall be full authorization and protection to the Warrant Agent for any action taken or suffered by it under the provisions of this Agreement in
      reliance upon such certificate.

     

    (b) Subject to the limitation set forth in Section 14, the Warrant Agent shall be liable hereunder only for its own gross negligence or willful misconduct (in each case as
      determined by a final non-appealable judgment of a court of competent jurisdiction).

     

    (c) The Warrant Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Warrant Certificate (except its
      countersignature thereof) by the Company or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only.

     

    (d) The Warrant Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof
      by the Warrant Agent) or in respect of the validity or execution of any Warrant Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or
      in any Warrant Certificate; nor shall it be responsible for the adjustment of the Exercise Price or the making of any change in the number of Common Shares required under the provisions of Section 11 or 13 or responsible for the manner, method or
      amount of any such change or the ascertaining of the existence of facts that would require any such adjustment or change (except with respect to the exercise of Warrants evidenced by the Warrant Certificates after actual notice of any adjustment of
      the Exercise Price); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Common Shares to be issued pursuant to this Agreement or any Warrant Certificate or as to whether
      any Common Shares will, when issued, be duly authorized, validly issued, fully paid and nonassessable.

     

    (e) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts,
      instruments and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing by any party of the provisions of this Agreement.

     

    (f) The Warrant Agent is hereby authorized to accept instructions with respect to the performance of its duties hereunder from the Chief Executive Officer, Chief Financial
      Officer or Vice President of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable and shall be indemnified and held harmless for any action taken or suffered to be taken by it
      in accordance with instructions of any such officer.

     

    (g) The Warrant Agent and any shareholder, director, officer or employee of the Warrant Agent may buy, sell or deal in any of the Warrants or other securities of the Company or
      become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Warrant Agent under this Agreement. Nothing herein shall
      preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity.

     

    

    
      15

      
        


    

    (h) The Warrant Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorney or
      agents, and the Warrant Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorney or agents or for any loss resulting from any such act, default, neglect or misconduct, absent gross negligence,
      willful misconduct or bad faith in the selection and continued employment thereof (which gross negligence, willful misconduct or bad faith must be determined by a final, non-appealable judgment of a court of competent jurisdiction).

     

    Section 17.          Change of Warrant Agent. The Warrant Agent may resign and be discharged from its duties under this Agreement upon 30 days’ notice in
      writing sent to the Company and, in the event that the Warrant Agent or one of its Affiliates is not also the transfer agent for the Company, to each transfer agent of the Common Shares (if known to the Warrant Agent). In the event the transfer
      agency relationship in effect between the Company and the Warrant Agent terminates, the Warrant Agent will be deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination,
      and the Company shall be responsible for sending any required notice. The Company may remove the Warrant Agent or any successor Warrant Agent upon 30 days’ notice in writing, sent to the Warrant Agent or successor Warrant Agent, as the case may be,
      and to each transfer agent of the Common Shares, and to the Holders of the Warrant Certificates. If the Warrant Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Warrant
      Agent. If the Company shall fail to make such appointment within a period of 30 days after such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Warrant Agent or by the Holder of a
      Warrant Certificate (who shall, with such notice, submit his Warrant Certificate for inspection by the Company), then the Holder of any Warrant Certificate may apply to any court of competent jurisdiction for the appointment of a new Warrant Agent,
      provided that, for purposes of this Agreement, the Company shall be deemed to be the Warrant Agent until a new warrant agent is appointed. Any successor Warrant Agent, whether appointed by the Company or by such a court, shall be an entity organized
      and doing business under the laws of the United States or of a state thereof, in good standing, which is authorized under such laws to exercise shareholder services or corporate trust powers and is subject to supervision or examination by federal or
      state authority and which has at the time of its appointment as Warrant Agent a combined capital and surplus of at least $50,000,000. After appointment, the successor Warrant Agent shall be vested with the same powers, rights, duties and
      responsibilities as if it had been originally named as Warrant Agent without further act or deed; but the predecessor Warrant Agent shall deliver and transfer to the Company or the successor Warrant Agent, as the case may be, any property at the time
      held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose at the Company’s expense and without further liability to the Warrant Agent. Not later than the effective date of any such
      appointment, or assumption of the Warrant Agent’s role by the Company, the Company shall file notice thereof in writing with the predecessor Warrant Agent and each transfer agent of the Common Shares, and mail a notice thereof in writing to the
      Holders of the Warrant Certificates. However, failure to give any notice provided for in this Section 17, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Warrant Agent or the appointment of the
      successor Warrant Agent, as the case may be.

     

    

    
      16

      
        


    

    Section 18.          Issuance of New Warrant Certificates. Notwithstanding any of the provisions of this Agreement or of the Warrants to the contrary, the Company may,
      at its option, issue new Warrant Certificates or Global Warrants evidencing Warrants in such form as may be approved by its Board of Directors to reflect any adjustment or change in the Exercise Price per share and the number or kind or class of
      shares of stock or other securities or property purchasable under the several Warrant Certificates or Global Warrants made in accordance with the provisions of this Agreement.

     

    Section 19.          Notices. Notices or demands authorized by this Agreement to be given or made (i) by the Warrant Agent or by the Holder of any Warrant to or on the
      Company, (ii) subject to the provisions of Section 17, by the Company or by the Holder of any Warrant to or on the Warrant Agent or (iii) by the Company or the Warrant Agent to the Holder of any Warrant shall be deemed given when in writing (a) on
      the date delivered, if delivered personally, (b) on the first Business Day following the deposit thereof with Federal Express or another recognized overnight courier, if sent by Federal Express or another recognized overnight courier, (c) on the
      fourth Business Day following the mailing thereof with postage prepaid, if mailed by registered or certified mail (return receipt requested), and (d) the date of transmission, if such notice or communication is delivered via facsimile or email
      attachment at or prior to 5:30 p.m. (New York City time) on a Business Day and (e) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile or email attachment on a day that is not a Business
      Day or later than 5:30 p.m. (New York City time) on any Business Day, in each case to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

     

    (a)          If to the Company, to:

    Performance Shipping Inc.

    373 Syngrou Avenue

    175 64 Palaio Faliro

    Athens, Greece

    Email:

    Facsimile:

    Attn: Chief Executive Officer

     

    (b)          If to the Warrant Agent, to:

     

    	 	
            Computershare Trust Company, N.A.

          
	 	
            Computershare Inc.

          
	 	
            150 Royall Street

          
	 	
            Canton, MA 02021

          
	 	
            Facsimile: 781-575-2549

          
	 	
            Attn: Client Services

          


     

    For any notice delivered by email to be deemed given or made, such notice must be followed by notice sent by overnight courier service to be delivered on the next business day following such email,
      unless the recipient of such email has acknowledged via return email receipt of such email.

     

    

    
      17

      
        


    

    (c)  If to the Holder of any Warrant Certificate to the address of such Holder as shown on the registry books of the Company. Any notice required to be delivered by the Company
      to the Holder of any Warrant may be given by the Warrant Agent on behalf of the Company. Notwithstanding any other provision of this Agreement, where this Agreement provides for notice of any event to a Holder of any Warrant, such notice shall be
      sufficiently given if given to DTC (or its designee) pursuant to the procedures of DTC or its designee.

     

    Section 20.          Supplements and Amendments.

     

    (a) The Company and the Warrant Agent may from time to time supplement or amend this Agreement without the approval of any Holders of Global Warrants in order to add to the
      covenants and agreements of the Company for the benefit of the Holders of the Global Warrants or to surrender any rights or power reserved to or conferred upon the Company in this Agreement, provided that such addition or surrender shall not
      adversely affect the interests of the Holders of the Global Warrants or Warrant Certificates in any material respect.

     

    (b)  In addition to the foregoing, with the consent of Holders of Warrants entitled, upon exercise thereof, to receive not less than a majority of the Common Shares issuable
      under Warrants which are not beneficially owned by Affiliates of the Company, the Company and the Warrant Agent may modify this Agreement for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
      this Agreement or modifying in any manner the rights of the Holders of the Global Warrants; provided, however, that no modification of the terms (including but not limited to the adjustments described in Section 11) upon which the Warrants
      are exercisable or the rights of holders of Warrants to receive liquidated damages or other payments in cash from the Company or reducing the percentage required for consent to modification of this Agreement may be made without the consent of the
      Holder of each outstanding Global Warrant or Warrant Certificate affected thereby. As a condition precedent to the Warrant Agent’s execution of any supplement or amendment, the Company shall deliver to the Warrant Agent a certificate from a duly
      authorized officer of the Company that states that the proposed amendment complies with the terms of this Section 20. Notwithstanding anything in this Agreement to the contrary, the Warrant Agent shall not be required to execute any supplement or
      amendment to this Agreement that it has determined would adversely affect its own rights, duties, obligations or immunities under this Agreement. No supplement or amendment to this Agreement shall be effective unless duly executed by the Warrant
      Agent and the Company.

     

    Section 21.          Successors. All covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the
      benefit of their respective successors and assigns hereunder.

     

    Section 22.          Benefits of this Agreement. Nothing in this Agreement shall be construed to give any Person other than the Company, the Holders of Global
      Warrants or Warrant Certificates and the Warrant Agent any legal or equitable right, remedy or claim under this Agreement. This Agreement shall be for the sole and exclusive benefit of the Company, the Warrant Agent and the Holders of Global Warrants
      or Warrant Certificates. Notwithstanding anything to the contrary contained herein, to the extent any provision of a Warrant Certificate conflicts with any provision of this Agreement, the provisions of this Agreement shall govern and be controlling
      with respect to the rights, duties, obligations and immunities of the Warrant Agent.

      

    

    
      18

      
        


    

    Section 23.          Governing Law. This Agreement and each Warrant Certificate and Global Warrant issued hereunder shall be governed by, and construed in
      accordance with, the laws of the State of New York, without giving effect to the conflicts of law principles thereof.

     

    Section 24.          Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to
      be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, however, that if such
      excluded provision shall affect the rights, immunities, liabilities, duties or obligations of the Warrant Agent, the Warrant Agent shall be entitled to resign immediately upon written notice to the Company.

     

    Section 25.          Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an
      original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement transmitted electronically shall have the same authority, effect and enforceability as an original signature.

     

    Section 26.          Captions. The captions of the sections of this Agreement have been inserted for convenience only and shall not control or affect the meaning or
      construction of any of the provisions hereof.

     

    Section 27.          Information. The Company agrees to promptly provide to the Holders of the Warrants any information it provides to the holders of the Common Shares,
      except to the extent any such information is publicly available on the EDGAR system (or any successor thereof) of the Securities and Exchange Commission.

     

    [Signature page to follow]

     

    

    
      19

      
        


    

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

     

    

    	 	
            PERFORMANCE SHIPPING INC.

          
	 	 


    	 	
            By: 

            

          	  /s/ Andreas Michalopoulos


    	 	
            Name:  

          	 Andreas Michalopoulos 

            


    	 	
            Title:  

            

          	 Chief Executive Officer
	 	 


    	 	
            COMPUTERSHARE INC. and COMPUTERSHARE TRUST COMPANY, N.A., as Warrant Agent

          
	 	 


    	 	
            By:

          	 /s/ Collin Ekeogu


    	 	
            Name:  

            

          	 Collin Ekeogu


    	 	
            Title:  

            

          	 Manager, Corporate Actions


     

    

    
      20

      
        


    

    Exhibit 1

     

    Form of Warrant Certificate

     

    [PRINTER TO INSERT EXHIBIT 4.2]

      

    

    
      21

      
        


    

    Exhibit 2

     

    Form of Warrant Certificate Request Notice

     

    WARRANT CERTIFICATE REQUEST NOTICE

     

    To: Computershare Inc. and Computershare Trust Company, N.A. as Warrant Agent for Performance Shipping Inc. (the “Company”)

     

    The undersigned Holder of Common Share Purchase Warrants (“Warrants”) in the form of Global Warrants issued by the Company hereby elects to receive a Warrant Certificate evidencing the Warrants held by the
      Holder as specified below:

     

    Name of Holder of Warrants in form of Global Warrants:

     

    Name of Holder in Warrant Certificate (if different from name of Holder of Warrants in form of Global Warrants):

     

    Number of Warrants in name of Holder in form of Global Warrants:

     

    Number of Warrants for which Warrant Certificate shall be issued:

     

    Number of Warrants in name of Holder in form of Global Warrants after issuance of Warrant Certificate, if any:

     

    Warrant Certificate shall be delivered to the following address:

     

    The undersigned hereby acknowledges and agrees that, in connection with this Warrant Exchange and the issuance of the Warrant Certificate, the Holder is deemed to have surrendered the number of Warrants in form of
      Global Warrants in the name of the Holder equal to the number of Warrants evidenced by the Warrant Certificate.

     

    [SIGNATURE OF HOLDER]

     

    	
            Name of Investing Entity:

          	 	 


    	 	 
	
            Signature of Authorized Signatory of Investing Entity.

          	 


    	 	 	 
	
            Name of Authorized Signatory:

          	 	 


    	 	 	 
	
            Title of Authorized Signatory:

          	 	 


    	 	 	 
	
            Date:

          	 	 


    

    

    
      22

      
        


    

    Exhibit 3

     

    Form of Global Warrant Request Notice

     

    GLOBAL WARRANT REQUEST NOTICE

     

    To:  Computershare Inc. and Computershare Trust Company, N.A., as Warrant Agent for Performance Shipping Inc. (the “Company”)

     

    The undersigned Holder of Common Share Purchase Warrants (“Warrants”) in the form of Warrants Certificates issued by the Company hereby elects to receive a Global
          Warrant evidencing the Warrants held by the Holder as specified below:

     

    1.          Name of Holder of Warrants in form of Warrant Certificates:

     

    Name of Holder in Global Warrant (if different from name of Holder of Warrants in form of Warrant Certificates):

     

    Number of Warrants in name of Holder in form of Warrant Certificates:

     

    Number of Warrants for which Global Warrant shall be issued:

     

    Number of Warrants in name of Holder in form of Warrant Certificates after issuance of Global Warrant, if any:

     

    Global Warrant shall be delivered to the following address:

    The undersigned hereby acknowledges and agrees that, in connection with this Global Warrant Exchange and the issuance of the Global Warrant, the Holder is deemed to have surrendered the number of Warrants in form of
      Warrant Certificates in the name of the Holder equal to the number of Warrants evidenced by the Global Warrant.

     

     

    [SIGNATURE OF HOLDER]

     

    
      	
              Name of Investing Entity:

            	 	 


      	 	 
	
              Signature of Authorized Signatory of Investing Entity.

            	 


      	 	 	 
	
              Name of Authorized Signatory:

            	 	 


      	 	 	 
	
              Title of Authorized Signatory:

            	 	 


      	 	 	 
	
              Date:

            	 	 


      

      

      

      

      23