Document:

Exhibit 4.2

                    [Form of Stockholders' Rights Agreement]

               This Stockholders Rights Agreement (this "Rights Agreement") is
         made and entered into as of             , 2005, by and between Capital
         Maritime & Trading Corp., a Marshall Islands corporation (the
         "Company"), and           , as Rights Agent (the "Rights Agent").

         WHEREAS, the Board of Directors of the Company (the "Board") has (a)
authorized and declared a dividend of one right (the "Right") for each share of
the Company's common stock, par value $0.001 per share (the "Common Stock") held
of record as of the Close of Business (as hereinafter defined) on , 2005 (the
"Record Date") and (b) has further authorized the issuance of one Right in
respect of each share of Common Stock that shall become outstanding (i) at any
time between the Record Date and the earliest of the Distribution Date, the
Redemption Date or the Final Expiration Date (as such terms are hereinafter
defined) or (ii) upon the exercise or conversion, prior to the earlier of the
Redemption Date or the Final Expiration Date, of any option or other security
exercisable for or convertible into shares of Common Stock, which option or
other such security is outstanding on the Distribution Date; and

         WHEREAS, each Right represents the right of the holder thereof to
purchase one one-thousandth of a share of Series A Participating Preferred Stock
(as such number may hereafter be adjusted pursuant to the provisions hereof),
upon the terms and subject to the conditions set forth herein, having the
rights, preferences and privileges set forth in the Certificate of Designations
of Series A Participating Preferred Stock, attached hereto as Exhibit A.

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

         SECTION 1. Certain Definitions.

         "Acquiring Person" shall mean any Person who or which, together with
all Affiliates and Associates of such Person, shall be the Beneficial Owner of
20% or more of the shares of Common Stock then outstanding, but shall not
include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee
benefit plan of the Company or of any Subsidiary of the Company, (iv) any entity
holding shares of Common Stock for or pursuant to the terms of any such plan or
(v) a Permitted Holder. Notwithstanding the foregoing, no Person shall be deemed
to be an Acquiring Person as the result of an acquisition of shares of Common
Stock by the Company which, by reducing the number of shares outstanding,
increases the proportionate number of shares beneficially owned by such Person
to 20% or more of the shares of Common Stock of the Company then outstanding;
provided, however, that a Person who (i) becomes the Beneficial Owner of 20% or
more of the shares of Common Stock of the Company then outstanding by reason

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of share purchases by the Company and (ii) then after such share purchases by
the Company, becomes the Beneficial Owner of any additional shares of Common
Stock of the Company (other than pursuant to a dividend or distribution paid or
made by the Company on the outstanding shares of Common Stock in shares of
Common Stock or pursuant to a split or subdivision of the outstanding shares of
Common Stock), such Person shall be deemed to be an Acquiring Person unless upon
becoming the Beneficial Owner of such additional shares of Common Stock of the
Company such Person does not beneficially own 20% or more of the shares of
Common Stock of the Company then outstanding. Notwithstanding the foregoing, (i)
if the Company's Board of Directors determines in good faith that a Person who
would otherwise be an "Acquiring Person," as defined herein, has become such
inadvertently (including, without limitation, because (A) such Person was
unaware that it beneficially owned a percentage of the shares of Common Stock
that would otherwise cause such Person to be an "Acquiring Person," as defined
herein, or (B) such Person was aware of the extent of the shares of Common Stock
it beneficially owned but had no actual knowledge of the consequences of such
beneficial ownership under this Agreement) and without any intention of changing
or influencing control of the Company, and if such Person divested or divests as
promptly as practicable a sufficient number of shares of Common Stock so that
such Person would no longer be an "Acquiring Person," as defined herein, then
such Person shall not be deemed to be or to have become an "Acquiring Person"
for any purposes of this Agreement; and (ii) if, as of the date hereof, any
Person is the Beneficial Owner of 20% or more of the shares of Common Stock
outstanding, such Person shall not be or become an "Acquiring Person," as
defined herein, unless and until such time as such Person shall become the
Beneficial Owner of additional shares of Common Stock (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding shares
of Common Stock in shares of Common Stock or pursuant to a split or subdivision
of the outstanding shares of Common Stock), unless, upon becoming the Beneficial
Owner of such additional shares of Common Stock, such Person is not then the
Beneficial Owner of 20% or more of the shares of Common Stock then outstanding.

         "Adjustment fraction" shall have the meaning set forth in Section
11(a)(i) hereof.

         "Affiliate" and "Associate" shall have the respective meanings ascribed
to such terms in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act, as in effect on the date of this Agreement.

         A Person shall be deemed the "Beneficial Owner" of and shall be deemed
to "Beneficially Own" any securities:

         (i) which such Person or any of such Person's Affiliates or Associates
     beneficially owns, directly or indirectly, for purposes of Section 13(d) of
     the Exchange Act and Rule 13d-3 thereunder (or any comparable or successor
     law or regulation);

         (ii) which such Person or any of such Person's Affiliates or Associates
     has (A) the right to acquire (whether such right is exercisable immediately
     or only

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     after the passage of time) pursuant to any agreement, arrangement or
     understanding (other than customary agreements with and between
     underwriters and selling group members with respect to a bona fide public
     offering of securities), or upon the exercise of conversion rights,
     exchange rights, rights (other than the Rights), warrants or options, or
     otherwise; provided, however, that a Person shall not be deemed pursuant to
     this subsection (ii)(A) to be the Beneficial Owner of, or to beneficially
     own, (1) securities tendered pursuant to a tender or exchange offer made by
     or on behalf of such Person or any of such Person's Affiliates or
     Associates until such tendered securities are accepted for purchase or
     exchange, or (2) securities which a Person or any of such Person's
     Affiliates or Associates may be deemed to have the right to acquire
     pursuant to any merger or other acquisition agreement between the Company
     and such Person (or one or more of its Affiliates or Associates) if such
     agreement has been approved by the Board of Directors of the Company prior
     to there being an Acquiring Person; or (B) the right to vote pursuant to
     any agreement, arrangement or understanding; provided, however, that a
     Person shall not be deemed the Beneficial Owner of, or to beneficially own,
     any security under this subsection (ii)(B) if the agreement, arrangement or
     understanding to vote such security (1) arises solely from a revocable
     proxy or consent given to such Person in response to a public proxy or
     consent solicitation made pursuant to, and in accordance with, the
     applicable rules and regulations of the Exchange Act and (2) is not also
     then reportable on Schedule 13D under the Exchange Act (or any comparable
     or successor report); or

         (iii) which are beneficially owned, directly or indirectly, by any
     other Person (or any Affiliate or Associate thereof) with which such Person
     or any of such Person's Affiliates or Associates has any agreement,
     arrangement or understanding, whether or not in writing (other than
     customary agreements with and between underwriters and selling group
     members with respect to a bona fide public offering of securities) for the
     purpose of acquiring, holding, voting (except to the extent contemplated by
     the proviso to subsection (ii)(B) above) or disposing of any securities of
     the Company; provided, however, that in no case shall an officer or
     director of the Company be deemed (x) the Beneficial Owner of any
     securities beneficially owned by another officer or director of the Company
     solely by reason of actions undertaken by such persons in their capacity as
     officers or directors of the Company or (y) the Beneficial Owner of
     securities held of record by the trustee of any employee benefit plan of
     the Company or any Subsidiary of the Company for the benefit of any
     employee of the Company or any Subsidiary of the Company, other than the
     officer or director, by reason of any influence that such officer or
     director may have over the voting of the securities held in the plan.

         "Business Day" shall mean any day other than a Saturday, Sunday or a
day on which banking institutions in New York are authorized or obligated by law
or executive order to close.

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         "Close of Business" on any given date shall mean 5:00 P.M., New York
time, on such date; provided, however, that if such date is not a Business Day
it shall mean 5:00 P.M., New York time, on the next succeeding Business Day.

         "Common Stock" shall have the meaning set forth in the preamble. Common
Stock when used with reference to any Person other than the Company shall mean
the capital stock (or equity interest) with the greatest voting power of such
other Person or, if such other Person is a Subsidiary of another Person, the
Person or Persons which ultimately control such first-mentioned Person.

         "Common Stock Equivalents" shall have the meaning set forth in Section
11(a)(iii) hereof.

         "Company" shall have the meaning set forth in the preamble, subject to
the terms of Section 13(a)(iii)(C) hereof.

         "Current Per Share Market Price" of any security (a "Security" for
purposes of this definition), for all computations other than those made
pursuant to Section 11(a)(iii) hereof, shall mean the average of the daily
closing prices per share of such Security for the thirty (30) consecutive
Trading Days immediately prior to such date, and for purposes of computations
made pursuant to Section 11(a)(iii) hereof, the Current Per Share Market Price
of any Security on any date shall be deemed to be the average of the daily
closing prices per share of such Security for the ten (10) consecutive Trading
Days immediately prior to such date; provided, however, that in the event that
the Current Per Share Market Price of the Security is determined during a period
following the announcement by the issuer of such Security of (i) a dividend or
distribution on such Security payable in shares of such Security or securities
convertible into such shares or (ii) any subdivision, combination or
reclassification of such Security, and prior to the expiration of the applicable
thirty (30) Trading Day or ten (10) Trading Day period, after the ex-dividend
date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the Current Per
Share Market Price shall be appropriately adjusted to reflect the current market
price per share equivalent of such Security. The closing price for each day
shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York
Stock Exchange or, if the Security is not listed or admitted to trading on the
New York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or,
if the Security is not listed or admitted to trading on any national securities
exchange, the last sale price or, if such last sale price is not reported, the
average of the high bid and low asked prices in the over-the-counter market, as
reported by Nasdaq or such other system then in use, or, if on any such date the
Security is not quoted by any such organization, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in

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the Security selected by the Board of Directors of the Company. If on any such
date no market maker is making a market in the Security, the fair value of such
shares on such date as determined in good faith by the Board of Directors of the
Company shall be used. If the Preferred Shares are not publicly traded, the
Current Per Share Market Price of the Preferred Shares shall be conclusively
deemed to be the Current Per Share Market Price of the shares of Common Stock as
determined pursuant to this definition, as appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date
hereof, multiplied by 1000. If the Security is not publicly held or so listed or
traded, Current Per Share Market Price shall mean the fair value per share as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes.

         "Current Value" shall have the meaning set forth in Section 11(a)(iii)
hereof.

         "Distribution Date" shall mean the earlier of (i) the Close of Business
on the tenth day after the Shares Acquisition Date (or, if the tenth day after
the Shares Acquisition Date occurs before the Record Date, the Close of Business
on the Record Date) or (ii) the Close of Business on the tenth day (or such
later date as may be determined by action of the Company's Board of Directors)
after the date that a tender or exchange offer by any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company
or of any Subsidiary of the Company, or any Person or entity organized,
appointed or established by the Company for or pursuant to the terms of any such
plan) is first published or sent or given within the meaning of Rule 14d-2(a) of
the General Rules and Regulations under the Exchange Act, if, assuming the
successful consummation thereof, such Person would be an Acquiring Person.

         "Equivalent Shares" shall mean Preferred Shares and any other class or
series of capital stock of the Company which is entitled to the same rights,
privileges and preferences as the Preferred Shares.

         "Estate Planning Vehicle" shall mean a trust, partnership, or
foundation, the principal beneficiaries or partners of which may include any one
or more of Evangelos M. Marinakis, his spouse, his parents, his issue or issue
thereof.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended. "Exchange Ratio" shall have the meaning set forth in Section 24(a)
hereof.

         "Exercise Price" shall have the meaning set forth in Section 4(a)
hereof.

         "Expiration Date" shall mean the earliest to occur of: (i) the Close of
Business on the Final Expiration Date, (ii) the Redemption Date, or (iii) the
time at which the Board of Directors orders the exchange of the Rights as
provided in Section 24 hereof.

         "Final Expiration Date" shall mean          , 2015.

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         "Nasdaq" shall mean the National Association of Securities Dealers,
Inc. Automated Quotations System.

         "Permitted Holder" shall mean any of Evangelos M. Marinakis, his
spouse, his parents, his issue or issue thereof, any Estate Planning Vehicle or
a Person controlled by any one or a group of them.

         "Person" shall mean any individual, firm, corporation or other entity,
and shall include any successor (by merger or otherwise) of such entity.

         "Post-event Transferee" shall have the meaning set forth in Section
7(e) hereof.

         "Preferred Shares" shall mean shares of Series A Participating
Preferred Stock, $0.001 par value, of the Company.

         "Pre-event Transferee" shall have the meaning set forth in Section 7(e)
hereof.

         "Principal Party" shall have the meaning set forth in Section 13(b)
hereof.

         "Record Date" shall have the meaning set forth in the recitals at the
beginning of this Rights Agreement.

         "Redemption Date" shall have the meaning set forth in Section 23(a)
hereof.

         "Redemption Price" shall have the meaning set forth in Section 23(a)
hereof.

         "Rights Agent" shall mean             , or its successor or replacement
as provided in Sections 19 and 21 hereof.

         "Rights Certificate" shall mean a certificate substantially in the form
attached hereto as Exhibit B.

         "Section 11(a)(ii) Trigger Date" shall have the meaning set forth in
Section 11(a)(iii) hereof.

         "Section 13 Event" shall mean any event described in clause (i), (ii)
or (iii) of Section 13(a) hereof.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Shares Acquisition Date" shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 13(d) under the Exchange Act) by
the Company or an Acquiring Person that an Acquiring Person has become such;
provided that, if such

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Person is determined not to have become an Acquiring Person as defined herein,
then no Shares Acquisition Date shall be deemed to have occurred.

         "Spread" shall have the meaning set forth in Section 11(a)(iii) hereof.

         "Subsidiary" of any Person shall mean any corporation or other entity
of which an amount of voting securities sufficient to elect a majority of the
directors or Persons having similar authority of such corporation or other
entity is beneficially owned, directly or indirectly, by such Person, or any
corporation or other entity otherwise controlled by such Person.

         "Substitution Period" shall have the meaning set forth in Section
11(a)(iii) hereof.

         "Summary of Rights" shall mean a summary of this Agreement
substantially in the form attached hereto as Exhibit C.

         "Total Exercise Price" shall have the meaning set forth in Section 4(a)
hereof.

         "Trading Day" shall mean a day on which the principal national
securities exchange on which a referenced security is listed or admitted to
trading is open for the transaction of business or, if a referenced security is
not listed or admitted to trading on any national securities exchange, a
Business Day.

         A "Triggering Event" shall be deemed to have occurred upon any Person
becoming an Acquiring Person.

         SECTION 2. Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company and the holders of the Rights (who,
in accordance with Section 3 hereof, shall prior to the Distribution Date also
be the holders of the shares of Common Stock) in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable.

         SECTION 3. Issuance of Rights Certificates. (a) Until the Distribution
Date, (i) the Rights will be evidenced (subject to the provisions of Sections
3(b) and 3(c) hereof) by the certificates for shares of Common Stock registered
in the names of the holders thereof (which certificates shall also be deemed to
be Rights Certificates) and not by separate Rights Certificates and (ii) the
right to receive Rights Certificates will be transferable only in connection
with the transfer of shares of Common Stock. Until the earlier of the
Distribution Date or the Expiration Date, the surrender for transfer of
certificates for shares of Common Stock shall also constitute the surrender for
transfer of the Rights associated with the shares of Common Stock represented
thereby. As soon as practicable after the Distribution Date, the Company will
prepare and execute, the Rights Agent will countersign, and the Company will
send or cause to be sent (and the Rights Agent will, if requested, send) by
first-class, postage-prepaid mail, to each record holder of shares of Common
Stock as of the Close of Business on the Distribution Date, at the

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address of such holder shown on the records of the Company, a Rights Certificate
evidencing one Right for each share of Common Stock so held, subject to
adjustment as provided herein. In the event that an adjustment in the number of
Rights per share of Common Stock has been made pursuant to Section 11 hereof,
then at the time of distribution of the Rights Certificates, the Company shall
make the necessary and appropriate rounding adjustments (in accordance with
Section 14(a) hereof) so that Rights Certificates representing only whole
numbers of Rights are distributed and cash is paid in lieu of any fractional
Rights. As of the Distribution Date, the Rights will be evidenced solely by such
Rights Certificates and may be transferred by the transfer of the Rights
Certificates as permitted hereby, separately and apart from any transfer of
shares of Common Stock, and the holders of such Rights Certificates as listed in
the records of the Company or any transfer agent or registrar for the Rights
shall be the record holders thereof.

         (b) On the Record Date or as soon as practicable thereafter, the
Company will send a copy of the Summary of Rights by first-class,
postage-prepaid mail, to each record holder of shares of Common Stock as of the
Close of Business on the Record Date, at the address of such holder shown on the
records of the Company's transfer agent and registrar. With respect to
certificates for shares of Common Stock outstanding as of the Record Date, until
the Distribution Date, the Rights will be evidenced by such certificates
registered in the names of the holders thereof together with the Summary of
Rights. Until the Distribution Date (or, if earlier, the Expiration Date), the
surrender for transfer of any certificate for shares of Common Stock outstanding
on the Record Date, with or without a copy of the Summary of Rights, shall also
constitute the transfer of the Rights associated with the shares of Common Stock
represented thereby.

         (c) Unless the Board of Directors by resolution adopted at or before
the time of the issuance of any shares of Common Stock specifies to the
contrary, Rights shall be issued in respect of all shares of Common Stock that
are issued after the Record Date but prior to the earlier of the Distribution
Date or the Expiration Date or, in certain circumstances provided in Section 22
hereof, after the Distribution Date. Certificates representing such shares of
Common Stock shall also be deemed to be certificates for Rights, and shall bear
the following legend:

     THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN
     RIGHTS AS SET FORTH IN A STOCKHOLDER RIGHTS AGREEMENT BETWEEN CAPITAL
     MARITIME & TRADING CORP. AND              , AS THE RIGHTS AGENT, DATED
     AS OF                  , (THE "RIGHTS AGREEMENT"), THE TERMS OF WHICH ARE
     HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT
     THE PRINCIPAL EXECUTIVE OFFICES OF CAPITAL MARITIME & TRADING CORP. UNDER
     CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS
     WILL BE EVIDENCED BY SEPARATE CERTIFICATES AND WILL NO LONGER BE EVIDENCED
     BY THIS CERTIFICATE. CAPITAL MARITIME &

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     TRADING CORP. WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE
     RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST
     THEREFOR. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT,
     RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN
     ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE
     DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON BEHALF OF
     SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID.

With respect to such certificates containing the foregoing legend, until the
earlier of (i) the Distribution Date or (ii) the Expiration Date, the Rights
associated with the shares of Common Stock represented by such certificates
shall be evidenced by such certificates alone, and the surrender for transfer of
any such certificate shall also constitute the transfer of the Rights associated
with the shares of Common Stock represented thereby.

         (d) In the event that the Company purchases or acquires any shares of
Common Stock after the Record Date but prior to the Distribution Date, any
Rights associated with such shares of Common Stock shall be deemed canceled and
retired so that the Company shall not be entitled to exercise any Rights
associated with the shares of Common Stock which are no longer outstanding.

         SECTION 4. Form of Rights Certificates. (a) The Rights Certificates
(and the forms of election to purchase shares of Common Stock and of assignment
to be printed on the reverse thereof) shall be substantially in the form of
Exhibit B hereto and may have such marks of identification or designation and
such legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange or a national market system, on which the Rights may from time to time
be listed or included, or to conform to usage. Subject to the provisions of
Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed,
shall be dated as of the Record Date (or in the case of Rights issued with
respect to shares of Common Stock issued by the Company after the Record Date,
as of the date of issuance of such shares of Common Stock) and on their face
shall entitle the holders thereof to purchase such number of one-thousandths of
a Preferred Share as shall be set forth therein at the price set forth therein
(such exercise price per one one-thousandth of a Preferred Share being
hereinafter referred to as the "Exercise Price" and the aggregate Exercise Price
of all Preferred Shares issuable upon exercise of one Right being hereinafter
referred to as the "Total Exercise Price"), but the number and type of
securities purchasable upon the exercise of each Right and the Exercise Price
shall be subject to adjustment as provided herein.

         (b) Any Rights Certificate issued pursuant to Section 3(a) or Section
22 hereof that represents Rights beneficially owned by: (i) an Acquiring Person
or any

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Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring
Person (or of any such Associate or Affiliate) who becomes a transferee after
the Acquiring Person becomes such or (iii) a transferee of an Acquiring Person
(or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights
pursuant to either (A) a transfer (whether or not for consideration) from the
Acquiring Person to holders of equity interests in such Acquiring Person or to
any Person with whom such Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (B) a transfer
which the Company's Board of Directors has determined is part of a plan,
arrangement or understanding which has as a primary purpose or effect avoidance
of Section 7(e) hereof, and any Rights Certificate issued pursuant to Section 6
or Section 11 hereof upon transfer, exchange, replacement or adjustment of any
other Rights Certificate referred to in this sentence, shall contain (to the
extent feasible) the following legend:

     THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
     OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
     ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
     AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED
     HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION
     7(E) OF THE RIGHTS AGREEMENT

         SECTION 5. Countersignature and Registration. (a) The Rights
Certificates shall be executed on behalf of the Company by its Chairman of the
Board, its President and Chief Executive Officer, its Chief Financial Officer,
or any Vice President, either manually or by facsimile signature, and by the
Secretary or an Assistant Secretary of the Company, either manually or by
facsimile signature, and shall have affixed thereto the Company's seal (if any)
or a facsimile thereof. The Rights Certificates shall be manually countersigned
by the Rights Agent and shall not be valid for any purpose unless countersigned.
In case any officer of the Company who shall have signed any of the Rights
Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company,
such Rights Certificates, nevertheless, may be countersigned by the Rights Agent
and issued and delivered by the Company with the same force and effect as though
the person who signed such Rights Certificates on behalf of the Company had not
ceased to be such officer of the Company; and any Rights Certificate may be
signed on behalf of the Company by any person who, at the actual date of the
execution of such Rights Certificate, shall be a proper officer of the Company
to sign such Rights Certificate, although at the date of the execution of this
Rights Agreement any such person was not such an officer.

         (b) Following the Distribution Date, the Rights Agent will keep or
cause to be kept, at its office designated for such purposes, books for
registration and transfer of the Rights Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the Rights
Certificates, the number of Rights evidenced on its face by each of the Rights
Certificates and the date of each of the Rights Certificates.

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         SECTION 6. Transfer, Split Up, Combination and Exchange of Rights
Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates. (a)
Subject to the provisions of Sections 7(e), 14 and 24 hereof, at any time after
the Close of Business on the Distribution Date, and at or prior to the Close of
Business on the Expiration Date, any Rights Certificate or Rights Certificates
may be transferred, split up, combined or exchanged for another Rights
Certificate or Rights Certificates, entitling the registered holder to purchase
a like number of one-thousandths of a Preferred Share (or, following a
Triggering Event, other securities, cash or other assets, as the case may be) as
the Rights Certificate or Rights Certificates surrendered then entitled such
holder to purchase. Any registered holder desiring to transfer, split up,
combine or exchange any Rights Certificate or Rights Certificates shall make
such request in writing delivered to the Rights Agent, and shall surrender the
Rights Certificate or Rights Certificates to be transferred, split up, combined
or exchanged at the office of the Rights Agent designated for such purpose.
Neither the Rights Agent nor the Company shall be obligated to take any action
whatsoever with respect to the transfer of any such surrendered Rights
Certificate until the registered holder shall have completed and signed the
certificate contained in the form of assignment on the reverse side of such
Rights Certificate and shall have provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company shall reasonably request. Thereupon the Rights
Agent shall, subject to Sections 7(e), 14 and 24 hereof, countersign and deliver
to the person entitled thereto a Rights Certificate or Rights Certificates, as
the case may be, as so requested. The Company may require payment 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 Rights
Certificates.

         (b) Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate, and, in case of loss, theft or destruction, of indemnity
or security reasonably satisfactory to them, and, at the Company's request,
reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, and upon surrender to the Rights Agent and cancellation of
the Rights Certificate if mutilated, the Company will make and deliver a new
Rights Certificate of like tenor to the Rights Agent for delivery to the
registered holder in lieu of the Rights Certificate so lost, stolen, destroyed
or mutilated.

                                                                              12

         SECTION 7. Exercise of Rights; Exercise Price; Expiration Date of
Rights. (a) Subject to Sections 7(e), 23(b) and 24(b) hereof, the registered
holder of any Rights Certificate may exercise the Rights evidenced thereby
(except as otherwise provided herein) in whole or in part at any time after the
Distribution Date and prior to the Close of Business on the Expiration Date by
surrender of the Rights Certificate, with the form of election to purchase on
the reverse side thereof duly executed, to the Rights Agent at the office of the
Rights Agent designated for such purpose, together with payment of the Exercise
Price for each one-thousandth of a Preferred Share (or, following a Triggering
Event, other securities, cash or other assets as the case may be) as to which
the Rights are exercised.

         (b) The Exercise Price for each one-thousandth of a Preferred Share
issuable pursuant to the exercise of a Right shall initially be twenty-five
Dollars ($25), shall be subject to adjustment from time to time as provided in
Sections 11 and 13 hereof and shall be payable in lawful money of the United
States of America in accordance with paragraph (c) below.

         (c) Upon receipt of a Rights Certificate representing exercisable
Rights, with the form of election to purchase duly executed, accompanied by
payment of the Exercise Price for the number of one-thousandths of a Preferred
Share (or, following a Triggering Event, other securities, cash or other assets
as the case may be) to be purchased and an amount equal to any applicable
transfer tax required to be paid by the holder of such Rights Certificate in
accordance with Section 9(e) hereof, the Rights Agent shall, subject to Section
20(k) hereof, thereupon promptly (i) (A) requisition from any transfer agent of
the Preferred Shares (or make available, if the Rights Agent is the transfer
agent for the Preferred Shares) a certificate or certificates for the number of
one-thousandths of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets as the case may be) to be purchased and the
Company hereby irrevocably authorizes its transfer agent to comply with all such
requests or (B) if the Company shall have elected to deposit the total number of
one-thousandths of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets as the case may be) issuable upon exercise of
the Rights hereunder with a depositary agent, requisition from the depositary
agent depositary receipts representing such number of one-thousandths of a
Preferred Share (or, following a Triggering Event, other securities, cash or
other assets as the case may be) as are to be purchased (in which case
certificates for the Preferred Shares (or, following a Triggering Event, other
securities, cash or other assets as the case may be) represented by such
receipts shall be deposited by the transfer agent with the depositary agent) and
the Company hereby directs the depositary agent to comply with such request,
(ii) when appropriate, requisition from the Company the amount of cash to be
paid in lieu of issuance of fractional shares in accordance with Section 14
hereof, (iii) after receipt of such certificates or depositary receipts, cause
the same to be delivered to or upon the order of the registered holder of such
Rights Certificate, registered in such name or names as may be designated by
such holder and (iv) when appropriate, after receipt thereof, deliver such cash
to or upon the order of the registered holder of such Rights Certificate. The
payment of the Exercise Price (as such amount may be reduced (including to zero)
pursuant to Section 11(a)(iii) hereof) and an amount equal to any applicable
transfer tax required to be paid by the holder of such Rights Certificate in

                                                                              13

accordance with Section 9(e) hereof, may be made in cash or by certified bank
check, cashier's check or bank draft payable to the order of the Company. In the
event that the Company is obligated to issue securities of the Company other
than Preferred Shares, pay cash and/or distribute other property pursuant to
Section 11(a) hereof, the Company will make all arrangements necessary so that
such other securities, cash and/or other property are available for distribution
by the Rights Agent, if and when appropriate.

         (d) In case the registered holder of any Rights Certificate shall
exercise less than all the Rights evidenced thereby, a new Rights Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued
by the Rights Agent to the registered holder of such Rights Certificate or to
his or her duly authorized assigns, subject to the provisions of Section 14
hereof.

         (e) Notwithstanding anything in this Agreement to the contrary, from
and after the first occurrence of a Triggering Event, any Rights beneficially
owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee after the Acquiring Person becomes such (a
"Post-Event Transferee"), (iii) a transferee of an Acquiring Person (or of any
such Associate or Affiliate) who becomes a transferee prior to or concurrently
with the Acquiring Person becoming such and receives such Rights pursuant to
either (A) a transfer (whether or not for consideration) from the Acquiring
Person to holders of equity interests in such Acquiring Person or to any Person
with whom the Acquiring Person has any continuing agreement, arrangement or
understanding regarding the transferred Rights or (B) a transfer which the
Company's Board of Directors has determined is part of a plan, arrangement or
understanding which has as a primary purpose or effect the avoidance of this
Section 7(e) (a "Pre-Event Transferee") or (iv) any subsequent transferee
receiving transferred Rights from a Post-Event Transferee or a Pre-Event
Transferee, either directly or through one or more intermediate transferees,
shall become null and void without any further action and no holder of such
Rights shall have any rights whatsoever with respect to such Rights, whether
under any provision of this Agreement or otherwise. The Company shall use all
reasonable efforts to ensure that the provisions of this Section 7(e) and
Section 4(b) hereof are complied with, but shall have no liability to any holder
of Rights Certificates or to any other Person as a result of its failure to make
any determinations with respect to an Acquiring Person or any of such Acquiring
Person's Affiliates, Associates or transferees hereunder.

         (f) Notwithstanding anything in this Agreement to the contrary, neither
the Rights Agent nor the Company shall be obligated to undertake any action with
respect to a registered holder upon the occurrence of any purported exercise as
set forth in this Section 7 unless such registered holder shall, in addition to
having complied with the requirements of Section 7(a), have (i) completed and
signed the certificate contained in the form of election to purchase set forth
on the reverse side of the Rights Certificate surrendered for such exercise and
(ii) provided such additional evidence of the identity of the Beneficial Owner
(or former Beneficial Owner) or Affiliates or Associates thereof as the Company
shall reasonably request.

                                                                              14

         SECTION 8. Cancelation and Destruction of Rights Certificates. All
Rights 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 Rights Agent for cancelation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver to the Rights
Agent for cancelation and retirement, and the Rights Agent shall so cancel and
retire, any Rights Certificate purchased or acquired by the Company otherwise
than upon the exercise thereof. The Rights Agent shall deliver all canceled
Rights Certificates to the Company, or shall, at the written request of the
Company, destroy such canceled Rights Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

         SECTION 9. Reservation and Availability of Preferred Shares. (a) The
Company covenants and agrees that it will use its best efforts to cause to be
reserved and kept available out of its authorized and unissued Preferred Shares
not reserved for another purpose (and, following the occurrence of a Triggering
Event, out of its authorized and unissued shares of Common Stock and/or other
securities), the number of Preferred Shares (and, following the occurrence of
the Triggering Event, Common Stock and/or other securities) that will be
sufficient to permit the exercise in full of all outstanding Rights.

         (b) If the Company shall hereafter list any of its Preferred Shares on
a national securities exchange, then so long as the Preferred Shares (and,
following the occurrence of a Triggering Event, shares of Common Stock and/or
other securities) issuable and deliverable upon exercise of the Rights may be
listed on such exchange, the Company shall use its best efforts to cause, from
and after such time as the Rights become exercisable (but only to the extent
that it is reasonably likely that the Rights will be exercised), all shares
reserved for such issuance to be listed on such exchange upon official notice of
issuance upon such exercise.

         (c) The Company shall use its best efforts to (i) file, as soon as
practicable following the earliest date after the first occurrence of a
Triggering Event in which the consideration to be delivered by the Company upon
exercise of the Rights is described in Section 11(a)(ii) or Section 11(a)(iii)
hereof, or as soon as is required by law following the Distribution Date, as the
case may be, a registration statement under the Securities Act with respect to
the securities purchasable upon exercise of the Rights on an appropriate form,
(ii) cause such registration statement to become effective as soon as
practicable after such filing and (iii) cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (A) the date as of which the Rights are no
longer exercisable for such securities and (B) the date of expiration of the
Rights. The Company may temporarily suspend, for a period not to exceed ninety
(90) days after the date set forth in clause (i) of the first sentence of this
Section 9(c), the exercisability of the Rights in order to prepare and file such
registration statement and permit it to become effective. Upon any such
suspension, the Company shall issue a public announcement and notify the Rights
Agent that the exercisability of the Rights has been temporarily suspended, as
well as a public

                                                                              15

announcement and notification to the Rights Agent at such time as the suspension
is no longer in effect. The Company will also take such action as may be
appropriate under, or to ensure compliance with, the securities or "blue sky"
laws of the various states in connection with the exercisability of the Rights.
Notwithstanding any provision of this Agreement to the contrary, the Rights
shall not be exercisable in any jurisdiction, unless the requisite qualification
in such jurisdiction shall have been obtained, or an exemption therefrom shall
be available, and until a registration statement has been declared effective.

         (d) The Company covenants and agrees that it will take all such action
as may be necessary to ensure that all Preferred Shares (or other securities of
the Company) delivered upon exercise of Rights shall, at the time of delivery of
the certificates for such securities (subject to payment of the Exercise Price),
be duly and validly authorized and issued and fully paid and nonassessable
shares.

         (e) 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 Rights
Certificates or of any Preferred Shares (or other securities of the Company)
upon the exercise of Rights. The Company shall not, however, be required to pay
any transfer tax which may be payable in respect of any transfer or delivery of
Rights Certificates to a person other than, or the issuance or delivery of
certificates or depositary receipts for the Preferred Shares (or other
securities of the Company) in a name other than that of, the registered holder
of the Rights Certificate evidencing Rights surrendered for exercise or to issue
or to deliver any certificates or depositary receipts for Preferred Shares (or
other securities of the Company) upon the exercise of any Rights until any such
tax shall have been paid (any such tax being payable by the holder of such
Rights Certificate at the time of surrender) or until it has been established to
the Company's satisfaction that no such tax is due.

                                                                              16

         SECTION 10. Record Date. Each Person in whose name any certificate for
a number of one-thousandths of a Preferred Share (or other securities of the
Company) is issued upon the exercise of Rights shall for all purposes be deemed
to have become the holder of record of Preferred Shares (or other securities of
the Company) represented thereon, and such certificate shall be dated, the date
upon which the Rights Certificate evidencing such Rights was duly surrendered
and payment of the Total Exercise Price with respect to which the Rights have
been exercised (and any applicable transfer taxes) was made; provided, however,
that if the date of such surrender and payment is a date upon which the 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 Business Day on which the transfer books of the Company are open.
Prior to the exercise of the Rights evidenced thereby, the holder of a Rights
Certificate shall not be entitled to any rights of a holder of Preferred Shares
(or other securities of the Company) for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

         SECTION 11. Adjustment of Exercise Price, Number of Shares or Number of
Rights. The Exercise Price, the number and kind of shares or other property
covered by each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

         (a) (i) Notwithstanding anything in this Agreement to the contrary, in
the event the Company shall at any time after the date of this Agreement (A)
declare a dividend on the Preferred Shares payable in Preferred Shares, (B)
subdivide the outstanding Preferred Shares, (C) combine the outstanding
Preferred Shares (by reverse stock split or otherwise) into a smaller number of
Preferred Shares or (D) issue any shares of its capital stock in a
reclassification of the Preferred Shares (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), then, in each such event, except as otherwise
provided in this Section 11 and Section 7(e) hereof: (1) the Exercise Price in
effect at the time of the record date for such dividend or of the effective date
of such subdivision, combination or reclassification shall be adjusted so that
the Exercise Price thereafter shall equal the result obtained by dividing the
Exercise Price in effect immediately prior to such time by a fraction (the
"Adjustment Fraction"), the numerator of which shall be the total number of
Preferred Shares (or shares of capital stock issued in such reclassification of
the Preferred Shares) outstanding immediately following such time and the
denominator of which shall be the total number of Preferred Shares outstanding
immediately prior to such time; provided,

                                                                              17

however, that in no event shall the consideration to be paid upon the exercise
of one Right be less than the aggregate par value of the shares of capital stock
of the Company issuable upon exercise of such Right; and (2) the number of
one-thousandths of a Preferred Share (or share of such other capital stock)
issuable upon the exercise of each Right shall equal the number of
one-thousandths of a Preferred Share (or share of such other capital stock) as
was issuable upon exercise of a Right immediately prior to the occurrence of the
event described in clauses (A)-(D) of this Section 11(a)(i), multiplied by the
Adjustment Fraction; provided, however, that, no such adjustment shall be made
pursuant to this Section 11(a)(i) to the extent that there shall have
simultaneously occurred an event described in clause (A), (B), (C) or (D) of
Section 11(n) with a proportionate adjustment being made thereunder. Each share
of Common Stock that shall become outstanding after an adjustment has been made
pursuant to this Section 11(a)(i) shall have associated with it the number of
Rights, exercisable at the Exercise Price and for the number of one-thousandths
of a Preferred Share (or shares of such other capital stock) as one share of
Common Stock has associated with it immediately following the adjustment made
pursuant to this Section 11(a)(i).

         (ii) Subject to Section 24 of this Agreement, in the event a Triggering
     Event shall have occurred, then promptly following such Triggering Event
     each holder of a Right, except as provided in Section 7(e) hereof, shall
     thereafter have the right to receive for each Right, upon exercise thereof
     in accordance with the terms of this Agreement and payment of the Exercise
     Price in effect immediately prior to the occurrence of the Triggering
     Event, in lieu of a number of one-thousandths of a Preferred Share, such
     number of shares of Common Stock of the Company as shall equal the result
     obtained by multiplying the Exercise Price in effect immediately prior to
     the occurrence of the Triggering Event by the number of one-thousandths of
     a Preferred Share for which a Right was exercisable (or would have been
     exercisable if the Distribution Date had occurred) immediately prior to the
     first occurrence of a Triggering Event, and dividing that product by 50% of
     the Current Per Share Market Price for shares of Common Stock on the date
     of occurrence of the Triggering Event; provided, however, that the Exercise
     Price and the number of shares of Common Stock of the Company so receivable
     upon exercise of a Right shall be subject to further adjustment as
     appropriate in accordance with Section 11(e) hereof to reflect any events
     occurring in respect of the shares of Common Stock of the Company after the
     occurrence of the Triggering Event.

         (iii) In lieu of issuing shares of Common Stock in accordance with
     Section 11(a)(ii) hereof, the Company may, if the Company's Board of
     Directors determines that such action is necessary or appropriate and not
     contrary to the interest of holders of Rights and, in the event that the
     number of shares of Common Stock which are authorized by the Company's
     Certificate of Incorporation but not outstanding or reserved for issuance
     for purposes other than upon exercise of the Rights are not sufficient to
     permit the exercise in full of the Rights, or if any necessary regulatory
     approval for such issuance has not been obtained by the Company, the
     Company shall: (A) determine the excess of (1) the value of the shares of
     Common Stock issuable upon the exercise of a Right (the "Current Value")
     over (2) the Exercise Price (such excess, the "Spread") and (B) with
     respect to each Right, make adequate provision to substitute for such
     shares of Common Stock, upon exercise of the Rights, (1) cash, (2) a
     reduction in the Exercise Price, (3) other equity securities of the Company
     (including, without limitation, shares or units of shares of any series of
     preferred stock which the Company's Board of Directors has deemed to have
     the same value as Common Stock (such shares or units of shares of preferred
     stock are herein called

                                                                              18

     "Common Stock Equivalents")), except to the extent that the Company has not
     obtained any necessary stockholder or regulatory approval for such
     issuance, (4) debt securities of the Company, except to the extent that the
     Company has not obtained any necessary stockholder or regulatory approval
     for such issuance, (5) other assets or (6) any combination of the
     foregoing, having an aggregate value equal to the Current Value, where such
     aggregate value has been determined by the Company's Board of Directors
     based upon the advice of a nationally recognized investment banking firm
     selected by the Company's Board of Directors; provided, however, if the
     Company shall not have made adequate provision to deliver value pursuant to
     clause (B) above within thirty (30) days following the later of (x) the
     first occurrence of a Triggering Event and (y) the date on which the
     Company's right of redemption pursuant to Section 23(a) expires (the later
     of (x) and (y) being referred to herein as the "Section 11(a)(ii) Trigger
     Date"), then the Company shall be obligated to deliver, upon the surrender
     for exercise of a Right and without requiring payment of the Exercise
     Price, Common Stock (to the extent available), except to the extent that
     the Company has not obtained any necessary stockholder or regulatory
     approval for such issuance, and then, if necessary, cash, which shares
     and/or cash have an aggregate value equal to the Spread. If the Company's
     Board of Directors shall determine in good faith that it is likely that
     sufficient additional Common Stock could be authorized for issuance upon
     exercise in full of the Rights or that any necessary regulatory approval
     for such issuance will be obtained, the thirty (30) day period set forth
     above may be extended to the extent necessary, but not more than ninety
     (90) days after the Section 11(a)(ii) Trigger Date, in order that the
     Company may seek stockholder approval for the authorization of such
     additional shares or take action to obtain such regulatory approval (such
     period, as it may be extended, the "Substitution Period"). To the extent
     that the Company determines that some action need be taken pursuant to the
     first and/or second sentences of this Section 11(a)(iii), the Company (x)
     shall provide, subject to Section 7(e) hereof, that such action shall apply
     uniformly to all outstanding Rights and (y) may suspend the exercisability
     of the Rights until the expiration of the Substitution Period in order to
     seek any authorization of additional shares, to take any action to obtain
     any required regulatory approval and/or to decide the appropriate form of
     distribution to be made pursuant to such first sentence and to determine
     the value thereof. In the event of any such suspension, the Company shall
     issue a public announcement stating that the exercisability of the Rights
     has been temporarily suspended, as well as a public announcement at such
     time as the suspension is no longer in effect. For purposes of this Section
     11(a)(iii), the value of the Common Stock shall be the Current Per Share
     Market Price of the Common Stock on the Section 11(a)(ii) Trigger Date and
     the value of any Common Stock Equivalent shall be deemed to have the same
     value as the Common Stock on such date.

         (b) In case the Company shall, at any time after the date of this
Agreement, fix a record date for the issuance of rights, options or warrants to
all holders of Preferred Shares entitling such holders (for a period expiring
within forty-five (45) calendar days after such record date) to subscribe for or
purchase Preferred Shares or

                                                                              19

Equivalent Shares or securities convertible into Preferred Shares or Equivalent
Shares at a price per share (or having a conversion price per share, if a
security convertible into Preferred Shares or Equivalent Shares) less than the
then Current Per Share Market Price of the Preferred Shares or Equivalent Shares
on such record date, then, in each such case, the Exercise Price to be in effect
after such record date shall be determined by multiplying the Exercise Price in
effect immediately prior to such record date by a fraction, the numerator of
which shall be the number of Preferred Shares and Equivalent Shares (if any)
outstanding on such record date, plus the number of Preferred Shares or
Equivalent Shares, as the case may be, which the aggregate offering price of the
total number of Preferred Shares or Equivalent Shares, as the case may be, to be
offered or issued (and/or the aggregate initial conversion price of the
convertible securities to be offered or issued) would purchase at such current
market price, and the denominator of which shall be the number of Preferred
Shares and Equivalent Shares (if any) outstanding on such record date, plus the
number of additional Preferred Shares or Equivalent Shares, as the case may be,
to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible); provided, however, that
in no event shall the consideration to be paid upon the exercise of one Right be
less than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right. In case such subscription price may be paid
in a consideration part or all of which shall be in a form other than cash, the
value of such consideration shall be as determined in good faith by the
Company's Board of Directors, whose determination shall be described in a
statement filed with the Rights Agent and shall be binding on the Rights Agent
and the holders of the Rights. Preferred Shares and Equivalent Shares owned by
or held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation. Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights, options
or warrants are not so issued, the Exercise Price shall be adjusted to be the
Exercise Price which would then be in effect if such record date had not been
fixed.

         (c) In case the Company shall, at any time after the date of this
Agreement, fix a record date for the making of a distribution to all holders of
the Preferred Shares or of any class or series of Equivalent Shares (including
any such distribution made in connection with a consolidation or merger in which
the Company is the continuing or surviving corporation) of evidences of
indebtedness or assets (other than a regular quarterly cash dividend, if any, or
a dividend payable in Preferred Shares) or subscription rights, options or
warrants (excluding those referred to in Section 11(b)), then, in each such
case, the Exercise Price to be in effect after such record date shall be
determined by multiplying the Exercise Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the Current Per Share
Market Price of a Preferred Share or an Equivalent Share on such record date,
less the fair market value per Preferred Share or Equivalent Share (as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent) of
the portion of the cash, assets or evidences of indebtedness so to be
distributed or of such subscription rights or warrants applicable to a Preferred
Share or Equivalent Share, as the case may be, and the denominator of which
shall be such Current Per Share Market Price of a Preferred Share or Equivalent
Share on such record date; provided, however, that in no event shall the
consideration to be paid upon the

                                                                              20

exercise of one Right be less than the aggregate par value of the shares of
capital stock of the Company issuable upon exercise of one Right. Such
adjustments shall be made successively whenever such a record date is fixed, and
in the event that such distribution is not so made, the Exercise Price shall be
adjusted to be the Exercise Price which would have been in effect if such record
date had not been fixed.

         (d) Notwithstanding anything to the contrary, no adjustment in the
Exercise Price shall be required unless such adjustment would require an
increase or decrease of at least 1% in the Exercise Price; provided, however,
that any adjustments which by reason of this Section 11(d) are not required to
be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest
cent or to the nearest ten-thousandth of a share of Common Stock or other share
or one hundred-thousandth of a Preferred Share, as the case may be.
Notwithstanding the first sentence of this Section 11(d), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three
(3) years from the date of the transaction which requires such adjustment or
(ii) the Expiration Date.

         (e) If as a result of an adjustment made pursuant to Section 11(a) or
13(a) hereof, the holder of any Right thereafter exercised shall become entitled
to receive any shares of capital stock other than Preferred Shares, thereafter
the number of such other shares so receivable upon exercise of any Right and, if
required, the Exercise Price thereof, 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 Preferred Shares contained in Sections 11(a),
11(b), 11(c), 11(d), 11(g), 11(h), 11(i), 11(j), 11(k) and 11(l), and the
provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares
shall apply on like terms to any such other shares.

         (f) All Rights originally issued by the Company subsequent to any
adjustment made to the Exercise Price hereunder shall evidence the right to
purchase, at the adjusted Exercise Price, the number of one-thousandths of a
Preferred Share purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein.

         (g) Unless the Company shall have exercised its election as provided in
Section 11(h), upon each adjustment of the Exercise Price as a result of the
calculations made in Section 11(b) and (c), each Right outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Exercise Price, that number of Preferred Shares
(calculated to the nearest one hundred-thousandth of a share) obtained by (i)
multiplying (x) the number of Preferred Shares covered by a Right immediately
prior to this adjustment, by (y) the Exercise Price in effect immediately prior
to such adjustment of the Exercise Price, and (ii) dividing the product so
obtained by the Exercise Price in effect immediately after such adjustment of
the Exercise Price.

         (h) The Company may elect on or after the date of any adjustment of the
Exercise Price as a result of the calculations made in Section 11(b) or (c) to
adjust the

                                                                              21

number of Rights, in substitution for any adjustment in the number of Preferred
Shares purchasable upon the exercise of a Right. Each of the Rights outstanding
after such adjustment of the number of Rights shall be exercisable for the
number of one-thousandths of a Preferred Share for which a Right was exercisable
immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one hundred-thousandth) obtained by dividing the
Exercise Price in effect immediately prior to adjustment of the Exercise Price
by the Exercise Price in effect immediately after adjustment of the Exercise
Price. The Company shall make a public announcement of its election to adjust
the number of Rights, indicating the record date for the adjustment, and, if
known at the time, the amount of the adjustment to be made. This record date may
be the date on which the Exercise Price is adjusted or any day thereafter, but,
if the Rights Certificates have been issued, shall be at least ten (10) days
later than the date of the public announcement. If Rights Certificates have been
issued, upon each adjustment of the number of Rights pursuant to this Section
11(h), the Company shall, as promptly as practicable, cause to be distributed to
holders of record of Rights Certificates on such record date Rights Certificates
evidencing, subject to Section 14 hereof, the additional Rights to which such
holders shall be entitled as a result of such adjustment, or, at the option of
the Company, shall cause to be distributed to such holders of record in
substitution and replacement for the Rights Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof, if required by the
Company, new Rights Certificates evidencing all the Rights to which such holders
shall be entitled after such adjustment. Rights Certificates so to be
distributed shall be issued, executed and countersigned in the manner provided
for herein (and may bear, at the option of the Company, the adjusted Exercise
Price) and shall be registered in the names of the holders of record of Rights
Certificates on the record date specified in the public announcement.

         (i) Irrespective of any adjustment or change in the Exercise Price or
the number of Preferred Shares issuable upon the exercise of the Rights, the
Rights Certificates theretofore and thereafter issued may continue to express
the Exercise Price per one one-thousandth of a Preferred Share and the number of
one-thousandths of a Preferred Share which were expressed in the initial Rights
Certificates issued hereunder.

         (j) Before taking any action that would cause an adjustment reducing
the Exercise Price below the par or stated value, if any, of the number of
one-thousandths of a Preferred Share issuable upon exercise of the Rights, the
Company shall take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Company may validly and legally issue as
fully paid and nonassessable shares such number of one-thousandths of a
Preferred Share at such adjusted Exercise Price.

         (k) In any case in which this Section 11 shall require that an
adjustment in the Exercise Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuing to the holder of any Right exercised after such record date of
the number of one-thousandths of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above
the number of one-thousandths of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise

                                                                              22

on the basis of the Exercise Price in effect prior to such adjustment; provided,
however, that the Company shall deliver to such holder a due bill or other
appropriate instrument evidencing such holder's right to receive such additional
shares (fractional or otherwise) upon the occurrence of the event requiring such
adjustment.

         (l) Notwithstanding anything in this Section 11 to the contrary, prior
to the Distribution Date, the Company shall be entitled to make such reductions
in the Exercise Price, in addition to those adjustments expressly required by
this Section 11, as and to the extent that it in its sole discretion shall
determine to be advisable in order that any (i) consolidation or subdivision of
the Preferred Shares or Common Stock, (ii) issuance wholly for cash of any
Preferred Shares or Common Stock at less than the current market price, (iii)
issuance wholly for cash of Preferred Shares or Common Stock or securities which
by their terms are convertible into or exchangeable for Preferred or Common
Stock, (iv) stock dividends or (v) issuance of rights, options or warrants
referred to in this Section 11, hereafter made by the Company to holders of its
Preferred Shares or Common Stock shall not be taxable to such stockholders.

         (m) The Company covenants and agrees that, after the Distribution Date,
it will not, except as permitted by Sections 23, 24 or 27 hereof, take (or
permit to be taken) any action if at the time such action is taken it is
reasonably foreseeable that such action will diminish substantially or otherwise
eliminate the benefits intended to be afforded by the Rights.

         (n) In the event the Company shall at any time after the date of this
Agreement (A) declare a dividend on the Common Stock payable in shares of Common
Stock, (B) subdivide the outstanding shares of Common Stock, (C) combine the
outstanding Common Stock (by reverse stock split or otherwise) into a smaller
number of shares of Common Stock, or (D) issue any shares of its capital stock
in a reclassification of the shares of Common Stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), then, in each such event,
except as otherwise provided in this Section 11(a) and Section 7(e) hereof: (1)
each share of Common Stock (or shares of capital stock issued in such
reclassification of the Common Stock) outstanding immediately following such
time shall have associated with it the number of Rights as were associated with
one share of Common Stock immediately prior to the occurrence of the event
described in clauses (A)-(D) above; (2) the Exercise Price in effect at the time
of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification shall be adjusted so that the
Exercise Price thereafter shall equal the result obtained by multiplying the
Exercise Price in effect immediately prior to such time by a fraction, the
numerator of which shall be the total number of shares of Common Stock
outstanding immediately prior to the event described in clauses (A)-(D) above,
and the denominator of which shall be the total number of shares of Common Stock
outstanding immediately after such event; provided, however, that in no event
shall the consideration to be paid upon the exercise of one Right be less than
the aggregate par value of the shares of capital stock of the Company issuable
upon exercise of such Right; and (3) the number of one-

                                                                              23

thousandths of a Preferred Share (or shares of such other capital stock)
issuable upon the exercise of each Right outstanding after such event shall
equal the number of one-thousandths of a Preferred Share (or shares of such
other capital stock) as were issuable with respect to one Right immediately
prior to such event. Each share of Common Stock that shall become outstanding
after an adjustment has been made pursuant to this Section 11(n) shall have
associated with it the number of Rights, exercisable at the Exercise Price and
for the number of one-thousandths of a Preferred Share (or shares of such other
capital stock) as one share of Common Stock has associated with it immediately
following the adjustment made pursuant to this Section 11(n). If an event occurs
which would require an adjustment under both this Section 11(n) and Section
11(a)(ii) hereof, the adjustment provided for in this Section 11(n) shall be in
addition to, and shall be made prior to, any adjustment required pursuant to
Section 11(a)(ii) hereof.

         SECTION 12. Certificate of Adjusted Exercise Price or Number of Shares.
Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment
and a brief statement of the facts accounting for such adjustment, (b) file with
the Rights Agent and with each transfer agent for the Preferred Shares a copy of
such certificate and (c) mail a brief summary thereof to each holder of a Rights
Certificate in accordance with Section 26 hereof. Notwithstanding the foregoing
sentence, the failure of the Company to make such certification or give such
notice shall not affect the validity of such adjustment or the force or effect
of the requirement for such adjustment. The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment contained
therein and shall not be deemed to have knowledge of such adjustment unless and
until it shall have received such certificate.

         SECTION 13. Consolidation, Merger or Sale or Transfer of Assets or
Earning Power. (a)In the event that, following a Triggering Event, directly or
indirectly:

         (i) the Company shall consolidate with, or merge with and into, any
     other Person (other than a wholly-owned Subsidiary of the Company in a
     transaction the principal purpose of which is to change the state of
     incorporation of the Company and which complies with Section 11(m) hereof);

         (ii) any Person shall consolidate with the Company, or merge with and
     into the Company and the Company shall be the continuing or surviving
     corporation of such consolidation or merger and, in connection with such
     merger, all or part of the shares of Common Stock shall be changed into or
     exchanged for stock or other securities of any other person (or the
     Company); or

         (iii) the Company shall sell or otherwise transfer (or one or more of
     its Subsidiaries shall sell or otherwise transfer), in one or more
     transactions, assets or earning power aggregating 50% or more of the assets
     or earning power of the Company and its Subsidiaries (taken as a whole) to
     any other Person or Persons (other than the Company or one or more of its
     wholly owned Subsidiaries in one or more transactions, each of which
     individually (and together) complies with Section 11(m) hereof), then,
     concurrent with and in each such case:

                                                                              24

         (a) each holder of a Right (except as provided in Section 7(e) hereof)
     shall thereafter have the right to receive, upon the exercise thereof, at a
     price equal to the Total Exercise Price applicable immediately prior to the
     occurrence of the Section 13 Event in accordance with the terms of this
     Agreement, such number of validly authorized and issued, fully paid,
     nonassessable and freely tradeable shares of Common Stock of the Principal
     Party (as hereinafter defined), free of any liens, encumbrances, rights of
     first refusal or other adverse claims, as shall be equal to the result
     obtained by dividing such Total Exercise Price by 50% of the Current Per
     Share Market Price of the shares of Common Stock of such Principal Party on
     the date of consummation of such Section 13 Event, provided, however, that
     the Exercise Price and the number of shares of Common Stock of such
     Principal Party so receivable upon exercise of a Right shall be subject to
     further adjustment as appropriate in accordance with Section 11(e) hereof;

         (b) such Principal Party shall thereafter be liable for, and shall
     assume, by virtue of such Section 13 Event, all the obligations and duties
     of the Company pursuant to this Agreement;

         (c) the term "Company" shall thereafter be deemed to refer to such
     Principal Party, it being specifically intended that the provisions of
     Section 11 hereof shall apply only to such Principal Party following the
     first occurrence of a Section 13 Event;

         (d) such Principal Party shall take such steps (including, but not
     limited to, the reservation of a sufficient number of its Common Stock) in
     connection with the consummation of any such transaction as may be
     necessary to ensure that the provisions hereof shall thereafter be
     applicable, as nearly as reasonably may be, in relation to its shares of
     Common Stock thereafter deliverable upon the exercise of the Rights; and

         (e) upon the subsequent occurrence of any consolidation, merger, sale
     or transfer of assets or other extraordinary transaction in respect of such
     Principal Party, each holder of a Right shall thereupon be entitled to
     receive, upon exercise of a Right and payment of the Total Exercise Price
     as provided in this Section 13(a), such cash, shares, rights, warrants and
     other property which such holder would have been entitled to receive had
     such holder, at the time of such transaction, owned the shares of Common
     Stock of the Principal Party receivable upon the exercise of such Right
     pursuant to this Section 13(a), and such Principal Party shall take such
     steps (including, but not limited to, reservation of shares of stock) as
     may be necessary to permit the subsequent exercise of the Rights in
     accordance with the terms hereof for such cash, shares, rights, warrants
     and other property.

         (f) For purposes hereof, the "earning power" of the Company and its
     Subsidiaries shall be determined in good faith by the Company's Board of
     Directors on the basis of the operating earnings of each business operated
     by the Company and its Subsidiaries during the three fiscal years preceding
     the date of

                                                                              25

     such determination (or, in the case of any business not operated by the
     Company or any Subsidiary during three full fiscal years preceding such
     date, during the period such business was operated by the Company or any
     Subsidiary).

         (b) For purposes of this Agreement, the term "Principal Party" shall
mean:

         (i) in the case of any transaction described in clause (i) or (ii) of
     Section 13(a) hereof: (A) the Person that is the issuer of the securities
     into which the shares of Common Stock are converted in such merger or
     consolidation, or, if there is more than one such issuer, the issuer the
     shares of Common Stock of which have the greatest aggregate market value of
     shares outstanding, or (B) if no securities are so issued, (x) the Person
     that is the other party to the merger, if such Person survives said merger,
     or, if there is more than one such Person, the Person the shares of Common
     Stock of which have the greatest aggregate market value of shares
     outstanding or (y) if the Person that is the other party to the merger does
     not survive the merger, the Person that does survive the merger (including
     the Company if it survives) or (z) the Person resulting from the
     consolidation; and

         (ii) in the case of any transaction described in clause (iii) of
     Section13(a) hereof, the Person that is the party receiving the greatest
     portion of the assets or earning power transferred pursuant to such
     transaction or transactions, or, if more than one Person that is a party to
     such transaction or transactions receives the same portion of the assets or
     earning power so transferred and each such portion would, were it not for
     the other equal portions, constitute the greatest portion of the assets or
     earning power so transferred, or if the Person receiving the greatest
     portion of the assets or earning power cannot be determined, whichever of
     such Persons is the issuer of shares of Common Stock having the greatest
     aggregate market value of shares outstanding; provided, however, that in
     any such case described in the foregoing clause (b)(i) or (b)(ii), if the
     shares of Common Stock of such Person are not at such time or have not been
     continuously over the preceding 12-month period registered under Section 12
     of the Exchange Act, then (1) if such Person is a direct or indirect
     Subsidiary of another Person the shares of Common Stock of which are and
     have been so registered, the term "Principal Party" shall refer to such
     other Person, or (2) if such Person is a Subsidiary, directly or
     indirectly, of more than one Person, the Common Stock of which are and have
     been so registered, the term "Principal Party" shall refer to whichever of
     such Persons is the issuer of shares of Common Stock having the greatest
     aggregate market value of shares outstanding, or (3) if such Person is
     owned, directly or indirectly, by a joint venture formed by two or more
     Persons that are not owned, directly or indirectly by the same Person, the
     rules set forth in clauses (1) and (2) above shall apply to each of the
     owners having an interest in the venture as if the Person owned by the
     joint venture was a Subsidiary of both or all of such joint venturers, and
     the Principal Party in each such case shall bear the obligations set forth
     in this Section 13 in the same ratio as its interest in such Person bears
     to the total of such interests.

                                                                              26

         (c) The Company shall not consummate any Section 13 Event unless the
Principal Party shall have a sufficient number of authorized shares of Common
Stock that have not been issued or reserved for issuance to permit the exercise
in full of the Rights in accordance with this Section 13 and unless prior
thereto the Company and such issuer shall have executed and delivered to the
Rights Agent a supplemental agreement confirming that such Principal Party
shall, upon consummation of such Section 13 Event, assume this Agreement in
accordance with Sections 13(a) and 13(b) hereof, that all rights of first
refusal or preemptive rights in respect of the issuance of shares of Common
Stock of such Principal Party upon exercise of outstanding Rights have been
waived, that there are no rights, warrants, instruments or securities
outstanding or any agreements or arrangements which, as a result of the
consummation of such transaction, would eliminate or substantially diminish the
benefits intended to be afforded by the Rights and that such transaction shall
not result in a default by such Principal Party under this Agreement, and
further providing that, as soon as practicable after the date of such Section 13
Event, such Principal Party will:

         (i) prepare and file a registration statement under the Securities Act
     with respect to the Rights and the securities purchasable upon exercise of
     the Rights on an appropriate form, use its best efforts to cause such
     registration statement to become effective as soon as practicable after
     such filing and use its best efforts to cause such registration statement
     to remain effective (with a prospectus at all times meeting the
     requirements of the Securities Act) until the Expiration Date, and
     similarly comply with applicable state securities laws;

         (ii) use its best efforts to list (or continue the listing of) the
     Rights and the securities purchasable upon exercise of the Rights on a
     national securities exchange or to meet the eligibility requirements for
     quotation on Nasdaq and list (or continue the listing of) the Rights and
     the securities purchasable upon exercise of the Rights on Nasdaq; and

         (iii) deliver to holders of the Rights historical financial statements
     for such Principal Party which comply in all respects with the requirements
     for registration on Form F-1 (or any successor form) under the Exchange
     Act.

In the event that at any time after the occurrence of a Triggering Event some or
all of the Rights shall not have been exercised at the time of a transaction
described in this Section 13, the Rights which have not theretofore been
exercised shall thereafter be exercisable in the manner described in Section
13(a) (without taking into account any prior adjustment required by Section
11(a)(ii)).

         (d) In case the "Principal Party" for purposes of Section 13(b) hereof
has provision in any of its authorized securities or in its certificate of
incorporation or by-laws or other instrument governing its corporate affairs,
which provision would have the effect of (i) causing such Principal Party to
issue (other than to holders of Rights pursuant to Section 13 hereof), in
connection with, or as a consequence of, the consummation of a Section 13 Event,
shares of Common Stock or Equivalent Shares of such Principal Party at less than
the then Current Per Share Market Price thereof or securities exercisable for,

                                                                              27

or convertible into, shares of Common Stock or Equivalent Shares of such
Principal Party at less than such then Current Per Share Market Price, or (ii)
providing for any special payment, tax or similar provision in connection with
the issuance of the shares of Common Stock of such Principal Party pursuant to
the provisions of Section 13 hereof, then, in such event, the Company hereby
agrees with each holder of Rights that it shall not consummate any such
transaction unless prior thereto the Company and such Principal Party shall have
executed and delivered to the Rights Agent a supplemental agreement providing
that the provision in question of such Principal Party shall have been canceled,
waived or amended, or that the authorized securities shall be redeemed, so that
the applicable provision will have no effect in connection with or as a
consequence of, the consummation of the proposed transaction.

         (e) The Company covenants and agrees that it shall not, at any time
after the Distribution Date, effect or permit to occur any Section 13 Event, if
(i) at the time or immediately after such Section 13 Event there are any rights,
warrants or other instruments or securities outstanding or agreements in effect
which would substantially diminish or otherwise eliminate the benefits intended
to be afforded by the Rights, (ii) prior to, simultaneously with or immediately
after such Section 13 Event, the stockholders of the Person who constitutes, or
would constitute, the "Principal Party" for purposes of Section 13(b) hereof
shall have received a distribution of Rights previously owned by such Person or
any of its Affiliates or Associates or (iii) the form or nature of organization
of the Principal Party would preclude or limit the exercisability of the Rights.

         (f) The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers.

         SECTION 14. Fractional Rights and Fractional Shares. (a) The Company
shall not be required to issue fractions of Rights or to distribute Rights
Certificates which evidence fractional Rights. In lieu of such fractional
Rights, there shall be paid to the registered holders of the Rights Certificates
with regard to which such fractional Rights would otherwise be issuable, an
amount in cash equal to the same fraction of the current market value of a whole
Right. For the purposes of this Section 14(a), the current market value of a
whole Right shall be the closing price of the Rights for the Trading Day
immediately prior to the date on which such fractional Rights would have been
otherwise issuable, as determined pursuant to this Agreement.

         (b) The Company shall not be required to issue fractions of Preferred
Shares (other than fractions that are integral multiples of one one-thousandth
of a Preferred Share) upon exercise of the Rights or to distribute certificates
which evidence fractional Preferred Shares (other than fractions that are
integral multiples of one one-thousandth of a Preferred Share). Interests in
fractions of Preferred Shares in integral multiples of one one-thousandth of a
Preferred Share may, at the election of the Company, be evidenced by depositary
receipts, pursuant to an appropriate agreement between the Company and a
depositary selected by it; provided, that such agreement shall provide that the
holders of such depositary receipts shall have all the rights, privileges and
preferences to which they are entitled as beneficial owners of the Preferred
Shares

                                                                              28

represented by such depositary receipts. In lieu of fractional Preferred Shares
that are not integral multiples of one one-thousandth of a Preferred Share, the
Company shall pay to the registered holders of Rights Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the same
fraction of the current market value of a Preferred Share. For purposes of this
Section 14(b), the current market value of a Preferred Share shall be one
thousand times the closing price of a share of Common Stock (as determined
pursuant to the terms hereof) for the Trading Day immediately prior to the date
of such exercise.

         (c) The Company shall not be required to issue fractions of shares of
Common Stock or to distribute certificates which evidence fractional shares of
Common Stock upon the exercise or exchange of Rights. In lieu of such fractional
shares of Common Stock, the Company shall pay to the registered holders of
Rights Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of a share
of Common Stock. For purposes of this Section 14(c), the current market value of
a share of Common Stock shall be the closing price of a share of Common Stock
(as determined pursuant to the terms hereof) for the Trading Day immediately
prior to the date of such exercise.

         (d) The holder of a Right by the acceptance of the Right expressly
waives his or her right to receive any fractional Rights or any fractional
shares (other than fractions that are integral multiples of one one-thousandth
of a Preferred Share) upon exercise of a Right.

         SECTION 15. Rights of Action. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of the
shares of Common Stock); and any registered holder of any Rights Certificate
(or, prior to the Distribution Date, of the shares of Common Stock), without the
consent of the Rights Agent or of the holder of any other Rights Certificate
(or, prior to the Distribution Date, of the shares of Common Stock), may, in his
or her own behalf and for his or her own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company to enforce, or
otherwise act in respect of, his or her right to exercise the Rights evidenced
by such Rights Certificate in the manner provided in such Rights Certificate and
in this Agreement. Without limiting the foregoing or any remedies available to
the holders of Rights, it is specifically acknowledged that the holders of
Rights would not have an adequate remedy at law for any breach of this Agreement
and will be entitled to specific performance of the obligations under, and
injunctive relief against actual or threatened violations of, the obligations of
any Person subject to this Agreement.

         SECTION 16. Agreement of Rights Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

         (a) prior to the Distribution Date, the Rights will be transferable
only in connection with the transfer of the shares of Common Stock;

                                                                              29

         (b) after the Distribution Date, the Rights Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the principal office or offices of the Rights Agent designated for such
purposes, duly endorsed or accompanied by a proper instrument of transfer and
with the appropriate forms and certificates fully executed; and

         (c) subject to Sections 6(a) and 7(f) hereof, the Company and the
Rights Agent may deem and treat the person in whose name the Rights Certificate
(or, prior to the Distribution Date, the associated Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Rights
Certificates or the associated Common Stock certificate made by anyone other
than the Company or the Rights Agent) for all purposes whatsoever, and neither
the Company nor the Rights Agent shall be affected by any notice to the
contrary.

         SECTION 17. Rights Certificate Holder Not Deemed a Stockholder. No
holder, as such, of any Rights Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose to be the holder of the Preferred Shares
or any other securities of the Company which may at any time be issuable on the
exercise of the Rights represented thereby, nor shall anything contained herein
or in any Rights Certificate be construed to confer upon the holder of any
Rights Certificate, as such, any of the rights of a stockholder of the Company
or any right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25 hereof), or to receive dividends
or subscription rights, or otherwise, until the Right or Rights evidenced by
such Rights Certificate shall have been exercised in accordance with the
provisions hereof.

         SECTION 18. The Rights Agent. (a) The Company agrees to pay to the
Rights Agent reasonable compensation for all services rendered by it hereunder
and, from time to time, on demand of the Rights Agent, its reasonable expenses
and counsel fees and other disbursements incurred in the administration and
execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to
hold it harmless against, any loss, liability or expense, incurred without
negligence, bad faith or willful misconduct on the part of the Rights Agent, for
anything done or omitted by the Rights Agent in connection with the acceptance
and administration of this Agreement, including the costs and expenses of
defending against any claim of liability in the premises. In no event will the
Rights Agent be liable for special, indirect, incidental or consequential loss
or damage of any kind whatsoever, even if the Rights Agent has been advised of
the possibility of such loss or damage.

         (b) The Rights Agent shall be protected and shall incur no liability
for, or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Rights
Certificate or certificate for the Preferred Shares or shares of Common Stock or
for other securities of the Company, instrument of assignment or transfer, power
of attorney, endorsement, affidavit, letter,

                                                                              30

notice, direction, consent, certificate, statement or other paper or document
reasonably believed by it to be genuine and to be signed, executed and, where
necessary, verified or acknowledged, by the proper Person or Persons, or
otherwise upon the advice of counsel as set forth in Section 20 hereof.

         SECTION 19. Merger or Consolidation or Change of Name of Rights Agent.
Any corporation into which the Rights Agent or any successor Rights Agent may be
merged or with which it may be consolidated, or any corporation resulting from
any merger or consolidation to which the Rights Agent or any successor Rights
Agent shall be a party, or any corporation succeeding to the corporate trust
business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights 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, however, that such corporation would be eligible for appointment as a
successor Rights Agent under the provisions of Section 21 hereof. In case at the
time such successor Rights Agent shall succeed to the agency created by this
Agreement, any of the Rights Certificates shall have been countersigned but not
delivered, any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights
Certificates either in the name of the predecessor Rights Agent or in the name
of the successor Rights Agent; and in all such cases such Rights Certificates
shall have the full force provided in the Rights Certificates and in this
Agreement. In case at any time the name of the Rights Agent shall be changed and
at such time any of the Rights Certificates shall have been countersigned but
not delivered, the Rights Agent may adopt the countersignature under its prior
name and deliver Rights Certificates so countersigned; and in case at that time
any of the Rights Certificates shall not have been countersigned, the Rights
Agent may countersign such Rights Certificates either in its prior name or in
its changed name; and in all such cases such Rights Certificates shall have the
full force provided in the Rights Certificates and in this Agreement.

         SECTION 20. Duties of Rights Agent. The Rights Agent undertakes the
duties and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Rights Certificates,
by their acceptance thereof, shall be bound:

         (a) The Rights Agent may consult with legal counsel (who may be legal
counsel for the Company), and the written advice or opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent as
to any action taken or omitted by it in good faith and in accordance with such
written advice or opinion.

         (b) Whenever in the performance of its duties under this Agreement the
Rights Agent shall deem it necessary or desirable that any fact or matter
(including, without limitation, the identity of any Acquiring Person and the
determination of Current Per Share Market Price) 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

                                                                              31

established by a certificate signed by any one of the Chairman of the Board, the
Chief Executive Officer, the President, any Vice President, the Chief Financial
Officer, the Secretary or any Assistant Secretary of the Company and delivered
to the Rights Agent; and such certificate shall be full authorization to the
Rights Agent for any action taken or suffered in good faith by it under the
provisions of this Agreement in reliance upon such certificate.

         (c) The Rights Agent shall be liable hereunder to the Company and any
other Person only for its own negligence, bad faith or willful misconduct.

         (d) The Rights 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 Rights
Certificates (except its countersignature thereof) 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.

         (e) The Rights 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 Rights Agent) or in respect of the validity or
execution of any Rights 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 Rights Certificate; nor shall it
be responsible for any change in the exercisability of the Rights or any
adjustment in the terms of the Rights (including the manner, method or amount
thereof) provided for in Sections 3, 11, 13, 23 or 24, or the ascertaining of
the existence of facts that would require any such change or adjustment (except
with respect to the exercise of Rights evidenced by Rights Certificates after
receipt by the Rights Agent of a certificate furnished pursuant to Section 12
describing such change or adjustment); nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or
reservation of any Preferred Shares to be issued pursuant to this Agreement or
any Rights Certificate or as to whether any Preferred Shares will, when issued,
be validly authorized and issued, fully paid and nonassessable.

         (f) 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 Rights Agent for the carrying out or performing by the Rights Agent of
the provisions of this Agreement.

         (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
one of the Chairman of the Board, the Chief Executive Officer, the President,
any Vice President, the Chief Financial Officer, the Secretary or any Assistant
Secretary of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and it shall not be liable for any
action taken or suffered by it in good faith in accordance with instructions of
any such officer or for any delay in acting while waiting for those
instructions. Any application by the Rights Agent for written instructions from
the Company may, at the option of the Rights Agent, set forth in writing any
action proposed to be taken or omitted by the Rights Agent under this Rights
Agreement and the date on

                                                                              32

and/or after which such action shall be taken or such omission shall be
effective. The Rights Agent shall not be liable for any action taken by, or
omission of, the Rights Agent in accordance with a proposal included in any such
application on or after the date specified in such application (which date shall
not be less than five (5) Business Days after the date any officer of the
Company actually receives such application, unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action
(or the effective date in the case of an omission), the Rights Agent shall have
received written instructions in response to such application specifying the
action to be taken or omitted.

         (h) The Rights Agent and any stockholder, director, officer or employee
of the Rights Agent may buy, sell or deal in any of the Rights 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 Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal entity.

         (i) The Rights 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 attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection
and continued employment thereof.

         (j) No provision of this Agreement shall require the Rights Agent to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of its rights if
there shall be reasonable grounds for believing that repayment of such funds or
adequate indemnification against such risk or liability is not reasonably
assured to it.

         (k) If, with respect to any Rights Certificate surrendered to the
Rights Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has either not
been completed or indicates an affirmative response to clause 1 and/or 2
thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

         SECTION 21. Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon thirty (30) days' written notice mailed to the Company and to each transfer
agent of the Preferred Shares and the Common Stock by registered or certified
mail, and to the holders of the Rights Certificates by first-class mail. The
Company may remove the Rights Agent or any successor Rights Agent upon thirty
(30) days' written notice, mailed to the Rights Agent or successor Rights Agent,
as the case may be, and to each transfer agent of the Preferred Shares and the
Common Stock by registered or certified mail, and to the holders of the Rights
Certificates by first-class mail. If the

                                                                              33

Rights Agent shall resign or be removed or shall otherwise become incapable of
acting, the Company shall appoint a successor to the Rights Agent. If the
Company shall fail to make such appointment within a period of thirty (30) days
after giving notice of such removal or after receiving written notice of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by
the holder of a Rights Certificate (who shall, with such notice, submit his or
her Rights Certificate for inspection by the Company), then the registered
holder of any Rights Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be a
corporation organized and doing business under the laws of the United States or
of any state of the United States, in good standing, which is authorized under
such laws to exercise corporate trust or stockholder services powers and is
subject to supervision or examination by federal or state authority and which
has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $100 million. After appointment, the successor Rights Agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but
the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of
the Preferred Shares and the Common Stock, and mail a written notice thereof to
the registered holders of the Rights Certificates. Failure to give any notice
provided for in this Section 21, however, or any defect therein, shall not
affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.

                                                                              34

         SECTION 22. Issuance of New Rights Certificates. Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Rights Certificates evidencing Rights in such form
as may be approved by its Board of Directors to reflect any adjustment or change
in the Exercise Price and the number or kind or class of shares or other
securities or property purchasable under the Rights Certificates made in
accordance with the provisions of this Agreement. In addition, in connection
with the issuance or sale of shares of Common Stock following the Distribution
Date and prior to the redemption or expiration of the Rights, the Company (a)
shall, with respect to shares of Common Stock so issued or sold pursuant to the
exercise of stock options or under any employee plan or arrangement or upon the
exercise, conversion or exchange of other securities of the Company outstanding
at the date hereof or upon the exercise, conversion or exchange of securities
hereinafter issued by the Company and (b) may, in any other case, if deemed
necessary or appropriate by the Board of Directors of the Company, issue Rights
Certificates representing the appropriate number of Rights in connection with
such issuance or sale; provided, however, that (i) no such Rights Certificate
shall be issued and this sentence shall be null and void ab initio if, and to
the extent that, such issuance or this sentence would create a significant risk
of or result in material adverse tax consequences to the Company or the Person
to whom such Rights Certificate would be issued or would create a significant
risk of or result in such options' or employee plans' or arrangements' failing
to qualify for otherwise available special tax treatment and (ii) no such Rights
Certificate shall be issued if, and to the extent that, appropriate adjustment
shall otherwise have been made in lieu of the issuance thereof.

         SECTION 23. Redemption. (a) The Company may, at its option and with the
approval of the Board of Directors, at any time prior to the Close of Business
on the earlier of (i) the Shares Acquisition Date and (ii) the Final Expiration
Date, redeem all but not less than all the then outstanding Rights at a
redemption price of $0.001 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date
hereof (such redemption price being herein referred to as the "Redemption
Price") and the Company may, at its option, pay the Redemption Price either in
shares of Common Stock (based on the Current Per Share Market Price thereof at
the time of redemption) or cash. Such redemption of the Rights by the Company
may be made effective at such time, on such basis and with such conditions as
the Board of Directors in its sole discretion may establish. The date on which
the Board of Directors elects to make the redemption effective shall be referred
to as the "Redemption Date".

         (b) Immediately upon the action of the Board of Directors of the
Company ordering the redemption of the Rights, evidence of which shall have been
filed with the Rights Agent, and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price.
The Company shall promptly give public notice of any such redemption; provided,
however, that the failure to give or any defect in, any such notice shall not
affect the validity of such redemption. Within ten (10) days after the action of
the Board of Directors ordering the redemption of the Rights, the Company shall
give notice of such redemption to the Rights Agent and the holders of the

                                                                              35

then outstanding Rights by mailing such notice to all such holders at their last
addresses as they appear upon the registry books of the Rights Agent or, prior
to the Distribution Date, on the registry books of the transfer agent for the
Common Stock. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of
redemption will state the method by which the payment of the Redemption Price
will be made. Neither the Company nor any of its Affiliates or Associates may
redeem, acquire or purchase for value any Rights at any time in any manner other
than that specifically set forth in this Section 23 or in Section 24 hereof, and
other than in connection with the purchase of shares of Common Stock prior to
the Distribution Date.

         SECTION 24. Exchange. (a) Subject to applicable laws, rules and
regulations, and subject to subsection 24(c) below, the Company may, at its
option, by action of the Board of Directors, at any time after the occurrence of
a Triggering Event, exchange all or part of the then outstanding and exercisable
Rights (which shall not include Rights that have become void pursuant to the
provisions of Section 7(e) hereof) for shares of Common Stock at an exchange
ratio of one share of Common Stock per Right, appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the date
hereof (such exchange ratio being hereinafter referred to as the "Exchange
Ratio"). Notwithstanding the foregoing, the Board of Directors shall not be
empowered to effect such exchange at any time after any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company
or any such Subsidiary, or any entity holding Common Stock for or pursuant to
the terms of any such plan), together with all Affiliates and Associates of such
Person, becomes the Beneficial Owner of 50% or more of the Common Stock then
outstanding.

         (b) Immediately upon the action of the Board of Directors ordering the
exchange of any Rights pursuant to subsection 24(a) of this Section 24 and
without any further action and without any notice, the right to exercise such
Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of shares of Common Stock equal to the number of
such Rights held by such holder multiplied by the Exchange Ratio. The Company
shall give public notice of any such exchange; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of
such exchange. The Company shall mail a notice of any such exchange to all of
the holders of such Rights at their last addresses as they appear upon the
registry books of the Rights Agent. Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of exchange will state the method by which the exchange
of the shares of Common Stock for Rights will be effected and, in the event of
any partial exchange, the number of Rights which will be exchanged. Any partial
exchange shall be effected pro rata based on the number of Rights (other than
Rights which have become void pursuant to the provisions of Section 7(e) hereof)
held by each holder of Rights.

         (c) In the event that there shall not be sufficient shares of Common
Stock issued but not outstanding or authorized but unissued to permit any
exchange of Rights as contemplated in accordance with Section 24(a), the Company
shall either take such action as may be necessary to authorize additional shares
of Common Stock for issuance

                                                                              36

upon exchange of the Rights or alternatively, at the option of a majority of the
Board of Directors, with respect to each Right (i) pay cash in an amount equal
to the Current Value (as hereinafter defined), in lieu of issuing shares of
Common Stock in exchange therefor, or (ii) issue debt or equity securities or a
combination thereof, having a value equal to the Current Value, in lieu of
issuing shares of Common Stock in exchange for each such Right, where the value
of such securities shall be determined by a nationally recognized investment
banking firm selected by majority vote of the Board of Directors, or (iii)
deliver any combination of cash, property, shares of Common Stock and/or other
securities having a value equal to the Current Value in exchange for each Right.
For purposes of this Section 24(c) only, the Current Value shall mean the
product of the Current Per Share Market Price of shares of Common Stock on the
date of the occurrence of the event described above in subparagraph (a),
multiplied by the number of shares of Common Stock for which the Right otherwise
would be exchangeable if there were sufficient shares available. To the extent
that the Company determines that some action need be taken pursuant to clauses
(i), (ii) or (iii) of this Section 24(c), the Board of Directors may temporarily
suspend the exercisability of the Rights for a period of up to sixty (60) days
following the date on which the event described in Section 24(a) shall have
occurred, in order to seek any authorization of additional shares of Common
Stock and/or to decide the appropriate form of distribution to be made pursuant
to the above provision and to determine the value thereof. In the event of any
such suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended.

         (d) The Company shall not be required to issue fractions of shares of
Common Stock or to distribute certificates which evidence fractional shares of
Common Stock. In lieu of such fractional shares of Common Stock, there shall be
paid to the registered holders of the Rights Certificates with regard to which
such fractional shares of Common Stock would otherwise be issuable, an amount in
cash equal to the same fraction of the current market value of a whole share of
Common Stock (as determined pursuant to the terms hereof).

         (e) The Company may, at its option, by majority vote of the Board of
Directors, at any time before any Person has become an Acquiring Person,
exchange all or part of the then outstanding Rights for rights of substantially
equivalent value, as determined reasonably and with good faith by the Board of
Directors, based upon the advice of one or more nationally recognized investment
banking firms.

         (f) Immediately upon the action of the Board of Directors ordering the
exchange of any Rights pursuant to subsection 24(e) of this Section 24 and
without any further action and without any notice, the right to exercise such
Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of rights in exchange therefor as has been
determined by the Board of Directors in accordance with subsection 24(e) above.
The Company shall give public notice of any such exchange; provided, however,
that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange. The Company shall mail a notice of any such exchange
to all of the holders of such Rights at their last addresses as they appear upon
the registry books of the transfer agent for the shares of Common Stock of the

                                                                              37

Company. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such notice of
exchange will state the method by which the exchange of the Rights will be
effected.

         SECTION 25. Notice of Certain Events. (a) In case the Company shall
propose to effect or permit to occur any Triggering Event or Section 13 Event,
the Company shall give notice thereof to each holder of Rights in accordance
with Section 26 hereof at least twenty (20) days prior to occurrence of such
Triggering Event or such Section 13 Event.

         (b) In case any Triggering Event or Section 13 Event shall occur, then,
in any such case, the Company shall as soon as practicable thereafter give to
each holder of a Rights Certificate, in accordance with Section 26 hereof, a
notice of the occurrence of such event, which shall specify the event and the
consequences of the event to holders of Rights under Sections 11(a)(ii) and 13
hereof.

         SECTION 26. Notices. Notices or demands authorized by this Agreement to
be given or made by the Rights Agent or by the holder of any Rights Certificate
to or on the Company shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) as follows:

         Capital Maritime & Trading Corp.
         3, Iassonos Street
         Piraeus, Athens
         18537 Greece
         Attention: Ioannis Lazaridis

         with a copy to:

         Gr. J. Timagenis Law Office
         57 Notara Street
         Piraeus, Athens
         18535 Greece

Subject to the provisions of Section 21 hereof, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any
Rights Certificate to or on the Rights Agent shall be sufficiently given or made
if sent by first-class mail, postage prepaid, addressed (until another address
is filed in writing with the Company) as follows:

         [Rights Agent]
         [     ]
         [     ]

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Rights Certificate shall be
sufficiently given or

                                                                              38

made if sent by first-class mail, postage prepaid, addressed to such holder at
the address of such holder as shown on the registry books of the Company.

         SECTION 27. Supplements and Amendments. Prior to the occurrence of a
Distribution Date, the Company may supplement or amend this Agreement in any
respect without the approval of any holders of Rights and the Rights Agent
shall, if the Company so directs, execute such supplement or amendment. From and
after the occurrence of a Distribution Date, the Company and the Rights Agent
may from time to time supplement or amend this Agreement without the approval of
any holders of Rights in order to (i) cure any ambiguity, (ii) correct or
supplement any provision contained herein which may be defective or inconsistent
with any other provisions herein, (iii) shorten or lengthen any time period
hereunder or (iv) to change or supplement the provisions hereunder in any manner
that the Company may deem necessary or desirable and that shall not adversely
affect the interests of the holders of Rights (other than an Acquiring Person or
an Affiliate or Associate of an Acquiring Person); provided, this Agreement may
not be supplemented or amended to lengthen, pursuant to clause (iii) of this
sentence, (A) a time period relating to when the Rights may be redeemed at such
time as the Rights are not then redeemable or (B) any other time period unless
such lengthening is for the purpose of protecting, enhancing or clarifying the
rights of, and/or the benefits to, the holders of Rights (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the
delivery of a certificate from an appropriate officer of the Company that states
that the proposed supplement or amendment is in compliance with the terms of
this Section 27, the Rights Agent shall execute such supplement or amendment.
Prior to the Distribution Date, the interests of the holders of Rights shall be
deemed coincident with the interests of the holders of shares of Common Stock.

         SECTION 28. Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

         SECTION 29. Determinations and Actions by the Board of Directors, etc.
For all purposes of this Agreement, any calculation of the number of shares of
Common Stock outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding shares of Common Stock
of which any Person is the Beneficial Owner, shall be made in accordance with
the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations
under the Exchange Act. The Board of Directors of the Company shall have the
exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board, or the Company, or as may
be necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i) interpret the provisions of this
Agreement and (ii) make all determinations deemed necessary or advisable for the
administration of this Agreement (including a determination to redeem or not
redeem the Rights or to amend the Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below,
all omissions with respect to the foregoing) which are done or made by the Board
in good faith, shall (x) be final, conclusive and binding on the Company, the
Rights Agent, the holders of the Rights

                                                                              39

Certificates and all other parties and (y) not subject the Board to any
liability to the holders of the Rights.

         SECTION 30. Benefits of this Agreement. Nothing in this Agreement shall
be construed to give to any Person other than the Company, the Rights Agent and
the registered holders of the Rights Certificates (and, prior to the
Distribution Date, the shares of Common Stock) any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the registered
holders of the Rights Certificates (and, prior to the Distribution Date, the
shares of Common Stock).

SECTION 31. 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 notwithstanding anything in this Agreement to the contrary, if any
such term, provision, covenant or restriction is held by such court or authority
to be invalid, void or unenforceable and the Board of Directors of the Company
determines in its good faith judgment that severing the invalid language from
this Agreement would adversely affect the purpose or effect of this Agreement,
the right of redemption set forth in Section 23 hereof shall be reinstated and
shall not expire until the Close of Business on the tenth day following the date
of such determination by the Board of Directors.

         SECTION 32. Governing Law. This Agreement and each Right and each
Rights Certificate issued hereunder shall be deemed to be a contract made under
the laws of New York and for all purposes shall be governed by and construed in
accordance with the laws of such jurisdiction applicable to contracts to be made
and performed entirely within such jurisdiction.

         SECTION 33. 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.

                                                                              40

         SECTION 34. Descriptive Headings. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

         IN WITNESS WHEREOF, the parties have executed this Stockholder Rights
Agreement as of the date first written above.

                                    CAPITAL MARITIME & TRADING CORP.,
                                    as Issuer

                                       by
                                         ---------------------------------------
                                         Name:
                                         Title:

                                    [RIGHTS AGENT],
                                    as Agent

                                       by
                                         ---------------------------------------
                                         Name:
                                         Title:

                                                                       Exhibit A

               CERTIFICATE OF DESIGNATIONS OF RIGHTS, PREFERENCES
               AND PRIVILEGES OF SERIES A PARTICIPATING PREFERRED
                    STOCK OF CAPITAL MARITIME & TRADING CORP.

         The undersigned, Mr. Evangelos M. Marinakis and Mr. John C. Palios do
hereby certify:

         1. That they are the duly elected and acting President and Chief
Executive Officer and Secretary, respectively, of Capital Maritime & Trading
Corp., a Marshall Islands corporation (the "Company").

         2. That pursuant to the authority conferred by the Company's Amended
and Restated Articles of Incorporation, the Company's Board of Directors on June
[ ], 2005 adopted the following resolution designating and prescribing the
relative rights, preferences and limitations of the Company's Series A
Participating Preferred Stock:

         RESOLVED, that pursuant to the authority vested in the Board of
Directors (the "Board") of the Company by the Articles of Incorporation, the
Board does hereby establish a series of preferred stock, par value $0.001 per
share, and the designation and certain powers, preferences and other special
rights of the shares of such series, and certain qualifications, limitations and
restrictions thereon, are hereby fixed as follows:

         Section 1. Designation and Amount. The shares of such series shall be
designated as "Series A Participating Preferred Stock". The Series A
Participating Preferred Stock shall have a par value of $0.001 per share, and
the number of shares constituting such series shall initially be 1,000,000,
which number the Board may from time to time increase or decrease (but not below
the number then outstanding).

         Section 2. Proportional Adjustment. In the event the Company shall at
any time after the issuance of any share or shares of Series A Participating
Preferred Stock (i) declare any dividend on the common stock of the Company par
value $0.001 per share (the "Common Stock") payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock or (iii) combine the outstanding
Common Stock into a smaller number of shares, then in each such case the Company
shall simultaneously effect a proportional adjustment to the number of
outstanding shares of Series A Participating Preferred Stock.

         Section 3. Dividends and Distributions. (a) Subject to the prior and
superior right of the holders of any shares of any series of preferred stock
ranking prior and superior to the shares of Series A Participating Preferred
Stock with respect to dividends, the holders of shares of Series A Participating
Preferred Stock shall be entitled to receive when, as and if declared by the
Board out of funds legally available for the purpose, quarterly dividends
payable in cash on the last day of January, April, July and October in each year
(each such date being referred to herein as a "Quarterly Dividend Payment
Date"), commencing on the first Quarterly Dividend Payment Date after the first
issuance of a share or fraction of a share of Series A Participating Preferred
Stock, in

                                                                               2

an amount per share (rounded to the nearest cent) equal to 1,000 times the
aggregate per share amount of all cash dividends, and 1,000 times the aggregate
per share amount (payable in kind) of all non-cash dividends or other
distributions other than a dividend payable in shares of Common Stock or a
subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock since the immediately preceding
Quarterly Dividend Payment Date, or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Participating Preferred Stock.

         (b) The Company shall declare a dividend or distribution on the Series
A Participating Preferred Stock as provided in paragraph (a) above immediately
after it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock).

         (c) Dividends shall begin to accrue on outstanding shares of Series A
Participating Preferred Stock from the Quarterly Dividend Payment Date
immediately preceding the date of issue of such shares of Series A Participating
Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on
such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date after
the record date for the determination of holders of shares of Series A
Participating Preferred Stock entitled to receive a quarterly dividend and
before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue from such Quarterly Dividend Payment Date.
Accrued but unpaid dividends shall not bear interest. Dividends paid on the
shares of Series A Participating Preferred Stock in an amount less than the
total amount of such dividends at the time accrued and payable on such shares
shall be allocated pro rata on a share-by-share basis among all such shares at
the time outstanding. The Board may fix a record date for the determination of
holders of shares of Series A Participating Preferred Stock entitled to receive
payment of a dividend or distribution declared thereon, which record date shall
be no more than 30 days prior to the date fixed for the payment thereof.

         Section 4. Voting Rights. The holders of shares of Series A
Participating Preferred Stock shall have the following voting rights:

         (a) Each share of Series A Participating Preferred Stock shall entitle
the holder thereof to 1,000 votes on all matters submitted to a vote of the
stockholders of the Company.

         (b) Except as otherwise provided herein or by law, the /holders of
shares of Series A Participating Preferred Stock and the holders of shares of
Common Stock shall vote together as one class on all matters submitted to a vote
of stockholders of the Company.

         (c) Except as required by law, holders of Series A Participating
Preferred Stock shall have no special voting rights and their consent shall not
be required (except to

                                                                               3

the extent they are entitled to vote with holders of Common Stock as set forth
herein) for taking any corporate action.

         Section 5. Certain Restrictions. (a) The Company shall not declare any
dividend on, make any distribution on, or redeem or purchase or otherwise
acquire for consideration any shares of Common Stock after the first issuance of
a share or fraction of a share of Series A Participating Preferred Stock unless
concurrently therewith it shall declare a dividend on the Series A Participating
Preferred Stock as required by Section 3 hereof.

         (b) Whenever quarterly dividends or other dividends or distributions
payable on the Series A Participating Preferred Stock as provided in Section 3
are in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series A Participating
Preferred Stock outstanding shall have been paid in full, the Company shall not
(i) declare or pay dividends on, make any other distributions on, or redeem or
purchase or otherwise acquire for consideration any shares of stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up)
to the Series A Participating Preferred Stock; (ii) declare or pay dividends on,
make any other distributions on any shares of stock ranking on a parity (either
as to dividends or upon liquidation, dissolution or winding up) with Series A
Participating Preferred Stock, except dividends paid ratably on the Series A
Participating Preferred Stock and all such parity stock on which dividends are
payable or in arrears in proportion to the total amounts to which the holders of
all such shares are then entitled; (iii) redeem or purchase or otherwise acquire
for consideration shares of any stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Series A
Participating Preferred Stock, provided that the Company may at any time redeem,
purchase or otherwise acquire shares of any such parity stock in exchange for
shares of any stock of the Company ranking junior (either as to dividends or
upon dissolution, liquidation or winding up) to the Series A Participating
Preferred Stock; (iv) purchase or otherwise acquire for consideration any shares
of Series A Participating Preferred Stock, or any shares of stock ranking on a
parity with the Series A Participating Preferred Stock, except in accordance
with a purchase offer made in writing or by publication (as determined by the
Board) to all holders of such shares upon such terms as the Board, after
consideration of the respective annual dividend rates and other relative rights
and preferences of the respective series and classes, shall determine in good
faith will result in fair and equitable treatment among the respective series or
classes.

         (c) The Company shall not permit any subsidiary of the Company to
purchase or otherwise acquire for consideration any shares of stock of the
Company unless the Company could, under paragraph (a) of this Section 5,
purchase or otherwise acquire such shares at such time and in such manner.

         Section 6. Reacquired Shares. Any shares of Series A Participating
Preferred Stock purchased or otherwise acquired by the Company in any manner
whatsoever shall be retired and canceled promptly after the acquisition thereof.
All such shares shall upon their cancellation become authorized but unissued
shares of preferred stock and may be reissued as part of a new series of
preferred stock to be created by

                                                                               4

resolution or resolutions of the Board, subject to the conditions and
restrictions on issuance set forth herein and, in the Articles of Incorporation,
as then amended.

         Section 7. Liquidation, Dissolution or Winding Up. Upon any
liquidation, dissolution or winding up of the Company , the holders of shares of
Series A Participating Preferred Stock shall be entitled to receive an aggregate
amount per share equal to 1,000 times the aggregate amount to be distributed per
share to holders of shares of Common Stock plus an amount equal to any accrued
and unpaid dividends on such shares of Series A Participating Preferred Stock.

         Section 8. Consolidation, Merger, etc. In case the Company shall enter
into any consolidation, merger, combination or other transaction in which the
shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of
Series A Participating Preferred Stock shall at the same time be similarly
exchanged or changed in an amount per share equal to 1,000 times the aggregate
amount of stock, securities, cash and/or any other property (payable in kind),
as the case may be, into which or for which each share of Common Stock is
changed or exchanged.

         Section 9. No Redemption. The shares of Series A Participating
Preferred Stock shall not be redeemable.

         Section 10. Ranking. The Series A Participating Preferred Stock shall
rank junior to all other series of the Company's preferred stock as to the
payment of dividends and the distribution of assets, unless the terms of any
such series shall provide otherwise.

         Section 11. Amendment. The Articles of Incorporation of the Company
shall not be further amended in any manner which would materially alter or
change the powers, preference or special rights of the Series A Participating
Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of a majority of the outstanding shares of Series A Participating
Preferred Stock, voting separately as a class.

         Section 12. Fractional Shares. Series A Participating Preferred Stock
may be issued in fractions of a share which shall entitle the holder, in
proportion to such holder's fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all
other rights of holders of Series A Participating Preferred Stock.

         RESOLVED FURTHER, that the President and Chief Executive Officer or any
Vice President and the Secretary or any Assistant Secretary of this Company be,
and they hereby are, authorized and directed to prepare and file a Certificate
of Designation of Rights, Preferences and Privileges in accordance with the
foregoing resolution and the provisions of Marshall Islands law and to take such
actions as they may deem necessary or appropriate to carry out the intent of the
foregoing resolution."

                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

                                                                               5

         We further declare under penalty of perjury that the matters set forth
in the foregoing Certificate of Designation are true and correct of our own
knowledge.

         Executed at                    on       , 2005.

                                       -----------------------------------------
                                       Evangelos M. Marinakis
                                       President and Chief Executive Officer

                                       -----------------------------------------
                                       John C. Palios
                                       Secretary

                                                                       Exhibit B

                           FORM OF RIGHTS CERTIFICATE

Certificate No. [R]-___________ Rights

                  NOT EXERCISABLE AFTER                           , 2015, OR
                  EARLIER IF REDEEMED BY THE COMPANY. THE RIGHTS ARE SUBJECT TO
                  REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT,
                  ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. RIGHTS
                  BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR
                  ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN
                  THE RIGHTS AGREEMENT) AND BY ANY SUBSEQUENT HOLDER OF SUCH
                  RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

                                Right Certificate

                        CAPITAL MARITIME & TRADING CORP.

         This certifies that                    , or registered assigns, is the
registered owner of the number of Rights set forth above, each of which entitles
the owner thereof, subject to the terms, provisions and conditions of the Rights
Agreement dated as of                   (the "Rights Agreement"), between
Capital Maritime & Trading Corp., a Marshall Islands corporation (the
"Company"), and , as Rights Agent (the "Rights Agent"), unless the Rights
evidenced hereby shall have been previously redeemed by the Company, to purchase
from the Company at any time after the Distribution Date (as defined in the
Rights Agreement) and prior to 5:00 p.m., New York City time, on the 10th
anniversary of the date of the Rights Agreement (the "Expiration Date"), at the
principal office or offices of the Rights Agent designated for such purpose, or
its successors as Rights Agent, one one-thousandth (1/1000th) of a fully paid,
non assessable share of Series A Participating Preferred Stock, $0.001 par
value, of the Company (the "Preferred Shares"), at a purchase price per one
one-thousandth (1/1000th) of a share equal to $ (the "Purchase Price") payable
in cash, upon presentation and surrender of this Right Certificate with the Form
of Election to Purchase duly executed.

         The Purchase Price and the number and kind of shares which may be
purchased upon exercise of each Right evidenced by this Right Certificate, as
set forth above, are the Purchase Price and the number and kind of shares which
may be so purchased as of                       . As provided in the Rights
Agreement, the Purchase Price and the number and kind of shares which may be
purchased upon the exercise of each Right evidenced by this Right Certificate
are subject to modification and adjustment upon the happening of certain events.

                                                                               2

         If the Rights evidenced by this Right Certificate are at any time
beneficially owned by an Acquiring Person or an Affiliate or Associate of an
Acquiring Person (as such terms are defined in the Rights Agreement), such
Rights shall be null and void and nontransferable and the holder of any such
Right (including any purported transferee or subsequent holder) shall not have
any right to exercise or transfer any such Right.

         This Right Certificate is subject to all the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
reference to the Rights Agreement is hereby made for a full description of the
rights, limitations of rights, obligations, duties and immunities hereunder of
the Rights Agent, the Company and the holders of the Right Certificates. Copies
of the Rights Agreement are on file at the above-mentioned office of the Rights
Agent and are also available from the Company upon written request.

         This Right Certificate, with or without other Right Certificates, upon
surrender at the principal stock transfer or corporate trust office of the
Rights Agent, may be exchanged for another Right Certificate or Right
Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number and kind of shares as the Rights evidenced by
the Right Certificate or Right Certificates surrendered shall have entitled such
holder to purchase. If this Right Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Right
Certificate or Right Certificates for the number of whole Rights not exercised.

         Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Right Certificate may be redeemed by the Company at its option at a
redemption price (in cash or shares of Common Stock or other securities of the
Company deemed by the Board of Directors to be at least equivalent in value) of
$0.001 per Right (which amount shall be subject to adjustment as provided in the
Rights Agreement) at any time prior to the earlier of (i) such time as a Person
becomes an Acquiring Person and (ii) the Expiration Date.

         The Company may, but shall not be required to, issue fractions of
Preferred Shares or distribute certificates which evidence fractions of
Preferred Shares upon the exercise of any Right or Rights evidenced hereby. In
lieu of issuing fractional shares, the Company may elect to make a cash payment
as provided in the Rights Agreement for fractions of a share other than one
one-thousandth (1/1000th) of a share or any integral multiple thereof or to
issue certificates or utilize a depository arrangement as provided in the terms
of the Rights Agreement and the Preferred Shares.

         No holder of this Right Certificate shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the Preferred
Shares or of any other securities of the Company which may at any time be
issuable on the exercise hereof, nor shall anything contained in the Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a stockholder of the Company, including, without limitation,
any right to vote for the election of directors or upon any matter

                                                                               3

submitted to stockholders at any meeting thereof, or to give or withhold consent
to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to
receive dividends or other distributions or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right Certificate shall have been
exercised as provided in accordance with the provisions of the Rights Agreement.

         This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by an authorized signatory of the Rights
Agent.

         WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal.

Dated as of:

                                       CAPITAL MARITIME & TRADING CORP.,

                                          by
                                            ------------------------------------
                                            Name:
                                            Title:

Attest:

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

Date of countersignature:

Countersigned:

[                              ], as Rights Agent,

     by _____________________
     Authorized Signatory

                                                                       Exhibit C

                                SUMMARY OF RIGHTS

Distribution and Transfer of Rights:

Distribution Date:                        The rights will separate from the
                                          common stock and become exercisable
                                          after (1) a person or group acquires
                                          ownership of 20% or more of the
                                          company's common stock or (2) the 10th
                                          day (or such later date as determined
                                          by the company's board of directors)
                                          after a person or group announces a
                                          tender or exchange offer which would
                                          result in that person or group holding
                                          20% or more of the company's common
                                          stock.

Preferred Stock Purchaseable Upon         On the Distribution Date, each holder
Exercise of Rights:                       of a right will be entitled to
                                          purchase for $25 (the "Exercise
                                          Price") a fraction (1/1000th) of one
                                          share of the company's preferred stock
                                          which has similar economic terms as
                                          one share of common stock.

Flip-in:                                  If an acquiring person (an "Acquiring
                                          Person") acquires more than 20% of the
                                          company's common stock then each
                                          holder of a right (except that
                                          acquiring person) will be entitled to
                                          buy at the Exercise Price, a number of
                                          shares of the company's common stock
                                          which has a market value of twice the
                                          Exercise Price.

Flip-over:                                If after an Acquiring Person acquires
                                          more than 20% of the company's common
                                          stock, the company merges into another
                                          company (either as the surviving
                                          corporation or as the disappearing
                                          entity) or the company sells more than
                                          50% of its assets or earning power,
                                          then each holder of a right (except
                                          for those owned by the acquirer) will
                                          be entitled to purchase at the
                                          Exercise Price, a number of shares of
                                          common stock of the surviving entity
                                          which has a then current market value
                                          of twice the Exercise Price.

Exchange Provision:                       Any time after the date an Acquiring
                                          Person obtains more than 20% of the
                                          company's common stock and before that
                                          Acquiring Person acquires more than
                                          50% of the company's outstanding
                                          common stock, the company may exchange
                                          each right owned by all other rights
                                          holders, in whole or in part, for one
                                          share of the company's common stock.

                                                                               2

Redemption of Rights:                     The company can redeem the rights at
                                          any time prior to a public
                                          announcement that a person has
                                          acquired ownership of 20% or more of
                                          the company's common stock.

Expiration of Rights:                     The rights expire on the earliest of
                                          (1)           , 2015 or (2) the
                                          exchange or redemption of the rights
                                          as described above.

Amendment of Terms of Rights:             The terms of the rights and the
                                          Stockholder Rights Plan may be amended
                                          without the consent of the rights
                                          holders at any time on or prior to the
                                          Distribution Date. After the
                                          Distribution Date, the terms of the
                                          rights and the Stockholder Rights Plan
                                          may be amended to make changes, which
                                          do not adversely affect the rights of
                                          the rights holders (other than the
                                          Acquiring Person).

Voting Rights:                            The rights will not have any voting
                                          rights.

Anti-dilution Provisions:                 The rights will have the benefit of
                                          certain customary anti-dilution
                                          protections.Exhibit 10.7

                     [Form of Registration Rights Agreement]

                    REGISTRATION RIGHTS AGREEMENT, dated as of June 27, 2005,
                    among CAPITAL MARITIME & TRADING CORP., a Marshall Islands
                    company (the "Company"), BOEM MARITIME INVESTMENT CORP., a
                    Marshall Islands company ("Boem"), ADMIRALTY CORPORATION, a
                    Marshall Islands company ("Admiralty"), and the other
                    holders of Registrable Securities (as defined below) party
                    hereto (together with Boem and Admiralty and any member of a
                    Family Group (as defined below) that delivers an undertaking
                    to the Company agreeing to be bound by the terms of this
                    Agreement (as defined below), the "Holders").

         WHEREAS, the Company intends to sell shares of its Common Stock, par
value $0.001 per share ("Common Stock"), in a public offering (the "Offering");

         WHEREAS, the Holders will own Common Stock; and

         WHEREAS, the Holders and the Company desire to make certain
arrangements to provide the Holders with registration rights with respect to the
Registrable Securities (as defined below);

         NOW THEREFORE, in consideration of the mutual covenants and agreements
set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, the parties hereby agree as follows:

         SECTION 1.01. Definitions. The following terms shall have the following
meanings for purposes of this Agreement:

         "Affiliate" of any specified Person means any other Person, directly or
indirectly, through one or more intermediaries, Controlling, Controlled By or
Under Common Control With such specified Person.

         "Agreement" means this Registration Rights Agreement, as it may be
amended, supplemented, restated or modified from time to time.

         "Company" is defined in the preamble hereto.

         "Company Funded Registration" is defined in Section 1.02(a).

         "Control" (including the terms "Controlled By" and "Under Common
Control With") is defined in the Restated Articles of Incorporation of the
Company as in

                                                                               2

effect at consummation of the Offering.

         "Demand Holders" means each of (i) Boem (on behalf of itself or one or
more members of its Family Group) and (ii) Admiralty (on behalf of itself or one
or more members of its Family Group).

         "Demand Request" is defined in Section 1.02(a).

         "Disadvantageous Condition" is defined in Section 1.02(a).

         "Estate Planning Vehicle" means a trust or partnership (i) that is the
record holder of shares of Common Stock and (ii) the principal beneficiaries or
partners of which include Mr. Evangelos Marinakis ("EM") or Mrs. Irene Marinakis
("IM"), their respective issue, or issue of any thereof, and, with respect to
EM, shall include his spouse and his mother.

         "Exchange Act" means the U.S. Securities Exchange Act of 1934, as
amended, together with the rules and regulations promulgated thereunder.

         "Family Group" means, (a) with respect to Boem, EM, any Estate Planning
Vehicle that is established by EM and any other Person that is Controlled By EM
and (b) with respect to Admiralty, IM, any Estate Planning Vehicle that is
established by IM and any other Person that is Controlled By IM, in each case,
so long as such Person continues to be so Controlled.

         "Group" has the meaning assigned to such term in Section 13(d)(3) of
the Exchange Act.

         "Holders" is defined in the preamble hereto.

         "Inspectors" is defined in Section 1.04(a)(9).

         "Minimum Demand Request" means, on the date a Demand Request is
delivered, at the option of the Demand Holder or Holders (in consultation with
the Company), such aggregate number of shares of Common Stock of the Demand
Holder or Holders that (A) have an aggregate minimum market value (based on the
closing price on the NYSE on the date preceding the date of the Demand Request)
of at least $25 million, before calculation of underwriting discounts and
commissions or (B) is at least equal to 10% of the Company's outstanding Common
Stock immediately following the closing of the Offering (subject to adjustment
in connection with any stock split, reverse stock split, reclassification,
recapitalization, split-up, combination, share exchange or similar transaction).

         "NASD" means the National Association of Securities Dealers, Inc.

         "Offering" is defined in the recitals hereto.

                                                                               3

         "Person" means any individual, corporation, limited liability company,
limited or general partnership, joint venture, association, joint-stock company,
trust, unincorporated organization, government or any agency or political
subdivisions thereof or any Group comprised of two or more of the foregoing.

         "Priority Securities" is defined in Section 1.03(a).

         "Proceeding" is defined in Section 1.07(k).

         "Records" is defined in Section 1.04(a)(9).

         "Registrable Securities" means shares of Common Stock (including shares
or any other securities of the Company or any successor entity that are acquired
by way of a stock dividend or stock split or in connection with a
recapitalization, merger, consolidation or other reorganization of the Company
or similar transaction); provided, however, that a security shall cease to be a
Registrable Security if and when (i) a registration statement with respect to
such security becomes effective under the Securities Act and such security is
disposed of pursuant to such effective registration statement, (ii) such
security may be sold without restriction (including volume and manner of sale
restrictions) pursuant to Rule 144 (or any similar provision then in force)
under the Securities Act, (iii) such security is otherwise transferred (other
than to an Affiliate of the Holder), if a new certificate or other evidence of
ownership for such security not bearing a legend restricting further transfer
and not subject to any stop transfer order or other restrictions on transfer is
delivered by the Company and subsequent disposition of such security does not
require registration or qualification of such security under the Securities Act,
and the Company's outside counsel provides the Holder with an unqualified
opinion to such effect, or (iv) such security ceases to be outstanding.

         "Registration Expenses" means all reasonable fees and expenses incident
to the Company's performance of or compliance with this Agreement, consisting of
(i) all SEC, stock exchange, NASD and other registration, listing and filing
fees and expenses, (ii) fees and expenses of compliance with securities or blue
sky laws (including fees and disbursements of one counsel for the Holders who
are including Registrable Securities in a registration statement in connection
with blue sky qualification of such Registrable Securities and determination of
the eligibility of such Registrable Securities for investment under applicable
blue sky laws), (iii) rating agency fees, (iv) printing expenses, (v) messenger,
telephone and delivery expenses, (vi) fees, expenses and disbursements of
counsel for the Company, (vii) fees, expenses and disbursements of one counsel
selected by Holders of Registrable Securities to be sold in connection with the
relevant registration, (viii) fees, expenses and disbursements of the Company's
independent certified public accountants, (ix) costs of Securities Act liability
insurance for the Company and its officers and directors (if the Company so
desires such insurance), (x) fees and expenses of all other Persons retained by
the Company in connection with the

                                                                               4

consummation of the transactions contemplated by this Agreement and (xi) all
internal expenses of the Company incurred in connection with the consummation of
the transactions contemplated in this Agreement (including all salaries and
expenses of its officers and employees performing legal or accounting duties,
the expense of any annual audit and the fees and expenses incurred in listing
the Registrable Securities on any securities exchange); provided, however, that
"Registration Expenses" shall not include any fees, expenses or disbursements of
any Holder participating in the relevant registration or those of any
underwriters, selling brokers or similar professionals, including any discounts,
commissions or fees of such underwriters, selling brokers or similar
professionals and including any fees, expenses or disbursements of counsel to
any such Holder (except as provided above) or any such underwriter, selling
broker or professional.

         "Requesting Holder or Holders" is defined in Section 1.02(a).

         "SEC" means the United States Securities and Exchange Commission.

         "Securities Act" means the United States Securities Act of 1933, as
amended, together with the rules and regulations promulgated thereunder.

         "Seller" is defined in Section 1.06(a).

         "Shelf Registration" means a "shelf" registration statement on an
appropriate form pursuant to Rule 415 under the Securities Act (or any successor
rule that may be adopted by the SEC).

         "Underwriter" is defined in Section 1.06(a).

         SECTION 1.02. Certain Demand Registration Rights. (a) General. At any
time commencing 180 days following consummation of the Offering, upon the
written request (a "Demand Request") of one or both of the Demand Holders (the
"Requesting Holder or Holders") requesting that the Company effect the
registration under the Securities Act of Registrable Securities of such
Requesting Holder or Holders (or its or their Family Group members, if
applicable) representing at least the Minimum Demand Request (which request
shall specify the number of shares of Registrable Securities to be offered by
such Requesting Holder or Holders (and each of its or their Family Group
members, if applicable), subject to reduction to the extent provided herein, and
the intended method of disposition thereof), the Company shall use its
reasonable best efforts to effect, as expeditiously as possible, the
registration under the Securities Act of the Registrable Securities which the
Company has been so requested to register by the Requesting Holder or Holders,
which may include Registrable Securities held of record by the Family Group
members of such Requesting Holders to the extent such Family Group members and
the number of Registrable Securities requested to be sold thereby are specified
in the applicable Demand Request) all to the extent necessary to permit the
disposition (in accordance with the intended methods thereof as aforesaid) of
the Registrable Securities so to be registered; provided, however, that (A)
notwithstanding any other provision of this Agreement, the Company shall not be
required to file a registration statement relating to a Demand Request under
this Section 1.02 within a

                                                                               5

period of 180 days after the effective date of any other registration statement
of the Company with respect to Common Stock (i) where such registration
statement was filed pursuant to a Demand Request or (ii) in the case where
Demand Holders had piggyback rights pursuant to Section 1.03 of this Agreement,
where such Demand Holders were permitted to register and sell at least 50% of
the Registrable Securities requested to be included therein, (B) with respect to
any registration statement filed, or to be filed, pursuant to this Section 1.02,
if there is (i) material non-public information regarding the Company which the
Company's Board of Directors (the "Board") reasonably determines to be
significantly disadvantageous for the Company to disclose and which the Company
is not otherwise required to disclose at such time, (ii) there is a significant
business opportunity (including the acquisition or disposition of assets (other
than in the ordinary course of business) or any merger, consolidation, share
exchange, tender offer or other similar transaction) available to the Company
which the Board reasonably determines to be significantly disadvantageous for
the Company to disclose or (iii) there is any other event or condition of
similar significance to the Company that the Board reasonably determines to be
significantly disadvantageous for the Company to disclose and which the Company
is not otherwise required to disclose at such time (each, a "Disadvantageous
Condition"), and the Company shall furnish to the Requesting Holder or Holders a
resolution of the Board of Directors stating that the Company is deferring such
registration pursuant to this Section 1.02(a)(B) and setting forth in reasonable
detail the Disadvantageous Condition (giving due regard to any confidentiality
or competitive considerations), its reasons for such judgment and an
approximation of the anticipated delay, then the Company shall be entitled to
cause such registration statement to be withdrawn and the effectiveness of such
registration statement terminated (and, in the case of a Shelf Registration, the
Company shall not be required to file any amendment or supplement thereto
required to maintain the effectiveness of such Shelf Registration), or, in the
event no registration statement shall have been filed, shall be entitled not to
file any such registration statement, until the earlier of (x) 90 days following
the date such resolution was delivered to the Requesting Holder and (y) the date
such Disadvantageous Condition no longer exists (notice of which the Company
shall promptly deliver to the Requesting Holder or Holders) and upon receipt of
any such notice of a Disadvantageous Condition such Requesting Holder or Holders
of Registrable Securities selling securities pursuant to an effective
registration statement shall discontinue use of the prospectus contained in such
registration statement and, if so directed by the Company, each such Holder
shall deliver to the Company all copies, other than permanent file copies then
in such Holder's possession, of the prospectus then covering such Registrable
Securities current at the time of receipt of such notice, and, in the event no
registration statement shall have been filed, all drafts of the prospectus
covering such Registrable Securities, (C) the Company shall only be obligated to
effect a total of three demand registrations in each three year period and (D)
the Company shall not be required to, and shall not, allow a registration
statement relating to a registration request under this Section 1.02 to be
declared effective prior to the date that is 180 days after consummation of the
Offering. Each of the first five registrations under this Section 1.02 shall be
at the Company's own expense as provided in Section 1.02(c) (each such
registration, a "Company Funded Registration"). The Company shall be permitted
to satisfy its obligations under this

                                                                               6

Section 1.02 by amending (to the extent permitted by applicable law) any Shelf
Registration previously filed by the Company under the Securities Act so that
such Shelf Registration (as amended) shall permit the disposition of all of the
Registrable Securities for which a registration request under this Section 1.02
shall have been made. Notwithstanding the foregoing, the Company shall have no
obligation under this Agreement to file any Shelf Registration. The Requesting
Holder or Holders may, at any time prior to the effective date of the
registration statement relating to the relevant registration, revoke such
request, without liability, by providing a written notice to the Company
revoking such request. In the event that the Company shall give any notice of
the withdrawal of, or delay in filing, a registration statement contemplated by
clause (B) above, the Company shall, following the end of the period specified
in Section 1.02(a)(B), file the delayed registration statement with the SEC and
such registration statement shall be maintained effective for such time as may
be necessary so that the period of effectiveness of such new registration
statement, when aggregated with the period during which such initial
registration statement was effective, if any, shall be equal to the 180 days
that a registration statement is required to be kept effective pursuant to
Section 1.04(a)(2). The Company may not withdraw or suspend the effectiveness or
availability of a registration statement pursuant to this Section 1.02(a) for
more than 180 consecutive days. Within 20 days after receiving a notice
contemplated in clause (B) above, the Requesting Holder or Holders may withdraw
its or their Demand Request by giving written notice thereof to the Company. If
withdrawn, such Demand Request shall be deemed not to have been made for
purposes of this Agreement.

         (b) Expenses. The Company shall pay all Registration Expenses in
connection with each Company Funded Registration which is requested and becomes
effective, or which is withdrawn prior to effectiveness by the Company, pursuant
to this Section 1.02. The Company shall not be liable for Registration Expenses
in connection with a registration that shall not have become effective due to a
revocation by the Holder or Holders requesting such registration under this
Section 1.02 (other than pursuant to the last sentence of Section 1.02(a)),
unless the Holders collectively agree that such revoked registration counts as
one of the Company Funded Registrations which may be requested by such Holders
pursuant hereto. If such Holders have not agreed to count such revoked
registration as one of the three Company Funded Registrations, the obligation to
pay the Registration Expenses in connection with such further registration or
such revoked registration shall be due and payable by the Holders who
participated in such registration or who initially requested and revoked such
registration, and such expenses shall be borne by them in proportion to the
number of shares of Registrable Securities requested by them to be registered.
The Company's obligation to pay all Registration Expenses in connection with
each Company Funded Registration under this paragraph (b) shall not be reduced
by any such revoked registration unless the Holders so elect as provided above.

         (c) Effective Registration Statement. A registration requested pursuant
to this Section 1.02 shall not be deemed to have been effected unless the
registration statement relating thereto (i) has become effective under the
Securities Act and, except in the case of a Shelf Registration, any of the
Registrable Securities of the Requesting

                                                                               7

Holder or Holders (or its or their Family Group members, if applicable) included
in such registration have actually been sold thereunder and (ii) except in the
case of a Shelf Registration, has remained effective for a period of at least
that specified in Section 1.04(a)(2); provided, however, that if any effective
registration statement requested pursuant to this Section 1.02 is discontinued
in connection with a Disadvantageous Condition, such registration statement
shall be at the sole expense of the Company and shall not be included as one of
the Company Funded Registrations which may be requested pursuant to this Section
1.02; provided further, however, that if, after any registration statement
requested pursuant to this Section 1.02 becomes effective, such registration
statement is interfered with by any stop order, injunction or other order or
requirement of the SEC or other governmental agency or court solely due to the
actions or omissions to act of the Company, such registration statement shall be
at the sole expense of the Company and shall not be included as one of the
Company Funded Registrations which may be requested at the cost of the Company
pursuant to this Section 1.02.

         (d) Selection of Underwriters. The Requesting Holder or Holders shall
have the right to select the underwriters for each registration made pursuant to
Section 1.02(a), subject to the approval of the Company, which approval shall
not be unreasonably withheld.

         (e) Pro Rata Participation in Demand Registrations. If a requested
registration pursuant to this Section 1.02 involves an underwritten offering and
the managing underwriter or underwriters selected in accordance with Section
1.02(d) shall advise the Company that, in their good faith view (based primarily
upon prevailing market conditions), the number of securities requested to be
included in such registration (including securities which the Company requests
to be included) exceeds the largest number of securities which can be sold
without having a significant negative effect on the price at which such
securities can be sold in such offering, the Company shall include the following
Registrable Securities in the following order:

               (i) all Registrable Securities requested to be registered by the
         Requesting Holder or Holders pursuant to Section 1.02(a);

               (ii) to the extent that the number of Registrable Securities
         included in such registration pursuant to Section 1.02(e)(i) is less
         than the number of securities which the Company has been advised can be
         sold in such offering without having the significant negative effect on
         pricing referred to above, all other Registrable Securities requested
         to be included in such registration pursuant to Section 1.02(a) that
         are not otherwise included in Section 1.02(e)(i) (provided, however,
         that if the number of Registrable Securities included in such
         registration pursuant to Section 1.02(e)(i), together with all other
         Registrable Securities requested to be included in such registration
         pursuant to Section 1.02(a), exceeds the number which the Company has
         been advised can be sold in such offering without having the
         significant negative effect on pricing referred to above, the number of

                                                                               8

         such Registrable Securities included in such registration pursuant to
         this Section 1.02(e)(ii) shall be that number of securities which the
         Company has been advised it can sell in excess of the number of
         Registrable Securities being included in such registration pursuant to
         Section 1.02(e)(i), allocated pro rata among the other Holders referred
         to in Section 1.02(a) on the basis of the shares of Registrable
         Securities each such other Holder has requested to be included in such
         registration); and

               (iii) to the extent that the number of Registrable Securities
         included in such registration pursuant to Sections 1.02(e)(i) and
         1.02(e)(ii) is, in the aggregate, less than the number of securities
         which the Company has been advised can be sold in such offering without
         having the significant negative effect on pricing referred to above,
         any equity securities proposed to be sold by the Company (provided,
         however, that if the number of securities proposed to be sold by the
         Company, together with the number of Registrable Securities to be
         included in such registration pursuant to Sections 1.02(e)(i) and
         1.02(e)(ii), exceeds the number which the Company has been advised can
         be sold in such offering without having the negative effect referred to
         above, the number of such securities included in such registration
         pursuant to this Section 1.02(e)(iii) shall be that number of
         securities which the Company has been advised it can sell in excess of
         the number of Registrable Securities being included in such
         registration pursuant to Sections 1.02(e)(i) and 1.02(e)(ii)).

         (f) Additional Registration. If at least 75% of the Registrable
Securities requested to be registered by the Requesting Holder or Holders in one
of the Company Funded Registrations are not included in such registration, then
such Requesting Holder may request that the Company effect an additional
registration under the Securities Act of all or part of such Requesting Holder's
or Holders' Registrable Securities in accordance with the provisions of this
Section 1.02, and the Company shall effect, and pay the Registration Expenses in
connection with, such additional registration (in addition to the Company Funded
Registrations referred to in Section 1.02(a)) requested pursuant to this Section
1.02(f).

         (g) No-Cutbacks. Notwithstanding anything to the contrary in this
Agreement, and for the avoidance of doubt, with respect to any Requesting Holder
or Holders, all Registrable Securities of such Requesting Holder or Holders
requested to be included in a registration pursuant to Section 1.02(a) shall be
included in such registration (regardless of whether the underwriters agree that
inclusion of all such securities would have a significant negative effect on the
price at which such securities can be sold in such offering).

         SECTION 1.03. Certain Piggyback Registration Rights. (a) General. If
the Company at any time proposes to register any of its equity securities (the
"Priority Securities") under the Securities Act (other than a registration (i)
on Form S-8 or S-4 or

                                                                               9

any successor or similar forms, (ii) relating to equity securities issuable upon
exercise of employee stock or similar options or in connection with any employee
benefit or similar plan of the Company, (iii) in connection with an acquisition
by the Company of another entity or (iv) pursuant to a registration under
Section 1.02), whether or not for sale for its own account (but not for the
account of any Holder or Family Group member), in a manner which would permit
registration of Registrable Securities for sale to the public under the
Securities Act, it shall each such time, subject to the provisions of Section
1.03(b), give written notice to all Holders of record of Registrable Securities
of its intention to do so and of such Holders' rights under this Section 1.03 at
least 20 days prior to the anticipated filing date of the registration statement
relating to such registration. Such notice shall offer all such Holders the
opportunity to include in such registration statement such number of Registrable
Securities as each such Holder may request. Upon the written request of any such
Holder made within 15 days after the receipt of the Company's notice (which
request shall specify the number of Registrable Securities intended to be
disposed of by such Holder, subject to reduction as provided herein, and the
intended method of disposition thereof), the Company shall use its reasonable
best efforts to effect the registration under the Securities Act of all
Registrable Securities which the Company has been so requested to register by
the Holders thereof, to the extent required to permit the disposition (in
accordance with such intended methods thereof) of the Registrable Securities so
to be registered; provided, however, that (A) if such registration involves an
underwritten offering, all Holders of Registrable Securities requesting to be
included in the Company's registration must sell their Registrable Securities to
the underwriters selected by the Company on the same terms and conditions as
apply to the Company or the original selling holders for whose account the
registration has been made; provided, however, that in respect of any offering
under this Agreement (whether under Section 1.02 or this Section 1.03 or
otherwise), unless agreed otherwise by the Holder and the underwriters in the
underwriting agreement, no Holder or any of its Affiliates (other than, for the
avoidance of doubt, the Company) shall be required to directly or indirectly
make any representations or warranties to, or agreements with, the Company or
the underwriters (including agreements with respect to indemnification) other
than representations, warranties or agreements regarding such Holder or its
Affiliates, its ownership of and title to the Registrable Securities and its
intended method of distribution, and any liability of such Holder or its
Affiliates to any underwriter or other Person under such underwriting agreement
shall be limited to liability arising from breach of its representations and
warranties and shall be limited to an amount equal to the total price at which
the securities sold by such Holder or its Affiliates were offered to the public
(net of discounts and commissions paid by such Holder or its Affiliates in
connection with such underwritten offering) and (B) if, at any time after giving
written notice of its intention to register any securities pursuant to this
Section 1.03(a) and prior to the effective date of the registration statement
filed in connection with such registration, the Company shall determine for any
reason not to register such securities, the Company shall give written notice to
all Holders of Registrable Securities and, thereupon, shall be relieved of its
obligation to register any Registrable Securities in connection with such
registration (without prejudice, however, to rights of Holders under Section
1.02). If a registration pursuant to this Section 1.03(a) involves an
underwritten

                                                                              10

public offering, any Holder of Registrable Securities requesting to be included
in such registration may elect, in writing prior to the effective date of the
registration statement filed in connection with such registration, not to
register such securities in connection with such registration. No registration
effected under this Section 1.03 shall relieve the Company of its obligations to
effect registrations upon request under Section 1.02. The Company shall pay all
Registration Expenses in connection with each registration of Registrable
Securities pursuant to this Section 1.03. Nothing contained in this Section 1.03
shall create any liability on the part of the Company to the Holders if the
Company should for any reason decide not to file a registration statement for
which piggyback registration rights are available or withdraw such registration
statement subsequent to its filing, regardless of any action Holders may have
taken, whether as a result of the issuance by the Company of any notice
hereunder or otherwise.

         (b) Priority in Piggyback Registrations. If a registration pursuant to
this Section 1.03 involves an underwritten offering and the managing
underwriters shall advise the Company that, in their good faith view (based
primarily upon prevailing market conditions), the number of securities
(including all Registrable Securities) which the Company, the Holders and any
other Persons intend to include in such registration exceeds the largest number
of securities which can be sold without having a significant negative effect on
the price at which such securities can be sold in such offering, the Company
will include in such registration in the following order: (i) all the Priority
Securities (including any to be sold for the Company's own account), on a pro
rata basis, (ii) to the extent that the number of Priority Securities which the
Company proposes to sell for its own account pursuant to Section 1.03(a) is less
than the number of securities which the Company has been advised can be sold in
such offering without having the negative effect referred to above, all
Registrable Securities requested to be included in such registration by the
Holders pursuant to Section 1.03(a) (provided, however, that if the number of
Registrable Securities requested to be included in such registration by the
Holders pursuant to Section 1.03(a), together with the number of Priority
Securities to be included in such registration pursuant to clause (i) of this
Section 1.03(b), exceeds the number which the Company has been advised can be
sold in such offering without having the negative effect referred to above, the
number of such Registrable Securities requested to be included in such
registration by the Holders pursuant to Section 1.03(a) shall be allocated pro
rata among all such other requesting Holders on the basis of the number of
Registrable Securities each such other Holder has requested to be included in
such registration) and (iii) all other securities requested to be included in
such registration (provided, however, that if the number of all other securities
proposed to be included in such registration, together with the Priority
Securities and the Registrable Securities requested to be included in such
registration, exceeds the number which the Company has been advised can be sold
in such offering without having the negative effect referred to above, the
number of such other securities requested to be included in such registration
shall be allocated pro rata among all such other requesting holders on the basis
of the number of Registrable Securities each such other holder has requested to
be included in such registration).

                                                                              11

         SECTION 1.04. Registration Procedures. (a) If and whenever the Company
is required to use its reasonable best efforts to effect or cause the
registration under the Securities Act as provided in this Agreement of any
Registrable Securities, the Company shall, as expeditiously as possible:

         (1) use its reasonable best efforts to prepare and file, or cause to be
     prepared and filed as soon as practicable but in any event within 90 days
     of receipt of a request for registration, a registration statement on any
     form for which the Company then qualifies or which counsel for the Company
     shall deem appropriate, and which form shall be available for the sale of
     the Registrable Securities in accordance with the intended methods of
     distribution thereof, and use its reasonable best efforts to cause such
     registration statement to become and remain (for the period specified in
     paragraph (2) below) effective; provided, however, that at least 10 days
     before filing with the SEC a registration statement or prospectus and at
     least two days before filing with the SEC any amendments or supplements
     thereto, the Company shall (A) furnish to the underwriters, if any, and to
     one counsel selected by the Holder or Holders of the Registrable Securities
     covered by such registration statement copies of all such documents
     proposed to be filed, which documents shall be subject to the review and
     comments of the underwriters and such counsel (provided, however, that the
     determination to accept any such comments not relating to the underwriters
     or such selling stockholders shall be in the Company's sole discretion),
     and (B) notify each Holder of Registrable Securities covered by such
     registration statement of any stop order issued or threatened by the SEC
     and take all reasonable actions required to prevent the entry of such stop
     order or to remove it if entered;

         (2) prepare and file with the SEC such amendments and supplements to
     such registration statement and the prospectus used in connection therewith
     as may be necessary to keep such registration statement effective for a
     period of not less than 180 days (subject to blackouts upon the good faith
     declaration of any Disadvantageous Condition in accordance with Section
     1.02(a)) or such shorter period which shall terminate when all Registrable
     Securities covered by such registration statement have been sold (but not
     before the expiration of the 90-day period referred to in Section 4(3) of
     the Securities Act and Rule 174 thereunder, if applicable), and comply with
     the provisions of the Securities Act with respect to the disposition of all
     securities covered by such registration statement during such period in
     accordance with the intended methods of disposition by the sellers thereof
     set forth in such registration statement;

         (3) notify each Holder of Registrable Securities covered by such
     registration statement when such registration statement or any amendment
     thereto has been filed or becomes effective;

         (4) notify each Holder of Registrable Securities covered by such
     registration statement of any notice from the SEC that there will be a
     review of

                                                                              12

     such registration statement and promptly provide such Holders with a copy
     of any SEC comments received by the Company in connection therewith;

         (5) furnish, without charge, to each Holder and each underwriter, if
     any, of Registrable Securities covered by such registration statement such
     number of copies of such registration statement, each amendment and
     supplement thereto (including one conformed copy to each Holder and one
     signed copy to each managing underwriter and in each case including all
     exhibits thereto), and the prospectus included in such registration
     statement (including each preliminary prospectus), in conformity with the
     requirements of the Securities Act, and such other documents as such Holder
     may reasonably request in order to facilitate the disposition of the
     Registrable Securities owned by such Holder;

         (6) use its reasonable best efforts to register or qualify the
     Registrable Securities covered by such registration statement under such
     other securities or blue sky laws of such jurisdictions as any underwriter
     of Registrable Securities covered by such registration statement reasonably
     requests and do any and all other acts and things which may be reasonably
     necessary or advisable to enable each Holder and each underwriter to
     consummate the disposition in such jurisdictions of the Registrable
     Securities owned by such Holder; provided, however, that the Company shall
     not be required to (i) qualify generally to do business in any jurisdiction
     where it would not otherwise be required to qualify but for this paragraph
     (6), (ii) subject itself to taxation in any such jurisdiction or (iii)
     consent to general service of process in any such jurisdiction;

         (7) use its reasonable best efforts to cause the Registrable Securities
     covered by such registration statement to be registered with or approved by
     such other governmental agencies or authorities as may be necessary by
     virtue of the business and operations of the Company to enable the Holder
     or Holders thereof to consummate the disposition of such Registrable
     Securities;

         (8) immediately notify each of the managing underwriters, if any, and
     each Holder of Registrable Securities covered by such registration
     statement, at any time when a prospectus relating thereto is required to be
     delivered under the Securities Act of the happening of any event which
     comes to the Company's attention if as a result of such event the
     prospectus included in such registration statement contains an untrue
     statement of a material fact or omits to state any material fact required
     to be stated therein or necessary to make the statements therein not
     misleading, and the Company shall promptly prepare and file with the SEC
     such amendment or supplement to such registration statement or prospectus
     and furnish to such Holder a supplement or amendment to such prospectus so
     that, as thereafter delivered to the purchasers of such Registrable
     Securities, such prospectus shall not contain an untrue statement of a
     material fact or omit to state any material fact required to be stated
     therein or necessary to make the statements therein not misleading;

                                                                              13

         (9) use its reasonable best efforts to cause all Registrable Securities
     covered by such registration statement to be listed on the national
     securities exchange or national market interdealer quotation system on
     which the Common Stock is then listed, and enter into such customary
     agreements including a supplemental listing application and indemnification
     agreement in customary form (provided, however, that the applicable listing
     requirements are satisfied), and to provide a transfer agent and registrar
     for such Registrable Securities covered by such registration statement no
     later than the effective date of such registration statement;

         (10) in the case of an underwritten offering, enter into such customary
     agreements with the underwriters (including an underwriting agreement in
     customary form) and take all such other actions as the underwriters
     reasonably request in order to expedite or facilitate the disposition of
     such Registrable Securities, including customary indemnification;

         (11) make available for inspection by any Holder of Registrable
     Securities covered by such registration statement, any underwriter
     participating in any disposition pursuant to such registration statement,
     and any attorney, accountant or other agent retained by any such Holder or
     underwriter (collectively, the "Inspectors"), those financial and other
     records, organizational documents and properties of the Company and its
     controlled entities (collectively, "Records"), and cause the Company's and
     its controlled entities' officers, directors and employees to supply that
     information and respond to those inquiries reasonably requested by any such
     Inspector in connection with such registration statement, in each case
     under this paragraph (11) only to the extent reasonably necessary, as
     mutually determined by the Company and the underwriters or Holders, to
     enable such underwriters or Holders to conduct their due diligence
     investigation;

         (12) use its reasonable best efforts to furnish to any underwriter
     participating in any disposition pursuant to such registration statement a
     signed counterpart of a "cold comfort" letter from the Company's
     independent public accountants who have audited the Company's financial
     statements included or incorporated by reference in such registration
     statement (and prospectus included therein), in customary form and covering
     such matter of the type customarily covered by "cold comfort" letters
     delivered in connection with underwritten public offerings of securities
     (including with respect to events subsequent to the date of such financial
     statements) as the underwriters reasonably request (and dated the dates
     such comfort letters are customarily dated);

         (13) use its reasonable best efforts to furnish to each underwriter
     participating in any disposition pursuant to such registration statement a
     signed counterpart of an opinion and negative assurance letter of counsel
     from the Company's outside counsel in customary form and covering such
     matters of the

                                                                              14

     type customarily covered in opinions and negative assurance letters of
     counsel delivered in connection with underwritten public offerings of
     securities;

         (14) cooperate with each seller of Registrable Securities and each
     underwriter or agent participating in the disposition of such Registrable
     Securities and their respective counsel in connection with any filings with
     the NASD;

         (15) make available its officers, employees and personnel and otherwise
     provide reasonable assistance to the underwriters in their marketing of
     Registrable Securities as the underwriters shall reasonably request,
     including participation in "roadshow" presentations or such other selling
     efforts as the underwriters shall reasonably request; and

         (16) otherwise use its reasonable best efforts to comply with all
     applicable rules and regulations of the SEC, and make available or cause to
     be made available, as applicable, to the Holders of Registrable Securities
     sold under such registration statement, as soon as reasonably practicable,
     a consolidated earnings statement covering a period of at least 12 months
     (which earnings statement need not be audited), beginning with the first
     month after the effective date of the registration statement (as the term
     "effective date" is defined in Rule 158(c) under the Securities Act), which
     earnings statement shall satisfy the provisions of Section 11(a) of the
     Securities Act and Rule 158 thereunder.

         (b) It shall be a condition precedent to the obligation of the Company
to take any action pursuant to this Agreement in respect of the Registrable
Securities which are to be registered at the request of any Holder thereof that
such Holder shall furnish to the Company such information regarding the
Registrable Securities held by such Holder and the intended method of
disposition thereof as the Company shall reasonably request and as shall be
reasonably required in connection with the action taken by the Company.

         (c) Each Holder agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section
1.04(a)(8), such Holder shall discontinue disposition of Registrable Securities
pursuant to the registration statement covering such Registrable Securities
until such Holder's receipt of the copies of the supplemented or amended
prospectus contemplated by Section 1.04(a)(8), and, if so directed by the
Company, such Holder shall deliver to the Company (at the Company's expense) all
copies (including any and all drafts), other than permanent file copies, then in
such Holder's possession, of the prospectus covering such Registrable
Securities, current at the time of receipt of such notice. In the event the
Company shall give any such notice, the period referred to in Section 1.04(a)(2)
shall be extended by the greater of (i) 180 days and (ii) the number of days
during the period from and including the date of the giving of such notice
pursuant to Section 1.04(a)(8) to and including the date when each Holder of
Registrable Securities covered by such registration statement shall have
received the copies of the supplemented or amended prospectus contemplated by
Section 1.04(a)(8).

                                                                              15

         SECTION 1.05. Holdback Agreements. (a) If any registration of
Registrable Securities shall be in connection with an underwritten public
offering, each Holder of Registrable Securities agrees not to effect any public
sale or distribution, including any sale pursuant to Rule 144, or any successor
provision, under the Securities Act, of any Registrable Securities and not to
effect any such public sale or distribution of any other equity security of the
Company or of any security convertible into or exchangeable or exercisable for
any equity security of the Company or publicly announce an intention to do any
of the foregoing (in each case, other than as part of such underwritten public
offering) during the 10 days prior to, and during the 180-day period which
begins on, the effective date of such registration statement (which 180-day
period shall be tolled to the extent of any blackouts upon the good faith
declaration of any Disadvantageous Conditions in accordance with Section
1.02(a)) (except as part of such registration) and agrees further to enter into
a customary lock-up with the underwriters of such offering (not to exceed 180
days from the date of consummation of such offering); provided, however, that
such Holder of Registrable Securities has received written notice of such
registration at least 20 days prior to the anticipated beginning of the 10-day
period referred to above.

         (b) If any registration of Registrable Securities shall be in
connection with an underwritten public offering, the Company agrees not to
effect any public sale or distribution of any of its equity securities or of any
security convertible into or exchangeable or exercisable for any equity security
of the Company (other than any such sale or distribution of such securities in
connection with any merger or consolidation by the Company or any subsidiary of
the Company or the acquisition by the Company or a subsidiary of the Company of
the capital stock or substantially all the assets of any other Person or in
connection with an employee stock ownership or other benefit plan) during the 10
days prior to, and during the 180-day period which begins on, the effective date
of such registration statement (which 180-day period shall be tolled to the
extent of any blackouts upon the good faith declaration of any Disadvantageous
Conditions in accordance with Section 1.02(a)) (except as part of such
registration) and agrees further to enter into a customary lock-up with the
underwriters of such offering (not to exceed 180 days from the date of
consummation of such offering).

         (c) During the term of this Agreement, each certificate evidencing
Registrable Securities held of record or beneficially owned by a Holder shall
bear the following legend:

               "THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO AND
               TRANSFERABLE ONLY UPON COMPLIANCE WITH THE PROVISIONS OF A
               REGISTRATION RIGHTS AGREEMENT, DATED AS OF JUNE 27, 2005, AMONG
               CAPITAL MARITIME & TRADING CORP. AND THE STOCKHOLDERS PARTY
               THERETO. A COPY OF SUCH REGISTRATION RIGHTS AGREEMENT IS ON FILE
               AT THE OFFICE OF CAPITAL MARITIME & TRADING CORP. AT 3, IASSONOS
               STREET, PIRAEUS, ATHENS, 18537 GREECE."

                                                                              16

         (d) Upon a Person ceasing to have rights and obligations under this
Agreement pursuant to the terms hereof or upon termination of this Agreement,
such Person may surrender to the Company any certificates held of record by such
Person and bearing the legend set forth in Section 1.05(c), and upon surrender
of such certificates, the Company shall reissue such certificates without such
legend.

         SECTION 1.06. Indemnification and Contribution. (a) To the fullest
extent permitted by applicable law, the Company shall indemnify and hold
harmless each Person who participates as an underwriter (any such Person being
an "Underwriter"), each Holder of Registrable Securities to be sold in
connection with the relevant registration (each such Holder being a "Seller")
and their respective partners, directors, officers and employees and each
Person, if any, who controls any Seller or Underwriter within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act as follows:

               (i) against any and all losses, liabilities, claims, damages,
         judgments and reasonable expenses whatsoever, as incurred, arising out
         of any untrue statement or alleged untrue statement of a material fact
         contained in any registration statement (or any amendment thereto)
         relating to such registration, including all documents incorporated
         therein by reference, or the omission or alleged omission therefrom of
         a material fact required to be stated therein or necessary to make the
         statements therein not misleading or arising out of any untrue
         statement or alleged untrue statement of a material fact contained in
         any prospectus (or any amendment or supplement thereto) relating to
         such registration, including all documents incorporated therein by
         reference, or the omission or alleged omission therefrom of a material
         fact necessary in order to make the statements therein, in the light of
         the circumstances under which they were made, not misleading;

               (ii) against any and all losses, liabilities, claims, damages,
         judgments and reasonable expenses whatsoever, as incurred, to the
         extent of the aggregate amount paid in settlement of any litigation,
         investigation or proceeding by any governmental agency or body,
         commenced or threatened, or of any other claim whatsoever based upon
         any such untrue statement or omission, or any such alleged untrue
         statement or omission, if such settlement is effected with the written
         consent of the Company; and

               (iii) against any and all reasonable expense whatsoever, as
         incurred (including, subject to Section 1.06(c), fees and disbursements
         of counsel) incurred in investigating, preparing or defending against
         any litigation, investigation or proceeding by any governmental agency
         or body, commenced or threatened, in each case whether or not such
         Person

                                                                              17

         is a party, or any claim whatsoever based upon any such untrue
         statement or omission, or any such alleged untrue statement or
         omission, to the extent that any such expense is not paid under
         subparagraph (i) or (ii) above; provided, however, that this indemnity
         agreement does not apply to any Seller or Underwriter with respect to
         any loss, liability, claim, damage, judgment or expense to the extent
         arising out of any untrue statement or omission or alleged untrue
         statement or omission (A) made in reliance upon and in conformity with
         written information furnished to the Company by such Seller or
         Underwriter expressly for use in a registration statement (or any
         amendment thereto) or any related prospectus (or any amendment or
         supplement thereto) or (B) if such untrue statement or omission or
         alleged untrue statement or omission was corrected in an amended or
         supplemented registration statement or prospectus and the Company had
         furnished copies thereof to the Underwriter or Seller from which the
         Person asserting such loss, liability, claim, damage, judgment or
         expense purchased the securities that are the subject thereof on a
         timely basis prior to the date of sale by such Underwriter or Seller to
         such Person.

         (b) Each Seller shall severally indemnify and hold harmless the
Company, each Underwriter and the other Sellers, and each of their respective
partners, directors, officers and employees (including each director and officer
of the Company who signed the relevant registration statement) and each Person,
if any, who controls the Company, any Underwriter or any other Seller within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act,
against any and all losses, liabilities, claims, damages, judgments and expenses
described in the indemnity contained in Section 1.06(a) (provided, however, that
any settlement of the type described therein is effected with the written
consent of such Seller) as incurred, but only with respect to untrue statements
or omissions, or alleged untrue statements or omissions, made in a registration
statement or any related prospectus (or any amendment or supplement thereto) in
reliance upon and in conformity with written information furnished to the
Company by such Seller expressly for use in such registration statement (or any
amendment thereto) or such prospectus (or any amendment or supplement thereto);
provided, however, that an indemnifying Seller shall not be required to provide
indemnification in any amount in excess of the amount by which (x) the total
price at which the securities sold by such indemnifying Seller and its
affiliated indemnifying Sellers and distributed to the public were offered to
the public (net of discounts and commissions paid by the indemnifying Seller in
connection with such offering) exceeds (y) the amount of any damages which such
indemnifying Seller has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission. The Company shall
be entitled, to the extent customary, to receive indemnification and
contribution from underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, to the same
extent as provided above with respect to information so furnished in writing by
such Persons specifically for inclusion in any prospectus or registration
statement.

                                                                              18

         (c) Each indemnified party or parties shall give reasonably prompt
notice to each indemnifying party or parties of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder, but
failure so to notify an indemnifying party or parties shall not relieve it or
them from any liability which it or they may have under this indemnity
agreement, except to the extent that the indemnifying party is materially
prejudiced by such failure to give notice. If the indemnifying party or parties
so elects within a reasonable time after receipt of such notice, the
indemnifying party or parties may assume the defense of such action or
proceeding at such indemnifying party's or parties' expense with counsel chosen
by the indemnifying party or parties and approved by the indemnified party
defendant in such action or proceeding, which approval shall not be unreasonably
withheld; provided, however, that, if such indemnified party or parties
reasonably determine that a conflict of interest exists and that therefore it is
advisable for such indemnified party or parties to be represented by separate
counsel or that, upon advice of counsel, there may be legal defenses available
to it or them which are different from or in addition to those available to the
indemnifying party, then the indemnifying party or parties shall not be entitled
to assume such defense and the indemnified party or parties shall be entitled to
separate counsel (limited in each jurisdiction to one counsel for all
Underwriters and another counsel for all other indemnified parties under this
Agreement) at the indemnifying party's or parties' expense. The indemnified
party or parties shall have the right to engage separate counsel and participate
in the defense of any action, but, except as stated above, the fees and expenses
of such counsel shall be the expense of such indemnified party or parties. If
any indemnifying party or parties are not so entitled to assume the defense of
such action or do not assume such defense, after having received the notice
referred to in the first sentence of this paragraph, the indemnifying party or
parties will pay the reasonable fees and expenses of counsel for the indemnified
party or parties (limited in each jurisdiction to one counsel for all
Underwriters and another counsel for all other indemnified parties under this
Agreement). In such event, however, no indemnifying party or parties will be
liable for any settlement effected without the written consent of such
indemnifying party or parties (which consent shall not be unreasonably withheld
or delayed); provided, however, that if at any time the indemnified party or
parties shall have requested the indemnifying party or parties to reimburse the
indemnified party or parties for fees and expenses of counsel as contemplated by
this paragraph, the indemnifying party or parties shall be liable for any
settlement of any proceeding effected without the written consent of such
indemnifying party or parties if (x) such settlement is entered into more than
15 business days after receipt by such indemnifying party or parties of the
aforesaid request accompanied by supporting documents reasonably satisfactory to
the indemnifying party or parties and (y) such indemnifying party or parties
shall not have reimbursed the indemnified party or parties in accordance with
such request prior to the date of such settlement. No indemnifying party or
parties shall, without the prior written consent of the indemnified party or
parties, effect any settlement of any action in respect of which any indemnified
party or parties is a party, unless such settlement includes an unconditional
release of such indemnified party or parties from all liability on claims that
are the subject matter of such action. If an indemnifying party is entitled to
assume, and assumes, the defense of such action or proceeding in accordance with
this paragraph, such

                                                                              19

indemnifying party or parties shall not, except as otherwise provided in this
subsection (c), be liable for any fees and expenses of counsel for the
indemnified parties incurred thereafter in connection with such action or
proceeding.

         (d) (i) In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in this Section 1.06
is for any reason held to be unenforceable by the indemnified parties although
applicable in accordance with its terms in respect of any losses, liabilities,
claims, damages, judgments and expenses suffered by an indemnified party
referred to therein, each applicable indemnifying party, in lieu of indemnifying
such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, liabilities, claims, damages,
judgments and expenses in such proportion as is appropriate to reflect the
relative fault of the Company on the one hand and of the liable Sellers or
Underwriters (including, in each case, that of their respective officers,
directors, employees and agents), as the case may be, on the other in connection
with the statements or omissions which resulted in such losses, liabilities,
claims, damages, judgments or expenses, as well as any other relevant equitable
considerations. The relative fault of the Company on the one hand and of the
liable Sellers or Underwriters (including, in each case, that of their
respective officers, directors, employees and agents), as the case may be, on
the other shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the
Company, on the one hand, or by or on behalf of the Sellers or Underwriters, on
the other, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The amount
paid or payable by a party as a result of the losses, liabilities, claims,
damages, judgments and expenses referred to above shall be deemed to include,
subject to the limitations set forth in Section 1.06(c), any legal or other fees
or expenses reasonably incurred by such party in connection with investigating
or defending any action or claim.

               (ii) The Company and each Seller agree that it would not be just
         and equitable if contribution pursuant to this Section 1.06 were
         determined by pro rata allocation or by any other method of allocation
         which does not take account of the equitable considerations referred to
         in sub-paragraph (i) above. Notwithstanding anything in this Section
         1.06(d) to the contrary, in the case of distributions to the public, an
         indemnifying Seller shall not be required to contribute any amount in
         excess of the amount by which (A) the total price at which the
         securities sold by such indemnifying Seller and its affiliated
         indemnifying Sellers and distributed to the public were offered to the
         public (net of discounts and commissions paid by the indemnifying
         Seller in connection with such offering) exceeds (B) the amount of any
         damages which such indemnifying Seller has otherwise been required to
         pay by reason of such untrue or alleged untrue statement or omission or
         alleged omission. No Person guilty of fraudulent misrepresentation
         (within the meaning of Section 11(f) of the Securities

                                                                              20

         Act) shall be entitled to contribution from any Person who was not
         guilty of such fraudulent misrepresentation.

               (iii) For purposes of this Section, each Person, if any, who
         controls a Seller or an Underwriter within the meaning of Section 15 of
         the Securities Act or Section 20 of the Exchange Act shall have the
         same rights to contribution as such Seller or Underwriter; and each
         director of the Company, each officer of the Company who signed the
         relevant registration statement, and each Person, if any, who controls
         the Company within the meaning of Section 15 of the Securities Act or
         Section 20 of the Exchange Act, shall have the same rights to
         contribution as the Company.

         SECTION 1.07. Miscellaneous.

         (a) No Inconsistent Agreements. Neither the Company nor the Holders
have, as of the date hereof, entered into, nor shall they, on or after the date
hereof, enter into, any agreement with respect to the Registrable Securities
that is inconsistent with the rights granted to the Holders herein or otherwise
conflicts with the provisions hereof.

         (b) Complete Agreement. This Agreement shall constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and
shall supercede all prior agreements and understandings, whether written or
oral, between or among the parties with respect to such subject matter.

         (c) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, qualified, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, without the prior written consent of the Company and Holders
of a majority-in-interest of the Registrable Securities; provided, however, that
no amendment shall affect any rights or obligations of a Holder without the
consent of such Holder.

         (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail,
telex, telecopier or air courier guaranteeing overnight delivery:

               (i) if to a Holder, at the most current address indicated for
         such Holder in the Company's stock transfer records;

               (ii) if to the Company, at:

               Capital Maritime & Trading Corp.
               c/o Capital Ship Management Corp.
               3, Iassonos Street
               Piraeus, Athens 18537
               Greece
               Attention: Chief Financial Officer

                                                                              21

               Telecopier: +30 210 428 4286

               with a copy to:

               Gr. J. Timagenis Law Office
               57 Notara Street
               185 35 Piraeus, Athens, Greece
               Attention: John C. Palios
               Telecopier: +30 210 422 1388

         All such notices and communications shall be deemed to have been duly
given when received.

         The Holders or the Company by notice to the other parties may designate
additional or different addresses for subsequent notices or communications.

         (e) Successors and Assigns. This Agreement shall be binding on and
inure to the benefit of and be enforceable by the parties hereto and, with
respect to the Company, its successors and assigns.

         (f) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         (g) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (h) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York without giving effect to
applicable principles of conflicts of laws.

         (i) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
shall be enforceable to the fullest extent permitted by law.

         (j) No Third Party Beneficiaries. Except as provided in Section 1.06,
this Agreement is not intended to confer any rights or remedies hereunder upon,
and shall not be enforceable by, any Person other than the parties hereto.

         (k) Jurisdiction. Any suit, action or proceeding relating to this
Agreement (collectively, a "Proceeding") may be brought in the courts of the
State of New York and any court of the United States located in the Borough of
Manhattan in New York City and

                                                                              22

each parties hereto (a) hereby consents to the jurisdiction of such courts, (b)
irrevocably waives any objection which such party may have at any time to the
laying of venue of any Proceeding brought in any such court, waives any claim
that such Proceeding has been brought in an inconvenient forum and further
waives the right to object, with respect to such Proceeding, that such court
does not have jurisdiction over such party; (c) consents to the service of
process at the address set forth for notices in Section 1.07(d) herein;
provided, however, that such manner of service of process shall not preclude the
service of process in any other manner permitted under applicable law; and (d)
waives, to the fullest extent permitted by applicable law, any and all rights to
trial by jury in connection with any Proceeding.

         (l) Enforcement. (i) Each party hereto acknowledges that the other
parties would not have an adequate remedy at law for money damages in the event
that any of the covenants or agreements of any of the other parties to this
Agreement were not performed in accordance with its terms, and it is therefore
agreed that each party hereto, in addition to and without limiting any other
remedy or right it may have, will have the right to an injunction or other
equitable relief in any court of competent jurisdiction, enjoining any such
breach and enforcing specifically the terms and provisions hereof, and each
party hereto hereby waives any and all defenses it may have on the ground of
lack of jurisdiction or competence of the court to grant such an injunction or
other equitable relief.

         (ii) All rights, powers and remedies provided under this Agreement or
otherwise available in respect hereof at law or in equity shall be cumulative
and not alternative, and the exercise or beginning of the exercise of any
thereof by any party shall not preclude the simultaneous or later exercise of
any other such right, power or remedy by such party.

         IN WITNESS HEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the date first written above.

                                    CAPITAL MARITIME & TRADING CORP.,

                                       by
                                         ---------------------------------------
                                         Name:
                                         Title:

                                       BOEM MARITIME INVESTMENT CORP.,

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

                                       ADMIRALTY CORPORATION,

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

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