Document:

Exhibit 10.8

 

 

 

 

 

 

	1.	
        Date of Agreement

        31 MAY 2013
	THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT

CODE NAME: “SHIPMAN 98”

Part I

 

	2.	Owners
    (name, place of registered office and law of registry) (CI. 1)	3.	Managers
    (name, place of registered office and law of registry) (CI. 1)
	 	
        Name

        RAYMOND SHIPPING CO.
	 	
        Name

        Costamare Shipping Company S.A.

	 	
        Place of registered office

        Monrovia, Republic of Liberia
	 	
        Place of registered office

        Panama City, Republic of Panama

	 	
        Law of registry

        Republic of Liberia
	 	
        Law of registry

        Republic of Panama

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

        Upon delivery to Owners under Shipbuilding Contract
        dd 20.04.2011 between Owners and Sungdong Shipbuilding & Marine Engineering

        Co., Ltd. as amanded and/or supplemented

	5.	
        Crew Management (state “yes” or “no”
        as agreed)

(Cl. 3.1)

        YES
	6.	
        Technical Management (state “yes” or “no”
        as agreed) (Cl. 3.2)

        YES

	7.	
        Commercial Management (state “yes” or “no”
        as agreed) (Cl. 3.3)

        YES
	8.	
        Insurance Arrangements (state “yes” or
        “no” as agreed) (Cl. 3.4)

        YES

	9.	
        Accounting Services (state “yes” or “no”
        as agreed) (CI. 3.5)

        YES
	10.	
        Sale or purchase of the Vessel (state “yes”
        or “no” as agreed) (Cl. 3.6)

        YES

	11.	
        Provisions (state “yes” or “no”
        as agreed) (Cl. 3.7)

        YES
	12.	
        Bunkering (state “yes” or “no”
        as agreed) (Cl. 3.8)

        YES

	13.	
        Chartering Services Period (only to be filled in if
        “yes” stated in Box 7)

(Cl. 3.3(i))

        36 months (including any optional exentsions applicable)
        and with a gross daily rate (or time charter equivalent) of US$ 45,000
	14.	
        Owners’ Insurance (state alternative (i), (ii)
        or (iii) of Cl. 6.3)

        Clause 6.3(ii)

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

        See Clause 8.1
	16.	
        Severance Costs (state maximum amount) (Cl.
        8.4(ii))

        not applicable

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

        see Clause 17
	18.	
        Law and Arbitration (state alternative 19.1,
        19.2 or 19.3; if 19.3 place of arbitration must be stated) (Cl. 19)

        see Clause 19.1

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

        C/o Costamare Inc.

        60 Zephyrou Street & Syngrou Avenue

        Athens, Greece

        Telefax: +30 210 940 6454

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

        60 Zephyrou Street & Syngrou Avenue

        Athens, Greece

        Telefax: +30 210 940 9051

        Attention: Chief Executive Officer

	It
    is mutually agreed between the party stated in Box 2 and the party stated
    in Box 3 that this Agreement consisting of PART
    I and PART II as well as Annexes “A” (Details of Vessel), “B” (Details
    of Crew), “C” (Budget) and “D” (Associated vessels) attached hereto, shall be performed subject to the conditions contained herein. In the event of a conflict
    of conditions, the provisions of PART I and Annexes “A”, “B”, “C” and “D” shall prevail over those of PART II to the extent of such conflict but
    no further..
	Signature(s) (Owners)

        /s/ RAYMOND SHIPPING CO.

	Signature(s) (Managers)

        /s/ COSTAMARE SHIPPING COMPANY S.A.

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

    	 

    	

    

ANNEX
“A” (DETAILS OF VESSEL OR VESSELS) TO
 THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “SHIPMAN 98”

 

Date
of Agreement:
 31 MAY 2013
 Name of Vessel(s):

VALUE
 Particulars of Vessel(s):
 Flag: Malta
 IMO NO.: 9628166
 GT: 95,390
 NT:
56,260

 

 

This
document is a computer generated SHIPMAN 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be
clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible,
the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense
as a result of discrepancies between the original BIMCO approved document and this computer generated document.

    	 

    	

    

ANNEX
“B” (DETAILS OF CREW) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “SHIPMAN 98”

Date of Agreement:

Details of Crew:

	Numbers	 	Rank	 	Nationality	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO
approved document and this computer generated document.

    	 

    	

    
ANNEX
“C” (BUDGET) TO
 THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
 STANDARD SHIP MANAGEMENT AGREEMENT -
CODE NAME: “SHIPMAN 98”

 

Date
of Agreement:

 

Managers’ Budget for the first year with effect from the Commencement Date of this Agreement:

 

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

    	 

    	

    

ANNEX
“D” (ASSOCIATED VESSELS) TO

THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

STANDARD SHIP MANAGEMENT AGREEMENT - CODE NAME: “SHIPMAN 98”

NOTE: PARTIES SHOULD BE AWARE THAT BY
COMPLETING THIS ANNEX “D” THEY WILL BE SUBJECT TO THE PROVISIONS OF SUB-CLAUSE 18.1(i) OF THIS AGREEMENT.

Date of Agreement:

Details of Associated Vessels:

 

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO
approved document and this computer generated document.

    	 

    	

    

PART II

“SHIPMAN 98” Standard Ship Management
Agreement

 

	1.	Definitions	1
	 	In this Agreement save where the context otherwise requires,	2
	 	the following words and expressions shall have the meanings	3
	 	hereby assigned to them.	4
	 	 	 
	 	“Owners”
    means the party identified in Box 2.	5
	 	“Managers”
    means the party identified in Box 3.	6
	 	“Vessel” means the vessel or vessels details of which are
    set	7
	 	out in Annex “A” attached hereto.	8
	 	“Business Day” shall have the same meaning
    as ascribed	 
	 	thereto in Section 1.1 of the Group Management Agreement.	 
	 	“Crew” means the Master, officers and ratings employed
    on the	9
	 	Vessel from time to timeof
    the numbers,	 
	 	rank and nationality specified in Annex “B”
    attached hereto.	10
	 	“Crew Support Costs” means all
    expenses of a general nature	11
	 	which are not particularly referable to any
    individual vessel for	12
	 	the time being managed by the Managers and
    which are incurred	13
	 	by the Managers for the purpose of providing
    an efficient and	14
	 	economic management service and, without prejudice
    to the	15
	 	generality of the foregoing, shall include
    the cost of crew standby	16
	 	pay, training schemes for officers and ratings,
    cadet training	17
	 	schemes, sick pay, study pay, recruitment
    and interviews.	18
	 	“Related Manager” shall have the
    meaning as ascribed thereto in 

Section 1.1 of the Group Management Agreement.	19
	 	“Severance Costs” means the costs which the employers are	 
	 	legally obliged to pay to or in respect of the Crew as a result of	20
	 	the early termination of any employment contract for service on	21
	 	the Vessel.	22
	 	“Crew Insurances” means insurances against crew risks which	23
	 	shall include but not be limited to death, sickness, repatriation,	24
	 	injury, shipwreck unemployment indemnity and loss of personal	25
	 	effects.	26
	 	“Group Management Agreement” means the
    agreement dated 3	 
	 	November 2010 made between the Parent and the Managers.	 
	 	“Management Services” means the services specified in sub-	27
	 	clauses 3.1 to 3.8 as indicated affirmatively in Boxes 5 to 12.	28
	 	“ISM Code” means the International Management Code for the	29
	 	Safe Operation of Ships and for Pollution Prevention as adopted	30
	 	by the International Maritime Organization (IMO) by resolution	31
	 	A.741(18) or any subsequent amendment thereto.	32
	 	“ISPS Code” means the International
    Ship and Port Facility	 
	 	Security Code constituted pursuant to resolution
    A.924(22) of	 
	 	the International Maritime Organisation now set
    out in Chapter	 
	 	XI-2 of the International Convention for the Safety
    of Life at Sea	 
	 	(SOLAS) 1974 (as amended) and the mandatory ISPS
    Code as	 
	 	adopted by a Diplomatic Conference of the International	 
	 	Maritime Organisation on Maritime Security in December
    2002	 
	 	and includes any amendments or extensions to it
    and any	 
	 	regulation issued pursuant to it.	 
	 	“Parent” means Costamare Inc. of Trust
    Company Complex,	 
	 	Ajeltake Road, Ajeltake Island, Majuro, Republic
    of the Marshall	 
	 	Islands MH96960.	 
	 	“STCW 95” means the International Convention on Standards	33
	 	of Training, Certification and Watchkeeping for Seafarers, 1978,	34
	 	as amended in 1995 or any subsequent amendment thereto.	35
	 	 	 
	2.	Appointment of Managers	36
	 	With effect from the day and year stated in Box 4 and continuing	37
	 	unless and until terminated provided herein, the Owners	38
	 	hereby appoint the Managers as the technical and
    commercial 

managers of the Vessel and the Managers hereby agree	39
	 	to act as the technical and commercial Mmanagers
    of the Vessel.	40
	 	 	 
	3.	Basis of Agreement	41
	 	Subject to the terms and conditions herein provided, during the	42
	 	period of this Agreement, the Managers shall carry out	43
	 	Management Services in respect of the Vessel as agents for	44
	 	and on behalf of the Owners. Subject to Section
    4.6 of the Group 

Management Agreement, Tthe
    Managers shall have authority	45
	 	to take such actions as they may from time to time in their absolute	46
	 	discretion consider to be necessary to enable them to perform	47
	 	this Agreement in accordance with sound ship management	48

	 	practice.	49
	 	 	 
	 	3.1	Crew Management	50
	 	(only applicable if agreed according to Box 5)	51
	 	The Managers shall provide suitably qualified Crew for the Vessel	52
	 	as required by the Owners in accordance with the STCW 95	53
	 	requirements, provision of which includes but is not limited to	54
	 	the following functions:	55
	 	(i)	selecting and engaging the Vessel’s Crew, including payroll	56
	 	 	arrangements, pension administration, and insurances for	57
	 	 	the Crew other than those mentioned in Clause 6;	58
	 	(ii)	ensuring that the applicable requirements of the law of the	59
	 	 	flag of the Vessel are satisfied in respect of manning levels,	60
	 	 	rank, qualification and certification of the Crew and	61
	 	 	employment regulations including Crew’s tax, social	62
	 	 	insurance, discipline and other requirements;	63
	 	(iii) 	ensuring that all members of the Crew have passed a medical	64
	 	 	examination with a qualified doctor certifying that they are fit	65
	 	 	for the duties for which they are engaged and are in possession	66
	 	 	of valid medical certificates issued in accordance with	67
	 	 	appropriate flag State requirements. In the absence of	68
	 	 	applicable flag State requirements the medical certificate shall	69
	 	 	be dated not more than three months prior to the respective	70
	 	 	Crew members leaving their country of domicile and	71
	 	 	maintained for the duration of their service on board the Vessel;	72
	 	(iv)	ensuring that the Crew shall have a command of the English	73
	 	 	language of a sufficient standard to enable them to perform	74
	 	 	their duties safely;	75
	 	(v)	arranging transportation of the Crew, including repatriation,	76
	 	board and lodging as and when required at rates and types of	 
	 	accommodations as customary in the industry;	 
	 	(vi)	training of the Crew and supervising their efficiency;	77
	 	(vii) 	keeping and maintaining full and complete records of any	78
	 	labor agreements which may be entered into with the Crew and,	 
	 	if applicable, conducting union negotiations;	 
	 	(viii) 	operating the Managers’ drug and alcohol policy unless	79
	 	 	otherwise agreed in writing.	80
	 	 	 
	 	3.2	Technical Management	81
	 	(only applicable if agreed according to Box 6)	82
	 	The Managers shall provide technical management which	83
	 	includes, but is not limited to, the following functions:	84
	 	(i)	provision of competent personnel to supervise the	85
	 	 	maintenance and general efficiency of the Vessel;	86
	 	(ii)	arrangement and supervision of dry dockings, repairs,	87
	 	 	alterations and the upkeep of the Vessel to the standards	88
	 	 	required by the Owners provided that the Managers shall	89
	 	 	be entitled to incur the necessary expenditure to ensure	90
	 	 	that the Vessel will comply with the law of the flag of the	91
	 	 	Vessel and of the places where she trades, and all	92
	 	 	requirements and recommendations of the classification	93
	 	 	society;	94
	 	(iii)	arrangement of the supply of necessary stores, spares and	95
	 	 	lubricating oil;	96
	 	(iv)	appointment of surveyors and technical consultants as the	97
	 	 	Managers may consider from time to time to be necessary;	98
	 	(v)	development, implementation and maintenance of a Safety	99
	 	 	Management System (SMS) in accordance with the ISM	100
	 	 	Code (see sub-clauses 4.2 and 5.3) and
of a security system in	101
	 	 	accordance with the ISPS Code;

(vi) handling any claims against the builder of the Vessel 

arising out of the relevant shipbuilding contract, if 

applicable; and

(vii) on request by the Owners, providing the Owners with a 

copy of any inspection report, survey, valuation or any other 

similar report prepared by any shipbrokers, surveyors, the 

Class etc..	 
	 	 	 
	 	3.3	Commercial Management	102
	 	(only applicable if agreed according to Box 7)	103
	 	The Managers shall provide the commercial operation of the	104

 

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO
approved document and this computer generated document.

    	 

    	

    

 

PART II

“SHIPMAN 98” Standard Ship Management
Agreement

 

	 	Vessel, as required by the Owners, which includes, but is
    not	105
	 	limited to, the following functions:	106
	 	(i)	providing chartering services in accordance with the Owners’	107
	 	 	instructions which include, but are not limited to, seeking	108
	 	 	and negotiating employment for the Vessel and the conclusion	109
	 	 	(including the execution thereof) of charter parties or other	110
	 	 	contracts relating to the employment of the Vessel, which on

    a voyage, time, demise, contract of affreightment or other

    basis.  If such a	111
	 	 	contract exceeds the period and is for a rate that is less than

    the rate, in either case, stated in Box 13, consent thereto 	112
	 	 	in writing shall be first obtained from the Owners.	113
	 	(ii)	arranging of the proper payment to Owners or their nominees	114
	 	 	of all hire and/or freight revenues or other moneys of	115
	 	 	whatsoever nature to which Owners may be entitled arising	116
	 	 	out of the employment of or otherwise in connection with the	117
	 	 	Vessel;.	118
	 	(iii)	providing voyage estimates and accounts and calculating of	119
	 	 	hire, freights, demurrage and/or despatch moneys due from	120
	 	 	or due to the charterers of the Vessel;	121
	 	(iv)	issuing to the Crew of appropriate voyage instructions and	122
	 	monitoring voyage performance;	 
	 	(v)	appointing agents;	123
	 	(vi)	appointing stevedores;	124
	 	(vii)	arranging surveys associated with the commercial operation	125
	 	 	of the Vessel;	126
	 	 	(viii) carrying out the necessary communications
        with the

        shippers, charterers and others involved with the receiving

        and handling of the Vessel at the relevant loading and

        discharging ports, including sending any notices required

        under the terms of the Vessel’s employment at the time;

        (ix) invoicing on behalf of the Owners
        all freights. hires,

        demurrages, outgoing claims, refund of taxes, balances of

        disbursements, statements of account and other sums due

        to the Owners and account receivables arising from the

        operation of the Vessel and, upon the request of the Owners,

        issuing releases on behalf of the Owners upon receipt of

        payment or settlement of any Such amounts;

        (x) preparing off-hire statements andlor
        hire statements;

        (xi) procuring and arranging for port
        entrance and clearance,

        pilots, consular approvals and other services necessary for

        the management and safe operation of the Vessel; and

        (xii) reporting to the
        Owners of any major casualties,

        damages received or caused by the Vessel or any major

        release or discharge of oil or other hazardous material not in

        compliance with any laws.
	 
	 	3.4	Insurance Arrangements’	127
	 	(only applicable if agreed according to Box 8)	128
	 	The Managers shall arrange insurances in accordance with	129
	 	Clause 6, on such terms and conditions as the Owners shall	130
	 	have instructed or agreed, in particular regarding underwriters,

    conditions,	131
	 	insured values, deductibles and franchises.	132
	 	 	 	 
	 	3.5	Accounting Services	133
	 	(only applicable if agreed according to Box 9)	134
	 	Without prejudice to the relevant provisions of the Group	135
	 	Management Agreement and, in particular, but without	 
	 	limitation, Section 4.11 and Section 10.6 thereof, Tthe
    Managers

    shall:	 
	 	(i)	establish an accounting system which meets the	136
	 	 	requirements of the Owners and provide regular accounting	137
	 	 	services, supply regular reports and records,	138
	 	(ii)	maintain the records of all costs and expenditure incurred	139
	 	 	as well as data necessary or proper for the settlement of	140
	 	 	accounts between the parties.	141
	 	 	 	 
	 	3.6	Sale or Purchase of the Vessel	142
	 	(only applicable if agreed according to Box 10)	143
	 	The Managers shall, in accordance with the Owners’ instructions,	144
	 	supervise the sale or purchase of the Vessel, including the	145
	 	performance of any sale or purchase agreement, but not	146

	 	negotiation of the same. The Managers shall, on the request of
    the
     Owners, either directly or by employing the services of a

    broker, endeavor to procure a buyer for the Vessel at a price
     and
    otherwise on terms acceptable to the Owners.	147
	 	3.7	Provisions (only applicable if agreed
    according to Box 11)	148
	 	The Managers shall arrange for the supply of provisions.	149
	 	 	 	 
	 	3.8	Bunkering (only applicable if agreed
    according to Box 12)	150
	 	The Managers shall arrange for the provision of bunker fuel of the	151
	 	quality specified by the Owners as required for the Vessel’s trade.	152
	 	 	 	 
	4.	Managers’ Obligations	153
	 	4.1	Without prejudice to the relevant provisions of the
    Group	154
	 	Management Agreement and in particular, but without limitation

    to the foregoing, the provisions of Section 2.3, Section 4.1,

    Section 4.5 and Section 4.7 thereof.  Tthe
    Managers undertake to

    use their best endeavours  commercially
    reasonable efforts to	 
	 	provide the agreed Management Services as agents for and on	155
	 	behalf of the Owners in accordance with sound ship management	156
	 	practice and to protect and promote the interests of the Owners in	157
	 	all matters relating to the provision of services hereunder.	158
	 	Provided, however, that the Managers in the performance of their	159
	 	management responsibilities under this Agreement shall be entitled	160
	 	to have regard to their overall responsibility in relation to all vessels	161
	 	as may from time to time be entrusted to their management and	162
	 	in particular, but without prejudice to the generality of the foregoing,	163
	 	the Managers shall be entitled to allocate available supplies,	164
	 	manpower and services in such manner as in the prevailing	165
	 	circumstances the Managers in their absolute discretion consider	166
	 	to be fair and reasonable.	167
	 	4.2	Where the Managers are providing Technical
    Management	168
	 	in accordance with sub-clause 3.2, they shall procure that the	169
	 	requirements of the law of the flag of the Vessel are satisfied and	170
	 	they shall in particular be deemed to be the “Company” as defined	171
	 	by the ISM Code, assuming the responsibility for the operation of	172
	 	the Vessel and taking over the duties and responsibilities imposed	173
	 	by the ISM Code and/or the ISPS Code when applicable.	174
	 	 	 	 
	5.	Owners’ Obligations	175
	 	5.1	Without prejudice to the relevant provisions of the
    Group	176
	 	Management Agreement, Tthe
    Owners shall pay all sums due to the

    Managers punctually	 
	 	in accordance with the terms of this Agreement.	177
	 	5.2	Where the Managers are providing Technical
    Management	178
	 	in accordance with sub-clause 3.2, the Owners shall:	179
	 	(i)	procure that all officers and ratings supplied by them or on	180
	 	 	their behalf comply with the requirements of STCW 95;	181
	 	(ii)	instruct such officers and ratings to obey all reasonable orders	182
	 	 	of the Managers in connection with the operation of the	183
	 	 	Managers’ safety management system.	184
	 	5.3	Where the Managers are not providing Technical
    Management	185
	 	in accordance with sub-clause 3.2, the Owners shall procure that	186
	 	the requirements of the law of the flag of the Vessel are satisfied	187
	 	and that they, or such other entity as may be appointed by them	188
	 	and identified to the Managers, shall be deemed to be the	189
	 	“Company” as defined by the ISM Code assuming the responsibility	190
	 	for the operation of the Vessel and taking over the duties and	191
	 	responsibilities imposed by the ISM Code when applicable.	192
	 	 	 	 
	 	 	 	 
	6	Insurance Policies	193
	 	The Owners shall procure, whether by instructing the Managers	194
	 	under sub-clause 3.4 or otherwise,
    that throughout the period of	195
	 	this Agreement:	196
	 	6.1	at the Owners’ expense, the Vessel
    is insured for not less	197
	 	than her sound market value or entered for her full gross tonnage,	198
	 	as the case may be for:	199
	 	(i)	usual hull and machinery marine risks (including crew	200
	 	 	negligence) and excess liabilities;	201
	 	(ii)	protection and indemnity risks (including pollution risks and	202

 

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO
approved document and this computer generated document.

    	 

    		 

    
PART II

“SHIPMAN 98” Standard Ship Management Agreement

 

	 	 	Crew Insurances); and	203
	 	(iii)	war risks (including protection and indemnity and crew risks)	204
	 	and 
 (iv) any other insurance that
    the Owners determine or the 

    Managers advise them in writing that, in either case, it is

    prudent or, as the case may be, appropriate on the basis of 

    prevailing market practices to be obtained in respect of the 

    Vessel, its freight/hire or any third party liabilities,	 
	 	 	 	 
	 	in each case in accordance with the best practice of prudent owners	205
	 	of	 
	 	vessels of a similar type to the Vessel, with first class insurance	206
	 	companies, underwriters or associations (“the Owners’	207
	 	Insurances”);	208
	 	6.2	all premiums and calls and applicable deductibles and/or	209
	 	franchises on the Owners’ Insurances are paid	 
	 	promptly by their due date,	210
	 	6.3	the Owners’ Insurances name the
Managers and, subject	211
	 	to underwriters’ agreement, any third party designated by the	212
	 	Managers as a joint assured, with full cover, with the Owners	213
	 	obtaining cover in respect of each of the insurances specified in	214
	 	sub-clause 6.1:	215
	 	(i)	on terms whereby the Managers and any such third party	216
	 	 	are liable in respect of premiums or calls arising in connection	217
	 	 	with the Owners’ Insurances; or	218
	 	(ii)	if reasonably obtainable, on terms such that neither the	219
	 	 	Managers nor any such third party shall be under any	220
	 	 	liability in respect of premiums or calls arising in connection	221
	 	 	with the Owners’ Insurances; or	222
	 	(iii)	on such other terms as may be agreed in writing.	223
	 	Indicate alternative (i), (ii) or (iii) in Box 14. If Box
    14 is left	224
	 	blank then (i) applies.	225
	 	6.4	written evidence is provided, to the
reasonable satisfaction	226
	 	of the Managers, of their compliance with their obligations under	227
	 	Clause 6 within a reasonable time of the commencement of	228
	 	the Agreement, and of each renewal date and, if specifically	229
	 	requested, of each payment date of the Owners’ Insurances.	230
	 	 	 	 
	7.	Income Collected and Expenses Paid on Behalf of Owners	231
	 	7.1	Without prejudice to the provisions of Section
10.7 of the 	232
	 	Group Management Agreement, Aall
    moneys collected by the	 
	 	Managers under the terms of	 
	 	this Agreement (other than moneys payable by the Owners to	233
	 	the Managers) and any interest thereon shall be held to the	234
	 	credit of the Owners in a separate bank account.	235
	 	7.2	Without prejudice to the provisions of Section
9.7, Section 	236
	 	10.5 and Section 10.8 of the Group Management Agreement,
    Aall	 
	 	expenses incurred by the Managers under the terms	 
	 	of this Agreement on behalf of the Owners (including expenses	237
	 	as provided in Clause 8) may be debited against the Owners	238
	 	in the account referred to under sub-clause 7.1 but shall in any	239
	 	event remain payable by the Owners to the Managers on	240
	 	demand. For the avoidance of doubt, the Managers can make
 such
    demand on the Owners as well as on the Parent as
 provided in Section 10.5 of the
    Group Management Agreement. 

    Furthemore and without prejudice to the generality of the 

    provisions of this Clause 7, the Managers shall, subject to being 

    placed in funds by the Owners or the Parent, arrange for the 

    payment of all ordinary charges incurred in connection with the 

    Management Services, including, but not limited to, all canal
 tolls,
    port charges, any amounts due to any governmental 

    authority with respect to the Crew and all duties and taxes in

    respect of the Vessel, the cargo, hire or freight (whether levied 

    against the Owners, the Parent or the Vessel), insurance 

    premiums, advances of balances of disbursements, invoices for 

    bunkers, stores, spares, provisions, repairs and any other 

    material andror service in respect of the Vessel.	241
	8.	Management Fee	242
	 	8.1	The Owners shall pay to the Managers
for their services	243
	 	as Managers under this Agreement an annual
    the management	244
	 	fees as stated in Box 15 Section
    9.1(a) and Section 9(b) of the 

    Group Management Agreement which shall be payable by
    equal	245
	 	monthly instalments in advance, the first instalment being monthly	246

	 	in accordance with the provision of Article IX of the Group 

    Management Agreement.
  payable on the commencement
    of this Agreement (see Clause	247
	 	2 and Box 4) and subsequent installments
    being payable every	248
	 	month.	249
	 	8.2	The
management fee shall be subject to an annual review	250
	 	in accordance with the provisions of Sections 9.2 and 9.3 of the 

    Group Management Agreementon the anniversary date
    of the 
 Agreement and the proposed	251
	 	fee shall be presented in the annual budget referred to in sub-	252
	 	clause 9.1.	253
	 	8.3	The
Managersshall, at no extra cost to the Owners,
provide	254
	 	their own office accommodation, office staff, facilities and	255
	 	stationery. Without limiting the generality of
    Clause 7 the Owners	256
	 	shall reimburse the Managers for postage and communication	257
	 	expenses, travelling expenses, and other out of pocket	258
	 	expenses properly incurred by the Managers in pursuance of	259
	 	the Management Services.	260
	 	8.4	The
provisions of Section 9.4, Section 9.5, Section 9.6 and 	261
	 	Section 9.7 of the Group Management Agreement shall be	 
	 	deemed as incorporated herein mutatis mutandis. 	 
	 	8.5	The
Managers have the right to demand the payment of any	 
	 	of the management fees and expenses payable under this

    Agreement either from the Parent or the Owners. Payment of

    any such fees or expenses or any part thereof by either the

    Parent or the Owners shall prevent the Managers from making a

    claim on the other person for the same amount to the extent 

    that the same has been already paid to the Managers.	 
	 	In the event of the appointment of the Managers being	 
	 	terminated by the Owners or the Managers in accordance with	262
	 	the provisions of Clauses 17 and 18 other than by reason of	263
	 	default by the Managers, or if the Vessel is lost, sold or otherwise.	264
	 	Disposed of, the “management fee” payable to the Managers	265
	 	According to the provisions of sub-clause 8.1, shall
    continue to	266
	 	be payable for a further period of three calendar months as	267
	 	from the termination date. In addition, provided that the	268
	 	Managers provide Crew for the Vessel in accordance with sub-	269
	 	clause-3,1:	270
	 	(i)	the
Owners shall continue to pay Crew Support Costs during	271
	 	 	the
said further period of three calendar months and	272
	 	(ii)	the
Owners shall pay an equitable proportion of any	273
	 	 	Severance
Costs which may materialize, not exceeding	274
	 	 	the
amount stated in Box 16.	275
	 	8.5	If
the Owners decide to lay up the Vessel whilst this	276
	 	Agreement remains in force and such lay up lasts for more	277
	 	than three months, an appropriate reduction of the management	278
	 	fee for the period exceeding three months until one month	279
	 	before the Vessel is again put into service shall be mutually	280
	 	agreed between the parties.	281
	 	8.6	Unless
otherwise agreed in writing all discounts and	282
	 	commissions obtained by the Managers in the course of the	283
	 	management of the Vessel shall be credited to the Owners.	284
	 	 	 	 
	9.	Budgets and Management of Funds	285
	 	9.1	The
Owners are aware that the Managers will be preparing	286
	 	budgets in connection with, inter alia, the provision of the

    Management Services which the Managers will be submitting for

    approval to the Parent in accordance with the provisions of

    Article X of the Group Management Agreement. The
    Managers

    shall present to the Owners annually a	 
	 	budget for the following twelve months in such form as the	287
	 	Owners require. The budget for the first year hereof is set out	288
	 	in Annex “C” hereto. Subsequent annual
    budgets shall be	289
	 	prepared by the Managers and submitted to the Owners not	290
	 	less than three months before the anniversary date of the	291
	 	commencement of this Agreement (see Clause 2 and
    Box 4).	292
	 	9.2	The
Owners shall indicate to the Managers their acceptance	293
	 	and approval of the annual budget within one month of	294
	 	presentation and in the absence of any such indication the	295
	 	Managers shall be entitled to assume that the Owners have	296
	 	accepted the proposed budget.	297
	 	9.3	Following
the agreement of the budget, the Managers shall	298

 

This document is a computer generated SHIPMAN 98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO approved document and this computer generated document.

    	 

    	

    

PART II

“SHIPMAN 98” Standard Ship Management
Agreement

 

	 	prepare and present to the Owners their estimate of the working	299
	 	capital requirement of the Vessel and the Managers shall each	300
	 	month up date this estimate. Based thereon, Without
    prejudice to 

    the right of the Managers to ask for funds in relation to the

 Management Services directly from
    the Parent in accordance 

    with the relevant provisions of the Group Management 

    Agreement, the Managers shall	301
	 	each month request the Owners in writing for the funds required	302
	 	to run the Vessel for the ensuing month, including the payment	303
	 	of any occasional or extraordinary item of expenditure, such as	304
	 	emergency repair costs, additional insurance premiums, bunkers	305
	 	or provisions. Such funds shall be received by the Managers	306
	 	within ten running days after the receipt by the Owners of the	307
	 	Managers’ written request and shall be held to the credit of the	308
	 	Owners in a separate bank account in the
    name of the Managers

    or, if requested by the Managers, in the name of the Owners.	309
	 	9.4	The Managers shall produce a comparison between	310
	 	budgeted and actual income and expenditure of the Vessel in	311
	 	such form as required by the Owners monthly or at such other	312
	 	intervals as mutually agreed.	313
	 	9.5	Notwithstanding anything contained herein to the contrary,	314
	 	the Managers shall in no circumstances be required to use or	315
	 	commit their own funds to finance the provision of the	316
	 	Management Services.	317
	 	 	 
	10.	Managers’ Right to Sub-Contract	318
	 	Except to a Related Manager (where the Manager may	319
	 	subcontract any of their obligations hereunder, without need of	 
	 	obtaining the Owner’s consent for doing so), Tthe
    Managers

    shall not have the right to sub-contract any of	 
	 	their obligations hereunder, including those mentioned in sub-	320
	 	clause 3.1, without the prior written consent of the Owners which	321
	 	shall not be unreasonably withheld and which shall be promptly 

responded to. In
    the event of such a sub-	322
	 	contract the Managers shall remain fully liable for the due	323
	 	performance of their obligations under this Agreement.	324
	 	 	 
	11.	Responsibilities	325
	 	 	326
	 	The parties agree that the provisions of Sections 11.1 to 11.5 

(inclusive) of the Group Management
    Agreement, shall apply to 

this Agreement mutatis mutandis, save that references therein 

    to “any Shipmanagement Agreement or any Supervision 

Agreement” shall be omitted and
    references to “Parent”, “any 

member of the Group”, “Manager”, “any Submanager”,
    “a 

Vessel”, “Section”, “Management Fees”, “each 

    Shipmanagement Agreement”, “Group” and “Article XI” shall be 

construed
    as references to the Owners, the Owners, the 

Managers, any submanager, the Vessel, Clause, management fee, 

this Agreement,
    the Owners and Clause 11, respectively, when 

used herein.	 
	 	 	 
	 	11.1 	Force Majeure - Neither the Owners nor the Managers	 
	 	shall be under any liability for any failure to perform any of their	327
	 	obligations hereunder by reason of any cause whatsoever of	328
	 	any nature or kind beyond their reasonable control.	329
	 	11.2 	Liability to Owners - (i) Without prejudice
to sub-clause	330
	 	11.1, the Managers shall be under no liability whatsoever to the	331
	 	Owners for any loss, damage, delay or expense of whatsoever	332
	 	nature, whether direct or indirect (including but not limited to	333
	 	lose of profit arising out of or in connection with detention of or	334
	 	delay to the Vessel) and howsoever arising in the course of	335
	 	performance of the Management Services UNLESS same is	336
	 	proved to have resulted solely from the negligence, gross	337
	 	negligence or wilful default of the Managers or their employees,	338
	 	or agents or sub-contractors employed by them in connection	339
	 	with the Vessel, in which case (save where loss, damage, delay	340
	 	or expense has resulted from the Managers’ personal act or	341
	 	omission committed with the intent to cause same or recklessly	342
	 	and with knowledge that such loss, damage, delay or expense	343
	 	would probably result) the Managers’ liability for each incident	344
	 	or series of incidents giving rise to a claim or claims shall never	345
	 	Exceed a total of ten times the annual management fee payable	346

	 	hereunder.	347
	 	(ii) Notwithstanding anything that may appear to the contrary in	348
	 	this Agreement, the Managers shall not be liable for any of the	349
	 	actions of the Crew, even if such actions are negligent, grossly	350
	 	negligent or wilful, except only to the extent that they are shown	351
	 	to have resulted from a failure by the Managers to discharge	352
	 	their obligations under sub-clause 3.1, in which case their
    liability	353
	 	shall be limited in accordance with the terms of this Clause 11.	354
	 	11.3 	 Indemnity - Except to the extent and solely for the amount	355
	 	therein set out that the Managers would be liable under sub-	356
	 	clause 11.2, the Owners hereby undertake to keep the Managers	357
	 	and their employees, agents and sub-contractors indemnified	358
	 	and to hold them harmless against all actions, proceedings,	359
	 	claims, demands or liabilities whatsoever or howsoever arising	360
	 	which may be brought against them or incurred or suffered by	361
	 	them arising out of or in connection with the performance of the	362
	 	Agreement, and against and in respect of all costs, losses,	363
	 	damages and expenses (including legal costs and expenses on	364
	 	a full indemnity basis) which the Managers may suffer or incur	365
	 	(either directly or indirectly) in the course of the performance of	366
	 	this Agreement.	367
	 	11.4 	“Himalaya” - It is hereby expressly agreed that no	368
	 	employee or agent of the Managers (including every sub-	369
	 	contractor from time to time employed by the Managers) shall in	370
	 	Any circumstances whatsoever be under any liability whatsoever	371
	 	to the Owners for any loss, damage or delay of whatsoever kind	372
	 	arising or resulting directly or indirectly from any act, neglect or	373
	 	default on his part while acting in the course of or in connection	374
	 	with his employment and, without prejudice to the generality of	375
	 	the foregoing provisions in this Clause 11, every exemption,	376
	 	limitation, condition and liberty herein contained and every right,	377
	 	exemption from liability, defence and immunity of whatsoever	378
	 	nature applicable to the Managers or to which the Managers are	379
	 	entitled hereunder shall also be available and shall extend to	380
	 	protect every such employee or agent of the Managers acting	381
	 	as aforesaid and for the purpose of all the foregoing provisions	382
	 	of this Clause 11 the Managers are or shall be deemed to be	383
	 	acting as agent or trustee on behalf of and for the benefit of all	384
	 	persons who are or might be their servants or agents from time	385
	 	to time (including sub-contractors as aforesaid) and all such	386
	 	persons shall to this extent be or be deemed to be parties to this	387
	 	Agreement.	388
	 	 	 
	12.	Documentation	389
	 	Without prejudice to the relevant provisions of the Group
Management Agreement, Wwhere
    the Managers are providing Technical Management in	390
	 	accordance with sub-clause 3.2 and/or Crew Management in	391
	 	accordance with sub-clause 3.1, they shall make available,	392
	 	upon Owners’ request, all documentation and records related	393
	 	to the Safety Management System (SMS) and/or the Crew	394
	 	which the Owners need in order to demonstrate compliance	395
	 	with the ISM Code, the ISPS Code and STCW 95 or to defend a	396
	 	claim against	 
	 	a third party.	397
	 	 	 
	13.	General Administration	398
	 	3.1	Without prejudice to the provisions of Article V of the Group 

Management Agreement, but subject to the provisions of 

Section 4.6 of the Group Management Agreement, Tthe

Managers shall handle and settle all claims arising	399
	 	out of the Management Services hereunder and keep the Owners	400
	 	informed regarding any incident of which the Managers become	401
	 	aware which gives or may give rise to material claims or disputes

involving	402
	 	third parties.	403
	 	13.2 	 The Managers shall, as instructed by the Owners under this

Agreement and/or, as the case may be, Section 4.6 of the Group 

Management Agreement, bring	404
	 	or defend actions, suits or proceedings in connection with matters	405
	 	entrusted to the Managers according to this Agreement.	406

 

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO.  Any insertion or deletion to the form must be clearly visible.  In the event of any
modification made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved
document shall apply.  BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the
original BIMCO approved document and this computer generated document.

    	 

    	

    

PART II

“SHIPMAN 98” Standard Ship Management
Agreement

 

	 	13.3  	The Managers shall also have power to obtain legal or	407
	 	technical or other outside expert advice in relation to the handling	408
	 	and settlement of claims and disputes or all other matters	409
	 	affecting the interests of the Owners in respect of the Vessel.	410
	 	13.4  	The Owners shall arrange for the provision of any	411
	 	necessary guarantee bond or other security.	412
	 	13.5  	Any costs reasonably incurred by the Managers in	413
	 	carrying
    out their obligations according to Clause 13 shall be	414
	 	reimbursed by the Owners.	415
	 	 	 
	14.	Auditing	416
	 	The Managers shall at all times maintain and keep true and	417
	 	correct accounts and shall make the same available for inspection	418
	 	and auditing by the Owners at such times as may be mutually	419
	 	agreed. On the termination, for whatever reasons, of this	420
	 	Agreement, the Managers shall release to the Owners, if so	421
	 	requested, the originals where possible, or otherwise certified	422
	 	copies, of all such accounts and all documents specifically relating	423
	 	to the Vessel and her operation. For the avoidance of any doubt, 

this Clause is in addition to and not in substitution of the 

relevant provisions of the Group Management Agreement.	424
	15.	Inspection of Vessel	425
	 	The Owners shall have the right at any time after giving	426
	 	reasonable notice to the Managers to inspect the Vessel for any	427
	 	reason they consider necessary.	428
	 	 	 
	16.	Compliance with Laws and Regulations	429
	 	The Managers will not do or permit to be done anything which	430
	 	might cause any breach or infringement of the laws and	431
	 	regulations of the Vessel’s flag, or of the places where she trades.	432
	 	 	 
	17.	Duration of the Agreement	433
	 	This Agreement shall come into effect on the day and year stated	434
	 	in Box 4 and shall continue until the the date the Group Management 

Agreement is terminated in accordance with the provisions of 

Article XIII thereof, unless this Agreement is terminated earlier

 in accordance with the provision of Clause 18 hereofthe date 

stated in Box 17.  	435
	 	Thereafter it shall continue until terminated by either party giving	436
	 	to the other notice in writing, in which event the Agreement shall	437
	 	terminate upon the expiration of a period of two months from the	438
	 	date upon which such notice was given.	439

 

	18.	Termination	440
	 	18.1 	Owners’ default	441
	 	(i) 	The Managers shall be entitled to terminate the Agreement	442
	 	 	with immediate effect by notice in writing if any moneys	443
	 	 	payable by the Owners under this Agreement and/or the	444
	 	 	owners of any associated vessel, details of which are listed	445
	 	 	in Annex “D”, shall not have been received in the Managers’	446
	 	 	nominated
    account within ten20 running Business dDays
    of	447
	 	 	receipt
    by	 
	 	 	the Owners of the Managers written request or if the Vessel	448
	 	 	is repossessed by the Mortgagees.	449
	 	(ii) 	If the Owners:	450
	 	 	   (a)	fail
    to meet their obligations under sub-clauses 5.2	451
	 	 	 	and 5.3 of this Agreement for any reason within their	452
	 	 	 	control, or	453
	 	 	   (b)	proceed with the employment of or continue to employ	454
	 	 	 	the Vessel in the carriage of contraband, blockade	455
	 	 	 	running, or in an unlawful trade, or on a voyage which	456
	 	 	 	in the reasonable opinion of the Managers is unduly	457
	 	 	 	hazardous or improper,	458
	 	 	the Managers may give notice of the default to the Owners,	459
	 	 	requiring them to remedy it as soon as practically possible.	460
	 	 	In the event that the Owners fail to remedy it within a	461
	 	 	reasonable time20 Business Days of receipt by the Owners of	462
	 	 	the Managers’ written request to the satisfaction of the	 
	 	 	Managers, the	 
	 	 	Managers shall be entitled to terminate the Agreement	463

	 	 	with immediate effect by notice in writing.	464
	 	 	 
	 	18.2 	Managers’ Default	465
	 	If the
    Managers fail to meet their obligations under Clauses 3	466
	 	and 4 of this Agreement for any reason within the control of the	467
	 	Managers, the Owners may give notice to the Managers of the	468
	 	default, requiring them to remedy it within 20 Business Daysas 	469
	 	soon as practically	 
	 	possible. In the event that the Managers fail to remedy it within a	470
	 	reasonable timesuch period to the satisfaction of the Owners, the 	471
	 	Owners	 
	 	shall be entitled to terminate the Agreement with immediate effect	472
	 	by notice in writing.	473
	 	18.3 	Extraordinary Termination	474
	 	This Agreement shall be deemed to be terminated in the case of	475
	 	the sale of the Vessel or if the Vessel becomes a total loss or is	476
	 	declared as a constructive or compromised or arranged total	477
	 	loss or is requisitioned.	478
	 	18.4 	For
    the purpose of sub-clause 18.3
    hereof	479
	 	(i) 	the date upon which the Vessel is to be treated as having	480
	 	 	been sold or otherwise disposed of shall be the date on	481
	 	 	which the Owners cease to be registered as Owners of	482
	 	 	the Vessel;	483
	 	(ii) 	the Vessel shall not be deemed to be lost unless either	484
	 	 	she has become an actual total loss or agreement has	485
	 	 	been reached with her underwriters in respect of her	486
	 	 	constructive, compromised or arranged total loss or if such	487
	 	 	agreement with her underwriters is not reached it is	488
	 	 	adjudged by a competent tribunal that a constructive loss	489
	 	 	of the Vessel has occurred.	490
	 	18.5 	The parties agree that the provisions of Sections 13.4(a) to	491
	 	13.4(d)
    (inclusive) of the Group Management Agreement, shall 	 
	 	apply to this Agreement mutatis mutandis. This Agreement shall 	 
	 	terminate forthwith in the event of	 
	 	an order being made or resolution passed for the winding up,	492
	 	dissolution, liquidation or bankruptcy of either party (otherwise	493
	 	than for the purpose of reconstruction or amalgamation) or if a	494
	 	receiver is appointed, or if it suspends payment, ceases to carry	495
	 	on business or makes any special arrangement or composition	496
	 	with its creditors.	497
	 	18.6 	The termination of this Agreement shall be without	498
	 	prejudice to all rights accrued due between the parties prior to	499
	 	the date of termination.	500
	 	 	 
	19.	Law and Arbitration	501
	 	19.1  	This Agreement and any non-contractual obligations 	502
	 	connected with it shall be governed by and construed in	 
	 	accordance with English law. All disputes arising out of this	503
	 	Agreement and/or any non-contractual obligations connected 

with it shall be arbitrated in London in the following manner. 

One arbitrator is to be appointed by each of the parties hereto 

and a third by the two so chosen. Their decision or that of any 

two of them shall be final. The arbitrators shall be commercial 

persons, conversant with shipping matters. Such arbitration is 

to be conducted in accordance with the London Maritime 

Arbitration Association (LMAA) Terms current at the time when 

the arbitration proceedings are commenced and in accordance 

with the Arbitration Act 1996 or any statutory modification or re-

enactment thereof. In the event that a party hereto shall state a 

dispute and designate an arbitrator in writing, the other party 

shall have 10 Business Days to designate its own arbitrator. If 

such other party fails to designate its own arbitrator within such 

period, the arbitrator appointed by the first party can render an 

award hereunder. Until such time as the arbitrators finally close 

the hearings, either party shall have the right by written notice 

served on the arbitrators and on the other party to specify 

further disputes or differences under this Agreement for hearing 

and determination. The arbitrators may grant any relief, and 

render an award, which they or a majority of them deem just and 

equitable and within the scope of this Agreement, including but 

not limited to the posting of security. Awards pursuant to this 

Clause 19.1 may include costs and judgments may be entered 

upon any award made herein in any court having jurisdiction. 

and any dispute arising out of or	 
	 	in connection with this Agreement shall be referred to arbitration	504

 

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO
approved document and this computer generated document.

    	 

    	

    

PART II

“SHIPMAN 98” Standard Ship Management
Agreement

 

	 	in London
    in accordance with the Arbitration Act 1996-or	505
	 	any statutory
    modification or re-enactment thereof save to	506
	 	the extent
    necessary to give effect to the provisions of this	507
	 	Clause.	508
	 	The arbitration
    shall be conducted in accordance with the	509
	 	London Maritime
    Arbitrators Association (LMAA) Terms	510
	 	current at
    the time when the arbitration proceedings are	511
	 	commenced.	512
	 	The reference
    shall be to three arbitrators. A party wishing	513
	 	to refer
    a dispute to arbitration shall appoint its arbitrator	514
	 	and send
    notice of such appointment in writing to the other	515
	 	party requiring
    the other party to appoint its own arbitrator	516
	 	within 14
    calendar days of that notice and stating that it will	517
	 	appoint its
    arbitrator as solo arbitrator unless the other party	518
	 	appoints
    its own arbitrator and gives notice that it has done	519
	 	so within
    the 14 days specified. If the other party does not	520
	 	appoint its
    own arbitrator and give notice that it has done so	521
	 	within the
    14 days specified, the party referring a dispute to	522
	 	arbitration
    may, without the requirement of any further prior	523
	 	notice to
    the other party, appoint its arbitrator as sole	524
	 	arbitrator
    and shall advice the other party accordingly. The	525
	 	award of
    a sole arbitrator shall be binding on both parties	526
	 	as if he
    had been appointed by agreement.	527
	 	Nothing herein
    shall prevent the parties agreeing in writing	528
	 	to vary these
    provisions to provide for the appointment of a	529
	 	sole arbitrator.	530
	 	In cases
    where neither the claim nor any counterclaim	531
	 	exceeds the
    sum of USD50,000 (or such other sum as the	532
	 	parties may
    agree) the arbitration shall be conducted in	533
	 	accordance
    with the LMAA Small Claims Procedure current	534
	 	at the time
    when the arbitration proceedings are commenced.	535
	 	19.2
    This Agreement shall be governed by and construed	536
	 	in accordance
    with Title 9 of the United States Code and 	537
	 	the Maritime
    Law of the United States and any dispute	538

	 	arising out
    of or in connection with this Agreement shall be	539
	 	referred
    to three persons at New York, one to be appointed	540
	 	by each of
    the parties hereto, and the third by the two so	541
	 	chosen; their
    decision or that of any two of them shall be	542
	 	final, and
    for the purposes of enforcing any award,	543
	 	judgement
    may be entered on an award by any court of	544
	 	competent
    jurisdiction. The proceedings shall be conducted	545
	 	in accordance
    with the rules of the Society of Maritime	546
	 	Arbitrators,
    Inc.	547
	 	In cases
    where neither the claim nor any counterclaim	548
	 	exceeds the
    sum of USD50,000 (or such other sum as the	549
	 	parties may
    agree) the arbitration shall be conducted in	550
	 	accordance
    with the Shortened Arbitration Procedure of the	551
	 	Society of
    Maritime Arbitrators, Inc. current at the time when	552
	 	the arbitration
    proceedings are commenced.	553
	 	19.3
    This Agreement shall be governed by and construed	554
	 	in accordance
    with the laws of the place mutually agreed by	555
	 	the parties
    and any dispute arising out of or in connection	556
	 	with this
    Agreement shall be referred to arbitration at a	557
	 	mutually
    agreed place, subject to the procedures applicable	558
	 	there.	559
	 	19.4
    If Box 18 in Part I is
    not appropriately filled in, sub-	560
	 	clause 19.1 of this Clause shall apply.	561
	 	 	 
	 	Note: 19.1,
    19.2 and 19.3 are
    alternatives; indicate	562
	 	alternative agreed in Box
    18.	563
	 	 	 
	20.	Notices	564
	 	20.1 Any
    notice to be given by either party to the other	565
	 	party shall be in writing and may be sent by
    fax, telex,	566
	 	registered or recorded mail or by personal
    service.	567
	 	20.2 The
    address of the Parties for service of such	568
	 	communication shall be as stated in Boxes
    19 and 20,	569
	 	respectively.	570

 

This document is a computer generated SHIPMAN
98 form printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible. In the event of any modification
made to the pre-printed text of this document which is not clearly visible, the text of the original BIMCO approved document shall
apply. BIMCO assumes no responsibility for any loss, damage or expense as a result of discrepancies between the original BIMCO
approved document and this computer generated document.Exhibit 4.1

 

CELATOR PHARMACEUTICALS, INC.

 

WARRANT AGREEMENT

 

THIS WARRANT
AGREEMENT (this “Warrant Agreement”) is dated October 28, 2014, between Celator Pharmaceuticals, Inc., a Delaware
corporation (the “Company”), and American Stock Transfer & Trust Company, LLC, acting as warrant agent (the
“Warrant Agent”).

 

WHEREAS, the Company is engaged in a public
offering (the “Offering”) of Common Stock (as defined below) and Warrants (as defined below) and, in connection therewith,
has determined to issue and deliver warrants (the “Warrants”) to purchase up to 760,282 shares of Common Stock (as
defined below) (the “Warrant Shares”) to the investors in the Offering, including Warrants to purchase up to 99,167
shares of Common Stock subject to an overallotment option granted to the underwriters as described in the Prospectus Supplement
(as defined below), each Warrant evidencing the right of the holder thereof to purchase 0.10 of a share of the Company’s
common stock, par value $.001 per share (the “Common Stock”), for $3.58 per whole share of Common Stock, as adjusted
from time to time as provided in Section 9 herein (the “Exercise Price”);

 

WHEREAS, the Company has filed with the
Securities and Exchange Commission (the “Commission”) a shelf registration statement on Form S-3 (File No. 333-193720),
as amended (the “Registration Statement”), for the registration under the Securities Act of 1933, as amended (the “Act”),
of, among other securities, the Warrants and the Common Stock issuable upon exercise of the Warrants;

 

WHEREAS, the Company has filed with the
Commission a prospectus supplement to the Registration Statement pursuant to Rule 424(b)(5) under the Act (the “Prospectus
Supplement”) describing the terms of the Warrants and the Common Stock issuable upon exercise of the Warrants;

 

WHEREAS, the
Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with
the issuance, registration, transfer, exercise and replacement of the Warrants and, in the Warrant Agent’s capacity as the
Company’s transfer agent, the delivery of the Warrant Shares.

 

NOW, THEREFORE,
in consideration of the foregoing and for the purpose of defining the terms and provisions of the Warrants and the respective
rights and obligations thereunder of the Company, the Warrant Agent and the registered holders from time to time of the Warrants
(each, a “Holder” and collectively, the “Holders”), the parties hereby agree as follows:

 

1.           Definitions.
 In addition to the terms defined elsewhere in this Warrant Agreement, the following terms shall
have the following meanings:

 

“Business Day” means any day
except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions
in the City of New York are authorized or required by law or other government action to close.

 

    	1

    	 

    

  

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Expiration Date” means the
date five (5) years after the Initial Issuance Date.

 

“Initial Issuance Date” means
October 28, 2014.

 

“Person” means an individual,
a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other
entity and a government or any department or agency thereof.

 

“Trading Day” means any day
on which the Common Stock are traded on the NASDAQ Stock Market, or, if the NASDAQ Stock Market is not the principal trading market
for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock are then traded;
provided that “Trading Day” shall not include any day on which the Common Stock are scheduled to trade on such
exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from trading during the final hour of
trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on
such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

2.           Appointment
of Warrant Agent.  The Company hereby appoints the Warrant Agent to act as agent for the Company
in accordance with the terms and conditions hereof, and the Warrant Agent hereby accepts such appointment. The Company may from
time to time appoint such Co-Warrant Agents as it may, in its sole discretion, deem necessary or desirable.

 

3.           Registration.

 

(a)          The Warrant Agent shall maintain
books (“Warrant Register”), for the registration of original issuance and the registration of transfer of the Warrants.
The Warrants may be represented by definitive warrant certificates in physical form (“Warrant Certificates”) or by
one or more book-entry warrants (“Book-Entry Warrants”) deposited with The Depository Trust Company (the “Depository”)
and registered in the name of Cede & Co., a nominee of the Depository. Ownership of beneficial interests in the Book-Entry
Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained by (i) the Depository
or its nominee for each Book-Entry Warrant or (ii) institutions that have accounts with the Depository (such institution, with
respect to a Warrant in its account, a “Participant”).

 

(b)          If the Warrants are not “DTC
Eligible” as of the Initial Issuance Date or the Depository subsequently ceases to make its book-entry settlement system
available for the Warrants, the Company may instruct the Warrant Agent regarding other arrangements for book-entry settlement.
In the event that the Warrants are not eligible for, or it is no longer necessary to have the Warrants available in, book-entry
form, the Warrant Agent shall provide written instructions to the Depository to deliver to the Warrant Agent for cancellation the
Book-Entry Warrants, and the Company shall instruct the Warrant Agent to deliver to each Holder a Warrant Certificate.

 

    	2

    	 

    

 

(c)          Notwithstanding
the foregoing and anything else herein to the contrary, the Warrants may be issued in uncertificated form if so specified by the
Company. 

 

4.          Countersignature;
Transfer of Warrants; Mutilated, Destroyed, Lost or Stolen Certificates.

 

(a)          The Warrant Certificates shall
be substantially in the form of Exhibit A hereto and executed on behalf of the Company by its Chief Executive Officer, the
Vice President, the Chief Financial Officer or any Vice President, either manually or by facsimile signature. The Warrant Certificates
shall be countersigned by the Warrant Agent either manually or by facsimile signature and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company who shall have signed any of the Warrant Certificates shall cease to be such
officer of the Company before countersignature by the Warrant Agent and issuance and delivery
by the Company, such Warrant Certificates nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the
same force and effect as though the person who signed such Warrant Certificate had not ceased to be such officer of the Company;
and any Warrant Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such
Warrant Certificate shall be a proper officer of the Company to sign such Warrant Certificate although at the date of the execution
of this Agreement any such person was not such an officer.

 

(b)          The Warrant Agent will create a
special account for the issuance of Warrant Certificates.

 

(c)          Subject to the last sentence of
this Section 4(c) and subject to applicable law, rules or regulations, or any “stop transfer” instructions the
Company may give to the Warrant Agent, at any time after the Initial Issuance Date, and at or prior to 5:00 P.M., New York City
time, on the Expiration Date, upon the surrender of any Warrant Certificate, together with a Form of Assignment substantially in
the form of Exhibit B, to the principal office of the Warrant Agent, the Warrant Agent shall register the transfer, from
time to time, of any outstanding Warrant into the Warrant Register and the Warrant Agent shall issue in exchange therefor one or
more new Warrants as requested by the Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants.
The Book-Entry Warrants may be transferred only in whole and only to the Depository, to another nominee of the Depository, to a
successor depository, or to a nominee of a successor depository. Upon the registration of transfer, the Company shall execute and
the Warrant Agent shall, subject to the last sentence of this Section 4(c), countersign and deliver to the Person entitled
thereto a Warrant Certificate or Warrant Certificates, as the case may be, as so requested. The Company may require payment from
the Holder of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer of Warrant
Certificates. The Company shall compensate the Warrant Agent per the fee schedule mutually agreed upon by the parties hereto and
provided separately on the date hereof.

 

    	3

    	 

    

 

(d)          Upon receipt by the Warrant Agent
of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of a Warrant Certificate, which evidence
shall include an affidavit of loss, or in the case of mutilated certificates, the certificate or portion thereof remaining, and,
in case of loss, theft or destruction, of indemnity or security in customary form and amount which shall include a corporate bond
of indemnity satisfactory to the Warrant Agent, and satisfaction of any other reasonable requirements established by Section 8-405
of the Uniform Commercial Code as in effect in the State of Delaware, and reimbursement to the Company and the Warrant Agent of
all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant Certificate
if mutilated, the Company will make and deliver a new Warrant Certificate of like tenor to the Warrant Agent for delivery to the
Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or mutilated.

 

5.            Exercise
and Duration of Warrant.

 

(a)          All
or any part of the Warrant shall be exercisable, in whole or in part, by the registered Holder at any time and from time to time
on or after the Initial Issuance Date and through and including 5:00 P.M., New York City time, on the Expiration Date. At 5:00
P.M., New York City time, on the Expiration Date, the Warrant shall be terminated and no longer outstanding; provided, however
that, notwithstanding the foregoing, without any further action by or on behalf of the Holder, the Warrant shall automatically
be deemed to be exercised in full pursuant to the net exercise provisions of Section 10 effective immediately prior to such
termination.

 

(b)          The
Holder may exercise the Warrant by delivering, not later than 5:00 p.m., New York City time, on any Business Day prior to the Expiration
Date, to the principal office of the Warrant Agent (i) an exercise notice, in the form attached as Exhibit C hereto (the
“Exercise Notice”), appropriately completed and duly signed by the Holder or, in the case of a Book-Entry Warrant,
properly delivered by the Participant in accordance with the Depository’s procedures and (ii) payment of the Exercise Price
for the number of Warrant Shares as to which the Warrant is being exercised (which may take the form of a “cashless exercise”
if so indicated in the Exercise Notice pursuant to Section 10), and the date such items are delivered to the Company (as
determined in accordance with the notice provisions hereof) is an “Exercise Date.” If the Exercise Notice is received
by the Warrant Agent after 5:00 p.m., New York City Time, on the specified Exercise Date, the Warrants will be deemed to be received
and exercised on the Trading Day next succeeding the Exercise Date. The Holder shall not be required to deliver the original Warrant
in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation
of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares.
No ink original of any Exercise Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization)
of any Exercise Notice be required. Upon receipt of payment of the Exercise Price by the Warrant Agent or one of its agents, the
Warrant Agent or such agent shall promptly remit such payment to the Company at an account designated by the Company to the Warrant
Agent. In the event of a “cashless exercise,” the Exercise Notice must be delivered to the Company at the address specified
in Section 18 hereof.

 

    	4

    	 

    

 

6.            Delivery
of Warrant Shares.

 

(a)          Upon
exercise of the Warrant, the Warrant Agent shall promptly advise the Company and the transfer agent and registrar in respect of
(i) the Warrant Shares issuable upon such exercise as to the number of Warrants exercised in accordance with the terms and conditions
of this Warrant Agreement, (ii) the instructions of the Holder or Participant, as the case may be, with respect to delivery of
the Warrant Shares issuable upon such exercise, and the delivery of Warrant Certificates, as appropriate, evidencing the balance,
if any, of the Warrants remaining after such exercise, (iii) in case of a Book-Entry Warrant, the notation that shall be made to
the records maintained by the Depository, its nominee for each Book-Entry Warrant, or a Participant, as appropriate, evidencing
the balance, if any, of the Warrants remaining after such exercise and (d) such other information as the Company or such transfer
agent and registrar shall reasonably require. Provided that the Warrant Agent has received funds in the amount of the Exercise
Price, the Company shall promptly (but in no event later than three Trading Days after the Exercise Date) issue or cause to be
issued and cause to be delivered to the Holder (or upon the written order of the Holder, in such name or names as the Holder may
designate) or the Participant, as the case may be, , a certificate for the Warrant Shares issuable upon such exercise, free of
restrictive legends. The Holder (or any Person permissibly so designated by the Holder to receive Warrant Shares) or the Participant,
as applicable, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date. In lieu of delivering
physical certificates representing the Warrant Shares issuable upon exercise, provided the Company’s transfer agent is participating
in the Depository’s Fast Automated Securities Transfer program, upon the written request of the Holder or the Participant,
as applicable, the Company shall use its commercially reasonable efforts to deliver, or cause to be delivered, Warrant Shares hereunder
electronically through The Depository Trust Company or another established clearing corporation performing similar functions, if
available.

 

(b)          If
by the close of the third Trading Day after delivery of a properly completed Exercise Notice (and any other documents required
pursuant to Section 6(a)), the Company fails to deliver to the Holder or the Participant, as applicable, the required number
of Warrant Shares in the manner required pursuant to Section 4(a), and if on or after the Trading Day immediately following
such third Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated
receiving upon such exercise (a “Buy-In”), then the Company shall, within three Trading Days after the Holder’s
request and in the Holder’s sole discretion, either (i) pay in cash to the Holder an amount equal to the Holder’s total
purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”),
at which point the Company’s obligation to deliver such certificate (and to issue such Warrant Shares) shall terminate or
(ii) promptly honor its obligation to deliver to the Holder Warrant Shares and pay cash to the Holder in an amount equal to the
excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares, times (B) the Closing Sales Price (as
defined below) on the date of receipt of a properly completed Exercise Notice.

 

(c)          To
the extent permitted by law, the Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof
are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent
with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any
setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person
of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective
of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance
of Warrant Shares. Nothing herein shall limit the Holder’s right to pursue any other remedies available to the Holder hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

    	5

    	 

    

 

7.          Charges,
Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise
of the Warrant shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental
tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided,
however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the
registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder or an Affiliate thereof.
The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring the Warrant or
receiving Warrant Shares upon exercise of the Warrant. 

 

8.          Reservation
of Warrant Shares. The Company covenants that it will reserve and keep available out of the aggregate
of its authorized but unissued and otherwise unreserved shares of Common Stock, solely for the purpose of enabling it to issue
Warrant Shares upon exercise of the Warrants as herein provided, one hundred percent (100%) of the number of Warrant Shares that
are issuable and deliverable upon the exercise of the Warrants, free from preemptive rights or any other contingent purchase rights
of persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants
that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance
with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable. The Company will take all such
action as may be necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common
Stock may be listed.

 

9.          Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of the Warrants
are subject to adjustment from time to time as set forth in this Section 9. 

 

(a)          Stock
Dividends and Splits. If the Company, at any time while the Warrants are outstanding, (i) pays
a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares
of Common Stock, (ii) subdivides its outstanding shares of Common Stock into a larger number of shares, or (iii) combines its outstanding
shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction,
the numerator of which shall be the number of shares of Common Stock outstanding immediately before such event and the denominator
of which shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to
clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this Section 9(a) shall
become effective immediately after the effective date of such subdivision or combination. 

 

    	6

    	 

    

 

(b)          Pro
Rata Distributions. If the Company, at any time while the Warrants are outstanding, distributes
to all holders of Common Stock (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock
covered by the preceding paragraph), (iii) rights or warrants to subscribe for or purchase any security, or (iv) any other asset
(in each case, “Distributed Property”), then, upon the exercise of any Warrant that occurs after the record date fixed
for determination of stockholders entitled to receive such distribution, the Holder shall be entitled to receive, in addition to
the Warrant Shares otherwise issuable upon such exercise (if applicable), the Distributed Property that such Holder would have
been entitled to receive in respect of such number of Warrant Shares had the Holder been the record holder of such Warrant Shares
immediately prior to such record date.

 

(c)          Fundamental
Transactions. If, at any time while the Warrants are outstanding (i) the Company effects any
merger or consolidation of the Company with or into another Person, in which the Company is not the survivor and the stockholders
of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least fifty percent (50%)
of the voting securities of the surviving entity, (ii) the Company effects any sale of all or substantially all of its assets or
at least a majority of its Common Stock is acquired by a third party, in each case, in one or a series of related transactions,
(iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which all or substantially
all of the holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or
(iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision
or combination of shares of Common Stock covered by Section 9(a)) (in any such case, a “Fundamental Transaction”),
then the Holder shall thereafter receive, upon exercise of any Warrant, in lieu of any Warrant Shares, the same amount and kind
of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if
it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise
in full of such Warrant without regard to any limitations on exercise contained herein (the “Alternate Consideration”).
The Company shall not affect any such Fundamental Transaction unless prior to or simultaneously with the consummation thereof,
any successor to the Company, surviving entity or the corporation purchasing or otherwise acquiring such assets or other appropriate
corporation or entity shall assume the obligation to deliver to the Holder, such Alternate Consideration as, in accordance with
the foregoing provisions, the Holder may be entitled to purchase and/or receive (as the case may be), and the other obligations
under any Warrant. The provisions of this paragraph (c) shall similarly apply to subsequent transactions analogous to a Fundamental
Transaction. 

 

(d)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph
(a) and (e) of this Section 9, the number of Warrant Shares that may be purchased upon exercise of the Warrants shall be
increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased
or decreased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

    	7

    	 

    

 

(e)          Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest
share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held
by or for the account of the Company, and the sale or issuance of any such shares shall be considered an issue or sale of Common
Stock. 

 

(f)          Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the
Company at its expense will, at the written request of the Holder, promptly compute such adjustment, in good faith, in accordance
with the terms of the Warrants and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise
Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of the Warrants (as applicable),
describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based.
Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s
transfer agent. 

 

(g)          Notice
of Corporate Events. If, while the Warrants are outstanding, the Company (i) declares a dividend
or any other distribution of cash, securities or other property in respect of its Common Stock, including, without limitation,
any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any subsidiary, (ii) authorizes
or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii)
authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then, except if such notice and
the contents thereof shall be deemed to constitute material non-public information, the Company shall deliver to the Holder a notice
describing the material terms and conditions of such transaction at least five Trading Days prior to the applicable record or effective
date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and
the Company will take all steps reasonably necessary in order to ensure that the Holder is given the practical opportunity to exercise
the Warrants prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure
to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in
such notice. 

 

10.         Payment
of Exercise Price. The Holder shall pay the Exercise Price in immediately available funds; provided,
however, pursuant to the exercise of any Warrant in full, that the Holder may, in its sole discretion, satisfy its obligation to
pay the Exercise Price through a “cashless exercise,” in which event the Company shall issue to the Holder the number
of Warrant Shares determined as follows: 

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant Shares to be issued to the
Holder.

 

Y = the total number of Warrant Shares with respect
to which the Warrant is being exercised in accordance with the terms of the Warrant and this Warrant Agreement if such exercise
were by means of a cash exercise rather than a cashless exercise.

 

    	8

    	 

    

 

A = the average of the Closing Sale Prices of the shares
of Common Stock (as reported by Bloomberg Financial Markets) for the five Trading Days ending on the date immediately preceding
the Exercise Date.

 

B = the Exercise Price then in effect for the applicable
Warrant Shares at the time of such exercise.

 

For purposes of the Warrants, “Closing
Sale Price” means, for any security as of any date, the last trade price for such security on the principal trading market
of the security, as reported by Bloomberg Financial Markets, or, if the principal trading market of the security begins to operate
on an extended hours basis and does not designate the last trade price then the last trade price of such security prior to 4:00
p.m., New York City Time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last trade price of
such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial
Markets, or, if no closing bid price is reported for such security by Bloomberg Financial Markets, the average of the bid prices
and asked prices of any market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc.
If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale
Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder in good
faith. If the Company and the Holder are unable to agree upon the fair market value of such security, then the Company shall, within
two Business Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment
bank selected by the Company and approved by the Holder (which approval shall not be unreasonably withheld, conditioned or delayed)
or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company
shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations
or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be
binding upon all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination or other similar transaction during the applicable calculation period.

 

    	9

    	 

    

 

11.         Beneficial
Ownership. The Company shall not effect the exercise of any Warrant, and the Holder shall not
have the right to exercise such Warrant, to the extent that after giving effect to such exercise, such Person (together with such
Person’s affiliates) would beneficially own in excess of 19.99% (the “Maximum Percentage”) of the shares of Common
Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number
of shares of Common Stock beneficially owned by such Person and its affiliates shall include the number of shares of Common Stock
issuable upon exercise of the Warrant with respect to which the determination of such sentence is being made, but shall exclude
shares of Common Stock which would be issuable upon (a) exercise of the remaining, unexercised portion of the Warrant beneficially
owned by such Person and its affiliates and (b) exercise or conversion of the unexercised or unconverted portion of any other securities
of the Company beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible
preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except
as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act. For purposes of the Warrant, in determining the number of outstanding shares of Common
Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in the most recent of (i) the Company’s
most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission,
as the case may be, (ii) a more recent public announcement by the Company or (iii) any other notice by the Company or the transfer
agent setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request
of the Holder, the Company shall within two Business Days confirm to the Holder the number of shares of Common Stock then outstanding.
In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including the Warrant, by the Holder and its affiliates since the date as of which such number of
outstanding shares of Common Stock was reported. Neither the Warrant Agent nor the Depository Trust Company has any responsibility
for monitoring compliance with this Section 11.

 

12.         No
Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise
of any Warrant. In lieu of any fractional shares which would, otherwise be issuable, the number of Warrant Shares to be issued
shall be rounded down to the next whole number and the Company shall pay the Holder in cash the fair market value (based on the
Closing Sale Price) for any such fractional shares. 

 

13.         Concerning
the Warrant Agent.

 

(a)          The
Company agrees to pay to the Warrant Agent, pursuant to the fee schedule mutually agreed upon by the parties hereto and provided
separately on the date hereof, for all services rendered by it hereunder and, from time to time, its reasonable expenses and counsel
fees and other disbursements actually incurred in the administration and execution of this Agreement and the exercise and performance
of its duties hereunder.

 

(b)          The Company covenants and agrees
to indemnify and to hold the Warrant Agent harmless against any costs, expenses (including reasonable fees of its legal counsel),
losses or damages, which may be paid, incurred or suffered by or to which it may become subject, arising from or out of, directly
or indirectly, any claims or liability resulting from its actions as Warrant Agent pursuant hereto; provided, that such covenant
and agreement does not extend to, and the Warrant Agent shall not be indemnified with respect to, such costs, expenses, losses
and damages incurred or suffered by the Warrant Agent as a result of, or arising out of, its gross negligence, bad faith, or willful
misconduct.

 

(c)          In order that the indemnification
provisions contained in this Section 13 shall apply, upon the assertion of a claim for which one party may be required to
indemnify the other, the party seeking indemnification shall promptly notify the other party of such assertion, and shall keep
the other party advised with respect to all developments concerning such claim. The indemnifying party shall have the option to
participate with the indemnified party in the defense of such claim or to defend against said claim in its own name or the name
of the indemnified party. The indemnified party shall in no case confess any claim or make any compromise in any case in which
the indemnifying party may be required to indemnify it except with the indemnifying party’s prior written consent.

 

    	10

    	 

    

 

(d)          Subject to Section 13(b)
above, neither party to this Agreement shall be liable to the other party for any consequential, indirect, special or incidental
damages under any provisions of this Agreement or for any consequential, indirect, penal, special or incidental damages arising
out of any act or failure to act hereunder even if that party has been advised of or has foreseen the possibility of such damages.

 

(e)          Notwithstanding anything contained
herein to the contrary, the rights and obligations of the parties set forth in this Section 13 shall survive termination
of this Agreement or the resignation or removal of the Warrant Agent.

 

14.         Purchase
or Consolidation or Change of Name of Warrant Agent

 

(a)          Any
corporation into which the Warrant Agent or any successor Warrant Agent may be merged or with which it may be consolidated, or
any corporation resulting from any merger or consolidation to which the Warrant Agent or any successor Warrant Agent shall be party,
or any corporation succeeding to the corporate trust business of the Warrant Agent or any successor Warrant Agent, shall be the
successor to the Warrant Agent under this Agreement without the execution or filing of any paper or any further act on the part
of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor Warrant Agent under
the provisions of Section 16. In case at the time such successor Warrant Agent shall succeed to the agency created by this
Agreement any of the Warrant Certificates shall have been countersigned but not delivered, any such successor Warrant Agent may
adopt the countersignature of the predecessor Warrant Agent and deliver such Warrant Certificates so countersigned; and in case
at that time any of the Warrant Certificates shall not have been countersigned, any successor Warrant Agent may countersign such
Warrant Certificates either in the name of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and in
all such cases such Warrant Certificates shall have the full force provided in the Warrant Certificates and in this Agreement.

 

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

 

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

 

    	11

    	 

    

 

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

 

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

 

(c)          Subject
to the limitation set forth in Section 13, the Warrant Agent shall be liable hereunder for its own gross negligence, bad
faith or willful misconduct, or for a breach by it of this Agreement.

 

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

 

(e)          The
Warrant Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery
hereof (except the due execution hereof by the Warrant Agent) or in respect of the validity or execution of any Warrant Certificate
(except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Warrant Certificate; nor shall it be responsible for the adjustment of the Exercise Price or the making
of any change in the number of shares of Common Stock required under the provisions of Section 9 or 12 or responsible
for the manner, method or amount of any such change or the ascertaining of the existence of facts that would require any such adjustment
or change (except with respect to the exercise of Warrants evidenced by Warrant Certificates after actual notice of any adjustment
of the Exercise Price); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization
or reservation of any shares of Common Stock to be issued pursuant to this Agreement or any Warrant Certificate or as to whether
any shares of Common Stock will, when issued, be duly authorized, validly issued, fully paid and nonassessable.

 

(f)          Each
party hereto 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 other party hereto for
the carrying out or performing by any party of the provisions of this Agreement.

 

(g)          The
Warrant Agent is hereby authorized to accept instructions with respect to the performance of its duties hereunder from the Chief
Executive Officer, Chief Financial Officer or Vice President of the Company, and to apply to such officers for advice or instructions
in connection with its duties, and it shall not be liable and shall be indemnified and held harmless for any action taken or suffered
to be taken by it in good faith in accordance with instructions of any such officer, provided Warrant Agent carries out such instructions
without gross negligence, bad faith or willful misconduct.

 

    	12

    	 

    

 

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

 

(i)          The
Warrant Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself
or by or through its attorney or agents, and the Warrant Agent shall not be answerable or accountable for any act, default, neglect
or misconduct of any such attorney or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment thereof.

 

16.         Change
of Warrant Agent. The Warrant Agent may resign and be discharged from its duties under this Agreement
upon 30 days’ notice in writing mailed to the Company and to each transfer agent of the Common Stock by registered or certified
mail, and to the holders of the Warrant Certificates by first-class mail. The Company may remove the Warrant Agent or any successor
Warrant Agent upon 30 days’ notice in writing, mailed to the Warrant Agent or successor Warrant Agent, as the case may be,
and to each transfer agent of the Common Stock by registered or certified mail, and to the holders of the Warrant Certificates
by first-class mail. If the Warrant Agent shall resign or be removed or shall otherwise become incapable of acting, the Company
shall appoint a successor to the Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after
such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Warrant
Agent or by any Holder, then any Holder may apply to any court of competent jurisdiction for the appointment of a new Warrant Agent.
Any successor Warrant 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 a state thereof, in good standing, which is authorized under such laws to exercise corporate
trust powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment
as Warrant Agent a combined capital and surplus of at least $50,000,000. After appointment, the successor Warrant Agent shall be
vested with the same powers, rights, duties and responsibilities as if it had been originally named as Warrant Agent without further
act or deed; but the predecessor Warrant Agent shall deliver and transfer to the successor Warrant 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 Warrant
Agent and each transfer agent of the Common Stock, and mail a notice thereof in writing to the Holders. However, failure to give
any notice provided for in this Section 16, or any defect therein, shall not affect the legality or validity of the resignation
or removal of the Warrant Agent or the appointment of the successor Warrant Agent, as the case may be.

 

    	13

    	 

    

 

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

 

18.         Notices.
Notices or demands authorized by this Agreement to be given or made (i) by the Warrant Agent
or by any Holder to or on the Company, (ii) subject to the provisions of Section 16, by the Company or by any Holder to
or on the Warrant Agent or (iii) by the Company or the Warrant Agent to the Holders, shall be deemed given (x) on the date delivered,
if delivered personally, (y) on the first Business Day following the deposit thereof with Federal Express or another recognized
overnight courier, if sent by Federal Express or another recognized overnight courier, and (z) on the fourth Business Day following
the mailing thereof with postage prepaid, if mailed by registered or certified mail (return receipt requested), in each case to
the parties at the following addresses (or at such other address for a party as shall be specified by like notice): 

 

(a) If to the Company, to:

 

Celator Pharmaceuticals, Inc.

200 PrincetonSouth Corporate Center

Suite 180

Ewing, New Jersey 08628

 

(b) If to the Warrant Agent, to:

 

American Stock Transfer & Trust Company,
LLC

6201 15th Avenue

Brooklyn, NY 11219

Attention: Corporate Trust Department

Fax: (718) 765-8711

 

(c)          If to the Holders, to the address
of such holder as shown on the Warrant Register. Any notice required to be delivered by the Company to the Holders may be given
by the Warrant Agent on behalf of the Company.

 

    	14

    	 

    

 

19.         Miscellaneous.

 

(a)          No
Rights as a Stockholder. The Holders, solely in such Persons’ capacity as holders of the
Warrants, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose,
nor shall anything contained in the Warrants or this Warrant Agreement be construed to confer upon the Holders, solely in such
Persons’ capacity holders of the Warrants, any of the rights of a stockholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the Holders which such Persons are then entitled to receive upon the due exercise of the Warrant. In addition,
nothing contained in the Warrants or this Warrant Agreement shall be construed as imposing any liabilities on the Holders to purchase
any securities (upon exercise of any Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted
by the Company or by creditors of the Company. Notwithstanding this Section 19(a), the Company shall provide the Holder
with copies of the same notices and other information given to the stockholders of the Company, contemporaneously with the giving
thereof to the stockholders.

 

(b)          Successors
and Assigns. Subject to compliance with applicable securities laws, any Warrant may be assigned
by the Holder. The Warrants may not be assigned by the Company except to a successor in the event of a Fundamental Transaction.
The Warrants shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject
to the preceding sentence, nothing in the Warrants or this Warrant Agreement shall be construed to give to any Person other than
the Company and the Holders any legal or equitable right, remedy or cause of action under the Warrants. Any attempted assignment
in violation of this Section 19(b) shall be null and void.

 

(c)          Registration
of Common Stock. The Company will use its reasonable best efforts to maintain the effectiveness of the Registration Statement,
or a new registration statement, for the registration under the Act of the Common Stock issuable upon exercise of the Warrants
and ensure that a prospectus is available for delivery to the Holders until the expiration of the Warrants in accordance with the
provisions of this Warrant Agreement; provided, however, that in no event shall the Holders have the right to net settle the Warrants
for cash irrespective of whether an effective registration statement is then in effect.

 

(d)          Non-circumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of its corporate charter, bylaws or through
any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities
or any other voluntary action, seek to avoid the observance or performance of any of the terms of the Warrants or this Warrant
Agreement, and will at all times in good faith carry out all the provisions of the Warrants and this Warrant Agreement. Without
limiting the generality of the foregoing, the Company shall not increase the par value of any shares of Common Stock receivable
upon the exercise of the Warrants above the Warrant Price then in effect.

 

(c)          Amendment
and Waiver.

 

(i)          The Company and the Warrant Agent
may from time to time supplement or amend this Warrant Agreement without the approval of any Holders of Warrants in order to cure
any ambiguity, to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions
herein, or to make any other provisions with regard to matters or questions arising hereunder which the Company and the Warrant
Agent may deem necessary or desirable and which shall not adversely affect the interests of the Holders.

 

(ii)         In
addition to the foregoing, this Warrant Agreement may be amended, modified or supplemented, and waiver or consents to departures
from the provisions of this Warrant Agreement may be given, if the Company and the holders of outstanding Warrants representing
at least a majority of the shares of Common Stock purchasable under the outstanding Warrants consent to such amendment, modification,
supplement, waiver or consent.

 

(d)          Governing
Law; Jurisdiction. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT
AND INTERPRETATION OF THIS WARRANT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH PARTY
HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE state and federal courts sitting in the City of New York, Borough
of Manhattan, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED
HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY
WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION
OF ANY SUCH COURT. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY
SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE
OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS WARRANT AGREEMENT AND AGREES THAT SUCH SERVICE
SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN
ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. 

 

(e)          Headings.
The headings herein are for convenience only, do not constitute a part of this Warrant Agreement
and shall not be deemed to limit or affect any of the provisions hereof. 

 

(f)          Severability.
In case any one or more of the provisions of this Warrant Agreement shall be invalid or unenforceable
in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant Agreement shall not in any
way be affected or impaired thereby, and the parties will attempt in good faith to agree upon a valid and enforceable provision
which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision
in this Warrant Agreement. 

 

(g)          Force
Majeure.  Notwithstanding anything to the contrary contained herein, the Warrant Agent shall
not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation,
acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities,
or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties,
war, or civil unrest.

 

(Signature page follows.)

 

    	15

    	 

    

 

IN WITNESS
WHEREOF, the Company has caused this Warrant Agreement to be duly executed by its authorized officer as of the date first
indicated above.

 

	 	CELATOR PHARMACEUTICALS, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	AMERICAN STOCK TRANSFER &
	 	TRUST COMPANY, LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	16

    	 

    

 

Exhibit A

 

EXERCISABLE ON OR AFTER OCTOBER __, 2014

AND ON OR BEFORE THE EXPIRATION DATE

 

	No.	 	Warrant to Purchase              Shares

 

Warrant Certificate

 

WARRANTS TO ACQUIRE COMMON STOCK OF CELATOR
PHARMACEUTICALS, INC.

 

This warrant certificate (this “Warrant
Certificate”) certifies that              , or registered
assigns, is the registered holder of a Warrant (the “Warrant”) to acquire from Celator Pharmaceuticals, Inc., a Delaware
corporation (the “Company”), the number of fully paid and non-assessable shares of Common Stock, $0.001 par value,
of the Company (the “Common Stock”) specified above for consideration equal to the Exercise Price (as defined in the
Warrant Agreement (as defined below)) per share of Common Stock. The Exercise Price and number of shares of Common Stock and/or
type of securities or property issuable upon exercise of the Warrant are subject to adjustment upon the occurrence of certain events
as set forth in the Warrant Agreement. The Warrant evidenced by this Warrant Certificate shall not be exercisable after and shall
terminate and become void as of 5:00 P.M., New York time, on October __, 2019 (the “Expiration Date”).

 

The Warrant evidenced by this Warrant Certificate
is part of a duly authorized issue of warrants expiring on the Expiration Date entitling the Holder hereof to receive shares of
Common Stock, and is issued or to be issued pursuant to a Warrant Agreement dated October __, 2014 (the “Warrant Agreement”),
duly executed and delivered by the Company to American Stock Transfer & Trust Company, LLC, as warrant agent (the “Warrant
Agent”, which term includes any successor warrant agent under the Warrant Agreement), which Warrant Agreement is hereby incorporated
by reference in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Warrant Agent, the Company and the Holders (“Holders” meaning,
from time to time, the registered holders of the warrants issued thereunder). To the extent any provisions of this Warrant Certificate
conflicts with any provision of the Warrant Agreement, the provisions of the Warrant Agreement shall apply. A copy of the Warrant
Agreement may be obtained by the Holder hereof upon written request to the Company at 200 PrincetonSouth Corporate Center, Suite
180, Ewing, New Jersey 08628, Attn: Chief Financial Officer. Capitalized terms not defined herein have the meanings ascribed thereto
in the Warrant Agreement.

 

    	 

    	 

    

 

This Warrant may be exercised, in whole
or in part, at any time on or after October __, 2014 and on or before the Expiration Date, subject to the terms of the Warrant
Agreement including, but not limited to, Section 4 thereof, by surrendering this Warrant Certificate, with the Form of Election
to Purchase attached hereto properly completed and executed, together with payment of the Exercise Price in accordance with Section 5
or Section 10 of the Warrant Agreement. Each exercise must be for a whole number of Warrant Shares. In the event that upon any
exercise of the Warrant evidenced hereby the number of shares of Common Stock acquired shall be less than the total number of shares
of Common Stock which may be purchased pursuant to this Warrant, there shall be issued to the Holder hereof or such Holder’s
assignee a new Warrant Certificate evidencing the unexercised portion of this Warrant.

 

The Warrant Agreement provides that upon
the occurrence of certain events the Exercise Price set forth in this Warrant Certificate may, subject to certain conditions, be
adjusted, and that upon the occurrence of certain events the number of shares of Common Stock and/or the type of securities or
other property issuable upon the exercise of this Warrant shall be adjusted. No fractions of a share of Common Stock will be issued
upon the exercise of this Warrant, but the Company will pay the cash value thereof determined as provided in the Warrant Agreement.

 

Warrant Certificates, when surrendered at
the office of the Warrant Agent by the registered Holder thereof in person or by such Holder’s legal representative or attorney
duly appointed and authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant
Agreement, but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing
in the aggregate the right to purchase a like number of Warrant Shares.

 

Each taker and holder of this Warrant Certificate,
by taking or holding the same, consents and agrees that the holder of this Warrant Certificate when duly endorsed in blank may
be treated by the Company, the Warrant Agent and all other persons dealing with this Warrant Certificate as the absolute owner
hereof for any purpose and as the person entitled to exercise the rights represented hereby or the person entitled to the transfer
hereof on the register of the Company maintained by the Warrant Agent, any notice to the contrary notwithstanding, provided that
until such transfer on such register, the Company and the Warrant Agent may treat the registered Holder hereof as the owner for
all purposes.

 

This Warrant does not entitle any Holder
to any of the rights of a stockholder of the Company.

 

This Warrant Certificate and the Warrant
Agreement are subject to amendment as provided in the Warrant Agreement.

 

This Warrant Certificate shall not be valid
or obligatory for any purpose until it shall have been countersigned by the Warrant Agent.

 

    	2

    	 

    

 

IN WITNESS WHEREOF, the undersigned have
caused this Certificate to be executed as of the date set forth below.

 

	 	CELATOR PHARMACEUTICALS, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	Dated:	 	 
	 	 
	Countersigned:	 
	 	 
	AMERICAN STOCK TRANSFER &	 
	TRUST COMPANY, LLC	 
	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	3

    	 

    

 

EXHIBIT
B

 

Form
of Assignment

 

(To assign the foregoing
Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto _______________ the right represented by the foregoing Warrant to purchase
______ shares of Common Stock of Celator Pharmaceuticals, Inc. and all rights evidenced thereby are hereby assigned to

 

	Name:	 
	 	(Please Print)
	Address:	 
	 	(Please Print)
	Dated: _______________ __, ______	 

 

	Holder’s Signature:	 	 

 

	Holder’s Address:	 	 

 

    	 

    	 

    

 

EXHIBIT C

 

Form of Exercise Notice

 

(To be executed by the Holder to purchase
shares of Common Stock

under the foregoing Warrant)

 

Celator Pharmaceuticals, Inc.:

 

(1)         Description.
The undersigned is the Holder of the Warrant (the “Warrant”) issued by Celator Pharmaceuticals, Inc., a Delaware
corporation (the “Company”) to purchase ____________ shares of Common Stock (“Warrant Shares”) in accordance
with the terms of the Warrant and the Warrant Agreement. Capitalized terms used herein and not otherwise defined herein have the
respective meanings set forth in the Warrant and the Warrant Agreement.

 

(2)         Form
of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as:

 

_____ a Cash Exercise ; or

 

_____ a Cashless Exercise under Section
10 of the Warrant Agreement, with respect to the full exercise of the Warrant.

 

(3)         Payment
of Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares
to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price, in lawful money of the United States, in cash,
certified check or bank draft payable or by wire transfer to the order of the Warrant Agent (or as otherwise agreed to by the Company)
delivered to the Warrant Agent, together with any applicable taxes payable by the undersigned pursuant to the Warrant.

 

(4)         Delivery.
Pursuant to this Exercise Notice, the Company shall deliver to the Holder _____________ Warrant Shares in accordance with the terms
of the Warrant Agreement.

 

	Dated:	 	 

 

	Name of Holder:	 	 

 

	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

(Signature must conform in all respects to name of

Holder as specified on the face of the Warrant.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]