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                                                                EXHIBIT NO. 10.1

                                 DATASCOPE CORP.

                           2005 EQUITY INCENTIVE PLAN

1. PURPOSE. The purpose of Datascope Corp. 2005 Equity Incentive Plan (the
"Plan") is to attract and retain employees, consultants and non-employee
directors for Datascope Corp. and its subsidiaries and to provide such persons
with incentives and rewards for superior performance.

2. DEFINITIONS. As used in this Plan, the following terms shall be defined as
set forth below:

   2.1. "Award" means any Performance Shares, Performance Units, Options, Stock
Appreciation Rights, Restricted Shares or Deferred Shares granted under the
Plan.

   2.2. "Award Agreement" means an agreement, certificate, resolution or other
form of writing or other evidence approved by the Committee that sets forth the
terms and conditions of an Award. An Award Agreement may be in an electronic
medium, may be limited to a notation on the Company's books or records and shall
be signed by a representative of the Company and the Participant unless
otherwise approved by the Committee.

   2.3. "Base Price" means the price used as the basis for determining the
Spread upon the exercise of Stock Appreciation Right.

   2.4. "Board" means the Board of Directors of the Company.

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   2.5. "Cause" means, (a) if the applicable Participant is party to an
effective employment, consulting, severance or similar agreement with the
Company or any of its Subsidiaries, "Cause" shall have the same meaning as such
term is defined therein; (b) if the applicable Participant is not a party to an
effective employment, consulting severance or similar agreement or if no
definition of "Cause" is set forth in the applicable employment, consulting,
severance or similar agreement, "Cause" shall have the same meaning as such term
is defined in the applicable Award Agreement; and (c) if the applicable
Participant is not a party to any effective employment, consulting, severance or
similar agreement or no definition of "Cause is set forth in the applicable
employment, consulting, severance or similar agreement, and no definition of
"Cause" is set forth in the applicable Award Agreement, the existence of "Cause"
shall be determined in good faith by the Committee from time to time as
circumstances dictate; provided that the Committee shall provide notice to the
Participant of such determination and an opportunity for the Participant to cure
such event (if the Committee determines such event is reasonably curable).

   2.6. "Change in Control" means, after the effective date of the Plan:

       (i) the acquisition, directly or indirectly, by a "person" (within the
   meaning of Section 13(d)(3) of the Exchange Act) (a "Person") of beneficial
   ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
   Act) of more than 35% of the combined voting power of the voting securities
   of the Company entitled to vote generally in the election of directors (the
   "Voting Securities"); provided, however, that the following acquisitions
   shall not constitute a Change in Control: (a) any acquisition by or from the
   Company or any Subsidiary, or by any employee benefit plan (or related trust)
   sponsored or maintained by the Company or any Subsidiary, (b) any acquisition
   by a Person (including without limitation a trust maintained for the benefit
   of such Person or members of his family or any entity controlled by such
   Person and/or such trust) who as of the effective date of the Plan
   beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act),
   directly or indirectly, 15% or more of the Company's then outstanding Shares,
   (c) any acquisition by an individual who as of the effective date of the Plan
   is a member of the Board, (d) any acquisition by any underwriter in any firm
   commitment underwriting of securities to be issued by the Company, or (e) any
   acquisition by any corporation (or other entity) if, immediately following
   such acquisition, 65% or more of the then outstanding shares of common stock
   (or other equity unit) of such corporation (or other entity) and the combined
   voting power of the then outstanding voting securities of such corporation
   (or other entity), are beneficially owned, directly or indirectly, by all or
   substantially all of the individuals or entities who, immediately prior to
   such acquisition, were the beneficial owners of the then outstanding Shares
   and the Voting Securities in substantially the same proportions,
   respectively, as their ownership immediately prior to the acquisition of the
   Stock and Voting Securities; or

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       (ii) the consummation of the sale or other disposition of all or
   substantially all of the assets of the Company, other than to a wholly-owned
   Subsidiary or to a holding company of which the Company is a direct or
   indirect wholly owned subsidiary prior to such transaction; or

       (iii) the approval by stockholders of the Company of a reorganization,
   merger or consolidation of the Company, other than a reorganization, merger
   or consolidation, which would result in the Voting Securities outstanding
   immediately prior to the transaction continuing to represent (whether by
   remaining outstanding or by being converted to voting securities of the
   surviving entity) 65% or more of the Voting Securities or the voting power of
   the voting securities of such surviving entity outstanding immediately after
   such transaction; or

       (iv) the approval by stockholders of the Company of a plan of complete
   liquidation or substantial dissolution of the Company; or

       (v) the following individuals cease for any reason to constitute a
   majority of the Board: individuals who, as of the effective date of the Plan,
   constitute the Board and any new director (other than a director whose
   initial assumption of office is in connection with an actual or threatened
   election contest, including, but not limited to, a consent solicitation
   relating to the election of directors of the Company) whose appointment or
   election by the Board or nomination for election by the Company's
   stockholders was approved and recommended by a vote of at least two-thirds of
   the directors then still in office who either were directors on the effective
   date of the Plan or whose appointment, election or nomination for election
   was previously so approved or recommended; or

       (vi) the sale, transfer, assignment, distribution or other disposition by
   the Company and/or one of its Subsidiaries, in one transaction, or in a
   series of related transactions within any period of 18 consecutive calendar
   months (including, without limitation, by means of the sale, transfer,
   assignment, distribution or other disposition of the capital stock of any
   Subsidiary or Subsidiaries), of assets which account for an aggregate of 50%
   or more of the consolidated revenues of the Company and its Subsidiaries, as
   determined in accordance with U.S. generally accepted accounting principles,
   for the fiscal year most recently ended prior to the date of such transaction
   (or, in the case of a series of transactions as described above, the first
   such transaction); provided, however, that no such transaction shall be taken
   into account if substantially all the proceeds thereof (whether in cash or in
   kind) are used after such transaction in the ongoing conduct by the Company
   and/or its Subsidiaries of the business conducted by the Company and/or its
   Subsidiaries prior to such transaction; or

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       (vii) notwithstanding Sections 2.6(i) through 2.6(vi) above, in the case
   of a distribution under the Plan of an amount which is subject to section
   409A of the Code, an event which constitutes a "change in control event" as
   defined under Section 409A of the Code.

   2.7. "Code" means the Internal Revenue Code of 1986, as amended from time to
time and the regulations and other guidance issued thereunder.

   2.8. "Committee" means the Compensation Committee of the Board. The Committee
shall have at least two members, each of whom shall be a "non-employee director"
as defined in Rule 16b-3 under the Exchange Act and an "outside director" as
defined in Section 162(m) of the Code and the regulations thereunder, and, if
applicable meet the independence requirements of the applicable stock exchange,
quotation system or other self-regulatory organization on which the Shares are
traded.

   2.9. "Company" means Datascope Corp., a Delaware corporation, or any
successor corporation.

   2.10. "Consultant" means an individual (other than an Employee or a
Nonemployee Director) who renders services to the Company or a Subsidiary,
including an independent contractor or an advisor.

   2.11. "Deferral Period" means the period of time during which Deferred Shares
are subject to deferral limitations under Section 9.

   2.12. "Deferred Shares" means an Award pursuant to Section 9 of the right to
receive Shares at the end of a specified Deferral Period.

   2.13. "Employee" means any person, including an officer, employed by the
Company or a Subsidiary.

   2.14. "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, including rules thereunder and successor provisions and rules
thereto.

   2.15. "Fair Market Value" means, on any given date, unless otherwise
determined by the Committee, the average of the highest and lowest sale prices
reported as having occurred on the NASDAQ (or other principal exchange on which
the Shares are traded) on such date, or, if no sale was made on such date on
such principal exchange, on the last proceeding day on which the Shares were
traded.

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   2.16. "Grant Date" means the date specified by the Committee on which a grant
of an Award shall become effective, which shall not be earlier than the date on
which the Committee takes action with respect thereto.

   2.17. "Incentive Stock Option" means any Option which meets the requirements
of Section 422 of the Code and which is designated as an Incentive Stock Option
by the Committee.

   2.18. "Nonemployee Director" means a member of the Board who is not an
Employee.

   2.19. "Nonqualified Stock Option" means an Option that is not intended to
qualify as an Incentive Stock Option, and designated as a Nonqualified Stock
Option by the Committee.

   2.20. "Option" means any option to purchase Shares granted under Section 6.

   2.21. "Optionee" means the person so designated in an agreement evidencing an
outstanding Option.

   2.22. "Option Price" means the purchase price payable upon the exercise of an
Option.

   2.23. "Participant" means an Employee, Nonemployee Director or Consultant who
is selected by the Committee to receive Awards, provided that only Employees may
receive grants of Incentive Stock Options.

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   2.24. "Performance Objectives" means the performance objectives established
in the sole discretion of the Committee for Participants who are eligible to
receive Awards under the Plan. Performance Objectives may be described in terms
of Company-wide objectives or objectives that are related to the performance of
the individual Participant or the Subsidiary, division, department or function
within the Company or Subsidiary in which the Participant is employed.
Performance Objectives may be measured on an absolute or relative basis.
Relative performance may be measured by a group of peer companies or by a
financial market index. Any Performance Objectives applicable to a Qualified
Performance-Based Award shall be limited to: specified levels of or increases in
the Company's, a division's or a Subsidiary's return on capital, equity or
assets; earnings measures/ratios (on a gross, net, pre-tax or post-tax basis),
including diluted earnings per share, total earnings, operating earnings,
earnings growth, earnings before interest and taxes and earnings before
interest, taxes, depreciation and amortization; net economic profit (which is
operating earnings minus a charge to capital); net income; operating income;
sales; sales growth; gross margin; direct margin; Share price (including but not
limited to growth measures and total shareholder return), operating profit; per
period or cumulative cash flow (including but not limited to operating cash flow
and free cash flow) or cash flow return on investment (which equals net cash
flow divided by total capital); inventory turns; financial return ratios; market
share; balance sheet measurements such as receivable turnover; improvement in or
attainment of expense levels; improvement in or attainment of working capital
levels; debt reduction; strategic innovation; customer or employee satisfaction;
individual objectives; and any combination of the foregoing. If the Committee
determines that a change in the business, operations, corporate structure or
capital structure of the Company, or the manner in which it conducts its
business, or other events or circumstances render the Performance Objectives
unsuitable, the Committee may modify such Performance Objectives or the related
minimum acceptable level of achievement, in whole or in part, as the Committee
deems appropriate and equitable.

   2.25. "Performance Period" means a period of time established under Section 5
within which the Performance Objectives relating to Awards are to be achieved.

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   2.26. "Performance Share" means a bookkeeping entry that records the
equivalent of one Share awarded pursuant to Section 5.

   2.27. "Performance Unit" means a bookkeeping entry that records a unit
equivalent to $1.00 awarded pursuant to Section 5.

   2.28. "Qualified Performance-Based Award" means an Award or portion of an
Award that is intended to satisfy the requirements for "qualified
performance-based compensation" under Code Section 162(m). The Committee shall
designate any Qualified Performance-Based Award as such at the time of grant.

   2.29. "Restricted Shares" mean Shares granted under Section 8 subject to a
substantial risk of forfeiture.

   2.30. "Shares" means shares of the Common Stock of the Company, $.0l par
value, or any security into which Shares may be converted by reason of any
transaction or event of the type referred to in Section 14.

   2.31. "Spread" means, in the case of a Stock Appreciation Right, the amount
by which the Fair Market Value on the date when any such right is exercised
exceeds the Base Price specified in such right.

   2.32. "Stock Appreciation Right" means a right granted under Section 7.

   2.33. "Subsidiary" means a corporation or other entity in which the Company
has a direct or indirect ownership or other equity interest, provided that for
purposes of determining whether any person may be a Participant for purposes of
any grant of Incentive Stock Options, "Subsidiary" means any corporation (within
the meaning of the Code) in which the Company owns or controls directly or
indirectly more than 50 percent of the total combined voting power represented
by all classes of stock issued by such corporation at the time of such grant.

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3. SHARES AVAILABLE UNDER THE PLAN.

   3.1. Reserved Shares. Subject to adjustment as provided in Section 14, the
maximum number of Shares that may be (a) issued upon the exercise of Options or
Stock Appreciation Rights, (b) issued as Restricted Shares and released from
substantial risk of forfeiture, (c) issued in payment of Deferred Shares or
Performance Shares, or (d) issued in payment of dividend equivalents paid with
respect to Awards, shall not in the aggregate exceed 1,200,000 Shares. Such
Shares may be Shares of original issuance, Shares held in Treasury, or Shares
that have been reacquired by the Company. In addition:

       (i) To the extent any Shares covered by an Award are not issued to a
   Participant (or, if applicable, his heir, legatee or permitted transferee)
   because the Award is forfeited or canceled, or the Shares are not issued
   because the Award is settled in cash, such Shares shall not be deemed to have
   been issued for purposes of determining the maximum number of Shares
   available for issuance under the Plan.

       (ii) Shares issued under the Plan in settlement, assumption or
   substitution of outstanding awards (or obligations to grant future awards)
   under the plans or arrangements of another entity shall not reduce the
   maximum number of Shares available for issuance under the Plan, to the extent
   that such settlement, assumption or substitution is a result of the Company
   acquiring another entity (or an interest in another entity).

   3.2. Reduction Ratio. For purposes of Section 3.1, each Share issued pursuant
to an Award other than an Option shall reduce the number of Shares available for
issuance under the Plan by two Shares. For example, if all Awards under the Plan
are in the form of Restricted Shares, 600,000 Shares are available for issuance.

   3.3. ISO Maximum. In no event shall the number of Shares issued upon the
exercise of Incentive Stock Options exceed 120,000 Shares, subject to adjustment
as provided in Section 14.

   3.4. Maximum Annual Award. No Participant my receive Awards (including
performance-based Awards) representing more than 300,000 Shares in any one
fiscal year, subject to adjustment as provided in Section 14. The maximum
Qualified Performance-Based Award that may be granted to a Participant in any
one Performance Period is 300,000 Shares (subject to adjustment as provided in
Section 14) or, in the event the Award is paid in cash, $1,000,000.

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4. PLAN ADMINISTRATION.

   4.1. Committee Administration. This Plan shall be administered by the
Committee. The interpretation and construction by the Committee of any provision
of this Plan or of any Award Agreement and any determination by the Committee
pursuant to any provision of this Plan or any such agreement, notification or
document, shall be final and conclusive. No member of the Committee shall be
liable to any person for any such action taken or determination, other than one
made in bad faith.

   4.2. Committee Powers. The Committee shall have full authority to interpret
the Plan; to establish and amend rules and regulations relating to the Plan; to
select the Participants and determine the type of Awards to be made to
Participants, the number of shares subject to Awards and the terms, conditions,
restrictions and limitations of Awards; and to make all other determinations as
are necessary or advisable for the administration of the Plan.

   4.3. Committee Delegation. The Committee may delegate to one or more officers
of the Company the authority to grant Awards to Participants who are not subject
to the requirements of Section 16 of the Exchange Act or Section 162(m) of the
Code and the rules and regulations thereunder, provided that the Committee shall
have fixed the total number of Shares subject to such grants. Any such
delegation shall be subject to the limitations of Section 157(c) of the Delaware
General Corporation Law. The Committee may revoke any such allocation or
delegation at any time for any reason with or without prior notice.

5. PERFORMANCE SHARES AND PERFORMANCE UNITS. The Committee may authorize grants
of Performance Shares and Performance Units, which shall vest and become payable
to the Participant upon the achievement of specified Performance Objectives
during a specified Performance Period, upon such terms and conditions as the
Committee may determine in accordance with the following provisions:

   5.1. Terms and Conditions of Performance Share/Performance Unit Awards. Each
grant shall specify the number of Performance Shares or Performance Units to
which it pertains. The Performance Period with respect to each Performance Share
or Performance Unit shall commence on the Grant Date and may be subject to
earlier termination in the event of a Change in Control or other similar
transaction or event. Each grant shall specify the Performance Objectives that
are to be achieved by the Participant. Each grant may specify in respect of the
specified Performance Objectives a minimum acceptable level of achievement below
which no payment will be made and may set forth a formula for determining the
amount of any payment to be made if performance is at or above such minimum
acceptable level but falls short of the maximum achievement of the specified
Performance Objectives.

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   5.2. Payment of Performance Shares and Units. Each grant shall specify the
time and manner of payment of Performance Shares or Performance Units that shall
have been earned, and any grant may specify that any such amount may be paid by
the Company in cash, Shares or any combination thereof and may either grant to
the Participant or reserve to the Committee the right to elect among those
alternatives.

   5.3. Maximum Payment. Subject to Section 3.4 of the Plan, any grant of
Performance Shares may specify that the amount payable with respect thereto may
not exceed a maximum specified by the Committee on the Grant Date. Any grant of
Performance Units may specify that the amount payable, or the number of Shares
issued, with respect thereto may not exceed maximums specified by the Committee
on the Grant Date.

   5.4. Adjustment of Performance Objectives. The Committee may adjust
Performance Objectives and the related minimum acceptable level of achievement
if, in the sole judgment of the Committee, events or transactions have occurred
after the Grant Date that are unrelated to the performance of the Participant
and result in distortion of the Performance Objectives or the related minimum
acceptable level of achievement.

   5.5. Qualified Performance-Based Awards. In the case of a Qualified
Performance-Based Award the following provisions shall apply in addition to, and
where necessary, in lieu of other provisions of the Plan, including the
provisions of Sections 5.1 through 5.4:

       (i) Only Employees who are "Covered Employees" within the meaning of
   Section 162(m) of the Code shall be eligible to receive Qualified
   Performance-Based Awards. The Committee shall designate in its sole
   discretion which Covered Employees will be Participants for a Performance
   Period within the earlier of the (a) first 90 days of a Performance Period
   and (b) the lapse of 25% of the Performance Period.

       (ii) The Committee shall establish in writing within the earlier of the
   (a) first 90 days of a Performance Period and (b) the lapse of 25% of the
   Performance Period, and in any event, while the outcome is substantially
   uncertain, (x) Performance Objectives for the Performance Period, and (y) in
   respect of such Performance Objectives, a minimum acceptable level of
   achievement below which no payment will be made, and an objective formula or
   other method for determining the amount of any payment to be made if
   performance is at or above such minimum acceptable level but falls short of
   the maximum achievement of the specified Performance Objectives.

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       (iii) Following the completion of a Performance Period, the Committee
   shall review and certify in writing whether, and to what extent, the
   Performance Objectives for the Performance Period have been achieved and, if
   so, to also calculate and certify in writing the amount of the Qualified
   Performance-Based Awards earned for the period based upon the Performance
   Objectives and the related formulas or methods as determined pursuant to
   Section 5.5(ii). The Committee shall then determine the actual amount payable
   under each Participant's Award for the Performance Period, and, in doing so,
   may reduce or eliminate, unless otherwise and/or to the extent provided in
   the Award Agreement, the amount of the Award. In no event shall the Committee
   have the authority to (1) increase Award amounts to any Covered Employee.

       (iv) Subject to Section 20.2, Awards granted for a Performance Period
   shall be paid to Participants within a reasonable time after completion of
   the certification described in Section 5.5(iii).

   5.6. Other Awards. Any grant of an Award under Sections 6, 7, 8 or 9, and/or
the vesting or exercise thereof, may be further conditioned upon the attainment
of Performance Objectives established by the Committee in accordance with the
applicable provisions of this Section 5 regarding Performance Shares and
Performance Units.

6. OPTIONS. The Committee may from time to time authorize grants of Options to
Participants upon such terms and conditions as the Committee may determine in
accordance with the following provisions:

   6.1. Number of Shares. Each grant shall specify the number of Shares to which
it pertains.

   6.2. Option Price. Each grant shall specify an Option Price per Share, which
shall be equal to or greater than the Fair Market Value per Share on the Grant
Date; provided that in the case of any Incentive Stock Option granted to a
person who on any given date owns, either directly or indirectly (taking into
account the attribution rules contained in Section 424(d) of the Code), stock
possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company or any Subsidiary, the Option Price shall not be
less than 110% of the Fair Market Value of a Share on the date of grant.

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   6.3. Consideration. Each grant shall specify the form of consideration to be
paid in satisfaction of the Option Price and the manner of payment of such
consideration, which may include (i) cash in the form of currency or check or
other cash equivalent, in all such case as is acceptable to the Company, (ii)
nonforfeitable, unrestricted Shares owned by the Optionee, provided such Shares
have been held by the Participant for at least six months, (iii) any other legal
consideration that the Committee may deem appropriate, including without
limitation any form of consideration authorized under Section 6.4, on such basis
as the Committee may determine in accordance with this Plan, or (iv) any
combination of the foregoing.

   6.4. Payment of Option Price in Restricted Shares. On or after the Grant Date
of any Option other than an Incentive Stock Option, the Committee may determine
that payment of the Option Price may also be made in whole or in part in the
form of Restricted Shares or other Shares that are subject to risk of forfeiture
or restrictions on transfer, provided such Shares have been held by the
Participant for at least six months. Unless otherwise determined by the
Committee, whenever any Option Price is paid in whole or in part by means of any
of the forms of consideration specified in this Section 6.4, the Shares received
by the Optionee upon the exercise of the Options shall be subject to the same
risks of forfeiture or restrictions on transfer as those that applied to the
consideration surrendered by the Optionee, provided that such risks of
forfeiture and restrictions on transfer shall apply only to the same number of
Shares received by the Optionee as applied to the forfeitable or restricted
Shares surrendered by the Optionee.

   6.5. Cashless Exercise. To the extent such program is maintained by the
Company and permitted by applicable law, rule or regulations, the Option Price
may be satisfied from the proceeds of a sale through a bank or broker on the
date of exercise of some or all of the Shares to which the exercise relates
pursuant to a cashless exercise program provided by such bank or broker.

   6.6. Exercise Period. No Option granted may be exercised more than ten years
after the Grant Date; provided that in the case of any Incentive Stock Option
granted to a person who on any given date owns, either directly or indirectly
(taking into account the attribution rules contained in Section 424(d) of the
Code), stock possessing more than 10 percent of the total combined voting power
of all classes of stock of the Company or any Subsidiary, such Option shall be
exercised within five years after the Grant Date.

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   6.7. Disqualifying Dispositions of ISOs. Each Participant awarded an
Incentive Stock Option under the Plan shall notify the Company in writing
immediately after the date he or she makes a disqualifying disposition (as
defined in Section 421(b) of the Code) of any Shares acquired pursuant to the
exercise of such Incentive Stock Option. The Company may, if determined by the
Committee and in accordance with procedures established by it, retain possession
of any Shares acquired pursuant to the exercise of an Incentive Stock Option as
agent for the applicable Participant until the end of the period described in
the preceding sentence, subject to complying with any instructions from such
Participant as to the sale of such Shares.

7. STOCK APPRECIATION RIGHTS. The Committee may also authorize grants to
Participants of Stock Appreciation Rights. A Stock Appreciation Right is the
right of the Participant to receive from the Company an amount, which, shall be
determined by the Committee and shall be expressed as a percentage (not
exceeding 100 percent) of the Spread at the time of the exercise of such right.
Any grant of Stock Appreciation Rights shall be upon such terms and conditions
as the Committee may determine in accordance with the following provisions:

   7.1. Payment in Cash or Shares. Any grant may specify that the amount payable
upon the exercise of a Stock Appreciation Right may be paid by the Company in
cash, Shares or any combination thereof and may (a) either grant to the
Participant or reserve to the Committee the right to elect among those
alternatives or (b) preclude the right of the Participant to receive and the
Company to issue Shares or other equity securities in lieu of cash. Any grant
may specify that the amount payable upon the exercise of a Stock Appreciation
Right shall not exceed a maximum specified by the Committee on the Grant Date.

   7.2. Exercise Period. Any grant may specify (a) a waiting period or periods
before Stock Appreciation Rights shall become exercisable and (b) permissible
dates or periods on or during which Stock Appreciation Rights shall be
exercisable; provided that no Stock Appreciation Right granted may be exercised
more than ten years after the Grant Date. A grant may specify that a Stock
Appreciation Right may be exercised only in the event of a Change in Control or
other similar transaction or event.

   7.3. Base Price. Each grant shall specify in respect of each Stock
Appreciation Right a Base Price per Share, which shall be equal to or greater
than the Fair Market Value on the Grant Date.

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   7.4. Deemed Exercise. The Committee may provide that a Stock Appreciation
Right shall be deemed to be exercised at the close of business on the scheduled
expiration date of such Stock Appreciation Right if at such time the Stock
Appreciation Right by its terms remains exercisable and, if so exercised, would
result in a payment to the holder of such Stock Appreciation Right.

8. RESTRICTED SHARES. The Committee may also authorize grants to Participants of
Restricted Shares upon such terms and conditions as the Committee may determine
in accordance with the following provisions:

   8.1. Transfer of Shares. Each grant shall constitute an immediate transfer of
the ownership of Shares to the Participant in consideration of the performance
of services, subject to the substantial risk of forfeiture and restrictions on
transfer referred to in Section 10. Each grant may be made without additional
consideration from the Participant or in consideration of a payment by the
Participant that is less than the Fair Market Value on the Grant Date.

   8.2. Dividends. Any grant may require that any or all dividends or other
distributions paid on the Restricted Shares during the period of such
restrictions be reinvested in additional Shares or held in cash, which
additional Shares or cash, as the case may be, may be subject to the same
restrictions as the underlying Award or such other restrictions as the Committee
may determine.

9. DEFERRED SHARES. The Committee may authorize grants of Deferred Shares to
Participants upon such terms and conditions as the Committee may determine in
accordance with the following provisions:

   9.1. Deferred Transfer of Shares. Each grant shall constitute the agreement
by the Company to issue or transfer Shares to the Participant in the future in
consideration of the performance of services, subject to the fulfillment during
the Deferral Period of such conditions as the Committee may specify.

   9.2. Consideration. Each grant may be made without additional consideration
from the Participant or in consideration of a payment by the Participant that is
less than the Fair Market Value on the Grant Date.

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10. VESTING.

   10.1. In General. Each grant of Options and Stock Appreciation Rights shall
specify the period of continuous employment by the Company or any Subsidiary, or
service to the Company or any Subsidiary (and in the case of a Nonemployee
Director, service on the Board), of the Participant that is necessary before
such Options or Stock Appreciation Rights, or installments thereof, shall become
exercisable. Each grant of Restricted Shares shall specify the period during
which such Restricted Shares shall be subject to a "substantial risk of
forfeiture" within the meaning of Code Section 83, and each grant of Deferred
Shares shall specify the Deferral Period to which such Deferred Shares shall be
subject. Each grant of such Award may provide for the earlier exercise of
rights, termination of a risk of forfeiture or termination of a Deferral Period
in the event of a Change in Control or similar transaction or event.

   10.2. Restrictions on Transfer of Restricted Shares. Each grant of Restricted
Shares shall provide that, during the period for which a substantial risk of
forfeiture is to continue, the transferability of the Restricted Shares shall be
prohibited or restricted in the manner and to the extent prescribed by the
Committee on the Grant Date. Such restrictions may include, without limitation,
rights of repurchase or first refusal in the Company or provisions subjecting
the Restricted Shares to a continuing substantial risk of forfeiture in the
hands of any transferee.

11. DIVIDENDS; DIVIDEND EQUIVALENTS AND OTHER OWNERSHIP RIGHTS.

   11.1. Restricted Shares. Unless otherwise determined by the Committee, an
Award of Restricted Shares shall entitle the Participant to dividend, voting and
other ownership rights during the period for which a substantial risk of
forfeiture is to continue.

   11.2. Deferred Shares. Unless otherwise determined by the Committee, during
the Deferral Period, the Participant shall not have any right to transfer any
rights under an Award of Deferred Shares, shall not have any rights of ownership
in the Deferred Shares and shall not have any right to vote such Shares.

   11.3. Dividend Equivalents. Any grant of Performance Shares, Performance
Units, Stock Appreciation Rights, or Deferred Shares may provide for the payment
of dividend equivalents in cash or additional Shares thereon on a current,
deferred or contingent basis.

12. TRANSFERABILITY.

   12.1. Transfer Restrictions. Except as provided in Section 12.2, no Award
granted shall be transferable by a Participant other than by will or the laws of
descent and distribution, and Options and Stock Appreciation Rights shall be
exercisable during a Participant's lifetime only by the Participant or, in the
event of the Participant's legal incapacity, by his or her guardian or legal
representative acting in a fiduciary capacity on behalf of the Participant under
state law. Any attempt to transfer an Award in violation of this Plan shall
render such Award null and void.

<PAGE>

   12.2. Limited Transfer Rights. The Committee may expressly provide in an
Award Agreement (or an amendment to an Award Agreement) that a Participant may
transfer such Award (other than an Incentive Stock Option), in whole or in part,
to a spouse or lineal descendant (a "Family Member"), a trust for the exclusive
benefit of Family Members, a partnership or other entity in which all the
beneficial owners are Family Members, or any other entity affiliated with the
Participant that may be approved by the Committee. Subsequent transfers of
Awards shall be prohibited except in accordance with this Section 12.2. All
terms and conditions of the Award, including provisions relating to termination
of the Participant's employment or service with the Company or a Subsidiary,
shall continue to apply following a transfer made in accordance with this
Section 12.2. In order for a transfer to be effective, a Participant must agree
in writing prior to the transfer on a form provided by the Company to pay any
and all payroll and withholding taxes due upon exercise of the transferred
option. In addition, prior to the exercise of a transferred option by a
transferee, arrangements must be made by the Participant with the Company for
the payment of all payroll and withholding taxes. Finally, the Company shall be
under no obligation to provide a transferee with any notice regarding the
transferred Options held by the transferee upon forfeiture or any other
circumstance.

   12.3. Restrictions on Transfer. Any Award granted may provide that all or any
part of the Shares that are (a) to be issued or transferred by the Company upon
the exercise of Options or Stock Appreciation Rights, upon termination of the
Deferral Period applicable to Deferred Shares or upon payment under any grant of
Performance Shares or Performance Units, or (b) no longer subject to the
substantial risk of forfeiture and restrictions on transfer referred to in
Section 10, shall be subject to further restrictions upon transfer, including
restrictions relating to any minimum Share ownership requirements imposed by the
Company with respect to a Participant.

13. AWARD AGREEMENT. Each grant under the Plan shall be evidenced by an Award
Agreement, which shall describe the subject Award, state that the Award is
subject to all of the terms and conditions of this Plan and contain such other
terms and provisions as the Committee may determine consistent with this Plan.

<PAGE>

14. ADJUSTMENTS. The Committee may make or provide for such adjustments in the
(a) number of Shares covered by outstanding Options, Stock Appreciation Rights,
Deferred Shares, Restricted Shares and Performance Shares granted hereunder, (b)
prices per Share applicable to such Options and Stock Appreciation Rights, and
(c) kind of Shares covered thereby (including Shares of another issuer), as the
Committee in its sole discretion may in good faith determine to be equitably
required in order to prevent dilution or enlargement of the rights of
Participants that otherwise would result from (x) any stock dividend, stock
split, combination or exchange of Shares, recapitalization or other change in
the capital structure of the Company, (y) any merger, consolidation, spin-off,
spin-out, split-off, split-up, reorganization, partial or complete liquidation
or other distribution of assets (other than a normal cash dividend), issuance of
rights or warrants to purchase securities, or (z) any other corporate
transaction or event having an effect similar to any of the foregoing. Moreover,
in the event of any such transaction or event, the Committee may provide in
substitution for any or all outstanding Awards such alternative consideration as
it may in good faith determine to be equitable under the circumstances and may
require in connection therewith the surrender of all Awards so replaced. The
Committee may also make or provide for such adjustments in each of the
limitations specified in Section 3 as the Committee in its sole discretion may
in good faith determine to be appropriate in order to reflect any transaction or
event described in this Section 14. The Company shall give each Participant
notice of an adjustment hereunder and, upon notice, such adjustment shall be
conclusive and binding for all purposes.

15. FRACTIONAL SHARES. The Company shall not be required to issue any fractional
Shares pursuant to this Plan. The Committee may provide for the elimination of
fractions or for the settlement thereof in cash.

16. WITHHOLDING TAXES. The Company shall be entitled to deduct from any payment
under the Plan, regardless of the form of such payment, the amount of all
applicable income and employment taxes required by law to be withheld with
respect to such payment or may require the Participant to pay to it such tax
prior to and as a condition of the making of such payment. In accordance with
any applicable administrative guidelines it establishes, the Committee may allow
a Participant to pay the amount of taxes required by law to be withheld from an
Award by withholding from any payment of Shares due as a result of such Award,
or by permitting the Participant to deliver to the Company Shares having a Fair
Market Value, as determined by the Committee, equal to the minimum amount of
such required withholding taxes.

<PAGE>

17. CERTAIN TERMINATIONS OF EMPLOYMENT, HARDSHIP AND APPROVED LEAVES OF ABSENCE.
In the event of termination of employment by reason of death, disability, normal
retirement, early retirement with the consent of the Committee, other
termination of employment or a leave of absence that is approved by the
Committee, or in the event of hardship or other special circumstances that are
approved by the Committee, of a Participant who holds an Option or Stock
Appreciation Right that is not immediately and fully exercisable, any Restricted
Shares as to which the substantial risk of forfeiture or the prohibition or
restriction on transfer has not lapsed, any Deferred Shares as to which the
Deferral Period is not complete, any Performance Shares or Performance Units
that have not been fully earned, or any Shares that are subject to any transfer
restriction pursuant to Section 12.3, the Committee may, in its sole discretion,
take any action that it deems to be equitable under the circumstances or in the
best interests of the Company, including without limitation waiving or modifying
any limitation or requirement with respect to any Award and providing for
post-termination exercise periods with respect to any Option or Stock
Appreciation Right.

18. TERMINATION FOR CAUSE. A Participant who is terminated for Cause shall,
unless otherwise determined by the Committee, immediately forfeit, effective as
of the date the Participant engages in such conduct, all unexercised, unearned,
and/or unpaid Awards, including, but not by way of limitation, Awards earned but
not yet paid or exercised, all unpaid dividends and dividend equivalents, and
all interest, if any, accrued on the foregoing.

19. FOREIGN PARTICIPANTS. In order to facilitate the making of any grant or
combination of grants under this Plan, the Committee may provide for such
special terms for Awards to Participants who are foreign nationals, or who are
employed by or perform services for the Company or any Subsidiary outside of the
United States of America, as the Committee may consider necessary or appropriate
to accommodate differences in local law, tax policy or custom. Moreover, the
Committee may approve such supplements to, or amendments, restatements or
alternative versions of, this Plan as it may consider necessary or appropriate
for such purposes without thereby affecting the terms of this Plan as in effect
for any other purpose, provided that no such supplements, amendments,
restatements or alternative versions shall include any provisions that are
inconsistent with the terms of this Plan, as then in effect, unless this Plan
could have been amended to eliminate such inconsistency without further approval
by the shareholders of the Company.

<PAGE>

20. AMENDMENTS AND OTHER MATTERS.

   20.1. Plan Amendments. This Plan may be amended from time to time by the
Board, but no such amendment shall increase any of the limitations specified in
Section 3, other than to reflect an adjustment made in accordance with Section
14, without the further approval of the shareholders of the Company. The Board
may condition any amendment on the approval of the shareholders of the Company
if such approval is necessary or deemed advisable with respect to the applicable
listing or other requirements of a national securities exchange or other
applicable laws, policies or regulations.

   20.2. Award Deferrals. An Award Agreement may provide that payment of any
Award, dividend, or dividend equivalent, or any portion thereof, may be deferred
by a Participant until such time as the Committee may establish. All such
deferrals shall be accomplished by the delivery of a written, irrevocable
election by the Participant prior to the time established by the Committee for
such purpose, on a form provided by the Company. Deferred Awards may also be
credited with interest, at such rates to be determined by the Committee, and,
with respect to those deferred Awards denominated in the form of Shares, with
dividends or dividend equivalents.

   20.3. Conditional Awards. The Committee may condition the grant of any Award
or combination of Awards on the surrender or deferral by the Participant of his
or her right to receive a cash bonus or other compensation otherwise payable by
the Company or any Subsidiary to the Participant.

   20.4. Repricing Prohibited. No Award may be repriced, replaced, regranted
through cancellation, or modified, directly or indirectly, without the approval
of the shareholders of the Company, provided that nothing herein shall prevent
the Committee from taking any action provided for in Section 14.

   20.5. Amendments to Awards. Subject to the requirements of Section 20.4, the
Committee may at any time unilaterally amend any unexercised, unearned, or
unpaid Award, including, but not by way of limitation, Awards earned but not yet
paid, to the extent it deems appropriate (including for the purposes of
compliance with local laws and regulations or to avoid costly government
filings); provided, however, that any such amendment which, in the opinion of
the Committee, is adverse to the Participant shall require the Participant's
consent.

   20.6. No Employment Right. This Plan shall not confer upon any Participant
any right with respect to continuance of employment or other service with the
Company or any Subsidiary and shall not interfere in any way with any right that
the Company or any Subsidiary would otherwise have to terminate any
Participant's employment or other service at any time.

<PAGE>

21. CHANGE IN CONTROL. Except as otherwise provided at the time of grant in an
Award Agreement relating to a particular Award and subject to the requirements
of Section 14, if a Change in Control occurs, then:

   21.1. The Participant's Restricted Shares, Deferred Shares, Performance
Shares, Performance Units or other Share-based Awards that were forfeitable
shall, unless otherwise determined by the Committee, become nonforfeitable and,
to the extent applicable, shall be converted into Shares.

   21.2. Any unexercised Option or Stock Appreciation Right, whether or not
exercisable on the date of such Change in Control, shall thereupon be fully
exercisable and may be exercised, in whole or in part.

   21.3. Notwithstanding Sections 21.1 and 21.2, in the event of a Change in
Control, the Committee may in its discretion cancel any outstanding Awards and
(a) pay to the holders thereof, in cash or stock, or any combination thereof,
the value of such Awards based upon the price per share of Stock received or to
be received by other shareholders of the Company in the event or (b) arrange for
fully vested substitute awards to be granted to the holders thereof, denominated
in the equity of the acquirer or an affiliate thereof, provided such substitute
awards substantially preserve the value of the substituted Awards.

   21.4. If a Change in Control occurs during the term of one or more
Performance Periods for which the Committee has granted performance-based Awards
pursuant to the provisions of Section 5, the term of each such Performance
Period (hereinafter a "current Performance Period") shall immediately terminate
upon the occurrence of such Change in Control. Upon a Change in Control, for
each current Performance Period and each completed Performance Period for which
the Committee has not on or before such date made a determination as to whether
and to what degree the Performance Objectives for such period have been attained
(hereinafter a "completed Performance Period"), it shall be assumed that the
Performance Objectives have been attained at a level of one hundred percent
(100%) or the equivalent thereof. A Participant in one or more current
Performance Periods shall be considered to have earned and, therefore, be
entitled to receive, a prorated portion of the Award previously granted to him
for each such current Performance Period. Such prorated portion shall be
determined by multiplying the number of Performance Shares or Performance Units
(or other performance-based Awards), as the case may be, granted to the
Participant by a fraction, the numerator of which is the total number of days
that have elapsed since the beginning of the current Performance Period, and the
denominator of which is the total number of days in such current Performance
Period. A Participant in one or more completed Performance Periods shall be
considered to have earned and, therefore, be entitled to receive all the
Performance Shares or Performance Units (or other performance-based Awards), as
the case may be, previously granted to him during each such completed
Performance Period.

<PAGE>

   21.5. Unless otherwise provided by the Committee, at any time, upon a Change
in Control, any Awards deferred by a Participant under Section 20.2, but for
which he or she has not received payment as of such date, shall be paid as soon
as practicable, but in no event later than 90 days after the Change in Control.

22. EFFECTIVE DATE. This Plan shall become effective upon its approval by the
shareholders of the Company.

23. TERMINATION. This Plan shall terminate on the tenth anniversary of the date
upon which it is approved by the shareholders of the Company, and no Award shall
be granted after that date.

24. ARBITRATION OF DISPUTES. Any and all disputes arising out of or relating to
the Plan or any Award Agreement (or breach thereof) shall be resolved
exclusively through binding arbitration in the State of New Jersey in accordance
with the rules of the American Arbitration Association then in effect.

25. REGULATORY APPROVALS AND LISTINGS. Notwithstanding anything contained in
this Plan to the contrary, the Company shall have no obligation to issue or
deliver certificates of Shares evidencing Awards or any other Award resulting in
the payment of Shares prior to (i) the obtaining of any approval from any
governmental agency which the Company shall, in its sole discretion, determine
to be necessary or advisable, (ii) the admission of such Shares to listing on
the stock exchange on which the Shares may be listed, and (iii) the completion
of any registration or other qualification of said Shares under any state or
federal law or ruling of any governmental body which the Company shall, in its
sole discretion, determine to be necessary or advisable. The Committee may, from
time to time, impose additional restrictions upon an Award, including but not
limited to, restrictions regarding tax withholdings and restrictions regarding
the Participant's ability to exercise Awards under the Company's broker-assisted
stock option exercise program.

26. NO RIGHT, TITLE, OR INTEREST IN COMPANY ASSETS. No Participant shall have
any rights as a stockholder of the Company as a result of participation in the
Plan until the date of issuance of a stock certificate in his or her name, and,
in the case of Restricted Shares, such rights are granted to the Participant
under the Plan. To the extent any person acquires a right, to receive payments
from the Company under the Plan, such rights shall be no greater than the rights
of an unsecured creditor of the Company and the Participant shall not have any
rights in or against any specific assets of the Company. All of the Awards
granted under the Plan shall be unfunded.

<PAGE>

27. NO GUARANTEE OF TAX CONSEQUENCES. Notwithstanding any other provision of the
Plan, no person connected with the Plan in any capacity, including, but not
limited to, the Company and its directors, officers, agents and employees, makes
any representation, commitment, or guarantee that any tax treatment, including,
but not limited to, federal, state and local income, estate and gift tax
treatment, will be applicable with respect to the tax treatment of any Award,
any amounts deferred under the Plan, or paid to or for the benefit of a
Participant under the Plan, or that such tax treatment will apply to or be
available to a Participant on account of participation in the Plan, or that any
of the foregoing amounts will not be subject to the 20% penalty tax and interest
under Section 409A of the Code.

28. GOVERNING LAW. The validity, construction and effect of this Plan and any
Award hereunder will be determined in accordance with the laws of the State of
Delaware.WARRANT AGREEMENT

      This Warrant  Agreement (this  "Agreement") made as of _________ __, 2005,
by and between Star Maritime  Acquisition  Corp., a Delaware  corporation,  with
offices at c/o Schwartz & Weiss,  P.C., 457 Madision Avenue,  New York, New York
10022  ("Company"),  and American  Stock  Transfer & Trust  Company,  a New York
corporation,  with offices at 59 Maiden Lane, New York, New York 10038 ("Warrant
Agent").

      WHEREAS, the Company is engaged in a public offering ("Public Offering")
of Units ("Units") and, in connection therewith, has determined to issue and
deliver up to 21,697,625 Warrants (the "Public Warrants") to the public
investors, each of such Public Warrants evidencing the right of the holder
thereof to purchase one share of common stock, par value $.0001 per share, of
the Company's Common Stock ("Common Stock") for $8.00, subject to adjustment as
described herein; and

      WHEREAS, the Company has filed with the Securities and Exchange Commission
(the "SEC") a Registration Statement, No. 333-125662 on Form S-1 ("Registration
Statement") for the registration under the Securities Act of 1933, as amended
("Act") of, among other securities, the Public Warrants and the Common Stock
issuable upon exercise of the Warrants; and

      WHEREAS, the Company intends to issue 1,132,500 warrants in a private
placement (the "Private Placement") immediately prior to the public offering,
which warrants (the "Private Warrants") will be substantially identical to the
Public Warrants; and

      WHEREAS,  the Company  desires  the Warrant  Agent to act on behalf of the
Company,  and the  Warrant  Agent is willing to so act, in  connection  with the
issuance,  registration,  transfer,  exchange,  redemption  and  exercise of the
Public Warrants and the Private Warrants (collectively, the "Warrants"); and

      WHEREAS, the Company desires to provide for the form and provisions of the
Warrants,  the terms upon which  they  shall be issued  and  exercised,  and the
respective  rights,  limitation of rights,  and  immunities of the Company,  the
Warrant Agent, and the holders of the Warrants; and

      WHEREAS,  all acts and  things  have  been  done and  performed  which are
necessary  to make the  Warrants,  when  executed  on behalf of the  Company and
countersigned  by or on behalf of the Warrant  Agent,  as provided  herein,  the
valid,  binding and legal  obligations  of the  Company,  and to  authorize  the
execution and delivery of this Agreement.

      NOW,   THEREFORE,   in  consideration  of  the  mutual  agreements  herein
contained, the parties hereto agree as follows:

1. Appointment of Warrant Agent.
The Company  hereby  appoints the Warrant  Agent to act as agent for the Company
for the Warrants,  and the Warrant  Agent hereby  accepts such  appointment  and
agrees to perform the same in accordance with the terms and conditions set forth
in this Agreement.

2. Warrants.

      2.1 Form of Warrant. Each Warrant shall be issued in registered form only,
shall be in substantially the form of Exhibit A hereto,  the provisions of which
are incorporated herein, and shall be signed by, or bear the facsimile signature
of,  the  Chairman  of the  Board  or Chief  Executive  Officer  and  Treasurer,
Secretary  or  Assistant  Secretary of the Company and shall bear a facsimile of
the Company's seal. In the event the person whose  facsimile  signature has been
placed upon any Warrant shall have ceased to serve in the capacity in which such
person signed the Warrant  before such Warrant is issued,  it may be issued with
the  same  effect  as if he or she had  not  ceased  to be  such at the  date of
issuance.

<PAGE>

      2.2  Effect of  Countersignature.  Unless and until  countersigned  by the
Warrant Agent pursuant to this  Agreement,  a Warrant shall be invalid and of no
effect and may not be exercised by the holder thereof.

      2.3 Registration.

            2.3.1  Warrant  Register.  The Warrant  Agent shall  maintain  books
("Warrant   Register")  for  the  registration  of  original  issuance  and  the
registration  of transfer  of the  Warrants.  Upon the  initial  issuance of the
Warrants,  the Warrant  Agent shall issue and register the Warrants in the names
of the  respective  holders  thereof  in such  denominations  and  otherwise  in
accordance with instructions delivered to the Warrant Agent by the Company.

            2.3.2 Registered  Holder.  Prior to due presentment for registration
of transfer of any Warrant, the Company and the Warrant Agent may deem and treat
the person in whose  name such  Warrant  shall be  registered  upon the  Warrant
Register  ("registered  holder"),  as the absolute  owner of such Warrant and of
each Warrant represented thereby  (notwithstanding  any notation of ownership or
other writing on the Warrant  Certificate  made by anyone other than the Company
or the Warrant  Agent),  for the purpose of any  exercise  thereof,  and for all
other purposes,  and neither the Company nor the Warrant Agent shall be affected
by any notice to the contrary.

      2.4 Detachability of Warrants. The securities comprising the Units will
begin to trade separately on the 20th trading day after the earlier to occur of
the expiration of the underwriters' over-allotment option or its exercise in
full, provided that in no event may the separate trading of the securities
comprising the Units occur until the Company files a Current Report on Form 8-K,
which includes an audited balance sheet reflecting the receipt by the Company of
the gross proceeds of the Public Offering including the proceeds received by the
Company from the exercise of the Underwriter's over-allotment option, if the
over-allotment option is exercised prior to the filing of the Form 8-K.

3. Terms and Exercise of Warrants

      3.1 Warrant Price.  Each Warrant shall,  when  countersigned by the
Warrant Agent, entitle the registered holder thereof,  subject to the provisions
of such  Warrant and of this  Warrant  Agreement,  to purchase  from the
Company the number of shares of Common  Stock  stated  therein,  at the price of
$8.00 per whole share,  subject to the adjustments  provided in Section 4 hereof
and in the last  sentence of this Section  3.1.  The term "Warrant Price" as
used in this Warrant  Agreement  refers to the price  per share at which  Common
Stock may be  purchased  at the time a Warrant is exercised.  The Company in its
sole  discretion may lower the Warrant Price at any time prior to the Expiration
Date for a period of not less than ten business days.

                                       2
<PAGE>

      3.2  Duration  of  Warrants.  A Warrant may be  exercised  only during the
period  ("Exercise  Period")  commencing on the later of the consummation by the
Company of a merger, capital stock exchange,  asset acquisition or other similar
business  combination  (as described more fully in the  Registration  Statement,
"Business  Combination")  or __________,  2006 and terminating at 5:00 p.m., New
York City time on the earlier to occur of  (i)__________,  2009 or (ii) the date
fixed for  redemption of the Warrants as provided in Section 6 of this Agreement
("Expiration Date").  Except with respect to the right to receive the Redemption
Price (as set forth in Section 6  hereunder),  each Warrant not  exercised on or
before the Expiration Date shall become void, and all rights  thereunder and all
rights in respect  thereof  under  this  Agreement  shall  cease at the close of
business on the Expiration  Date. The Company in its sole  discretion may extend
the duration of the Warrants by delaying the Expiration Date; provided, however,
that the Company will provide notice to registered holders of the Warrants of
such extension of not less than 20 days.

      3.3 Exercise of Warrants.

            3.3.1  Payment.  Subject to the  provisions  of the Warrant and this
Warrant  Agreement,  a Warrant,  when countersigned by the Warrant Agent, may be
exercised by the registered  holder thereof by surrendering it, at the office of
the Warrant Agent,  or at the office of its successor as Warrant  Agent,  in the
Borough of Manhattan, City and State of New York, with the subscription form, as
set forth in the Warrant, duly executed,  and by paying in full, in lawful money
of the United States,  in cash,  good certified check or good bank draft payable
to the order of the  Company,  the  Warrant  Price for each full share of Common
Stock as to which the Warrant is exercised and any and all applicable  taxes due
in connection with the exercise of the Warrant,  the exchange of the Warrant for
the Common Stock, and the issuance of the Common Stock.

            3.3.2 Issuance of  Certificates.  As soon as  practicable  after the
exercise of any Warrant and the clearance of the funds in payment of the Warrant
Price,  the  Company  shall  issue to the  registered  holder of such  Warrant a
certificate  or  certificates  for the number of full shares of Common  Stock to
which  he,  she or it is  entitled,  registered  in such name or names as may be
directed by him, her or it, and if such Warrant shall not have been exercised in
full,  a new  countersigned  Warrant  for the  number of shares as to which such
Warrant  shall not have  been  exercised.  Notwithstanding  the  foregoing,  the
Company  shall not be  obligated  to  deliver  any  securities  pursuant  to the
exercise of a Warrant  unless (i) a  registration  statement  under the Act with
respect to the Common Stock issuable upon such exercise is effective, or (ii) in
the opinion of counsel to the  Company,  the  exercise of the Warrants is exempt
from the registration  requirements of the Act and such securities are qualified
for sale or exempt from  qualification  under applicable  securities laws of the
states or other  jurisdictions in which the registered holders reside.  Warrants
may not be exercised by, or securities  issued to, any registered  holder in any
state in  which  such  exercise  or  issuance  would be  unlawful.

            3.3.3 Valid  Issuance.  All shares of Common  Stock  issued upon the
proper  exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable.

                                       3
<PAGE>

            3.3.4  Date  of  Issuance.  Each  person  in  whose  name  any  such
certificate  for  shares of Common  Stock is issued  shall for all  purposes  be
deemed to have  become the holder of record of such  shares on the date on which
the  Warrant  was  surrendered  and  payment  of the  Warrant  Price  was  made,
irrespective  of the date of delivery of such  certificate,  except that, if the
date of such  surrender and payment is a date when the stock  transfer  books of
the Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business  on the next  succeeding  date on which the
stock transfer books are open.

            3.3.5 Warrant Solicitation and Warrant Solicitation Fee.

            (a)  The  Company  has  engaged  Maxim  Group  LLC  ("Maxim"),  on a
non-exclusive  basis,  as its agent for the  solicitation of the exercise of the
Warrants.  The Company,  at its cost, will (i) assist Maxim with respect to such
solicitation,  if requested by Maxim,  and (ii)  provide  Maxim,  and direct the
Company's transfer agent and the Warrant Agent to deliver to Maxim, lists of the
record and, to the extent known,  beneficial  owners of the Company's  Warrants.
The Company hereby  instructs the Warrant Agent to cooperate with Maxim in every
respect in connection with Maxim's solicitation  activities,  including, but not
limited to,  providing  to Maxim,  at the  Company's  cost, a list of record and
beneficial  holders of the Warrants  and  circulating  a prospectus  or offering
circular disclosing the compensation arrangements referenced in Section 3.3.5(b)
below to holders of the  Warrants at the time of exercise  of the  Warrants.  In
addition to the  conditions  set forth in Section  3.3.5(b),  Maxim shall accept
payment of the warrant  solicitation fee provided in Section 3.3.5(b) only if it
has provided bona fide  services to the Company in connection  with the exercise
of the  Warrants  and only to the extent  that an  investor  who  exercises  his
Warrants specifically  designates,  in writing, that Maxim solicited his, her or
its  exercise.  In  addition to  soliciting,  either  orally or in writing,  the
exercise  of  Warrants  by a Warrant  holder,  such  services  may also  include
disseminating information, either orally or in writing, to Warrant holders about
the Company or the market for the  Company's  securities,  or  assisting  in the
processing of the exercise of Warrants.

            (b) In each  instance in which a Warrant is  exercised,  the Warrant
Agent shall  promptly  give written  notice of such  exercise to the Company and
Maxim ("Warrant Agent's Exercise Notice").  If, upon the exercise of any Warrant
more than one year from the effective date of the  Registration  Statement,  (i)
the market  price of the  Company's  Common  Stock is greater  than the  Warrant
Price,  (ii)  disclosure of  compensation  arrangements  between the Company and
Maxim with respect to the  solicitation of the exercise of the Warrants was made
both at the time of the Public Offering and at the time of exercise (by delivery
of  the  Prospectus  or  as  otherwise  required  by  applicable  law,  rule  or
regulation),  (iii) the  holder of the  Warrant  confirms  in  writing  that the
exercise of the Warrant was solicited by Maxim, (iv) the Warrant was not held in
a discretionary account, and (v) the solicitation of the exercise of the Warrant
was not in violation of Regulation M (as such rule or any successor  rule may be
in effect as of such time of exercise) promulgated under the Securities Exchange
Act of  1934,  as  amended,  then the  Warrant  Agent,  simultaneously  with the
distribution  of the Common  Stock  underlying  the  Warrants  so  exercised  in
accordance  with the  instructions  from the  Company  following  receipt of the
proceeds to the Company  received upon exercise of such  Warrant(s),  shall,  on
behalf of the Company,  pay a fee of 5% of the Warrant Price to Maxim,  provided
that Maxim  delivers to the Warrant Agent within ten (10) business days from the
date on which  Maxim  has  received  the  Warrant  Agent's  Exercise  Notice,  a
certificate that the conditions set forth in the preceding  clauses (iii),  (iv)
and (v) have been satisfied.  Notwithstanding the foregoing, no fee will be paid
to Maxim with respect to the exercise by the Underwriters or their affiliates or
the  Company's  officers or  directors  of Warrants  purchased by it or them and
still held by them for its or their own  account.  Maxim and the  Company may at
any time during  business  hours,  examine  the  records of the  Warrant  Agent,
including its ledger of original  Warrant  certificates  returned to the Warrant
Agent upon exercise of Warrants.

                                       4
<PAGE>

                  (c) The provisions of this Section 3.3.5. may not be modified,
amended or deleted without the prior written consent of Maxim.

4. Adjustments.

      4.1 Stock  Dividends  Split Ups. If after the date hereof,  and subject to
the provisions of Section 4.6 below, the number of outstanding  shares of Common
Stock is increased by a stock dividend  payable in shares of Common Stock, or by
a split up of shares of Common  Stock,  or other  similar  event,  then,  on the
effective date of such stock dividend,  split up or similar event, the number of
shares of Common Stock  issuable on exercise of each Warrant  shall be increased
in proportion to such increase in outstanding shares of Common Stock.

      4.2  Aggregation of Shares.  If after the date hereof,  and subject to the
provisions of Section 4.6, the number of  outstanding  shares of Common Stock is
decreased   by  a   consolidation,   combination,   reverse   stock   split   or
reclassification  of shares of Common Stock or other similar event, then, on the
effective  date  of  such  consolidation,   combination,  reverse  stock  split,
reclassification or similar event, the number of shares of Common Stock issuable
on exercise of each Warrant shall be decreased in proportion to such decrease in
outstanding shares of Common Stock.

      4.3 Adjustments in Exercise Price. Whenever the number of shares of Common
Stock purchasable upon the exercise of the Warrants is adjusted,  as provided in
Section 4.1 and 4.2 above,  the Warrant  Price shall be adjusted (to the nearest
cent) by multiplying such Warrant Price  immediately prior to such adjustment by
a fraction  (x) the  numerator  of which shall be the number of shares of Common
Stock  purchasable upon the exercise of the Warrants  immediately  prior to such
adjustment,  and (y) the  denominator  of which shall be the number of shares of
Common Stock so purchasable immediately thereafter.

      4.4  Replacement of Securities  upon  Reorganization,  etc. In case of any
reclassification  or  reorganization  of the outstanding  shares of Common Stock
(other than a change covered by Section 4.1 or 4.2 hereof or that solely affects
the par value of such shares of Common  Stock),  or in the case of any merger or
consolidation  of the Company  with or into  another  corporation  (other than a
consolidation  or merger in which the Company is the continuing  corporation and
that  does  not  result  in  any   reclassification  or  reorganization  of  the
outstanding shares of Common Stock), or in the case of any sale or conveyance to
another  corporation or entity of the assets or other property of the Company as
an entirety or substantially as an entirety in connection with which the Company
is dissolved,  the Warrant  holders shall  thereafter have the right to purchase
and receive,  upon the basis and upon the terms and conditions  specified in the
Warrants  and in lieu of the shares of Common  Stock of the Company  immediately
theretofore   purchasable  and  receivable  upon  the  exercise  of  the  rights
represented  thereby, the kind and amount of shares of stock or other securities
or   property   (including   cash)   receivable   upon  such   reclassification,
reorganization,  merger or  consolidation,  or upon a dissolution  following any
such sale or  transfer,  that the  Warrant  holder  would have  received if such
Warrant  holder had exercised his, her or its  Warrant(s)  immediately  prior to
such event;  and if any  reclassification  also results in a change in shares of
Common Stock covered by Section 4.1 or 4.2, then such  adjustment  shall be made
pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The  provisions of this
Section   4.4   shall   similarly   apply   to   successive   reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

                                       5
<PAGE>

      4.5 Notices of Changes in Warrant.  Upon every  adjustment  of the Warrant
Price or the number of shares  issuable on  exercise  of a Warrant,  the Company
shall give written notice thereof to the Warrant Agent, which notice shall state
the Warrant Price  resulting from such  adjustment and the increase or decrease,
if any, in the number of shares purchasable at such price upon the exercise of a
Warrant,  setting forth in reasonable  detail the method of calculation  and the
facts upon which such  calculation  is based.  Upon the  occurrence of any event
specified in Sections 4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company
shall give written notice to the Warrant  holder,  at the last address set forth
for such holder in the  Warrant  Register,  of the record date or the  effective
date of the event. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such event.

      4.6 No Fractional Shares.  Notwithstanding any provision contained in this
Warrant Agreement to the contrary, the Company shall not issue fractional shares
upon exercise of Warrants. If, by reason of any adjustment made pursuant to this
Section 4, the holder of any Warrant  would be  entitled,  upon the  exercise of
such Warrant,  to receive a fractional  interest in a share,  the Company shall,
upon such  exercise,  round up to the  nearest  whole  number  the number of the
shares of Common Stock to be issued to the Warrant holder.

      4.7 Form of Warrant.  The form of Warrant  need not be changed  because of
any  adjustment  pursuant  to this  Section 4, and  Warrants  issued  after such
adjustment  may state the same Warrant Price and the same number of shares as is
stated in the Warrants initially issued pursuant to this Agreement. However, the
Company  may at any time in its sole  discretion  make any change in the form of
Warrant  that the  Company  may deem  appropriate  and that does not  affect the
substance thereof,  and any Warrant thereafter issued or countersigned,  whether
in exchange or substitution for an outstanding  Warrant or otherwise,  may be in
the form as so changed.

5. Transfer and Exchange of Warrants.

      5.1  Registration  of  Transfer.  The  Warrant  Agent shall  register  the
transfer,  from  time to time,  of any  outstanding  Warrant  upon  the  Warrant
Register,  upon surrender of such Warrant for transfer,  properly  endorsed with
signatures properly  guaranteed and accompanied by appropriate  instructions for
transfer.  Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the
Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent
to the Company from time to time upon request.

                                       6
<PAGE>

      5.2 Procedure for Surrender of Warrants.  Warrants may be  surrendered  to
the Warrant Agent, together with a written request for exchange or transfer, and
thereupon  the Warrant  Agent shall issue in exchange  therefor  one or more new
Warrants as requested by the registered  holder of the Warrants so  surrendered,
representing an equal aggregate number of Warrants;  provided,  however, that in
the event that a Warrant  surrendered  for transfer bears a restrictive  legend,
the  Warrant  Agent  shall not cancel  such  Warrant  and issue new  Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for
the Company  stating that such transfer may be made and  indicating  whether the
new Warrants must also bear a restrictive legend.

      5.3 Fractional Warrants. The Warrant Agent shall not be required to effect
any  registration of transfer or exchange which will result in the issuance of a
warrant certificate for a fraction of a warrant.

      5.4 Service  Charges.  No service charge shall be made for any exchange or
registration of transfer of Warrants.

      5.5 Warrant  Execution and  Countersignature.  The Warrant Agent is hereby
authorized to countersign  and to deliver,  in accordance with the terms of this
Agreement, the Warrants required to be issued pursuant to the provisions of this
Section 5, and the Company,  whenever required by the Warrant Agent, will supply
the Warrant  Agent with Warrants duly executed on behalf of the Company for such
purpose.

6. Redemption.

      6.1  Redemption.  Subject to Section 6.4 hereof,  not less than all of the
outstanding Warrants may be redeemed,  at the option of the Company, at any time
after they become  exercisable and prior to their  expiration,  at the office of
the Warrant Agent,  upon the notice  referred to in Section 6.2, at the price of
$.01 per Warrant ("Redemption Price"), provided that the last sales price of the
Common  Stock has been equal to or  greater  than  $14.25 per share,  on each of
twenty (20) trading days within any thirty (30) trading day period ending on the
third business day prior to the date on which notice of redemption is given. The
provisions of this Section 6.1 may not be modified,  amended or deleted  without
the prior written consent of Maxim.

      6.2 Date Fixed for,  and Notice of,  Redemption.  In the event the Company
shall elect to redeem all of the Warrants,  the Company shall fix a date for the
redemption.  Notice of redemption  shall be mailed by first class mail,  postage
prepaid,  by the  Company  not less  than 30 days  prior to the date  fixed  for
redemption  to the  registered  holders of the  Warrants to be redeemed at their
last addresses as they shall appear on the Warrant  Register.  Any notice mailed
in the manner herein provided shall be  conclusively  presumed to have been duly
given whether or not the registered holder received such notice.

      6.3 Exercise After Notice of Redemption.  The Warrants may be exercised in
accordance with Section 3 of this Warrant  Agreement at any time after notice of
redemption  shall have been given by the Company  pursuant to Section 6.2 hereof
and prior to the time and date fixed for redemption. On and after the redemption
date,  the record holder of the Warrants  shall have no further rights except to
receive, upon surrender of the Warrants, the Redemption Price.

                                       7
<PAGE>

7. Other Provisions Relating to Rights of Holders of Warrants.

      7.1 No Rights as  Stockholder.  A Warrant does not entitle the  registered
holder thereof to any of the rights of a stockholder of the Company,  including,
without  limitation,  the right to receive  dividends,  or other  distributions,
exercise  any  preemptive  rights to vote or to consent or to receive  notice as
stockholders  in respect of the  meetings  of  stockholders  or the  election of
directors of the Company or any other matter.

      7.2 Lost,  Stolen,  Mutilated,  or Destroyed  Warrants.  If any Warrant is
lost, stolen,  mutilated, or destroyed, the Company and the Warrant Agent may on
such terms as to indemnity or otherwise as they may in their  discretion  impose
(which  shall,  in the  case  of a  mutilated  Warrant,  include  the  surrender
thereof),  issue a new  Warrant  of like  denomination,  tenor,  and date as the
Warrant so lost,  stolen,  mutilated,  or destroyed.  Any such new Warrant shall
constitute a substitute  contractual  obligation of the Company,  whether or not
the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time
enforceable by anyone.

      7.3  Reservation  of Common Stock.  The Company shall at all times reserve
and keep  available a number of its  authorized  but  unissued  shares of Common
Stock that will be sufficient to permit the exercise in full of all  outstanding
Warrants issued pursuant to this Warrant Agreement.

      7.4  Registration  of Common Stock.  The Company  agrees that prior to the
commencement of the Exercise Period, it shall file with the SEC a post-effective
amendment to the Registration Statement,  or a new registration  statement,  for
the  registration,  under  the Act,  of,  and it shall  take  such  action as is
necessary  to  qualify  for sale,  in those  states in which the  Warrants  were
initially offered by the Company, the Common Stock issuable upon exercise of the
Warrants.  In either  case,  the Company  will use its best efforts to cause the
same to become  effective on or prior to the commencement of the Exercise Period
and to maintain  the  effectiveness  of such  registration  statement  until the
expiration  of the Warrants in  accordance  with the  provisions of this Warrant
Agreement.  The  provisions of this Section 7.4 may not be modified,  amended or
deleted without the prior written consent of Maxim.

                                       8
<PAGE>

8. Concerning the Warrant Agent and Other Matters.

      8.1 Payment of Taxes.  The Company will from time to time promptly pay all
taxes and charges that may be imposed  upon the Company or the Warrant  Agent in
respect of the  issuance or delivery of shares of Common Stock upon the exercise
of Warrants, but the Company shall not be obligated to pay any transfer taxes in
respect of the Warrants or such shares.

      8.2 Resignation, Consolidation, or Merger of Warrant Agent.

            8.2.1  Appointment of Successor Warrant Agent. The Warrant Agent, or
any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities  hereunder after giving sixty (60) days'
notice in writing to the  Company.  If the office of the Warrant  Agent  becomes
vacant by  resignation  or  incapacity  to act or  otherwise,  the Company shall
appoint in writing a successor  Warrant Agent in place of the Warrant Agent.  If
the Company shall fail to make such appointment within a period of 30 days after
it has been notified in writing of such resignation or incapacity by the Warrant
Agent or by the holder of the Warrant (who shall,  with such notice,  submit his
Warrant for inspection by the Company), then the holder of any Warrant may apply
to the Supreme Court of the State of New York for the County of New York for the
appointment of a successor Warrant Agent. Any successor  Warrant Agent,  whether
appointed by the Company or by such court, shall be a corporation  organized and
existing  under the laws of the State of New York,  in good  standing and having
its principal  office in the Borough of  Manhattan,  City and State of New York,
and authorized under such laws to exercise corporate trust powers and subject to
supervision or examination by federal or state authority. After appointment, any
successor Warrant Agent shall be vested with all the authority,  powers, rights,
immunities,  duties, and obligations of its predecessor  Warrant Agent with like
effect as if originally  named as Warrant Agent  hereunder,  without any further
act or deed;  but if for any reason it becomes  necessary  or  appropriate,  the
predecessor  Warrant  Agent  shall  execute and  deliver,  at the expense of the
Company,  an instrument  transferring  to such  successor  Warrant Agent all the
authority,  powers, and rights of such predecessor Warrant Agent hereunder;  and
upon request of any successor  Warrant  Agent the Company  shall make,  execute,
acknowledge,  and deliver any and all  instruments in writing for more fully and
effectually  vesting in and confirming to such successor  Warrant Agent all such
authority, powers, rights, immunities, duties, and obligations.

            8.2.2 Notice of Successor  Warrant  Agent.  In the event a successor
Warrant Agent shall be appointed,  the Company shall give notice  thereof to the
predecessor  Warrant Agent and the transfer agent for the Common Stock not later
than the effective date of any such appointment.

            8.2.3 Merger or Consolidation of Warrant Agent. Any corporation into
which the 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 shall be a party shall be the  successor  Warrant Agent under this Warrant
Agreement without any further act.

                                       9
<PAGE>

      8.3 Fees and Expenses of Warrant Agent.

            8.3.1  Remuneration.  The Company  agrees to pay the  Warrant  Agent
reasonable  remuneration for its services as such Warrant Agent hereunder as set
forth on Exhibit A hereto,  and will reimburse the Warrant Agent upon demand for
all expenditures that the Warrant Agent may reasonably incur in the execution of
its duties hereunder.

            8.3.2 Further  Assurances.  The Company agrees to perform,  execute,
acknowledge, and deliver or cause to be performed,  executed,  acknowledged, and
delivered all such further and other acts,  instruments,  and  assurances as may
reasonably  be required by the Warrant  Agent for the carrying out or performing
of the provisions of this Warrant Agreement.

      8.4 Liability of Warrant Agent.

            8.4.1 Reliance on Company Statement.  Whenever in the performance of
its  duties  under this  Warrant  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 statement signed by the
President  or Chairman of the Board of the Company and  delivered to the Warrant
Agent.  The Warrant  Agent may rely upon such  statement for any action taken or
suffered  in good  faith  by it  pursuant  to the  provisions  of  this  Warrant
Agreement.

            8.4.2  Indemnity.  The Warrant Agent shall be liable  hereunder only
for its own negligence,  willful  misconduct or bad faith. The Company agrees to
indemnify  the  Warrant  Agent  and  save  it  harmless   against  any  and  all
liabilities,  including  judgments,  costs  and  reasonable  counsel  fees,  for
anything  done or omitted by the Warrant  Agent in the execution of this Warrant
Agreement  except  as a  result  of  the  Warrant  Agent's  negligence,  willful
misconduct, or bad faith.

            8.4.3  Exclusions.  The Warrant  Agent shall have no  responsibility
with respect to the  validity of this  Warrant  Agreement or with respect to the
validity or execution of any Warrant (except its countersignature  thereof); nor
shall it be  responsible  for any  breach  by the  Company  of any  covenant  or
condition contained in this Warrant Agreement or in any Warrant; nor shall it be
responsible to make any  adjustments  required under the provisions of Section 4
hereof or responsible for the manner,  method,  or amount of any such adjustment
or the  ascertaining  of the  existence  of facts  that would  require  any such
adjustment;   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 Warrant  Agreement or any Warrant
or as to whether any shares of Common  Stock will when issued be valid and fully
paid and nonassessable.

      8.5  Acceptance  of Agency.  The Warrant  Agent hereby  accepts the agency
established  by this Warrant  Agreement  and agrees to perform the same upon the
terms and  conditions  herein set forth and among other  things,  shall  account
promptly to the Company  with  respect to Warrants  exercised  and  concurrently
account for, and pay to the Company,  all moneys  received by the Warrant  Agent
for the purchase of shares of the Company's Common Stock through the exercise of
Warrants.

                                       10
<PAGE>

9. Miscellaneous Provisions.

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

      9.2 Notices.  Any notice or other  communication  required or which may be
given  hereunder  shall be in writing and either be delivered  personally  or by
private national courier  service,  or be mailed,  certified or registered mail,
return receipt  requested,  postage  prepaid,  and shall be deemed given when so
delivered  personally or, if sent by private national  courier  service,  on the
next  business day after  delivery to the courier,  or, if mailed,  two business
days after the date of mailing, as follows:

                           Star Maritime Acquisition Corp.
                           c/o Schwartz & Weiss, P.C.
                           457 Madison Avenue
                           New York, New York 10022
                           Attn: Akis Tsirigakis, Chief Executive Officer

Any notice, statement or demand authorized by this Warrant Agreement to be given
or made by the  holder of any  Warrant or by the  Company  to or on the  Warrant
Agent shall be  sufficiently  given when so  delivered  if by hand or  overnight
delivery or if sent by certified mail or private courier service five days after
deposit of such notice,  postage  prepaid,  addressed  (until another address is
filed in writing by the Warrant Agent with the Company), as follows:

                           American Stock Transfer & Trust Company
                           59 Maiden Lane
                           New York, New York 10038
                           Attn: Compliance Department

with a copy in each case to:

                           Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
                           666 Third Avenue
                           New York, New York 10017
                           Attn: Stephen J. Gullotta, Jr., Esq.

and

                           Loeb & Loeb LLP
                           345 Park Avenue
                           New York, New York 10154
                           Attn: Fran Stoller, Esq.

                                       11
<PAGE>

and

                           Maxim Group LLC
                           405 Lexington Avenue
                           New York, New York 10174
                           Attn: Clifford A. Teller, Managing Director

      9.3 Applicable law. The validity,  interpretation, and performance of this
Warrant  Agreement and of the Warrants  shall be governed in all respects by the
laws of the State of New York,  without  giving effect to conflict of laws.  The
Company  hereby  agrees that any action,  proceeding or claim against it arising
out of or relating  in any way to this  Warrant  Agreement  shall be brought and
enforced  in the courts of the State of New York or the United  States  District
Court for the Southern  District of New York,  and  irrevocably  submits to such
jurisdiction,  which jurisdiction shall be exclusive.  The Company hereby waives
any objection to such exclusive  jurisdiction  and that such courts represent an
inconvenient  forum.  Any such  process or summons to be served upon the Company
may be served by  transmitting  a copy thereof by registered or certified  mail,
return receipt  requested,  postage prepaid,  addressed to it at the address set
forth in Section 9.2 hereof.  Such mailing shall be deemed personal  service and
shall be legal and binding upon the Company in any action, proceeding or claim.

      9.4 Persons Having Rights under this Warrant Agreement. Nothing in this
Warrant Agreement expressed and nothing that may be implied from any of the
provisions hereof is intended, or shall be construed, to confer upon, or give
to, any person or corporation other than the parties hereto and the registered
holders of the Warrants and, for the purposes of Sections 3.3.5, 6.1, 7.4, 9.2
and 9.8 hereof, Maxim, any right, remedy, or claim under or by reason of this
Warrant Agreement or of any covenant, condition, stipulation, promise, or
agreement hereof. Maxim shall be deemed to be a third-party beneficiary of this
Warrant Agreement with respect to Sections 3.3.5, 6.1, 7.4, 9.2 and 9.8 hereof.
All covenants, conditions, stipulations, promises, and agreements contained in
this Warrant Agreement shall be for the sole and exclusive benefit of the
parties hereto (and Maxim with respect to the Sections 3.3.5, 6.1, 7.4, 9.2 and
9.8 hereof) and their successors and assigns and of the registered holders of
the Warrants.

      9.5 Examination of the Warrant Agreement. A copy of this Warrant Agreement
shall be available at all reasonable times at the office of the Warrant Agent in
the Borough of  Manhattan,  City and State of New York,  for  inspection  by the
registered holder of any Warrant.  The Warrant Agent may require any such holder
to submit his Warrant for inspection by it.

      9.6 Counterparts.  This Warrant Agreement may be executed in any number of
counterparts and each of such  counterparts  shall for all purposes be deemed to
be an original,  and all such counterparts shall together constitute but one and
the same instrument.

      9.7 Effect of Headings.  The Section  headings  herein are for convenience
only and are not  part of this  Warrant  Agreement  and  shall  not  affect  the
interpretation thereof.

      9.8  Amendments.  This  Warrant  Agreement  may be amended by the  parties
hereto  without the consent of any  registered  holder for the purpose of curing
any ambiguity, or of curing, correcting or supplementing any defective provision
contained  herein or adding or changing  any other  provisions  with  respect to
matters or questions  arising  under this  Warrant  Agreement as the parties may
deem necessary or desirable and that the parties deem shall not adversely affect
the interest of the registered  holders.  All other modifications or amendments,
including  any  amendment to increase the Warrant  Price or shorten the Exercise
Period,  shall require the written  consent of each of Maxim and the  registered
holders of a majority  of the then  outstanding  Warrants.  Notwithstanding  the
foregoing, the Company may lower the Warrant Price or extend the duration of the
Exercise Period in accordance with Sections 3.1 and 3.2,  respectively,  without
such  consent.

                                       12
<PAGE>

      9.9 Severability.  This Warrant  Agreement shall be deemed severable,  and
the  invalidity or  unenforceability  of any term or provision  hereof shall not
affect the validity or  enforceability of this Warrant Agreement or of any other
term  or  provision  hereof.  Furthermore,  in  lieu  of  any  such  invalid  or
unenforceable  term or provision,  the parties hereto intend that there shall be
added as a part of this  Warrant  Agreement a  provision  as similar in terms to
such  invalid or  unenforceable  provision  as may be possible  and be valid and
enforceable.

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

Attest:                           STAR MARITIME ACQUISITION CORP.

                                  By:
---------------------------            -------------------------------------
                                       Prokopios (Akis) Tsirigakis,
                                        Chief Executive Officer and
                                         President

Attest:                           AMERICAN STOCK TRANSFER & TRUST COMPANY

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

                                       13

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