Document:

Exhibit 4.11

        

        

        DESCRIPTION OF THE 8.30% SENIOR NOTES DUE 2022 OF STAR BULK CARRIERS CORP.

        

        

        The following description of the 8.30% Senior Notes due 2022 issued by Star Bulk Carriers Corp. (the “Notes”) is a summary and does not purport to be complete. It is subject
          to and qualified in its entirety by reference to the indenture, dated as of November 6, 2014 (the “Base Indenture”), between Star Bulk Carriers Corp. (“we” or the “Company”), and U.S. Bank, National Association, as trustee (the “Trustee”), as
          supplemented by the second supplemental indenture, dated as of November 9, 2017 (the Base Indenture as supplemented by the second supplemental indenture, the “Indenture”), which is incorporated by reference as exhibits to the Annual Report on
          Form 20-F of which this Exhibit 4.11 is a part.

        

        

        We encourage you to read the above referenced Indenture for additional information.

        

        

        General

        

        

        The following is a description of certain of the specific terms and conditions of the Indenture.

        

        

        The Notes were initially limited to $50,000,000 in aggregate principal amount. The Indenture does not limit the amount of debt securities that we may issue under the
          Indenture and provides that debt securities may be issued from time to time in one or more series. We may from time to time, without giving notice to or seeking the consent of the holders of the Notes, issue debt securities having the same
          interest rate, maturity and other terms (except for the issue date, the public offering price and the first interest payment date) as, and ranking equally and ratably with, the Notes. Any additional debt securities having such similar terms
          (“Additional Notes”), together with the Notes, will constitute a single series of debt securities under the Indenture, including for purposes of voting and redemptions, and any Additional Notes issued as part of the same series as the Notes will
          be fungible with the Notes for United States federal income tax purposes or will have a separate CUSIP number than the Notes. No Additional Notes may be issued if an Event of Default (as defined herein) has occurred and is continuing with respect
          to the Notes. For the avoidance of doubt, so long as no Default (as defined herein) or Event of Default hereunder would result therefrom, nothing contained herein shall prohibit the Company from entering into commercial loans or bank debt,
          whether secured or unsecured, including without limitation, such debt that may be syndicated.

        

        

        Other than as described under “-Certain Covenants,” the Indenture and the terms of the Notes do not contain any covenants restricting the operation of our business or our
          ability to incur debt or grant liens on our assets or that are designed to afford holders of the Notes protection in a highly leveraged or other transaction involving us that may adversely affect holders of the Notes. The Notes are also subject
          to the events of default described under “-Events of Default,” including the cross acceleration and payment default provisions described in that section.

        

        

        
          
            

        

        The Notes mature on November 15, 2022 and bear interest at an annual rate of 8.30% per year.

        

        

        Interest on the Notes accrued from and including November 9, 2017, or, has already been paid, from and including the last interest payment date in respect of which interest
          had been paid or duly provided for to, but excluding, the next succeeding interest payment date, the maturity date or the redemption date, as the case may be. We make interest payments on the Notes quarterly on February 15, May 15, August 15 and
          November 15 of each year to holders of record at the close of business on the February 1, May 1, August 1 or November 1 (whether or not that date is a business day), as the case may be, immediately preceding such interest payment date. Interest
          on the Notes are computed on the basis of a 360-day year composed of twelve 30-day months.

        

        

        If any interest payment date or the maturity date of the Notes falls on a day that is not a business day, the related payment of interest or principal, as the case may be,
          will be made on the next business day as if it were made on the date such payment was due, and no interest will accrue on the amounts so payable for the period from and after such interest payment date or the maturity date of the Notes, as the
          case may be, to such next business day.

        

        

        The Notes are not be entitled to the benefit of any sinking fund.

        

        

        The Notes are issued only in fully registered form without coupons and in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof. The Notes are
          represented by one or more global securities registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). Except as described under “Book-entry System; Delivery and Form,” the Notes are not be issuable in
          certificated form.

        

        

        Ranking

         

        

        The Notes are our unsubordinated unsecured obligations and rank equally in right of payment with all our existing and future unsubordinated unsecured indebtedness. The Notes
          rank senior in right of payment to all of our existing and future subordinated indebtedness. The Notes effectively rank junior to our current and any future secured indebtedness incurred by us, to the extent of the value of the assets securing
          such indebtedness.

        

        

        The Notes are obligations solely of the Company and are not be guaranteed by any of our subsidiaries. We derive substantially all of our operating income and cash flow from
          our investments in our subsidiaries. Claims of creditors of our subsidiaries generally have priority with respect to the assets and earnings of such subsidiaries over the claims of our creditors, including holders of the Notes. As a result, the
          Notes are effectively subordinated to creditors, including trade creditors and preferred stockholders, if any, other than us, of our subsidiaries.

        

        

        
          
            

        

        Listing

         

        

        The Notes are listed on the Nasdaq Global Select Market under the symbol “SBLKZ.”

        

        

        Optional Redemption

         

        

        The Notes are redeemable at our option, in whole or in part, at any time upon providing not less than 30 nor more than 60 days prior notice, at a redemption price equal to
          100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but not including, the date fixed for redemption, subject to the right of holders of record on the relevant record date to receive interest due on the relevant
          interest payment date.

        

        

        Additionally, we or our affiliates may purchase Notes from investors who are willing to sell from time to time, either in the open market at prevailing prices, in tender or
          exchange offers or in private transactions at negotiated prices. Notes that we or they purchase may, at our discretion, be held, resold or canceled.

        

        

        If money sufficient to pay the redemption price of all of the Notes, or portions thereof, to be redeemed on the applicable redemption date is irrevocably deposited with the
          Trustee or paying agent on or before the applicable redemption date, then on and after such redemption date, interest will cease to accrue on such Notes, or such portion thereof, called for redemption and such Notes will be deemed to be no longer
          outstanding.

        

        

        Selection for Redemption

         

        

        If fewer than all of the Notes are to be redeemed at any time, the registrar will select the Notes, or portions thereof, to be redeemed, in compliance with the requirements
          of DTC, or if DTC prescribes no method of selection, on a pro rata basis, by lot or by any other method the registrar deems fair and reasonable; provided, however, that Notes, and portions thereof,
          selected for redemption shall only be in amounts of $25.00 or whole multiples of $25.00.

        

        

        Notices of redemption shall be provided at least 30 days but not more than 60 days before the applicable redemption date to each holder of Notes to be redeemed, which notice
          shall be provided by first-class mail to each holder of Notes to be redeemed at such holder’s address appearing in the register of Notes maintained by the registrar (or otherwise delivered in accordance with applicable DTC procedures). We will,
          at least 2 business days prior to the publication or sending of any notice of redemption of any Notes as described under this heading, furnish to the Trustee and the registrar written notice of redemption.

        

        

        
          
            

        

        A notice of redemption will identify the Notes to be redeemed and will state the provision of the Indenture pursuant to which the Notes are being redeemed; the redemption
          date; the redemption price, including the portion thereof constituting accrued and unpaid interest; the amount of Additional Amounts (as defined below), if any, payable on the date fixed for redemption; the name and address of the paying agent;
          that Notes called for redemption must be surrendered to the paying agent to collect the redemption price; that unless we default in making the redemption payment on the Notes called for redemption, interest on such Notes will cease to accrue on
          and after the redemption date; if any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed; if less than all of the Notes are to be redeemed, the aggregate principal amount of Notes to be outstanding
          after such redemption; and that the Notes called for redemption will become due on the date fixed for redemption.

        

        

        Additional Amounts

         

        

        All payments made by or on behalf of the Company under or with respect to the Notes will be made free and clear of and without withholding or deduction for, or on account of,
          any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and other liabilities related thereto) (hereinafter “Taxes”) unless the withholding or deduction of such Taxes is then required
          by law. If any deduction or withholding for, or on account of, any Taxes imposed or levied by or on behalf of the government of the Republic of Marshall Islands or any political subdivision or any authority or agency therein or thereof having
          power to tax, or any other jurisdiction in which the Company (including any successor entity) is organized or is otherwise resident for tax purposes, or any jurisdiction from or through which payment is made (including, without limitation, the
          jurisdiction of each paying agent) (each a “Specified Tax Jurisdiction”), will at any time be required to be made from any payments made under or with respect to the Notes, the Company will pay such additional amounts (the “Additional Amounts”)
          as may be necessary so that the net amount received in respect of such payments by a holder (including Additional Amounts) after such withholding or deduction will not be less than the amount such holder would have received if such Taxes had not
          been withheld or deducted; provided, however, that the foregoing obligation to pay Additional Amounts does not apply to:

        

        

        
          
            	

                  	(1)	
                    any Taxes that would not have been so imposed but for the holder or beneficial owner of the Notes having any present or former connection with the Specified Tax Jurisdiction,
                      including any such connection arising as a result of such holder or beneficial owner (i) being organized under the laws of, or otherwise being or having been a domiciliary, citizen, resident or national thereof, (ii) being or having
                      been engaged in a trade or business therein, (iii) having or having had its principal office located therein, (iv) maintaining a permanent establishment therein, (v) being or having been physically present therein, or (vi) otherwise
                      having or having had some connection with the Specified Tax Jurisdiction (other than, in each case, any present or former connection arising as a result of the mere acquisition, ownership, holding, enforcement or receipt of payment in
                      respect of the Notes);

                  

          

        

        
          
            	

                  	(2)	
                    any estate, inheritance, gift, sales, excise, transfer, personal property tax or similar tax, assessment or governmental charge;

                  

             

            

          

        

        
          
            

        

        
          
            	

                  	(3)	
                    any Taxes payable other than by deduction or withholding from payments under, or with respect to, the Notes;

                  

          

        

        
          
            	

                  	(4)	
                    any Taxes imposed as a result of the failure of the holder or beneficial owner of the Notes to complete, execute and deliver to the Company (but only if such holder or beneficial
                      owner can do so without undue hardship) any form or document to the extent applicable to such holder or beneficial owner that may be required by law or by reason of administration of such law and which is reasonably requested in
                      writing to be delivered to the Company in order to enable the Company to make payments on the Notes without deduction or withholding for Taxes, or with deduction or withholding of a lesser amount, which form or document will be
                      delivered within 30 days of a written request therefor by the Company;

                  

          

        

        
          
            	

                  	(5)	
                    any Taxes that would not have been so imposed but for the holder having presented a note for payment (in cases in which presentation is required) more than 30 days after the date on
                      which such payment or such note became due and payable or the date on which payment thereof is duly provided for, whichever is later (except to the extent that the holder would have been entitled to Additional Amounts had the note
                      been presented on the last day of such 30-day period);

                  

          

        

        
          
            	

                  	(6)	
                    any Taxes imposed on or with respect to any payment by the Company to the holder if such holder is (i) a fiduciary, a partnership, a limited liability company or other fiscally
                      transparent entity, or (ii) a person other than the sole beneficial owner of such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a partner or a member of such partnership, limited liability
                      company or other fiscally transparent entity or the beneficial owner of such payment would not have been entitled to Additional Amounts had such beneficiary, settlor, partner, member or beneficial owner been the direct holder of such
                      note;

                  

          

        

        
          
            	

                  	(7)	
                    any Taxes imposed under FATCA (as defined below); or

                  

          

        

        
          
            	

                  	(8)	
                    any combination of items (1) through (8) above.

                  

          

        

        

        

        For purposes of this section, FATCA shall mean Sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the “Code”), as of the issue date of the Notes (or
          any amended or successor version that is substantively comparable and not materially more onerous to comply with), or any U.S. Treasury Regulations promulgated thereunder or official administrative interpretations thereof and any agreements
          entered into pursuant to Section 1471(b)(1) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the
          Code.

        

        

        If the Company becomes aware that it will be obligated to pay Additional Amounts with respect to any payment under or with respect to the Notes, the Company will deliver to
          the Trustee and paying agent at least 30 days prior to the date of that payment (unless the obligation to pay Additional Amounts arises after the 30th day prior to that payment date, in which case the Company will notify the Trustee and paying
          agent promptly thereafter but in no event later than five calendar days prior to the date of payment) an officers’ certificate stating the fact that Additional Amounts will be payable and the amount so payable. The officers’ certificate must also
          set forth any other information necessary to enable the paying agent to pay Additional Amounts to holders on the relevant payment date. The Trustee and paying agent will be entitled to rely solely on such officers’ certificate as conclusive proof
          that such payments are necessary. The Company will provide the Trustee and paying agent with documentation reasonably satisfactory to the Trustee and paying agent evidencing the payment of Additional Amounts.

        

        

        
          
            

        

        The Company will make all withholdings and deductions required by law and will remit the full amount deducted or withheld to the relevant governmental authority on a timely
          basis in accordance with applicable law. As soon as practicable, the Company will provide the Trustee and paying agent with an official receipt or, if official receipts are not obtainable, other documentation reasonably satisfactory to the
          Trustee and paying agent evidencing the payment of the Taxes so withheld or deducted. Upon written request, copies of those receipts or other documentation, as the case may be, will be made available by the Trustee and paying agent to the holders
          of the Notes.

        

        

        Whenever in the Indenture there is referenced, in any context, the payment of amounts based upon the principal amount of the Notes or of principal, interest or any other
          amount payable under, or with respect to, the Notes, such reference is deemed to include payment of Additional Amounts as described under this heading to the extent that, in such context, Additional Amounts are, were or would be payable in
          respect thereof.

        

        

        The Company will indemnify a holder, within 10 business days after written demand therefor, for the full amount of any Taxes paid by such holder to a governmental authority
          of a Specified Tax Jurisdiction, on or with respect to any payment by on or account of any obligation of the Company to withhold or deduct an amount on account of Taxes for which the Company would have been obligated to pay Additional Amounts
          hereunder and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant governmental authority. A certificate as to the
          amount of such payment or liability delivered to the Company by a holder will be conclusive absent manifest error.

        

        

        The Company will pay any present or future stamp, court, issue, registration or documentary taxes or any other excise or property taxes, charges or similar levies that arise
          in any Specified Tax Jurisdiction from the execution, delivery, enforcement or registration of the Notes, the Indenture or any other document or instrument in relation thereof, or the receipt of any payments with respect to the Notes, and the
          Company will indemnify the holders for any such taxes paid by such holders.

        

        

        The obligations described under this heading will survive any termination, defeasance or discharge of the Indenture and will apply mutatis
            mutandis to any jurisdiction in which any successor person to the Company is organized or any political subdivision or authority or agency thereof or therein.

         

        

        
          
            

        

        Optional Redemption for Changes in Withholding Taxes

        

        

        The Company may redeem the Notes, at its option, at any time in whole but not in part, upon not less than 15 nor more than 60 days’ notice (which notice will be irrevocable),
          at a redemption price equal to 100% of the outstanding principal amount of Notes, plus accrued and unpaid interest to, but excluding, the date fixed for redemption and any Additional Amounts (if any) then due and which will become due on the
          applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date and Additional Amounts (if any) in respect thereof), in the event that the Company
          determines in good faith that the Company has become or would become obligated to pay, on the next date on which any amount would be payable with respect to the Notes, Additional Amounts and such obligation cannot be avoided by taking reasonable
          measures available to the Company (including making payment through a paying agent located in another jurisdiction), as a result of:

        
          
            	

                  	(1)	
                    a change in or an amendment to the laws (including any regulations or rulings promulgated thereunder) of any Specified Tax Jurisdiction affecting taxation, which change or amendment
                      is announced or becomes effective on or after the date of the Indenture; or

                  

          

        

        
          
            	

                  	(2)	
                    any change in or amendment to any official position of a taxing authority in any Specified Tax Jurisdiction regarding the application, administration or interpretation of such laws,
                      regulations or rulings (including a holding, judgment or order by a court of competent jurisdiction), which change or amendment is announced or becomes effective on or after the date of the Indenture.

                  

          

        

        

        

        Notwithstanding the foregoing, no notice of redemption for changes in withholding taxes may be given earlier than 60 days prior to the earliest date on which the Company
          would be obligated to pay Additional Amounts if a payment in respect of the Notes were then due. At least two business days before the Company provides notice of redemption of the Notes as described above under “Notice of Redemption,” the Company
          will deliver to the Trustee and paying agent (a) an officers’ certificate stating that the Company is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Company to
          so redeem have occurred and (b) an opinion of independent legal counsel of recognized standing satisfactory to the Trustee and paying agent that the Company has or will become obligated to pay Additional Amounts as a result of the circumstances
          referred to in clause (1) or (2) of the preceding paragraph.

        

        

        The Trustee and paying agent will accept and will be entitled to conclusively rely upon the officers’ certificate and opinion as sufficient evidence of the satisfaction of
          the conditions precedent described above, in which case they will be conclusive and binding on the holders.

         

        

        
          
            

        

        Certain Covenants

        

        

        The Indenture includes the following restrictive covenants. Certain defined terms relevant to the covenants are set forth under “-Certain Definitions and Interpretations”
          below.

        

        

        (a) Limitation on Borrowings. The Company shall not permit Net Borrowings (calculated on a
          Pro Forma basis) to equal or exceed 70% of Total Assets (calculated on a Pro Forma basis). For so long as any Subject Vessel Financing Facility remains outstanding, this covenant shall be deemed not to have been breached unless at least one
          financial covenant under all of the then-outstanding Subject Vessel Financing Facilities has also been breached at such time, without giving effect to any amendments or waivers to such Subject Vessel Financing Facilities after the Issue Date (the
          “Financial Covenant Breach Condition”).

        

        

        (b) Limitation on Minimum Tangible Net Worth. The Company shall ensure that Tangible Net
          Worth, calculated on a Pro Forma basis) exceeds five hundred million dollars (US$500,000,000). For so long as any Subject Vessel Financing Facility remains outstanding, this covenant shall be deemed not to have been breached at any time unless
          the Financial Covenant Breach Condition has been fulfilled. 

        

        

        (c) Reports. Following any Cross Default (as defined below), the Company shall promptly
          notify the Trustee of the occurrence of such Cross Default.

        

        

        (d) Restricted Payments. If (i) an Event of Default or an event or circumstance which,
          with the giving of any notice or the lapse of time, would constitute an Event of Default (a “Default”) has occurred and is continuing, (ii) an Event of Default or a Default would result therefrom, (iii) the Company is not in compliance with the
          covenant described under “-Limitation on Borrowings” or “-Limitation on Minimum Tangible Net Worth” in “Certain Covenants” hereof, or (iv) any payment of dividends or any form of distribution or return of capital by the Company or a Subsidiary
          would result in the Company not being in compliance with the covenant described under “-Limitation on Borrowings” or “-Limitation on Minimum Tangible Net Worth” in “Certain Covenants” hereof, then neither the Company nor any Subsidiary shall
          declare or pay any dividends or return any capital to its equity holders or authorize or make any other distribution, payment or delivery of property or cash to its equity holders (other than the Company or a Wholly-Owned Subsidiary of the
          Company), or redeem, retire, purchase or otherwise acquire, directly or indirectly, for value, any interest of any class or series of its equity interests (or acquire any rights, options or warrants relating thereto but not including convertible
          debt) now or hereafter outstanding and held by persons other than the Company (other than the Company or a Wholly-Owned Subsidiary of the Company), or repay any loans that are subordinated in right of payment to the Notes to its equity holders
          (other than the Company or a Wholly-Owned Subsidiary of the Company) or set aside any funds for any of the foregoing purposes (“Restricted Payments”).

         

        

        
          
            

        

        (e) Line of Business. The Company will not, and will not permit any of its Subsidiaries
          (other than an Immaterial Subsidiary) to, engage in any business other than Permitted Businesses, except to such extent as would not be material to the Company and its Subsidiaries, taken as a whole, it being understood that the Company and its
          Subsidiaries shall be deemed to be in compliance with the foregoing covenant if the Company or any of its Subsidiaries acquire another Person that is primarily engaged in Permitted Businesses or acquire business operations that primarily consist
          of Permitted Businesses and continue to operate such acquired Person’s operations or such acquired business operations, as the case may be.

        

        

        (f) Limitation on Asset Sales. The Company shall not, and shall not permit any Subsidiary
          to, in the ordinary course of business or otherwise, sell, lease, convey, transfer or otherwise dispose of any of the Company’s or such Subsidiary’s, assets (including capital stock and warrants, options or other rights to acquire capital stock)
          (an “Asset Sale”), other than pursuant to a Permitted Asset Sale or a Limited Permitted Asset Sale, unless (A) the Company or a Subsidiary receives, consideration at the time of such Asset Sale at least equal to the Fair Market Value (including
          as to the value of all non-cash consideration) of the assets subject to such Asset Sale, and (B) within 365 days after the receipt of any Net Proceeds from an Asset Sale, the Company or a Subsidiary shall apply all such Net Proceeds to:

        
          
            	

                  	(1)	
                    repay or prepay indebtedness under any Credit Facility or other Vessel financing secured by a lien on assets of the Company or any Subsidiary (including, without limitation, any
                      bareboat charter or similar arrangement);

                  

          

        

        
          
            	

                  	(2)	
                    acquire all or substantially all of the assets of, or any Capital Stock of, a person primarily engaged in a Permitted Business; provided, that in the case of the acquisition of
                      Capital Stock of any Person, such Person is or becomes a Subsidiary of the Company and will be subject to all restrictions described in this “Description of Notes” as applying to Subsidiaries of the Company existing on the date of
                      this prospectus;

                  

          

        

        
          
            	

                  	(3)	
                    make a capital expenditure (including, without limitation, making any payments with respect to dry docking of Vessels or under newbuilding contracts, bareboat charters, charters-in
                      or other Vessel acquisition agreements);

                  

          

        

        
          
            	

                  	(4)	
                    acquire other assets that are not classified as current assets under US GAAP and that are used or useful in a Permitted Business (including, without limitation, Vessels and Related
                      Assets);

                  

          

        

        
          
            	

                  	(5)	
                    repay unsecured senior indebtedness of the Company or any Subsidiary (including any redemption, repurchase, retirement or other acquisition of the Notes); and

                  

          

        

        
          
            	

                  	(6)	
                    any combination of the transactions permitted by the foregoing clauses (1) through (5),

                  

          

        

        

        

        provided, that any sale, assignment, conveyance, transfer or lease of all or substantially all of the Company’s properties and assets to any person or persons (whether in a single
            transaction or a series of related transactions) will be governed by the provisions described under the captions “-Change of Control Permits Holders to Require us to Purchase Notes” and “-Consolidation, Merger and Sale of Assets” and not
            by the provisions of this “-Limitation on Asset Sales.”

         

            

        
          
            

        

        A (1) binding contract to apply Net Proceeds in accordance with clauses (2) through (4) above shall toll the 365-day period in respect of such Net Proceeds or (2)
          determination by the Company to apply all or a portion of such Net Proceeds toward the exercise of an outstanding purchase option contract shall toll the 365-day period in respect of such Net Proceeds or portion thereof, in each case, for a
          period not to exceed 365 days or, in the case of a binding contract to acquire one or more Vessels, until the end of the construction or delivery period specified in such binding contract, as the same may be extended, from the expiration of the
          aforementioned 365-day period, provided that such binding contract and such determination by the Company, in each case, shall be treated as a permitted application of Net Proceeds from the date of such
          binding contract or determination until and only until the earlier of (x) the date on which such acquisition or expenditure is consummated and (y) (i) in the case of a construction contract or any exercised purchase option contract, the date of
          expiration or termination of such construction contract or exercised purchase option contract and (ii) in all other cases, the 365th day following the expiration of the aforementioned 365-day period.

        

        

        Pending the final application of any Net Proceeds, the Company or any of its subsidiaries may apply Net Proceeds to the repayment or reduction of outstanding indebtedness or
          otherwise invest the Net Proceeds in any manner that is not prohibited by the Indenture.

        

        

        If a Limited Permitted Asset Sale (as defined below) occurs at any time, the Company must, within 30 days after receipt of Net Proceeds of such Limited Permitted Asset Sale,
          make an offer to purchase Notes having a principal amount equal to the Excess Proceeds of such Limited Permitted Asset Sale. The price that the Company will be required to pay (the “Limited Permitted Asset Sale Purchase Price”) is equal to 101%
          of the principal amount of the Notes to be purchased, plus accrued and unpaid interest to, but excluding, the Limited Permitted Asset Sale Purchase Date (as defined below), subject to the right of holders of record on the relevant record date to
          receive interest due on the relevant interest payment date. If the offer to purchase is for less than all of the outstanding Notes and Notes in an aggregate principal amount in excess of the purchase amount are tendered and not withdrawn pursuant
          to the offer, the Company will purchase Notes having an aggregate principal amount equal to the purchase amount on a pro rata basis, with adjustments so that only Notes in multiples of $25.00 principal
          amount will be purchased. The “Limited Permitted Asset Sale Purchase Date” will be a date specified by us that is not less than 20 or more than 35 calendar days following the date of the Company’s Limited Permitted Asset Sale notice as described
          below. Any Notes purchased by the Company will be paid for in cash. See “-Offer to Purchase.”

        

        

        The determination as to whether Fair Market Value has been received in an Asset Sale and whether an Asset Sale constitutes a Permitted Asset Sale or Limited Permitted Asset
          Sale shall be made as of the time the agreement for such Asset Sale is entered into.

         

        

        
          
            

        

        (h) Compliance Certificate. The Company shall deliver to the Trustee, within 120 days after
          the end of each fiscal year, an officers’ certificate signed by two of the Company’s officers, one of which shall be the principal executive, principal financial or principal accounting officer of the Company, stating that, in the course of the
          performance by the signing Officers of their duties as Officers, they would normally have knowledge of any default by the Company in the performance of any of its obligations in the Indenture, and a review of the activities of the Company and its
          Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under the Indenture, and further
          stating, as to such Officer signing such certificate, that to the best of his or her knowledge the Company is not in Default in the performance or observance of any of the terms, provisions and conditions of the Indenture (or, if a Default or
          Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto). The Company shall deliver to the
          Trustee, within 30 days after the occurrence thereof, written notice in the form of an officer’s certificate of any Event of Default described under “-Events of Default” and any event of which it becomes aware that with the giving of notice or
          the lapse of time would become such an Event of Default, its status and what action the Company is taking or proposes to take with respect thereto.

        

        

        The Company shall provide written notice to the Trustee in the form of an Officers’ Certificate, within 5 business days after the
          fulfillment of the Financial Covenant Breach Condition.

        

        

        Certain Definitions and Interpretations

        

        

        For purposes of the foregoing provisions, the following definitions shall apply:

        

        

        “Cash and Cash Equivalents” means the Company’s cash and cash equivalents, excluding any cash that is classified as current or non-current restricted cash as determined in accordance with US GAAP.

        

        

        “Credit Facility” means, with respect to the Company or any of
            its Subsidiaries, any debt or commercial paper facilities or debt securities with banks or other lenders providing for revolving loans, term loans, letters of credit or other borrowings or any agreement treated as a finance or capital lease if
            and to the extent any of the preceding items would appear as a liability upon a balance sheet of the specified Person prepared in accordance with US GAAP.

        

        

        “Cross Default” means the occurrence, with respect to any debt
            of the Company or any Subsidiary (other than debt owed to the Company or any Subsidiary) having an aggregate principal amount of $25.0 million or more in the aggregate for all such debt of all such Persons, of (i) an event of default that
            results in such debt being due and payable prior to its scheduled maturity or (ii) a failure to make a principal payment when due and such defaulted payment is not made, waived or extended within any applicable grace period.

         

          

        “Fair Market Value” means the value that would be paid by a
            willing buyer to an unaffiliated willing seller in a transaction not involving distress or necessity of either party, determined in good faith by a principal financial officer or principal accounting officer of the Company; provided that such
            determination shall be made by the Board of Directors of the Company (or committee thereof to which the Board of Directors has delegated its authority) in the case of any asset or property whose Fair Market Value is in excess of $25.0 million.

         

          

        
          
            

        

        “Immaterial Subsidiary” means any Subsidiary the net book value
            of whose assets or revenues is not in excess of 10% of the net book value of the consolidated Total Assets or consolidated vessel revenue of the Company and its Subsidiaries as set out in the annual audited consolidated financial statements of
            the Company and its Subsidiaries for the immediately preceding fiscal year, provided that, at no time shall (a) the total assets of all Immaterial Subsidiaries exceed 10% of the consolidated Total Assets of the Company and its Subsidiaries or
            (b) the total vessel revenues calculated with respect to all Immaterial Subsidiaries (calculated on a stand-alone basis), in the aggregate, exceed 10% of the consolidated vessel revenue of the Company and its Subsidiaries, in each case as set
            out in the annual audited consolidated financial statements of the Company and its Subsidiaries for the immediately preceding fiscal year.

        

        

        “Limited Permitted
            Asset Sale” means any Asset Sale of any of the Company’s or its
            Subsidiaries’ assets (in the ordinary course of business or otherwise) during a single fiscal year, in a single transaction or series of transactions, (i) the Net Proceeds of which
            have not been applied pursuant to clauses (1) through (6) in accordance with the requirements set forth in “-Limitation on Asset Sales” and (ii) that results in Net Proceeds in excess of the amount provided for in clause (1) of the definition of Permitted Asset Sale, provided that the Net Proceeds of such Limited Permitted Asset Sale (taken together
            with the value of any non-cash consideration) represent consideration at least equal to the Fair Market Value of the assets subject to such Asset Sale. Any Net Proceeds that are not applied or invested as provided in (i) above and are in excess
            of the amount provided for in clause (1) of the definition of Permitted Asset Sale will constitute “Excess Proceeds.”
            For the avoidance of doubt, a Limited Permitted Asset Sale may occur only once. Following the first occurrence of a Limited Permitted Asset Sale, no further Limited Permitted Asset Sale shall be permitted.

        

        

        “Net Borrowings” means the aggregate of the following, without
            duplication, as of the most recently completed fiscal quarter of the Company for which its published financial statements are available:

        

        

        (a) Total Borrowings; less

        

        

        (b) Cash and Cash Equivalents.

        

        

        “Net Proceeds” means the aggregate cash proceeds received by the
            Company or any of its Subsidiaries in respect of any Asset Sale (including, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset Sale, but excluding any other consideration
            received in the form of the cancellation or assumption by the purchaser of indebtedness or other obligations in relation to such Asset Sale or received in any other non-cash form and not disposed of for cash), net of fees, commissions, expenses
            and other direct costs relating to such Asset Sale, including, without limitation, (a) fees and expenses related to such Asset Sale (including legal, accounting and investment banking fees, title and recording tax fees and sales and brokerage
            commissions, and any relocation expenses and severance or shutdown costs incurred as a result of such Asset Sale), (b) all federal, state, provincial, foreign and local taxes paid or payable as a result of the Asset Sale, (c) any escrow or
            reserve for adjustment in respect of the sale price of such assets or property established in accordance with US GAAP and any reserve in accordance with US GAAP against any liabilities associated with such Asset Sale and retained by the seller
            after such Asset Sale, including liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale, except to the extent that such proceeds are released from any such escrow or to
            the extent such reserve is reduced or eliminated, and (d) any indebtedness required by its terms to be repaid, repurchased, redeemed or otherwise retired upon the applicable Asset Sale.

         

          

        
          
            

        

        “Permitted Asset Sale” means:

        

        

        (1) any Asset Sale of any of the Company’s or its Subsidiaries’ assets (in the ordinary course of business or otherwise) in any
          transaction or series of transactions, such that (A) the aggregate market value of all assets subject to such Asset Sales described in this clause (1) during any fiscal year may be up to (and including) 25% of the aggregate Fair Market Value of
          all of the Company’s and the Company’s Subsidiaries’ assets (on a consolidated basis) on the last day of the immediately preceding fiscal year and (B) the Company receives, or a Subsidiary receives, consideration at least equal to the Fair Market
          Value of the assets subject to such Asset Sale;

        

        

        (2) (a) the actual or constructive total loss of a Vessel or the agreed or compromised total loss of a Vessel, (b) the destruction
          of a Vessel, (c) damage to a Vessel to an extent as shall make repair thereof uneconomical or shall render such Vessel permanently unfit for normal use (other than obsolescence) or (d) the condemnation, confiscation, requisition for title,
          seizure, forfeiture or other taking of title to or use of a Vessel that shall not be revoked within 30 days, in each case as determined in good faith by the Board of Directors of the Company, provided that
          the aggregate market value of all assets included as a Permitted Asset Sale pursuant to this paragraph during any fiscal year may not exceed 10% of the aggregate Fair Market Value of all of the Company’s and the Company’s Subsidiaries’ assets (on
          a consolidated basis) on the last day of the immediately preceding fiscal year; and

        

        

        (3) (a) a transfer of assets or issuances of equity or other securities among the Company and any of its Wholly-Owned Subsidiaries;
          (b) any transaction consummated in compliance with “Change of Control Permits Holders to Require us to Purchase Notes” and “Consolidation, Merger and Sales of Assets”; (c) the sale or abandonment of property or equipment (other than Vessels) that
          has become worn out, obsolete, damaged, unusable, otherwise unsuitable or no longer economically practicable for use in connection with the business of the Company or the relevant Subsidiary, as the case may be; (d) any Restricted Payment made in
          compliance with “Certain Covenants-Restricted Payments”; (e) investments made by the Company or any Subsidiary; (f) any casualty loss, taking under power of eminent domain or by condemnation or similar proceeding of any property or assets of the
          Company or any Subsidiary (other than Vessels); (g) the leasing, occupancy agreements or subleasing of property or licensing or sublicensing of intellectual property in the ordinary course of business or in accordance with industry practice; (h)
          the grant of liens on assets or property of the Company or any Subsidiary; (i) or any realization on liens on or any transfer in lieu of foreclosure of assets or property of the Company or any Subsidiary, in each case, that does not otherwise
          constitute an Event of Default (provided that, in the case of any realization of a lien on a Vessel or the transfer in lieu of foreclosure of a Vessel, any Net Proceeds from such realization or transfer shall be applied as provided in the first
          paragraph of “Certain Covenants-Limitation on Asset Sales”); (j) chartering of Vessels and licenses of intellectual property; (k) the transfer of property or assets in the form of a surrender or waiver of contract rights or the settlement,
          release or surrender of contract, tort or other claims of any kind; (l) the entering into or unwinding of obligations under any hedging agreement; (m) the sale or disposition of any assets or property received as a result of a foreclosure or
          other similar proceeding or in connection with a transfer in lieu of a foreclosure by the Company or any of its Subsidiaries; (n) a disposition of leasehold improvements or leased assets in connection with the termination of any lease; (o) the
          sale of interests in a joint venture pursuant to customary put-call or buy-sell arrangements; (p) any disposition of inventory or other assets in the ordinary course of business, (q) dispositions of receivables in connection with the compromise,
          settlement or collection thereof in the ordinary course of business; and (r) the disposition of cash, cash equivalents and marketable securities.

         

        

        
          
            

        

        “Permitted Business” means (i) any business engaged in by the
            Company or any of its Subsidiaries on the issue date of the Notes, (ii) any business or other activities that are reasonably similar, ancillary, complementary or related to, or a reasonable extension, development or expansion of, the businesses
            described in clause (i) of this definition and (iii) any business in the direct or indirect ownership, management, operation and chartering of Vessels and any business incidental thereto.

        

        

        “Person, ” except as used in the definition of “Change of Control,” means any individual, corporation, partnership, limited liability company, joint venture,
            association, joint stock company, trust, unincorporated organization, government or agency or political subdivision thereof or any other entity.

        

        

        “Pro Forma” means with respect to any calculation of Net
            Borrowings, Minimum Tangible Net Worth or Total Assets (each, a “Calculation”) on any date of determination made with
            respect to the end of any fiscal quarter (each, a “Fiscal Quarter-End”), a calculation of such relevant measure made
            in good faith by a principal financial or principal accounting officer of the Company, provided that, without duplication:

        
          
            	

                  	(1)	
                    if the Company or any Subsidiary:

                  

          

        

        
          
            	

                  	(a)	
                    has incurred any indebtedness since the Fiscal Quarter-End that remains outstanding on such date of determination, or if the transaction giving rise to the need to make such
                      Calculation includes the incurrence of indebtedness, such Calculation shall give effect on a pro forma basis to such indebtedness as if such indebtedness had been incurred on such Fiscal
                      Quarter-End and the discharge of any other indebtedness repaid, repurchased, redeemed, retired, defeased or otherwise discharged with the proceeds of such new indebtedness as if such discharge had occurred on such Fiscal Quarter-End;
                      or

                  

          

        

        
          
            	

                  	(b)	
                    has made a repayment, repurchase, redemption, retirement, defeaseance or other discharge (a “Discharge”) of any indebtedness since the Fiscal Quarter-End that is no longer
                      outstanding on such date of determination or if the transaction giving rise to the need to make such Calculation includes a Discharge of indebtedness (in each case, other than indebtedness incurred under any revolving credit facility
                      unless such indebtedness has been permanently repaid and the related commitment terminated and not replaced), such Calculation shall give effect on a pro forma basis to such Discharge of such
                      indebtedness, including with the proceeds of new indebtedness, as if such Discharge had occurred on such Fiscal Quarter-End;

                  

             

            

          

        

        
          
            

        

        
          
            	

                  	(2)	
                    if, since the Fiscal Quarter-End, the Company or any Subsidiary will have made any equity offering or Asset Sale or disposed of or discontinued (as defined under US GAAP) any
                      company, division, operating unit, segment, business, group of related assets or line of business (by merger or otherwise) or if the transaction giving rise to the need to make such Calculation includes such a transaction, such
                      Calculation shall be made giving pro forma effect to such equity offering, Asset Sale, disposition or discontinuation (including any related incurrence, assumption or Discharge of
                      indebtedness) as if such equity offering, Asset Sale, disposition or discontinuation (and any such related incurrence, assumption or Discharge of indebtedness) had occurred on such Fiscal Quarter-End; and

                  

          

        

        
          
            	

                  	(3)	
                    if, since the Fiscal Quarter-End, the Company or any Subsidiary (by merger or otherwise) will have made an acquisition of or investment in non-current assets or any company,
                      division, operating unit, segment, business, group of related assets or line of business or any recapitalization, or if the transaction giving rise to the need to make such Calculation includes such a transaction, such Calculation
                      shall be made giving pro forma effect to such acquisition (including any related incurrence, assumption or Discharge of indebtedness) as if such investment or acquisition (and any related
                      incurrence, assumption or Discharge of indebtedness) occurred on such Fiscal Quarter-End; and

                  

          

        

        
          
            	

                  	(4)	
                    if, since the Fiscal Quarter-End, any transaction occurs in which either (i) any Person that is not a Subsidiary of the Company becomes a Subsidiary of the Company or (ii) any
                      Subsidiary of the Company is no longer a Subsidiary of the Company, or if the transaction giving rise to the need to make such Calculation includes such a transaction, such Calculation shall be made, giving pro forma effect to such transaction (including any related incurrence, assumption or Discharge of indebtedness) as if such transaction (and any related incurrence, assumption or Discharge of indebtedness) had
                      occurred on such Fiscal Quarter-End.

                  

          

        

        

        

        “Related Assets” means (a) any insurance policies and contracts
            from time to time in force with respect to a Vessel, (b) the capital stock of any Subsidiary of the Company owning one or more Vessels and related assets, (c) any requisition compensation payable in respect of any compulsory acquisition of a
            Vessel, (d) any earnings derived from the use or operation of a Vessel and/or any earnings account with respect to such earnings, (e) any charters, operating leases, contracts of affreightment, Vessel purchase options and related agreements
            entered and any security or guarantee in respect of the charterer’s or lessee’s obligations under such charter, lease,
            Vessel purchase option or agreement, (f) any cash collateral account established with respect to a Vessel pursuant to the financing arrangement with respect thereto, (g) any building, dry docking, conversion or repair contracts relating to a
            Vessel and any security or guarantee in respect of the builder’s obligations under such contract and (h) any security interest in, or agreement or assignment relating to, any of the
            foregoing or any mortgage in respect of a Vessel and any asset reasonably related, ancillary or complementary thereto.

        

        

        
          
            

        

        “Subject Vessel Financing Facilities” means each vessel
            financing credit facility of the Company or its Subsidiaries existing as of the Issue Date, except (i) Facility Agreement, dated June 23, 2017, by and between the Borrowers party thereto, the Guarantor party thereto and ABN AMRO BANK N.V., as
            arranger, agent, security trustee and as swap bank and (ii) Secured Loan Agreement, dated June 6, 2016, by and between the Borrowers party thereto, the Guarantor party thereto and HSBC Bank plc, as Lender.

        

        

        “Subsidiary ” means with respect to any Person, any other
            Person the majority of whose Voting Stock is owned by such Person or by one or more other Subsidiaries of such Person or by such Person and one or more other Subsidiaries of such Person. Where the term “Subsidiary” is used, unless the context otherwise requires, such term shall mean a Subsidiary of the Company.

        

        

        “Tangible Net Worth” means the consolidated total shareholders’ equity (including retained earnings) of the Company and its consolidated Subsidiaries, minus goodwill and other intangible items (other than favorable charter agreements recorded in
            connection with purchase accounting under US GAAP and, for the avoidance of doubt, vessel acquisition or construction agreements), as of the most recently completed fiscal quarter for which published financial statements of the Company are
            available.

        

        

        “Total Assets” means, in respect of the Company, all of the
            assets of the Company and its Subsidiaries, on a consolidated basis, of the types presented on its consolidated balance sheet, as of the most recently completed fiscal quarter of the Company for which its published financial statements are
            available.

        

        

        “Total Borrowings” means the aggregate of the following, without
            duplication of the Company and its Subsidiaries on a consolidated basis:

        

        

        (a) the outstanding principal amount of any moneys borrowed; plus

        

        

        (b) the outstanding principal amount of any acceptance under any acceptance credit; plus

        

        

        (c) the outstanding principal amount of any bond, note, debenture or other similar instrument; plus

        

        

        (d) the book values of indebtedness under a lease, charter, hire purchase agreement or other similar arrangement which obligation is
          required to be classified and accounted for as a capital lease obligation under US GAAP, and, for purposes of the Indenture, the amount of such obligation at any date will be the capitalized amount thereof at such date, determined in accordance
          with US GAAP; plus

        

        

        (e) the outstanding principal amount of all moneys owing in connection with the sale or discounting of receivables (otherwise than
          on a non-recourse basis or which otherwise meet any requirements for de-recognition under US GAAP); plus

        

        

        (f) the outstanding principal amount of any indebtedness arising from any deferred payment agreements arranged primarily as a method
          of raising finance or financing the acquisition of an asset (except trade payables); plus

        

        

        (g) any fixed or minimum premium payable on the repayment or redemption of any instrument referred to in clause (c) above; plus

          

        

        
          
            

        

        (h) the outstanding principal amount of any indebtedness of any person of a type referred to in the above clauses of this definition
          which is the subject of a guarantee given by Star Bulk Carriers Corp. to the extent that such guaranteed indebtedness is determined and given a value in respect of the Company and its Subsidiaries on a consolidated basis in accordance with US
          GAAP;

        

        

        in each case, (i) only to the extent any of the foregoing is reflected as a liability on the face of the consolidated balance sheet of the Company and its
          Subsidiaries and (ii) calculated as of the end of the most recently completed fiscal quarter of the Company for which its published financial statements are available. Notwithstanding the foregoing, “Total
            Borrowings” shall not include (i) any indebtedness or obligations arising from derivative transactions entered into not for speculative purposes and for purposes of managing or protecting against interest rate, commodity or currency
          fluctuations or (ii) any preferred stock.

        

        

        “US GAAP” means generally accepted accounting principles in the
            United States, set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such
            other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect on the issue date of the Notes.

        

        

        “Vessels” means one or more shipping vessels primarily designed
            and utilized for the transport of cargo, including, without limitation, bulk carriers, freighters, general cargo carriers, containerships and tankers, but excluding passenger vessels, or which are otherwise engaged, used or useful in any
            business activities of the Company and its Subsidiaries, in each case together with all related spares, equipment and any additions or improvements.

        

        

        “Voting Stock” of any specified Person as of any date means the
            capital stock or other equity interests of such Person that is at the time entitled to vote in the election of the board of directors (or other similar governing body) of such Person.

        

        

        “Wholly-Owned Subsidiary” means, with respect to a Person, a
            Subsidiary of such Person all of whose outstanding capital stock or other equity interests of which (other than directors’ qualifying shares) are owned by such Person or by one or
            more direct or indirect Wholly-Owned Subsidiaries of such Person. Where the term “Wholly-Owned Subsidiary” is used,
            unless the context otherwise requires, such term shall mean a Wholly-Owned Subsidiary of the Company.

        

        

        For purposes of the foregoing provisions and definitions, any accounting term, phrase, calculation, determination or treatment used,
          required or referred to in this Certain Covenants section is to be construed in accordance with US GAAP in effect as of the date of issuance of the Notes. To the extent any line item referred in this Certain Covenants section is not presented by
          the Company in its financial statements, the Company shall use the line item that is, in its good-faith judgment, is the most comparable line item that is presented by the Company.

        

        

        
          
            

        

        Change of Control Permits Holders to Require Us to Purchase Notes

        

        

        If a Change of Control (as defined below) occurs at any time, holders of Notes will have the right, at their option, to require us
          to purchase for cash any or all of such holder’s Notes, or any portion of the principal amount thereof, that is equal to $25 or multiples of $25. The price we are required to pay (the “Change of Control Purchase Price”) is equal to 101% of the
          principal amount of the Notes to be purchased, plus accrued and unpaid interest to (but not including) the Change of Control Purchase Date, subject to the right of holders of record on the relevant record date to receive interest due on the
          relevant interest payment date. The “Change of Control Purchase Date” will be a date specified by us that is not less than 20 or more than 35 calendar days following the date of our Change of Control notice as described below. Any Notes purchased
          by us will be paid for in cash. See “-Offer to Purchase.”

        

        

        A “Change of Control” will be deemed to have occurred at the time after the Notes are originally issued if

        
          
            	

                  	(1)	
                    any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or becomes the “beneficial owner” (as defined in
                      Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause (1) such Person shall be deemed to have “beneficial ownership” of all shares that any such Person has the right to acquire, whether such right is
                      exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Company;

                  

          

        

        
          
            	

                  	(2)	
                    the merger or consolidation of the Company with or into another Person or the merger of another Person with or into the Company, or the sale of all or substantially all the assets
                      of the Company (determined on a consolidated basis) to another Person other than (i) a transaction in which the survivor or transferee is a Person that is controlled by a Permitted Holder or (ii) a transaction following which, in the
                      case of a merger or consolidation transaction, holders of securities that represented 100% of the Voting Stock of the Company immediately prior to such transaction (or other securities into which such securities are converted as part
                      of such merger or consolidation transaction) own directly or indirectly at least a majority of the voting power of the Voting Stock of the surviving Person in such merger or consolidation transaction immediately after such transaction
                      and in substantially the same proportion as before the transaction;

                  

          

        

        
          
            	

                  	(3)	
                    “Continuing Directors” (as defined below) cease to constitute at least a majority of the Company’s board of directors; or

                  

          

        

        
          
            	

                  	(4)	
                    if after the Notes are initially listed on the Nasdaq Global Select Market or another national securities exchange, the Notes fail, or at any point cease, to be listed on the Nasdaq
                      Global Select Market or such other national securities exchange. For the avoidance of doubt, it shall not be a Change of Control if after the Notes are initially listed on the Nasdaq Global Select Market or another national securities
                      exchange, such Notes are subsequently listed on a different national securities exchange and the prior listing is terminated.

                  

             

            

          

        

        
          
            

        

        Notwithstanding the foregoing, for the purposes of clauses (1) and (2) above, (A) any holding company whose only significant asset
          is Equity Interests of the Company or any direct or indirect parent of the Company shall not itself be considered a “Person” for purposes of this definition; (B) the transfer of assets between or among the Wholly-Owned Subsidiaries or the Company
          shall not itself constitute a Change of Control; (C) a “Person” shall not be deemed to have beneficial ownership of securities subject to a stock purchase agreement, merger agreement or similar agreement (or voting or option agreement related
          thereto) until the consummation of the transactions contemplated by such agreement; and (D) a transaction in which the Company becomes a Subsidiary of another Person that is not a natural person (a “New Parent”) shall not be a Change of Control
          if no Person is the “beneficial owner” of more than 50% of the total voting power of the Voting Stock of such New Parent.

        

        

        “Continuing Director” means a director who either was a member
            of the Company’s Board of Directors on the issue date of the Notes or who becomes a member of the Company’s Board of
            Directors subsequent to that date and whose election, appointment or nomination for election by the Company’s shareholders is duly approved by a majority of the continuing directors
            on the Company’s Board of Directors at the time of such approval by such election or appointment.

        

        

        “Permitted Holder” means (i) Oaktree Capital Management, L.P.,
            Oaktree Capital Group LLC, Oaktree Capital Group Holdings GP, LLC, Oaktree Value Opportunities Fund, L.P., Oaktree Opportunities Fund IX Delaware, L.P., Oaktree Opportunities Fund IX (Parallel 2), L.P. and Oaktree Dry Bulk Holdings LLC
            (collectively, “Oaktree”), and each their respective partners, affiliates and all investment funds directly or
            indirectly managed by any of the foregoing (excluding, for the avoidance of doubt, their respective portfolio companies or other operating companies of investment funds managed by Oaktree, (ii) Millenia Holdings LLC, Petros Pappas, Milena-Maria
            Pappas, Alekos Pappas any immediate family member of Petros Pappas, Milena-Maria Pappas or Alekos Pappas (collectively, “Pappas”), and each their respective controlled affiliates and all investment vehicles directly or indirectly managed by any of the foregoing, (iii) any Person or any of the Persons who were a group (within the meaning of
            Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) whose ownership of assets or Voting Stock has triggered a Change of Control in respect of which an offer to repurchase has been made and all notes that were
            tendered therein have been accepted and paid, (iv) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the foregoing beneficially own, without giving effect to
            the existence of such group or any other group, more than 50.0% of the total voting power of the aggregate Voting Stock of the Company held directly or indirectly by such group and (v) any members of a group described in clause (iv) for so long
            as such Person is a member of such group. “immediate family members” shall refer to a Person’s spouse, parents, children and siblings.

        

        

        
          
            

        

        Offer to Purchase

        

        

        On or before the 30th day after the occurrence of a Change of Control or a Limited Permitted Asset Sale, as the case may be, the Company will provide to all holders of the
          Notes and the Trustee and paying agent a notice of the occurrence of the Change of Control or the Limited Permitted Asset Sale and of the resulting purchase right. Such notice shall state, among other things:

        
          
            	

                  	•	
                    the events causing a Change of Control or Limited Permitted Asset Sale, as the case may be;

                  

          

        

        
          
            	

                  	•	
                    the date of the Change of Control or Limited Permitted Asset Sale, as the case may be;

                  

          

        

        
          
            	

                  	•	
                    the last date on which a holder may exercise the repurchase right;

                  

          

        

        
          
            	

                  	•	
                    the Change of Control Purchase Price or the Limited Permitted Asset Sale Purchase Price, as applicable;

                  

          

        

        
          
            	

                  	•	
                    the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as the case may be;

                  

          

        

        
          
            	

                  	•	
                    the name and address of the paying agent; and

                  

          

        

        
          
            	

                  	•	
                    the procedures that holders must follow to require us to purchase their Notes.

                  

          

        

        

        

        Simultaneously with providing such notice, the Company will publish a notice containing this information in a newspaper of general circulation in The City of New York or
          publish the information on the Company’s website or through such other public medium as the Company may use at that time to achieve a broad dissemination of such notice (including, without limitation, a report on Form 6-K or current report on
          Form 8-K).

        

        

        To exercise the Change of Control purchase right or Limited Permitted Asset Sale purchase right, a holder of Notes must deliver, on or before the third business day (or as
          otherwise provided in the notice provided for above) immediately preceding the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as applicable, the Notes to be purchased, duly endorsed for transfer, together with a
          written purchase notice and the form titled “Form of Purchase Notice” on the reverse side of the Notes duly completed, to the paying agent. Such purchase notice must:

        
          
            	

                  	•	
                    if certificated, state the certificate numbers of the Notes to be delivered for purchase;

                  

          

        

        
          
            	

                  	•	
                    if not certificated, comply with requisite DTC procedures;

                  

          

        

        
          
            	

                  	•	
                    state the portion of the principal amount of Notes to be purchased, which must be $25 or a multiple thereof; and

                  

          

        

        
          
            	

                  	•	
                    state that the Notes are to be purchased by us pursuant to the applicable provisions of the Notes and the Indenture.

                  

          

        

        

        

        The holder of such Notes may withdraw any purchase notice (in whole or in part) by a written notice of withdrawal delivered to the paying agent prior to the close of business
          on the business day immediately preceding the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as applicable. The notice of withdrawal shall:

        
          
            	

                  	•	
                    state the principal amount of the withdrawn Notes;

                  

          

        

        
          
            	

                  	•	
                    if certificated Notes have been issued, state the certificate numbers of the withdrawn Notes;

                  

          

        

        
          
            	

                  	•	
                    if not certificated, comply with requisite DTC procedures; and

                  

          

        

        
          
             

            

            
              
                

            

            	

                  	•	
                    state the principal amount, if any, which remains subject to the purchase notice.

                  

          

        

        

        

        The Company will be required to purchase the Notes on the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as the case may be. The holder of
          such Notes will receive payment of the Change of Control Purchase Price or the Limited Permitted Asset Sale Purchase Price, as applicable, on the later of the Change of Control Purchase Date or Limited Permitted Asset Sale Purchase Date, as
          applicable, and the time of book-entry transfer or the delivery of the Notes. If the paying agent holds money or securities sufficient to pay the Change of Control Purchase Price or Limited Permitted Asset Sale Purchase Price, as applicable, of
          the Notes on the Change of Control Purchase Date or the Limited Permitted Asset Sale Purchase Date, as applicable, then:

        
          
            	

                  	•	
                    the Notes will cease to be outstanding and interest, including any additional interest, if any, will cease to accrue (whether or not book-entry transfer of the Notes is made or
                      whether or not the Notes are delivered to the paying agent); and

                  

          

        

        
          
            	

                  	•	
                    all other rights of the holder of such Notes will terminate (other than the right to receive the Change of Control Purchase Price or the Limited Permitted Asset Sale Purchase Price,
                      as applicable).

                  

          

        

        

        

        In connection with any offer to purchase Notes pursuant to a Change of Control purchase notice or Limited Permitted Asset Sale purchase notice, as applicable, the Company
          will comply, to the extent applicable, with the requirements of Rule 14e-1 under the Exchange Act and any other applicable securities laws and regulations to the extent those laws and regulations are applicable in connection with the repurchase
          of the Notes as a result of a Change of Control or Limited Permitted Asset Sale. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions of this Indenture, the Company will comply
          with any applicable securities laws and regulations and will not be deemed to have breached its obligations under this Indenture by virtue of such compliance.

        

        

        No Notes may be purchased at the option of holders thereof upon a Change of Control or a Limited Permitted Asset Sale if the principal amount of the Notes has been
          accelerated, and such acceleration has not been rescinded, on or prior to such date.

        

        

        The Change of Control purchase rights of the holders of Notes could discourage a potential acquirer of us. The Change of Control purchase feature, however, is not the result
          of management’s knowledge of any specific effort to obtain control of us by any means or part of a plan by management to adopt a series of anti-takeover provisions.

        

        

        The term “Change of Control” is limited to specified transactions and may not include other events that might adversely affect our financial condition. In addition, the
          requirement that we offer to purchase the Notes upon a Change of Control may not protect holders of Notes in the event of a highly leveraged transaction, reorganization, merger or similar transaction involving us.

        

        

        The definition of Change of Control includes a phrase relating to the conveyance, transfer, sale, lease or disposition of “all or substantially all” of our consolidated
          assets. There is no precise, established definition of the phrase “substantially all” under applicable law. Accordingly, the ability of a holder of the Notes to require us to purchase its Notes as a result of the conveyance, transfer, sale, lease
          or other disposition of less than all of our assets may be uncertain.

        

        

        
          
            

        

        If a Change of Control were to occur, we may not have enough funds to pay the Change of Control Purchase Price. Our ability to repurchase the Notes for cash may be limited by
          restrictions on our ability to obtain funds for such repurchase through dividends from our subsidiaries, the terms of our then existing borrowing arrangements or otherwise. If we fail to purchase the Notes when required following a Change of
          Control, we will be in default under the Indenture. In addition, we may in the future incur other indebtedness with similar change in control provisions permitting holders to accelerate or to require us to purchase such indebtedness upon the
          occurrence of similar events or on some specific dates.

        

        

        Consolidation, Merger and Sale of Assets

        

        

        The Company may not consolidate with or merge with or into, any other person or sell, assign, convey, transfer or lease all or substantially all of the Company’s properties
          and assets (whether in a single transaction or a series of related transactions) to any person or persons, unless:

        
          
            	

                  	•	
                    the successor person (if any) is a corporation, partnership, trust or other entity organized and validly existing under the laws of the Republic of the Marshall Islands, the United
                      States of America, any State of the United States or the District of Columbia, the Commonwealth of the Bahamas, the Republic of Liberia, the Republic of Panama, the Commonwealth of Bermuda, the British Virgin Islands, the Cayman
                      Islands, the Isle of Man, Cyprus, Norway, Greece, Hong Kong, the United Kingdom, Malta, any Member State of the European Union and any other jurisdiction generally acceptable, as determined in good faith by the Board of Directors of
                      the Company, to institutional lenders in the shipping industries;

                  

          

        

        
          
            	

                  	•	
                    expressly assumes by supplemental indenture executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of, and any
                      interest on, all Notes and the performance or observance of every covenant of the Indenture on the part of the Company to be performed or observed;

                  

          

        

        
          
            	

                  	•	
                    immediately after giving effect to the transaction, no Default or Event of Default shall have occurred and be continuing; and

                  

          

        

        
          
            	

                  	•	
                    the Company shall have delivered to the Trustee, prior to the consummation of the proposed transaction, an officer’s certificate to the foregoing effect and an opinion of counsel
                      stating that the proposed transaction and such supplemental indenture comply with the Indenture.

                  

          

        

        

        

        Upon any consolidation, merger, sale, assignment, conveyance, transfer or lease of the properties and assets of the Company in accordance with the foregoing provisions, the
          successor person formed by such consolidation or into which we are merged or to which such sale, assignment, conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company
          under the Indenture; and thereafter, except in the case of a lease, the Company shall be released from all obligations and covenants under the Indenture and the Notes.

        

        

        
          
            

        

        The foregoing covenant shall not apply to any transfer of assets among the Company and its Wholly-Owned Subsidiaries.

        

        

        Events of Default

        

        

        The Notes are subject to the following events of default (each, an “Event of Default”):

        
          
            	

                  	(1)	
                    failure to pay principal of or any premium when due;

                  

          

        

        
          
            	

                  	(2)	
                    failure to pay any interest when due, continued for 30 days;

                  

          

        

        
          
            	

                  	(3)	
                    failure to perform or comply with the provisions of the Indenture described in “Consolidation, Merger and Sale of Assets”;

                  

          

        

        
          
            	

                  	(4)	
                    failure to provide notice of a Change of Control or a Limited Permitted Asset Sale or to repurchase Notes tendered for repurchase following the occurrence of a Change of Control or
                      a Limited Permitted Asset Sale in conformity with the covenant set forth under the caption “-Change of Control Permits Holders to Require us to Purchase Notes” or “-Limitation on Asset Sales,” respectively;

                  

          

        

        
          
            	

                  	(5)	
                    failure to perform any of the Company’s other covenants in the Indenture, continued for 60 days after written notice has been given by the Trustee, or the holders of at least 25% in
                      principal amount of the outstanding Notes, as provided in the Indenture;

                  

          

        

        
          
            	

                  	(6)	
                    any debt (excluding debt owed to the Company or any Subsidiary) for borrowed money of the Company or any Subsidiary having an aggregate principal amount of $25.0 million or more in
                      the aggregate for all such debt of all such Persons (i) is subject to an event of default that results in such debt being due and payable prior to its scheduled maturity or (ii) is subject to a failure to make a principal payment when
                      due and such defaulted payment is not made, waived or extended within the applicable grace period;

                  

          

        

        
          
            	

                  	(7)	
                    any final non-appealable judgment or decree for the payment of money in excess of $25.0 million (net of amounts covered by insurance) is entered against the Company and remains
                      outstanding for a period of 90 consecutive days following entry of such final non-appealable judgment or decree and is not discharged, waived or stayed; and

                  

          

        

        
          
            	

                  	(8)	
                    the initiation of certain events of bankruptcy, insolvency or reorganization affecting the Company or any significant Subsidiary.

                  

          

        

        

        

        If an Event of Default, other than an Event of Default described in clause (8) above, occurs and is continuing, either the Trustee or the holders of at least 25% in aggregate
          principal amount of the outstanding Notes may declare the principal amount of the Notes then outstanding and accrued and unpaid interest, if any, to be due and payable immediately. If an Event of Default described in clause (8) above occurs, the
          principal amount of the Notes then outstanding and accrued and unpaid interest, if any, will automatically become immediately due and payable.

        

        

        
          
            

        

        The holders of a majority in aggregate principal amount of the then outstanding Notes by notice to the Trustee may, on behalf of the holders of all of the Notes, rescind an
          acceleration or waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of principal, interest or premium.

        

        

        Notwithstanding the foregoing, if the Company so elects, the sole remedy under the Indenture for an Event of Default relating to the failure to comply with the Company’s
          reporting obligations to the Trustee and the SEC, as described under “-Reports” below, will, after the occurrence of such an Event of Default, consist exclusively of the right to receive additional interest on the Notes at an annual rate equal to
          (i) 0.25% per annum of the outstanding principal amount of the Notes for each day during the 90-day period beginning on, and including, the date on which such Event of Default first occurs and on which such Event of Default is continuing; and
          (ii) 0.50% per annum of the outstanding principal amount of the Notes for each day during the 90-day period beginning on, and including, the 91st day following, and including the date on which such Event of Default first occurs and on which such
          Event of Default is continuing. In the event the Company does not elect to pay the additional interest upon an Event of Default in accordance with this paragraph, the Notes will be subject to acceleration as provided above. This additional
          interest will be payable in arrears on the same dates and in the same manner as regular interest on the Notes. On the 181st day after such Event of Default first occurs (if not waived or cured prior to such 181st day), such additional interest
          will cease to accrue, and the Notes will be subject to acceleration as provided above. The provisions of the Indenture described in this paragraph do not affect the rights of holders of Notes in the event of the occurrence of any other Events of
          Default.

        

        

        In order to elect to pay additional interest as the sole remedy during the first 180 days after the occurrence of an Event of Default relating to the failure to comply with
          the reporting obligations in accordance with the immediately preceding paragraph, the Company must notify all holders of record of Notes and the Trustee and paying agent of such election on or before the close of business on the second business
          day prior to the date on which such Event of Default would otherwise occur. Upon the Company’s failure to timely give such notice or pay additional interest, the Notes will be immediately subject to acceleration as provided above.

        

        

        The Trustee is not be obligated to exercise any of its rights or powers at the request of the holders unless the holders have offered to the Trustee indemnity or security
          reasonably satisfactory to it, in its sole discretion, against any loss, liability or expense. Subject to the Indenture and applicable law and upon providing indemnification satisfactory to the Trustee, the holders of a majority in aggregate
          principal amount of the outstanding Notes have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee with respect to the
          Notes. The Indenture provides that in the event an Event of Default has occurred and is continuing, the Trustee is required in the exercise of its powers to use the degree of care that a prudent person would use in the conduct of his or her own
          affairs. The Trustee, however, may refuse to follow any direction that conflicts with law or the Indenture or that the Trustee determines is unduly prejudicial to the rights of any other holder.

        

        

        
          
            

        

        No holder of Notes has any right to institute any proceeding, judicial or otherwise, with respect to the Indenture, or for the appointment of a receiver or a Trustee, or for
          any other remedy under the Indenture (except actions for payment of overdue principal and interest), unless:

        
          
            	

                  	•	
                    such holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Notes;

                  

          

        

        
          
            	

                  	•	
                    the holders of not less than 25% in aggregate principal amount of the Notes then outstanding shall have made a written request to the Trustee to institute proceedings in respect of
                      such Event of Default in its own name as Trustee under the Indenture;

                  

          

        

        
          
            	

                  	•	
                    such holder or holders have offered to the Trustee indemnity satisfactory to it, in its sole discretion, against the costs, expenses and liabilities to be incurred in compliance
                      with such request;

                  

          

        

        
          
            	

                  	•	
                    the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute such proceedings; and

                  

          

        

        
          
            	

                  	•	
                    no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the holders of a majority in principal amount of the outstanding
                      Notes; it being understood and intended that no one or more of such holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any
                      other of such holders, or to obtain or to seek to obtain priority or preference over any other of such holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of
                      all such holders.

                  

          

        

        

        

        However, notwithstanding any other provision in the Indenture, the holder of any Note has the right, which is absolute and unconditional, to receive payment of the principal
          of and interest, if any, on such Note on the stated maturity date (or, in the case of redemption, on the applicable redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the
          consent of such holder.

        

        

        Generally, the holders of not less than a majority of the aggregate principal amount of outstanding Notes may waive any Default or Event of Default unless:

        
          
            	

                  	•	
                    we fail to pay the principal of or any interest on any Note when due;

                  

          

        

        
          
            	

                  	•	
                    we fail to comply with any of the provisions of the Indenture that would require the consent of the holder of each outstanding Note affected.

                  

          

        

        

        

        
          
            

        

        The Indenture provides that within 30 days after the Trustee receives written notice of a Default, the Trustee shall transmit by mail to all holders of Notes, notice of such
          Default hereunder, unless such Default shall have been cured or waived. Except in the case of a Default in the payment of principal of or interest on any Note, the Trustee may withhold notice if and so long as the Trustee in good faith determines
          that withholding notice is in the best interest of the holders of Notes.

        

        

        Each holder of Notes has the right to receive payment or delivery, as the case may be, of:

        
          
            	

                  	•	
                    the principal (including the Change of Control Purchase Price or Limited Permitted Asset Sale Purchase Price, if applicable) of;

                  

          

        

        
          
            	

                  	•	
                    accrued and unpaid interest, if any, on; and

                  

          

        

        
          
            	

                  	•	
                    Additional Amounts, if any, on

                  

             

            

          

        

        such holder’s Notes, on or after the respective due dates expressed or provided for in the Indenture, or to institute suit for the enforcement of any such
          payment or delivery, as the case may be, and such right to receive such payment or delivery, as the case may be, on or after such respective dates shall not be impaired or affected without the consent of such holder.

         

        

        Modification and Waiver

        

        

        The Company and the Trustee may amend or supplement the Indenture with respect to the Notes with the consent (including consents obtained in connection with any tender offer
          or exchange offer) of the holders of a majority in aggregate principal amount of the outstanding Notes. In addition, the holders of a majority in aggregate principal amount of the outstanding Notes may waive the Company’s compliance in any
          instance with any provision of the Indenture without notice to the other holders of Notes. However, no amendment, supplement or waiver may be made without the consent of each holder of outstanding Notes affected thereby if such amendment,
          supplement or waiver would:

        
          
            	

                  	•	
                    change the stated maturity of the principal of or any interest on the Notes (other than modifications to the provisions described above under “-Change of Control Permits Holders to
                      Require us to Purchase Notes” or “-Limitation on Asset Sales”);

                  

          

        

        
          
            	

                  	•	
                    reduce the principal amount of or interest on the Notes;

                  

          

        

        
          
            	

                  	•	
                    reduce the interest rate applicable to the Notes;

                  

          

        

        
          
            	

                  	•	
                    change the currency of payment of principal of or interest on the Notes or change any Note’s place of payment;

                  

          

        

        
          
            	

                  	•	
                    impair the right of any holder to receive payment of principal of and interest on such holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of
                      any payment on, or with respect to, the Notes;

                  

          

        

        
          
            	

                  	•	
                    subordinate the Notes in right of payment;

                  

          

        

        
          
            	

                  	•	
                    reduce the Company’s obligation to pay Additional Amounts on any Note;

                  

          

        

        
          
            	

                  	•	
                    waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Note (except a rescission of acceleration of the Notes by the holders of at least
                      a majority in principal amount of the outstanding Notes and a waiver of the payment Default that resulted from such acceleration);

                  

             

            

          

        

        
          
            

        

        
          
            	

                  	•	
                    waive a redemption payment with respect to any Note or change any of the provisions with respect to the redemption of the Notes (other than modifications to the provisions described
                      above under “-Change of Control Permits Holders to Require us to Purchase Notes” or “-Limitation on Asset Sales”); or

                  

          

        

        
          
            	

                  	•	
                    modify provisions with respect to modification, amendment or waiver (including waiver of Events of Default), except to increase the percentage required for modification, amendment
                      or waiver or to provide for consent of each affected holder of the Notes.

                  

          

        

        

        

        The Company and the Trustee may amend or supplement the Indenture or the Notes without notice to, or the consent of, the holders of the Notes to:

        
          
            	

                  	•	
                    cure any ambiguity, omission, defect or inconsistency;

                  

          

        

        
          
            	

                  	•	
                    conform the text of the Indenture or the Notes to any provision of this “Description of Notes” to the extent that such provision in this “Description of Notes” was intended to be a
                      verbatim recitation of such text in the Indenture or the Notes, as evidenced by an officer’s certificate to that effect;

                  

          

        

        
          
            	

                  	•	
                    provide for the issuance of additional notes in accordance with the limitations set forth in the Indenture;

                  

          

        

        
          
            	

                  	•	
                    add guarantors or obligors with respect to the Indenture or the Notes;

                  

          

        

        
          
            	

                  	•	
                    make any amendment to the provisions of the Indenture relating to the transfer and legending of Notes; provided, however, that (i) compliance with the Indenture would not result in
                      Notes being transferred in violation of the Securities Act or any applicable securities law and (ii) such amendment does not materially and adversely affect the rights of holders of Notes to transfer Notes;

                  

          

        

        
          
            	

                  	•	
                    provide for the assumption by a successor Person of the Company’s obligations under the Notes and the Indenture in accordance with the provisions of the Indenture;

                  

          

        

        
          
            	

                  	•	
                    secure the Notes;

                  

          

        

        
          
            	

                  	•	
                    add to the covenants or rights for the benefit of the holders of the Notes or surrender any right or power conferred upon the Company or any of its Subsidiaries;

                  

          

        

        
          
            	

                  	•	
                    comply with the rules of any applicable securities depository;

                  

          

        

        
          
            	

                  	•	
                    provide for uncertificated Notes in addition to or in place of certificated Notes;

                  

          

        

        
          
            	

                  	•	
                    comply with the requirements of the TIA and any rules promulgated under the TIA; or

                  

          

        

        
          
            	

                  	•	
                    make any change that does not adversely affect the rights of any holder of Notes in any material respect.

                  

          

        

        

        

        The consent of the holders of the Notes is not necessary under the Indenture to approve the particular form of any proposed amendment. It is sufficient if such consent
          approves the substance of the proposed amendment. After an amendment under the Indenture becomes effective, we are required to mail to the holders of the Notes a notice briefly describing such amendment. However, the failure to give such notice
          to all the holders of the Notes, or any defect in the notice, will not impair or affect the validity of the amendment.

         

        

        
          
            

        

        Satisfaction and Discharge

        

        

        The Company may satisfy and discharge our obligations under the Indenture by delivering to the registrar for cancellation all outstanding Notes or depositing with the Trustee
          or delivering to the holders, as applicable, after all outstanding Notes have become due and payable, or will become due and payable at their stated maturity within one year (including as a result of redemption at the option of the Company), cash
          sufficient to pay and discharge the entire indebtedness of all outstanding Notes and all other sums payable under the Indenture by us. Such discharge is subject to terms contained in the Indenture.

        

        

        Defeasance

        

        

        The Company may terminate at any time all of its obligations with respect to the Notes and the Indenture, which we refer to as “legal defeasance,” except for certain
          obligations, including those respecting the defeasance trust and obligations to register the transfer or exchange of the Notes, to replace mutilated, destroyed, lost or stolen Notes and to maintain a registrar and paying agent in respect of the
          Notes. The Company may also terminate at any time its obligations with respect to the Notes under the covenants described under “-Change of Control Permits Holders to Require us to Purchase Notes,” “-Certain Covenants” and “-Reports,” the
          operation of certain Events of Default, which we refer to as “covenant defeasance.” The Company may exercise the legal defeasance option notwithstanding its prior exercise of the covenant defeasance option.

        

        

        If the Company exercises its legal defeasance option with respect to the Notes, payment of the Notes may not be accelerated because of an Event of Default with respect
          thereto. If the Company exercises the covenant defeasance option with respect to the Notes, payment of the Notes may not be accelerated because of an Event of Default specified in clause (4), clause (5) (with respect to the covenants described
          under “-Certain Covenants” or “-Reports”), clause (6) or clause (7).

        

        

        The legal defeasance option or the covenant defeasance option with respect to the Notes may be exercised only if:

        
          
            	

                  	(1)	
                    the Company irrevocably deposits in trust with the Trustee cash or U.S. Government obligations or a combination thereof sufficient, in the opinion of a firm of certified public
                      accountants or a nationally-recognized valuation firm reasonably acceptable to the Trustee, for the payment of principal of and interest and Additional Amounts, if any, on the Notes to maturity,

                  

          

        

        
          
            	

                  	(2)	
                    such legal defeasance or covenant defeasance does not constitute a Default under the Indenture or any other material agreement or instrument binding the Company (except for
                      agreements relating to indebtedness being retired simultaneously or in connection with such legal defeasance or covenant defeasance),

                  

          

        

        
          
            

        

        
          
            	

                  	(3)	
                    no Default or Event of Default has occurred and is continuing on the date of such deposit and, with respect to covenant defeasance only (other than, if applicable, a Default or
                      Event of Default with respect to the Notes resulting from the borrowing of funds to be applied to such deposits),

                  

          

        

        
          
            	

                  	(4)	
                    in the case of the legal defeasance option, the Company delivers to the Trustee an opinion of counsel stating that:

                  

          

        

        
          
            	

                  	(a)	
                    it has received from the Internal Revenue Service a letter ruling, or there has been published by the Internal Revenue Service a Revenue Ruling, or

                  

          

        

        
          
            	

                  	(b)	
                    since the date of the Indenture, there has been a change in the applicable U.S. Federal income tax law, in either case to the effect that, and based thereon such opinion shall
                      confirm that, the holders of the Notes will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such defeasance and will be subject to U.S. Federal income tax on the same amounts, in the same manner
                      and at the same times as would have been the case if such legal defeasance had not occurred,

                  

          

        

        
          
            	

                  	(5)	
                    in the case of the covenant defeasance option, the Company delivers to the Trustee an opinion of counsel to the effect that the holders of the Notes will not recognize income, gain
                      or loss for U.S. Federal income tax purposes as a result of such covenant defeasance and will be subject to U.S. Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such
                      covenant defeasance had not occurred, and

                  

          

        

        
          
            	

                  	(6)	
                    the Company delivers to the Trustee an officers’ certificate and an opinion of counsel, each stating that all conditions precedent to the defeasance and discharge of the Notes have
                      been complied with as required by the Indenture.

                  

          

        

        

        

        Transfer and Exchange

        

        

        We maintain an office in New York City where the Notes may be presented for registration of transfer or exchange. No service charge will be imposed by us, the Trustee or the
          registrar for any registration of transfer or exchange of Notes, but any tax or similar governmental charge required by law or permitted by the Indenture because a holder requests any Notes to be issued in a name other than such holder’s name
          will be paid by such holder. We are not required to transfer or exchange any Note surrendered for purchase except for any portion of that Note not being purchased.

        

        

        We reserve the right to:

        
          
            	

                  	•	
                    vary or terminate the appointment of the security registrar or paying agent; or

                  

          

        

        
          
            	

                  	•	
                    approve any change in the office through which any security registrar acts.

                  

          

        

        

        

        Payment and Paying Agents

        

        

        Payments in respect of the principal and interest on global notes registered in the name of DTC or its nominee are payable to DTC or its nominee, as the case may be, in its
          capacity as the registered holder under the Indenture. In the case of certificated Notes, payments are made in U.S. dollars at the office of the Trustee or, at our option, by check mailed to the holder’s registered address (or, if requested by a
          holder of more than $1,000,000 principal amount of Notes, by wire transfer to the account designated by such holder). We make any required interest payments to the person in whose name each Note is registered at the close of business on the
          record date for the interest payment.

        

        

        
          
            

        

        Initially, the Trustee was designated as our paying agent for payments on the Notes. We may at any time designate additional paying agents or rescind the designation of any
          paying agent or approve a change in the office through which any paying agent acts.

        

        

        Subject to the requirements of any applicable abandoned property laws, the Trustee and paying agent shall pay to us upon written request any money held by them for payments
          on the Notes that remain unclaimed for two years after the date upon which that payment has become due. After payment to us, holders of Notes entitled to the money must look to us for payment. In that case, all liability of the Trustee or paying
          agent with respect to that money will cease.

        

        

        Purchase and Cancellation

        

        

        The registrar and paying agent (if other than the Trustee) will forward to the Trustee any Notes surrendered to them by holders of such Notes for transfer, exchange or
          payment. All Notes delivered to the Trustee shall be cancelled promptly by the Trustee in the manner provided in the Indenture and may not be reissued or resold. No Notes shall be authenticated in exchange for any Notes cancelled, except as
          provided in the Indenture.

        

        

        We may, to the extent permitted by law, and directly or indirectly (regardless of whether such Notes are surrendered to us), purchase Notes in the open market or by tender
          offer at any price or by private agreement.

        

        

        Reports

        

        

        So long as any Notes are outstanding, the Company will (i) file with or furnish to the SEC within the time periods prescribed by its rules and regulations and applicable to
          the Company and (ii) furnish to the Trustee within 15 days after the date on which the Company would be required to file the same with or furnish the same to the SEC pursuant to its rules and regulations (giving effect to any grace period
          provided by Rule 12b-25 under the Exchange Act), all financial information required to be contained in Form 20-F and, with respect to the annual consolidated financial statements only, a report thereon by our independent auditors. The Company
          shall not be required to file or furnish any report or other information with the SEC if the SEC does not permit such filing or furnishing, although such reports will be required to be furnished to the Trustee. Documents filed by us with the SEC
          via the EDGAR system will be deemed to have been furnished to the Trustee and the holders of the Notes as of the time such documents are filed via EDGAR, provided, however, that the Trustee shall have no
          obligation whatsoever to determine whether or not such information, documents or reports have been filed pursuant to EDGAR.

         

        

        
          
            

        

        Replacement of Notes

        

        

        We will replace mutilated, destroyed, stolen or lost Notes at the expense of the holder of such Notes upon delivery to the Trustee of the mutilated Notes, or evidence of the
          loss, theft or destruction of the Notes satisfactory to us and the Trustee. In the case of a lost, stolen or destroyed note, indemnity satisfactory to the Trustee, in its sole discretion, and us may be required at the expense of the holder of
          such Note before a replacement Note will be issued.

         

        

        Notices

        

        

        Except as otherwise described herein, notice to registered holders of the Notes will be given to the addresses as they appear in the security register. Notices will be deemed
          to have been given on the date of such mailing or electronic delivery. Whenever a notice is required to be given by us, such notice may be given by the Trustee on our behalf (and we will make any notice we are required to give to holders of Notes
          available on our website).

         

        

        Governing Law

        

        

        The Indenture and the Notes are governed by and construed in accordance with the laws of the State of New York.

         

        

        Concerning the Trustee

        

        

        The Trustee, in its individual and any other capacity, may make loans to, accept deposits from, and perform services for us as if it were not the Trustee; however, if it
          acquires any conflicting interest, it must eliminate such conflict within 90 days, apply to the SEC for permission to continue or resign.

        

        

        The Indenture provides that in case an Event of Default shall occur and be continuing (which shall not be cured), the Trustee will be required, in the exercise of its power,
          to use the degree of care of a prudent person in the conduct of such person’s own affairs. Subject to such provisions, the Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request of any
          holder of the Notes, unless such holder shall have offered to the Trustee security and indemnity satisfactory to it, in its sole discretion, against any loss, liability or expense.

        

        

        U. S. Bank National Association is the Trustee under the Indenture.Exhibit 10.16

 

KRAIG
BIOCRAFT LABORATORIES, INC.

 

2019
STOCK OPTION PLAN

 

SECTION
1. PURPOSE

 

The
purposes of this Stock Option Plan (the “Plan”) are to encourage selected employees, officers, directors and consultants
of Kraig Biocraft Laboratories, Inc. (together with any successor thereto, the “Company”) and its Affiliates (as defined
below) to acquire a proprietary interest in the growth and performance of the Company, to generate an increased incentive to contribute
to the Company’s future success and prosperity, thus enhancing the value of the Company for the benefit of its stockholders,
and to enhance the ability of the Company and its Affiliates to attract and retain exceptionally qualified individuals upon whom,
in large measure, the sustained progress, growth and profitability of the Company depend.

 

SECTION
2. DEFINITIONS

 

As
used in the Plan, the following terms shall have the meanings set forth below:

 

(a)
“Affiliate” shall mean (i) any entity that, directly or through one or more intermediaries, is controlled by the Company
and (ii) any entity in which the Company has a significant equity interest, as determined by the Board of Directors (the “Board”)
or the Committee.

 

(b)
“Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award,
Dividend Equivalent, or Other Stock-Based Award granted under the Plan.

 

(c)
“Award Agreement” shall mean any written agreement, contract, or other instrument or document evidencing any Award
granted under the Plan.

 

(d)
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

(e)
“Consultant” shall mean a consultant or adviser who provides bona fide services to the Company or an Affiliate as
an independent contractor. Service as a consultant shall be considered employment for all purposes of the Plan, except for purposes
of satisfying the requirements of Incentive Stock Options.

 

(f)
“Committee” shall mean a committee of not fewer than two members, each of whom is a member of the Board and all of
whom are disinterested persons, as contemplated by Rule 16b-3 (“Rule 16b-3”) promulgated under the Securities Exchange
Act of 1934, as amended (“Exchange Act”) and each of whom is an outside director for purposes of Section 162(m) of
the Code, acting in accordance with the provisions of Section 3, designated by the Board to administer the Plan.

 

(g)
“Director” shall mean any director of the Company or of any Affiliate.

 

    	1

    	 

    

 

(h)
“Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.

 

(i)
“Employee” shall mean any employee of the Company or of any Affiliate.

 

(j)
“Fair Market Value” shall mean, with respect to any property (including, without limitation, any Shares or other Securities),
the fair market value of such property determined by such methods or procedures as shall be established from time to time by the
Board or the Committee.

 

(k)
“Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that is intended to meet the
requirements of Section 422 of the Code, or any successor provision thereto.

 

(l)
“Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan that is not intended to be
an Incentive Stock Option.

 

(m)
“Officer” shall mean any officer of the Company or of any Affiliate who performs a policy and decision making functions,
or any other person who performs similar policy and decision making functions for the Company.

 

(n)
“Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

 

(o)
“Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.

 

(p)
“Participant” shall mean any person that renders bona fide services to the Company (including, without limitation,
the following: a person employed by the Company or an Affiliate in a key capacity; an officer or director of the Company; a person
engaged by the Company as a consultant; or a lawyer, law firm, accountant or accounting firm) who receives an Award under the
Plan.

 

(q)
“Performance Award” shall mean any right granted under Section 6(d) of the Plan.

 

(r)
“Person” shall mean any individual, corporation, partnership, association, joint-stock company, trust, unincorporated
organization, or government or political subdivision thereof.

 

(s)
“Released Securities” shall mean shares of Restricted Stock as to which all restrictions imposed by the Board or the
Committee have expired, lapsed, or been waived.

 

(t)
“Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

 

(u)
“Restricted Stock Unit” shall mean any right granted under Section 6(c) of the Plan that is denominated in Shares.

 

(v)
“Shares” shall mean the shares of common stock of the Company, $0.0001 par value, and such other securities or property
as may become the subject of Awards, or become subject to Awards, pursuant to an adjustment made under Section 4(b) of the Plan.

 

(w)
“Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

 

    	2

    	 

    

 

SECTION
3. ADMINISTRATION

 

The
Plan shall be administered by the Board; provided, however, that the Board may delegate such administration to the Committee.

 

Subject
to the provisions of the Plan, the Board and/or the Committee shall have authority to (a) determine the type or types of Awards
to be granted to each Participant under the Plan; (b) determine the number of Shares to be covered by (or with respect to which
payments, rights, or other matters are to be calculated in connection with) Awards; (c) determine the terms and conditions of
any award; (d) determine the time or times when each Award shall become exercisable and the duration of the exercise period; (e)
determine whether, to what extent, and under what circumstances Awards may be settled in or exercised for cash, Shares, other
securities, other Awards, or other property, or canceled, forfeited, or suspended, and the method or methods by which Awards may
be settled, exercised, canceled, forfeited, or suspended; (f) determine whether, to what extent, and under what circumstances
cash, shares, other securities, other Awards, other property, and other amounts payable with respect to an Award under the Plan
shall be deferred either automatically or at the election of the holder thereof or of the Board or the Committee; (g) construe
and interpret the Plan; (h) promulgate, amend and rescind rules and regulations relating to its administration, and correct defects,
omissions and inconsistencies in the Plan or any Award; (i) consistent with the Plan and with the consent of the Participant,
as appropriate, amend any outstanding Award or amend the exercise date or dates; (j) determine the duration and purpose of leaves
of absence which may be granted to Participants without constituting termination of their employment for the purpose of the Plan;
and (k) make all other determinations necessary or advisable for the Plan’s administration. The Board and the Committee’s
interpretation and construction of any provisions of the Plan or of any Award shall be conclusive and final. No member of the
Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award.

 

In
the case of any Award that is intended to qualify as performance-based compensation for purposes of Section 162(m) of the Code,
once the Award is made, neither the Board nor Committee shall have discretion to increase the amount of compensation payable under
the Award that would otherwise be due upon attainment of the performance goal.

 

SECTION
4. SHARES AVAILABLE FOR AWARDS

 

(a)
SHARES AVAILABLE. Subject to adjustment as provided in Section 4(b):

 

(i)
CALCULATION OF NUMBER OF SHARES AVAILABLE. The maximum number of Shares reserved and available
for granting Awards under the Plan shall be an aggregate of (i) 80,000,000 shares of Class A Common Stock, and (ii) on
each January 1, starting with January 1, 2020, an additional number of shares equal to the lesser of (A) 2% of the outstanding
number of Shares (on a fully-diluted basis) on the immediately preceding December 31, and (B) such lower number of Shares as may
be determined by the Committee, subject in all cases to adjustment as provided in Section 4(b) below. Further, if, after the effective
date of the Plan, any Shares covered by an Award granted under the Plan or to which such an Award relates, are forfeited, or if
an Award otherwise terminates without the delivery of Shares or of other consideration, then the Shares covered by such Award,
or to which such Award relates, or the number of Shares otherwise counted against the aggregate number of Shares available under
the Plan with respect to such Award, to the extent of any such forfeiture or termination, shall again be, or shall become, available
for granting Awards under the Plan.

 

    	3

    	 

    

 

In
the event of any forward or reverse stock splits, recapitalizations, or combination of the authorized, issued and outstanding
shares of common stock, the aforesaid maximum 80,000,000 shares of common stock and the exercise prices of Awards and Shares granted
under the Plan shall be appropriately adjusted, as per Section 4(b) below.

 

(ii)
ACCOUNTING FOR AWARDS. For purposes of this Section 4,

 

(A)
if an Award (other than a Dividend Equivalent) is denominated in Shares, the number of Shares covered by such Award, or to which
such Award relates, shall be counted on the date of grant of such Award against the aggregate number of Shares available for granting
Awards under the Plan; and

 

(B)
Dividend Equivalents and Awards not denominated in Shares shall not be counted against the aggregate number of Shares available
for granting Awards under the Plan.

 

(iii)
SOURCES OF SHARES DELIVERABLE UNDER AWARDS. Any shares delivered pursuant to an Award may consist, in whole or in part, of authorized
and unissued Shares or of Treasury Shares.

 

(b)
ADJUSTMENTS. In the event that the Board or the Committee shall determine that any dividend or other distribution (whether in
the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, purchase, or exchange of Shares or other securities of the Company, issuance
of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Board or the Committee to be appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Board or the Committee
shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or
property) which thereafter may be made the subject of Awards, (ii) the number and type of Shares (or other securities or property)
subject to outstanding Awards, (iii) the number and type of Shares (or other securities or property) specified as the annual per-participant
limitation under Section 6(g)(vi), and (iv) the grant, purchase, or exercise price with respect to any Award, or, if deemed appropriate,
make provision for a cash payment to the holder of an outstanding Award; provided, however, in each case, that with respect to
Awards of Incentive Stock Options no such adjustment shall be authorized to the extent that such authority would cause the Plan
to violate Section 422(b)(1) of the Code or any successor provision thereto; and provided, further, however, that the number of
Shares subject to any award denominated in Shares shall always be a whole number.

 

    	4

    	 

    

 

SECTION
5. ELIGIBILITY

 

Any
Employee, Officer, Director or Consultant of the Company shall be eligible to receive Awards under the Plan. The Board shall approve
any Awards granted to members of the Committee.

 

SECTION
6. AWARDS

 

(a)
OPTIONS. The Board and the Committee are hereby authorized to grant Options which are consistent with the provisions of the Plan,
as the Board or the Committee shall determine:

 

(i)
EXERCISE PRICE. The exercise price per Share of each Option shall be determined by the Board or the Committee; provided, however,
that such exercise price per Share under any Incentive Stock Option shall not be less than 100% (110% in the case of a “10-percent
stockholder” as such term is used in Section 422(c)(5) of the Code) of the Fair Market Value of a Share on the date of grant
of such Incentive Stock Option.

 

(ii)
OPTION TERM. The term of each Option shall be fixed by the Board or the Committee, provided that no Incentive Stock Option shall
have a term greater than 10 years (5 years in the case of a “10-percent stockholder”) as such term is used in Section
422(c)(5) of the Code).

 

(iii)
TIME AND METHOD OF EXERCISE. The Board or the Committee shall determine the time or times at which an Option may be exercised
in whole or in part, and the method or methods by which, property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the relevant exercise price, in which, payment of the exercise price with respect thereto may be made or
deemed to have been made.

 

(iv)
INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the
provisions of Section 422 of the Code, or any successor provision thereto, and any regulations promulgated thereunder.

 

(b)
STOCK APPRECIATION RIGHTS. The Board and the Committee are hereby authorized to grant Stock Appreciation Rights. A Stock Appreciation
Right granted under the Plan shall confer on the holder thereof a right to receive, upon exercise thereof, the excess of (1) the
Fair Market Value of one Share on the date of exercise or, if the Board or the Committee shall so determine in the case of any
such right other than one related to any Incentive Stock Option, at any time during a specified period before or after the date
of exercise over (2) the grant price of the right as specified by the Board or the Committee. Subject to the terms of the Plan,
the grant price, term, methods of exercise, methods of settlement, and any other terms and conditions of any Stock Appreciation
Right shall be as determined by the Board or the Committee. The Board and the Committee may impose such conditions or restrictions
on the exercise of any Stock Appreciation Right as it may deem appropriate.

 

    	5

    	 

    

 

(c)
RESTRICTED STOCK AND RESTRICTED STOCK UNITS.

 

(i)
ISSUANCE. The Board and the Committee are hereby authorized to grant Awards of Restricted Stock and Restricted Stock Units.

 

(ii)
RESTRICTIONS. Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Board or the
Committee may impose (including, without limitation, any limitation on the right to receive any dividend or other right or property),
which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Board
or the Committee may deem appropriate.

 

(iii)
REGISTRATION. Any Restricted Stock granted under the Plan may be evidenced in such manner as the Board or the Committee may deem
appropriate, including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the
event any stock certificate is issued in respect of Shares of restricted Stock granted under the Plan, such certificate shall
be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Stock.

 

(iv)
FORFEITURE. Except as otherwise determined by the Board or the Committee, upon termination of employment (as determined under
criteria established by the Board or the Committee) for any reason during the applicable restriction period, all Shares of Restricted
Stock and all Restricted Stock Units still, in either case, subject to restriction shall be forfeited and reacquired by the Company;
provided, however, that the Board or the Committee may, when it finds that a waiver would be in the best interests of the Company,
waive in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock or Restricted Stock Units.
Unrestricted Shares, evidenced in such manner as the Board or the Committee shall deem appropriate, shall be delivered to the
Participant promptly after such Restricted Stock shall become Released Securities.

 

(d)
PERFORMANCE AWARDS. The Board and the Committee are hereby authorized to grant Performance Awards. Subject to the terms of the
Plan, a Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares (including, without limitation,
Restricted Stock), other securities, other Awards, or other property and (ii) shall confer on the holder thereof rights valued
as determined by the Board or the Committee and payable to, or exercisable by, the holder of the Performance Award, in whole or
in part, upon the achievement of such performance goals during such performance periods as the Board or the Committee shall establish.
Subject to the terms of the Plan and any applicable Award Agreement, the performance goals to be achieved during any performance
period, the length of any performance period, the amount of any Performance Award granted, and the amount of any payment or transfer
to be made pursuant to any Performance Award shall be determined by the Board or the Committee. The goals established by the Board
or the Committee shall be based on any one, or combination of, earnings per share, return on equity, return on assets, total stockholder
return, net operating income, cash flow, revenue, economic value added, increase in Share price or cash flow return on investment,
or any other measure the Board or the Committee deems appropriate. Partial achievement of the goal(s) may result in a payment
or vesting corresponding to the degree of achievement.

 

    	6

    	 

    

 

(e)
DIVIDEND EQUIVALENTS. The Board and the Committee are hereby authorized to grant Awards under which the holders thereof shall
be entitled to receive payments equivalent to dividends or interest with respect to a number of Shares determined by the Board
or the Committee, and the Board and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested
in additional Shares or otherwise reinvested. Subject to the terms of the Plan, such Awards may have such terms and conditions
as the Board or the Committee shall determine.

 

(f)
OTHER STOCK-BASED AWARDS. The Board and the Committee are hereby authorized to grant such other Awards that are denominated or
payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation,
securities convertible into Shares), as are deemed by the Board or the Committee to be consistent with the purposes of the Plan,
provided, however, that such grants must comply with applicable law. Subject to the terms of the Plan, the Board or the Committee
shall determine the terms and conditions of such Awards.

 

(g)
GENERAL.

 

(i)
NO CASH CONSIDERATION FOR AWARDS. Awards shall be granted for no cash consideration or for such minimal cash consideration as
may be required by applicable law.

 

(ii)
AWARDS MAY BE GRANTED SEPARATELY OR TOGETHER. Awards may, in the discretion of the Board or the Committee, be granted either alone
or in addition to, in tandem with, or in substitution for any other award granted under any other plan of the Company or any Affiliate.
Awards granted in addition to or in tandem with other awards, or in addition to or in tandem with awards granted under any other
plan of the Company or any Affiliate, may be granted either at the same time or at a different time from the grant of such other
awards.

 

    	7

    	 

    

 

(iii)
FORMS OF PAYMENT UNDER AWARDS. Subject to the terms of the Plan and of any applicable Award Agreement, payments or transfers to
be made by the Company or an Affiliate upon the grant, exercise, or payment of an Award may be made in such form or forms as the
Board or the Committee shall determine, including, without limitation, cash, shares, other securities, other awards, or other
property, or any combination thereof, and may be made in a single payment or transfer, in installments, or on a deferred basis,
in each case in accordance with rules and procedures established by the Board or the Committee. Such rules and procedures may
include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments
or the grant or crediting of Dividend Equivalents in respect of installment or deferred payments.

 

(iv)
LIMITS ON TRANSFER OF AWARDS. No Award (other than Released Securities), and no right under any such Award, shall be assignable,
alienable, saleable, or transferable by a Participant otherwise than by will or by the laws of descent and distribution; provided,
however, that, if so determined by the Board or the Committee, a Participant may, in the manner established by the Board or the
Committee, (a) designate a beneficiary or beneficiaries to exercise the rights of the Participant, and to receive any property
distributable, with respect to any Award upon the death of the Participant or (b) transfer any Award other than an Incentive Stock
Option for bona fide estate planning purposes. Each Award, and each right under any Award, shall be exercisable, during the Participant’s
lifetime, only by the Participant, a permitted transferee or, if permissible under applicable law, by the Participant’s
guardian or legal representative. No Award (other than Released Securities), and no right under any such Award, may be pledged,
alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment, or encumbrance thereof shall be
void and unenforceable against the Company or any Affiliate.

 

(v)
TERM OF AWARDS. The term of each Award shall be for such period as may be determined by the Board or the Committee; provided,
however, that in no event shall the term of any Incentive Stock Option exceed a period of ten years from the date of its grant.

 

(vi)
SHARE CERTIFICATES. All certificates for Shares or other securities delivered under the Plan pursuant to any Award or the exercise
thereof shall be subject to such stop transfer orders and other restrictions as the Board or the Committee may deem advisable
under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange
upon which such Shares or other securities are then listed, and any applicable federal or state securities laws, and the Board
or the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

SECTION
7. AMENDMENT AND TERMINATION

 

Except
to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the Plan:

 

(a)
AMENDMENTS TO THE PLAN. The Board may amend, alter, suspend, discontinue, or terminate the Plan, including, without limitation,
any amendment, alteration, suspension, discontinuation, or termination that would impair the rights of any Participant, or any
other holder or beneficiary of any Award theretofore granted, without the consent of any share owner, Participant, other holder
or beneficiary of an Award, or other Person.

 

    	8

    	 

    

 

(b)
AMENDMENTS TO AWARDS. Unless otherwise agreed to in writing between the Company and a Participant, the Board and the Committee
may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue, or terminate, any Awards
theretofore granted, prospectively or retroactively, without the consent of any Participant, other holder or beneficiary of an
Award.

 

(c)
ADJUSTMENTS OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR NONRECURRING EVENTS. Except as provided in the following sentence,
the Board and the Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included
in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4(b)
hereof) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable
laws, regulations, or accounting principles, whenever the Board or the Committee determines that such adjustments are appropriate
in order to prevent dilution or enlargement of the benefits or potential benefits to be made available under the Plan. In the
case of any Award that is intended to qualify as performance-based compensation for purposes of Section 162(m) of the Code, neither
the Board nor the Committee shall have authority to adjust the Award in any manner that would cause the Award to fail to meet
the requirements of Section 162(m). 

 

(d)
CORRECTION OF DEFECTS, OMISSIONS, AND INCONSISTENCIES. The Board and the Committee may correct any defect, supply any omission,
or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan
into effect.

 

SECTION
8. GENERAL PROVISIONS

 

(a)
NO RIGHTS TO AWARDS. No Employee, Participant or other Person shall have any claim to be granted any Award under the Plan, and
there is no obligation for uniformity of treatment of Employees, Directors, Consultants, other holders or beneficiaries of Awards
under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient.

 

(b)
DELEGATION. The Board and the Committee may delegate to one or more officers or managers of the Company or any Affiliate, or a
committee of such officers or managers, the authority, subject to such terms and limitations as the Board or Committee shall determine,
to grant Awards to, or to cancel, modify, waive rights with respect to, alter, discontinue, suspend, or terminate Awards held
by Employees, Consultants, or other holders or beneficiaries of Awards under the Plan who are not officers or directors of the
Company for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, and who also are not “covered employees”
for purposes of Section 162(m) of the Code.

 

    	9

    	 

    

 

(c)
WITHHOLDING. The Company or any Affiliate shall be authorized to withhold from any Award granted or any payment due or transfer
made under any Award or under the Plan the amount (in cash, Shares, other securities, other Awards, or other property) of withholding
taxes due in respect of an Award, its exercise, or any payment or transfer under such Award or under the Plan and to take such
other action as may be necessary in the opinion of the Company or Affiliate to satisfy all obligations for the payment of such
taxes.

 

(d)
NO LIMIT ON OTHER COMPENSATION ARRANGEMENTS. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting
or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable
or applicable only in specific cases.

 

(e)
NO RIGHT TO EMPLOYMENT. The grant of an Award shall not be construed as giving a Participant the right to remain an employee,
director or consultant of the Company or any Affiliate. Further, the Company or an Affiliate may at any time terminate the service
of any employee, director or consultant, free from any liability, or any claim under the Plan, unless otherwise expressly provided
in the Plan or in any Award Agreement.

 

(f)
GOVERNING LAW. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be
determined in accordance with the laws of the State of Wyoming and applicable federal law.

 

(g)
SEVERABILITY. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in
any jurisdiction, or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the
Board or the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be
so construed or deemed amended without, in the determination of the Board or the Committee, materially altering the intent of
the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person, or Award, and the remainder of the Plan
and any such Award shall remain in full force and effect.

 

(h)
NO TRUST OR FUND CREATED. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any
kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To the extent that
any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any Affiliate.

 

(i)
NO FRACTIONAL SHARES. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Board and the
Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional
Share, or whether such fractional Shares of any rights thereto shall be canceled, terminated, or otherwise eliminated.

 

    	10

    	 

    

 

(j)
HEADINGS. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference. Such
headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision
thereof.

 

SECTION
9. EFFECTIVE DATE OF THE PLAN

 

Subject
to the approval of the Board of the Company, the Plan shall be effective December 9, 2019 (the “Effective Date”);
provided, however, that to the extent that Awards are granted under the Plan before its approval by the Board, the Awards will
be contingent on approval of the Plan by the Board of the Company at a Board meeting or by written consent.

 

SECTION
10. TERM OF THE PLAN

 

No
Award shall be granted under the Plan more than 10 years after the Effective Date. However, unless otherwise expressly provided
in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Board and
the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award, or to waive any conditions or rights
under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.

 

The
foregoing Stock Option Plan was duly adopted and approved by the Board of Directors on December 9, 2019.

 

Kraig
Biocraft Laboratories, Inc.

 

	By:	//Kim Thompson//	 
	CEO	 
	Corporate Secretary	 

 

    	11

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