Document:

WARRANT AGREEMENT

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

         WHEREAS,   the  Company  is  engaged  in  a  public  offering  ("Public
Offering") of Units  ("Units") and, in connection  therewith,  has determined to
issue and deliver up to 28,750,000  Warrants  ("Public  Warrants") to the public
investors,  and (ii)  1,500,000  Warrants to Maxim Group LLC.  ("Maxim")  or its
designees  ("Representative's  Warrants" and, together with the Public Warrants,
the "Warrants"), each of such Public Warrants evidencing the right of the holder
thereof to purchase one share of common  stock,  par value $.0001 per share,  of
the Company's Common Stock ("Common Stock") for $6.00,  subject to adjustment as
described herein; and

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

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

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

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

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

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

2. Warrants.

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

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

      2.3 Registration.

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

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

      2.4  Detachability of Warrants.  The securities  comprising the Units will
not be separately  transferable until 90 days after the date hereof unless Maxim
informs the Company of its decision to allow earlier separate trading, but in no
event will Maxim allow separate  trading of the securities  comprising the Units
until the Company files a Current  Report on Form 8-K, which includes an audited
balance sheet reflecting the receipt by the Company of the gross proceeds of the
Public Offering including the proceeds received by the Company from the exercise
of the  Underwriter's  over-allotment  option, if the  over-allotment  option is
exercised prior to the filing of the Form 8-K.

      2.5 Public Warrants and  Representative's  Warrants.  The Representative's
Warrants  shall  have  the same  terms  and be in the  same  form as the  Public
Warrants  except with respect to the Warrant Price as set forth below in Section
3.1.

3. Terms and Exercise of Warrants

      3.1 Warrant Price.  Each Public Warrant shall,  when  countersigned by the
Warrant Agent, entitle the registered holder thereof,  subject to the provisions
of such  Public  Warrant and of this  Warrant  Agreement,  to purchase  from the
Company the number of shares of Common  Stock  stated  therein,  at the price of
$6.00 per whole share,  subject to the adjustments  provided in Section 4 hereof
and in the last  sentence of this Section  3.1.  Each  Representative's  Warrant
shall,  when  countersigned by the Warrant Agent,  entitle the registered holder
thereof,  subject to the provisions of such Representative's Warrant and of this
Warrant  Agreement,  to purchase from the Company the number of shares of Common
Stock  stated  therein,  at the price of $7.50 per whole  share,  subject to the
adjustments  provided  in  Section  4 hereof  and in the last  sentence  of this
Section 3.1. The term "Warrant Price" as used in this Warrant  Agreement  refers
to the price  per share at which  Common  Stock may be  purchased  at the time a
Warrant is exercised.  The Company in its sole  discretion may lower the Warrant
Price at any time prior to the Expiration Date.

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

      3.3 Exercise of Warrants.

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

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

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

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<PAGE>

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

            3.3.5 Warrant Solicitation and Warrant Solicitation Fee.

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

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

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

4. Adjustments.

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

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

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

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

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

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

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

5. Transfer and Exchange of Warrants.

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

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

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

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

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

6. Redemption.

      6.1  Redemption.  Subject to Section 6.4 hereof,  not less than all of the
outstanding Warrants may be redeemed,  at the option of the Company, at any time
after they become  exercisable and prior to their  expiration,  at the office of
the Warrant Agent,  upon the notice  referred to in Section 6.2, at the price of
$.01 per Warrant ("Redemption Price"), provided that the last sales price of the
Common  Stock has been equal to or  greater  than  $11.50 per share,  on each of
twenty (20) trading days within any thirty (30) trading day period ending on the
third business day prior to the date on which notice of redemption is given. The
provisions of this Section 6.1 may not be modified,  amended or deleted  without
the prior written consent of Maxim.

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

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

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      6.4 Outstanding Warrants Only. The Company understands that the redemption
rights provided for by this Section 6 apply only to outstanding Warrants. To the
extent a person holds rights to purchase  Warrants,  such purchase  rights shall
not be  extinguished  by  redemption.  However,  once such  purchase  rights are
exercised,  the  Company  may  redeem the  Warrants  issued  upon such  exercise
provided that the criteria for redemption is met,  including the  opportunity of
the Warrant holder to exercise prior to redemption  pursuant to Section 6.3. The
provisions of this Section 6.4 may not be modified,  amended or deleted  without
the prior written  consent of Maxim.

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

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

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

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

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

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8. Concerning the Warrant Agent and Other Matters.

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

      8.2 Resignation, Consolidation, or Merger of Warrant Agent.

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

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

            8.2.3 Merger or Consolidation of Warrant Agent. Any corporation into
which the Warrant  Agent may be merged or with which it may be  consolidated  or
any corporation  resulting from any merger or consolidation to which the Warrant
Agent shall be a party shall be the  successor  Warrant Agent under this Warrant
Agreement without any further act.

                                       9
<PAGE>

      8.3 Fees and Expenses of Warrant Agent.

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

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

      8.4 Liability of Warrant Agent.

            8.4.1 Reliance on Company Statement.  Whenever in the performance of
its  duties  under this  Warrant  Agreement,  the  Warrant  Agent  shall deem it
necessary or desirable  that any fact or matter be proved or  established by the
Company prior to taking or suffering any action  hereunder,  such fact or matter
(unless other evidence in respect thereof be herein specifically prescribed) may
be deemed to be conclusively proved and established by a statement signed by the
President  or Chairman of the Board of the Company and  delivered to the Warrant
Agent.  The Warrant  Agent may rely upon such  statement for any action taken or
suffered  in good  faith  by it  pursuant  to the  provisions  of  this  Warrant
Agreement.

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

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

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

                                       10
<PAGE>

9. Miscellaneous Provisions.

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

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

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

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

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

with a copy in each case to:

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

and

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

                                       11
<PAGE>

and

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

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

      9.4 Persons  Having Rights under this Warrant  Agreement.  Nothing in this
Warrant  Agreement  expressed  and nothing  that may be implied  from any of the
provisions  hereof is intended,  or shall be construed,  to confer upon, or give
to, any person or  corporation  other than the parties hereto and the registered
holders of the Warrants  and, for the purposes of Sections  3.3.5 6.1, 6.4, 7.4,
9.2 and 9.8 hereof,  Maxim,  any right,  remedy,  or claim under or by reason of
this Warrant Agreement or of any covenant, condition,  stipulation,  promise, or
agreement hereof. Maxim shall be deemed to be a third-party  beneficiary of this
Warrant  Agreement  with respect to Sections  3.3.5,  6.1, 6.4, 7.4, 9.2 and 9.8
hereof.  All  covenants,  conditions,  stipulations,  promises,  and  agreements
contained in this Warrant  Agreement shall be for the sole and exclusive benefit
of the parties hereto (and Maxim with respect to the Sections  3.3.5,  6.1, 6.4,
7.4, 9.2 and 9.8 hereof) and their  successors and assigns and of the registered
holders of the Warrants.

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

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

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

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

                                       12
<PAGE>

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

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

Attest:                           STAR MARITIME ACQUISITION CORP.

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

Attest:                           AMERICAN STOCK TRANSFER & TRUST COMPANY

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

                                       13UNIT PURCHASE OPTION

         THE OPTION  REPRESENTED BY THIS CERTIFICATE AND THE UNITS ISSUABLE UPON
         EXERCISE HEREOF HAVE BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933,
         AS  AMENDED,  PURSUANT  TO A  REGISTRATION  STATEMENT  FILED  WITH  THE
         SECURITIES AND EXCHANGE  COMMISSION.  HOWEVER,  NEITHER THIS OPTION NOR
         SUCH  UNITS  MAY  BE  OFFERED  OR  SOLD   EXCEPT   PURSUANT  TO  (i)  A
         POST-EFFECTIVE  AMENDMENT  TO  SUCH  REGISTRATION  STATEMENT,   (ii)  A
         SEPARATE  REGISTRATION  STATEMENT UNDER SUCH ACT, OR (iii) AN EXEMPTION
         FROM REGISTRATION UNDER SUCH ACT.

                         THE TRANSFER OF THIS OPTION IS
                         RESTRICTED AS DESCRIBED HEREIN.

                         STAR MARITIME ACQUISITION CORP.
                Option for the Purchase of Units of Common Stock
                                  and Warrants

No. 1                                                            1,500,000 Units

                  THIS  CERTIFIES  that,  for  receipt in hand of $100 and other
value received,  Maxim Group LLC, (the  "Holder"),  is entitled to subscribe for
and purchase from Star Maritime  Acquisition Corp., a Delaware  corporation (the
"Company"),  upon the terms and conditions set forth herein, at any time or from
time to time  after  the  later  of (X) the  consummation  by the  Company  of a
Business  Combination (as defined in the Prospectus dated ____________ __, 2005,
relating  to the  Company's  initial  public  offering of  securities),  and (Y)
_______________, 2006, and before 5:00 P.M. on ____________, 2010, New York time
(the "Exercise  Period"),  1,500,000 units (the "Option  Units"),  at a price of
$8.80 per Option Unit (the "Exercise Price").  Subject to adjustment as provided
herein,  each Option Unit is  comprised  of one share (the "Unit  Share") of the
Company's common stock,  par value $0.0001 per share (the "Common  Stock"),  and
one  warrant,  each  entitling  the Holder to purchase one share of Common Stock
(the "Unit  Warrant")  which Unit Warrant shall be issued  pursuant to a Warrant
Agreement, dated as of _________, 2005 (the "Public Warrant Agreement"), between
the Company and American Stock  Transfer & Trust Company,  as warrant agent (the
"Warrant Agent").  Each Unit Share and Unit Warrant will be transferable only as
an Option  Unit until the date as of which  separate  trading of the  securities
comprising  the units  issued  to the  public in the  Company's  initial  public
offering is permitted pursuant to the Public Warrant  Agreement.  This Option is
the option or one of the options  (collectively,  including  any options  issued

<PAGE>

upon the  exercise  or  transfer  of any such  options in whole or in part,  the
"Options") issued pursuant to the Underwriting Agreement, dated _______________,
2005 between the Company and Maxim Group LLC, as  representative  of the several
Underwriters named therein. As used herein the term "this Option" shall mean and
include this Option and any Option or Options  hereafter issued as a consequence
of the exercise or transfer of this Option in whole or in part.  This Option may
not be sold,  transferred,  assigned or hypothecated  until  ____________,  2006
except  that it may be  transferred,  in whole  or in  part,  to (i) one or more
officers  or  members  of the  Holder  (or the  officers  or members of any such
members);  (ii) any other underwriting firm or member of the selling group which
participated  in the Company's  initial  public  offering of securities  (or the
officers,  members or  partners  of any such  firm);  (iii) a  successor  to the
Holder, or the officers, members or partners of such successor; (iv) a purchaser
of  substantially  all of the assets of the Holder;  or (v) by operation of law;
and the term the "Holder" as used herein shall  include any  transferee  to whom
this Option has been transferred in accordance with the above.

                  Each Unit Warrant shall entitle the holder thereof to purchase
one share of Common Stock (the shares of Common Stock  issuable upon exercise of
the Unit Warrants being collectively referred to as the "Warrant Shares").  Each
Unit Warrant shall be identical in all respects to the warrants  issued pursuant
to the Public Warrant  Agreement and sold to the public (the "Public  Warrants")
except that the exercise price of each Unit Warrant will be $7.50.

                  1 This Option may be exercised during the Exercise Period,  as
to the whole or any lesser  number of whole Option  Units,  by the  surrender of
this Option (with the  election at the end hereof duly  executed) to the Company
at its office at c/o Schwartz & Weiss,  P.C., 457 Madison Avenue,  New York, New
York 10022,  or at such other place as is  designated in writing by the Company,
together  with a certified or bank  cashier's  check payable to the order of the
Company in an amount equal to the  Exercise  Price  multiplied  by the number of
Option  Units for which  this  Option is being  exercised  (the  "Unit  Purchase
Price").

                  2. (a) In lieu of the payment of the Unit Purchase Price,  the
Holder shall have the right (but not the obligation),  to require the Company to
convert this  Option,  in whole or in part,  into Option Units (the  "Conversion
Right") as provided in this Section 2. Upon  exercise of the  Conversion  Right,
the Company shall deliver to the Holder (without payment by the Holder of any of
the Unit Purchase  Price) that number of Option Units (the  "Conversion  Units")
equal to the  quotient  obtained  by  dividing  (x) the value of this Option (or
portion  thereof  as to which the  Conversion  Right is being  exercised  if the
Conversion Right is being exercised in part) at the time the Conversion Right is
exercised  (determined by  subtracting  the aggregate Unit Purchase Price of the
Option  Units as to which  the  Conversion  Right is being  exercised  in effect
immediately  prior to the exercise of the  Conversion  Right from the  aggregate
Current  Market Price (as defined in Section 6(g) hereof) of the Option Units as
to which the  Conversion  Right is being  exercised)  by (y) the Current  Market
Price of one Option Unit  immediately  prior to the  exercise of the  Conversion
Right.

                  (b) The Conversion  Right provided under this Section 2 may be
exercised  in whole or in part and at any time and from  time to time  while any
Options  remain  outstanding.  In order to exercise the  Conversion  Right,  the
Holder  shall  surrender to the  Company,  at its offices,  this Option with the
Notice of  Conversion  at the end hereof duly  executed.  The  presentation  and
surrender shall be deemed a waiver of the Holder's  obligation to pay all or any

                                      -2-
<PAGE>

portion of the aggregate purchase price payable for the Option Units as to which
such  Conversion  Right is being  exercised.  This Option (or so much thereof as
shall  have  been  surrendered  for  conversion)  shall be  deemed  to have been
converted  immediately prior to the close of business on the day of surrender of
such Option for conversion in accordance with the foregoing provisions.

                  3. Upon  each  exercise  of the  Holder's  rights to  purchase
Option Units or Conversion Units, the Holder shall be deemed to be the holder of
record of the Option Units or  Conversion  Units  issuable upon such exercise or
conversion, notwithstanding that the transfer books of the Company shall then be
closed or certificates  representing such Option Units or Conversion Units shall
not then have been  actually  delivered  to the Holder.  As soon as  practicable
after each such exercise or  conversion of this Option,  the Company shall issue
and deliver to the Holder a certificate or certificates  for the Option Units or
Conversion  Units issuable upon such exercise or  conversion,  registered in the
name of the  Holder or its  designee.  If this  Option  should be  exercised  or
converted in part only,  the Company  shall,  upon  surrender of this Option for
cancellation,  execute  and  deliver a new  Option  evidencing  the right of the
Holder  to  purchase  the  balance  of the  Option  Units  subject  to  purchase
hereunder.

                  4.  Any  Options  issued  upon the  transfer  or  exercise  or
conversion  in part of this Option shall be numbered and shall be  registered in
an Option  Register as they are issued.  The Company  shall be entitled to treat
the registered  holder of any Option on the Option Register as the owner in fact
thereof for all purposes and shall not be bound to  recognize  any  equitable or
other claim to or interest in such Option on the part of any other  person,  and
shall not be liable  for any  registration  or  transfer  of  Options  which are
registered  or to be  registered  in the name of a fiduciary or the nominee of a
fiduciary  unless made with the actual  knowledge that a fiduciary or nominee is
committing a breach of trust in requesting  such  registration  or transfer,  or
with the knowledge of such facts that its  participation  therein amounts to bad
faith. This Option shall be transferable only on the books of the Company or its
duly  authorized  agent upon delivery  thereof duly endorsed by the Holder or by
his duly  authorized  attorney  or  representative,  or  accompanied  by  proper
evidence of  succession,  assignment  or authority to transfer.  In all cases of
transfer  by an  attorney,  executor,  administrator,  guardian  or other  legal
representative,  duly  authenticated  evidence of his or its authority  shall be
produced.  Upon any  registration  of transfer,  the Company shall deliver a new
Option or Options to the person entitled thereto.  This Option may be exchanged,
at the option of the Holder  thereof,  for another  Option,  or other Options of
different  denominations,  of like tenor and  representing  in the aggregate the
right to purchase a like number of Option Units,  upon  surrender to the Company
or its duly authorized agent.  Notwithstanding the foregoing,  the Company shall
have no obligation to cause Options to be transferred on its books to any person
if, in the opinion of counsel to the Company, such transfer does not comply with
the provisions of the  Securities  Act of 1933, as amended (the "Act"),  and the
rules and regulations thereunder.

                  5. The Company shall at all times  reserve and keep  available
out of its  authorized  and  unissued  Common  Stock,  solely for the purpose of
providing  for the  exercise of the rights to purchase  all Option  Units and/or
Conversion Units and the Unit Warrants, such number of shares of Common Stock as
shall, from time to time, be sufficient therefor. The Company covenants that all
shares of Common  Stock  issuable  upon  exercise  of this  Option  and the Unit

                                      -3-
<PAGE>

Warrants,  upon receipt by the Company of the full Exercise Price therefor,  and
all shares of Common Stock  issuable upon  conversion  of this Option,  shall be
validly issued, fully paid and nonassessable and free of preemptive rights.

                  6. (a) Upon the  occurrence  of any  event (an  "Event")  as a
result  of  which an  adjustment  is made to the  exercise  price  (the  "Public
Exercise  Price")  of any of the  Public  Warrants,  the  number of Unit  Shares
issuable  thereafter upon exercise of this Option shall be adjusted to equal the
number of Unit Shares issuable prior to such Event multiplied by a fraction, the
numerator  of which shall be the Public  Exercise  Price in effect prior to such
Event and the denominator of which shall be the Public Exercise Price subsequent
to such Event.

                  (b)  Notwithstanding  any other provision of this Option,  any
adjustment  of the  exercise  price  and/or  the  number of the  Warrant  Shares
purchasable upon the exercise of the Unit Warrants shall be determined solely by
the antidilution and other adjustment provisions contained in the Public Warrant
Agreement  (which  provisions are  incorporated  herein by reference) as if such
Unit  Warrants  were and had been  outstanding  on and from the date of original
issuance of the Public Warrants.

                  (c) All calculations under this Section 6 shall be made to the
nearest cent or to the nearest one-thousandth of a share, as the case may be.

                  (d) In any case in which this Section 6 shall  require that an
adjustment  in the number of Unit Shares be made  effective  as of a record date
for a specified event,  the Company may elect to defer,  until the occurrence of
such event,  issuing to the Holder,  if the Holder  exercised  this Option after
such  record  date,  the  shares of Common  Stock,  if any,  issuable  upon such
exercise  over and above the number of Unit Shares,  if any,  issuable upon such
exercise  on the  basis of the  number of Unit  Shares  in effect  prior to such
adjustment;  provided,  however,  that the Company shall deliver to the Holder a
due  bill or other  appropriate  instrument  evidencing  the  Holder's  right to
receive such  additional  shares upon the occurrence of the event requiring such
adjustment.

                  (e) Whenever  there shall be an adjustment as provided in this
Section 6, the Company shall promptly cause written notice thereof to be sent by
registered or certified mail, postage prepaid,  to the Holder, at its address as
it shall appear in the Option Register,  which notice shall be accompanied by an
officer's  certificate  setting forth the number of Unit Shares issuable as part
of each  Option  Unit and the  exercise  price and the number of Warrant  Shares
purchasable  upon the exercise of each Unit Warrant  after such  adjustment  and
setting forth a brief  statement of the facts  requiring such adjustment and the
computation thereof.

                  (f) The Company  shall not be required to issue  fractions  of
shares of Common Stock or other  capital  stock of the Company upon the exercise
or  conversion  of this Option.  If any fraction of a share would be issuable on
the exercise or conversion of this Option (or specified portions  thereof),  the
Company  shall  purchase  such  fraction for an amount in cash equal to the same
fraction of the Current  Market  Price of such share of Common Stock on the date
of exercise or conversion of this Option.

                                      -4-
<PAGE>

                  (g) (i) Prior to the Separation Date, the Current Market Price
per Unit on any date  shall be deemed  to be the  average  of the daily  closing
prices per Unit for the 15 consecutive  trading days  immediately  preceding the
date in question.  The closing price for each day shall be (x) the last reported
sales price  regular way or, in case no such  reported  sale takes place on such
day, the closing bid price regular way, in either case on the principal national
securities  exchange or market  system on which the Units are listed or admitted
to  trading,  (y) if the Units are not  listed or  admitted  to  trading  on any
national  securities  exchange or market system,  the highest reported bid price
for the Units as furnished by the National  Association  of Securities  Dealers,
Inc. (the "NASD") on the NASD Bulletin  Board or a similar  organization  if the
______ is no longer reporting such  information,  or (z) if on any such date the
Units are not listed or admitted to trading on any national  securities exchange
or market  system,  and is not quoted by the NASD on the NASD Bulletin  Board or
any similar  organization,  as  determined  by  reference  to the "pink  sheets"
published by Pink Sheets,  LLC or, if not so published,  by such other method of
determining  market value as the board of directors of the Company shall in good
faith from time to time deem to be fair.

                  (ii) At any time after the Separation Date, the Current Market
Price per Unit shall be the sum of the  aggregate  Current  Market  Price of the
shares of Common  Stock  included  in a Unit and the  aggregate  of the  Current
Market  Price of the  Warrants.  The Current  Market  Price of a share of Common
Stock on any date shall be deemed to be the average of the daily closing  prices
for the 15 consecutive trading days immediately  preceding the date in question.
The  closing  price  for each day  shall be (x) the last  reported  sales  price
regular  way or, in case no such  reported  sale  takes  place on such day,  the
closing  bid  price  regular  way,  in  either  case on the  principal  national
securities  exchange or the market system on which the Common Stock is listed or
admitted  to  trading,  (y) if the  Common  Stock is not listed or  admitted  to
trading on any  national  securities  exchange  or market  system,  the  highest
reported  bid price for the Common  Stock as  furnished  by the NASD on the NASD
Bulletin Board or a similar  organization if NASDAQ is no longer  reporting such
information,  or (z) if on any such  date the  Common  Stock  is not  listed  or
admitted to trading on any national securities exchange and is not quoted by the
NASD on the NASD Bulletin  Board or any similar  organization,  as determined by
reference  to the "pink  sheets"  published  by Pink  Sheets,  LLC or, if not so
published,  by such other  method of  determining  market  value as the board of
directors of the Company  shall in good faith from time to time deem to be fair.
The  Current  Market  Price of a Warrant  on any date  shall be deemed to be the
average  of the  daily  closing  prices  for  the 15  consecutive  trading  days
immediately preceding the date in question. The closing price for each day shall
be (A) the last  reported  sales price  regular way or, in case no such reported
sale takes place on such day, the closing bid price  regular way, in either case
on the  principal  national  securities  exchange or market  system on which the
Warrants  are listed or admitted to trading,  (B) if the Warrants are not listed
or admitted to trading on any national securities exchange or market system, the
highest reported bid price for the Warrants as furnished by the NASD on the NASD
Bulletin Board or a similar  organization if NASDAQ is no longer  reporting such
information,  or (C) if on any such date the Warrants are not listed or admitted

                                      -5-
<PAGE>

to trading on any national securities exchange and are not quoted by the NASD on
the NASD Bulletin Board or any similar organization,  as determined by reference
to the "pink sheets" published by Pink Sheets,  LLC or, if not so published,  by
such other method of  determining  market value as the board of directors of the
Company shall in good faith from time to time deem to be fair.

                  7.  (a) In case of any  consolidation  with or  merger  of the
Company with or into another  corporation  (other than a merger or consolidation
in which the Company is the surviving or continuing corporation),  or in case of
any sale, lease or conveyance to another  corporation of the property and assets
of any nature of the  Company as an entirety or  substantially  as an  entirety,
such successor, leasing or purchasing corporation, as the case may be, shall (i)
execute  with the Holder an agreement  providing  that the Holder shall have the
right  thereafter  to receive upon  exercise or conversion of this Option solely
the kind and amount of shares of stock and other securities,  property,  cash or
any combination thereof receivable upon such consolidation,  merger, sale, lease
or  conveyance  by a holder of the number of shares of Common Stock and the Unit
Warrants  for  which  this  Option  might  have  been   exercised  or  converted
immediately prior to such consolidation,  merger, sale, lease or conveyance, and
(ii) make effective  provision in its certificate of incorporation or otherwise,
if  necessary,  to effect  such  agreement.  Such  agreement  shall  provide for
adjustments   which  shall  be  as  nearly  equivalent  as  practicable  to  the
adjustments in Section 6.

                  (b) In case of any reclassification or change of the shares of
Common Stock  issuable  upon exercise or conversion of this Option (other than a
change in par  value or from no par  value to a  specified  par  value,  or as a
result of a subdivision or  combination,  but including any change in the shares
into two or more classes or series of shares),  or in case of any  consolidation
or merger of another  corporation  into the  Company in which the Company is the
continuing  corporation  and in which  there  is a  reclassification  or  change
(including  a change  to the right to  receive  cash or other  property)  of the
shares of Common Stock  (other than a change in par value,  or from no par value
to a specified par value,  or as a result of a subdivision or  combination,  but
including  any  change  in the  shares  into two or more  classes  or  series of
shares),  the Holder shall have the right thereafter to receive upon exercise or
conversion  of this  Option  solely  the kind and  amount of shares of stock and
other securities, property, cash or any combination thereof receivable upon such
reclassification,  change,  consolidation or merger by a holder of the number of
shares of Common  Stock and Unit  Warrants for which this Option might have been
exercised  or  converted  immediately  prior to such  reclassification,  change,
consolidation  or merger.  Thereafter,  appropriate  provision shall be made for
adjustments   which  shall  be  as  nearly  equivalent  as  practicable  to  the
adjustments in Section 6.

                  (c) Notwithstanding anything to the contrary herein contained,
in the event of a transaction  contemplated  by Section 7(a),  the Holders shall
have the right during the period  commencing on the date they receive  notice of
the transaction  pursuant to Section 8 hereof and ending on the date immediately
preceding the date upon which such transaction  consummated ten days to elect to
receive from the surviving, continuing, successor, or purchasing corporation the
same  consideration  receivable  by a holder  of the  number of shares of Common
Stock for which this  Option  (and  underlying  Unit  Warrants)  might have been
exercised  immediately  prior to such  consolidation,  merger,  sale or purchase
reduced by such amount of the  consideration  as has a market value equal to the

                                      -6-
<PAGE>

sum of the Unit Purchase Price and the exercise  price of the Unit Warrants,  as
determined by the Board of Directors of the Company,  whose  determination shall
be conclusive absent manifest error. Any amounts  receivable by a Holder who has
elected the option set forth in this  Section  7(c) shall be payable at the same
time as amounts payable to stockholders in connection with any such transaction.

                  (d) The above  provisions  of this  Section 7 shall  similarly
apply to successive  reclassifications and changes of shares of Common Stock and
to successive consolidations, mergers, sales, leases or conveyances.

                  8. In case at any time the Company shall propose:

                           (a) to pay any dividend or make any  distribution  on
shares of Common Stock in shares of Common Stock or make any other  distribution
(other than regularly scheduled cash dividends which are not in a greater amount
per share than the most  recent  such cash  dividend)  to all  holders of Common
Stock; or

                           (b) to issue any rights, warrants or other securities
to all holders of Common Stock entitling them to purchase any additional  shares
of Common Stock or any other rights, warrants or other securities; or

                           (c) to  effect  any  reclassification  or  change  of
outstanding shares of Common Stock, or any consolidation, merger, sale, lease or
conveyance of property described in Section 7; or

                           (d)  to  effect  any   liquidation,   dissolution  or
winding-up of the Company;

then,  and in any one or more of such  cases,  the  Company  shall give  written
notice thereof,  by registered or certified mail, postage prepaid, to the Holder
at the  Holder's  address as it shall appear in the Option  Register,  mailed at
least 15 days prior to (i) the date as of which the  holders of record of shares
of Common  Stock to be  entitled  to receive  any such  dividend,  distribution,
rights,  warrants or other securities are to be determined,  or (ii) the date on
which any such  reclassification,  change of outstanding shares of Common Stock,
consolidation,   merger,  sale,  lease,  conveyance  of  property,  liquidation,
dissolution  or winding-up is expected to become  effective,  and the date as of
which it is expected  that  holders of record of shares of Common Stock shall be
entitled to exchange  their shares for  securities  or other  property,  if any,
deliverable   upon  such   reclassification,   change  of  outstanding   shares,
consolidation,   merger,  sale,  lease,  conveyance  of  property,  liquidation,
dissolution or winding-up.

                  9. The  issuance  of any shares or other  securities  upon the
exercise or conversion of this Option, and the delivery of certificates or other
instruments representing such shares or other securities,  shall be made without
charge to the  Holder for any tax or other  charge in respect of such  issuance.
The Company shall not, however,  be required to pay any tax which may be payable
in respect of any transfer involved in the issue and delivery of any certificate
in a name other than that of the Holder and the Company shall not be required to
issue or  deliver  any such  certificate  unless and until the person or persons

                                      -7-
<PAGE>

requesting  the issue  thereof shall have paid to the Company the amount of such
tax or shall have  established to the  satisfaction of the Company that such tax
has been paid.

                  10.  (a)  If,  at  any  time  during  the  seven-year   period
commencing  _____________________,  2005,  the Company shall file a registration
statement  (other than on Form S-4,  Form S-8, or any  successor  form) with the
Securities and Exchange  Commission (the  "Commission")  while any Underwriters'
Securities (as hereinafter  defined) are outstanding and for any reason the then
holders  of any  Underwriters'  Securities  (the  "Eligible  Holders")  will not
otherwise  have, as of the effective date of such  registration  statement,  the
benefit  of  an  effective  registration   statement,   including  all  required
amendments  and  supplements,   registering  for  sale  such  Eligible  Holders'
Underwriters'  Securities,  the Company shall give all such Eligible  Holders at
least 30 days prior written notice of the filing of such registration statement.
If requested by any Eligible  Holder in writing  within 20 days after receipt of
any such notice, the Company shall, at the Company's sole expense (including the
fees  and  disbursements  of one  counsel  for  the  Eligible  Holders,  but not
including and the  underwriting  discounts and  commissions,  if any, payable in
respect of the Underwriters'  Securities sold by any Eligible Holder),  register
or  qualify  all or,  at each  Eligible  Holder's  option,  any  portion  of the
Underwriters'  Securities  of any  Eligible  Holders  who  shall  have made such
request, concurrently with the registration of such other securities, all to the
extent  requisite to permit the public  offering  and sale of the  Underwriters'
Securities  through the facilities of all appropriate  securities  exchanges and
the over-the-counter market, and will use its best efforts through its officers,
directors,  auditors, and counsel to cause such registration statement to become
effective as promptly as  practicable.  Notwithstanding  the  foregoing,  if the
managing  underwriter  of any such offering  shall advise the Company in writing
that, in its opinion,  the distribution of all or a portion of the Underwriters'
Securities  requested to be included in the registration  concurrently  with the
securities being registered by the Company would materially adversely affect the
distribution  of such  securities  by the Company for its own account,  then the
inclusion of the  Underwriters'  Securities (or portion thereof so designated by
the  managing  underwriter)  of any  Eligible  Holder who shall  have  requested
registration of his or its Underwriters' Securities may be conditioned upon such
Eligible Holder's agreement to delay the offering and sale of such Underwriters'
Securities  for such period not to exceed 90 days (the "Delay  Period"),  as the
managing  underwriter  shall  request,  provided  that no such  delay  shall  be
required as to any Underwriters' Securities if any securities of the Company are
included in such  registration  statement and eligible for sale during the Delay
Period for the account of any person  other than the  Company  and any  Eligible
Holder  unless  the  securities  included  in such  registration  statement  and
eligible  for sale during the Delay Period for such other person shall have been
reduced  pro rata to the  reduction  of the  Registrable  Securities  which were
requested  to be included  and eligible for sale during the Delay Period in such
registration. The securities so included in such registration statement for each
such other person or persons requesting  registration shall have been reduced by
the same  proportion  (based upon the total amount of securities  for which each
person is entitled to request  registration in such  registration  statement) as
the  Underwriters'  Securities  which  were  requested  to be  included  in such
registration were reduced. As used herein, "Underwriters' Securities" shall mean
the Option Units and the Conversion Units and the Unit Shares, the Unit Warrants
and the  Warrant  Shares  which,  in each case,  have not been  previously  sold
pursuant to a  registration  statement  and are not eligible for sale under Rule
144(k) promulgated under the Act (or any successor provision thereof).

                                      -8-
<PAGE>

                  (b) If, at any time  during the  five-year  period  commencing
____________,  2005, the Company shall receive a written request,  from Eligible
Holders  who in the  aggregate  own  (or  upon  exercise  of  all  Options  then
outstanding and all Unit Warrants  included therein would own) a majority of the
total  number of shares of Common  Stock then  included  (or upon such  exercise
would be included) in the Underwriters'  Securities (the "Majority Holders"), to
register the sale of all or part of such Underwriters'  Securities,  the Company
shall,  as  promptly as  practicable,  prepare  and file with the  Commission  a
registration  statement sufficient to permit the public offering and sale of the
Underwriters'  Securities  through the facilities of all appropriate  securities
exchanges and the over-the-counter markets on which the Company's securities are
traded, and will use its best efforts through its officers, directors, auditors,
and counsel to cause such registration statement to become effective as promptly
as practicable;  provided,  however, that the Company shall only be obligated to
file two such registration statements.  All expenses incurred in connection with
such  registration  (including the fees and disbursements of one counsel for the
Eligible Holders, but not including underwriting  discounts and commissions,  if
any,  payable in respect of the  Underwriters'  Securities  sold by the Eligible
Holders)  shall be borne by the Company.  The Company  shall not be obligated to
effect any registration of its securities  pursuant to this Section 10(b) within
six  months  after  the  effective  date of a  previous  registration  statement
prepared  and filed in  accordance  with Section  l0(a) (in which  Underwriters'
Securities could have been included) or this Section 10(b).  Within ten business
days after receiving any request contemplated by this Section 10(b), the Company
shall give written notice to all the other Eligible Holders whose  Underwriters'
Securities,  advising  each of them that the  Company  is  proceeding  with such
registration  and  offering  to include  therein  all or any portion of any such
other  Eligible  Holder's  Underwriters'  Securities,  provided that the Company
receives a written  request to do so from such  Eligible  Holder  within 15 days
after receipt by him, her or it of the Company's notice.

                  (c) In the event of a registration  pursuant to the provisions
of this  Section  10,  the  Company  shall  use its best  efforts  to cause  the
Underwriters'  Securities  so  registered to be registered or qualified for sale
under the  securities  or blue sky laws of such  jurisdictions  as the Holder or
such holders may reasonably request;  provided,  however, that the Company shall
not be required to qualify to do business in any state by reason of this Section
10(c) in which it is not otherwise required to qualify to do business or to file
a general consent to service of process.

                  (d) The  Company  shall keep  effective  any  registration  or
qualification contemplated by this Section 10, and shall from time to time amend
or supplement each applicable  registration  statement,  preliminary prospectus,
final prospectus,  application,  document and communication,  for such period of
time as shall be required to permit the  Eligible  Holders to complete the offer
and sale of the Underwriters'  Securities covered thereby.  The Company shall in
no event be required to keep any such  registration or  qualification  in effect
for a period in excess of 12 months from the date on which the Eligible  Holders
are first free to sell such Underwriters' Securities;  provided,  however. that,
if the Company is required to keep any such  registration  or  qualification  in
effect with respect to securities other than the Underwriters' Securities beyond
such period, the Company shall keep such registration or qualification in effect

                                      -9-
<PAGE>

as it relates to the  Underwriters'  Securities for so long as such registration
or  qualification  remains or is required to remain in effect in respect of such
other securities.

                  (e) In the event of a registration  pursuant to the provisions
of this  Section  10, the Company  shall  furnish to each  Eligible  Holder such
reasonable number of copies of the registration  statement and of each amendment
and supplement thereto (in each case,  including all exhibits),  such reasonable
number of copies of each prospectus contained in such registration statement and
each supplement or amendment  thereto  (including each preliminary  prospectus),
all of which  shall  conform  to the  requirements  of the Act and the rules and
regulations  thereunder,  and such other  documents,  as any Eligible Holder may
reasonably request to facilitate the disposition of the Underwriters' Securities
included in such registration.

                  (f) In the event of a registration  pursuant to the provisions
of this  Section 10, the  Company  shall  furnish  each  Eligible  Holder of any
Underwriters'   Securities  so  registered   with  an  opinion  of  its  counsel
(reasonably  acceptable  to the  Eligible  Holders)  to the effect  that (i) the
registration  statement  has  become  effective  under  the  Act  and  no  order
suspending  the  effectiveness  of the  registration  statement,  preventing  or
suspending the use of the registration  statement,  any preliminary  prospectus,
any final prospectus or any amendment or supplement thereto has been issued, nor
has the Commission or any  securities or blue sky authority of any  jurisdiction
instituted or threatened  to institute any  proceedings  with respect to such an
order,  (ii) the  registration  statement  and each  prospectus  forming  a part
thereof (including each preliminary prospectus), and any amendment or supplement
thereto,  complies  as to  form  with  the Act and  the  rules  and  regulations
thereunder, and (iii) such counsel has no knowledge of any material misstatement
or omission in such  registration  statement  or any  prospectus,  as amended or
supplemented.  Such  opinion  shall  also state the  jurisdictions  in which the
Underwriters'  Securities have been registered or qualified for sale pursuant to
the provisions of Section 10(c).

                  (g) In the event of a  registration  pursuant to the provision
of this Section 10, the Company shall enter into a cross-indemnity agreement and
a contribution agreement, each in customary form, with each underwriter, if any,
and, if requested,  enter into an underwriting agreement containing conventional
representations,  warranties,  allocation  of  expenses  and  customary  closing
conditions,  including, but not limited to, opinions of counsel and accountants'
cold comfort  letters,  with any  underwriter  who  acquires  any  Underwriters'
Securities (all of which shall also inure to the benefit of and/or be additional
to, the Eligible Holders).

                  (h) The  Company  agrees  that,  until  all the  Underwriters'
Securities have been sold under a registration statement or pursuant to Rule 144
under the Act,  it shall use its best  efforts  to keep  current  in filing  all
reports, statements and other materials required to be filed with the Commission
to permit holders of the Underwriters'  Securities to sell such securities under
Rule 144.

                  (i) Except for rights  granted to holders of the Options,  the
Company will not, without the written consent of the Majority Holders,  grant to
any persons the right to request the Company to register any  securities  of the
Company,  provided that the Company may grant such registration  rights to other

                                      -10-
<PAGE>

persons so long as such  rights are  subordinate  to the rights of the  Eligible
Holders.

                  (ii) In the  event  the  Company  fails  to  comply  with  the
provisions of this Section 10, then in addition to all other  remedies which may
be  available  to the  Eligible  Holders,  the  Company  shall be  liable to the
Eligible Holders for any and all incidental,  special and consequential  damages
sustained by the Eligible  Holders as a result of such failure,  including,  but
not limited to, any loss of profits  that may have been derived from the sale of
the Underwriters' Securities to be included in a registration which could not be
sold as a result of such failure.

                  11. (a) Subject to the conditions set forth below, the Company
agrees to indemnify  and hold  harmless  each  Eligible  Holder,  its  officers,
directors,  stockholders,  partners, members, employees, agents and counsel, and
each person,  if any, who controls any such person within the meaning of Section
15 of the Act or  Section  20(a) of the  Securities  Exchange  Act of  1934,  as
amended  (the  "Exchange  Act"),  from and against any and all loss,  liability,
charge,  claim,  damage and expense  whatsoever  (which shall  include,  for all
purposes of this Section 11, but not be limited to,  reasonable  attorneys' fees
and  any  and all  reasonable  expense  whatsoever  incurred  in  investigating,
preparing or defending against any litigation,  commenced or threatened,  or any
claim  whatsoever,  and any and all amounts paid in  settlement  of any claim or
litigation),  as and when incurred,  arising out of, based upon or in connection
with (i) any untrue  statement or alleged  untrue  statement of a material  fact
contained (A) in any  registration  statement,  preliminary  prospectus or final
prospectus (as from time to time amended and supplemented),  or any amendment or
supplement thereto, relating to the sale of any of the Underwriters' Securities,
or (B) in any application or other document or communication (in this Section 11
collectively called an "application") executed by or on behalf of the Company or
based upon written information furnished by or on behalf of the Company filed in
any  jurisdiction  in order to  register  or  qualify  any of the  Underwriters'
Securities  under the  securities  or blue sky laws  thereof  or filed  with the
Commission or any securities  exchange;  or any omission or alleged  omission to
state a material  fact  required to be stated  therein or  necessary to make the
statements therein not misleading, unless such statement or omission was made in
reliance  upon and in  conformity  with  written  information  furnished  to the
Company  with  respect to such  Eligible  Holder by or on behalf of such  person
expressly for inclusion in any registration statement, preliminary prospectus or
final prospectus, or any amendment or supplement thereto, or in any application,
as the case may be, or (ii) any breach of any representation, warranty, covenant
or agreement of the Company contained in this Option. The foregoing agreement to
indemnify  shall be in addition to any liability the Company may otherwise have,
including liabilities arising under this Option.

                  If any action is brought against any Eligible Holder or any of
its officers, directors,  stockholders,  partners, members, employees, agents or
counsel, or any controlling persons of any such person (an "indemnified party"),
in respect of which indemnity may be sought against the Company  pursuant to the
foregoing paragraph, such indemnified party or parties shall promptly notify the
Company in writing of the  institution  of such  action  (but the  failure so to
notify shall not relieve the Company from any liability pursuant to this Section
11(a) unless the Company shall have been materially  prejudiced by such failure)
and the Company shall promptly assume the defense of such action,  including the

                                      -11-
<PAGE>

employment of counsel  (reasonably  satisfactory  to such  indemnified  party or
parties) and payment of expenses.  Such indemnified  party or parties shall have
the right to employ its or their own counsel in any such case,  but the fees and
expenses of such counsel  shall be at the expense of such  indemnified  party or
parties  unless the  employment  of such counsel  shall have been  authorized in
writing by the  Company in  connection  with the  defense of such  action or the
Company shall not have promptly employed counsel reasonably satisfactory to such
indemnified  party or parties to have  charge of the  defense of such  action or
such indemnified party or parties shall have reasonably concluded that there may
be one or more legal  defenses  available to it or them or to other  indemnified
parties  which  are  different  from or  additional  to those  available  to the
Company,  in any of which  events such fees and  expenses  shall be borne by the
Company and the  Company  shall not have the right to direct the defense of such
action on behalf of the indemnified  party or parties.  Anything in this Section
11 to the  contrary  notwithstanding,  the  Company  shall not be liable for any
settlement  of any such claim or action  effected  without its written  consent,
which shall not be  unreasonably  withheld.  The Company shall not,  without the
prior  written  consent  of  each  indemnified  party  that is not  released  as
described in this sentence, settle or compromise any action, or permit a default
or  consent to the entry of  judgment  in or  otherwise  seek to  terminate  any
pending  or  threatened  action,  in respect  of which  indemnity  may be sought
hereunder (whether or not any indemnified party is a party thereto), unless such
settlement, compromise, consent or termination includes an unconditional release
of each  indemnified  party from all  liability in respect of such  action.  The
Company agrees  promptly to notify the Eligible  Holders of the  commencement of
any  litigation  or  proceedings  against the Company or any of its  officers or
directors in  connection  with the sale of any  Underwriters'  Securities or any
preliminary  prospectus,  prospectus or registration  statement, or amendment or
supplement thereto, or any application relating to any sale of any Underwriters'
Securities.

                  (b) By its acceptance  hereof,  the Holder agrees to indemnify
and hold harmless the Company, each director of the Company, each officer of the
Company who shall have signed any registration  statement covering Underwriters'
Securities  held by the Holder,  each other  person,  if any,  who  controls the
Company  within the  meaning  of  Section 15 of the Act or Section  20(a) of the
Exchange  Act, and its or their  respective  counsel,  to the same extent as the
foregoing  indemnity from the Company to the Holder in Section  11(a),  but only
with  respect to  statements  or  omissions,  if any,  made in any  registration
statement,  preliminary  prospectus  or final  prospectus  (as from time to time
amended and  supplemented),  or any amendment or supplement  thereto,  or in any
application,  in  reliance  upon  and in  conformity  with  written  information
furnished  to the Company  with  respect to the Holder or the  Holder's  plan of
distribution  by or on behalf of the Holder  expressly for inclusion in any such
registration  statement,  preliminary  prospectus  or final  prospectus,  or any
amendment or supplement thereto,  or in any application,  as the case may be. If
any  action  shall be  brought  against  the  Company  or any  other  person  so
indemnified based on any such registration statement,  preliminary prospectus or
final prospectus, or any amendment or supplement thereto, or in any application,
and in respect of which  indemnity may be sought against the Holder  pursuant to
this  Section  11(b),  the Holder  shall have the rights and duties given to the

                                      -12-
<PAGE>

Company,  and the Company and each other  person so  indemnified  shall have the
rights and duties given to the indemnified parties, by the provisions of Section
11(a).

                  (c) The Company  and, by its  acceptance  hereof,  the Holder,
agree that, in order to provide for just and equitable  contribution,  if (i) an
indemnified party makes a claim for indemnification pursuant to Section 11(a) or
11(b)  (subject to the  limitations  therein but it is found in a final judicial
determination,  not subject to further appeal, that such indemnification may not
be  enforced  in such case,  even though  this  Option  expressly  provides  for
indemnification  in such case, or (ii) any  indemnified  or  indemnifying  party
seeks  contribution  under the Act,  the  Exchange  Act or  otherwise,  then the
Company (including for this purpose any contribution made by or on behalf of any
director  of the  Company,  any  officer  of the  Company  who  signed  any such
registration statement,  any controlling person of the Company, and its or their
respective   counsel),   as  one  entity,   and  the  Eligible  Holders  of  the
Underwriters'   Securities  included  in  such  registration  in  the  aggregate
(including for this purpose any  contribution  by or on behalf of an indemnified
party), as a second entity, shall contribute to the losses, liabilities, claims,
damages and  expenses  whatsoever  to which any of them may be  subject,  on the
basis of relevant  equitable  considerations  such as the relative  fault of the
Company and such Eligible Holders in connection with the facts which resulted in
such losses,  liabilities,  claims, damages and expenses. The relative fault, in
the case of an untrue statement,  alleged untrue statement,  omission or alleged
omission,  shall be determined by, among other things,  whether such  statement,
alleged statement,  omission or alleged omission relates to information supplied
by the Company or by such Eligible  Holders,  and the parties'  relative intent,
knowledge,  access to  information  and  opportunity  to correct or prevent such
statement, alleged statement,  omission or alleged omission. The Company and the
Holder  agree  that  it  would  be  unjust  and  inequitable  if the  respective
obligations  of the  Company and the  Eligible  Holders  for  contribution  were
determined  by pro  rata  or per  capita  allocation  of the  aggregate  losses,
liabilities,  claims,  damages  and  expenses  (even if the Holder and the other
indemnified parties were treated as one entity for such purpose) or by any other
method of allocation that does not reflect the equitable considerations referred
to in this Section  11(c).  In no case shall any Eligible  Holder be responsible
for a portion of the contribution  obligation imposed on all Eligible Holders in
excess of its pro rata share based on the number of shares of Common Stock owned
(or which would be owned upon exercise of all  Underwriters'  Securities)  by it
and included in such  registration as compared to the number of shares of Common
Stock  owned  (or  which  would  be owned  upon  exercise  of all  Underwriters'
Securities) by all Eligible Holders and included in such registration. No person
guilty of a fraudulent misrepresentation (within the meaning of Section 1l(f) of
the Act) shall be entitled to contribution  from any person who is not guilty of
such  fraudulent  misrepresentation.  For purposes of this Section  11(c),  each
person,  if any. who controls any Eligible  Holder within the meaning of Section
15 of the Act or Section 20(a) of the Exchange Act and each  officer,  director,
stockholder,  partner, member, employee, agent and counsel of each such Eligible
Holder or control  person  shall have the same  rights to  contribution  as such
Eligible  Holder or control  person and each  person,  if any,  who controls the
Company  within the  meaning  of  Section 15 of the Act or Section  20(a) of the
Exchange  Act,  each  officer  of the  Company  who shall  have  signed any such
registration  statement,  each  director  of  the  Company,  and  its  or  their
respective  counsel,  shall have the same rights to contribution as the Company,
subject in each case to the provisions of this Section  1l(c).  Anything in this

                                      -13-
<PAGE>

Section  1l(c) to the  contrary  notwithstanding,  no party  shall be liable for
contribution  with  respect to the  settlement  of any claim or action  effected
without its written consent,  which consent shall not be unreasonably  withheld.
This Section 1l(c) is intended to supersede any right to contribution  under the
Act, the Exchange Act or otherwise.

                  12. Unless registered pursuant to the provisions of Section 10
hereof,  the Unit Shares and Unit Warrants issued upon exercise or conversion of
the Options shall be subject to a stop transfer  order and this  certificate  or
certificates  evidencing  such Unit  Shares  and Unit  Warrants  shall  bear the
following legend:

                           "THE   [SHARES]   [WARRANTS]   REPRESENTED   BY  THIS
                  CERTIFICATE  HAVE BEEN REGISTERED  UNDER THE SECURITIES ACT OF
                  1933, AS AMENDED,  PURSUANT TO A REGISTRATION  STATEMENT FILED
                  WITH THE SECURITIES  AND EXCHANGE  COMMISSION.  HOWEVER,  SUCH
                  [SHARES] [WARRANTS] MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
                  TO  (i)  A  POST-EFFECTIVE   AMENDMENT  TO  SUCH  REGISTRATION
                  STATEMENT,  (ii) A SEPARATE REGISTRATION  STATEMENT UNDER SUCH
                  ACT, OR (iii) AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT."

                  13. Upon  receipt of evidence  satisfactory  to the Company of
the loss,  theft,  destruction  or mutilation  of any Option or any  certificate
representing  Unit Shares or Unit  Warrants  issued upon  exercise of any Option
(and upon surrender of any Option or any such  certificate  if  mutilated),  and
upon reimbursement of the Company's reasonable incidental expenses and indemnity
reasonably satisfactory to the Company, the Company shall execute and deliver to
the Holder thereof a new Option,  or a new  certificate  representing  such Unit
Shares or Unit Warrants, of like date, tenor and denomination.

                  14.  The  Holder of this  Option  shall  not  have,  solely on
account of such status,  any rights of a stockholder  of the Company,  either at
law or in equity,  or to any notice of meetings of  stockholders or of any other
proceedings of the Company, except as provided in this Option.

                  15. This Option shall be construed in accordance with the laws
of the State of New York applicable to contracts made and performed  within such
State, without regard to principles of conflicts of law.

                  16. The Company  irrevocably  consents to the  jurisdiction of
the  courts of the State of New York and of any  federal  court  located in such
State in connection with any action or proceeding  arising out of or relating to
this option,  any document or  instrument  delivered  pursuant to, in connection
with or simultaneously  with this Option, or a breach of this Option or any such
document or  instrument.  In any such action or  proceeding,  the Company waives
personal  service of any  summons,  complaint  or other  process and agrees that
service  thereof may be made in accordance  with Section __ of the  Underwriting
Agreement.

                                      -14-
<PAGE>

                  17. Any notice or other communication required or permitted to
be given  hereunder  shall be in writing and shall be mailed by certified  mail,
return  receipt  requested,  or by  Federal  Express,  Express  Mail or  similar
overnight  delivery or courier service or delivered against receipt to the party
to whom it is to be given (i) if to the  Company,  at its  address  set forth in
Section 1 of this Agreement to the attention of its President, or (ii) if to any
Holder, at his, her or its address set forth in  _______________.  Any notice or
other  communication given by certified mail shall be deemed given on the second
business day after certification thereof, any notice given by overnight delivery
or courier shall be deemed given on the next business day after  delivery to the
courier,  and any  delivery  against  receipt  shall be deemed  given when it is
received,  except,  in each case, for a notice  changing a party's address which
shall be deemed given at the time of receipt thereof.

                  18. This  Option  shall inure to the benefit of the Holder and
its  successors,  transferees and assigns and shall be binding upon and inure to
the benefit of the Company and its successors.  The Company shall not assign its
obligations under this Option except in accordance with Section 7(a) hereof, and
any  assignment by the Company in violation of this Section 18 shall be null and
void.

                  19. No course of dealing  and no delay or omission on the part
of the Holder in exercising any right, power or remedy shall operate as a waiver
thereof or otherwise  prejudice  the Holder's  rights,  powers or remedies.  Any
waiver by the  Holder of any right,  power or remedy  granted  pursuant  to this
Option must be in writing.  No right,  power or remedy conferred by this Warrant
upon the Holder shall be exclusive of any other right,  power or remedy referred
to herein or now or  hereafter  available  at law,  in  equity,  by  statute  or
otherwise, and all such remedies may be exercised singly or concurrently.

Dated: ________________, 2005
                                              STAR MARITIME ACQUISITION CORP.

                                              By:_______________________________

ATTEST:

---------------------------------

______________________, Secretary

                                      -15-
<PAGE>

                               FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the
                               attached Option.)

                  FOR VALUE  RECEIVED,  _________________________________ hereby
sells, assigns and transfers unto  ______________________  an Option to purchase
__________ of the Option Units consisting of share(s) of Common Stock, par value
$.001  per  share,  of Star  Maritime  Acquisition  Corp.  (the  "Company")  and
Warrant(s) to purchase Common Stock,  represented by the within Option, together
with all  right,  title,  and  interest  therein,  and does  hereby  irrevocably
constitute and appoint  _____________________________  attorney to transfer such
Option on the books of the Company, with full power of substitution.

Dated: _______________________________

                                       Signature:_____________________________

                                     NOTICE

         The signature on the foregoing  Assignment  must correspond to the name
as written upon the face of this Option in every particular,  without alteration
or enlargement or any change whatsoever.

                                      -16-
<PAGE>

To:  Star Maritime Acquisition Corp.
     c/o Schwartz & Weiss, P.C.
     457 Madison Avenue
     New York, New York  10022

                              ELECTION TO EXERCISE

         The  undersigned  hereby  exercises  his  or  its  rights  to  purchase
_________ Option Units covered by the within Option and tenders payment herewith
in the amount of $______ in accordance with the terms thereof, and requests that
certificates for such securities be issued in the name of, and delivered to:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and, if such number of Option Units shall not be all the Option Units covered by
the within Option, that a new Option for the balance of the Option Units covered
by the  within  Option be  registered  in the name of,  and  delivered  to,  the
undersigned at the address stated below.

Dated:_________________________      Name___________________________________
                                                        (Print)

Address:___________________________________

                                    ----------------------------------------
                                    (Signature)

                                      -17-
<PAGE>

To:  Star Maritime Acquisition Corp.
     c/o Schwartz & Weiss, P.C.
     457 Madison Avenue
     New York, New York  10022

                             CASHLESS EXERCISE FORM
              (To be executed upon conversion of the within Option)

         The  undersigned  hereby  irrevocably  elects to  surrender  the within
Option  for the  number of Option  Units as shall be  issuable  pursuant  to the
cashless  exercise  provisions  thereof,  in respect of ______ Option Units, and
requests  that  certificates  for such  securities  be issued in the name of and
delivered to:

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and,  if  such  number  of  Option  Units  shall  not be all  the  Option  Units
exchangeable or purchasable  under the within Option,  that a new Option for the
balance of the Option Units  covered by the within  Option be  registered in the
name of, and delivered to, the undersigned at the addressed stated below.

Dated:_________________________      Name___________________________________
                                                        (Print)

Address:___________________________________

                                    ----------------------------------------
                                    (Signature)

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