| 1   | We      refer to: |
|---------------|-------------------|

| (a)   | a      loan agreement (the “Loan      Agreement”) dated 13 May 2008 entered into between (i) Sachem as      borrower (ii) ourselves as Agent, (iii) ourselves as Arranger, (iv)      ourselves as Security Trustee (v) DVB Bank AG as Swap Bank and (vi) the      banks and financial institutions listed in Schedule 1 thereto as Lenders,      pursuant to which the Lenders have made available to Sachem, a loan      facility of up to a USD30,000,000 for the purposes described      therein; |
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| (b)   | a      put contract assignment (the “BHOBO Assignment”) dated      13 May 2008 entered into between (i) BHOBO and (ii) the Security Trustee,      in relation to a put contract made between BHOBO and HSH Nordbank AG (the      “BHOBO Put      Contract”); |
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| (c)   | a      put contracts assignment (the “Product Transport      Assignment”) dated 13 May 2008 entered into between (i) Product      Transport and (ii) the Security Trustee, in relation to six put contracts      made between Product Transport and Goldman Sachs International (the “Product Transport Put      Contracts”); and |
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| (d)   | an      account security deed (the “Account Security Deed”)      dated 16 May 2008 entered into between (i) Sachem and (ii) the Security      Trustee in relation to an account opened and maintained by Sachem with      Nordea Bank Finland Plc, London Branch (“Nordea”) and designated      “Sachem Shipping Ltd - Earnings Account (IBAN : GB56NDEA40487853603102)      (the “Earnings      Account”). |
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| 2   | We      also refer to the: |
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| (a)   | notice      of occurrence of an Event of Default dated 14 October 2008 in relation to      an Event of Default under clause 19.1(r) of the Loan Agreement;      and |
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| (b)   | notice      of occurrence of an Event of Default dated on or about 14 October 2008 in      relation to an Event of Default under clause 19.1(s) of the Loan      Agreement, |
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| 3   | This      letter constitutes a supplement to the Loan Agreement and the other      Finance Documents.  Terms and expressions defined in the Loan      Agreement shall have the same meanings when used  herein. |
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| 4   | Each      of Sachem, BHOBO, Product Transport and the Security Parties (together,      the “Debtor      Parties”) represents and warrants that other than the Events of      Default referred to in paragraph 2, no other Event of Default has      occurred. |
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| 5   | Pursuant      to the terms of: |
|---------------|--------------------------------|

| (ii)   | clause      3.8 of the BHOBO Assignment, BHOBO shall not sell or otherwise dispose of      the BHOBO Put Contract or any right relating thereto;  and |
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| (iii)   | clause      3.8 of the Product Transport Assignment, Product Transport shall not sell      or otherwise dispose of any of the Product Transport Put Contracts or any      right relating thereto. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | At      the request of each of the Debtor Parties, and in consideration of the      cash collateral to be provided and the prepayment of the Loan to be made      in accordance with paragraph 7 below, we, as Agent and Security Trustee,      confirm that the Creditor Parties: |
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| (a)   | agree      to waive their rights under the Finance Documents arising in relation to      the Events of Default referred paragraph 2;and |
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| (b)   | consent      to the release of the security constituted by the BHOBO Assignment and the      Product Transport Assignment and the sale of the BHOBO Put Contract and      the Product Transport Put Contracts, provided that the release and sale      may only be effected once the deposit referred to in paragraph 7(a) has      been made and notice has been given to Nordea in relation to the      crystallisation of the floatingcharge, |
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| 7   | In      consideration of the waiver and consent of the Creditor Parties granted      under paragraph 6, each of the Debtor Parties, by its countersignature      below, agrees and confirms that: |
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| (a)   | an      amount of US$12,500,000 shall be deposited by Sachem into the Earnings      Account on or before 28 October 2008 and from the time the deposit is made      up to and including 17 November 2008, the credit balance on the Earnings      Account shall not be less thanUS$12,500,000; |
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| (b)   | a      partial prepayment of the Loan in the amount of US$12,500,000 shall be      made by Sachem on or before 17 November 2008 for application in accordance      with Clause 8.10 of the LoanAgreement; |
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| (c)   | once      the regular repayment of the Loan in the amount of US$2,500,000 and the      partial prepayment referred to in paragraph (b) have each been made in      full on 17 November 2008, the Loan remaining thereafter shall be repaid by      14 equal consecutive instalments in the amount of US$750,000 each, with a      “balloon payment” of US$2,000,000 which is payable together with the final      quarterly instalment, and provided the regular repayment and the partial      prepayment referred to above are made in full on 17 November 2008, the      repayment profile of the Loan as set out in clause 8.1 of the Loan      Agreement shall, with effect from 17 November 2008, be deemed to be      amended accordingly; |
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| (d)   | without      prejudice to Sachem’s obligations to make the prepayment of the Loan in      accordance with paragraph (b) above, in the event such prepayment is not      made, the Security Trustee shall be immediately entitled to instruct      Nordea to remit the amount of US$12,500,000 (or, the entire amount then      standing to the credit of the Earnings Account, if less than      US$12,500,000) from the Earnings Account to such account as the Security      Trustee may designate, for application in prepayment of the Loan;      and |
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| (e)   | a      failure to comply with any of sub-paragraphs (a) or (b) above shall      constitute an Event of Default under clause 19.1 of the Loan Agreement and      in the event that the Security Trustee or the Agent receives less than      US$12,500,000 from Nordea, such event shall also constitute an Event of      Default under clause 19.1 of the LoanAgreement. |
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| 8   | For      the avoidance of doubt, obligations of any Debtor Party to guarantee      and/or indemnify any of the Creditor Parties under any of the Finance      Documents, the Security Interests and any other security provided by any      Debtor Party in respect of or pursuant to the Loan    Agreement: |
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| (i)   | shall      remain in full force and effect, notwithstanding the amendments      contemplated by this letter; and |
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| (ii)   | is      hereby confirmed by each of the Debtor Parties, as applicable, as      evidenced by such party’s execution of this  letter. |
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| 9   | In      addition, and pursuant to provisions of clause 3.10 of the Account      Security Deed, notice is hereby given by the Security Trustee to Sachem      that the floating charge created by clause 3.2 (a) of the Account Security      Deed is crystallized into a first fixed charge and that without the prior      written consent of the SecurityTrustee: |
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| (a)   | no      transfers or withdrawals may be made by Sachem from the Earnings      Account; |
|-----------------|----------------------------------------------------------------------------------------|

| (b)   | nor      shall Sachem be entitled to give or purport to give any instruction or      authorization to Nordea in relation to the Earnings Account or the Credit      Balance thereon. |
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| 10   | Once: |
|----------------|-------|

| (a)   | the      deposit of US$12,500,000 referred to in paragraph 7(a) has been made in      full on or before 28 October 2008, the Security Trustee will, at the cost      of the Sachem, release the security constituted by the BHOBO Assignment      and the Product Transport Assignment;and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      prepayment of US$12,500,000 referred to in paragraph 7(b) has been made in      full on or before 17 November 2008, Sachem shall thereafter be entitled to      make transfers and withdrawals from, and to operate, the Earnings Account      unless instructions to the contrary are received from the Security      Trustee. |
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