| (i) | Loan      Agreement dated 24 January 2007 made between the Borrower and The Bank of      Nova Scotia Asia Limited (the “Bank”) (the “Loan Agreement”) in respect of      a loan facility of up to US$27,300,000 to part finance the acquisition of      m.v. “Sakonnet’’ (the “Ship”); and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Corporate      Guarantee dated 24 January 2007 made between B+H Ocean Carriers Ltd. (the      “Corporate Guarantor’’) and the Bank (the “Corporate      Guarantee’’) |
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| 1   | The      Loan Agreement shall, with effect on and from the date of this letter, be      (and is hereby) amended as follows: |
|---------------|-----------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      clause 1.2, the following definitions shall be inserted in the correct      alphabetical order: |
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|   | (b)           | m.v.      “Bonnie Smithwick”, a 83,155 dwt OBO tanker built in 1993, with IMO number      9050084, registered in the name of BHOBO One Ltd. in the Bahamas Ship      Registry; |
|--------|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | m.t.      “Rip Hudner”, a 83,155 dwt OBO tanker built in 1994, with IMO number      9077111, registered in the name of BHOBO Two Ltd. in the Bahamas Ship      Registry; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | m.t.      “Searose G”, a 83,155 dwt OBO tanker built in 1994, with IMO number      9050096, registered in the name of BHOBO Three Ltd. in the Bahamas Ship      Registry; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | m.t.      “Roger M. Jones”, a 74,868 dwt OBO tanker built in 1992, with IMO number      9009396, registered in the name of RMJ OBO Shipping Ltd. in the Bahamas      Ship Registry; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | m.t.      “Seapowet”, a 74,928 dwt OBO tanker built in 1992, with IMO number      9014729, registered in the name of K/S Difko LXXIII in the Bahamas      Ship Registry; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | m.t.      “Sagamore”, a 68,536 dwt product tanker built in 1991, with IMO number      9002192, registered in the name of Sagamore Shipping Ltd. in the Bahamas      Ship Registry; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | m.v.      “Sachem”, a 60,959 dwt product tanker built in 1988, with IMO number      8011304, registered in the name of Sachem Shipping Ltd. in the Bahamas      Ship Registry; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | m.v.      “Algonquin”, a 38,147 dwt bulk carrier built in 1983, with IMO number      8005006, registered in the name of Aquidneck Shipping Corp. in the      Bahamas Ship Registry; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | m.v.      “Capt. Thomas J Hudner Jr.”, a 44,999 dwt product tanker built in 1990,      with IMO number 8613994, registered in the name of TJH Shipholding Ltd. in      the Bahamas Ship Registry; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | m.t.      “Agawam”, a 41,209 dwt product tanker/chemical carrier built in 1982, with      IMO number 8004973, registered in the name of Agawam Shipping Corp. in the      Bahamas Ship Registry; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | m.t.      “Anawan”, a 38,884 dwt product tanker/chemical carrier built in 1981, with      IMO number 7929671, registered in the name of Anawan Shipping Corp. in the      Bahamas Ship Registry; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | m.t.      “Aquidneck”, a 40,554 dwt product tanker/chemical carrier built in 1981,      with IMO number 8004985, registered in the name of Aquidneck Shipping      Corp. in the Bahamas Ship Registry;and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | m.t.      “Pequod”, a 40,632 dwt product tanker built in 1982, with IMO number      8011304, registered in the name of Isabelle Shipholdings Corp. in the      Bahamas Ship Registry. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      clause 8.4.1(h), the definition of ‘Total Debt’ shall be deleted and      replaced with the following newdefinition: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      clause 8.4.1(k), the definition of ‘Value Adjusted Total Assets’ shall be      deleted and replaced with the following new  definition: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | in      clause 8.4.2, the current wording of paragraph (b) (‘Ratio of EBITDA to      Fixed Charges’) shall be deleted and replaced with the following new      wording: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Borrower shall procure that the Corporate Guarantor (on a consolidated      basis) shall ensure that the ratio of EBITDA to Fixed Charges shall be (i)      1.15:1.00 if 75% to 100% of the Fleet Vessels are on Contracted Employment      for a period of twelve (12) months or more, (ii) 1.20:1.00 if 50% to 74%      of the Fleet Vessels are under Contract Employment for a period of twelve      (12) months or more and (iii) 1.25:1.00 at all times otherwise, in any      event on a twelve (12) months rolling basis on assumptions approved by the      Bank’’; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | in      clause 8.4, the current wording of paragraph (d) (‘Cash and Cash      Equivalents’) shall be deleted and replaced with the following new      wording: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Borrower shall procure that the Corporate Guarantor (on a consolidated      basis) shall at all times ensure that it has Cash and Cash Equivalents      equal to the greater of (i) fifteen million Dollars ($ 15,000,000) and      (ii) six per cent (6.00%) of the long term debt of the Corporate      Guarantor’’; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | The      Corporate Guarantee shall, with effect on and from the date of this      letter, be (and is hereby) amended asfollows: |
|---------------|---------------------------------------------------------------------------------------------------------------------------------|

| (a)   | in      clause 5.3.1(h), definition of ‘Total Debt’ shall be deleted and replaced      with the following new definition: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | in      clause 5.3.1(k), the definition of ‘Value Adjusted Total Assets’ shall be      deleted and replaced with the following new  definition: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | in      clause 5.3.2, the current wording of paragraph (b) (‘Ratio of EBITDA to      Fixed Charges’) shall be deleted and replaced with the following new      wording: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | in      clause 5.3.2, the current wording of paragraph (d) (‘Cash and Cash      Equivalents’) shall be deleted and replaced with the following new      wording: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Guarantor undertakes that it shall (on a consolidated basis) at all times      ensure that it has Cash and Cash Equivalents equal to the greater of (i)      fifteen million Dollars ($ 15,000,000) and (ii) six per cent (6.00%) of      the long term debt of theGuarantor’’; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | a      new clause 5.3.3 shall be inserted with the following    wording: |
|-----------------|--------------------------------------------------------------------------|

| (f)   | a      new Schedule 1 (Form of      Compliance Certificate) shall be inserted with the wording set out      in Schedule 1 hereto. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 3   | Conditions      Precedent |
|---------------|---------------------------|

----

| From: | [·] |
|-------|----------|

| Date: | [•]      [To be delivered no      later than [one hundred and twenty (120) /forty-five (45)] days after each      Reporting Date] |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (i) | Loan      Agreement dated 24 January 2007 made between the Borrower and The Bank of      Nova Scotia Asia Limited (the “Bank”) (the “Loan Agreement”) in respect of      a loan facility of up to US$27,300,000 to part finance the acquisition of      m.v. ‘’Sakonnet’’ (the “Ship”); and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Corporate      Guarantee dated 24 January 2007 made between B+H Ocean Carriers Ltd. (the      “Corporate Guarantor’’) and the Bank (the “Corporate      Guarantee’’) |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Minimum Value Adjusted Equity      Ratio. The Minimum Value Adjusted Equity Ratio of the Guarantor (on      a consolidated basis) was [•]. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Minimum Value Adjusted      Equity. The Minimum Value Adjusted Equity of the Guarantor (on a      consolidated basis) was USD [•]. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Ratio of EBITDA to Fixed      Charges. The ratio of EBITDA to Fixed Charges of the Guarantor (on      a consolidated basis) was [•]. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Positive working capital.      The working capital of the Guarantor (on a consolidated basis) was      [·]. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (e)   | Cash and Cash Equivalents.      The Cash and Cash Equivalent of the Guarantor (on a consolidated      basis) is [·]. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

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