Document:

OPTION AGREEMENT

        This OPTION AGREEMENT dated the 27th day of August, 2007.

B E T W E E N :

            LOWER LAKES TOWING LTD., a corporation organized and existing under
            the laws of Canada, having its registered office at 625 Main Street,
            Port Dover, ON N0A 1N0

            (herein referred to as "Lower Lakes")

                                                              OF THE FIRST PART,

- and -

            VOYAGEUR MARITIME TRADING INC., a corporation organized and existing
            under the laws of the Province of Ontario, having its registered
            office at #576 Highway #20, Fenwick, ON L0S 1C0 on its behalf and on
            behalf of the registered owner of the "Maritime Trader"

            (herein referred to as "Voyageur ")

                                                             OF THE SECOND PART.

                                    RECITALS

A. Voyageur is the beneficial and registered holder of all right, title and
interest in the vessel "Maritime Trader" as described in greater particularity
on Schedule A attached (the "Vessel").

B. Voyageur has agreed to grant to Lower Lakes an option to purchase the Vessel
on the terms and conditions set forth herein.

C. Voyageur has agreed to grant Lower Lakes a Right of First Offer (as defined
herein) with respect to the purchase of the Vessel during the ROFO Term (as
defined herein) on the terms and conditions set forth herein.

D. Voyageur has entered into a credit agreement (as amended, supplemented,
restated or modified, the "Credit Agreement") of even date herewith with GE
Canada Finance Holding Company ("GE") among others; and

E. Lower Lakes has given to GE its guarantee (the "Guarantee") of up to
$1,250,000 of the indebtedness of Voyageur under the Credit Agreement.

<PAGE>

      FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

1.    INTERPRETATION

1.1   Headings. The headings used in this Option Agreement are solely for
convenience of reference and do not affect the interpretation of it or define,
limit or construe the contents of any provision hereof.

1.2   Number and Gender. Words importing the singular number will include the
plural and vice versa, words importing the neuter, masculine or feminine gender
will include the other genders, and words importing persons will include firms
and corporations and vice versa.

1.3   Interpretation. The verb "will" shall have a mandatory connotation,
indicating the parties' respective obligations to each other.

1.4   List of Schedules. The following schedules are attached hereto and form a
part of this Option Agreement:

               Schedule A:   Description of Vessel

2.    OPTION TO PURCHASE

2.1   Option. Voyageur hereby grants to Lower Lakes the irrevocable right and
option (the "Option") exercisable in accordance with the terms of this Agreement
to purchase the Vessel, free and clear of any and all liens, defects,
liabilities, statutory right of arrest, claims by suppliers, charges or
encumbrances of any nature or kind whatsoever, whether written or oral, direct
or indirect against the Vessel ("Encumbrances") upon the terms and conditions
set forth more particularly in this section 2.

2.2   Price. The option price (the "Option Price") will be determined as
      follows:

      (a)   if the Option becomes exercisable prior to January 1, 2012 pursuant
            to the provisions of section 2.7 hereof, then the Option Price will
            be the amount of Voyageur's outstanding indebtedness under the
            Credit Agreement as at the Early Option Date provided for in section
            2.7, less the amount of any other Encumbrances (together with
            related fees and expenses) which are undischarged at the closing of
            the purchase transaction initiated by the exercise of the Option;

      (b)   if at any time before the closing of the purchase transaction
            initiated by the exercise of the Option, GE has drawn on the Letter
            of Credit or the Guarantee, then the Option Price will be the lesser
            of: (i) Three Million Seven Hundred and Fifty Thousand Dollars (CAD
            $3,750,000), and (ii) the amount of Voyageur's outstanding
            indebtedness under the Credit Agreement less the amount of any other
            Encumbrances (together with related fees and expenses) which are
            undischarged at the closing of the purchase transaction initiated by
            the exercise of the Option; or

      (c)   if the Option is exercised pursuant to any of the provisions herein,
            other than the circumstances contemplated by (a) and (b) above, then
            the Option Price will be Five Million Dollars (CAD$5,000,000), less
            the amount of any Encumbrances (together with related fees and

<PAGE>

            expenses) which are undischarged at the closing of the purchase
            transaction initiated by the exercise of the Option

provided that, to the extent amounts referable to undischarged Encumbrances are
not paid by Lower Lakes at a closing as contemplated in subsection 2.2(a), (b)
or (c) above, Lower Lakes will forthwith assume responsibility for such
Encumbrances and will make commercially reasonable efforts to pay and discharge
such Encumbrances as soon as reasonably practicable, and will promptly notify
Voyageur thereof.

2.3   Option Start Date. The commencement date of the Option will be the earlier
of January 1, 2012 and the Early Option Date as hereinafter defined (the "Option
Start Date").

2.4   Option Term. The Option with respect to the Vessel will be exercisable
from and after the Option Start Date up to and including December 31, 2017 (the
"Option Period"). At the end of the Option Period, the Option granted hereunder
will expire and will be no longer exercisable.

2.5   Terms of Sale. The parties agree that the terms of sale will be in
accordance with the then current version of the Norwegian Saleform published by
the Norwegian Ship Brokers Association, modified as may be necessary to reflect
the particulars of the sale transaction (the "Saleform").

2.6   Procedure for Exercise of Option. During the Option Period, Lower Lakes
may exercise the Option by providing notice in writing of such exercise to
Voyageur addressed to the President at the address shown in section 9 (the
"Notice"), to which Notice will be attached a Saleform with respect to the
Vessel (the "Option Purchase Agreement") executed by Lower Lakes. The Option
Purchase Agreement will stipulate a completion date within no less than twenty
(20) days of the date of the Notice and no more than ninety (90) days
thereafter. Delivery of the Option Purchase Agreement as aforesaid by Lower
Lakes will constitute a valid exercise of the Option and will be an agreement
binding on Voyageur without any further action by Voyageur; Voyageur will
execute and deliver to Lower Lakes a copy of the Option Purchase Agreement
within ten (10) business days after the date of its receipt from Lower Lakes.
Upon closing, in accordance with the provisions of the Option Purchase
Agreement, the parties will comply with the provisions of such agreement,
including, without limitation, delivery by Lower Lakes of payment in full of the
Option Price for the Vessel by certified cheque, bank draft or wire transfer and
delivery by Voyageur of the Vessel in accordance with the terms of the Option
Purchase Agreement.

2.7   Early Option. At any time prior to January 1, 2012, the Option will become
exercisable by Lower Lakes under either of the following circumstances:

      (a)   if the "Debt Service Coverage Ratio", as such term is defined in the
            Credit Agreement, is less than 1.1 to 1.0 on any measurement date
            thereunder (other than April 30, 2008, for the purposes of which the
            Debt Service Coverage Ratio shall not be less than 0.8 to 1.0,
            provided that Voyageur will have established cash reserves
            throughout the fiscal quarter of Voyageur ended April 30, 2008 of
            not less than $40,000) (the "Default"), then Voyageur will, in each
            such instance, forthwith notify Lower Lakes of the date upon which
            the Default first occurred (the "Default Date"); if the Default
            remains uncured thereafter for greater than sixty (60) days, then
            the Option will become immediately exercisable on the day that is
            sixty-one (61) days after the Default Date, which date will

<PAGE>

            constitute the Early Option Date for the purposes of section 2.3
            hereof; or

      (b)   notwithstanding the foregoing clause (a), if GE delivers a "Trigger
            Notice" pursuant to the Guarantee, then the Option will become
            immediately exercisable and the date of the Trigger Notice will
            constitute the relevant Early Option Date for the purposes of
            Section 2.3 hereof.

In furtherance of the foregoing, Voyageur will at all relevant times promptly
furnish Lower Lakes with copies of all financial reports it provides to GE at
any time and from time to time.

3.    RIGHT OF FIRST OFFER TO PURCHASE

3.1   ROFO. Voyageur hereby grants to Lower Lakes an ongoing right of first
offer (the "Right of First Offer") to purchase the Vessel at the Option Price
determined in accordance with section 2.2, as applicable, should Voyageur at any
time during the period which will extend from the date hereof up to and
including the last day of the Option Period (the "ROFO Term") elect to sell the
Vessel to any party other than Lower Lakes.

3.2   Procedure for Offer. If at any time or from time to time Voyageur receives
an offer to purchase the Vessel from a third party dealing at arm's length (as
such term is defined in the Income Tax Act (Canada)) with Voyageur (the "Third
Party"), which it wishes to accept, Voyageur will notify Lower Lakes by written
notice (the "Third Party Offer Notice"). Pursuant to such Third Party Offer
Notice, Voyageur will offer to sell the Vessel to Lower Lakes at the Option
Price and such Third Party Offer Notice will be accompanied by a completed
Saleform executed by Voyageur (the "ROFO Purchase Agreement"), which ROFO
Purchase Agreement will provide for a closing date which will in no event be
less than sixty (60) days following the effective date of the ROFO Purchase
Agreement and no more than ninety (90) days thereafter.

3.3   Procedure for Acceptance. If Lower Lakes wishes to exercise its Right of
First Offer in response to a Third Party Offer Notice, then, within ten (10)
business days following Lower Lakes' receipt of the Third Party Offer Notice
("Lower Lakes' Notice Period"), Lower Lakes will execute the ROFO Purchase
Agreement and deliver it to Voyageur.

3.4   Non-Acceptance of Offer by Lower Lakes. If Lower Lakes does not timely
accept the terms of the Third Party Offer Notice, then Voyageur will be free to
sell the Vessel to the Third Party, provided that Voyageur:

      (a)   enters into a fully executed purchase and sale agreement for the
            Vessel with the relevant Third Party within sixty (60) days
            following the expiry of Lower Lakes' Notice Period; and

      (b)   consummates the sale of the Vessel with the relevant Third Party as
            evidenced by a Certificate of Registry from Transport Canada within
            ninety (90) days following the expiry of Lower Lakes' Notice Period.

3.5   Paramountcy. The rights of Lower Lakes pursuant to the provisions of
Article 2 hereof will, at all relevant times, be paramount to the provisions of
this Article 3 so that, notwithstanding delivery by Voyageur of any Third Party
Offer Notice, any rights or obligations of the parties in connection therewith
will always be subject to the prior right of Lower Lakes to exercise its Option.

<PAGE>

4.    VOYAGEUR'S REPRESENTATIONS AND WARRANTIES

      Voyageur hereby represents and warrants to Lower Lakes as follows:

4.1   Title. Voyageur is the beneficial and registered or recorded owner of a
100% undivided interest in the Vessel, free and clear of any and all
Encumbrances, save and except for those permitted by the Credit Agreement.

4.2   Capacity. Voyageur has and will have at all relevant times, the legal
power, right and authority to enter into this Option Agreement and the
instruments referenced herein and therein and to consummate the transactions
contemplated hereby and thereby.

4.3   Necessary Action. All requisite action (corporate or otherwise) has been
taken by Voyageur in connection with entering into this Option Agreement and the
instruments referenced herein and therein and the consummation of the
transactions contemplated hereby and thereby.

4.4   No Contravention. Neither the execution and delivery of this Option
Agreement or the documents referenced herein and therein, nor the consummation
of the transactions contemplated herein and therein, nor the compliance with the
terms of this Option Agreement and the documents referenced herein and therein
conflict with or result in a breach of any terms, conditions or provisions of,
or constitute a default under, any judicial or administrative order or decree,
any note or other evidence of any indebtedness, any contract, deed of trust,
loan, partnership agreement or other agreement to which Voyageur is a party or
affecting the Vessel or by which Voyageur may be bound.

4.5   No Litigation. There is no pending or contemplated action, suit,
arbitration, claim or proceeding, at law or in equity, affecting the Vessel or
in which Voyageur is or will be a party by reason of Voyageur's ownership of the
Vessel.

4.6   No Proceedings. No attachments, execution proceedings, assignments for the
benefit of creditors, insolvency, bankruptcy, reorganization or other
proceedings are pending or threatened against Voyageur.

4.7   No Required Consents. No consent of any partner, shareholder, creditor,
investor, judicial or administrative body, authority or other party is required
that has not been obtained. The individuals executing this Option Agreement and
the instruments referenced herein on behalf of Voyageur and the partners,
members, officers or trustees of Voyageur, if any, have the legal power, right
and actual authority to bind Voyageur to the terms and conditions hereof and
thereof.

4.8   Binding Agreement. This Option Agreement and all documents required hereby
to be executed by Voyageur are and will be valid, legally binding obligations of
and enforceable against Voyageur in accordance with their terms, subject only to
applicable bankruptcy, insolvency, reorganization, moratorium laws or similar
laws or equitable principals affecting or limiting the rights of contracting
parties generally.

<PAGE>

5.    COVENANTS OF VOYAGEUR

      Voyageur hereby covenants and agrees with Lower Lakes for the duration of
the ROFO Term as follows:

5.1   Maintenance of Vessel. Voyageur will maintain the Vessel in good seaworthy
condition, and will ensure that the Vessel is maintained in class, with
appropriate certificates delivered by the competent Canadian authorities.

5.2   Insurance. Voyageur will provide, maintain and pay for insurance in
appropriate amounts and coverages and, in particular, will ensure that the
Vessel is insured for Hull and Machinery and basic War Risks purposes.

5.3   Title. Voyageur will remain the beneficial and registered or recorded
owner of a 100% undivided interest in the Vessel; Voyageur's ownership interest
in the Vessel will remain free and clear of any Encumbrances in respect of
borrowings from GE or any other lender save and except any which, in the
aggregate, do not exceed an amount greater than Five Million Canadian Dollars
(CAD$5,000,000) and, in furtherance of the foregoing, Voyageur will timely
notify Lower Lakes of any and all Encumbrances to which the Vessel may become
subject at any relevant time.

5.4   No Contravention. Voyageur will take no action, nor will it (to the extent
of its reasonable ability) permit any action to be taken by others, which would
reasonably be expected to impair Lower Lakes' ability to exercise all of its
rights in accordance with the intent of the parties as evidenced by this Option
Agreement, nor will it refrain from taking reasonable action where to so act
would be reasonably required in order to assure Lower Lakes' continued ability
to exercise its rights hereunder.

5.5   Demand on Guarantee. If Lower Lakes receives a "Trigger Notice" under the
Guarantee, Voyageur will, if so requested by Lower Lakes, execute and deliver a
secured promissory note (the "Note") in favour of Lower Lakes (or Lower Lakes
together with any other person) (collectively the Lender), (i) bearing interest
payable in kind at the rate of 13% per annum payable quarterly, (ii) having a
term to maturity which is six months after payment in full of the term loan (the
"GE Loan") made pursuant to the Credit Agreement, (iii) requiring prepayment
concurrent with a change of control of Voyageur, (iv) providing for security in
favour of the Lender ranking second only to security granted in favour of GE on
all of Voyageur's property and assets and (v) including other customary
provisions reasonably acceptable to Lower Lakes and Voyageur. The promissory
note will rank subordinate in all respects to the GE Loan, and the terms of such
Note and all security granted therefor will be subject to prior written approval
by GE. Voyageur hereby irrevocably authorizes and directs the Lender to pay the
proceeds of the loan evidenced by the Note to GE or as GE may otherwise direct
in payment of Voyageur's obligations under the Credit Agreement.

6.    DISPUTE RESOLUTION

6.1   Negotiation. In the event of any disagreement between the parties
respecting the provisions of this Option Agreement or any agreement to be
entered into in accordance with the terms hereof (a "Dispute") and prior to the
commencement of any formal proceedings, the parties will attempt in good faith
to reach a negotiated resolution by designating a representative of appropriate

<PAGE>

authority to resolve the Dispute. Formal proceedings for the arbitration of such
Dispute in accordance with subsection (b) may not be commenced until the
expiration of fourteen (14) days after the initial request for such
negotiations.

6.2   Arbitration. In the event the parties are unable to resolve any Dispute as
contemplated by subsection (a), then such Dispute will be referred for
arbitration in accordance with the AMAC Rules in Toronto, Ontario. The parties,
before entering into arbitration, will jointly select a single arbitrator;
should they be unable to agree on the choice of arbitrator, then the appointment
of a person who is neutral to the parties in controversy will be made pursuant
to such Arbitration Act, 1991 (Ontario) or any replacing legislation. The
arbitrator will not be a director, officer or employee of either of the parties
of this Option Agreement. Such arbitrator will have expertise in the commercial
maritime field.

7.    NOTICE

7.1   All payments and communications which may be or are required to be given
by either party to the other will (in the absence of any specific provision to
the contrary) be in writing and in the case of payments delivered or sent by
prepaid registered mail and, in the case of communications, delivered or sent by
prepaid registered mail or by facsimile transmission or other electronic means
of communication including electronic mail via the internet (provided sender
obtains evidence or verification of transmission or electronic receipt) to the
parties, at their following respecting addresses and telecopier numbers:

               To Lower Lakes:

               P.O. Box 1149
               517 Main Street
               Port Dover, ON  N0A 1N0
               Attention:  Scott Bravener
               Fax No.:  (519) 583-1946

               To Voyageur:

               #576 Highway #20
               Fenwick, ON  L0S 1C0
               Attention:  Fred Huneault
               Fax No.:    905-892-8161

and if any such payment or communication is sent by prepaid registered mail, it
will, subject to the following sentence, be conclusively deemed to have been
received on the third business day following the mailing of it and, if
delivered, telecopied or sent via other electronic means, it will be
conclusively deemed to have been received at the time of delivery or
transmission. Notwithstanding the foregoing provisions with respect to mailing,
in the event that it may be reasonably anticipated that, due to any strike,
lock-out or similar event involving an interruption in postal service, any
payment or communication will not be received by the addressee by no later than
the third business day following the mailing of it, then the mailing of any
payment or communication as mentioned will not be an effective means of sending
it but rather any payment must then be sent by delivery, and any communication
by delivery, facsimile transmission or other electron means. Either party may
from time to time change its address by notice to the other in accordance with
this paragraph.

<PAGE>

8.    GOVERNING LAW

8.1   This Option Agreement and the rights and obligations and relations of the
parties will be governed by and construed in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable therein, including
Canadian maritime law (but without giving consideration to ay conflict of law
rules).

9.    ENTIRE AGREEMENT

9.1   This Option Agreement, along with the attached Schedules, contains the
entire agreement between the parties relating to the Option and the ROFO herein
granted and the purchase and sale of the Vessel pursuant hereto. Any oral
representations of modifications concerning this instrument or its exhibits will
be of no force or effect, excepting a subsequent modification in writing, signed
by the party to be charged. This Option Agreement supersedes any prior oral or
written agreement between the parties relating to the Option and ROFO herein
granted.

10.   SUCCESSORS AND ASSIGNS

10.1  This Option Agreement will bind and enure to the benefit of the respective
heirs, personal representatives, successor and assigns of the parties hereto.
Lower Lakes may assign this Option Agreement, or any rights hereunder, in its
sole discretion at any time, without the consent of Voyageur.

11.   NO JOINT VENTURE

11.1  Nothing in this Option Agreement or in the performance of this Option
Agreement will create or be deemed to create a partnership or joint venture
relationship between the parties hereto.

12.   SEVERABILITY

12.1 Should any part of this Option Agreement for any reason by declared invalid
by a court or arbitrator of competent jurisdiction, such decision will not
affect the validity of any remaining portion, which will remain in full force
and effect as if this Option Agreement was entered into without including any
such part, or portions which may, for any reason, be hereafter declared invalid.

13.   FURTHER ASSURANCES

13.1  Each party hereto agrees from time to time, subsequent to the date hereof,
to execute and deliver or cause to be executed and delivered to the others of
them such instruments or further assurances as may, in the reasonable opinion of
any of them, be necessary or desirable to give effect to the provisions of this
Option Agreement or as may be reasonably required for registering or recording
changes in ownership or other similar interests in the Vessel.

<PAGE>

14.   ENUREMENT

14.1  This Option Agreement will enure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, successors and permitted
assigns.

<PAGE>

15.   COUNTERPARTS

15.1  This Option Agreement may be executed in counterparts, each of which and
all together will constitute this Option Agreement in its entirety.

        IN WITNESS WHEREOF the parties have caused this Option Agreement to be
executed as of the date first written above.

                                      LOWER LAKES TOWING LTD.

                                      Per: /s/ Scott Bravener
                                           ------------------------------------
                                           Name: Scott Bravener
                                           Title: President

                                      VOYAGEUR MARITIME TRADING INC.

                                      Per: /s/ Fred Huneault
                                           ------------------------------------
                                           Name: Fred Huneault
                                           Title: President

<PAGE>

                                   SCHEDULE A

                          MARITIME TRADER (O.N. 325744)

Vessel

   Official Number              325744              Year Built              1967
       Vessel Name     MARITIME TRADER            Year Rebuilt                 -
       Former Name            TEAKGLEN        Port of Registry          HAMILTON
        IMO Number             6702301           Registry Date        2005 09 26
                                            ertificate Expires        2008 10 31

General Statistics

       Vessel Type        BULK CARRIER           Gross Tonnage       10,901.99 t
       Net Tonnage          7,788.17 t       Construction Type      CARVEL/FLUSH
     Vessel Length            180.90 m   Construction Material             STEEL
    Vessel Breadth             18.93 m            Vessel Depth            9.85 m

                                        Tonnage determined by tabular method: No

Engine

Engine Description             DIESEL        Number of Engines                 4
   Propulsion Type     SELF-PROPELLED            Speed (knots)              16.0
 Propulsion Method       SINGLE SCREW         Propulsion Power              5332
     Unit of Power   BRAKE HORSEPOWER

Builder
                         Builder Name   CANADIAN SHIPBUILDING & ENGINEERING LTD.
                              Address                                          -
                                                                     COLLINGWOOD
                             Province                                    ONTARIO
                              Country                                     CANADA
                          Postal Code                                          -

Owner(s)

                           Owner Name             VOYAGEUR MARITIME TRADING INC.
                              Address                         171 METLER RD. RR1
                                                                      RIDGEVILLE
                             Province                                    ONTARIO
                              Country                                     CANADA
                          Postal Code                                    L0S 1M0
                     Number of Shares                                         64

<PAGE>

Authorized Representative

            Authorized Representative             VOYAGEUR MARITIME TRADING INC.
                              Address                         171 METLER RD. RR1
                                                                      RIDGEVILLE
                             Province                                    ONTARIO
                              Country                                     CANADA
                          Postal Code                                    L0S 1M0FIFTH AMENDMENT TO CREDIT AGREEMENT

      This Fifth Amendment to Credit Agreement (this "Amendment Agreement") is
dated as of August 27, 2007 by and among Lower Lakes Towing Ltd. ("Lower
Lakes"), Lower Lakes Transportation Company, Grand River Navigation Company,
Inc., the other Credit Parties signatory hereto, General Electric Capital
Corporation, as a US Lender and as Agent, and GE Canada Finance Holding Company,
as a Cdn. Lender.

                              W I T N E S S E T H :

      WHEREAS, the Credit Parties, the lenders party thereto, and the Agent
entered into that certain Credit Agreement dated as of March 3, 2006 and amended
as of August 1, 2006, February 28, 2007, March 23, 2007 and June 26, 2007 (the
"Credit Agreement");

      WHEREAS, pursuant to that certain Memorandum of Agreement between Voyageur
Marine Transport Ltd. ("Voyageur") and Lower Lakes dated as of August 27, 2007,
Lower Lakes has agreed to purchase the vessels Voyageur Independent (the
"Independent") and Voyageur Pioneer (the "Pioneer") for an aggregate of
Cdn.$25,000,000 (the "Purchase Agreement"), and pursuant to that certain Option
Agreement dated as of August 27, 2007 between Lower Lakes and Voyageur, Voyageur
has granted Lower Lakes an option to buy the vessel Maritime Trader;

      WHEREAS, in order to finance the acquisition of the Independent and the
Pioneer, Lower Lakes has requested the Cdn. Term Lender to make an additional
Cdn. Term Loan of Cdn.$18,000,000; and

      WHEREAS, the Cdn. Term Lender has agreed to provide such additional
financing, and the Lenders and the Agent have agreed to further amend the Credit
Agreement to effect certain changes thereto requested by the Credit Parties as
set forth herein.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

      1. Defined Terms. Capitalized terms used herein and not otherwise defined
herein shall have the meanings attributed to such terms in the Credit Agreement,
as amended hereby.

      2. Amendments to Credit Agreement. The Credit Agreement is hereby amended
as follows:

      2.1. Section 1.1(b) of the Credit Agreement is hereby amended by (a)
deleting the reference therein to "Cdn.$21,200,000" and replacing it with a
reference to "Cdn.$36,868,000" and (b) replacing the table set forth in Section
1.1(b)(ii) with the following:

         ---------------------------------------------------------------
                  Period                   Quarterly Installment Amounts
         ---------------------------------------------------------------
         September 2007 - March 2008                Cdn.$636,000
         June 2008 - December 2008                Cdn.$1,176,000
         March 2009 - December 2009               Cdn.$1,176,000

<PAGE>

         ---------------------------------------------------------------
                  Period                   Quarterly Installment Amounts
         ---------------------------------------------------------------
         March 2010 - December 2010               Cdn.$1,176,000
         March 2011 - December 2011               Cdn.$1,176,000
         ---------------------------------------------------------------

      2.2. Section 1.1(d) of the Credit Agreement is hereby amended by replacing
the table set forth in Section 1.1(d)(ii) with the following:

         ---------------------------------------------------------------
                  Period                   Quarterly Installment Amounts
         ---------------------------------------------------------------
         September 2007 - December 2007             US $186,000
         March 2008 - December 2008                 US $186,000
         March 2009 - December 2009                 US $186,000
         March 2010 - December 2010                 US $186,000
         March 2011 - December 2011                 US $186,000
         ---------------------------------------------------------------

      2.3. Annex A to the Credit Agreement is hereby amended by (a) adding the
following definition in alphabetical order:

            "Independent" means the Independent, a self-propelled steel cargo
      vessel bearing Canadian Certificate of Registry Official Number 827118.

            "Independent Mortgage" means the statutory ship mortgage of the
      Independent made by Lower Lakes in favor of the Agent, such mortgage to be
      in a form satisfactory to the Lenders and Lenders' Counsel and suitable
      for registration.

            "Pioneer" means the Pioneer, a self-propelled steel cargo vessel
      bearing Canadian Certificate of Registry Official Number 395510.

            "Pioneer Mortgage" means the statutory ship mortgage of the Pioneer
      made by Lower Lakes in favor of the Agent, such mortgage to be in a form
      satisfactory to the Lenders and Lenders' Counsel and suitable for
      registration.

            "Special Letter of Credit" means the Letter of Credit issued August
      27, 2007 for the benefit of GE Canada Finance Holding Company, as agent,
      which supports the guarantee by Lower Lakes of the loan facility extended
      to Voyageur Maritime Trading Inc.

and (b) deleting the definitions of "Capital Expenditures", "Cdn. Borrowing
Base", "Cdn. Vessels", "Commitment Termination Date" and "Mortgages" in their
entirety and replacing them with the following:

            "Capital Expenditures" means, with respect to any Person, all
      expenditures (by the expenditure of cash or the incurrence of
      Indebtedness) by such Person during any measuring period for any fixed
      assets or improvements or for replacements, substitutions or additions
      thereto, that have a useful life of more than one year and that are
      required to be capitalized under GAAP, including all such expenditures
      paid pursuant to the WMS Charter; provided, that for the fourth quarter of
      Fiscal Year 2007, there shall be excluded therefrom expenditures of
      C$9,552,738 by the Credit Parties, to the extent that such expenditures
      were made exclusively from the proceeds of a capital contribution made to
      one or more of the Credit Parties by Rand Logistics, Inc.; provided,

                                       2
<PAGE>

      further, that for the purposes of paragraphs (a) and (d) of Annex G, up to
      US $6,140,000 in proceeds of the warrant exercise program of Rand
      Logistics, Inc. which ended on July 13, 2007 which were contributed to
      LLTC and applied thereby to reduce the outstanding balance of the US
      Revolving Credit Facility on May 10, 2007 shall be deducted from Capital
      Expenditures in Fiscal Year 2008.

            "Cdn. Borrowing Base" means, in respect of Lower Lakes, as of any
      date of determination thereof by the Agent from time to time, an amount
      equal to (a) eighty five percent (85%) of the amount of Eligible Cdn.
      Accounts, less (b) any Reserves established in accordance with Section
      1.6, plus (c) the amount available to be drawn under the Special Letter of
      Credit, in each case as at the date of determination.

            "Cdn. Vessels" means, collectively, the Cuyahoga, the Saginaw, the
      Mississagi, the Michipicoten, the Independent and the Pioneer.

            "Commitment Termination Date" means the earliest of (a) March 3,
      2012, (b) the date of termination of Lenders' obligations to make Advances
      or permit existing Loans to remain outstanding pursuant to Section 8.2(b),
      and (c) the date of indefeasible prepayment in full by Borrowers of the
      Loans and the cancellation and return of all Letters of Credit or the cash
      collateralization of all Letter of Credit Obligations pursuant to Annex B,
      and the permanent reduction of the Commitments to zero dollars
      (Cdn.$0/US$0).

            "Mortgages" means, collectively, the Cuyahoga Mortgage, the Saginaw
      Mortgage, the Mississagi Mortgage, the Manistee Mortgage, the Independent
      Mortgage and the Pioneer Mortgage.

      2.4. Annex B to the Credit Agreement is hereby amended by deleting the
reference to Cdn.$1,250,000 in paragraph (a) thereof and replacing it with a
reference to Cdn.$1,325,000.

      2.5. Annex G to the Credit Agreement is hereby amended by deleting Annex G
in its entirety and replacing it with the Annex G attached hereto.

      2.6. Annex I to the Credit Agreement is hereby amended by deleting Annex I
in its entirety and replacing it with the Annex I attached hereto.

      3. Conditions to Effectiveness. The effectiveness of this Amendment
Agreement is expressly conditioned upon the execution of this Agreement by the
Credit Parties, the Agent and each Lender and the satisfaction of the following
conditions:

            (a) Cdn. Term Note. Lower Lakes shall provide a duly executed
      original of a replacement Cdn. Term Note dated the date hereof, reflecting
      the terms set forth in Section 2 hereof.

            (b) Reaffirmation. Each Credit Party shall have executed and
      delivered the Reaffirmation of Guaranty in the form of Exhibit A attached
      hereto.

            (c) Mortgages. Each of the Independent Mortgage and the Pioneer
      Mortgage shall have been executed by Lower Lakes in favor of Agent.

                                       3
<PAGE>

            (d) Insurance. Agent shall have received satisfactory evidence that
      the insurance policies required by Section 5.4 with respect to each of the
      Independent and the Pioneer are in full force and effect, together with
      appropriate evidence showing loss payable and additional insured clauses
      or endorsements, as reasonably requested by Agent, in favor of Secured
      Parties.

            (e) Appraisals. Agent shall have received an appraisal of each of
      the Independent and the Pioneer by an appraiser selected by the Agent,
      which appraisals (including the asset values reflected therein) shall be
      in form and substance reasonably satisfactory to Agent.

            (f) Lien Searches and Termination Statements. Agent shall have
      received copies of transcripts of registry from Transport Canada with
      respect to each of the Independent and the Pioneer listing all effective
      notice of lien filings regarding the Independent or the Pioneer that name
      Voyageur or any Credit Party as debtor, none of which shall cover either
      the Independent or the Pioneer, and such termination statements, releases
      or other documents as may be reasonably necessary to confirm that neither
      the Independent nor the Pioneer are subject to any other Liens in favor of
      any Persons.

            (g) Approvals. Agent shall have received satisfactory evidence that
      the Credit Parties have obtained all required consents and approvals of
      all Persons, including all requisite Governmental Authorities and all
      collateral assignments with respect to any customer contracts, to the
      execution, delivery and performance of the Purchase Agreement, this
      Amendment Agreement and the other Loan Documents.

            (h) Purchase Documents. Executed copies of the Purchase Agreement
      and all documents and instruments delivered in connection therewith shall
      have been delivered to the Agent.

            (i) Due Diligence. Agent shall have completed its legal and business
      due diligence, with results reasonably satisfactory to Agent.

            (j) Opinion. Duly executed originals of an opinion of Ogilvy Renault
      LLP, counsel for the Credit Parties, together with any local counsel
      opinions reasonably requested by Agent, each in form and substance
      reasonably satisfactory to Agent and its counsel, dated the date hereof.

            (k) Fees. Borrower shall have paid all fees, costs and expenses due
      and payable on the date hereof, including the reasonable fees and out of
      pocket expenses of counsel for the Agent with respect to this Amendment
      Agreement.

            (l) Secretary's Certificate. Agent shall have received from each
      Credit Party, (i) such Person's charter (or similar formation document),
      certified by the appropriate governmental authority, (ii) good standing
      certificates in its state or province of incorporation (or formation) and
      in each other state or province requested by Agent, (iii) such Person's
      bylaws (or similar governing document), (iv) resolutions of its board of
      directors (or similar governing body) approving and authorizing such
      Person's execution, delivery and performance of this Amendment Agreement
      and the transactions contemplated thereby, and (v) signature and

                                       4
<PAGE>

      incumbency certificates of its officers executing this Amendment Agreement
      and the documents contemplated hereby, all certified by its secretary or
      an assistant secretary (or similar officer) as being in full force and
      effect without modification.

            (m) Other Documents. The Borrowers shall provide such other
      documents, instruments and agreements as the Agent may reasonably request.

      4. Consent. Notwithstanding (a) the prohibition against Acquisitions set
forth in Section 6.24 of the Credit Agreement, each Lender hereby consents to
the acquisition of the Independent and the Pioneer pursuant to the terms of the
Purchase Agreement, and (b) any provision of the Credit Agreement to the
contrary, each Lender hereby consents to the guarantee by Lower Lakes of the
loan facility extended by GE Canada Finance Holding Company ("GE Canada") to
Voyageur Maritime Trading Inc. pursuant to that certain Guarantee dated as of
the date hereof between Lower Lakes and GE Canada, as agent, and the other
transactions contemplated thereby.

      5. Representations and Warranties of the Credit Parties.

      5.1. Each of the Credit Parties represents and warrants that the
execution, delivery and performance by each of the Credit Parties of this
Amendment Agreement and the documents and instruments delivered in connection
therewith have been duly authorized by all necessary corporate action and that
this Amendment Agreement is a legal, valid and binding obligation of such Credit
Party, enforceable against such Credit Party in accordance with its terms,
except as the enforcement thereof may be subject to (a) the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law
affecting creditors' rights generally and (b) general principles of equity
(regardless of whether such enforcement is sought in a proceeding in equity or
at law).

      5.2. Each of the Credit Parties hereby certifies that each of the
representations and warranties contained in the Credit Agreement and the other
Loan Documents (as amended through the date hereof) is true and correct in all
material respects on and as of the date hereof as if made on the date hereof,
except to the extent that any such representation or warranty is stated to
relate solely to an earlier date, in which case such representation or warranty
shall be true and correct on and as of such earlier date.

      6. Reference to and Effect on the Credit Agreement.

      6.1. Upon the effectiveness of this Amendment Agreement, each reference in
the Credit Agreement to "this Agreement," "hereunder," "hereof," "herein" or
words of like import and each reference to the Credit Agreement in each Loan
Document shall mean and be a reference to the Credit Agreement as amended
hereby.

      6.2. Except as specifically amended above, all of the terms, conditions
and covenants of the Credit Agreement and the other Loan Documents shall remain
unaltered and in full force and effect and shall be binding upon the Credit
Parties in all respects and are hereby ratified and confirmed.

                                       5
<PAGE>

      6.3. The execution, delivery and effectiveness of this Amendment Agreement
shall not operate as a waiver of (a) any right, power or remedy of any Lender or
the Agent under the Credit Agreement or any of the other Loan Documents, or (b)
any Event of Default or Default under the Credit Agreement.

      7. CHOICE OF LAW. THIS AMENDMENT AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF
NEW YORK.

      8. Execution in Counterparts. This Amendment Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

      9. Headings. Section headings in this Amendment Agreement are included
herein for convenience of reference only and shall not constitute a part of this
Amendment Agreement for any other purposes.

                            [signature page follows]

                                       6
<PAGE>

      IN WITNESS WHEREOF, the Credit Parties, the Agent and the Lenders have
executed this Amendment Agreement as of the date first above written.

                                      LOWER LAKES TOWING LTD.

                                      By: /s/ Scott Bravener
                                          --------------------------------------
                                      Title: President
                                             -----------------------------------

                                      LOWER LAKES TRANSPORTATION COMPANY

                                      By: /s/ Scott Bravener
                                          --------------------------------------
                                      Title: President
                                             -----------------------------------

                                      GRAND RIVER NAVIGATION COMPANY, INC.

                                      By: /s/ Mark Rohn
                                          --------------------------------------
                                      Title: President
                                             -----------------------------------

                                      RAND LL HOLDINGS CORP.

                                      By: /s/ Laurence S. Levy
                                          --------------------------------------
                                      Title: President
                                             -----------------------------------

<PAGE>

                                      GENERAL ELECTRIC CAPITAL CORPORATION, as a
                                      US Lender and as Agent

                                      By: /s/ Joseph Tunney
                                          --------------------------------------
                                      Title: Duly Authorized Signatory
                                             -----------------------------------

                                      GE CANADA FINANCE HOLDING COMPANY, as a
                                      Cdn. Lender

                                      By: /s/ Dan Billard
                                          --------------------------------------
                                      Title: Duly Authorized Signatory

                                      GE CANADA FINANCE HOLDING COMPANY, as L/C
                                      Guarantor

                                      By: /s/ Dan Billard
                                          --------------------------------------
                                      Title:  Duly Authorized Signatory

<PAGE>

                             ANNEX G (Section 6.10)
                                       to
                                CREDIT AGREEMENT

                               FINANCIAL COVENANTS

      The Borrowers shall not breach or fail to comply with any of the following
financial covenants, each of which shall be calculated in accordance with GAAP
consistently applied:

      (a) Minimum Fixed Charge Coverage Ratio. Parent shall have on a
consolidated basis, at the end of each Fiscal Quarter set forth below, a Fixed
Charge Coverage Ratio for the 12-month period then ended of not less than the
following:

          Period                                         Ratio
          ------                                         -----
          September 30, 2007 through March 31, 2008      1.0:1.0
          June 30, 2008                                  1.1:1.0
          Thereafter                                     1.2:1.0

      (b) Minimum EBITDA. Parent shall have on a consolidated basis, at the end
of each Fiscal Quarter set forth below, EBITDA for the 12-month period then
ended of not less than the following:

          Period                                         EBITDA
          ------                                         ------
          September 30, 2007 through December 31, 2007   Cdn.$8,500,000
          March 31, 2008                                 Cdn.$9,000,000
          June 30, 2008                                  Cdn.$11,000,000
          September 30, 2008                             Cdn.$13,500,000
          December 31, 2008 through March 31, 2009       Cdn.$14,000,000
          Thereafter                                     Cdn.$15,000,000

      (c) Maximum Senior Funded Debt to EBITDA Ratio. Parent shall have on a
consolidated basis, at the end of each Fiscal Quarter set forth below, a Senior
Funded Debt to EBITDA Ratio as of the last day of such Fiscal Quarter and for
the 12-month period then ended of less than the following:

<PAGE>

          Fiscal Quarters                                Ratio
          ---------------                                -----
          September 30, 2007                             4.90:1.0
          December 31, 2007                              4.65:1.0
          March 31, 2008                                 4.30:1.00
          June 30, 2008                                  4.00:1.00
          September 30, 2008                             3.25:1.00
          December 31, 2008                              3.00:1.00
          March 31, 2009                                 2.75:1.00
          Thereafter                                     2.50:1.00

      (d) Maximum Capital Expenditures. Parent and its Subsidiaries on a
consolidated basis shall not make Capital Expenditures during the following
periods that exceed in the aggregate the amounts set forth opposite each of such
periods:

          Period                                         Maximum Capital
          ------                                         Expenditures per Period
                                                         -----------------------
          Fiscal Year 2007                               Cdn.$4,500,000
          Each Fiscal Year Thereafter                    Cdn.$6,000,000

      Notwithstanding the foregoing, Capital Expenditures shall not include any
expenditures paid by either of the US Borrowers in connection with its purchase
of the Manistee or by the Canadian Borrower in connection with its purchase of
the Independent and the Pioneer.

      (e) Minimum Appraised Value to Term Loan Outstandings. Parent shall have
on a consolidated basis, at the end of each Fiscal Year, a ratio of (i) the
aggregate appraised orderly liquidation value of the Vessels as of such date to
(ii) the aggregate principal amount outstanding of the Term Loans as of such
date of not less then 1.35:1.00.

      Unless otherwise specifically provided herein, any accounting term used in
the Agreement shall have the meaning customarily given such term in accordance
with GAAP, and all financial computations hereunder shall be computed in
accordance with GAAP consistently applied. That certain items or computations
are explicitly modified by the phrase "in accordance with GAAP" shall in no way
be construed to limit the foregoing. If any "Accounting Changes" (as defined
below) occur and such changes result in a change in the calculation of the
financial covenants, standards or terms used in the Agreement or any other Loan

<PAGE>

Document, then the Borrowers, Agent and Lenders agree to enter into negotiations
in order to amend such provisions of the Agreement so as to equitably reflect
such Accounting Changes with the desired result that the criteria for evaluating
Borrowers and their Subsidiaries' financial condition shall be the same after
such Accounting Changes as if such Accounting Changes had not been made;
provided, however, that the agreement of Requisite Lenders to any required
amendments of such provisions shall be sufficient to bind all Lenders.
"Accounting Changes" means (i) changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial
Accounting Standards Board (or successor thereto or any comparable body or
agency with similar functions), (ii) changes in accounting principles concurred
in by Borrowers' independent chartered accountants; and (iii) the reversal of
any reserves established as a result of purchase accounting adjustments. All
such adjustments resulting from expenditures made subsequent to the Closing Date
(including capitalization of costs and expenses or payment of pre-Closing Date
liabilities) shall be treated as expenses in the period the expenditures are
made and deducted as part of the calculation of EBITDA in such period. If Agent,
Borrowers and Requisite Lenders agree upon the required amendments (and all
other Credit Parties shall be deemed to agree to such amendments so agreed to by
Borrowers), then after appropriate amendments have been executed and the
underlying Accounting Change with respect thereto has been implemented, any
reference to GAAP contained in the Agreement or in any other Loan Document
shall, only to the extent of such Accounting Change, refer to GAAP, consistently
applied after giving effect to the implementation of such Accounting Change. If
Agent, Borrowers and Requisite Lenders cannot agree upon the required amendments
within thirty (30) days following the date of implementation of any Accounting
Change, then all Financial Statements delivered and all calculations of
financial covenants and other standards and terms in accordance with the
Agreement and the other Loan Documents shall be prepared, delivered and made
without regard to the underlying Accounting Change. For purposes of Section 8.1,
a breach of a Financial Covenant contained in this Annex G shall be deemed to
have occurred as of any date of determination by Agent or as of the last day of
any specified measurement period, regardless of when the Financial Statements
reflecting such breach are delivered to Agent.

      For the purposes of calculating the Financial Covenants, conversions from
US Dollars to Canadian Dollars or from Canadian Dollars to US Dollars, as
applicable, shall be done using the overnight spot rate; provided that with
respect to Interest Expense, EBITDA, Capital Expenditures, preferred dividend
payments, principal amortization and average revolver balance, such conversions
shall be determined using the trailing twelve month average exchange rates.

<PAGE>

                 ANNEX I (from Annex A - Commitments definition)
                                       to
                                CREDIT AGREEMENT

Lender(s):

US Term Loan Commitment:                                  US$6,200,000

General Electric Capital Corporation                      US$6,200,000

Cdn. Term Loan Commitment:                                Cdn$36,868,000

GE Canada Finance Holding Company                         Cdn$36,868,000

US Revolving Loan Commitment:                             US$6,500,000

General Electric Capital Corporation                      US$6,500,000

Cdn. Revolving Loan Commitment:                           Cdn$3,000,000

GE Canada Finance Holding Company                         Cdn$3,000,000

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