Document:

<PAGE>

                                                                    EXHIBIT 10.3

            ALLEN & OVERY LLP

            FIRST SUPPLEMENTAL AGREEMENT TO
            US$262,456,000 CREDIT FACILITY

            Between

            QUINTANA MARITIME LIMITED
            as Borrower

            with

            QUINTANA MARITIME INVESTORS LLC
            QUINTANA MANAGEMENT, LLC
            KING COAL SHIPCO LLC
            FEARLESSSHIPCO LLC
            COAL AGE SHIPCO LLC
            IRON MAN SHIPCO LLC
            LINDA LEAH SHIPCO LLC
            BARBARA SHIPCO LLC
            COAL GLORY SHIPCO LLC
            COAL PRIDE SHIPCO LLC
            as Guarantors

            with

            CITIBANK, N.A.
            THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND
            as Lenders

            Arranged by

            CITIGROUP GLOBAL MARKETS LIMITED
            THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

            with

            CITIBANK INTERNATIONAL PLC
            as Facility Agent

            and

            CITICORP TRUSTEE COMPANY LIMITED
            as Security Trustee
               June, 2005

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
                                                  PAGE
<S>                                               <C>
CLAUSE
1.  Interpretation..............................    2
2.  Amendments..................................    3
3.  Representations.............................    5
4.  Consents....................................    6
5.  Miscellaneous...............................    6
6.  Governing law...............................    6

SCHEDULE

1.  The Owners..................................    7
2.  Conditions Precedent........................    8
3.  The Lenders and their Commitments...........    9
4.  Revised Repayment Schedule..................   10

Signatories.....................................   13
</TABLE>

<PAGE>

THIS AGREEMENT is dated June, 2005

BETWEEN:

(1)   QUINTANA MARITIME LIMITED, a corporation incorporated according to the
      laws of the Republic of the Marshall Islands with its registered office at
      Ajeltake Island, Ajeltake Road, Majuro, Republic of the Marshall Islands,
      MH 96960 (the BORROWER);

(2)   THE COMPANIES listed in Schedule 1, each of which is a limited liability
      company formed according to the law of the country indicated against its
      name in Schedule 1, with its registered office at Ajeltake Island,
      Ajeltake Road, Majuro, Republic of the Marshall Islands, MH 96960 (each an
      OWNER and together the OWNERS);

(3)   QUINTANA MARITIME INVESTORS LLC, a limited liability company formed
      according to the laws of the Republic of the Marshall Islands with its
      registered office at Ajeltake Island, Ajeltake Road, Majuro, Republic of
      the Marshall Islands, MH 96960 (QUINTANA);

(4)   QUINTANA MANAGEMENT, LLC, a limited liability company formed according to
      the laws of the Republic of the Marshall Islands with its registered
      office at Ajeltake Island, Ajeltake Road, Majuro, Republic of the Marshall
      Islands, MH 96960 (QUINTANA MANAGEMENT and, together with the Owners and
      Quintana, the GUARANTORS);

(5)   CITIBANK, N.A. as original lender (the ORIGINAL LENDER);

(6)   THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as new lender (the NEW
      LENDER, and, together with the Original Lender, the LENDERS);

(7)   CITIGROUP GLOBAL MARKETS LIMITED (the ORIGINAL ARRANGER) and THE GOVERNOR
      AND COMPANY OF THE BANK OF SCOTLAND (the NEW ARRANGER) as joint mandated
      lead arrangers (together the ARRANGERS);

(8)   CITIBANK INTERNATIONAL PLC as administrative agent (the FACILITY AGENT);
      and

(9)   CITICORP TRUSTEE COMPANY LIMITED as security trustee for (i) the Tranche A
      Lenders (as defined herein) in relation to the Tranche A Loans (as defined
      herein), and (ii) as security trustee for the Tranche B Lenders (as
      defined herein) and Swap Bank (as defined herein) in relation to the
      Tranche B Loans (as defined herein) and the Swap Agreements (as defined
      herein) (the SECURITY TRUSTEE).

WHEREAS

(A)   This Agreement is supplemental to and amends a credit agreement dated 29th
      April, 2005 (the CREDIT Agreement) between the Borrower, the Guarantors,
      the Original Lender, the Original Arranger, the Facility Agent and the
      Security Trustee, pursuant to which the Original Lender in its capacity as
      Tranche A Lender made the Tranche A Loans available to the Borrower, and
      the Original Lender in its capacity as Tranche B Lender made the Tranche B
      Loans available to the Borrower (as each such term is defined in the
      Credit Agreement).

(B)   Pursuant to a transfer certificate dated on or around the date of this
      Agreement the Original Lender transferred its interest in the Tranche B
      Loans to the New Lender. It is a condition to such transfer certificate
      coming into effect that each of the parties hereto execute this Agreement,
      which will amend and restate the Credit Agreement.

                                        1
<PAGE>

IT IS AGREED as follows:

1.    INTERPRETATION

1.1   DEFINITIONS

(a)   In this Agreement:

      AMENDED CREDIT AGREEMENT has the meaning ascribed thereto in Clause 2.1.

      ARRANGER has the meaning ascribed thereto in the Preamble.

      BORROWER has the meaning ascribed thereto in the Preamble.

      CREDIT AGREEMENT has the meaning ascribed thereto in the Preamble.

      EFFECTIVE DATE means the date on which all documents set out in Schedule 2
      (Conditions Precedent Documents) have been received by the Facility Agent
      and which shall not in any event be later than 15th June, 2005 unless
      otherwise agreed in writing by the Borrower and the Facility Agent.

      FACILITY AGENT has the meaning ascribed thereto in the Preamble.

      GROUP shall have the meaning ascribed thereto in the Credit Agreement.

      GUARANTORS has the meaning ascribed thereto in the Preamble.

      LENDERS has the meaning ascribed thereto in the Preamble.

      NEW ARRANGER has the meaning ascribed thereto in the Preamble.

      NEW LENDER has the meaning ascribed thereto in the Preamble.

      ORIGINAL ARRANGER has the meaning ascribed thereto in the Preamble.

      ORIGINAL LENDER has the meaning ascribed thereto in the Preamble.

      OWNERS has the meaning ascribed thereto in the Preamble.

      QUINTANA has the meaning ascribed thereto in the Preamble.

      QUINTANA MANAGEMENT has the meaning ascribed thereto in the Preamble.

      SECURITY TRUSTEE has the meaning ascribed thereto in the Preamble.

      SUBORDINATION DEED shall have the meaning ascribed thereto in the Credit
      Agreement.

      SWAP AGREEMENTS shall have the meaning ascribed thereto in the Credit
      Agreement.

(b)   Capitalised terms defined in the Credit Agreement have, unless expressly
      defined in this Agreement, the same meaning in this Agreement.

1.2   CONSTRUCTION

      The principles of construction set out in Clause 1.2 of the Credit
      Agreement will have effect as if set out in this Agreement.

                                        2
<PAGE>

2.    AMENDMENTS

2.1   DECLARATION OF EFFECTIVE DATE

(a)   Subject as set out below, the Credit Agreement will be amended from the
      Effective Date in accordance with Clause 2.2 (the AMENDED CREDIT
      AGREEMENT).

(b)   The Credit Agreement will not be amended by this Agreement unless the
      Facility Agent notifies the Borrower and the Finance Parties that it has
      received all of the documents set out in Schedule 2 (Conditions Precedent
      Documents) in form and substance satisfactory to the Facility Agent on or
      prior to the Effective Date. The Facility Agent must give this
      notification as soon as reasonably practicable.

(c)   If the Facility Agent fails to give the notification under Clause 2.1 (b)
      by the Effective Date, the Credit Agreement will not be amended in the
      manner contemplated by this Agreement.

2.2   AMENDMENTS TO CREDIT AGREEMENT

      From the Effective Date the Credit Agreement will be amended as follows:

      (a)   All references in the Credit Agreement to "Arranger" shall be
            construed as including both the Original Arranger and the New
            Arranger;

      (b)   The definition of "Final Maturity Date" in Clause 1.1. of the Credit
            Agreement shall be deleted in its entirety and replaced with the
            following:

            "FINAL MATURITY DATE means the date falling six (6) years and five
            (5) months from the date of this Agreement."

      (c)   The definition of "Operating Account" in Clause 1.1 of the Credit
            Agreement shall be deleted in its entirety and replaced with the
            following:

            "OPERATING ACCOUNT" means the bank account to be opened by Quintana
            Management with the Account Bank with account number 0/444072/008
            USD, IBAN GR97 0840 0020 0000 0044 4072 008 and designated "Quintana
            Management LLC - Operating Account"."

      (d)   The definition of "Tranche A Margin" in Clause 1.1 of the Credit
            Agreement shall be deleted in its entirety and replaced with the
            following:

            "TRANCHE A MARGIN means 1.565 per cent. per annum."

      (e)   The definition of "Tranche B Margin" in Clause 1.1 of the Credit
            Agreement shall be deleted in its entirety and replaced with the
            following:

            "TRANCHE B MARGIN means 2.75 per cent. per annum."

      (f)   The references to "tanker" in the definition of each of Vessel 1,
            Vessel 2, Vessel 3, Vessel 4, Vessel 5, Vessel 6, Vessel 7 and
            Vessel 8 in Clause 1.1 of the Credit Agreement shall be deleted and
            replaced with "bulk carrier".

      (g)   The first sentence of Clause 5(a) of the Credit Agreement shall be
            deleted in its entirety and replaced with the following:

            "The Borrower must repay the Loans to the Facility Agent on each
            Repayment Date in accordance with the relevant Repayment Schedule,
            provided that with respect to the

                                        3
<PAGE>

            Tranche A Repayment Instalment due on each of the first and second
            Tranche A Repayment Dates, (i) the Borrower shall be permitted to
            defer payment of that portion of each such Tranche A Repayment
            Instalments that exceeds the amounts on deposit in the Reserve
            Account on each such date until the date on which the Charter
            Shortfall Payment referred to in Clause 6.3(d) shall become due and
            payable at which time such Charter Shortfall Payment shall first be
            applied to repay such deferred amount and, to the extent of any
            excess, then applied in accordance with the second sentence of such
            Clause 6.3(d) and (ii) no Default shall be deemed to exist as a
            result of such deferral."

      (h)   Clause 6.2(b) of the Credit Agreement shall be deleted in its
            entirety and replaced with the following:

            "(b)  The Facility Agent shall apply the prepayment referred to in
                  Clause 6.2(a) in accordance with Clause 8.5 of the
                  Subordination Deed."

      (i)   The second sentence of Clause 6.3(d) of the Credit Agreement shall
            be deleted in its entirety and replaced with the following:

            "The Charter Shortfall Payment shall be applied by the Facility
            Agent against Tranche A Loans, against Tranche A Repayment
            Instalments in order of maturity. "

      (j)   The references to "Tranche A Majority Lenders" in each of:

            (i)   Clause 6.4(b) of the Credit Agreement;

            (ii)  Clause 20.4 of the Credit Agreement;

            (iii) Clause 20.11(a) of the Credit Agreement;

            (iv)  Clauses 20.14 (a) and (b) of the Credit Agreement; and

            (v)   Clause 21.7(b)(ii) of the Credit Agreement,

            shall each be deleted and replaced with "Majority Lenders".

      (k)   Clause 12.4 of the Credit Agreement shall be amended by the addition
            of a new final sentence as follows:

            "The requirements of this Section 12.4 shall not be applicable with
            respect to any shortfall in the Reserve Account that arises as a
            result of the Borrower's inability to deposit sufficient funds in
            the Reserve Account to provide for the payment of the Tranche A
            Repayment Instalment due on each of the first and second Tranche A
            Repayment Dates, and no Default shall be deemed to exist as a result
            of such failure."

      (l)   Clause 12.5 of the Credit Agreement shall be amended by the addition
            of a new final sentence as follows:

            "The Facility Agent shall apply amounts standing to the credit of
            the Reserve Account against Tranche A Loans and Tranche B Loans that
            are then due and payable on a pari passu basis."

      (m)   Schedule 1, Part 2 of the Credit Agreement shall be deleted in its
            entirety and replaced with a new list of Original Lenders and their
            commitments in the form set out in Schedule 3 (Lenders and their
            Commitments) hereto.

                                        4
<PAGE>

      (n)   Schedule 6 of the Credit Agreement shall be deleted in its entirety
            and replaced with a new repayment schedule in the form set out in
            Schedule 4 (Revised Repayment Schedule) hereto.

2.3   APPOINTMENT OF ADDITIONAL ARRANGER

      Pursuant to Clause 30.7 of the Credit Agreement the Original Arranger has
      appointed the New Arranger as an additional lead arranger. Each of the
      parties to this Agreement consents to such appointment and all references
      to "Arranger" in the Credit Agreement shall, from the Effective Date, be
      construed accordingly.

2.4   CONSENT TO TRANSFER

      In accordance with Clause 30.2(c) of the Credit Agreement, the Borrower
      hereby consents to the transfer by the Original Lender to the New Lender
      of all of Original Lender's rights and obligations with respect to the
      Tranche B Loans and the Commitment to make Tranche B Loans.

3.    REPRESENTATIONS

3.1   REPRESENTATIONS

      The representations set out in this Clause are made by each of the
      Borrower and the Guarantors on the date of this Agreement to each Finance
      Party.

3.2   POWERS AND AUTHORITY

      It has the power to enter into and perform, and has taken all necessary
      action to authorise the entry into and performance of this Agreement and
      the transactions contemplated by this Agreement.

3.3   LEGAL VALIDITY

      This Agreement constitutes its legally binding, valid and enforceable
      obligation and in entering into this Agreement, it is acting on its own
      account.

3.4   NON-CONFLICT

      The entry into and performance by it of, and the transactions contemplated
      by, this Agreement do not and will not conflict with:

      (a)   any law or regulation or judicial or official order applicable to it
            as at the date of this Agreement;

      (b)   the constitutional documents of any member of the Group; or

      (c)   any document which is binding on it or any member of the Group or
            any assets of any member of the Group.

3.5   AUTHORISATIONS

      All authorisations, consents, registrations, filings, notarisations and
      the like required by it or desirable in connection with the entry into,
      performance, validity and enforceability of, and the transactions
      contemplated by, this Agreement have been obtained or effected (as
      appropriate) and are in full force and effect.

                                        5
<PAGE>

3.6   CREDIT AGREEMENT

      The representations set out in clause 15 (Representations) of the Credit
      Agreement are true as if made on the date of this Agreement and on the
      Effective Date, in each case as if references to the Credit Agreement are
      references to the Amended Credit Agreement with reference to the facts and
      circumstances then existing.

4.    CONSENTS

      Each of the Borrower and the Guarantors:

      (a)   agrees to the amendment and restatement of the Credit Agreement as
            contemplated by this Agreement; and

      (b)   with effect from the Effective Date, confirms that any security or
            guarantee created or given by it under a Finance Document will:

            (i)   continue in full force and effect; and

            (ii)  extend to the liabilities and obligations of the Borrower to
                  the Finance Parties under the Finance Documents as amended by
                  this Agreement.

5.    MISCELLANEOUS

5.1   Each of this Agreement and the Amended Credit Agreement is a Finance
      Document.

5.2   Subject to the terms of this Agreement, the Credit Agreement will remain
      in full force and effect and, from the Effective Date, the Credit
      Agreement and this Agreement will be read and construed as one document.

6.    GOVERNING LAW

6.1   This Agreement is governed by English law.

6.2   Clauses 34, 35, 36, 37, 38 and 39 of the Credit Agreement shall apply to
      this Agreement as if they were set out in full herein.

This Agreement has been entered into on the date stated at the beginning of this
Agreement.

                                        6
<PAGE>

                                   SCHEDULE 1

                                   THE OWNERS

<TABLE>
<CAPTION>
                                 COUNTRY OF
     NAME OF OWNER               FORMATION
<S>                     <C>
  Fearless Shipco LLC   Republic of the Marshall Islands

 King Coal Shipco LLC   Republic of the Marshall Islands

 Coal Glory Shipco LLC  Republic of the Marshall Islands

  Coal Age Shipco LLC   Republic of the Marshall Islands

  Iron Man Shipco LLC   Republic of the Marshall Islands

 Linda Leah Shipco LLC  Republic of the Marshall Islands

  Barbara Shipco LLC    Republic of the Marshall Islands

 Coal Pride Shipco LLC  Republic of the Marshall Islands
</TABLE>

                                        7
<PAGE>

                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

1.    A duly executed original of a transfer certificate between the Original
      Lender in its capacity as Tranche B Lender and the New Lender, in
      substantially the same form as that set out in Schedule 5 to the Credit
      Agreement, pursuant to which the Original Lender transfers and agrees to
      transfer all of its interest in the Tranche B Loans to the New Lender.

2.    A duly executed deed of accession executed by the New Lender, in
      substantially the same form as that set out in Schedule 2 to the
      Subordination Deed, pursuant to which the New Lender accedes to and agrees
      to be bound by the terms of the Subordination Deed.

3.    A duly executed original of a deed of amendment to the Subordination Deed,
      executed by each of the parties to the Subordination Deed.

                                        8
<PAGE>

                                   SCHEDULE 3

                        THE LENDERS AND THEIR COMMITMENTS

<TABLE>
<CAPTION>
     Name of Lender         Tranche A Commitments(US$)    Tranche B Commitments (US$)
------------------------  ------------------------------  --------------------------
<S>                       <C>                             <C>
     Citibank N.A.                $213,245,500                           -

The Governor and Company
 of the Bank of Scotland                     -                 $49,210,500
</TABLE>

                                        9
<PAGE>

                                   SCHEDULE 4

                           REVISED REPAYMENT SCHEDULE

                                    TRANCHE A
<TABLE>
<CAPTION>
INSTALMENT
  NUMBER            DATE          AMOUNT (UNITED STATES DOLLARS)
-----------  ------------------  -------------------------------
<S>          <C>                 <C>
 1            30 December, 2005            19,500,000

 2             30 March, 2006              11,750,000

 3              30 June, 2006              11,750,000

 4           30 September, 2006            11,750,000

 5            30 December, 2006            11,750,000

 6             30 March, 2007               7,125,000

 7              30 June, 2007               7,125,000

 8           30 September, 2007             7,125,000

 9            30 December, 2007             7,125,000

10             30 March, 2008               5,250,000

11              30 June, 2008               5,250,000

12           30 September, 2008             5,250,000

13            30 December, 2008             5,250,000

14             30 March, 2009               4,250,000

15              30 June, 2009               4,250,000

16           30 September, 2009             4,250,000

17            30 December, 2009             4,250,000

18             30 March, 2010               4,250,000

19              30 June, 2010               4,250,000
</TABLE>

                                       10
<PAGE>

<TABLE>
<S>      <C>                 <C>
20       30 September, 2010   4,250,000

21        30 December, 2010   4,250,000

22         30 March, 2011     4,250,750

23          30 June, 2011     4,250,750

24       30 September, 2011  54,744,000
</TABLE>

                                    TRANCHE B

<TABLE>
<CAPTION>
INSTALMENT
  NUMBER                      DATE                    AMOUNT (UNITED STATES DOLLARS)
-----------  --------------------------------------  ------------------------------
<S>          <C>                                     <C>
 1                      30 December, 2005                              0

 2            12 months from the date of the Credit           25,000,000
                            Agreement

 3                        30 June, 2006                                0

 4                     30 September, 2006                              0

 5                      30 December, 2006                              0

 6                       30, March, 2007                         333,375

 7                       30, June, 2007                          333,375

 8                     30, September, 2007                       333,375

 9                     30, December, 2007                        333,375

10                       30, March, 2008                         333,375

11                       30, June, 2008                          333,375

12                     30, September, 2008                       333,375

13                     30, December, 2008                        333,375

14                       30, March, 2009                         333,375

15                       30, June, 2009                          333,375

16                    30, September, 2009                        333,375
</TABLE>

                                       11
<PAGE>

<TABLE>
<S>          <C>                   <C>
17           30, December, 2009       333,375

18             30, March, 2009        333,375

19             30, June, 2009         333,375

20           30, September, 2009      333,375

21           30, December, 2009       333,375

22             30, March, 2010        333,375

23             30, June, 2010         333,375

24           30 September, 2011    18,209,750
</TABLE>

                                       12
<PAGE>

                                   SIGNATORIES

THE BORROWER

QUINTANA MARITIME LIMITED

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

THE GUARANTORS

QUINTANA MARITIME INVESTORS LLC

By: ___________________________

Name: Paul J. Cornell

Title: Manager

QUINTANA MANAGEMENT LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

KING COAL SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
      Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

                                       13
<PAGE>

FEARLESS SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

COAL AGE SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

IRON MAN SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

LINDA LEAH SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

                                       14
<PAGE>

BARBARA SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

COAL GLORY SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

COAL PRIDE SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: ___________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

THE LENDERS

CITIBANK, N.A.

By:

THE GOVERNOR AND COMPANY OF THE
BANK OF SCOTLAND

By:

                                       15
<PAGE>

THE ARRANGERS

CITIGROUP GLOBAL MARKETS LIMITED

By:

THE GOVERNOR AND COMPANY OF THE
BANK OF SCOTLAND

By:

THE FACILITY AGENT

CITIBANK INTERNATIONAL PLC

By:

THE SECURITY TRUSTEE

CITICORP TRUSTEE COMPANY LIMITED

By:

                                       16<PAGE>

                                                                    EXHIBIT 10.4

                 ALLEN & OVERY LLP

                 SECOND SUPPLEMENTAL AGREEMENT TO
                 US$262,456,000 CREDIT FACILITY

                 Between

                 QUINTANA MARITIME LIMITED
                 as Borrower

                 with

                 QUINTANA MARITIME INVESTORS LLC
                 QUINTANA MANAGEMENT, LLC
                 KING COAL SHIPCO LLC
                 FEARLESS SHIPCO LLC
                 COAL AGE SHIPCO LLC
                 IRON MAN SHIPCO LLC
                 LINDA LEAH SHIPCO LLC
                 BARBARA SHIPCO LLC
                 COAL GLORY SHIPCO LLC
                 COAL PRIDE SHIPCO LLC
                 as Guarantors

                 Arranged by

                 CITIGROUP GLOBAL MARKETS LIMITED
                 THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND
                 as Mandated Lead Arrangers

                 with

                 CITIBANK, N.A.
                 THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND
                 CREDIT SUISSE
                 HSH NORDBANK AG, LUXEMBOURG BRANCH
                 ABN AMRO
                 as Lenders

                 with

                 CITIBANK INTERNATIONAL PLC
                 as Facility Agent

                 and

                 CITICORP TRUSTEE COMPANY LIMITED
                 as Security Trustee
                 22nd June, 2005

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                                 PAGE
<S>                                                                                    <C>
1.   Interpretation.............................................................         2
2.   Amendments.................................................................         3
3.   Representations............................................................         4
4.   Consents...................................................................         5
5.   Miscellaneous..............................................................         6
6.   Governing law..............................................................         6

SCHEDULE

1.   The Owners.................................................................         7
2.   Conditions Precedent.......................................................         8
3.   The Lenders and their Commitments..........................................         9
4.   Revised Repayment Schedule.................................................        10

Signatories.....................................................................        13
</TABLE>

<PAGE>

THIS AGREEMENT is dated 22nd June, 2005

BETWEEN:

(1)   QUINTANA MARITIME LIMITED, a corporation incorporated according to the
      laws of the Republic of the Marshall Islands with its registered office at
      Ajeltake Island, Ajeltake Road, Majuro, Republic of the Marshall Islands,
      MH 96960 (the BORROWER);

(2)   THE COMPANIES listed in Schedule 1, each of which is a limited liability
      company formed according to the law of the country indicated against its
      name in Schedule 1, with its registered office at Ajeltake Island,
      Ajeltake Road, Majuro, Republic of the Marshall Islands, MH 96960 (each an
      OWNER and together the OWNERS);

(3)   QUINTANA MARITIME INVESTORS LLC, a limited liability company formed
      according to the laws of the Republic of the Marshall Islands with its
      registered office at Ajeltake Island, Ajeltake Road, Majuro, Republic of
      the Marshall Islands, MH 96960 (QUINTANA);

(4)   QUINTANA MANAGEMENT, LLC, a limited liability company formed according to
      the laws of the Republic of the Marshall Islands with its registered
      office at Ajeltake Island, Ajeltake Road, Majuro, Republic of the Marshall
      Islands, MH 96960 (QUINTANA MANAGEMENT and, together with the Owners and
      Quintana, the GUARANTORS);

(5)   CITIGROUP GLOBAL MARKETS LIMITED and THE GOVERNOR AND COMPANY OF THE BANK
      OF SCOTLAND as joint mandated lead arrangers (together the ARRANGERS);

(6)   CITIBANK, N.A. as original Tranche A lender (the ORIGINAL TRANCHE A
      Lender) and THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as original
      Tranche B lender (the TRANCHE B LENDER and, together with the Original
      Tranche A Lender, the ORIGINAL LENDERS);

(7)   CREDIT SUISSE, HSH NORDBANK AG, LUXEMBOURG BRANCH and ABN AMRO as new
      lenders (the NEW LENDERS, and, together with the Original Lenders, the
      LENDERS);

(8)   CITIBANK INTERNATIONAL PLC as administrative agent (the FACILITY AGENT);
      and

(9)   CITICORP TRUSTEE COMPANY LIMITED as security trustee for (i) the Tranche A
      Lenders (as defined herein) in relation to the Tranche A Loans (as defined
      herein), and (ii) as security trustee for the Tranche B Lenders (as
      defined herein) and Swap Bank (as defined herein) in relation to the
      Tranche B Loans (as defined herein) and the Swap Agreements (as defined
      herein) (the SECURITY TRUSTEE).

WHEREAS

(A)   This Agreement is supplemental to and amends a credit agreement dated 29th
      April, 2005 between the Borrower, the Guarantors, Citibank N.A as original
      lender, Citigroup Global Markets Limited as mandated lead arranger, the
      Facility Agent and the Security Trustee (the ORIGINAL PARTIES) as amended
      by a first supplemental agreement dated 1st June, 2005 between the
      Original Parties, the Tranche B Lender and The Governor and Company of the
      Bank of Scotland as new joint mandated lead arranger (the CREDIT
      AGREEMENT), pursuant to which the Original Tranche A Lender made the
      Tranche A Loans available to the Borrower, and the Tranche B Lender made
      the Tranche B Loans available to the Borrower (as each such term is
      defined in the Credit Agreement).

(B)   Pursuant to transfer certificates dated on or around the date of this
      Agreement the Original Tranche A Lender transferred a proportion of its
      interest in the Tranche A Loans to the New Lenders. It is a

                                       1

<PAGE>

      condition to such transfer certificate coming into effect that each of the
      parties hereto execute this Agreement, which will amend and restate the
      Credit Agreement.

IT IS AGREED as follows:

1.    INTERPRETATION

1.1   DEFINITIONS

(a)   In this Agreement:

      AMENDED CREDIT AGREEMENT has the meaning ascribed thereto in Clause 2.1.

      ARRANGERS has the meaning ascribed thereto in the Preamble.

      BORROWER has the meaning ascribed thereto in the Preamble.

      CREDIT AGREEMENT has the meaning ascribed thereto in the Preamble.

      EFFECTIVE DATE means the date on which all documents set out in Schedule 2
      (Conditions Precedent Documents) have been received by the Facility Agent
      and which shall not in any event be later than 15th July, 2005 unless
      otherwise agreed in writing by the Borrower and the Facility Agent.

      FACILITY AGENT has the meaning ascribed thereto in the Preamble.

      GROUP shall have the meaning ascribed thereto in the Credit Agreement.

      GUARANTORS has the meaning ascribed thereto in the Preamble.

      LENDERS has the meaning ascribed thereto in the Preamble.

      NEW LENDERS has the meaning ascribed thereto in the Preamble.

      ORIGINAL LENDER has the meaning ascribed thereto in the Preamble.

      ORIGINAL TRANCHE A LENDER has the meaning ascribed thereto in the
      Preamble.

      ORIGINAL PARTIES has the meaning ascribed thereto in the Preamble

      OWNERS has the meaning ascribed thereto in the Preamble.

      QUINTANA has the meaning ascribed thereto in the Preamble.

      QUINTANA MANAGEMENT has the meaning ascribed thereto in the Preamble.

      SECURITY TRUSTEE has the meaning ascribed thereto in the Preamble.

      SUBORDINATION DEED shall have the meaning ascribed thereto in the Credit
      Agreement.

      SWAP AGREEMENTS shall have the meaning ascribed thereto in the Credit
      Agreement.

      TRANCHE B LENDER has the meaning ascribed thereto in the Preamble.

(b)   Capitalised terms defined in the Credit Agreement have, unless expressly
      defined in this Agreement, the same meaning in this Agreement.

                                       2

<PAGE>

1.2   CONSTRUCTION

      The principles of construction set out in Clause 1.2 of the Credit
      Agreement will have effect as if set out in this Agreement.

2.    AMENDMENTS

2.1   DECLARATION OF EFFECTIVE DATE

      (a)   Subject as set out below, the Credit Agreement will be amended from
            the Effective Date in accordance with Clause 2.2 (the AMENDED CREDIT
            AGREEMENT).

      (b)   The Credit Agreement will not be amended by this Agreement unless
            the Facility Agent notifies the Borrower and the Finance Parties
            that it has received all of the documents set out in Schedule 2
            (Conditions Precedent Documents) in form and substance satisfactory
            to the Facility Agent on or prior to the Effective Date. The
            Facility Agent must give this notification as soon as reasonably
            practicable.

      (c)   If the Facility Agent fails to give the notification under Clause
            2.1 (b) by the Effective Date, the Credit Agreement will not be
            amended in the manner contemplated by this Agreement.

2.2   AMENDMENTS TO CREDIT AGREEMENT

      From the Effective Date the Credit Agreement will be amended as follows:

      (a)   Clause 7.2 of the Credit Agreement shall be deleted in its entirety
            and replaced with the following:

            "7.2  PAYMENT OF INTEREST

            (a)   Except where it is provided to the contrary in this Agreement
                  and subject to Clause 7.2(b) below, the Borrower must pay
                  accrued interest on each Loan on the last Business Day of each
                  Term.

            (b)   Notwithstanding Clause 7.2(a) above, where a Term is of more
                  than three (3) months, the Borrower must pay accrued interest
                  on each Loan on the last Business Day of each three (3) month
                  period during that Term."

      (b)   Clause 12.2 of the Credit Agreement shall be amended by the
            insertion of the words "or trading on spot" at the end of the last
            sentence of that Clause following the words "whilst the relevant
            Vessel is under charter."

      (c)   Clause 16.1(a)(i) of the Credit Agreement shall be deleted and
            replaced with the following:

            "(i)  its audited, consolidated, financial statements for the Group,
                  including Quintana, for each of its financial years ending
                  after the date hereof; and"

      (d)   Clause 18.8(e) of the Credit Agreement shall be deleted in its
            entirety and replaced with the following:

            "(e)  Following the Trigger Date the Borrower, Quintana and Quintana
                  Management (but not the Owners) shall be permitted to incur
                  Financial Indebtedness provided that:

            (i)   no Event of Default has occurred and is continuing; and

                                       3

<PAGE>

            (ii)  incurring such Financial Indebtedness would not cause the
                  Group to be in breach of any of the covenants set out in
                  Clause 17."

      (e)   Clause 18.31 of the Credit Agreement shall be amended by the
            insertion of a new clause 18.31(d) as follows:

            "(d)  In the event that the Borrower exercises its option pursuant
                  to Clause 5(a) to defer payment of the first and second
                  Tranche A Repayment Instalments then, notwithstanding any
                  provisions to the contrary in this Agreement, the Borrower
                  shall not be permitted to pay dividends or make any other
                  distribution (whether by loan or otherwise) to its
                  shareholders until the Charter Shortfall Payment has been
                  received in full and applied by the Facility Agent pursuant to
                  Clause 6.3(d) or such deferred payment shall otherwise be paid
                  in full."

      (f)   Clause 28.1 of the Credit Agreement shall be deleted in its entirety
            and replaced with the following:

            "28.  Each of the Obligors and the Finance Parties agrees and
                  acknowledges that in the event that the Tranche B Loans are
                  not syndicated within forty five (45) days of the drawdown of
                  Vessel Loan 1, the Facility Agent may (acting on the unanimous
                  instructions of the Lenders) give notice to the Borrower of
                  the Finance Parties intention to combine the Tranche A Loans
                  and Tranche B Loans into a single tranche (the COMBINATION
                  NOTICE)."

      (g)   Clause 29.2 of the Credit Agreement shall be amended by the
            insertion of a new Clause 29.2(a)(viii) as follows and the existing
            Clause 29.2(a)(viii) shall be renumbered accordingly:

            "(viii) the Repayment Schedule; or"

      (h)   Schedule 1, Part 2 of the Credit Agreement shall be deleted in its
            entirety and replaced with a new list of Original Lenders and their
            commitments in the form set out in Schedule 3 (Lenders and their
            Commitments) hereto.

      (i)   Schedule 6 of the Credit Agreement shall be deleted in its entirety
            and replaced with a new repayment schedule in the form set out in
            Schedule 4 (Revised Repayment Schedule) hereto.

2.3   CONSENT TO TRANSFER

      In accordance with Clause 30.2(c) of the Credit Agreement, the Borrower
      hereby consents to the transfer by the Original Tranche A Lender to the
      New Lenders of a proportion of the Original Tranche A Lender's rights and
      obligations with respect to the Tranche A Loans and the Commitment to make
      Tranche A Loans.

3.    REPRESENTATIONS

3.1   REPRESENTATIONS

      The representations set out in this Clause are made by each of the
      Borrower and the Guarantors on the date of this Agreement to each Finance
      Party.

                                       4

<PAGE>

3.2   POWERS AND AUTHORITY

      It has the power to enter into and perform, and has taken all necessary
      action to authorise the entry into and performance of this Agreement and
      the transactions contemplated by this Agreement.

3.3   LEGAL VALIDITY

      This Agreement constitutes its legally binding, valid and enforceable
      obligation and in entering into this Agreement, it is acting on its own
      account.

3.4   NON-CONFLICT

      The entry into and performance by it of, and the transactions contemplated
      by, this Agreement do not and will not conflict with:

      (a)   any law or regulation or judicial or official order applicable to it
            as at the date of this Agreement;

      (b)   the constitutional documents of any member of the Group; or

      (c)   any document which is binding on it or any member of the Group or
            any assets of any member of the Group.

3.5   AUTHORISATIONS

      All authorisations, consents, registrations, filings, notarisations and
      the like required by it or desirable in connection with the entry into,
      performance, validity and enforceability of, and the transactions
      contemplated by, this Agreement have been obtained or effected (as
      appropriate) and are in full force and effect.

3.6   CREDIT AGREEMENT

      The representations set out in clause 15 (Representations) of the Credit
      Agreement are true as if made on the date of this Agreement and on the
      Effective Date, in each case as if references to the Credit Agreement are
      references to the Amended Credit Agreement with reference to the facts and
      circumstances then existing.

4.    CONSENTS

      Each of the Borrower and the Guarantors:

      (a)   agrees to the amendment of the Credit Agreement as contemplated by
            this Agreement; and

      (b)   with effect from the Effective Date, confirms that any security or
            guarantee created or given by it under a Finance Document will:

            (i)   continue in full force and effect; and

            (ii)  extend to the liabilities and obligations of the Borrower and
                  the Guarantors to the Finance Parties under the Finance
                  Documents as amended by this Agreement.

                                       5

<PAGE>

5.    MISCELLANEOUS

5.1   Each of this Agreement and the Amended Credit Agreement is a Finance
      Document.

5.2   Subject to the terms of this Agreement, the Credit Agreement will remain
      in full force and effect and, from the Effective Date, the Credit
      Agreement and this Agreement will be read and construed as one document.

6.    GOVERNING LAW

6.1   This Agreement is governed by English law.

6.2   Clauses 34, 35, 36, 37, 38 and 39 of the Credit Agreement shall apply to
      this Agreement as if they were set out in full herein.

This Agreement has been entered into on the date stated at the beginning of this
Agreement.

                                       6

<PAGE>

                                   SCHEDULE 1

                                   THE OWNERS

<TABLE>
<CAPTION>
                                                     COUNTRY OF
    NAME OF OWNER                                    FORMATION
<S>                                      <C>
 Fearless Shipco LLC                     Republic of the Marshall Islands

King Coal Shipco LLC                     Republic of the Marshall Islands

Coal Glory Shipco LLC                    Republic of the Marshall Islands

 Coal Age Shipco LLC                     Republic of the Marshall Islands

 Iron Man Shipco LLC                     Republic of the Marshall Islands

Linda Leah Shipco LLC                    Republic of the Marshall Islands

 Barbara Shipco LLC                      Republic of the Marshall Islands

Coal Pride Shipco LLC                    Republic of the Marshall Islands
</TABLE>

                                       7

<PAGE>

                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

1.    A duly executed original of three (3) transfer certificates between the
      Original Tranche A Lender and each of the New Lenders, in substantially
      the same form as that set out in Schedule 5 to the Credit Agreement,
      pursuant to which the Original Tranche A Lender transfers and agrees to
      transfer a proportion of its interest in the Tranche A Loans to the New
      Lenders.

2.    A duly executed deed of accession executed by each of the New Lenders, in
      substantially the same form as that set out in Schedule 2 to the
      Subordination Deed, pursuant to which the New Lenders accede to and agrees
      to be bound by the terms of the Subordination Deed.

                                       8

<PAGE>

                                   SCHEDULE 3

                        THE LENDERS AND THEIR COMMITMENTS

<TABLE>
<CAPTION>
Name of Lender               Tranche A Commitments (US$)    Tranche B Commitments (US$)
---------------------------  ---------------------------    ---------------------------
<S>                          <C>                            <C>
        Citibank N.A.                $35,000,000                           -

The Governor and Company of
   the Bank of Scotland                        -                 $49,210,500

        Credit Suisse                $71,622,750                           -

HSH Nordbank AG, Luxembourg
          branch                     $71,622,750                           -

        ABN Amro                     $35,000,000                           -
</TABLE>

                                       9

<PAGE>

                                   SCHEDULE 4

                           REVISED REPAYMENT SCHEDULE

                                    TRANCHE A

<TABLE>
<CAPTION>
INSTALMENT NUMBER         DATE            AMOUNT (UNITED STATES DOLLARS)
-----------------  ------------------     ------------------------------
<S>                <C>                    <C>
         1          30 December, 2005               18,500,000

         2           30 March, 2006                  7,250,000

         3            30 June, 2006                 17,250,000

         4         30 September, 2006               11,750,000

         5          30 December, 2006               11,750,000

         6           30 March, 2007                  7,125,000

         7            30 June, 2007                  7,125,000

         8         30 September, 2007                7,125,000

         9          30 December, 2007                7,125,000

        10           30 March, 2008                  5,250,000

        11            30 June, 2008                  5,250,000

        12         30 September, 2008                5,250,000

        13          30 December, 2008                5,250,000

        14           30 March, 2009                  4,250,000

        15            30 June, 2009                  4,250,000

        16         30 September, 2009                4,250,000

        17          30 December, 2009                4,250,000

        18           30 March, 2010                  4,250,000

        19            30 June, 2010                  4,250,000
</TABLE>

                                       10

<PAGE>

<TABLE>
<S>                <C>                    <C>
20                 30 September, 2010      4,250,000

21                  30 December, 2010      4,250,000

22                   30 March, 2011        4,250,750

23                    30 June, 2011        4,250,750

24                 30 September, 2011     54,744,000
</TABLE>

                                    TRANCHE B

<TABLE>
<CAPTION>
INSTALMENT NUMBER                  DATE                        AMOUNT (UNITED STATES DOLLARS)
-----------------  -------------------------------------       ------------------------------
<S>                <C>                                         <C>
         1                  30 December, 2005                                   0

         2         12 months from the date of the Credit
                                Agreement                              25,000,000

         3                    30 June, 2006                                     0

         4                 30 September, 2006                                   0

         5                  30 December, 2006                                   0

         6                   30, March, 2007                              333,375

         7                   30, June, 2007                               333,375

         8                 30, September, 2007                            333,375

         9                 30, December, 2007                             333,375

        10                   30, March, 2008                              333,375

        11                   30, June, 2008                               333,375

        12                 30, September, 2008                            333,375

        13                 30, December, 2008                             333,375

        14                   30, March, 2009                              333,375

        15                   30, June, 2009                               333,375

        16                 30, September, 2009                            333,375
</TABLE>

                                       11

<PAGE>

<TABLE>
<S>                <C>                           <C>
17                 30, December, 2009               333,375

18                   30, March, 2009                333,375

19                   30, June, 2009                 333,375

20                 30, September, 2009              333,375

21                 30, December, 2009               333,375

22                   30, March, 2010                333,375

23                   30, June, 2010                 333,375

24                 30 September, 2011            18,209,750
</TABLE>

                                       12

<PAGE>

                                   SIGNATORIES

THE BORROWER

QUINTANA MARITIME LIMITED

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

THE GUARANTORS

QUINTANA MARITIME INVESTORS LLC

By:  __________________________________

Name: Paul J. Cornell

Title: Manager

QUINTANA MANAGEMENT LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

KING COAL SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

                                       13

<PAGE>

FEARLESS SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

COAL AGE SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

IRON MAN SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

LINDA LEAH SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

                                       14

<PAGE>

BARBARA SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

COAL GLORY SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

COAL PRIDE SHIPCO LLC

By: QUINTANA MARITIME LIMITED,  its Sole Member

By: ___________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

THE ARRANGERS

CITIGROUP GLOBAL MARKETS LIMITED

By:                                                       Authorised signatory

THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

By:                                                       Authorised signatory

                                       15

<PAGE>

THE LENDERS

CITIBANK, N.A.

By:                                                       Authorised signatory

THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

By:                                                       Authorised signatory

CREDIT SUISSE

By:                                                       Attorney in fact

HSH NORDBANK AG, LUXEMBOURG BRANCH

By:                                                       Attorney in fact

ABN AMRO

By:                                                       Attorney in fact

THE FACILITY AGENT

CITIBANK INTERNATIONAL PLC                                Authorised signatory

By:

THE SECURITY TRUSTEE

CITICORP TRUSTEE COMPANY LIMITED

By:                                                       Authorised signatories

                                       16

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