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| (1)   | ADIRONDACK      SHIPPING LLC, a Marshall Islands limited liability company, as owners (the      “Owners”); |
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| (2)   | FAIRFAX      SHIPPING CORP., a Marshall Islands corporation, as bareboat charterers      (the “Charterers”);      and |
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| (3)   | TBS      INTERNATIONAL LIMITED, a Bermuda company, as guarantor (the “Guarantor”). |
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| (a) | the      Fee shall be in the amount of $175,000;and |
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| (b)   | Clause      31 of the Charter shall be amended to provide for an increase in the      amount of Charter Hire payable by the Charterer in the event that (i) the      Margin stated (and as such term is defined in) in the Loan Agreement is      increased or (ii) any Lender under the Loan Agreement makes demand upon      the Borrowers for such Lender’s actual cost of funds, up to in each case a      maximum of $300.00 per day. |
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| 1   | DEFINITIONS |
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| 1.1   | Defined      terms.  Capitalized terms used but not defined herein      shall have the meaning assigned such terms in the Charter as amended by      the First Amendatory Agreement. |
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| 2   | FEE;      AMENDMENT OF CLAUSE 31(1) |
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| 2.1   | Fee.  In      respect of Clause 2.1 of the First Amendatory Agreement, the Fee payable      by the Charterer to the Owner shall be$175,000. |
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| 2.2   | Payment of      Fee.  The Charterer shall pay the Fee to the Owner upon      execution of this Agreement. |
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| 2.3   | Amendment.  Clause      31(1) of the Charter is amended to add, immediately following subparagraph      (c), a new paragraph reading asfollows: |
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| 2.4   | References.  Each      reference in the Charter to “this Charter”, “hereunder”, “hereof”,      “herein” or words of like import shall mean and refer to the Charter as      amended hereby and by the First Amendatory  Agreement. |
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| 2.5   | Effect of this      Agreement.  Subject to the terms of this Agreement, with      effect on and from the date hereof, the Charter shall be, and shall be      deemed by this Agreement to have been, amended upon the terms and      conditions stated herein and, as so amended, the Charter shall continue to      be binding on each of the parties to it in accordance with its terms as so      amended. |
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| 2.6   | No other amendments or      waivers.  Except as amended or waived hereby, all other      terms and conditions of the Charter, as amended by the First Amendatory      Agreement, remain unchanged and the Charter, as amended by the First      Amendatory Agreement, is hereby ratified and confirmed.  Without      limiting the foregoing, the Guarantor acknowledges and agrees that its      guarantee under Clause 53 of the Charter, as amended by the First      Amendatory Agreement, remains in full force and  effect. |
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| 3   | MISCELLANEOUS |
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| 3.1   | Governing      Law.  This Agreement and the rights and obligations of      the parties hereunder shall be governed by, and construed in accordance      with, Clause 26.2 of the Charter. |
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| 3.2   | Counterparts.  This      Agreement may be executed in any number of counterparts, all of which      taken together shall constitute one and the same    instrument. |
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| 3.3   | Severability.  Any      provision of this Agreement that is prohibited or unenforceable in any      jurisdiction shall, as to such jurisdiction, be ineffective to the extent      of such prohibition or unenforceability without invalidating or affecting      the validity or enforceability of such provision in any other      jurisdiction. |
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| 3.4   | Payment of      Expenses.  The parties hereto agree to pay or reimburse      each of the Credit Parties for all reasonable expenses in connection with      the preparation, execution and carrying out of this Agreement and any      other document in connection herewith or therewith, including but not      limited to, reasonable fees and expenses of any counsel whom the Credit      Parties may deem necessary or appropriate to retain, any duties,      registration fees and other charges and all other reasonable out-of-pocket      expenses incurred by any of the Credit Parties in connection with the      foregoing. |
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| ADIRONDACK      SHIPPING LLC, as Owners   By:      /s/ Asandro      Van      Aerde                                       Name:      Asandro Van Aerde Title:      Director   By:________________________________Name:      Adnan MohammedTitle:      Director  | FAIRFAX      SHIPPING CORP., as Charterers   By:      /s/      Christophil B.      Costas                            Christophil B.CostasAttorney-in-Fact  |
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| TBS      INTERNATIONAL LIMITED, as Guarantor   By:       /s/ Christophil B.      Costas                            Christophil B.CostasAttorney-in-Fact                                                                                                                                                                              |                                                                                                                                                                                                                                                                                         |