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| (1)   | ADIRONDACK      SHIPPING LLC, a Marshall Islands limited liability company, as Owner (the      “Owner”); |
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| (2)   | FAIRFAX      SHIPPING CORP., a Marshall Islands corporation, as bareboat Charterer (the      “Charterer”);  and |
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| (3)   | TBS      INTERNATIONAL LIMITED, a Bermuda company, as guarantor (the “Guarantor”); |
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| (a)   | amend      certain provisions of the Charter;and |
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| (b)   | extend      the temporary waiver of compliance by the Guarantor with the requirements      of Clauses 35(3)(a) of the Charter during the Waiver    Period. |
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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.  In      addition: |
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| 2   | AMENDMENTS      TO THE CHARTER |
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| 2.1   | Amendments.  The      parties hereto agree to amend the Charter as follows with effect on and      from the date hereof: |
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| (a)   | Clause      31(1) is amended and restated to read as  follows: |
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| (b)   | Clause      35(3) is amended and restated to read as  follows: |
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|   | “(3) | For      the duration of the Charter Period, and until all Charter Party      Obligations have been fulfilled and satisfied, the Guarantor      covenants: |
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| (i)   | either      (x) the financial covenants set forth in Section 7.13 of the Amended and      Restated Credit Agreement dated as of March 26, 2008, as amended or      supplemented from time to time, among Albemarle Maritime Corp., Arden      Maritime Corp., Avon Maritime Corp., Birnam Maritime Corp., Bristol      Maritime Corp., Chester Shipping Corp., Cumberland Navigation Corp., Darby      Navigation Corp., Dover Maritime Corp., Elrod Shipping Corp., Exeter      Shipping Corp., Frankfort Maritime Corp., Glenwood Maritime Corp., Hansen      Shipping Corp., Hartley Navigation Corp., Henley Maritime Corp., Hudson      Maritime Corp., Jessup Maritime Corp., Montrose Maritime Corp., Oldcastle      Shipping Corp., Quentin Navigation Corp., Rector Shipping Corp., Remsen      Navigation Corp., Sheffield Maritime Corp., Sherman Maritime Corp.,      Sterling Shipping Corp., Stratford Shipping Corp., Vedado Maritime Corp.,      Vernon Maritime Corp., Windsor Maritime Corp. and other persons named      therein from time to time as Borrowers, (ii) the Guarantor as Holdings,      (iii) TBS Shipping Services Inc. as Administrative Borrower, (iv) each      lender from time to time party thereto as Lenders and (v) Bank of America,      N.A. as Administrative Agent, Swing Line Lender and L/C Issuer, upon the      terms and conditions of which a $267.5 million credit facility was made      available to the Borrowers named therein (the “Bank of America Credit Facility      Agreement”) or (y) such other financial covenants temporarily      permitted under the Bank of America Credit Facility Agreement in lieu of      the financial covenants set forth in Section 7.13 thereof pursuant to any      amendment or waiver executed in respect of the Bank of America Credit      Facility Agreement; and |
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| (ii)   | clauses      10.2(h)(ii) and 10.2(i)(i) of the Loan Agreement dated as of January 16,      2008, as amended by the First Amendatory Agreement thereto dated as of      March 23, 2009 and the Second Amendatory Agreement thereto dated as of      December 31, 2009, among (i) Bedford Maritime Corp., Brighton Maritime      Corp., Hari Maritime Corp., Prospect Navigation Corp., Hancock Navigation      Corp., Columbus Maritime Corp. and Whitehall Marine Transport Corp. as      Borrowers, (ii) the Guarantor as Guarantor, (iii) the banks and financial      institutions named therein as Lenders, (iv) DVB Group Merchant Bank (Asia)      Ltd. as Facility      Agent and Security Trustee, (v) The Governor and Company of the Bank of      Ireland (“BOI”) as      Payment Agent, (vi) DVB Bank SE, BOI and Natixis as Swap Banks and (vii)      Mount Washington LLC as Arranger;and |
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| (b)   | to      subordinate any and all claims of whatever nature which the Guarantor has      or may hereafter have against the Charterer to any and all claims of      whatever nature which the Owner has or may hereafter have against the      Charterer during the Charter Period and until all Charter Party      Obligations have been fulfilled.” |
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| 3   | TEMPORARY      WAIVER OF COMPLIANCE WITH CLAUSE35(3) |
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| 3.1   | Temporary      waiver.  The parties hereto agree to extend temporarily      the waiver of compliance by the Guarantor with the requirements of Clause      35(3) of the Charter, as amended above, during the Waiver Period (and for      the avoidance of doubt the Guarantor’s compliance with the requirements of      Clause 35(3) of the Charter, as amended above, shall be reinstated      immediately upon the expiration of the Waiver Period and shall be required      at all times thereafter). |
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| 3.2   | Covenants.  In      consideration of the temporary waiver made in Clause 3.1, during the      Waiver Period the Guarantor shallnot: |
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| (a)   | for      each calendar month ending on or after January 1, 2010, permit Qualified      Cash of the Loan Parties to be less than the greater of (i) $25,000,000 or      (ii) $40,000,000 minus      any prepayment of Indebtedness made during such calendar month as      permitted after giving effect to Amendment No. 2 to the Bank of America      Credit Facility Agreement, of which a minimum average balance of      $9,375,000 in any such calendar month shall be deposited with Bank of      America, N.A.; |
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| (b)   | permit      the Consolidated Interest Charges Coverage Ratio as of the four fiscal      quarters ending December 31, 2009 to be less than 1.75:1.00;      and |
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| (c)   | prepay,      redeem, purchase, defease or otherwise satisfy prior to the scheduled      maturity thereof, in any manner, or make any payment in violation of any      subordination terms of, any Indebtedness,  except: |
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|   | (i) | the      prepayment of the Credit Extensions in accordance with the terms of the      Bank of America Credit FacilityAgreement; |
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|   | (ii) | regularly      scheduled or required repayments, mandatory prepayments or redemptions of      Indebtedness described on Schedule 7.02 of the Bank of America Credit      Facility Agreement in respect of the RBS Credit Facility Agreement, the      Credit Suisse Credit Facility Agreement, the AIG Credit Facility      Agreement, the Commerzbank Credit Facility Agreement and the Berenberg      Credit Facility Agreement; and |
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|   | (iii) | other      prepayments of Indebtedness described on Schedule 7.02 the Bank of America      Credit Facility Agreement in respect of the RBS Credit Facility Agreement,      the Credit Suisse Credit Facility Agreement, the AIG Credit Facility      Agreement, the Commerzbank Credit Facility Agreement and the Berenberg      Credit Facility Agreement, |
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| 4   | MISCELLANEOUS |
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| 4.1   | 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. |
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| 4.2   | 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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| 4.3   | No other amendments or      waivers.  Except as amended or waived hereby, all other      terms and conditions of the Charter remain unchanged and the Charter 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 hereby, is hereby ratified and      confirmed. |
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| 4.4   | 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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| 4.5   | 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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| 4.6   | 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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| 4.7   | Payment of      Expenses.  The parties hereto agree to pay or reimburse      each of DVB Bank SE and DVB Bank America N.V. (collectively, 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 theforegoing. |
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| ADIRONDACK      SHIPPING LLC, as Owner By:      /s/ AFSpomebe  /s/ Asandro      Van AerdeName:      AF Spomebe        Asandro Van Aerde Title:      Secretary                                                                                                                  | FAIRFAX      SHIPPING CORP., as Charterer   By:      /s/ William J.      Carr                              Name:       William J. CarrTitle:       President / Director   |
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| TBS      INTERNATIONAL LIMITED, as Guarantor By:      /s/ William J.      Carr                              Name:       William J. CarrTitle:       President / Director   |                                                                                                                                                                                                                                                                                                                            |