----

| Clause |                                               | Page   |
|--------|----------------------------------------------------|--------|
|   |                                               |   |
|   |                                               |   |
| 1      | INTERPRETATION                                     | 1      |
| 2      | GUARANTEE                                          | 1      |
| 3      | LIABILITY AS PRINCIPAL AND INDEPENDENT      DEBTOR | 2      |
| 4      | EXPENSES                                           | 2      |
| 5      | ADJUSTMENT OF    TRANSACTIONS                      | 2      |
| 6      | PAYMENTS                                           | 3      |
| 7      | INTEREST                                           | 3      |
| 8      | SUBORDINATION                                      | 3      |
| 9      | ENFORCEMENT                                        | 4      |
| 10     | REPRESENTATIONS AND      WARRANTIES                | 4      |
| 11     | UNDERTAKINGS                                       | 5      |
| 12     | JUDGMENTS AND CURRENCY      INDEMNITY              | 7      |
| 13     | SET-OFF                                            | 7      |
| 14     | SUPPLEMENTAL                                       | 7      |
| 15     | ASSIGNMENT                                         | 8      |
| 16     | NOTICES                                            | 8      |
| 17     | INVALIDITY OF GUARANTEE FACILITY      AGREEMENT    | 9      |
| 18     | GOVERNING LAW AND      JURISDICTION                | 9      |
|   | execution page                                     | 11     |

----

| (1)   | TBS INTERNATIONAL PUBLIC      LIMITED COMPANY, a company incorporated in Ireland with      registration number 476578 whose registered office is at Arthur Cox      Building, Earlsfort Centre, Earlsfort Terrace, Dublin 2, Ireland (the      “Guarantor”);      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | THE ROYAL BANK OF SCOTLAND      plc, a company incorporated in Scotland, acting through its office      at Shipping Business Centre, 5-10 Great Tower Street, London EC3P 3HX (the      “Issuer”, which      expression includes its successors andassigns). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | By      a guarantee facility agreement dated 29 March 2007 as amended by a      supplemental agreement dated 27 March 2009 and as further amended by a      side letter dated 31 December 2009 and made between (i) Argyle Maritime      Corp., Caton Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime      Corp., McHenry Maritime Corp. and Sunswyck Maritime Corp. as joint and      several Obligors and (ii) the Issuer it was agreed that the Issuer would      make available to the Obligors a guarantee facility of up to      US$84,000,000. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | By      a supplemental agreement dated 7 January 2010 made between the      same parties to the Guarantee Facility Agreement and the Corporate      Guarantor, the Guarantee Facility Agreement was further amended (the      “Supplemental      Agreement”). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | The      execution and delivery to the Issuer of this Guarantee is one of the      conditions precedent to the continuing availability of the guarantee      facility under the said Guarantee Facility  Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | INTERPRETATION |
|---------------|----------------|

| 1.1   | Defined      expressions.  Words and expressions defined in the      Guarantee Facility Agreement shall have the same meanings when used in      this Guarantee unless the context otherwise  requires. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2   | Construction of certain      terms.  In thisGuarantee: |
|-----------------|------------------------------------------------------------------|

| 1.3   | Application of construction and      interpretation provisions of Guarantee Facility Agreement. Clause      1.2 and 1.5 of the Guarantee Facility Agreement apply, with any necessary      modifications, to this Guarantee. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | GUARANTEE |
|---------------|-----------|

| 2.1   | Guarantee and      indemnity.  The Guarantor unconditionally and      irrevocably: |
|-----------------|----------------------------------------------------------------------------------------------|

| (a)   | guarantees      the due payment of all amounts payable by the Obligors under or in      connection with the Guarantee Facility Agreement and every other Finance      Document; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | undertakes      to pay to the Issuer, on the Issuer's demand, any such amount which is not      paid by the Obligors when due and payable;and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | fully      indemnifies the Issuer on its demand in respect of all claims, expenses,      liabilities and losses which are made or brought against or incurred by      the Issuer as a result of or in connection with any obligation or      liability guaranteed by the Guarantor being or becoming unenforceable,      invalid, void or illegal; and the amount recoverable under this indemnity      shall be equal to the amount which the Issuer would otherwise have been      entitled to recover. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2   | No limit on number of      demands.  The Issuer may serve more than one demand under      Clause 2.1. |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| 3   | LIABILITY      AS PRINCIPAL AND INDEPENDENT DEBTOR |
|---------------|----------------------------------------------------|

| 3.1   | Principal and independent      debtor.  The Guarantor shall be liable under this      Guarantee as a principal and independent debtor and accordingly it shall      not have, as regards this Guarantee, any of the rights or defences of a      surety. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | Waiver of rights and      defences.  Without limiting the generality of Clause 3.1,      the Guarantor shall neither be discharged by, nor have any claim against      the Issuer in respect of: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      amendment or supplement being made to the Finance    Documents; |
|-----------------|--------------------------------------------------------------------------|

| (b)   | any      arrangement or concession (including a rescheduling or acceptance of      partial payments) relating to, or affecting, the Finance      Documents; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      release or loss (even though negligent) of any right or Security Interest      created by the Finance Documents; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (d)   | any      failure (even though negligent) promptly or properly to exercise or      enforce any such right or Security Interest, including a failure to      realise for its full market value an asset covered by such a Security      Interest; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | any      other Finance Document or any Security Interest now being or later      becoming void, unenforceable, illegal or invalid or otherwise defective      for any reason, including a neglect to register  it. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | EXPENSES |
|---------------|----------|

| 4.1   | Costs of preservation of      rights, enforcement etc.  The Guarantor shall pay to the      Issuer on its demand the amount of all expenses incurred by the Issuer in      connection with any matter arising out of this Guarantee, including any      advice, claim or proceedings relating to this  Guarantee. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2   | Fees and expenses payable under      Guarantee Facility Agreement.  Clause 4.1 is without      prejudice to the Guarantor's liabilities in respect of the Obligors’      obligations under clause 14 of the Guarantee Facility Agreement (fees and      expenses) and under similar provisions of other Finance      Documents. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | ADJUSTMENT      OF TRANSACTIONS |
|---------------|---------------------------------|

| 5.1   | Reinstatement of obligation to      pay.  The Guarantor shall pay to the Issuer on its demand      any amount which the Issuer is required, or agrees, to pay pursuant to any      claim by, or settlement with, a trustee in bankruptcy of an Obligor or of      another Security Party (or similar person) on the ground that the      Guarantee Facility Agreement, or a payment by an Obligor or of another      Security Party, was invalid or on any similar  ground. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | PAYMENTS |
|---------------|----------|

| 6.1   | Method of      payments.  Any amount due under this Guarantee shall be      paid: |
|-----------------|---------------------------------------------------------------------------------------------|

| (a)   | in      immediately available funds; |
|-----------------|--------------------------------------|

| (b)   | to      such account as the Issuer may from time to time notify to the      Guarantor; |
|-----------------|----------------------------------------------------------------------------------------|

| (c)   | without      any form of set-off, cross-claim or condition;  and |
|-----------------|------------------------------------------------------------------|

| (d)   | free      and clear of any tax deduction except a tax deduction which the Guarantor      is required by law to make. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| 6.2   | Grossing-up for      taxes.  If the Guarantor is required by law to make a tax      deduction, the amount due to the Issuer shall be increased by the amount      necessary to ensure that the Issuer receives and retains a net amount      which, after the tax deduction, is equal to the full amount that it would      otherwise have received. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3   | Tax      Credits.  The provisions of Clause 16.4 of the Guarantee      Facility Agreement shall apply to this Guarantee and in relation to any      increased payments made by the Guarantor under Clause 6.2 as if the same      were set out in full herein with the necessary  changes. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | INTEREST |
|---------------|----------|

| 7.1   | Accrual of      interest.  Any amount due under this Guarantee shall      carry interest after the second Business Day following the date on which      the Issuer demands payment of it until it is actually paid, unless      interest on that same amount also accrues under the Guarantee Facility      Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Calculation of      interest.  Interest under this Guarantee shall be      calculated and accrue in the same way as interest under clause 6 of the      Guarantee Facility Agreement. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | Guarantee extends to interest      payable under Guarantee Facility Agreement.  For the      avoidance of doubt, it is confirmed that this Guarantee covers all      interest payable under the Guarantee Facility Agreement, including that      payable under clause 6 of the Guarantee Facility  Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8   | SUBORDINATION |
|---------------|---------------|

| 8.1   | Subordination of rights of      Guarantor.  All rights which the Guarantor at any time      has (whether in respect of this Guarantee or any other transaction)      against an Obligor, any other Security Party or their respective assets      shall be fully subordinated to the rights of the Issuer under the Finance      Documents;  and in particular, the Guarantor shall      not: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | claim,      or in a bankruptcy of any Obligor or any other Security Party prove for,      any amount payable to the Guarantor by an Obligor or any other Security      Party, whether in respect of this Guarantee or any other      transaction; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | take      or enforce any Security Interest for any such  amount; |
|-----------------|------------------------------------------------------------------|

| (c)   | claim      to set-off any such amount against any amount payable by the Guarantor to      an Obligor or any other Security Party;or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | claim      any subrogation or other right in respect of any Finance Document or any      sum received or recovered by the Issuer under a Finance      Document. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9   | ENFORCEMENT |
|---------------|-------------|

| 9.1   | No requirement to commence      proceedings against Obligors.  The Issuer will not need      to commence any proceedings under, or enforce any Security Interest      created by, the Guarantee Facility Agreement or any other Finance Document      before claiming or commencing proceedings under this      Guarantee. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2   | Conclusive evidence of certain      matters.  However, as against the    Guarantor: |
|-----------------|-----------------------------------------------------------------------------------------------|

| (a)   | any      judgment or order of a court in England or the Marshall Islands in      connection with the Guarantee Facility Agreement;  and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      statement or admission of an Obligor in connection with the Guarantee      Facility Agreement, |
|-----------------|---------------------------------------------------------------------------------------------------------|

| 9.3   | Suspense      account.  The Issuer may, for the purpose of claiming or      proving in a bankruptcy of an Obligor or any other Security Party, place      any sum received or recovered under or by virtue of this Guarantee on a      separate suspense or other interest bearing nominal account without      applying it in satisfaction of the Obligors’ obligations under the      Guarantee Facility Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | REPRESENTATIONS      AND WARRANTIES |
|----------------|-------------------------------------|

| 10.1   | General.  The      Guarantor represents and warrants to the Issuer as  follows. |
|------------------|-------------------------------------------------------------------------------------------|

| 10.2   | Status.  The      Guarantor is duly incorporated and validly existing under the laws of      Ireland. |
|------------------|-----------------------------------------------------------------------------------------------------------------|

| 10.3   | Corporate      power.  The Guarantor has the corporate capacity, and has      taken all corporate action and obtained all consents necessary for      it: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      execute this Guarantee; and |
|-----------------|-------------------------------------|

| (b)   | to      make all the payments contemplated by, and to comply with this      Guarantee. |
|-----------------|----------------------------------------------------------------------------------------|

| 10.4   | Consents in      force.  All the consents referred to in Clause 10.3      remain in force and nothing to the best of the Guarantor's knowledge and      belief has occurred which makes any of them liable to      revocation. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Legal      validity.  This Guarantee constitutes the Guarantor's      legal, valid and binding obligations enforceable against the Guarantor in      accordance with its terms subject to any relevant insolvency laws      affecting creditors' rights generally and subject to any qualifications as      to matters of law which are specifically referred to in any legal opinion      delivered to the Agent pursuant to the Supplemental    Agreement. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6   | No      conflicts.  The execution by the Guarantor of this      Guarantee and its compliance with this Guarantee to which it is a party      will not involve or lead to a contraventionof: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      law or regulation in force at the date of this Guarantee;    or |
|-----------------|--------------------------------------------------------------------------|

| (b)   | the      constitutional documents of the Guarantor;or |
|-----------------|-------------------------------------------------------|

| (c)   | any      contractual or other obligation or restriction which is binding on the      Guarantor or any of its assets. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| 10.7   | No withholding      taxes.  No tax is imposed in any jurisdiction in which      the Guarantor is ordinarily resident for tax by way of withholding or      deduction on any payment to be made under this  Guarantee. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8   | No      default.  To the knowledge of the Guarantor, no Event of      Default or Potential Event of Default has occurred and is      continuing. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9   | Information.  All      information which has been provided in writing by or on behalf of the      Guarantor to the Issuer in connection with any Finance Document was to the      best of the Guarantor's knowledge and belief true and not misleading as at      the time it was given; all audited and unaudited accounts which have been      so provided satisfied the requirements of Clause 11.4; and there has been      no material adverse change in the financial position or state of affairs      of the Guarantor from that disclosed in the latest of those      accounts. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10   | No      litigation.  No legal or administrative action involving      the Guarantor has been commenced or taken or, to the Guarantor's      knowledge, is likely to be commenced or taken which, in either case, would      be likely to have a material adverse effect on the Guarantor's financial      position or profitability. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | UNDERTAKINGS |
|----------------|--------------|

| 11.1   | General.  The      Guarantor undertakes with the Issuer to comply with the following      provisions of this Clause 11 at all times during the Security Period,      except as the Issuer may otherwisepermit. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2   | Information provided to be      accurate.  All financial and other information which is      provided in writing by or on behalf of the Guarantor under or in      connection with this Guarantee will, to the best of the Guarantor's      knowledge and belief, be true and not misleading and will not omit any      material fact or consideration which, if disclosed, would reasonably be      expected to adversely affect the decision of a person considering whether      to enter into the SupplementalAgreement. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3   | Provision of financial      statements.  The Guarantor will send to the      Issuer: |
|------------------|------------------------------------------------------------------------------------------------|

| (a)   | as      soon as possible, but in no event later than 120 days after the end of      each financial year of the Guarantor, the annual audited accounts of the      Guarantor and its consolidatedsubsidiaries; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | as      soon as possible, but in no event later than 30 days after the end of each      quarter in each financial year of the Guarantor the unaudited consolidated      accounts of the Guarantor and its consolidated subsidiaries which are      certified as to their correctness by its chief financial officer;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | together      with the accounts specified in paragraph (b) above, a compliance      certificate in the form set out in Schedule 4 of the Guarantee Facility      Agreement executed by the chief financial officer of the Guarantor      confirming the Financial Covenants set out in Schedule 3 of the Guarantee      Facility Agreement have been complied with during each financial      quarter. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4   | Form of financial      statements.  All accounts (audited and unaudited)      delivered under Clause 11.3 will: |
|------------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | be      prepared in accordance with all applicable laws and generally accepted      accounting principles of the U.S.A. consistently  applied; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | give      a true and fair view of the financial condition of the Guarantor and its      subsidiaries at the date of those accounts and of their profit for the      period to which those accounts relate;and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | fully      disclose or provide for all significant liabilities of the Guarantor and      its subsidiaries. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| 11.5   | Shareholder and creditor      notices.  The Guarantor will send the Issuer, at the same      time as they are despatched, copies of all communications which are      despatched to the Guarantor's shareholders or creditors or any class of      them. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6   | Consents.  The      Guarantor will maintain in force and promptly obtain or renew, and will      promptly send certified copies to the Issuer of, all consents      required: |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | for      the Guarantor to perform its obligations under this    Guarantee; |
|-----------------|----------------------------------------------------------------------------|

| (b)   | for      the validity or enforceability of this  Guarantee; |
|-----------------|-------------------------------------------------------------|

| 11.7   | Further      assurance.  The Guarantorwill: |
|------------------|-------------------------------------------------------|

| (a)   | at      its own cost, do all that it reasonably can to ensure that this Guarantee      validly creates the obligations which it purports to create;      and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | without      limiting the generality of paragraph (a) above, at its own cost, promptly      register, file, record or enrol this Guarantee with any applicable court      or authority, pay any applicable stamp, registration or similar tax in      respect of this Guarantee, give any notice or take any other step which      may be or become necessary or desirable for this Guarantee to be valid,      enforceable or admissible inevidence. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.8   | Notification of      litigation.  The Guarantor will provide the Issuer with      details of any legal or administrative action involving the Guarantor      promptly upon becoming aware of the same where such legal or      administrative action might, if adversely determined, have a material      adverse effect on the ability of the Guarantor to perform its obligations      under this Guarantee. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.9   | Notification of      default.  The Guarantor will notify the Issuer as soon as      the Guarantor becomes aware of: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the      occurrence of an Event of Default or a Potential Event of Default;      or |
|-----------------|-------------------------------------------------------------------------------------|

| (b)   | any      matter which indicates that an Event of Default or a Potential Event of      Default may have occurred and iscontinuing; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 11.10   | Maintenance of      status.  The Guarantor will maintain its separate      corporate existence under the laws ofIreland. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------|

| 11.11   | No disposal of assets, change      of business.  The Guarantor will  not: |
|-------------------|-------------------------------------------------------------------------------------|

| (a)   | transfer,      lease or otherwise dispose of all or a substantial part of its assets,      whether by one transaction or a number of transactions, whether related or      not except in the usual course of its trading operations;    or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | make      any substantial change to the nature of its business from that existing at      the date of this Guarantee. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| 11.12   | No merger      etc.  The Guarantor shall not, and shall procure that      none of its subsidiaries will, enter into any form of merger,      sub-division, amalgamation or other  reorganisation. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.13   | Chief Executive      Office.  The Guarantor will maintain is chief executive      office, and keep its corporate documents and records, at Arthur Cox      Building, Earlsfort Centre, Earlsfort Terrace, Dublin 2,      Ireland. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12   | JUDGMENTS      AND CURRENCY INDEMNITY |
|----------------|---------------------------------------|

| 12.1   | Judgments relating to Guarantee      Facility Agreement.  This Guarantee shall cover any      amount payable by the Obligors under or in connection with any judgment      relating to the Guarantee FacilityAgreement. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2   | Currency      indemnity.  In addition, clause 15.4 (currency indemnity)      of the Guarantee Facility Agreement shall apply, with any necessary      adaptations, in relation to thisGuarantee. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13   | SET-OFF |
|----------------|---------|

| 13.1   | Application of credit      balances.  The Issuer may without prior notice following      the occurrence of an Event of Default which is  continuing: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | apply      any balance (whether or not then due) which at any time stands to the      credit of any account in the name of the Guarantor at any office in any      country of the Issuer in or towards satisfaction of any sum then due from      the Guarantor to the Issuer under this Guarantee;  and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | for      that purpose: |
|-----------------|------------------------|

| (i)   | break,      or alter the maturity of, all or any part of a deposit of the      Guarantor; |
|-----------------|-------------------------------------------------------------------------------------------|

| (ii)   | convert      or translate all or any part of a deposit or other credit balance into      Dollars; |
|------------------|---------------------------------------------------------------------------------------------------|

| (iii)   | enter      into any other transaction or make any entry with regard to the credit      balance which the Issuer considersappropriate. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| 13.2   | Existing rights      unaffected.  The Issuer shall not be obliged to exercise      any of its rights under Clause 13.1; and those rights shall be without      prejudice and in addition to any right of set-off, combination of      accounts, charge, lien or other right or remedy to which the Issuer is      entitled (whether under the general law or any  document). |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14   | SUPPLEMENTAL |
|----------------|--------------|

| 14.1   | Continuing      guarantee.  This Guarantee shall remain in force as a      continuing security at all times during the Security    Period. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2   | Rights cumulative,      non-exclusive.  The Issuer's rights under and in      connection with this Guarantee are cumulative, may be exercised as often      as appears expedient and shall not be taken to exclude or limit any right      or remedy conferred by law. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3   | No impairment of rights under      Guarantee.  If the Issuer omits to exercise, delays in      exercising or invalidly exercises any of its rights under this Guarantee,      that shall not impair that or any other right of the Issuer under this      Guarantee. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4   | Severability of      provisions.  If any provision of this Guarantee is or      subsequently becomes void, illegal, unenforceable or otherwise invalid,      that shall not affect the validity, legality or enforceability of its      other provisions. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5   | Guarantee not affected by other      security.  This Guarantee shall not impair, nor be      impaired by, any other guarantee, any Security Interest or any right of      set-off or netting or to combine accounts which the Issuer may now or      later hold in connection with the Guarantee Facility      Agreement. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6   | Guarantor bound by Guarantee      Facility Agreement.  The Guarantor agrees with the Issuer      to be bound by all provisions of the Guarantee Facility Agreement which      are applicable to the Security Parties in the same way as if those      provisions had been set out (with any necessary modifications) in this      Guarantee. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.7   | Applicability of provisions of      Guarantee to other rights.  Clauses 3 and 17 shall also      apply to any right of set-off or netting or to combine accounts which the      Guarantor creates by an agreement entered into at the time of this      Guarantee or at any later time (notwithstanding that the agreement does      not include provisions similar to Clauses 3 and 17), being an agreement      referring to this Guarantee. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8   | Third party      rights.  A person who is not a party to this Guarantee      has no right under the Contracts (Rights of Third Parties) Act 1999 to      enforce or to enjoy the benefit of any term of this    Guarantee. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15   | ASSIGNMENT |
|----------------|------------|

| 15.1   | Assignment by      Issuer.  The Issuer may assign its rights under and in      connection with this Guarantee to the same extent as it may assign its      rights under the Guarantee FacilityAgreement. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16   | NOTICES |
|----------------|---------|

| 16.1   | Notices to      Guarantor.  Any notice or demand to the Guarantor under      or in connection with this Guarantee shall be given by letter or fax      at: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Fax      No:  + 353 1 618 0618 |
|--------|------------------------------------------|

| 16.2   | Application of certain      provisions of Guarantee Facility Agreement.  Clauses      22.3, 22.4 and 22.5 of the Guarantee Facility Agreement apply to any      notice or demand under or in connection with this    Guarantee. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3   | Validity of      demands.  A demand under this Guarantee shall be valid      notwithstanding that it is served: |
|------------------|---------------------------------------------------------------------------------------------------------------------------|

| (a)   | on      the date on which the amount to which it relates is payable by the      Obligors under the Guarantee FacilityAgreement; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| (b)   | at      the same time as the service of a notice under clause 13.2 (events of      default) of the Guarantee FacilityAgreement; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| 16.4   | Notices to      Issuer.  Any notice to the Issuer under or in connection      with this Guarantee shall be sent to the same address and in the same      manner as notices to the Issuer under the Guarantee Facility      Agreement. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17   | INVALIDITY      OF GUARANTEE FACILITY AGREEMENT |
|----------------|-------------------------------------------------|

| 17.1   | Invalidity of Guarantee      Facility Agreement.  In the event  of: |
|------------------|-------------------------------------------------------------------------------|

| (a)   | the      Guarantee Facility Agreement now being or later becoming, with immediate      or retrospective effect, void, illegal, unenforceable or otherwise invalid      for any other reason whatsoever, whether of a similar kind or not;      or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | without      limiting the scope of paragraph (a), a bankruptcy of an Obligor, the      introduction of any law or any other matter resulting in an Obligor being      discharged from liability under the Guarantee Facility Agreement, or the      Guarantee Facility Agreement ceasing to operate (for example, by interest      ceasing to accrue); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.2   | Invalidity of Finance      Documents.  Clause 17.1 also applies to each of the other      Finance Documents to which the Obligor are a  party. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18   | GOVERNING      LAW AND JURISDICTION |
|----------------|-------------------------------------|

| 18.1   | English      law.  This Guarantee and any non-contractual obligations      arising out of or in connection with it shall be governed by, and      construed in accordance with, Englishlaw. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2   | Exclusive English      jurisdiction.  Subject to Clause 18.3, the courts of      England shall have exclusive jurisdiction to settle any disputes which may      arise out of or in connection with this  Guarantee. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.3   | Choice of forum for the      exclusive benefit of the Issuer.  Clause 18.2 is for the      exclusive benefit of the Issuer, which reserves the  rights: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | to      commence proceedings in relation to any matter which arises out of or in      connection with this Guarantee in the courts of any country other than      England and which have or claim jurisdiction to that matter;      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | to      commence such proceedings in the courts of any such country or countries      concurrently with or in addition to proceedings in England or without      commencing proceedings in England. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4   | Process      agent.  The Guarantor irrevocably appoints Curtis Davis      Garrard LLP at its registered office for the time being, presently at      Waterview House, Roundwood Avenue, Stockley Park, Uxbridge UB11 1AU,      to act as its agent to receive and accept on its behalf any process or      other document relating to any proceedings in the English courts which are      connected with this Guarantee. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5   | Issuer' rights      unaffected.  Nothing in this Clause 18 shall exclude or      limit any right which the Issuer may have (whether under the law of any      country, an international convention or otherwise) with regard to the      bringing of proceedings, the service of process, the recognition or      enforcement of a judgment or any similar or related matter in any      jurisdiction. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.6   | Meaning of      “proceedings”.  In this Clause 18, “proceedings” means      proceedings of any kind, including an application for a provisional or      protective measure. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| GUARANTOR                                     |   |                           |
|-----------------------------------------------|--------|--------------------------------|
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| SIGNED and DELIVERED as a DEED                | )      |                           |
| by:      Christophil B. Costas                | )      | /s/      Christophil B. Costas |
| acting      as lawfully appointed attorney of | )      |                           |
| TBS      INTERNATIONAL PUBLIC                 | )      |                           |
| LIMITED      COMPANY                          | )      |                           |
| in      the presence of: Lorraine Brown       | )      | /s/      Lorraine Brown        |
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| SECURITY      TRUSTEE                         |   |                           |
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| SIGNED by      Graham Richard Locker     | )      | /s/      Graham Richard Locker |
| for      and on behalf of                     | )      |                           |
| THE      ROYAL BANK OF SCOTLAND plc           | )      |                           |
| in      the presence of: C.L. Patrick         | )      | /s/      C LPatrick            |