----

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

----

| (1)   | TBS INTERNATIONAL PUBLIC      LIMITED COMPANY, a company incorporated in Ireland with      registration number 476578 whose registered office 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 Level 5, 135 Bishopsgate, London EC2M 3UR (the “Security Trustee”, which      expression includes its successors andassigns). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | By      a loan agreement dated 29 March 2007 as amended and supplemented by a      supplemental letter agreement dated 26 March 2008, a supplemental      agreement dated 27 March 2009, a side letter dated 27 May 2009 and a side      letter dated 3 September 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      Borrowers, (ii) the Lenders, (iii) the Agent, (iv) the Security Trustee,      (v) the Mandated Lead Arranger, (vi) the Bookrunner and (vii) the Swap      Bank, it was agreed that the Lenders would make available to the Borrowers      a term loan facility of up toUS$150,000,000. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (C)   | By      a master agreement dated 29 March 2007 and made between (i) the Borrowers      and (ii) the Swap Bank, the Swap Bank has agreed to hedge the Borrowers’      exposure under the Loan Agreement to interest rate      fluctuations. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D)   | The      execution and delivery to the Security Trustee of this Guarantee is one of      the conditions to the continuing availability of the term loan facility      under the said Loan Agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | “bankruptcy”  includes      a liquidation, receivership or administration and any form of suspension      of payments, arrangement with creditors or reorganisation under any      corporate or insolvency law of anycountry; |
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|   | “Loan Agreement” means      the loan agreement referred to in Recital (A) as amended by the      Supplemental Agreement and includes any existing or future amendments or      supplements, whether made with the Guarantor's consent or      otherwise; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Master Agreement” means      the master agreement referred to in Recital (B) (including all      Transactions from time to time entered into and Confirmations from time to      time exchanged under such masteragreement). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3   | Application of construction and      interpretation provisions of Loan Agreement.  Clauses 1.2      and 1.5 of the Loan 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 Borrowers under or in      connection with the Loan Agreement and every other Finance Document      and any Designated Transaction under the Master  Agreement; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | undertakes      to pay to the Security Trustee, on the Security Trustee's demand, any such      amount which is not paid by the Borrowers or any of them when due and      payable; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | fully      indemnifies the Security Trustee on its demand in respect of all claims,      expenses, liabilities and losses which are made or brought against or      incurred by the Security Trustee 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 Security Trustee      would otherwise have been entitled torecover. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2   | No limit on number of      demands.  The Security Trustee 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      any Creditor Party 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      Security Trustee on its demand the amount of all expenses incurred by the      Security Trustee or any other Creditor Party 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      Loan Agreement.  Clause 4.1 is without prejudice to the      Guarantor's liabilities in respect of the Borrowers’ obligations under      clause 20 of the Loan Agreement (fees and expenses) and under similar      provisions of other FinanceDocuments. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 5.1   | Reinstatement of obligation to      pay.  The Guarantor shall pay to the Security Trustee on      its demand any amount which any Creditor Party is required, or agrees, to      pay pursuant to any claim by, or settlement with, a trustee in bankruptcy      of a Borrower or of another Security Party (or similar person) on the      ground that the Loan Agreement or the Master Agreement, or a payment by a      Borrower 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 Security Trustee 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 Security Trustee shall be increased by      the amount necessary to ensure that the Security Trustee and (if the      payment is not due to the Security Trustee for its own account) the      Creditor Party beneficially interested in the payment receives and retains      a net amount which, after the tax deduction, is equal to the full amount      that it would otherwise havereceived. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3   | Tax      Credit.  The provisions of Clause 22.4 of the Loan      Agreement shall apply to this Guarantee and in relation to any increased      payment made by the Guarantor under Clause 6.2 as if the same were set out      in full herein with the necessarychanges. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Security Trustee demands payment of it until it is actually paid,      unless interest on that same amount also accrues under the Loan Agreement      (or as the case may be) the MasterAgreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Calculation of      interest.  Interest under this Guarantee shall be      calculated and accrue in the same way as interest under clause 7 of the      Loan Agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | Guarantee extends to interest      payable under Loan Agreement and Master Agreement.  For      the avoidance of doubt, it is confirmed that this Guarantee covers all      interest payable under the Loan Agreement and the Master Agreement,      including that payable under clause 7 of the Loan Agreement and Section      2(e) of the Master 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 any Borrower, any other Security Party or their respective assets      shall be fully subordinated to the rights of the Creditor Parties under      the Finance Documents and in particular, the Guarantor shall      not: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | claim,      or in a bankruptcy of a Borrower or any other Security Party prove for,      any amount payable to the Guarantor by a Borrower 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      a Borrower 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 any Creditor Party under a Finance      Document. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 9.1   | No requirement to commence      proceedings against Borrowers.  Neither the Security      Trustee nor any other Creditor Party will need to commence any proceedings      under, or enforce any Security Interest created by, the Loan 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 Loan Agreement and/or the Master Agreement;      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      statement or admission of a Borrower in connection with the Loan Agreement      and/or the Master Agreement, |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

|   | shall      be binding and conclusive as to all matters of fact and law to which it      relates. |
|--------|--------------------------------------------------------------------------------------------------|

| 9.3   | Suspense      account.  The Security Trustee and any Creditor Party      may, for the purpose of claiming or proving in a bankruptcy of any      Borrower 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 Borrowers’ obligations under the Loan Agreement or, as the case may      be, the Master Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 10.1   | General.  The      Guarantor represents and warrants to the Security Trustee 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 qualification 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 will not involve or lead      to a contravention of: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | any      law or regulation in force at the date of the 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 or otherwise on any payment to be under this      Agreement. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Security Trustee or any other Creditor Party 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 thoseaccounts. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Security Trustee to comply with the      following provisions of this Clause 11 at all times during the Security      Period, except as the Agent may, with the authority of the Majority      Lenders, otherwise permit. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Security      Trustee: |
|------------------|----------------------------------------------------------------------------------------------------------|

| (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 9 of the Loan Agreement      executed by the chief financial officer of the Guarantor confirming the      Financial Covenants set out in Schedule 8 of the Loan Agreement have been      complied with during each financialquarter. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Security Trustee,      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 Security Trustee 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      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 in      the reasonable opinion of the Majority Lenders, is or has become necessary      or desirable for this Guarantee to be valid, enforceable or admissible in      evidence. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.8   | Notification of      litigation.  The Guarantor will provide the Security      Trustee 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 Security Trustee      as soon as the Guarantor becomes awareof: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (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 its 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 Loan      Agreement or Master Agreement.  This Guarantee shall      cover any amount payable by the Borrowers under or in connection with any      judgment relating to the Loan Agreement or the Master      Agreement. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2   | Currency      indemnity.  In addition, clause 21.4 (currency indemnity)      of the Loan Agreement shall apply, with any necessary adaptations, in      relation to this Guarantee. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| 13.1   | Application of credit      balances.  Each Creditor Party 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 that Creditor Party in or towards satisfaction of any sum then      due from the Guarantor to that Creditor Party 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 Creditor Party concerned considers      appropriate. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2   | Existing rights      unaffected.  No Creditor Party shall 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 a Creditor Party      is entitled (whether under the general law or any    document). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.3   | Sums deemed due to a      Lender.  For the purposes of this Clause 13, a sum      payable by the Guarantor to the Agent or the Security Trustee for      distribution to, or for the account of, a Lender shall be treated as a sum      due to that Lender; and each Lender's proportion of a sum so payable for      distribution to, or for the account of, the Lenders shall be treated as a      sum due to that Lender. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Security Trustee'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 Security Trustee 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 Security      Trustee 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 Security Trustee or      any other Creditor Party may now or later hold in connection with the Loan      Agreement or the Master Agreement. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.6   | Guarantor bound by Loan      Agreement.  The Guarantor agrees with the Security      Trustee to be bound by all provisions of the Loan 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 Security      Trustee.  The Security Trustee may assign its rights      under and in connection with this Guarantee to the same extent as it may      assign its rights under the LoanAgreement. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 Loan Agreement.  Clauses 28.3, 28.4 and      28.5 of the Loan 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      Borrowers under the Loan Agreement or, as the case may be, the Master      Agreement; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | at      the same time as the service of a notice under clause 19.2 (events of      default) of the Loan Agreement; |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

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

| 17   | INVALIDITY      OF LOAN AGREEMENT OR MASTERAGREEMENT |
|----------------|------------------------------------------------------|

| 17.1   | Invalidity of Loan      Agreement.  In the eventof: |
|------------------|---------------------------------------------------------------|

| (a)   | the      Loan 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 a Borrower, the      introduction of any law or any other matter resulting in a Borrower being      discharged from liability under the Loan Agreement, or the Loan 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 Borrowers 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. |
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| 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. |
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| 18.3   | Choice of forum for the      exclusive benefit of the Security Trustee.  Clause 18.2      is for the exclusive benefit of the Security Trustee, which reserves the      rights: |
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| (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 |
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| (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. |
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| 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. |
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| 18.5   | Creditor Parties' rights      unaffected.  Nothing in this Clause 18 shall exclude or      limit any right which any Creditor Party 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. |
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| 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                                     |   |                           |
|-----------------------------------------------|--------|--------------------------------|
|                                          |   |                           |
|                                          |   |                           |
| 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        |
|                                          |   |                           |
|                                          |   |                           |
|                                          |   |                           |
|                                          |   |                           |
|                                          |   |                           |
|                                          |   |                           |
| SECURITY      TRUSTEE                         |   |                           |
|                                          |   |                           |
|                                          |   |                           |
| SIGNED by Graham Andren      Stares           | )      | /s/      G A Stares            |
| for      and on behalf of                     | )      |                           |
| THE      ROYAL BANK OF SCOTLAND plc           | )      |                           |
| in      the presence of: C.L. Patrick         | )      | /s/      C LPatrick            |