Document:

ex_10-18.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.18

     

    

      

      Dated: as
of January 11, 2010

       

      BEDFORD
MARITIME CORP.

      BRIGHTON
MARITIME CORP.

      HARI
MARITIME CORP.

      PROSPECT
NAVIGATION CORP.

      HANCOCK
NAVIGATION CORP

      COLUMBUS
MARITIME CORP.

      and

      WHITEHALL
MARINE TRANSPORT CORP.

      as joint
and several Borrowers

       

      TBS
INTERNATIONAL LIMITED

      as
Original Guarantor

       

      TBS
HOLDINGS LIMITED

      and

      TBS
INTERNATIONAL PUBLIC LIMITED COMPANY

      as
Additional Guarantors

       

      DVB
GROUP MERCHANT BANK (ASIA) LTD.

      as
Lender

       

      DVB
GROUP MERCHANT BANK (ASIA) LTD.

      as
Facility Agent and Security Trustee

       

      -and-

       

      DVB
BANK SE

      THE
GOVERNOR AND COMPANY OF THE BANK OF IRELAND

      and

      NATIXIS

      as Swap
Banks

      

      _______________________________________________________

      

      THIRD
AMENDATORY AGREEMENT

      ______________________________________________________

      

      Amending
and Supplementing the Loan Agreement dated as of January 16, 2008,

      as
amended by a First Amendatory Agreement dated as of March 23, 2009
and

      a Second
Amendatory Agreement dated as of December 31, 2009

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      THIRD
AMENDATORY AGREEMENT dated as of January 11, 2010 (this “Third Amendatory
Agreement”)

      

      AMONG

      

      
        	
                (1)  

              	
                BEDFORD
      MARITIME CORP., BRIGHTON MARITIME CORP., HARI MARITIME CORP., PROSPECT
      NAVIGATION CORP., HANCOCK NAVIGATION CORP., COLUMBUS MARITIME CORP. and
      WHITEHALL MARINE TRANSPORT CORP., each a corporation organized and
      existing under the law of the Republic of The Marshall Islands, as joint
      and several borrowers (each, a “Borrower” and together,
      the “Borrowers”);

              

      

       

      
        	
                (2)  

              	
                TBS
      INTERNATIONAL LIMITED, a company organized and existing under the law of
      Bermuda, as guarantor (the “Original
      Guarantor”);

              

      

       

      
        	
                (3)  

              	
                TBS
      HOLDINGS LIMITED, a company organized and existing under the law of
      Bermuda (“TBSHL”),
      and TBS INTERNATIONAL PUBLIC LIMITED COMPANY, a company organized and
      existing under the law of Ireland (“TBSPLC”), as additional
      guarantors (collectively, the “Additional Guarantors”
      and together with the Original Guarantor, the “Guarantors”);

              

      

       

      
        	
                (4)  

              	
                DVB
      GROUP MERCHANT BANK (ASIA) LTD., acting through its office at 77 Robinson
      Road 30-02, Singapore, as lender (in such capacity, the “Lender”);

              

      

       

      
        	
                (5)  

              	
                DVB
      GROUP MERCHANT BANK (ASIA) LTD., acting through its office at 77 Robinson
      Road 30-02, Singapore, as facility agent (in such capacity, the “Facility Agent”) for the
      Lender and as security trustee (in such capacity, the “Security Trustee”) for
      the Lender and the Swap Banks; and

              

      

       

      
        	
                (6)  

              	
                DVB
      BANK SE (as successor-in-interest to DVB Bank AG), acting through its
      office at Platz der Republik 6, 60325 Frankfurt/Main, Germany, THE
      GOVERNOR AND COMPANY OF THE BANK OF IRELAND, acting through its office at
      Head Office, Building A3, Lower Baggot Street, Dublin 2, Ireland, and
      NATIXIS, acting through its office at BP 4 - F-75060, Paris Cedex 02,
      France, as swap banks (each, a “Swap Bank” and together,
      the “Swap
      Banks”).

              

      

       

      WITNESSETH
THAT:

      

      WHEREAS, the Borrowers, the
Original Guarantor, the Lender, the Facility Agent, the Security Trustee, the
Swap Banks and others are parties to a Loan Agreement dated as of January 16,
2008 (the “Original
Loan Agreement”), as
amended by a First Amendatory Agreement dated as of March 23, 2009 (the “First Amendatory Agreement”)
and a Second Amendatory Agreement dated as of December 31, 2009 (the “Second Amendatory Agreement”,
and the Original Loan Agreement, as amended by the First Amendatory Agreement
and the Second Amendatory Agreement, the “Loan Agreement”).

      

      WHEREAS, upon the terms and
conditions stated herein, the parties hereto have agreed pursuant to Clause
19.1(b) of the Loan Agreement to:

      

      

      
        	
                (a)  

              	
                add
      TBSPLC and TBSHL as joint and several Guarantors (together with the
      Original Guarantor) pursuant to the terms and conditions of Clause 21 of
      the Loan Agreement, as amended hereby,
and

              

      

      

      
        	
                (b)  

              	
                amend
      certain provisions of the Loan
Agreement.

              

      

      

      NOW, THEREFORE, in
consideration of the premises set forth above, the covenants and agreements
hereinafter set forth, and other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as
follows:

      

      
        	
                1  

              	
                DEFINITIONS

              

      

      

      
        	
                1.1  

              	
                Defined
      terms.  Capitalized terms used but not defined herein
      shall have the meaning assigned such terms in the Loan
      Agreement.

              

      

      

      
        	
                2  

              	
                JOINDER
      OF TBSPLC AND TBSHL AS JOINT AND SEVERAL
  GUARANTORS

              

      

       

      
        	
                2.1  

              	
                Joinder of Additional
      Guarantors.  In consideration of the Credit Parties’
      consent to a corporate reorganization pursuant to which, among other
      things:

              

      

       

      
        	
                (a)  

              	
                each
      of TBSHL and TBSPLC were incorporated in their respective jurisdictions of
      incorporation;

              

      

       

      
        	
                (b)  

              	
                the
      Original Guarantor transferred to TBSHL the shares held by the Original
      Guarantor in various subsidiaries, including but not limited to Westbrook,
      in exchange for the authorized shares in TBSHL and an interest-free
      promissory note, thus resulting in TBSHL becoming a wholly-owned
      subsidiary of the Original
Guarantor;

              

      

       

      
        	
                (c)  

              	
                the
      Original Guarantor became a tax resident in Ireland by moving “management
      and control” to Ireland;

              

      

       

      
        	
                (d)  

              	
                the
      outstanding shares in the Original Guarantor were cancelled and new shares
      in the Original Guarantor were issued to TBSPLC, thus resulting in the
      Original Guarantor becoming a wholly-owned subsidiary of TBSPLC;
      and

              

      

       

      
        	
                (e)  

              	
                TBSPLC
      issued a number of its own ordinary shares to the Original Guarantor’s
      shareholders so that each such shareholder would hold the same percentage
      equity interest in TBSPLC as such shareholder held in the Original
      Guarantor,

              

      

       

      each of
TBSPLC and TBSHL hereby agree to become a Guarantor and, together with the
Original Guarantor, jointly and severally, agree to guarantee the Guaranteed
Obligations pursuant to the terms and conditions of Clause 21 of the Loan
Agreement, as amended hereby.

       

      
        	
                2.2  

              	
                Acceptance of
      Guaranty.  The Facility Agent, for and on behalf of the
      Credit Parties, hereby acknowledges and accepts TBSPLC and TBSHL as joint
      and several Guarantors with the Original Guarantor pursuant to the terms
      and conditions of Clause 21 of the Loan Agreement, as amended
      hereby.

              

      

       

      
        	
                3  

              	
                AMENDMENTS
      TO THE LOAN AGREEMENT

              

      

       

      
        	
                3.1  

              	
                Amendments.  Pursuant
      to Clause 19.1(b) of the Loan Agreement, subject to fulfillment or waiver
      of the conditions subsequent stated in Clause 5 below, the parties hereto
      agree to amend the Loan Agreement as follows with effect on and from the
      date hereof:

              

      

      

      
        	
                (a)  

              	
                All
      references in the Loan Agreement to “the Guarantor” shall mean and refer
      to the Guarantors and in the singular shall mean any one of them as the
      context may require.

              

      

      

      
        	
                (b)  

              	
                The
      definition of “Compliance Certificate” in Clause 1.1 is amended and
      restated to read as follows:

              

      

      

      ““Compliance Certificate” means
the certificate executed by TBSPLC’s chief financial officer or equivalent
officer, in the form set out in Appendix A to the Loan Agreement;”

      

      
        	
                (c)  

              	
                The
      definition of “Guarantor Group” in Clause 1.1 is amended and restated to
      read as follows:

              

      

      

      ““Guarantor Group” means,
collectively, TBSPLC and any other entity that is owned or controlled directly
or indirectly by TBSPLC;”

      

      
        	
                (d)  

              	
                Clause
      9.16 is amended and restated to read as
follows:

              

      

      

      
        	
                 
      

              	
                “9.16.

              	
                Corporate
      structure.

              

      

      

      
        	
                (a)  

              	
                None
      of the Borrowers has any
subsidiaries.

              

      

       

      
        	
                (b)  

              	
                All
      of the outstanding equity of the Borrowers has been validly issued, is
      fully paid, non-assessable and free and clear of all liens and is owned
      beneficially and of record by
Westbrook.

              

      

       

      
        	
                (c)  

              	
                All
      of the outstanding equity of Westbrook has been validly issued, is fully
      paid, non-assessable and is owned beneficially and of record by
      TBSHL.

              

      

       

      
        	
                (d)  

              	
                All
      of the outstanding equity of TBSHL has been validly issued, is fully paid,
      non-assessable and is owned beneficially and of record by the Original
      Guarantor.

              

      

       

      
        	
                (e)  

              	
                All
      of the outstanding equity of the Original Guarantor has been validly
      issued, is fully paid, non-assessable and is owned beneficially and of
      record by TBSPLC.”

              

      

       

      
        	
                (e)  

              	
                Clause
      10.1(h) is amended and restated to read as
  follows:

              

      

      

      “(h)           TBSPLC
shall deliver to the Facility Agent:

       

      
        	
                 
      

              	
                (i)

              	
                its
      quarterly and annual financial statements and other reports of material
      events as soon as practicable but not later than 10 Business Days after
      TBSPLC files such financial statements on Forms 10-Q and 10-K and reports
      on Form 8-K with the United States Securities and Exchange Commission (but
      in no event later than: (1) 120 days after the end of its fiscal year with
      respect to its annual financial statements and (2) 90 days after the end
      of each fiscal quarter);

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                together
      with its annual financial statements, reports of and/or updates on all
      off-balance sheet financings and time charter hire commitments of any of
      the Guarantors;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                together
      with its quarterly and annual financial statements, a Compliance
      Certificate; and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                such
      other financial statements, annual budgets, projections and reports as may
      be reasonably requested by the Facility Agent, each to be in such form as
      the Facility Agent may reasonably
request;”

              

      

       

      
        	
                (f)  

              	
                Clause
      10.1(v) is amended and restated to read as
  follows:

              

      

      

      
        	
                 
      

              	
                “(v)

              	
                each
      Borrower shall cause all loans made to it by any Guarantor and all sums
      and other obligations (financial or otherwise) owed by it to the relevant
      Bareboat Charterer or the Approved Managers to be fully subordinated to
      all Secured Liabilities of such
Borrower;”

              

      

      

      
        	
                (g)  

              	
                Clause
      10.1(x) is amended and restated to read as
  follows:

              

      

      

      
        	
                 
      

              	
                “(x)

              	
                the
      Guarantor Group, on a consolidated basis, shall be in compliance with the
      Bank of America Credit Facility Financial Covenants (or such other
      financial covenants temporarily permitted under the Bank of America Credit
      Facility Agreement in lieu thereof pursuant to any amendment or waiver
      executed in respect of the Bank of America Credit Facility Agreement)
      regardless of whether the Bank of America Credit Facility Agreement is in
      effect or not (in which case the Bank of America Credit Facility Financial
      Covenants shall apply in their last form before termination of the Bank of
      America Credit Facility Agreement), and shall evidence such compliance by
      means of delivery of a quarterly compliance certificate to the Facility
      Agent; and”

              

      

      

      
        	
                (h)  

              	
                Clause
      10.2(g) is amended and restated to read as
  follows:

              

      

      

      
        	
                 
      

              	
                “(g)

              	
                none
      of the Borrowers will permit any act, event or circumstance that would
      result in Westbrook holding directly less than 100% of such Borrower’s
      equity and none of the Guarantors will permit any act, event or
      circumstance that would result in:

              

      

      

      
        	
                (i)  

              	
                TBSPLC
      holding directly less than 100% of the Original
  Guarantor;

              

      

       

      
        	
                (ii)  

              	
                the
      Original Guarantor holding directly less than 100% of TBSHL;
      and

              

      

       

      
        	
                (iii)  

              	
                TBSHL
      holding directly less than 100% of
Westbrook;”

              

      

       

      
        	
                (i)  

              	
                Clause
      10.2(i) is amended and restated to read as
  follows:

              

      

      

      
        	
                 
      

              	
                “(i)

              	
                from
      March 23, 2009 until 12:00 a.m. on April 1, 2010 (the “No Distribution or Redemption
      Period”) none of the Guarantors
may:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                declare
      or pay any dividends or return any capital to any equity holder or
      authorize or make any other distribution, payment or delivery of property
      or cash to any equity holder as such (collectively, a “Distribution”);

              

      

      

      
        	
                 
      

              	
                (2)

              	
                redeem,
      retire, purchase or otherwise acquire, directly or indirectly, for value,
      any share of any class of its capital stock or other form of equity
      interest (or require any rights, options or warrants relating thereto but
      not including convertible debt) now or hereafter outstanding
      (collectively, a “Redemption”);
      or

              

      

      

      (3)           set
aside any funds for any of the foregoing purposes,

      

      provided that so long as
TBSPLC first establishes to the reasonable satisfaction of the Facility Agent
that no Event of Default has occurred and is continuing or would occur from the
declaring or making of any such Distribution or Redemption:

      

      
        	
                 
      

              	
                (A)

              	
                TBSHL
      shall be permitted to set aside funds for, declare and make a Distribution
      to or a Redemption from the Original Guarantor during the No Distribution
      or Redemption Period; and

              

      

      

      
        	
                 
      

              	
                (B)

              	
                the
      Original Guarantor shall be permitted to set aside funds for, declare and
      make a Distribution to or a Redemption from TBSPLC during the No
      Distribution or Redemption Period;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                at
      any time other than during the No Distribution or Redemption Period none
      of the Guarantors may set aside funds for, declare and make a Distribution
      or Redemption unless TBSPLC first establishes to the reasonable
      satisfaction of the Facility Agent that no Event of Default has occurred
      and is continuing or would occur from the declaring or making of any such
      Distribution or Redemption; and

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                if
      an Event of Default shall have occurred and so long as such Event of
      Default shall be continuing, none of the Borrowers shall (1) declare or
      make any Distribution or Redemption, (2) repay any subordinated loans or
      (3) set aside any funds for any of the foregoing
  purposes;”

              

      

      

      
        	
                (j)  

              	
                Clause
      10.2(j) is amended and restated to read as
  follows:

              

      

      

      
        	
                 
      

              	
                “(j)

              	
                (i)

              	
                none
      of the Borrowers will increase its capital by way of the creation of
      preference securities, further common or ordinary securities or otherwise
      howsoever, or create any new class of
equity;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                none
      of the Borrowers will permit any act, event or circumstance that would
      result in Westbrook owning beneficially and of record less than 100% of
      the equity of each of the
Borrowers;

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                TBSHL
      shall not sell, transfer, assign or otherwise convey or dispose of any of
      the share capital of Westbrook;

              

      

      

      
        	
                 
      

              	
                (iv)

              	
                the
      Original Guarantor shall not sell, transfer, assign or otherwise convey or
      dispose of any of the share capital of TBSHL;
  and

              

      

      

      
        	
                 
      

              	
                (v)

              	
                TBSPLC
      shall not sell, transfer, assign or otherwise convey or dispose of any of
      the share capital of the Original
Guarantor;”

              

      

      

      
        	
                (k)  

              	
                Clause
      13.1(g) is amended and restated to read as
  follows:

              

      

      

      
        	
                 
      

              	
                “(g)

              	
                the
      occurrence of any act, event or circumstance which results
    in:

              

      

       

      
        	
                (i)  

              	
                TBSPLC
      owning, beneficially and of record, directly or indirectly, less than 100%
      of the issued and outstanding equity of the Original
      Guarantor;

              

      

       

      
        	
                (ii)  

              	
                the
      Original Guarantor owning, beneficially and of record, directly or
      indirectly, less than 100% of the issued and outstanding equity of
      TBSHL;

              

      

       

      
        	
                (iii)  

              	
                TBSHL
      owning, beneficially and of record, directly or indirectly, less than 100%
      of the issued and outstanding equity of Westbrook;
  or

              

      

       

      
        	
                (iv)  

              	
                Westbrook
      owning, beneficially and of record, directly or indirectly, less than 100%
      of the issued and outstanding equity of a Borrower;
  or”

              

      

       

      
        	
                (l)  

              	
                Clause
      20.2(d) is amended and restated to read as
  follows:

              

      

      

      “(d)           to
the Payment
Agent:                                                      The
Governor and Company of the Bank of Ireland

      Head
Office

      Building
B4

      Lower
Baggot Street

      Dublin 2,
Ireland

      Attention:
Kimberly Jones

      Facsimile:
+353 1 611 5411”

      

      
        	
                (m)  

              	
                Clause
      21 is amended and restated to read as
follows:

              

      

      

      “21           GUARANTY

       

      
        	
                 
      

              	
                21.1

              	
                Guaranty.  The
      Guarantors hereby guarantee (this “Guaranty”), on a joint
      and several basis, as primary obligors and not merely as sureties, the
      performance and punctual payment when due, whether at stated maturity, by
      acceleration or otherwise, of all Secured Liabilities of the Borrowers now
      or hereafter existing under this Agreement and any other Finance Document,
      whether for principal, interest, fees, expenses or otherwise
      (collectively, the “Guaranteed
      Obligations”) due or owing to any of the Lenders or the Swap Banks
      (each, a “Guaranteed
      Party”), and agree to pay any and all expenses (including, without
      limitation, counsel fees and expenses) incurred by a Guaranteed Party, the
      Security Trustee, the Facility Agent or the Payment Agent in enforcing any
      rights under this Guaranty.  The obligations of the Guarantors
      under this Guaranty are in addition to and shall not in any way be
      prejudiced by any other guaranty or security now or subsequently held by
      the Guaranteed Parties.  The Guarantors hereby further agree
      that if the Borrowers shall fail to pay in full when due (whether at
      stated maturity, by acceleration or otherwise) any of the Guaranteed
      Obligations, the Guarantors will promptly pay the same, on first demand,
      and that in the case of any extension of time of payment or renewal of any
      of the Guaranteed Obligations, the same will be promptly paid in full when
      due (whether at extended maturity, by acceleration or otherwise) in
      accordance with the terms of such extension or
  renewal.

              

      

       

      
        	
                 
      

              	
                21.2

              	
                Obligations
      absolute.  The Guarantors guarantee that the Guaranteed
      Obligations will be performed and paid to the Guaranteed Parties strictly
      in accordance with the terms of any applicable agreement, express or
      implied, of the Borrowers, regardless of any law, regulation or order of
      any jurisdiction affecting any term of any Guaranteed Obligation or the
      rights of the Guaranteed Parties with respect thereto, including, without
      limitation, any law, rule or policy which is now or hereafter promulgated
      by any governmental authority (including, without limitation, any central
      bank) or regulatory body any of which may adversely affect the Borrowers’
      ability or obligation to make, or right of the Guaranteed Parties to
      receive, such payments, including, without limitation, any sovereign act
      or circumstance which might otherwise constitute a defense to, or a legal
      or equitable discharge of, the
Borrowers.

              

      

       

      
        	
                 
      

              	
                21.3

              	
                Guaranty
      Unconditional.  The liability of the Guarantors hereunder
      shall be unconditional irrespective of, and the Guarantors hereby waive
      any defenses they may assert with respect
to:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                any
      lack of validity or enforceability of any Guaranteed Obligation or
      agreement or instrument relating
thereto;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                any
      change in the time, manner or place of payment of, or in any other term
      of, any Guaranteed Obligation;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                any
      exchange, release or non-perfection of any other Collateral securing
      payment of any Guaranteed
Obligation;

              

      

       

      
        	
                 
      

              	
                (d)

              	
                any
      moratorium, bankruptcy, insolvency or other similar law or any other law,
      regulation or order of any jurisdiction affecting any term of any
      Guaranteed Obligation or a Guaranteed Party’s rights with respect thereto;
      or

              

      

       

      
        	
                 
      

              	
                (e)

              	
                any
      other circumstance which might otherwise constitute a defense available
      to, or the discharge of, any of the Borrowers, or any of the
      Guarantors.

              

      

       

      
        	
                 
      

              	
                21.4

              	
                Waiver of subrogation;
      Contribution.  Notwithstanding any other provision of
      this Guaranty, until payment in full of the Guaranteed Obligations in cash
      after termination of any of the Guaranteed Parties’ commitments with
      respect thereto:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                each
      Guarantor hereby irrevocably waives any right to assert, enforce, or
      otherwise exercise any right of subrogation to any of the rights, security
      interests, claims, or liens which the Guaranteed Parties have against the
      Borrowers in respect of the Guaranteed
  Obligations;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                each
      Guarantor shall not have any right of recourse, reimbursements,
      contribution, indemnification, or similar right (by contract or otherwise)
      against the Borrowers in respect of the Guaranteed Obligations;
      and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                each
      Guarantor hereby irrevocably waives any and all of the foregoing rights
      and also irrevocably waives the benefit of, and any right to participate
      in, any Collateral or other security given to the Guaranteed Parties to
      secure payment of the Guaranteed
Obligations.

              

      

       

      
        	
                 
      

              	
                21.5

              	
                Subordination.  The
      Guarantors agree that, so long as the Borrowers remain under any actual or
      contingent liability under this Agreement or any other Finance Document,
      any rights which the Guarantors may have at any time by reason of the
      performance by the Guarantors of the Guaranteed Obligations to take the
      benefit (in whole or in part) of any security taken pursuant to this
      Agreement or any of the other Finance Documents shall be subject and
      subordinate to the rights of the Guaranteed Parties hereunder and shall be
      exercised by the Guarantors in such manner and upon such terms as the
      Guaranteed Parties may require and further agree to hold any monies at any
      time received by any Guarantor as a result of the exercise of any such
      rights or otherwise for and on behalf of the Guaranteed Parties for
      application in or towards payment of any sums at any time owed by the
      Borrowers under this Agreement or the other Finance
    Documents.

              

      

       

      
        	
                 
      

              	
                21.6

              	
                Reinstatement.  This
      Guaranty shall continue to be effective or be reinstated, as the case may
      be, if at any time any payment of any of the Guaranteed Obligations is
      rescinded or must otherwise be returned by a Guaranteed
    Party.

              

      

       

      
        	
                 
      

              	
                21.7

              	
                Waiver.  Each
      Guarantor waives promptness, diligence and notices with respect to any
      Guaranteed Obligation and this Guaranty and any requirement that a
      Guaranteed Party exhaust any right or take any action against the
      Borrowers or any other entity or any or their
  property.

              

      

       

      
        	
                 
      

              	
                21.8

              	
                Payments;
      No Reductions.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                All
      payments under this Guaranty shall be made in accordance with Clauses 11,
      15 and 16 of this Agreement.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      Guarantors agree to pay any taxes which arise from any payment made
      hereunder or from the execution, delivery or registration by such
      Guarantor of, or otherwise with respect to, this
  Agreement.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                The
      Guarantors will indemnify a Guaranteed Party in accordance with Clause 15
      upon demand.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Within
      30 days after the date of any payment of taxes, the Guarantors will
      furnish to each Guaranteed Party at its address for notices, the original
      or a certified copy of a receipt evidencing payment thereof.  If
      no taxes are payable in respect of any payment, the Guarantors will
      furnish to each Guaranteed Party a certificate from each appropriate
      taxing authority, or an opinion of counsel acceptable to each Guaranteed
      Party, in either case stating that such payment is exempt from or not
      subject to taxes.

              

      

       

      
        	
                 
      

              	
                21.9

              	
                Continuing
      Guarantee.  This Guaranty is a continuing guaranty, is
      joint and several with any other guarantee given in respect of the
      Guaranteed Obligations, and shall remain in full force and effect until
      the later of the termination of any Commitment of the Lenders under this
      Agreement and the payment in full of the Guaranteed Obligations and all
      other amounts payable hereunder and shall be binding upon the Guarantors,
      their respective successors and permitted assigns.  The
      obligations of the Guarantors under this Guaranty shall rank pari passu with all
      other unsecured obligations of each
Guarantor.”

              

      

       

      
        	
                4  

              	
                RELEASE

              

      

       

      
        	
                4.1  

              	
                Release.

              

      

      

      
        	
                (a)  

              	
                In
      consideration of the Lender, the Facility Agent, the Security Trustee and
      the Swap Banks entering into this Third Amendatory Agreement, each of the
      Obligors acknowledges and agrees
that:

              

      

      

      
        	
                (i)  

              	
                such
      Obligor does not have any claim or cause of action against any Credit
      Party (or any of such Credit Party’s respective directors, officers,
      employees or agents);

              

      

       

      
        	
                (ii)  

              	
                such
      Obligor does not have any offset right, counterclaim or defense of any
      kind against any of its respective Secured Liabilities to any Credit
      Party; and

              

      

       

      
        	
                (iii)  

              	
                each
      of the Credit Parties has heretofore properly performed and satisfied in a
      timely manner all of their respective obligations to the
      Obligors.

              

      

       

      
        	
                (b)  

              	
                To
      eliminate any possibility that any past conditions, acts, omissions,
      events, circumstances or matters would impair or otherwise adversely
      affect any Credit Party’s rights, interests, contracts, collateral
      security or remedies, each Obligor unconditionally releases, waives and
      forever discharges:

              

      

      

      
        	
                (i)  

              	
                any
      and all liabilities, obligations, duties, promises or indebtedness of any
      kind of any Credit Party to such Obligor, except the obligations to be
      performed by any Credit Party on or after the date hereof as expressly
      stated in this Third Amendatory Agreement, the Loan Agreement and the
      other Finance Documents; and

              

      

       

      
        	
                (ii)  

              	
                all
      claims, offsets, causes of action, suits or defenses of any kind
      whatsoever (if any), whether arising at law or in equity, whether known or
      unknown, which such Obligor might otherwise have against any Credit Party
      or any of its directors, officers, employees or
  agents,

              

      

       

      in either
case (i) or (ii), on account of any past or presently existing condition, act,
omission, event, contract, liability, obligation, indebtedness, claim, cause of
action, defense, circumstance or matter of any kind.

       

      
        	
                5  

              	
                CONDITIONS
      SUBSEQUENT

              

      

       

      
        	
                5.1  

              	
                Conditions
      subsequent.  The effectiveness of this Third Amendatory
      Agreement shall be subject to the following conditions subsequent being
      completed to the reasonable satisfaction of the Facility Agent on or
      before 5:00 p.m. New York time on January 29, 2010 (the “Conditions Subsequent
      Deadline”):

              

      

       

      (a)           The
Facility Agent shall have received:

       

      
        	
                (i)  

              	
                an
      original of this Third Amendatory Agreement, duly executed by the parties
      hereto;

              

      

       

      
        	
                (ii)  

              	
                copies
      of the constitutional documents, and each amendment thereto, of each
      Obligor, certified as of a date reasonably near the date of this Third
      Amendatory Agreement by a director or the president or the secretary (or
      equivalent officer) of such party as being a true and correct copy
      thereof;

              

      

       

      
        	
                (iii)  

              	
                copies
      of certificates dated as of a date reasonably near the date of this Third
      Amendatory Agreement, certifying that each Obligor is duly incorporated
      (or formed) and in goodstanding under the laws of such party’s
      jurisdiction of incorporation (or formation) and, in respect of each
      Borrower, that such Borrower is duly qualified and in goodstanding as a
      foreign maritime entity under the law of the Republic of
      Liberia;

              

      

       

      
        	
                (iv)  

              	
                copies
      of resolutions of the directors (or equivalent governing body) (and where
      required, the shareholders or equivalent equity holders) of each Obligor
      authorizing the execution of each of this Third Amendatory Agreement and
      authorizing named officers or attorneys-in-fact to execute such documents,
      certified as of a date reasonably near the date of this Third Amendatory
      Agreement by a director or the president or the secretary (or equivalent
      officer) of such party as being a true and correct copy
      thereof;

              

      

       

      
        	
                (v)  

              	
                the
      original of any power of attorney under which this Third Amendatory
      Agreement and any document to be executed pursuant to this Third
      Amendatory Agreement is to be executed on behalf of an
      Obligor;

              

      

       

      
        	
                (vi)  

              	
                copies
      of all consents which any of the Obligors requires to enter into, or make
      any payment or perform any of its obligations under or in connection with
      the transactions contemplated by this Third Amendatory Agreement, each
      certified as of a date reasonably near the date of this Third Amendatory
      Agreement by a director or the president or the secretary (or equivalent
      officer) of such party as being a true and correct copy thereof, or
      certification by such director, president or secretary (or equivalent
      officer) that no such consents are
required;

              

      

       

      
        	
                (vii)  

              	
                a
      certificate of each Obligor, signed on behalf of such party by a director
      or the president or the secretary (or equivalent officer) of the Original
      Guarantor, dated as of a date reasonably near the date of this Third
      Amendatory Agreement, certifying as
to:

              

      

       

      
        	
                1.  

              	
                the
      absence of any proceeding for the dissolution or liquidation of such
      party;

              

      

       

      
        	
                2.  

              	
                the
      veracity in all material respects of the representations and warranties
      contained in the Loan Agreement, as amended hereby, as though made on and
      as of the date of this Third Amendatory Agreement, except for (A)
      representations or warranties which expressly relate to an earlier date in
      which case such representations and warranties shall be true and correct,
      in all material respects, as of such earlier date or (B) representations
      or warranties which are no longer true as a result of a transaction
      expressly permitted by the Loan
Agreement;

              

      

       

      
        	
                3.  

              	
                the
      absence of any material misstatement of fact in any information provided
      by any of the Obligors to the Facility Agent or the Lender or the Swap
      Banks since the date of the Original Loan Agreement and that such
      information did not omit to state any material fact necessary to make the
      statements therein, in the light of the circumstances under which they
      were made, not misleading; and

              

      

       

      
        	
                4.  

              	
                the
      absence of any event occurring and continuing, or resulting from this
      Third Amendatory Agreement, that constitutes a Potential Event of Default
      or an Event of Default.

              

      

       

      
        	
                (viii)  

              	
                a
      favorable opinion of Cardillo & Corbett, New York, Liberian and
      Marshall Islands counsel to the Borrowers, in form, scope and substance
      satisfactory to the Credit Parties;

              

      

       

      
        	
                (ix)  

              	
                a
      favorable opinion of Conyers Dill & Pearman, Bermuda counsel to the
      Original Guarantor and TBSHL, in form, scope and substance satisfactory to
      the Credit Parties; and

              

      

       

      
        	
                (x)  

              	
                a
      favorable opinion of Arthur Cox, Irish counsel to TBSPLC, in form, scope
      and substance satisfactory to the Credit Parties;
  and

              

      

       

      
        	
                (b)  

              	
                No
      Event of Default or Potential Event of Default shall have occurred and be
      continuing and there shall have been no material adverse change in the
      financial condition, operations or business prospects of the Obligors
      since the date of the Loan
Agreement.

              

      

      

      
        	
                5.2  

              	
                Waiver of conditions
      subsequent.  The Facility Agent, with the consent of the
      Lender and the Swap Banks, may waive one or more of the conditions
      referred to in Clause 5.1 provided that the
      Obligors deliver to the Facility Agent a written undertaking to satisfy
      such conditions within ten (10) Business Days after the Facility Agent
      grants such waiver (or such longer period as the Facility Agent may
      specify).

              

      

       

      
        	
                5.3  

              	
                Failure to complete conditions
      subsequent.  If the Obligors fail to complete all or any
      of the conditions subsequent required by Clause 5.1(a) by the Conditions
      Subsequent Deadline, the Obligors acknowledge and agree that the
      amendments made in Clause 3 hereof shall be null, void and of no effect
      whatsoever and that the Credit Parties shall be entitled to all rights and
      to exercise all remedies afforded to them under the terms of the Loan
      Agreement (all of which are expressly reserved) as if such amendments had
      not been made.

              

      

       

      
        	
                6  

              	
                EFFECT
      OF AMENDMENTS AND WAIVERS

              

      

       

      
        	
                6.1  

              	
                References.  Each
      reference in the Original Loan Agreement to “this Third Amendatory
      Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and
      each reference to the “Loan Agreement” in any of the other Finance
      Documents, shall mean and refer to the Original Loan Agreement as amended
      hereby and by the First Amendatory Agreement and the Second Amendatory
      Agreement.

              

      

      

      
        	
                6.2  

              	
                Effect of
      amendments.  Subject to the terms of this Third
      Amendatory Agreement, with effect on and from the date hereof (subject to
      fulfillment or waiver of the conditions subsequent stated in Clause 5
      above), the Loan Agreement shall be, and shall be deemed by this Third
      Amendatory Agreement to have been, amended upon the terms and conditions
      stated herein and, as so amended, the Loan Agreement shall continue to be
      binding on each of the parties to it in accordance with its terms as so
      amended.  In addition, each of the Finance Documents shall be,
      and shall be deemed by this Third Amendatory Agreement to have been,
      amended as follows:

              

      

      

      
        	
                (a)

              	
                the
      definition of, and references throughout each of such Finance Documents
      to, the “Loan Agreement” and any of the other Finance Documents shall be
      construed as if the same referred to the Original Loan Agreement and those
      Finance Documents as amended or supplemented by this Third Amendatory
      Agreement, the First Amendatory Agreement and the Second Amendatory
      Agreement; and

              

      

       

      
        	
                (b)

              	
                by
      construing references throughout each of the Finance Documents to “this
      Agreement”, “hereunder” and other like expressions as if the same referred
      to such Finance Documents as amended and supplemented by this Third
      Amendatory Agreement, the First Amendatory Agreement and the Second
      Amendatory Agreement.

              

      

      

      
        	
                6.3  

              	
                No other amendments;
      ratification.  Except as amended hereby, all other terms
      and conditions of the Loan Agreement and the other Finance Documents
      remain unchanged and in full force and effect and are hereby ratified and
      confirmed in all respects.  Without limiting the foregoing, the
      Guarantors acknowledge and agree that the Guaranty remains in full force
      and effect.  The Obligors acknowledge and agree that the Loan
      Agreement shall, together with this Third Amendatory Agreement, be read
      and construed as a single
agreement.

              

      

      

      
        	
                7  

              	
                REPRESENTATIONS
      AND WARRANTIES

              

      

       

      
        	
                7.1  

              	
                Authority.  The
      execution and delivery by each of the Obligors of this Third Amendatory
      and the performance by each Obligor of all of its agreements and
      obligations under the Loan Agreement, as amended hereby, are within such
      Obligor’s corporate authority and have been duly authorized by all
      necessary corporate action on the part of such
  Obligor.

              

      

       

      
        	
                7.2  

              	
                Enforceability.  This
      Third Amendatory Agreement and the Loan Agreement, as amended hereby,
      constitute the legal, valid and binding obligations of each of the
      Obligors party hereto and are enforceable against such Obligors Borrowers
      in accordance with their terms, except as enforceability is limited by
      bankruptcy, insolvency, reorganization, moratorium or other laws relating
      to or affecting generally the enforcement of, creditors’ rights and except
      to the extent that availability of the remedy of specific performance or
      injunctive relief is subject to the discretion of the court before which
      any proceeding may be brought.

              

      

       

      
        	
                8  

              	
                MISCELLANEOUS

              

      

       

      
        	
                8.1  

              	
                Governing
      Law.  THIS THIRD AMENDATORY AGREEMENT
      SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
      STATE OF NEW YORK, EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF
      LAW (OTHER THAN THE NEW YORK GENERAL OBLIGATIONS LAW
      §5-1401).

              

      

       

      
        	
                8.2  

              	
                Counterparts.  This
      Third Amendatory Agreement may be executed in any number of counterparts,
      all of which taken together shall constitute one and the same
      instrument.

              

      

       

      
        	
                8.3  

              	
                Severability.  Any
      provision of this Third Amendatory Agreement that is prohibited or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be
      ineffective to the extent of such prohibition or unenforceability without
      invalidating or affecting the validity or enforceability of such provision
      in any other jurisdiction.

              

      

       

      
        	
                8.4  

              	
                Payment of
      Expenses.  The Obligors agree to pay or reimburse each of
      the Credit Parties for all reasonable expenses in connection with the
      preparation, execution and carrying out of this Third Amendatory Agreement
      and any other document in connection herewith or therewith, including but
      not limited to, reasonable fees and expenses of any counsel whom the
      Credit Parties may deem necessary or appropriate to retain, any duties,
      registration fees and other charges and all other reasonable out-of-pocket
      expenses incurred by any of the Credit Parties in connection with the
      foregoing.

              

      

       

      
        	
                8.5  

              	
                Headings and
      captions.  The headings captions in this Third Amendatory
      Agreement are for convenience of reference only and shall not define or
      limit the provisions hereof.

              

      

       

      

      [SIGNATURE
PAGES FOLLOW]

      
        
          
            19112852
v5

          

           

        

        
           

          
            

          

        

        
           

        

      

      WHEREFORE,
the parties hereto have caused this Third Amendatory Agreement to be executed as
of the date first above written.

      

      
        	
                BEDFORD
      MARITIME CORP., as Borrower

                 

                 

                 

                By:
      /s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

              	
                DVB
      GROUP MERCHANT BANK (ASIA) LTD., as Lender

                 

                 

                By:
      /s/ Jane Freeberg
      Sarma                            
       

                Jane Freeberg Sarma 

                Attorney-in-Fact

                 

              
	
                BRIGHTON
      MARITIME CORP., as Borrower

                 

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

              	
                DVB
      GROUP MERCHANT BANK (ASIA) LTD., as Facility Agent and Security
      Trustee

                 

                 

                By/s/ Jane Freeberg
      Sarma                            
        

                  Jane Freeberg Sarma
      
Attorney-in-Fact

                 

              
	
                HARI
      MARITIME CORP., as Borrower

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

                PROSPECT
      NAVIGATION CORP., as Borrower

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

              	
                THE
      GOVERNOR AND COMPANY OF THE BANK OF IRELAND, as Swap Bank

                 

                 

                By:
      /s/ Lars
      Torum                                            
       

                Lars Torum

                Senior Manager

                 

                 

                By:
      /s/ Kimberly
      Jones                                     
      

                Kimberly Jones

                Manager

                 

              
	
                HANCOCK
      NAVIGATION CORP., as Borrower

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

                COLUMBUS
      MARITIME CORP., as Borrower

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

                 

              	
                NATIXIS,
      as Swap Bank

                 

                 

                By:
      /s/ Michel
      Degermann                                
       

                Michel Degermann

                Authorized Signatory

                 

                 

                By:
      /s/ Franck
      Chambras                                      
      

                Franck Chambras

                Authorized Signatory

                 

              
	
                WHITEHALL
      MARINE TRANSPORT CORP.,

                as
      Borrower

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

              	
                DVB
      BANK SE, as Swap Bank

                 

                 

                 

                By:
      /s/ Jane
      Freeberg
      Sarma                            
        

                  Jane Freeberg Sarma
      

                

                Attorney-in-Fact

                 

              
	
                TBS
      INTERNATIONAL LIMITED,

                as
      Guarantor

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

              	 
      
	
                TBS
      HOLDINGS LIMITED,

                as
      Guarantor

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Fact

                 

              	 
      
	
                TBS
      INTERNATIONAL PUBLIC LIMITED COMPANY,

                as
      Guarantor

                 

                 

                By:/s/ Christophil B.
      Costas                              

                Christophil B.
Costas

                Attorney-in-Factex_10-19.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.19

     

     

    

     

     

    SECOND
AMENDMENT TO LOAN AGREEMENT

    

    by
and among

    

    AMOROS
MARITIME CORP.,

    LANCASTER
MARITIME CORP.

    AND

    CHATHAM
MARITIME CORP.,

    

    as
Borrowers,

    

    

    SHERWOOD
SHIPPING CORP.

    TBS
INTERNATIONAL LIMITED

    TBS
HOLDINGS LIMITED

    

    as
Guarantors, and

    

     AIG
COMMERCIAL EQUIPMENT FINANCE, INC.,

    

    as
Lender

    

    

    December
30, 2009

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECOND AMENDMENT TO LOAN
AGREEMENT

    

    THIS SECOND AMENDMENT TO LOAN
AGREEMENT (this “Second Amendment”) is made and entered into this ___ day
of December, 2009, by and among Amoros Maritime Corp., Lancaster Maritime Corp.
and Chatham Maritime Corp., each a Marshall Islands corporation having a mailing
address of P.O. Box HM 2522, Hamilton HMGX, Bermuda and a registered address of
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960 (the “Borrowers”; each, a “Borrower”), TBS International Limited, a
Bermuda corporation whose tax domicile is in Ireland (“TBSIL Guarantor”),
Sherwood Shipping Corp. (“Sherwood”), TBS Holdings Limited, a Bermuda company
(“Bermuda Holdco”) and AIG Commercial Equipment Finance, Inc., a Delaware
corporation (together with its successors and assigns, “Lender”). Unless
specifically defined in this Second Amendment, capitalized terms not used in
this Second Amendment shall have the meanings assigned in the Original Loan
Agreement, as amended.

    WHEREAS, Borrowers, TBSIL
Guarantor and Lender are parties to that certain Loan Agreement dated February
29, 2008 (the “Original Loan Agreement,” as amended by the First Amendment (as
defined below), this Second Amendment and any future amendments, the “Loan
Agreement”); and

    

    WHEREAS, Borrowers delivered
the Notes to evidence their Loan under the Loan Agreement, including that
certain US$13,000,000 Promissory Note by Lancaster Maritime Corp., that certain
US$9,000,000 Promissory Note by Amoros Maritime Corp., and that certain
$13,000,000.00 Promissory Note by Chatham Maritime Crop., each payable to the
order of Lender and dated February 29, 2008 (the “Original Notes”);
and

    

    WHEREAS, the Original Loan
Agreement was amended by that certain First Amendment to Loan Agreement dated as
of March 27, 2009 (the “First Amendment”).  In connection with the
First Amendment, each of the Original Notes was amended by an Addendum dated as
of March 27, 2009; and

    

    WHEREAS, TBSIL Guarantor is in
the process of reorganizing to become a corporation whose tax domicile is in
Ireland, and is the sole owner of Bermuda Holdco, which is the sole owner of
Westbrook Holdings Ltd.  By the Reorganization Date, TBSIL Guarantor
will become solely owned by TBS International Public Limited Company, an Irish
public limited company (“Parent Guarantor”).  As a consequence of such
pending changes in capacity and ownership, TBSIL Guarantor should no longer be
referenced under the defined term “Parent Guarantor”, which should be the entity
possessing ultimate ownership and which is the public reporting
entity.  Accordingly, effective as of the Reorganization Date (as
hereinafter defined) references to “Parent Guarantor” under the Loan Agreement
should be to the Parent Guarantor under this Second Amendment, with the
exceptions noted below; and

    

    WHEREAS, the parties wish to
further amend the Loan Agreement and Notes in various respects, including (i) a
modification of the Interest Rate to change the floor or minimum rate from 7.0%
to 10.00%  (ii) a change in the Margin from 3.50% to 5.00%,; (iii) a
modification of the applicable Prepayment Fees to (x) three percent (3.0%) for
any prepayments occurring on or prior to May 15, 2010, (y) two percent (2.0%)
for any prepayment occurring after May 15, 2010 but on or prior to May 15, 2011,
and (z) one percent (1.0%) for any prepayments occurring after May 15, 2011 (iv)
a modification of the Minimum Cash Liquidity covenant in Section 6.10 (b) for
the period from November 30, 2009 through April 2, 2010, among other matters
more fully addressed below.

    

    NOW, THEREFORE, in
consideration of the foregoing and other good and valuable consideration, the
receipt of which is hereby acknowledged, Borrowers and Lender hereby agree as
follows:

    1.  The
following definitions in the Original Loan Agreement, as previously amended by
the First Amendment, are amended and restated, effective as of the date of this
Second Amendment.

    

    “Interest Rate” means, for
each Loan, a rate over each Adjustment Period equal to the greater of (a) ten
percent (10.00%) per annum, or (b) LIBOR Rate PLUS the Margin per annum,
adjusted for each Adjustment Period effective as of the first day of each
Adjustment Period.  The Interest Rate is subject to the default rate
of interest now or hereafter set forth in each Note, which default rate shall be
equal to the lesser of (i) the Interest Rate plus 2.0%, or (ii) the maximum rate
of interest permitted by Applicable Law.   At no time will the
Interest Rate ever be less than ten percent (10.00%) per annum.

    

    As a
result of such change, the floor or minimum Interest Rate will be 10.00% per
annum, effective as of the date of this Second Amendment.

    

    “Margin” means five percent
(5.00%), unless the sum of the Margin and the LIBOR Rate on the first day of an
Adjustment Period is less than ten percent per annum, in which case the Margin
shall equal the difference between ten percent per annum and the LIBOR Rate in
effect on such date, resulting in an Interest Rate of at least ten percent per
annum at all times during the term of this Agreement.

    

    The following new definition is added
to the Loan Agreement:

    

    “Reorganization Date” means
the date on which all of the following have been accomplished: (i) the change of
the tax domicile of TBSIL Guarantor to Ireland, (2) the capitalization of Parent
Guarantor, and the transfers of stock ownership among the various holding
companies as provided in the revised restatements to Section 4.16 and Section 5.
10 of the Loan Agreement under Paragraph 3 below.

    

    2.   Section
2.03 of the Original Loan Agreement, as previously amended by the First
Amendment, is amended and restated to read as follows:

    

    Section 2.03.  The
Notes.  Each Loan and
each Borrower’s obligation to repay its Loan shall be evidenced by and repayable
with interest in accordance with the terms of such Borrower’s Note in the form
attached to the Original Loan Agreement as Schedule 2.03, as amended by an
addendum (the “First Addendum”) in the form attached to the First Amendment to
Loan Agreement dated as of March 27, 2009, which Note and First Addendum have
been further revised by a second addendum (the “Second Addendum”) in the form
attached to the Second Amendment to Loan Agreement dated December __, 2009 as
Schedule 2.03A2.  Principal and interest payable under each Note shall
be repaid in accordance with the repayment terms set forth in the Note, as
amended by the applicable First Addendum, as such Note and First Addendum are
further amended by the applicable Second Addendum.  Each Note provides
for a default rate of interest.

    

    3.   Section
4.16 of the Original Loan Agreement and Section 5.10 of the Original Loan
Agreement, as previously amended by the First Amendment, are further amended and
restated as follows:

    

    Section 4.16.  Ownership
of Borrower and Westbrook Holdings Ltd.  Each Borrower is
a wholly owned subsidiary of Westbrook Holdings Ltd., a Marshall Islands
corporation.  Westbrook Holdings Ltd is a wholly owned subsidiary of
TBS Holdings Limited (“Bermuda Holdco”).

    

    Section 5.10.  Ownership
of Borrower, Sherwood and Parent Guarantor.  Effective as of
the Reorganization Date, Parent Guarantor shall own 100% of all the issued and
outstanding shares of TBS International Limited (“TBSIL Guarantor”). TBSIL
Guarantor owns 100% of all the issued and outstanding shares of Bermuda
Holdco.  Bermuda Holdco owns 100% of all of the issued and outstanding
shares of Westbrook Holdings Ltd. (“Westbrook”).  Westbrook owns 100%
of all of the issued and outstanding shares of Sherwood Shipping Corp.
(“Sherwood”) and each Borrower.  There shall be no sale, transfer,
pledge, donation, hypothecation, alienation or other encumbrance of any of the
outstanding shares of any Borrower or Sherwood.

    

    4.   Section
5.12 of the Original Loan Agreement, as previously amended by the First
Amendment, is further amended and restated as follows:

    

    Section
5.12     Valuation.  Commencing with
the 2009 fiscal year, Borrowers will deliver to Lender as soon as available, but
in any event within 30 days after the end of each fiscal year (or, in the case
of the fiscal year ending December 31, 2009, by April 2, 2010) a certificate
executed by an Officer setting forth the Fair Market Value of the Vessels as of
such fiscal year end and attaching the most recent Valuation of the Vessels as
of such date.

    

    If for
any reason at any time the Total Outstanding shall exceed the Loan Value, the
Borrowers shall immediately prepay the Loans in an aggregate amount equal to
such excess; provided that, the Borrowers shall not be required to make such
prepayment of the Loans so long as (A) no Default or Event of Default shall have
occurred or then be continuing and (B) within 10 days of any such event (or, in
the case of any Disposition of a Vessel, prior to any such Disposition), (x) the
Borrowers pledge additional vessels for inclusion in the Vessels (to be accepted
by Lender in its sole discretion) having an appraised Fair Market Value
sufficient to eliminate such deficiency or (y) the Borrowers cause another
Subsidiary of Parent Guarantor (which may be an Excluded Subsidiary) to join
this agreement and such Person pledges additional vessels having an appraised
Fair Market Value sufficient to eliminate such deficiency, in each case, such
pledge to be in a manner and pursuant to documentation satisfactory in all
respects to the Lender, and to include a Valuation of such additional vessels
and documentation and information acceptable to Lender.

    

    5.   Section
6.10 (b) of the Original Loan Agreement, as previously amended by the First
Amendment, is further amended and restated to read as follows:

    

    Section
6.10   Financial
Covenants.  Borrowers
covenant and agree that for the term of this Agreement that Parent Guarantor and
its consolidated Affiliates and Subsidiaries shall not violate, on a
consolidated basis, the following financial covenants:

    
      	
              1.  

            	 

    

     

    * * *

    

    (b)      Minimum Cash
Liquidity.  Qualified Cash, plus Availability in
an average daily amount during such calendar month shall not be less than (a)
for the calendar months during 2008, $15,000,000.00, (b) for the months of
January 2009 through October 2009, $40,000,000.00, (c) for the period from
November 1, 2009 through April 2, 2010, $25,000,000.00, and (d) commencing on
April 3, 2010 through April 30, 2010, and for each calendar month ending on or
after May 31, 2010, $15,000,000.00.

     
 

    * *
*

    

    6.   The
agreement of Lender to enter into this Second Amendment is subject to the
condition precedent that Lender shall have received all of the following, in
form and substance acceptable to Lender in its sole discretion:

    

    (a)
executed Second Addenda to the Notes, and the Unsecured Guaranties of Bermuda
Holdco covering the Obligations;

    

    (b)
opinions of counsel of Borrowers, TBSIL Guarantor and Bermuda Holdco with
respect to this Second Amendment and the Unsecured Guaranties of Parent
Guarantor and Bermuda Holdco;

    

    (c)
copies of the Articles of Incorporation and Bylaws or other organizational
documents for each of TBSIL Guarantor and Bermuda Holdco, certified by an
authorized officer of such entity as being true and correct copies
thereof;

    

    (d)
signed copies of a certificate of an authorized officer of Borrowers, TBSIL
Guarantor and Bermuda Holdco which shall certify the names of the officers of
such entities authorized to execute and deliver this Second Amendment and the
other Loan Documents to which such entities are a party, and other documents or
certificates to be delivered pursuant to this Second Amendment or the related
Security Documents, together with the true signatures of such
officers;

    

    (e)
copies of the appropriate resolutions and consents of Borrowers, TBSIL Guarantor
and Bermuda Holdco approving the Second Amendment and related Loan Documents,
certified by the Secretary (or other appropriate official) of such party as
being a true and correct copy thereof;

    

    (g) a
good standing certificate with respect to Bermuda Holdco, issued as of a recent
date by the Secretary of State or other appropriate and authorized official
of  Bermuda Holdco’s respective jurisdiction of
incorporation;

    

    (h) such
other documents, certifications and acknowledgments respecting the Loan
Documents or the Security Documents as Lender shall reasonably
request;

     
 

    (i) the
continuing compliance by Borrowers and Guarantors of their obligations under the
Loan Agreement as modified by the First Amendment and as both the Original Loan
Agreement and First Amendment have been modified by this Second
Amendment;

    

    (j)
evidence satisfactory to Lender that no Loan Party is in default under the Loan
or any other indenture or loan or credit agreement or any other agreement, lease
or instrument to which it is a party or by which it or its properties may be
bound or affected; or, if such default exists, that it has been waived by the
applicable creditor; and

    

    (k)
Lender’s receipt of all fees and costs of Lender in connection with this Second
Amendment and the transactions contemplated hereby.

    

    In
addition, on or before the Reorganization Date, Lender shall receive the
following documents with respect to TBS International Public Limited
Company:

    

    (l)  the
Unsecured Guaranties of such entity with respect to each Borrower, as well as
such entity’s intervention to this Second Amendment, in which it agrees to be
bound hereunder, in substantially the form of Intervention attached hereto (the
“Intervention”);

    

    (m)
signed copies of a certificates of an authorized officer of such entity which
shall certify the names of the officers of such entities authorized to execute
and deliver the Intervention and the other Loan Documents to which such entity
is a party, and other documents or certificates to be delivered pursuant to this
Second Amendment or the related Loan Documents, together with the true
signatures of such officers;

    

    (n)
copies of the Articles of Incorporation and Bylaws or other organizational
documents for Parent Guarantor, certified by an authorized officer of such
entity as being true and correct copies thereof;

    

    (o)  opinions
of counsel of such entity with respect to its Unsecured Guaranties and the
Intervention; and

    

    (p) a
good standing certificate with respect to such entity, issued as of a recent
date by the Secretary of State or other appropriate and authorized official of
its jurisdiction of incorporation.

    

    

    Lender’s
waiver of any condition with respect to this Second Amendment for a particular
Borrower shall not be deemed absent express written agreement to constitute a
waiver of such condition as it may apply to any other Borrower.

    

    7.   All
references in the Original Loan Agreement and other Loan Documents to
“Guarantor” and “Loan Parties” shall include, without limitation, Bermuda
Holdco, and effective as of the Reorganization Date, Parent
Guarantor.  Bermuda Holdco shall observe all of the obligations
imposed on each Guarantor under the Loan Document. Effective as of the
Reorganization Date, with the exception of the references contained in the
definition of “B of A Credit Agreement” and “Availability”, all references to
“Parent Guarantor” in the Loan Agreement and all other Loan Documents shall be
to the new Parent Guarantor, the ultimate parent holding company and public
reporting entity, TBS International Public Limited Company.   The
reference to “Parent Guarantor” in the definitions of “B of A Credit Agreement”
and “Availability” is hereby changed to TBSIL Guarantor. Until the
Reorganization Date, all other references in the Loan Agreement and other Loan
Documents to “Parent Guarantor” shall be to TBSIL Guarantor.  TBSIL
Guarantor confirms and acknowledges that its Unsecured Guaranties dated February
29, 2008 remain the valid and binding obligations of TBSIL Guarantor and in full
force and effect.

    

    

    8.   Borrowers
agree to pay all costs and expenses in connection with the execution and
recordation of this Second Amendment and all other Loan Documents executed in
connection herewith.  In addition, Borrowers shall reimburse Lender
for all costs incurred by Lender in connection with this Second Amendment and
the transactions contemplated hereby, including without limitation, the costs of
Lender’s counsel, and the costs of Panamanian and other foreign
counsel.  Nothing herein shall be deemed to waive or limit Borrowers’
obligation to reimburse and indemnify Lender as provided in Section 8.05 of the
Original Loan Agreement.  Borrowers agree to pay Lender a modification
fee of $83,125.00 in connection with this Second Amendment within thirty (30)
days of receipt of Lender’s invoice, which shall be fully earned and
non-refundable.

    

    9.   This
Second Amendment may be executed separately by the Loan Parties and Lender in
any number of counterparts, each of which, when so executed and delivered, shall
be deemed to be an original and all of which, taken together, shall constitute
but one and the same instrument.

    

    10.   THE
VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS SECOND AMENDMENT AND THE LOAN
DOCUMENTS EXECUTED IN CONNECTION THEREWITH SHALL IN ALL RESPECTS BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

    

    11.   Borrowers,
TBSIL Guarantor, Sherwood and Bermuda Holdco, by executing this Second
Amendment, hereby confirm and acknowledgment that the amounts owed by them under
the Loan Agreement are free and clear of any deductions, offsets, counterclaims
or other reductions.  Borrowers, TBSIL Guarantor, Sherwood and Bermuda
Holdco further acknowledge that Lender has fully complied with all of its
obligations under the Loan Agreement and the Loan Documents, and hereby waive,
release and discharge Lender from and against any claim, right, demand or cause
of action arising on or before the date of this Second Amendment out of any act
or failure to act by Lender or any breach by Lender of any obligation under or
in connection with the Loan Agreement or the Loan Documents, whether arising
under theories of contract, tort, lender liability or otherwise.

    

    {signature page
follows}

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    BORROWERS:

    

    AMOROS
MARITIME CORP.

    

    /s/ Christophil B.
Costas              
        

    By:  Christophil
B. Costas

    Title:  Attorney
in Fact

    

     

    LANCASTER
MARITIME CORP.

    

    
      /s/ Christophil B.
Costas              
        

      By:  Christophil
B. Costas

      Title:  Attorney
in Fact

    

    

     

    CHATHAM
MARITIME CORP.

    

    
      /s/ Christophil B.
Costas              
        

      By:  Christophil
B. Costas

      Title:  Attorney
in Fact

    

    

    GUARANTORS:

    

     

    TBSIL
GUARANTOR:

    TBS
INTERNATIONAL LIMITED

    

    

    
      /s/ Christophil B.
Costas              
        

      By:  Christophil
B. Costas

      Title:  Attorney
in Fact

    

    

    

    

    [SIGNATURES
CONTINUED ON NEXT PAGE]

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    BERMUDA
HOLDCO:

    TBS
HOLDINGS LIMITED, a Bermuda company

    

    

    
      /s/ Christophil B.
Costas              
        

      By:  Christophil
B. Costas

      Title:  Attorney
in Fact

    

    

    

    SHERWOOD:

    SHERWOOD
SHIPPING CORP.

    

    

    
      /s/ Christophil B.
Costas              
        

      By:  Christophil
B. Costas

      Title:  Attorney
in Fact

    

    

    LENDER:

    AIG
COMMERCIAL EQUIPMENT FINANCE, INC.

    

    

    By:
/s/ Joe
Gensor                       

    Name:  Joe
Gensor

    Title:  Vice
President

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    

    Form of
Intervention

    

    INTERVENTION

    

    AND NOW, INTO THE PRESENTS OF THAT
CERTAIN SECONDAMENDMENT TO LOAN AGREEMENT DATED AS OF DECEMBER __, 2009 (“THE
SECOND AMENDMENT”) by and among Amoros Maritime Corp., Lancaster Maritime Corp.
and Chatham Maritime Corp., each a Marshall Islands corporation having a mailing
address of P.O. Box HM 2522, Hamilton HMGX, Bermuda and a registered address of
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960 (the “Borrowers”; each, a “Borrower”), TBS International Limited, a
Bermuda corporation whose tax domicile is in Ireland (“TBSIL Guarantor”),
Sherwood Shipping Corp. (“Sherwood”), TBS Holdings Limited, a Bermuda company
(“Bermuda Holdco”) and AIG Commercial Equipment Finance, Inc., a Delaware
corporation (together with its successors and assigns, “Lender”),

    

    COMES AND INTERVENES TBS
INTERNATIONAL PUBLIC LIMITED COMPANY, an Irish public limited company (“Parent
Guarantor”), who agrees to become bound under the Second Amendment, the Loan
Agreement and all other Loan Documents as a “Guarantor” under such documents,
and in connection therewith, has executed its Unsecured Guaranties with respect
to the Obligations of the Borrowers.   Parent Guarantor
represents that the “Reorganization Date” under the Second Amendment shall be
deemed to have occurred, effective as of the date of this
Intervention.   Following the date of this Intervention, all
references in the Loan Documents to “Guarantor” and “Loan Party” shall include,
without limitation, Parent Guarantor.

    

    Date:  January
___, 2010.

    

    PARENT
GUARANTOR:

    PRESENT
WHEN THE COMMON SEAL OF

    TBS
INTERNATIONAL PUBLIC LIMITED COMPANY,

    an
Irish public limited company, was affixed hereto

    

    

    _____________________________

    By:  Christophil
B. Costas

    Title:  Attorney
in Fact

    

    LENDER:

    AIG
COMMERCIAL EQUIPMENT FINANCE, INC.

    

    

    By:
__________________________

    Name:  Joe
Gensor

    Title:  Vice
President

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
2.03A2

    

    

    

    Form
of Second Addendum

    

    SECOND
ADDENDUM TO PROMISSORY NOTE

    

     

    This
Second Addendum to Promissory Note is made as of December __, 2009 with respect
to the Promissory Note dated February 29, 2008 by
[       ] CORP. in the original stated
principal amount of $[   ] (the “Note”) to the order of AIG
COMMERCIAL EQUIPMENT FINANCE, INC.

     

    

    The last two sentences of the first
paragraph on Page 1 of the Note, commencing “The Interest Rate shall be...” and
“Beginning on the first day..,” respectively, are deleted, and the following
sentences are inserted in replacement thereof:

     
 

     “The
Interest Rate shall be equal to the greater of (a) ten percent per annum or (b)
LIBOR Rate (as defined in the Loan Agreement) plus 5.0%.  Payee shall
have the right to prospectively increase the interest rate hereunder following
an Event of Default to the Default Rate, as provided below.  Beginning
on the first day of the Adjustment Period (as defined in the Loan Agreement)
following the date hereof, the Interest Rate hereunder shall be adjusted each
Adjustment Period and such adjustment shall be effective throughout such
Adjustment Period.”

    

    The final paragraph of the first page
of the Note, which is continued and completed on the second page of the Note, is
amended and restated to read as follows:

    

    “In addition to the required payments
set forth above, the undersigned shall have the right to prepay this Note, in
whole or in part, at any time following the first anniversary date of this Note
on fifteen (15) days prior written notice to the Payee, provided,
that the amount of the prepayment is at least $500,000.00 and the prepayment is
made in multiples of $500,000.00, and further provided
that on the date of such prepayment, the undersigned shall pay the principal
amount of this Note being so prepaid (the “Prepayment Amount”),
together with all interest, fees and other amounts payable on the amount so
prepaid or in connection therewith to the date of such prepayment and, the
Prepayment Fee set forth below.  If the undersigned prepays this Note
in full or in part, the undersigned shall pay, on the date of such prepayment, a
fee  (the “Prepayment Fee”) to
the Payee in an amount equal to (a) 3% of the amount of the principal
prepayment, if prepayment is made before May 15, 2010; (b) 2% of the amount of
the principal prepayment, if prepayment is made on or after May 15, 2010 but
before May 15, 2011; or (c) 1% of the amount of the principal prepayment, if
prepayment is made on or after May 15, 2011, provided that the
Prepayment Fee shall be charged and paid only to the extent permitted by
Applicable Law.  No prepayments will be permitted prior to the first
anniversary date of this Note.  Any prepayment pursuant to this
paragraph shall be applied to the installments hereof in the inverse order of
maturity. In addition, at the time of any prepayment, the undersigned shall pay
to Payee such amount as will compensate Payee for any loss, cost, expense,
penalty, claim or liability incurred by Payee as a result of such prepayment
which requires the Payee to prematurely break any related swap, interest rate
hedge or other derivative arrangement.  The Payee shall have no obligation
to purchase or enter into any swap or other derivative arrangement in connection
with funding or maintaining the loan evidenced by this Note.”

    

                                 [          ]    CORP.

     

    

     

    By:                                                      

    Name:

    Title:   Attorney
in Fact

    ACCEPTED
BY LENDER:

    

    AIG
COMMERCIAL EQUIPMENT FINANCE, INC.

    

    

    By:                                                      

    Name:

    Title:

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