Document:

Exhibit 10.3

 

Dated: as of January 27, 2011

 

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

TBS HOLDINGS LIMITED

and

TBS INTERNATIONAL PUBLIC LIMITED COMPANY

as 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

 

 

FIFTH 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,

a Second Amendatory Agreement dated as of December 31, 2009,

a Third Amendatory Agreement dated as of January 11, 2010 and

a Fourth Amendatory Agreement dated as of April 30, 2010

 

Watson, Farley & Williams

New York

 

 

FIFTH AMENDATORY AGREEMENT dated as of January 27, 2011 (this “Fifth 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, TBS HOLDINGS LIMITED, each a company organized and existing under the law of Bermuda, and TBS INTERNATIONAL PUBLIC LIMITED COMPANY (“TBSPLC”), a company organized and existing under the law of Ireland, as guarantors (each, a “Guarantor” and together, the “Guarantors”);

 

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

 

(4)           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

 

(5)           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 B4, 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 Guarantors, 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, as amended by a First Amendatory Agreement dated as of March 23, 2009, a Second Amendatory Agreement dated as of December 31, 2009, a Third Amendatory Agreement dated as of January 11, 2010 and a Fourth Amendatory Agreement dated as of April 30, 2010 (as so amended, 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 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.

 

1.2          Definitions.  In this Fifth Amendatory Agreement, unless the contrary intention appears:

 

“Additional Capital Infusion” has the meaning set forth in Clause 2.3(b);

 

“Amendment Effective Date” means January 27, 2011;

 

“Capital Infusion” has the meaning set forth in Clause 2.1(a)(ii);

 

“Deferring Lenders” means, collectively, the Lenders and the lenders under the Bank of America Credit Facility Agreement, the RBS Credit Facility Agreement, the AIG Credit Facility Agreement and the Berenberg Credit Facility Agreement;

 

“Equity Outside Date” means June 29, 2011;

 

“Escrow Agent” means JPMorgan Chase Bank, National Association;

 

“Escrow Agreement” means the Escrow Agreement dated January 25, 2011, by and among TBSPLC, the Management Shareholders, Royal Bank of Scotland plc, Bank of America N.A., the Facility Agent and the Escrow Agent;

 

“Excess Cash” has the meaning set forth in Clause 3.1(c);

 

“Final Capital Infusion” has the meaning set forth in Clause 2.1(a)(ii);

 

“Global Restructuring Term Sheet” means the term sheet dated January 12, 2011 in respect of the restructuring of the Loan and the Other TBS Credit Facilities;

 

“Initial Capital Infusion” has the meaning set forth in Clause 2.1(a)(i);

 

“Investment Agreement” means the Investment Agreement dated January 25, 2011 by and among TBSPLC and the Management Shareholders;

 

“Jamaican Joint Venture” means the investment projects in relation to limestone mines in Jamaica;

 

“Logstar Joint Venture” means LOG.STAR Navegação S.A., a corporation organized under the laws of the Federal Republic of Brazil, a joint venture which will/does provide break-bulk, bulk, liner and parcel services in the Brazilian coastal cabotage trade;

 

“Management Shareholders” means Joseph E. Royce, Lawrence A. Blatte and Gregg L. McNelis;

 

“Minimum Cash Liquidity Covenant” has the meaning set forth in the Bank of America Credit Facility Agreement;

 

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“Other  TBS Credit Facilities” means, collectively, the Bank of America Credit Facility Agreement, the RBS Credit Facility Agreement, the AIG Credit Facility Agreement, the CS Credit Facility Agreement, the Commerzbank Credit Facility Agreement and the Berenberg Credit Facility Agreement;

 

“Permitted Additional Junior Capital” has the meaning set forth in Clause 2.7;

 

“Permitted Discretionary Activities” means investments permitted to be made by TBSPLC in the Logstar Joint Venture and the Jamaican Joint Venture out of the funds in the Special Accounts without the prior approval of the Lenders, provided that:

 

(a)           the amount of such investments does not exceed the lower of $6,500,000 or fifty percent (50%) of the sum of the amount of the Capital Infusion and any Permitted Additional Junior Capital that is deposited in the Special Accounts;

 

(b)           the Borrowers and the other Security Parties are in compliance with all covenants and undertakings under this Fifth Amendatory Agreement, the Loan Agreement as amended by this Fifth Amendatory Agreement, and the other Finance Documents; and

 

(c)           any such investment is substantially in accordance with the schedules approved by the Facility Agent on or before the Amendment Effective Date and attached hereto as Exhibit A;

 

“Preferred Equity” has the meaning set forth in Clause 2.1(b);

 

“Rights Offering” means the offering by TBSPLC to shareholders of TBSPLC of rights to purchase Preferred Equity in TBSPLC pursuant to the provisions of the Investment Agreement; and

 

“Special Accounts” has the meaning set forth in Clause 2.4.

 

2              CAPITAL INFUSION

 

2.1          Capital Infusion.

 

(a)           On or before the Amendment Effective Date, the Management Shareholders shall:

 

(i)            invest $3,000,000 (the “Initial Capital Infusion”) in TBSPLC in exchange for the issuance of Preferred Equity (as defined below) issued separately and apart from the Rights Offering;

 

(ii)           unconditionally backstop the funding of an additional investment of $7,000,000 (the “Final Capital Infusion”, and together with the Initial Capital Infusion, the “Capital Infusion”) in TBSPLC by depositing the Final Capital Infusion in an escrow account with the Escrow Agent in accordance with the Escrow Agreement; and

 

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(iii)          execute and deliver the Investment Agreement and the Escrow Agreement, each in form and substance reasonably satisfactory to the Facility Agent.

 

(b)           Pursuant to the Investment Agreement, TBSPLC shall issue to the Management Shareholders and other shareholders, in exchange for the Capital Infusion, rights to acquire preferred stock, convertible preferred stock or similar equity securities in TBSPLC (the “Preferred Equity”).  The conversion price of convertible Preferred Equity shall be calculated as determined by the independent directors of TBSPLC.

 

(c)           It shall be an Event of Default under the Loan Agreement and the other Finance Documents if the full amount of the Final Capital Infusion is not funded to TBSPLC by the Equity Outside Date.

 

(d)           The Initial Capital Infusion shall be immediately available for Permitted Discretionary Activities.

 

2.2          Dividends on Preferred Equity.  Until the termination of the Security Period, except as permitted by the Investment Agreement and the Escrow Agreement, TBSPLC shall not declare or pay any dividends or return any capital to any holder of Preferred Equity or authorize or make any other distribution, payment or delivery of property or cash to any holder of Preferred Equity, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for value, any share of Preferred Equity, and the holders of the Preferred Equity shall not be entitled to require TBSPLC to redeem the Preferred Equity or pay cash dividends on such Preferred Equity before September 9, 2016.

 

2.3          Use of Final Capital Infusion.

 

(a)                                  Some or all of the Final Capital Infusion shall be drawn, as provided in the Investment Agreement and the Escrow Agreement, on or prior to the Equity Outside Date, in exchange for the issuance to the Management Shareholders of Preferred Equity.  The  Management  Shareholders’ portion of the Final Capital Infusion shall be calculated as $7,000,000 less the sum of (i) the amount, if any, received from other shareholders subscribing to the Rights Offering and (ii) the amount of the Additional Capital Infusion (as defined below).

 

(b)           In accordance with the Investment Agreement and the Escrow Agreement, the Final Capital Infusion shall be available to be drawn, at the discretion of TBSPLC, on or prior to the Equity Outside Date to fund Permitted Discretionary Activities or to maintain compliance with the Minimum Cash Liquidity Covenant.  Any amounts so withdrawn (an “Additional Capital Infusion”) shall be in exchange for the issuance to the Management Shareholders of Preferred Equity of TBSPLC issued separately and apart from the Rights Offering.

 

2.4          Deposit of Capital Infusion and Additional Capital Infusion.  TBSPLC shall deposit the proceeds of any Capital Infusion and any Additional Capital Infusion, including but not limited to any funds raised in connection with the Rights Offering, up to $20,000,000, into one or more segregated accounts (the “Special Accounts”) held by TBSPLC.

 

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2.5          Use of funds in Special Accounts.

 

(a)           The funds held in the Special Accounts shall be available, at the discretion of TBSPLC, to fund Permitted Discretionary Activities or provide liquidity relief (including curing any breach of the Minimum Cash Liquidity Covenant).  Any funds from the Special Account used to cure a breach of the Minimum Cash Liquidity Covenant may thereafter be returned to the Special Accounts to the extent no longer needed to maintain compliance with such covenant; provided that no such refund can be effectuated unless, after such refund, aggregate cash balances (other than cash in any Special Account, any amounts required to be held against equity commitments on the New Vessel program (as defined in the RBS Credit Facility Agreement) and any cash pledged to support letters of credit) equal or exceed $22,500,000, subject to a limit, applied separately for each cure of a breach of the Minimum Cash Liquidity Covenant, of the sum of (i) $5,000,000 plus, (ii) the amount by which aggregate amounts spent for Permitted Discretionary Activities are less than $5,000,000.

 

(b)           TBSPLC shall not pledge the Special Accounts or any funds standing to the credit of the Special Accounts.

 

(c)           TBSPLC shall have the sole and exclusive rights to the Special Accounts and the funds standing to the credit of the Special Accounts and neither the Management Shareholders nor investors participating in the Rights Offering shall have any residual rights with respect to funds in the Special Accounts.

 

2.6          Replenishment of Special Accounts.  The Special Accounts may be replenished only as provided in Clause 2.5(a) above and Clause 2.7 below.

 

2.7          Permitted Additional Junior Capital.  Additional capital infusions in TBSPLC (“Permitted Additional Junior Capital”) may be made in any form permitted for the Capital Infusion and shall be used initially to replenish the Special Accounts up to $15,000,000 if the aggregate amount of the Capital Infusion before the Equity Outside Date is $15,000,000 or less, and up to $20,000,000, if the aggregate amount of the Capital Infusion before the Equity Outside Date is in excess of $15,000,000.  Permitted Additional Junior Capital in excess of amounts required to replenish the Special Accounts shall be treated as available cash for the purposes of calculating Excess Cash.

 

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 4 below, the parties hereto agree to amend the Loan Agreement as follows with effect on and from the date hereof:

 

(a)           The definition of “Margin” in Clause 1.1 is amended and restated to read as follows:

 

““Margin” means 5.75 percent per annum;”

 

(b)           The definition of “Maturity Date” in Clause 1.1. is amended and restated to read as follows:

 

““Maturity Date” means June 30, 2014;”

 

(c)           The following definitions are added to Clause 1.1:

 

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““Allotment of Excess Cash” means 12.92% of the Excess Cash;”

 

““Capital Infusion” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

““Excess Cash” means the sum of:

 

(a)           the aggregate cash balances of TBSPLC and its Affiliates at the last day of the relevant Measurement Period, other than (i) cash in the Special Accounts, (ii) cash required to be held against equity commitments under the RBS Credit Facility Agreement, and (iii) any cash pledged by TBSPLC and its Affiliates to support letters of credit;

 

(b)           minus Rollover CAPEX;

 

(c)           minus insurance proceeds held for repair of any vessel within the fleet of vessels (including the Ships) owned and/or operated by TBSPLC, its subsidiaries and its Affiliates;

 

(d)           minus an amount equal to the funds transferred from the Special Accounts to cure any breach of the Minimum Cash Liquidity Covenant and eligible to be refunded to the Special Accounts, but not yet so refunded on the last day of the relevant Measurement Period;

 

(e)           plus any increase in net working capital during the Measurement Period that exceeds $4,000,000 and minus any decrease in net working capital during the Measurement Period that exceeds $4,000,000;

 

(f)            minus net proceeds for the sale of encumbered assets outside the ordinary course of business to the extent used or anticipated to be used within 30 days after the last day of the relevant Measurement Period to repay debt encumbering such assets; and

 

(g)           minus $30,000,000;”

 

““Excess Cash Payment Date” means 60 days after the end of any Measurement Period that is the end of a calendar year, and 45 days after the end of any other Measurement Period;”

 

“Jamaican Joint Venture” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

““LAGUNA BELLE and SEMINOLE PRINCESS Charters” means:

 

(a)           the Bareboat Charter Party dated as of January 24, 2007 (as amended) among Adirondack Shipping LLC as Owner, Fairfax Shipping Corp. as Charterer and the Guarantors named therein in respect of the Panamanian registered and Philippines bareboat registered SEMINOLE PRINCESS; and

 

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(b)           the Bareboat Charter Party dated as of January 24, 2007 (as amended) among Rushmore Shipping LLC as Owner, Beekman Shipping Corp. as Charterer, and the Guarantors named therein in respect of the Panamanian registered and Philippines bareboat registered LAGUNA BELLE;”

 

““Logstar Joint Venture” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

““Measurement Period” means the semi-annual period ending December 31, 2011 and each semi-annual period ending on each subsequent July 31 and December 31 of each subsequent year thereafter;”

 

““Minimum Cash Liquidity Covenant” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

““Other TBS Credit Facilities” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

““Permitted Additional Junior Capital” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

““Permitted Discretionary Activities” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

““Permitted Logstar Debt” means debt of the Logstar Joint Venture, not exceeding a total of $3,500,000, arising from purchases from marine vendors, which debt shall be non-recourse to the Guarantors and to the Borrowers;”

 

““Replacement Debt” means any debt incurred to repay existing debt provided that, except with respect to debt that refinances all existing debt scheduled to become due on or before September 9, 2014, Replacement Debt shall include only debt which:

 

(a)           does not provide for the payment, on or before September 9, 2014, of current cash interest at a rate in excess of the existing debt refinanced or principal payments in excess of those required for the existing debt refinanced; and

 

(b)           has no tighter covenants restrictions or events of default than the existing debt refinanced.”

 

““Rollover CAPEX” means capital expenditures committed to be incurred in the last quarter of a Measurement Period but actually to be incurred in the subsequent Measurement Period;” and

 

““Special Accounts” has the meaning set forth in the Fifth Amendatory Agreement to this Agreement;”

 

(d)           Clause 7.1 is amended and restated to read as follows:

 

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“Amount and dates of repayment installments.  The Borrowers shall repay the loan in 13 consecutive quarterly installments in the following amounts:

 

(a)           $1,115,000 each for installments due from and including June 30, 2011 through December 31, 2011;

 

(b)           $856,000 each for installments due from and including March 31, 2012 through December 31, 2012; and

 

(c)           $1,179,000 each for installments due from and including March 31, 2013 through June 30, 2014.”

 

(e)           Clause 7.2 is amended and restated to read as follows:

 

“Repayment Dates.  The first repayment installment shall be made on June 30, 2011.  Each subsequent repayment installment shall be repaid quarterly thereafter and the last repayment installment shall be repaid on the Maturity Date, together with a balloon payment of $12,237,000 and all other sums then accrued or owning under any Finance Document.”

 

(f)            Clause 7.7 is amended and restated to read as follows:

 

“Mandatory prepayment.

 

(a)           If a Ship is sold or becomes a Total Loss, the Borrowers shall prepay the Loan in an amount equal to the net sale or insurances proceeds (as the case may be) received for such Ship:

 

(i)            in the case of a sale, on the date on which the sale is completed by delivery of the Ship to the buyer; or

 

(ii)           in the case of a Total Loss, on the earlier of the date falling 120 days after the Total Loss Date and the date of receipt by the Security Trustee of the proceeds of insurance relating to such Total Loss.

 

(b)           The Borrowers shall prepay the Loan in an amount equal to the Allotment of Excess Cash on the relevant Excess Cash Payment Date.”

 

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

 

“TBSPLC shall maintain normal cash management practices, provided that nothing in such cash management practices are to impair TBSPLC’s ability to pay the Excess Cash Allotment;”

 

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

 

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

 

(i)            its monthly balance sheet and profit and loss statement as soon as practicable but not later than (1) for any monthly period that is not the end of a calendar

 

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year, 45 days after the end of such period and (2) for any monthly period that coincides with the end of a calendar year, 60 days after the end of such period;

 

(ii)           its 13-week cash flow report on the Wednesday of each week reporting prior week results and variances and rolling 13 week forecast;

 

(iii)          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);

 

(iv)          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;

 

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

 

(vi)          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;”

 

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

 

“none of the Borrowers or the Guarantors or their Affiliates will create, assume or permit to exist any Security Interest whatsoever upon any of its properties or assets, whether now owned or hereafter acquired, except for (i) any Security Interest created by the Finance Documents to which it is a party, (ii) liens existing as of December 29, 2010 that were created in connection with any of the AIG Credit Facility Agreement, the Bank of America Credit Facility Agreement, the Berenberg Credit Facility Agreement, the Commerzbank Credit Facility Agreement, the Credit Suisse Credit Facility Agreement, the RBS Credit Facility Agreement or the RBS Guarantee Facility Agreement and the secured swap transactions relating to the foregoing Other TBS Credit Facilities, (iii) liens created after December 29, 2010 in connection with the RBS Credit Facility Agreement or the RBS Guarantee Facility Agreement and attaching to new vessels financed by such facilities, (iv) cash collateral in respect of letters of credit, up to a maximum of $3,000,000 outstanding at any time, and (v) any de minimis liens or other liens that arise in the ordinary course of business;”

 

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

 

“(i)          none of the Borrowers shall incur any Financial Indebtedness other than (A) the Loan, (B) in the usual course of business, (C) as permitted by the Finance Documents and (D) Financial Indebtedness that is fully subordinated to the Loan; and

 

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(ii)           the Guarantor Group shall not, on a consolidated basis, incur any Financial Indebtedness other than:

 

(1)           the Loan;

 

(2)           in the usual course of business;

 

(3)           pursuant to the AIG Credit Facility Agreement;

 

(4)           pursuant to the Bank of America Credit Facility Agreement;

 

(5)           pursuant to the Berenberg Credit Facility Agreement;

 

(6)           pursuant to the Commerzbank Credit Facility Agreement;

 

(7)           pursuant to the Credit Suisse Credit Facility Agreement;

 

(8)           pursuant to the RBS Credit Facility Agreement;

 

(9)           pursuant to the RBS Guarantee Facility Agreement;

 

(10)         Capital Infusions;

 

(11)         Permitted Additional Junior Capital;

 

(12)         Replacement Debt;

 

(13)         Permitted Logstar Debt;

 

(14)         Financial Indebtedness that is fully subordinated to the Guarantors’ obligations under Clause 21 of the Loan Agreement;

 

(15)         to the extent constituting Financial Indebtedness, all obligations in respect of guaranties and interest rate swaps related to the Other TBS Credit Facilities; and

 

(16)         TBSPLC and its Affiliates shall be permitted to convert the LAGUNA BELLE and SEMINOLE PRINCESS Charters to debt which shall not exceed an aggregate principal amount of $25,000,000 and shall have no adverse effect on the consolidated cash flow of TBSPLC and its Affiliates as compared to the LAGUNA BELLE and SEMINOLE PRINCESS Charters;”

 

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

 

“(i)          TBSPLC shall not:

 

(1)           declare or pay any dividends or return any capital to any equity holder or

 

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authorize or make any other distribution, payment or delivery of property or cash to any equity holder as such;

 

(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; or

 

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

 

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

 

“none of the Borrowers will make any loan or advance to, make any investment in, or enter into any working capital maintenance or similar agreement with respect to any person, whether by acquisition of stock or indebtedness, by loan, guarantee or otherwise, provided that TBSPLC may invest in Permitted Discretionary Activities in accordance with the definition thereof;”

 

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

 

“none of the Borrowers or the Guarantors shall make or permit any change in their respective accounting policies affecting (i) the presentation of financial statements or (ii) reporting practices, except in either case (1) in accordance with accounting principles and practices acceptable to the Facility Agent, and (2) changes in accounting treatment of operating leases and other impairment changes required by applicable accounting requirements;”

 

(n)           An additional Clause 10.2(r) shall be added to the Loan Agreement to read as follows:

 

“none of the Borrowers or the Guarantors or any subsidiaries or Affiliates of the Guarantors shall incur any capital expenditures, including Rollover CAPEX, except (i) as provided in Clause 10.2(m) above, (ii) as necessary to complete the construction programs of Ship D, Ship E and Ship F under (and as such terms are defined in) the RBS Credit Facility Agreement;”

 

(o)           An additional Clause 10.2(s) shall be added to the Loan Agreement to read as follows:

 

“TBSPLC and any of its Affiliates (other than the Borrowers) may enter into ordinary course charter in agreements subject to a cap in aggregate of $10,000,000 outstanding at any one time, provided that such limit shall not apply to vessels chartered-in by TBSPLC and any of its Affiliates (other than the Borrowers) for a fixed remaining term of 12 months or less or to the LAGUNA BELLE and SEMINOLE PRINCESS Charters; or”

 

(p)           An additional Clause 10.2(t) shall be added to the Loan Agreement to read as follows:

 

“TBSPLC and its Affiliates shall not enter into any leases (other than existing leases and renewals related thereto and future de minimis and ordinary course leases), provided that TBSPLC and its Affiliates shall be permitted to consolidate its offices located in Westchester County, New York, in a new location within the same geographic area so long as any such

 

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consolidation shall have no adverse cash flow impact compared to the aggregate premises expense of the existing offices.”

 

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

 

“an event of default, or an event or circumstance which, with the giving of any notice, the lapse of time or both would constitute an event of default, has occurred under any contract or agreement (other than the Finance Documents) to which an Obligor is a party; or”

 

(r)            An additional Clause 13.1(s) shall be added to the Loan Agreement to read as follows:

 

“(s)         an event of default shall have occurred under the terms of the Fifth Amendatory Agreement to this Agreement.”

 

4              CONDITIONS PRECEDENT

 

4.1          Conditions precedent.  The effectiveness of this Fifth Amendatory Agreement shall be subject to the following conditions precedent being completed to the reasonable satisfaction of the Facility Agent on or before 5:00 p.m. New York time on January 31, 2011 (the “Conditions Precedent Deadline”):

 

(a)           The Facility Agent shall have received an original of this Fifth Amendatory Agreement, duly executed by the parties hereto;

 

(b)           The Facility Agent shall have received evidence, reasonably satisfactory to the Facility Agent, that each of the Other TBS Credit Facilities have been restructured as per the Global Restructuring Term Sheet with the approval of all of the creditors under such Other TBS Credit Facilities;

 

(c)           The Facility Agent shall have received evidence, reasonably satisfactory to the Facility Agent, that the applicable requirements of Clause 2 hereof have been satisfied, including without limitation evidence that the Capital Infusion has been made as required under Clause 2.1(a);

 

(d)           The Facility Agent shall have received a schedule, approved by the Facility Agent, of the capital expenditures necessary to complete the construction programs in respect of Ship D, Ship E and Ship F under (and as such terms are defined in) the RBS Credit Facility Agreement and to maintain the existing fleet of TBSPLC and its subsidiaries;

 

(e)           The Facility Agent shall have received:

 

(i)            copies of any amendment to the constitutional documents, made subsequent to April 30, 2010, of each Obligor, certified by a director or the president or the secretary (or equivalent officer) of such party as being a true and correct copy thereof, or, if there were none, a statement to that effect by a director or the president or the secretary (or equivalent officer) of such party, certified by a director or the president or the secretary (or equivalent officer) of such party;

 

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(ii)           copies of certificates certifying that each Obligor is duly incorporated (or formed) and in good standing 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 good standing as a foreign maritime entity under the law of the Republic of Liberia;

 

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

 

(iv)          the original of any power of attorney under which this Fifth Amendatory Agreement and any other document to be executed pursuant to this Fifth Amendatory Agreement was or is to be executed on behalf of an Obligor;

 

(v)           copies of all consents which any of the Obligors required or requires to enter into, or make any payment or perform any of its obligations under or in connection with the transactions contemplated by this Fifth Amendatory Agreement, each certified 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;

 

(vi)          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 Guarantor, 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 such certification, 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 April 30, 2010 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 Fifth Amendatory Agreement, that constitutes a Potential Event of Default or an Event of Default.

 

13

 

4.2                               Waiver of conditions precedent.  The Facility Agent, with the consent of the Lenders and the Swap Banks, may waive one or more of the conditions referred to in Clause 4.1 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).

 

4.3                               Failure to complete conditions precedent.  If the Obligors fail to complete all or any of the conditions precedent required by Clause 4.1 by the Conditions Precedent Deadline, and the Facility Agent has not granted a waiver pursuant to Clause 4.2 hereof, the Obligors acknowledge and agree that such failure shall be deemed an Event of Default under the Loan Agreement 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 and the other Finance Documents (all of which are expressly reserved).

 

5                                         CONDITIONS SUBSEQUENT

 

5.1                               Conditions subsequent.  The effectiveness of this Fifth Amendatory Agreement shall be further 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 February 28, 2011 (the “Conditions Subsequent Deadline”):

 

(a)           The Facility Agent shall have received:

 

(i)                                     an original addendum to the Mortgage in respect of each of the Ships, each such addendum to be in form and substance satisfactory to the Facility Agent and duly executed by the parties thereto, together with documentary evidence that the relevant Mortgage addendum has been duly recorded according to the laws of the Republic of Liberia and that a cautionary notice with respect to such Mortgage addendum has been filed in the Philippine Bareboat Registry;

 

(ii)                                  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;

 

(iii)                               a favorable opinion of Conyers Dill & Pearman, Bermuda counsel to TBS and TBSHL, in form, scope and substance satisfactory to the Credit Parties; and

 

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

 

5.2                               Waiver of conditions subsequent.  The Facility Agent, with the consent of the Lenders 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, and the Facility Agent has not granted a waiver pursuant to Clause 5.2 hereof, the Obligors

 

14

 

acknowledge and agree that such failure shall be deemed an Event of Default under the Loan Agreement 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 and the other Finance Documents (all of which are expressly reserved).

 

6                                         WAIVER; EFFECT OF AMENDMENTS

 

6.1                               Waiver.  Reference is hereby made to the Letter Agreement dated as of September 30, 2010, as amended as of November 12, 2010 and December 23, 2010 (as amended, the “Forbearance Letter”) whereby the Facility Agent, the Lender, the Security Trustee and the other Credit Parties agreed subject to the conditions therein to forbear from exercising any of the rights or remedies arising from the “Specified Events of Default” as provided therein.  Subject to the fulfillment or waiver of the conditions precedent and the conditions subsequent set forth in Sections 4 and 5 of this Agreement, and effective on the Amendment Effective Date, the Facility Agent, the Lender, the Security Trustee and the other Credit Parties hereby waive each of the Specified Events of Default as defined in the Forbearance Letter, and the rights and remedies of the Facility Agent, the Lender, the Security Trustee and the other Credit Parties arising therefrom.

 

6.2                               References.  Each reference in the Loan Agreement to “this 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 Loan Agreement as amended hereby.

 

6.3                               Effect of amendments.  Subject to the terms of this Fifth Amendatory Agreement, with effect on and from the date hereof (subject to fulfillment or waiver of the conditions precedent stated in Clause 4 above and 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 Fifth 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 Fifth 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 Loan Agreement and those Finance Documents as amended or supplemented by this Fifth 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 Fifth Amendatory Agreement.

 

6.4                              No other amendments; ratification.

 

(a)                                  Except as amended, waived or temporarily waived 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.

 

15

 

(b)                                 Without limiting the foregoing, each of the Guarantors acknowledges and agrees that the Guaranty remains in full force and effect.

 

(c)                                  The Obligors acknowledge and agree that the Loan Agreement shall, together with this Fifth 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 Fifth 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 Fifth 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 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                                         RELEASE

 

8.1                               Release.

 

(a)                                In consideration of the Lender, the Facility Agent, the Security Trustee and the Swap Banks entering into this Fifth Amendatory Agreement, each of the Obligors acknowledges and agrees that, as of the date hereof:

 

(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 Fifth Amendatory Agreement, the Loan Agreement and the other Finance Documents; and

 

16

 

(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.

 

9                                         MISCELLANEOUS

 

9.1                               Governing law.  THIS FIFTH 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).

 

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

 

9.3                               Severability.  Any provision of this Fifth 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.

 

9.4                               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 Fifth 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.

 

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

 

[SIGNATURE PAGES FOLLOW]

 

17

 

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

 

	
BEDFORD   MARITIME CORP., as Borrower
    	
 
    	
DVB   GROUP MERCHANT BANK (ASIA) LTD., as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christophil B. Costas
    	
 
    	
By:
    	
/s/   Jane Freeberg Sarma
    
	
Name:   Christophil B. Costas
    	
 
    	
Name:   Jane Freeberg Sarma
    
	
Title:   Attorney-in-fact
    	
 
    	
Title:   Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
BRIGHTON   MARITIME CORP., as Borrower
    	
 
    	
DVB   GROUP MERCHANT BANK (ASIA) LTD., as Facility Agent and Security Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christophil B. Costas
    	
 
    	
By:   
    	
/s/   Jane Freeberg Sarma
    
	
Name:   Christophil B. Costas
    	
 
    	
Name:   Jane Freeberg Sarma
    
	
Title:   Attorney-in-fact
    	
 
    	
Title:   Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
HARI   MARITIME CORP., as Borrower
    	
 
    	
THE   GOVERNOR AND COMPANY OF THE BANK OF IRELAND, as Swap Bank
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Christophil B. Costas
    	
 
    	
By:   
    	
/s/   Kimberly Jones
    
	
Name:   Christophil B. Costas
    	
 
    	
Name:   Kimberly Jones
    
	
Title:   Attorney-in-fact
    	
 
    	
Title:   Manager
    
	
 
    	
 
    	
 
    
	
PROSPECT   NAVIGATION CORP., as Borrower
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Christophil B. Costas
    	
 
    	
By:   
    	
/s/   Lars Frum
    
	
Name:   Christophil B. Costas
    	
 
    	
Name:   Lars Frum
    
	
Title:   Attorney-in-fact
    	
 
    	
Title:   Senior Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
HANCOCK   NAVIGATION CORP., as Borrower
    	
 
    	
NATIXIS,   as Swap Bank
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christophil B. Costas
    	
 
    	
By:   
    	
/s/   Stephanie About
    
	
Name:   Christophil B. Costas
    	
 
    	
Name:   Stephanie About
    
	
Title:   Attorney-in-fact
    	
 
    	
Title:   Global Head of Fixed Income & Commodities
    
	
 
    	
 
    	
 
    
	
COLUMBUS   MARITIME CORP., as Borrower
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christophil B. Costas
    	
 
    	
By:
    	
 
    
	
Name:   Christophil B. Costas
    	
 
    	
Name:
    
	
Title:   Attorney-in-fact
    	
 
    	
Title:
    
												

 

18

 

	
WHITEHALL   MARINE TRANSPORT CORP., as Borrower
    	
 
    	
DVB   BANK SE, as Swap Bank
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Christophil B. Costas
    	
 
    	
By:
    	
/s/   Jane Freeberg Sarma
    
	
Name:   Christophil B. Costas
    	
 
    	
Name:   Jane Freeberg Sarma
    
	
Title:   Attorney-in-fact
    	
 
    	
Title:   Attorney-in-fact
    
	
 
    	
 
    	
 
    
	
TBS   INTERNATIONAL LIMITED, as Guarantor
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christophil B. Costas
    	
 
    	
 
    
	
Name:   Christophil B. Costas
    	
 
    	
 
    
	
Title:   Attorney-in-fact
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TBS   HOLDINGS LIMITED, as Guarantor
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christophil B. Costas
    	
 
    	
 
    
	
Name:   Christophil B. Costas
    	
 
    	
 
    
	
Title:   Attorney-in-fact
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TBS   INTERNATIONAL PUBLIC LIMITED COMPANY, as Guarantor
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Christophil B. Costas
    	
 
    	
 
    
	
Name:   Christophil B. Costas
    	
 
    	
 
    
	
Title:   Attorney-in-fact
    	
 
    	
 
    

 

19

 

Exhibit A

Schedule of Permitted Discretionary Activities

 

1.           Log- Star Brazil $3.5 Million

 

·      Funds to be used for outstanding Accounts payable MACAU repairs, funding January Operating Loss.

 

·      Funds will be incremented by $1.5 million from our partner (70% TBS 30% Log-In).

 

·      To be disbursed as necessary in $1 million increments during February 2011.

 

·      Funds from TBS and our partner will initially be classified as a loan but may subsequently be re-characterized as equity.

 

2.           Jamaica Mine Joint Venture $3.0 million for 50% ownership in the mine

 

·      Funds to be used for various repairs to sheds, conveyor belts and crushing plant upgrades.

 

·      Disbursements to the Joint Venture to be made at the rate of $1 million per year in 2011, 2012 and 2013.

 

20

 

Roymar - 2011 Drydock Cost Report - Updated as of

Updated on 12/21/2010

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Dock Yard Cost
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Actual/Budget/Current Estimate
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Steel Budget
    	
 
    	
Dock Yard
   Cost
    	
 
    	
Dock Yard
    	
 
    	
All Other
    	
 
    	
 
    	
 
    	
Original
   Budget
    	
 
    
	
NO
    	
 
    	
Vessel Name
    	
 
    	
Fleet
    	
 
    	
Staff
   Acct
    	
 
    	
Drop Dead
   Drydock Date
    	
 
    	
Start Date
    	
 
    	
End Date
    	
 
    	
Days
    	
 
    	
Upcoming
   DD
    	
 
    	
Amort
   mos
    	
 
    	
Quantity
   (kg)
    	
 
    	
$/kg
    	
 
    	
Cost
    	
 
    	
Excluding
   Steel
    	
 
    	
Cost
   Summary
    	
 
    	
Cost
   Summary
    	
 
    	
Savings
    	
 
    	
Cost
   Summary
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
ARAPAHO   BELLE
    	
 
    	
C
    	
 
    	
TW
    	
 
    	
1/16/2011
    	
 
    	
1/8/2011
    	
 
    	
1/28/2011
    	
 
    	
20
    	
 
    	
11/15/12
    	
 
    	
22
    	
 
    	
10,000
    	
 
    	
1.85
    	
 
    	
18,500
    	
 
    	
329,000
    	
 
    	
347,500
    	
 
    	
415,100
    	
 
    	
(69,416
    	
)
    	
693,184
    	
 
    
	
2
    	
 
    	
LA   JOLLA BELLE
    	
 
    	
D
    	
 
    	
EL
    	
 
    	
3/10/2011
    	
 
    	
1/8/2011
    	
 
    	
2/12/2011
    	
 
    	
35
    	
 
    	
10/1/12
    	
 
    	
20
    	
 
    	
200,000
    	
 
    	
2.00
    	
 
    	
400,000
    	
 
    	
627,000
    	
 
    	
1,027,000
    	
 
    	
443,000
    	
 
    	
(115,581
    	
)
    	
1,354,419
    	
 
    
	
3
    	
 
    	
WICHITA   BELLE
    	
 
    	
B
    	
 
    	
MCW
    	
 
    	
3/26/2011
    	
 
    	
3/15/2011
    	
 
    	
4/9/2011
    	
 
    	
25
    	
 
    	
1/11/14
    	
 
    	
33
    	
 
    	
50,000
    	
 
    	
2.00
    	
 
    	
100,000
    	
 
    	
427,500
    	
 
    	
527,500
    	
 
    	
493,000
    	
 
    	
(80,239
    	
)
    	
940,261
    	
 
    
	
4
    	
 
    	
ONEIDA   PRINCESS
    	
 
    	
B
    	
 
    	
MPB
    	
 
    	
3/26/2011
    	
 
    	
3/23/2011
    	
 
    	
4/13/2011
    	
 
    	
21
    	
 
    	
1/30/13
    	
 
    	
22
    	
 
    	
30,000
    	
 
    	
2.00
    	
 
    	
60,000
    	
 
    	
351,500
    	
 
    	
411,500
    	
 
    	
423,000
    	
 
    	
(65,614
    	
)
    	
768,886
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Quarter - Sub Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
101
    	
 
    	
 
    	
 
    	
96
    	
 
    	
290,000
    	
 
    	
1.99
    	
 
    	
578,500
    	
 
    	
1,735,000
    	
 
    	
2,313,500
    	
 
    	
1,774,100
    	
 
    	
(330,849
    	
)
    	
3,756,751
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5
    	
 
    	
ALABAMA   BELLE
    	
 
    	
B
    	
 
    	
JC
    	
 
    	
6/26/2011
    	
 
    	
4/1/2011
    	
 
    	
5/1/2011
    	
 
    	
30
    	
 
    	
3/24/14
    	
 
    	
35
    	
 
    	
125,000
    	
 
    	
2.00
    	
 
    	
250,000
    	
 
    	
484,500
    	
 
    	
734,500
    	
 
    	
460,000
    	
 
    	
(93,920
    	
)
    	
1,100,580
    	
 
    
	
6
    	
 
    	
MOHAWK   PRINCESS
    	
 
    	
A
    	
 
    	
CAO
    	
 
    	
3/30/2011
    	
 
    	
3/15/2011
    	
 
    	
4/19/2011
    	
 
    	
35
    	
 
    	
3/26/14
    	
 
    	
35
    	
 
    	
350,000
    	
 
    	
2.00
    	
 
    	
700,000
    	
 
    	
560,000
    	
 
    	
1,260,000
    	
 
    	
430,000
    	
 
    	
(132,879
    	
)
    	
1,557,121
    	
 
    
	
7
    	
 
    	
TAMOYO   MAIDEN
    	
 
    	
C
    	
 
    	
TW
    	
 
    	
8/4/2011
    	
 
    	
5/10/2011
    	
 
    	
6/4/2011
    	
 
    	
25
    	
 
    	
10/21/14
    	
 
    	
41
    	
 
    	
50,000
    	
 
    	
2.00
    	
 
    	
100,000
    	
 
    	
608,000
    	
 
    	
708,000
    	
 
    	
400,000
    	
 
    	
(87,118
    	
)
    	
1,020,882
    	
 
    
	
8
    	
 
    	
AZTEC   MAIDEN
    	
 
    	
D
    	
 
    	
MPB
    	
 
    	
1/5/2011
    	
 
    	
6/15/2011
    	
 
    	
7/20/2011
    	
 
    	
35
    	
 
    	
10/5/13
    	
 
    	
27
    	
 
    	
175,000
    	
 
    	
2.00
    	
 
    	
350,000
    	
 
    	
608,000
    	
 
    	
958,000
    	
 
    	
433,000
    	
 
    	
(109,370
    	
)
    	
1,281,630
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Quarter - Sub Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
125
    	
 
    	
 
    	
 
    	
137
    	
 
    	
700,000
    	
 
    	
2.00
    	
 
    	
1,400,000
    	
 
    	
2,260,500
    	
 
    	
3,660,500
    	
 
    	
1,723,000
    	
 
    	
(423,287
    	
)
    	
4,960,213
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
9
    	
 
    	
INCA   MAIDEN
    	
 
    	
C
    	
 
    	
MPB
    	
 
    	
8/10/2011
    	
 
    	
8/10/2011
    	
 
    	
9/4/2011
    	
 
    	
25
    	
 
    	
4/24/14
    	
 
    	
32
    	
 
    	
50,000
    	
 
    	
2.00
    	
 
    	
100,000
    	
 
    	
608,500
    	
 
    	
708,500
    	
 
    	
400,000
    	
 
    	
(87,158
    	
)
    	
1,021,342
    	
 
    
	
10
    	
 
    	
ZUNI   PRINCESS
    	
 
    	
A
    	
 
    	
DG
    	
 
    	
10/27/2011
    	
 
    	
7/27/2011
    	
 
    	
8/21/2011
    	
 
    	
25
    	
 
    	
10/27/13
    	
 
    	
26
    	
 
    	
150,000
    	
 
    	
2.00
    	
 
    	
300,000
    	
 
    	
515,000
    	
 
    	
815,000
    	
 
    	
450,000
    	
 
    	
(99,463
    	
)
    	
1,165,537
    	
 
    
	
11
    	
 
    	
OTTAWA   PRINCESS
    	
 
    	
C
    	
 
    	
EL
    	
 
    	
2/20/2011
    	
 
    	
8/2/2011
    	
 
    	
9/6/2011
    	
 
    	
35
    	
 
    	
8/20/13
    	
 
    	
23
    	
 
    	
200,000
    	
 
    	
2.00
    	
 
    	
400,000
    	
 
    	
631,750
    	
 
    	
1,031,750
    	
 
    	
400,000
    	
 
    	
(112,574
    	
)
    	
1,319,176
    	
 
    
	
12
    	
 
    	
CARIBE   MAIDEN
    	
 
    	
B
    	
 
    	
MCW
    	
 
    	
11/11/2011
    	
 
    	
8/11/2011
    	
 
    	
9/10/2011
    	
 
    	
30
    	
 
    	
9/11/13
    	
 
    	
24
    	
 
    	
80,000
    	
 
    	
2.00
    	
 
    	
160,000
    	
 
    	
484,500
    	
 
    	
644,500
    	
 
    	
464,000
    	
 
    	
(87,158
    	
)
    	
1,021,342
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Quarter - Sub Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
115
    	
 
    	
 
    	
 
    	
105
    	
 
    	
480,000
    	
 
    	
2.00
    	
 
    	
960,000
    	
 
    	
2,239,750
    	
 
    	
3,199,750
    	
 
    	
1,714,000
    	
 
    	
(386,352
    	
)
    	
4,527,398
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
13
    	
 
    	
HOPI   PRINCESS
    	
 
    	
D
    	
 
    	
MCW
    	
 
    	
10/15/2011
    	
 
    	
10/15/2011
    	
 
    	
11/4/2011
    	
 
    	
20
    	
 
    	
7/15/13
    	
 
    	
20
    	
 
    	
125,000
    	
 
    	
2.00
    	
 
    	
250,000
    	
 
    	
636,500
    	
 
    	
886,500
    	
 
    	
435,000
    	
 
    	
(103,905
    	
)
    	
1,217,595
    	
 
    
	
14
    	
 
    	
MAORI   MAIDEN
    	
 
    	
D
    	
 
    	
CAO
    	
 
    	
1/24/2012
    	
 
    	
10/24/2011
    	
 
    	
11/18/2011
    	
 
    	
25
    	
 
    	
4/24/14
    	
 
    	
29
    	
 
    	
50000
    	
 
    	
2.00
    	
 
    	
100,000
    	
 
    	
631,750
    	
 
    	
731,750
    	
 
    	
425,000
    	
 
    	
(90,951
    	
)
    	
1,065,799
    	
 
    
	
15
    	
 
    	
MANHATTAN   PRINCESS
    	
 
    	
B
    	
 
    	
MCW
    	
 
    	
12/30/2011
    	
 
    	
10/1/2011
    	
 
    	
11/6/2011
    	
 
    	
36
    	
 
    	
10/1/14
    	
 
    	
35
    	
 
    	
225,000
    	
 
    	
2.00
    	
 
    	
450,000
    	
 
    	
498,750
    	
 
    	
948,750
    	
 
    	
463,000
    	
 
    	
(111,001
    	
)
    	
1,300,749
    	
 
    
	
16
    	
 
    	
NANTICOKE   BELLE
    	
 
    	
B
    	
 
    	
JC
    	
 
    	
2/11/2012
    	
 
    	
11/1/2011
    	
 
    	
11/28/2011
    	
 
    	
27
    	
 
    	
1/20/14
    	
 
    	
26
    	
 
    	
50,000
    	
 
    	
2.00
    	
 
    	
100,000
    	
 
    	
427,500
    	
 
    	
527,500
    	
 
    	
478,000
    	
 
    	
(79,059
    	
)
    	
926,441
    	
 
    
	
17
    	
 
    	
SEMINOLE   PRINCESS
    	
 
    	
A
    	
 
    	
DG
    	
 
    	
1/30/2012
    	
 
    	
10/30/2011
    	
 
    	
11/19/2011
    	
 
    	
20
    	
 
    	
11/19/14
    	
 
    	
36
    	
 
    	
20,000
    	
 
    	
2.00
    	
 
    	
40,000
    	
 
    	
580,000
    	
 
    	
620,000
    	
 
    	
450,000
    	
 
    	
(84,131
    	
)
    	
985,869
    	
 
    
	
18
    	
 
    	
TAYRONA   PRINCESS
    	
 
    	
D
    	
 
    	
TW
    	
 
    	
3/25/2012
    	
 
    	
11/25/2011
    	
 
    	
12/25/2011
    	
 
    	
30
    	
 
    	
3/1/14
    	
 
    	
26
    	
 
    	
130,000
    	
 
    	
2.00
    	
 
    	
260,000
    	
 
    	
612,750
    	
 
    	
872,750
    	
 
    	
405,000
    	
 
    	
(100,465
    	
)
    	
1,177,285
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Quarter - Sub Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
158
    	
 
    	
 
    	
 
    	
172
    	
 
    	
600,000
    	
 
    	
2.00
    	
 
    	
1,200,000
    	
 
    	
3,387,250
    	
 
    	
4,587,250
    	
 
    	
2,656,000
    	
 
    	
(569,513
    	
)
    	
6,673,737
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grand Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
499
    	
 
    	
 
    	
 
    	
511
    	
 
    	
2,070,000
    	
 
    	
2.00
    	
 
    	
4,138,500
    	
 
    	
9,622,500
    	
 
    	
13,761,000
    	
 
    	
7,867,100
    	
 
    	
(1,710,000
    	
)
    	
19,918,100
    	
 
    

 

Fleet A = Ajoy, Fleet B = Tarun, Fleet C = PK and Fleet D = CalvernEX-10.4

 

FOURTH 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

AND

TBS HOLDINGS LIMITED

 

as Guarantors,

 

TBS INTERNATIONAL PUBLIC LIMITED COMPANY

as Parent Guarantor

 

and

 

 AIG COMMERCIAL EQUIPMENT FINANCE, INC.,

 

as Lender

 

 

January 27, 2011

 

 

FOURTH AMENDMENT TO LOAN AGREEMENT

 

THIS FOURTH AMENDMENT TO LOAN AGREEMENT (this “Fourth Amendment”) is made and entered into this 27th day of January, 2011, 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”), TBS International public limited Company, an Irish public limited company (“Parent Guarantor”) and AIG Commercial Equipment Finance, Inc., a Delaware corporation (together with its successors and assigns, “Lender”). Unless specifically defined in this Fourth Amendment, capitalized terms not used in this Fourth 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, the Second Amendment, the Third Amendment, this Fourth Amendment and any future amendments, the “Loan Agreement”); and

 

WHEREAS, Borrowers delivered the Notes to evidence the 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 US$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 (collectively, the “Addenda”); and

 

WHEREAS, the Original Loan Agreement was further amended by that certain Second Amendment to Loan Agreement dated as of December 30, 2009 (the “Second Amendment”).  In connection with the Second Amendment, each of the Original Notes, as amended by the Addenda, was further amended by a Second Addendum dated as of December 30, 2009 (collectively, the “Second Addenda”); and

 

WHEREAS, the Original Loan Agreement was further amended by that certain Third Amendment to Loan Agreement dated as of April 22, 2010 (the “Third Amendment,” together with the First Amendment and the Second Amendment, the “Prior Amendments”); 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 to a fixed rate of 10.00%, subject to increase following default, (ii) a change in the payment terms and maturity date of the Notes, and the addition of supplemental principal prepayments as herein provided, and (iii) a modification of the financial covenants under Section 6.10 the Loan Agreement, to (a) delete the minimum tangible net worth requirement and Fixed Charge Coverage Ratio, (b) to revise the liquidity covenant, (c) to revise the Consolidated Leverage Ratio, and (d) to revise the Consolidated Interest Coverage Ratio;  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 one or more Prior Amendments, are amended and restated in their entirety as follows, effective as of the date of this Fourth Amendment:

 

“BofA Credit Agreement” means the Second Amended and Restated Credit Agreement by and among Parent Guarantor, various Subsidiaries and BofA as Administrative Agent, as the same may be amended, refinanced and replaced from time to time.

 

“Interest Rate” means, for each Loan, a rate equal to ten percent (10.00%) per annum.  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.

 

“Consolidated EBITDA” means, at any date of determination, an amount equal to Consolidated Net Income of Parent Guarantor and its Subsidiaries on a consolidated basis for the most recently completed Measurement Period, plus (a) the following to the extent deducted in calculating such Consolidated Net Income (and without duplication): (i) Consolidated Interest Charges, (ii) the provision for Federal, state, local and foreign income taxes payable, (iii) depreciation and amortization expense, (iv) net losses from the sales of vessels as permitted under this Agreement, (v) any noncash impairment charges incurred during any fiscal year of Parent Guarantor and its Subsidiaries in respect of any of Parent Guarantor’s or its Subsidiaries’ goodwill and vessels (in each case of or by Parent Guarantor and its Subsidiaries for such Measurement Period), (vi) any noncash compensation in the form of Equity Interests or other equity awards made to employees of Parent Guarantor and its Subsidiaries in any fiscal year of Holdings (as defined in the Existing Version of the BofA Credit Agreement) and its Subsidiaries in an aggregate amount not to exceed $10,000,000 in each such fiscal year, and (vii) any losses attributable to the GAT Joint Venture, the Jamaican

 

2

 

Mine Joint Venture, the LOG.STAR Joint Venture, the Panamerican Joint Venture, or the ST Logistics Joint Venture (as each such term is defined in the Existing Version of the BofA Credit Agreement), and minus (b) the following to the extent included in calculating such Consolidated Net Income: (i) all net gains from the sales of vessels as permitted under this Agreement and (ii) any income or gains attributable to the GAT Joint Venture, the Jamaican Mine Joint Venture, the LOG.STAR Joint Venture, the Panamerican Joint Venture, or the ST Logistics Joint Venture (in each case of or by Parent Guarantor and its Subsidiaries for such Measurement Period); provided that, to the extent characterized as interest on the income statements of Parent Guarantor and its Subsidiaries for such Measurement Period pursuant to FASB Interpretation No. 133 - Accounting for Derivative Instruments and Hedging Activities (June 1998), noncash adjustments in connection with any interest rate Swap Contract (as defined in the Existing Version of the BofA Credit Agreement) entered into by Parent Guarantor or any of its Subsidiaries, shall be excluded.

 

“Consolidated Interest Charges” means, for any Measurement Period, the sum of (a) all interest, premium payments, debt discount, fees, charges and related expenses in connection with borrowed money (including capitalized interest but excluding capitalized interest on (x) Permitted New Vessel Construction Indebtedness and (y) PIK Interest (as defined in the Existing Version of the BofA Credit Agreement)) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, (b) all interest paid or payable with respect to discontinued operations and (c) the portion of rent expense under Capitalized Leases that is treated as interest in accordance with GAAP, in each case, of or by Parent Guarantor and its Subsidiaries on a consolidated basis for the most recently completed Measurement Period; provided  that, to the extent characterized as interest on the income statements of Parent Guarantor and its Subsidiaries for such Measurement Period pursuant to FASB Interpretation No. 133 — Accounting for Derivative Instruments and Hedging Activities (June 1998), noncash adjustments in connection with any interest rate swap contract entered into by Parent Guarantor or any of its Subsidiaries, shall be excluded; provided further that, solely for purposes of calculating Consolidated Interest Charges pursuant to part (b) of the definition of Consolidated Interest Coverage Ratio, non-cash charges associated with the write-off of deferred financing charges and expenses, incurred in connection with the transactions contemplated by the TBS Shipping — Global Bank Restructuring Proposal referred to in Section 4.01 (a) (a) of the Existing Version of the BofA Credit Agreement, in an aggregate amount not to exceed $6,500,000 shall be excluded from the calculation of Consolidated Interest Charges.

 

The definition of “Qualified Cash” contained in the Original Loan Agreement is hereby amended to exclude, as part of the Qualified Cash, any cash or cash equivalent items also excluded from the definition of “Qualified Cash” contained in the Existing Version of the BofA Credit Agreement, such as, without limitation, cash in the Special

 

3

 

Account, cash required to be held against equity commitments on the new vessel construction program, and cash pledged to support letters of credit.

 

The following new definitions are added to the Loan Agreement:

 

“Excess Cash” means, at the applicable time of measurement, the aggregate amount of cash and Cash Equivalents (as defined in the Existing Version of the BofA Credit Agreement) of Holdings (as defined in the Existing Version of the BofA Credit Agreement) and its Subsidiaries (other than (x) cash in the Special Account, (y) any amounts reserved for equity portion of construction advances under the RBS Credit Facility (as defined in the Existing Version of the BofA Credit Agreement), and (z) any cash pledged to support letters of credit) at such time minus the sum of (i) Permitted Rollover Capital Expenditures (as defined in the Existing Version of the BofA Credit Agreement), (ii) insurance proceeds held for vessel repairs, (iii) an amount equal to the funds transferred from the Special Account in such period to effect a cure of minimum liquidity pursuant to Section 6.10 (b), but only to the extent such amount, at the applicable time of measurement, (A) is available to be re-deposited into the Special Account pursuant to Section 2.16(b)(ii) of the Existing Version of the BofA Credit Agreement and (B) has not been re-deposited to the Special Account, (iv) Net Cash Proceeds (as defined in the Existing Version of the BofA Credit Agreement) from any sale of encumbered assets outside of the ordinary course of business to the extent used or anticipated to be used within 30 days of such time of measurement to repay any Indebtedness (as defined in the Existing Version of the BofA Credit Agreement) that is secured by such assets, and (v) $30,000,000, plus (x) the amount of any increase in net working capital since December 31, 2010 (in the case of the measurement at December 31, 2011) or December 31, 2011 (in the case of each subsequent time of measurement) that exceeds $4,000,000, and minus (y) the amount of any decrease in net working capital since December 31, 2010 that exceeds $4,000,000.

 

“Existing Version of the BofA Credit Agreement” means the BofA Credit Agreement in effect on the date of the Fourth Amendment to Loan Agreement dated as of January           , 2011, without taking into account any subsequent amendments thereto or any waivers thereof unless expressly approved by Lender in writing.

 

“Special Account” means each ‘Special Account’ established under the Existing Version of the BofA Credit Agreement.

 

2.   Section 2.03 of the Original Loan Agreement, as previously amended by one or more Prior Amendments, is amended and restated in its entirety 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

 

4

 

Agreement (as defined in the Fourth Amendment to Loan Agreement dated as of January       , 2011) 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 30, 2009 as Schedule 2.03A2, and further amended by a Third Addendum, in the form attached to the Fourth Amendment to Loan Agreement dated as of January      , 2011 as Schedule 2.03A3 (collectively, the “Third Addenda”).  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 and Second Addendum, as such Note, First Addendum and Second Addendum are further amended by the applicable Third Addendum.  Each Note provides for a default rate of interest.”

 

3.   A new section 2.08.1 is added to the Loan Agreement:

 

Section 2.08.1   Excess Cash Payments.    Beginning with the semi-annual period ending December 31, 2011, the Borrowers shall repay the Loans in an amount equal to 6.15% of Excess Cash, calculated semi-annually, (A) within 60 days after the end of each calendar year and (B) within 45 days after the end of each other semi-annual period (such payments, the “Excess Cash Payments”).  The Excess Cash Payments will be applied to each Note on a pari passu basis, based on the principal balance of each Note and the balance of all Notes on the date of the receipt of such payments. Excess Cash Payments shall be applied to the remaining principal installment payments of each Note in the inverse order of maturity.

 

4.     Section 5.01(e) is reassigned the new section number of 5.01(f), and the following new Section 5.01(e) is added to the Loan Agreement:

 

(e) as soon as available, but in any event no later than Wednesday of each week, (i) a rolling 13-week forecast of cash flows of Holdings (as defined in the Existing Version of the BofA Credit Agreement) and its Subsidiaries on a consolidated basis (the “Cash Flow Forecast”) which shall include (A) a rolling comparative analysis of the actual cash flow for the prior week against the forecast for such week, (B) an explanation for any significant variances between such results and the forecast and (C) a calculation of Qualified Cash evidencing compliance with the minimum cash liquidity covenant contained in Section 6.10(b), and (ii) evidence of the current available balance of the Special Account as of such date; in each case, which shall be in form and detail satisfactory to the Lender.

 

5.   Section 6.10 of the Original Loan Agreement, as previously amended by the Prior Amendments, is further amended and restated in its entirety to read as follows:

 

5

 

“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. If the operating leases for the vessels “Laguna Belle” and “Seminole Maiden” are converted to debt, such Indebtedness will be treated for all purposes of calculation of the following ratios as if such Indebtedness remained as an operating lease. Similarly, the same rule will apply in the event that changes in GAAP require treatment of other operating leases as debt:

 

(a)          Reserved.

 

(b)         Minimum Cash Liquidity.  Permit the aggregate daily closing balance of Qualified Cash of Holdings (as defined in the Existing Version of the BofA Credit Agreement) and their Subsidiaries to be less than $15,000,000 on average in any calendar week. Such balance shall be reported weekly in the Cash Flow Forecast, of which a minimum average balance of $5,125,000 in any such week must be deposited with Bank of America, N.A.  In the event Qualified Cash falls below $15,000,000 on average in any week, Holdings and the Borrowers may cure the resulting default by withdrawing an amount sufficient to eliminate such deficiency from the Special Account no later than two Business Days after the required delivery of the applicable Cash Flow Forecast; provided, however, that the applicable cure period shall be extended by two Business Days if an Additional Capital Infusion (as defined in the Existing Version of the BofA Credit Agreement) is required and in process to cure such minimum liquidity shortfall. From and after January 6, 2011, following the payment by Holdings (as defined in the Existing Version of the BofA Credit Agreement) or any of its Subsidiaries of any installment of closing, amendment or similar fees and expenses, including, without limitation, financing fees, commitment fees and professional and legal fees, to the Lenders (as defined in the Existing Version of the BofA Credit Agreement) or the lenders under any other Indebtedness permitted under the Existing Version of the BofA Credit Agreement in connection with the restructuring pursuant to which the Fourth Amendment to Loan Agreement dated as of January          , 2011 has been executed, the minimum amount of Qualified Cash required to be maintained hereunder shall be reduced by the amount of each such installment for the week in which such installment is paid and the three weeks immediately following such payment. If, on any measurement date after January 31, 2011, liquidity is $17,500,000 or less, Holdings (as defined in the Existing Version of the BofA Credit Agreement) will promptly conduct an update call to Lender to discuss liquidity issues.

 

(c)          Maximum Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the end of any fiscal quarter set forth below for the four consecutive fiscal quarter period then ending of Parent

 

6

 

Guarantor and its Subsidiaries to be greater than the ratio set forth below opposite such time period:

 

	
Four Consecutive Fiscal
   Quarters Ending:
    	
 
    	
Maximum Consolidated
   Leverage Ratio:
    	
 
    
	
December 31, 2010 - December 31, 2011
    	
 
    	
4.00   to 1.00
    	
 
    
	
March 31, 2012 –  December 31, 2012
    	
 
    	
3.65   to 1.00
    	
 
    
	
March 31, 2013 –  June 30, 2013
    	
 
    	
3.20   to 1.00
    	
 
    
	
September 30, 2013 - December 31, 2013
    	
 
    	
2.75   to 1.00
    	
 
    
	
March 31, 2014 and thereafter
    	
 
    	
2.50   to 1.00
    	
 
    

 

(d)         Reserved.

 

(e)          Minimum Consolidated Interest  Coverage Ratio.  Permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter set forth below for the four consecutive fiscal quarter period then ending of Parent Guarantor and its Subsidiaries to be less than the ratio set forth below opposite such time period:

 

	
Four Consecutive Fiscal
   Quarters Ending:
    	
 
    	
Minimum Consolidated Interest
   Coverage Ratio:
    	
 
    
	
December 31, 2010 - December 31, 2011
    	
 
    	
3.35   to 1.00
    	
 
    
	
March 31, 2012 –  December 31, 2012
    	
 
    	
3.70   to 1.00
    	
 
    
	
March 31, 2013 –  June 30, 2013
    	
 
    	
4.30   to 1.00
    	
 
    
	
September 30, 2013 - December 31, 2013
    	
 
    	
4.75   to 1.00
    	
 
    
	
March 31, 2014 and thereafter
    	
 
    	
5.20   to 1.00
    	
 
    

 

6.             A new Section 5.13 is added to the Loan Agreement:

 

Section 5.13   Funding of Final Capital Infusion to Parent Guarantor. Borrowers shall cause the Final Capital Infusion (as defined in the Existing Version of the BofA Credit Agreement) to be funded to Parent Guarantor on or before the Equity Outside Date (as defined in the Existing Version of the BofA Credit Agreement).

 

7

 

7.     A new Section 6.11 is added to the Loan Agreement:

 

Section 6.11         Capital Expenditures. Each of the Loan Parties and each of the Borrowers (as defined in the Existing Version of the BofA Credit Agreement) shall not, nor shall they permit any Subsidiary to, directly or indirectly make or become legally obligated to make any Capital Expenditures (as defined in the Existing Version of the BofA Credit Agreement), except Capital Expenditures for completion of vessels constructed in connection with the RBS Credit Facility (as defined in the Existing Version of the BofA Credit Agreement) and Capital Expenditures in the ordinary course of business necessary to maintain the vessels of such Loan Party, such Borrower (as defined in the Existing Version of the BofA Credit Agreement) or such Subsidiary.  Nothing in this Section 6.11 shall impair in any way the provisions of Section 6.09 of this Agreement.

 

8.     The agreement of Lender to enter into this Fourth 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 Third Addenda to the Notes;

 

(b)         such amendments of the Ship Mortgages of the Vessels as may be required by Panamanian counsel to fully secure the Notes, and to reflect the modifications to the Notes and the Loan Agreement from the date of the original recordation of such mortgages (the “Mortgage Amendment(s)”);

 

(c)          opinions of counsel of Borrowers and Guarantors with respect to this Fourth Amendment, the Mortgage Amendment(s) and the Third Addenda to the Notes;

 

(d)         opinions of counsel in Panama with respect to the continuing first lien and priority of the Ship Mortgages on the Vessels;

 

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

 

(f)            copies of the appropriate resolutions and consents of Borrowers and each Guarantor approving this Fourth Amendment and related Loan Documents, certified by the Secretary (or other appropriate official) of such party as being a true and correct copy thereof;

 

8

 

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

 

(h)         the continuing compliance by Borrowers and Guarantors of their obligations under the Loan Agreement as modified by the Prior Amendments and this Fourth Amendment;

 

(i)             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;

 

(j)             evidence satisfactory to Lender that all factual matters included in the conditions precedent to the effectiveness of the BofA Credit Agreement, including without limitation the capital infusions specified in Section 4.01 of the BofA Credit Agreement, have been satisfied to Lender’s reasonable satisfaction;

 

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

 

Lender’s waiver of any condition with respect to this Fourth 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.

 

9.     Borrowers agree to pay all costs and expenses in connection with the execution and recordation of this Fourth 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 Fourth 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.

 

10.   This Fourth Amendment may be executed separately by the Borrowers, Guarantors 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.

 

11.   THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS FOURTH AMENDMENT AND THE LOAN DOCUMENTS EXECUTED IN CONNECTION THEREWITH SHALL UNLESS OTHERWISE PROVIDED THEREIN IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE

 

9

 

WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

 

12.   Borrowers, TBSIL Guarantor, Parent Guarantor, Sherwood and Bermuda Holdco, by executing this Fourth Amendment, to which they each consent, hereby confirm and acknowledge 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, Parent 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 Fourth 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.

 

10

 

13.   Lender agrees, subject to and upon the terms and conditions of this Fourth Amendment, to waive the Specified Events of Default (as defined in the Forbearance Agreement) and all rights and remedies of the Lender arising therefrom. For purposes of the preceding sentence “Forbearance Agreement” shall mean that certain Letter Agreement dated as of September 30, 2010, as amended as of November 12, 2010 and December 22, 2010 by and between Parent Guarantor and Lender.

 

14.   The language added at the end of Section 2.07 of the Loan Agreement pursuant to paragraph 5 of the Third Amendment is hereby deleted in its entirety.

 

{signature page follows}

 

11

 

	
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]

 

12

 

	
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
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PARENT   GUARANTOR:
    	
 
    	
 
    
	
PRESENT   WHEN THE COMMON SEAL OF
    	
 
    	
 
    
	
TBS   INTERNATIONAL PUBLIC LIMITED COMPANY,
    	
 
    	
 
    
	
an   Irish public limited company, was affixed hereto
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/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
    	
 
    	
 
    

 

13

 

SCHEDULE 2.03A3

 

Form of Third Addendum

THIRD ADDENDUM TO PROMISSORY NOTE

 

This Third Addendum to Promissory Note (this “Third Addendum”) is made as of January    , 2011 with respect to the Promissory Note dated February 29, 2008 by [] in the original stated principal amount of $[],000,000.00 (the “Original Note”), as previously amended by an Allonge dated as of February 29, 2008 (the “Allonge”), an Addendum to Promissory Note dated as of March 27, 2009 (the “First Addendum”) and a Second Addendum to Promissory Note dated as of December 30, 2009 (the “Second Addendum”) (the Original Note, as amended by the Allonge, the First Addendum, the Second Addendum and this Third Addendum, the “Note”) to the order of AIG COMMERCIAL EQUIPMENT FINANCE, INC.

 

The undersigned acknowledges that the principal balance of the Note, excluding any fees, charges, interest, or expenses for which the undersigned may be responsible in connection therewith, is $[].

 

The last two sentences of the first paragraph on Page 1 of the Note, as previously amended in the First Addendum and Second Addendum, are further amended and restated in their entirety to read as follows:

 

“From and after October 12, 2010 through and including January    , 2011, interest accrued on this Note at the Default Rate, which was twelve percent (12.00%) per annum. From and after January    , 2011, the Interest Rate on this Note (the “Interest Rate”) shall be ten percent (10.00%) per annum.  Payee shall have the right to prospectively increase the interest rate hereunder following an Event of Default to the Default Rate, as provided below.”

 

The second paragraph of the first page of the Note is amended and restated in its entirety to read as follows:

 

“The undersigned will make an interest only payment on April 1, 2011, in the amount of all accrued but unpaid interest under this Note on that date. Commencing on July 1, 2011, and on October 1, 2011 and January 1, 2012, the undersigned will make quarterly principal payments of $[].00 each together with accrued interest.  On April 1, 2012, July 1, 2012, October 1, 2012 and January 1, 2013, the undersigned will make quarterly principal payments of $[].00 each together with accrued interest.  On April 1, 2013, July 1, 2013, October 1, 2013, January 1, 2014 and April 1, 2014, the undersigned will make quarterly principal payments of $[].00 each together with accrued interest. A final payment of all remaining principal, interest and other amounts due hereunder and under the Loan Documents (as defined in the Loan Agreement) will be payable on July 1, 2014, the Maturity Date. Interest hereunder shall accrue on the unpaid balance of this Note from the date of this Note until paid in full, at the Interest Rate (subject to Payee’s right to prospectively increase the interest rate to the Default Rate following an Event of Default).  Interest shall be payable in arrears on the dates provided above, and upon prepayment in part of the unpaid principal balance of this Note (with respect to the amount so prepaid) and upon

 

14

 

payment (including prepayment) in full of the unpaid principal balance of this Note.  All payments received by Payee shall be applied first to interest and then to principal.  In addition to the foregoing payments, the undersigned will also make all additional principal payments (the “Excess Cash Payments”) required under the Fourth Amendment to Loan Agreement dated of even date herewith, by and among the undersigned, its co-borrowers and guarantors and Payee.”

 

The third paragraph of the first page of the Note is amended and restated in its entirety to read as follows:

 

“All payments hereunder shall be made in lawful money of the United States and in immediately available funds.  If any installment of this Note is not paid within ten (10) days after its due date, the undersigned agrees to pay on demand, in addition to the amount of such installment, an amount equal to the lesser of (i) five percent (5%) of such installment or (ii) the maximum late charge permitted by Applicable Law.  In addition, following an Event of Default, Payee shall be entitled to increase the interest rate hereunder to the lesser of (a) the Interest Rate plus 2.0%, or (b) the maximum rate of interest permitted by Applicable Law (the “Default Rate”).”

 

The final paragraph of the first page of the Note, which is continued and completed on the second page of the Note, as previously amended, is further amended and restated in its entirety 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) 2% of the amount of the principal prepayment, if prepayment is made before May 15, 2011, or (b) 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.  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. The limitations on the amount of prepayment, and the assessment of a Prepayment Fee, shall not apply to Excess Cash Payments due under the Loan Agreement.”

 

15

 

The sixth paragraph of the Note, as previously amended, is further amended and restated in its entirety to read as follows:

 

“Upon the maturity of this Note or the acceleration of the maturity of this Note in accordance with the terms of the Agreement, the entire unpaid principal amount on this Note, together with all interest, fees and other amounts payable hereon or in connection herewith, shall be immediately due and payable without further notice or demand, with interest on all such amounts at the Default Rate, from the date of such maturity or acceleration, as the case may be, until all such amounts have been paid in full.”

 

	
 
    	
 
    	
[ ]
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
Attorney   in Fact
    
	
ACCEPTED   BY LENDER:
    	
 
    	
 
    	
 
    
	
AIG   COMMERCIAL EQUIPMENT FINANCE, INC.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
 
    

 

16

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