Document:

ex_10-24.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.24

     

     

     

    

      Date    11 January
2010

      

      

      

      

      TBS
INTERNATIONAL PUBLIC LIMITED COMPANY

      as
Guarantor

      

      

      

      - and
-

      

      

      

      

      COMMERZBANK
AG

      as
Lender

      

      

      

      ________________________________________________

      

      GUARANTEE

      ________________________________________________

      

      relating
to a Loan Agreement

      dated 28
May 2008

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDEX

      

      

       

      

        
          	
                  Clause

                	 
      	
                  Page

                
	 
      	 
      	 
      
	
                  
1

                	
                  
INTERPRETATION

                	
                  
1

                
	
                  
2

                	
                  
GUARANTEE

                	
                  
1

                
	
                  
3

                	
                  
LIABILITY AS PRINCIPAL AND INDEPENDENT
      DEBTOR

                	
                  
2

                
	
                  
4

                	
                  
EXPENSES

                	
                  
2

                
	
                  
5

                	
                  
ADJUSTMENT OF
    TRANSACTIONS

                	
                  
2

                
	
                  
6

                	
                  
PAYMENTS

                	
                  
3

                
	
                  
7

                	
                  
INTEREST

                	
                  
3

                
	
                  
8

                	
                  
SUBORDINATION

                	
                  
3

                
	
                  
9

                	
                  
ENFORCEMENT

                	
                  
4

                
	
                  
10

                	
                  
REPRESENTATIONS AND
      WARRANTIES

                	
                  
4

                
	
                  
11

                	
                  
UNDERTAKINGS

                	
                  
5

                
	
                  
12

                	
                  
JUDGMENTS AND CURRENCY
      INDEMNITY

                	
                  
7

                
	
                  
13

                	
                  
SET-OFF

                	
                  
7

                
	
                  
14

                	
                  
SUPPLEMENTAL

                	
                  
7

                
	
                  
15

                	
                  
ASSIGNMENT

                	
                  
8

                
	
                  
16

                	
                  
NOTICES

                	
                  
8

                
	
                  
17

                	
                  
INVALIDITY OF LOAN
      AGREEMENT

                	
                  
9

                
	
                  
18

                	
                  
GOVERNING LAW AND
      JURISDICTION

                	
                  
9

                
	 
      	
                  
EXECUTION PAGE

                	
                  
11

                

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      THIS GUARANTEE is made
on 11  January 2010

      

      BETWEEN

      

      
        	
                (1)  

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

              

      

       

      
        	
                (2)  

              	
                COMMERZBANK AG, acting
      through its branch of 7-9 Ness, D-20457, Hamburg, Germany, (the “Lender”, which
      expression includes its successors and
assigns).

              

      

       

      BACKGROUND

      

      
        	
                (A)  

              	
                By
      a loan agreement dated 28 May 2008 (as supplemented from time to time) and
      made between (i) Dyker Maritime Corp. as borrower and (ii) the Lender, it
      was agreed that the Lender would make available to the Borrower a term
      loan facility of up to
US$12,500,000.

              

      

       

      
        	
                (B)  

              	
                By
      a supplemental agreement dated 8 January 2010 made between the
      Borrower, TBS International Limited, TBS Shipping Services Inc. and the
      Lender, the Loan was further amended and
  supplemented.

              

      

       

      
        	
                (C)  

              	
                The
      execution and delivery to the Lender of this Guarantee is one of the
      conditions precedent to the continued availability of the term loan
      facility under the said Loan
Agreement.

              

      

       

      IT IS AGREED as
follows:

      

      
        	
                1  

              	
                INTERPRETATION

              

      

       

      
        	
                1.1  

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

              

      

       

      
        	
                1.2  

              	
                Construction of certain
      terms.  In this
Guarantee:

              

      

       

      “bankruptcy”  includes
a liquidation, receivership or administration and any form of suspension of
payments, arrangement with creditors or reorganisation under any corporate or
insolvency law of any country;

      

      “Loan Agreement” means the loan
agreement referred to in Recital (A) as amended by the Supplemental Agreement
and includes any existing or future amendments or supplements, whether made with
the Guarantor's consent or otherwise; and

      

      “Supplemental Agreement” means
the supplemental agreement to the Loan Agreement referred to in Recital
(B).

      

      
        	
                1.3  

              	
                Application of construction and
      interpretation provisions of Loan Agreement.  Clauses 1.2
      and 1.5 of the Loan Agreement apply, with any necessary modifications, to
      this Guarantee.

              

      

       

      
        	
                2  

              	
                GUARANTEE

              

      

       

      
        	
                2.1  

              	
                Guarantee and
      indemnity.  The Guarantor unconditionally and
      irrevocably:

              

      

       

      
        	
                (a)  

              	
                guarantees
      the due payment of all amounts payable by the Borrower under or in
      connection with the Loan Agreement and every other Finance
      Document;

              

      

       

      
        	
                (b)  

              	
                undertakes
      to pay to the Lender, on the Lender's demand, any such amount which is not
      paid by the Borrower when due and payable;
and

              

      

       

      
        	
                (c)  

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

              

      

       

      
        	
                2.2  

              	
                No limit on number of
      demands.  The Lender may serve more than one demand under
      Clause 2.1.

              

      

       

      
        	
                3  

              	
                LIABILITY
      AS PRINCIPAL AND INDEPENDENT DEBTOR

              

      

       

      
        	
                3.1  

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

              

      

       

      
        	
                3.2  

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

              

      

       

      
        	
                (a)  

              	
                any
      amendment or supplement being made to the Finance
    Documents;

              

      

       

      
        	
                (b)  

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

              

      

       

      
        	
                (c)  

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

              

      

       

      
        	
                (d)  

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

              

      

       

      
        	
                (e)  

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

              

      

       

      
        	
                4  

              	
                EXPENSES

              

      

       

      
        	
                4.1  

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

              

      

       

      
        	
                4.2  

              	
                Fees and expenses payable under
      Loan Agreement.  Clause 4.1 is without prejudice to the
      Guarantor's liabilities in respect of the Borrower’s obligations under
      clause 19 of the Loan Agreement (fees and expenses) and under similar
      provisions of other Finance
Documents.

              

      

       

      
        	
                5  

              	
                ADJUSTMENT
      OF TRANSACTIONS

              

      

       

      
        	
                5.1  

              	
                Reinstatement of obligation to
      pay.  The Guarantor shall pay to the Lender on its demand
      any amount which the Lender is required, or agrees, to pay pursuant to any
      claim by, or settlement with, a trustee in bankruptcy of the Borrower or
      of another Security Party (or similar person) on the ground that the Loan
      Agreement or a payment by the Borrower or of another Security Party, was
      invalid or on any similar ground.

              

      

       

      
        	
                6  

              	
                PAYMENTS

              

      

       

      
        	
                6.1  

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

              

      

       

      
        	
                (a)  

              	
                in
      immediately available funds;

              

      

       

      
        	
                (b)  

              	
                to
      such account as the Lender may from time to time notify to the
      Guarantor;

              

      

       

      
        	
                (c)  

              	
                without
      any form of set-off, cross-claim or condition;
  and

              

      

       

      
        	
                (d)  

              	
                free
      and clear of any tax deduction except a tax deduction which the Guarantor
      is required by law to make.

              

      

       

      
        	
                6.2  

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

              

      

       

      
        	
                6.3  

              	
                Tax
      Credit.  The provisions of Clause 21.4 of the Loan
      Agreement shall apply to this Guarantee and in relation to any increased
      payment made by the Guarantor under Clause 6.2 as if the same were set out
      in full herein with the necessary
changes.

              

      

       

      
        	
                7  

              	
                INTEREST

              

      

       

      
        	
                7.1  

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

              

      

       

      
        	
                7.2  

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

              

      

       

      
        	
                7.3  

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

              

      

       

      
        	
                8  

              	
                SUBORDINATION

              

      

       

      
        	
                8.1  

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

              

      

       

      
        	
                (a)  

              	
                claim,
      or in a bankruptcy of the Borrower or any other Security Party prove for,
      any amount payable to the Guarantor by the Borrower or any other Security
      Party, whether in respect of this Guarantee or any other
      transaction;

              

      

       

      
        	
                (b)  

              	
                take
      or enforce any Security Interest for any such
  amount;

              

      

       

      
        	
                (c)  

              	
                claim
      to set-off any such amount against any amount payable by the Guarantor to
      the Borrower or any other Security Party;
or

              

      

       

      
        	
                (d)  

              	
                claim
      any subrogation or other right in respect of any Finance Document or any
      sum received or recovered by the Lender under a Finance
      Document.

              

      

       

      
        	
                9  

              	
                ENFORCEMENT

              

      

       

      
        	
                9.1  

              	
                No requirement to commence
      proceedings against the Borrower.  The Lender will not
      need to commence any proceedings under, or enforce any Security Interest
      created by, the Loan Agreement or any other Finance Document before
      claiming or commencing proceedings under this
  Guarantee.

              

      

       

      
        	
                9.2  

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

              

      

       

      
        	
                (a)  

              	
                any
      judgment or order of a court in England or the Marshall Islands in
      connection with the Loan Agreement;
and

              

      

       

      
        	
                (b)  

              	
                any
      statement or admission of the Borrower in connection with the Loan
      Agreement,

              

      

       

      
        	
                 
      

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

              

      

      

      
        	
                9.3  

              	
                Suspense
      account.  The Lender may, for the purpose of claiming or
      proving in a bankruptcy of the Borrower or any other Security Party, place
      any sum received or recovered under or by virtue of this Guarantee on a
      separate suspense or other interest bearing nominal account without
      applying it in satisfaction of the Borrower’s obligations under the Loan
      Agreement.

              

      

       

      
        	
                10  

              	
                REPRESENTATIONS
      AND WARRANTIES

              

      

       

      
        	
                10.1  

              	
                General.  The
      Guarantor represents and warrants to the Lender as
  follows.

              

      

       

      
        	
                10.2  

              	
                Status.  The
      Guarantor is duly incorporated and validly existing under the laws of the
      Republic of Ireland.

              

      

       

      
        	
                10.3  

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

              

      

       

      
        	
                (a)  

              	
                to
      execute this Guarantee; and

              

      

       

      
        	
                (b)  

              	
                to
      make all the payments contemplated by, and to comply with, this
      Guarantee.

              

      

       

      
        	
                10.4  

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

              

      

       

      
        	
                10.5  

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

              

      

       

      
        	
                10.6  

              	
                No
      conflicts.  The execution by the Guarantor of this
      Guarantee and its compliance with this Guarantee will not involve or lead
      to a contravention of:

              

      

       

      
        	
                (a)  

              	
                any
      law or regulation in force at the date of the Guarantee;
  or

              

      

       

      
        	
                (b)  

              	
                the
      constitutional documents of the Guarantor;
or

              

      

       

      
        	
                (c)  

              	
                any
      contractual or other obligation or restriction which is binding on the
      Guarantor or any of its assets.

              

      

       

      
        	
                10.7  

              	
                No withholding
      taxes.  No tax is imposed in any jurisdiction in which
      the Guarantor is ordinarily resident for tax by way of withholding or
      deduction or otherwise on any payment to be under this
      Agreement.

              

      

       

      
        	
                10.8  

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

              

      

       

      
        	
                10.9  

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

              

      

       

      
        	
                10.10  

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

              

      

       

      
        	
                11  

              	
                UNDERTAKINGS

              

      

       

      
        	
                11.1  

              	
                General.  The
      Guarantor undertakes with the Lender to comply with the following
      provisions of this Clause 11 at all times during the Security Period,
      except as the Lender may otherwise
permit.

              

      

       

      
        	
                11.2  

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

              

      

       

      
        	
                11.3  

              	
                Provision of financial
      statements.  The Guarantor will send to the
      Lender:

              

      

       

      
        	
                (a)  

              	
                as
      soon as possible, but in no event later than 120 days following the end of
      each financial year of the Guarantor, the annual audited accounts of the
      Guarantor;

              

      

       

      
        	
                (b)  

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

              

      

       

      
        	
                (c)  

              	
                together
      with the accounts specified in paragraph (b) above, a compliance
      certificate in the form set out at schedule 4 of the Loan Agreement
      executed by the chief financial officer of the Guarantor confirming the
      Financial Covenants set out in schedule 3 of the Loan Agreement have been
      complied with during each fiscal
quarter.

              

      

       

      
        	
                11.4  

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

              

      

       

      
        	
                (a)  

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

              

      

       

      
        	
                (b)  

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

              

      

       

      
        	
                (c)  

              	
                fully
      disclose or provide for all significant liabilities of the Guarantor and
      its subsidiaries.

              

      

       

      
        	
                11.5  

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

              

      

       

      
        	
                11.6  

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

              

      

       

      
        	
                (a)  

              	
                for
      the Guarantor to perform its obligations under this
    Guarantee;

              

      

       

      
        	
                (b)  

              	
                for
      the validity or enforceability of this
  Guarantee;

              

      

       

      and the
Guarantor will comply with the terms of all such consents.

      

      
        	
                11.7  

              	
                Further
      Assurance.  The Guarantor
will:

              

      

       

      
        	
                (a)  

              	
                at
      its own cost, do all that it reasonably can to ensure that this Guarantee
      creates the obligations which it purports to create;
  and

              

      

       

      
        	
                (b)  

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

              

      

       

      
        	
                11.8  

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

              

      

       

      
        	
                11.9  

              	
                Notification of
      default.  The Guarantor will notify the Lender as soon as
      the Guarantor becomes aware of:

              

      

       

      
        	
                (a)  

              	
                the
      occurrence of an Event of Default or a Potential Event of Default;
      or

              

      

       

      
        	
                (b)  

              	
                any
      matter which indicates that an Event of Default or a Potential Event of
      Default may have occurred and is
continuing;

              

      

       

      and will
thereafter keep the Lender fully up-to-date with all developments.

      

      
        	
                11.10  

              	
                Maintenance of
      status.  The Guarantor will maintain its separate
      corporate existence under the laws of the Republic of
    Ireland.

              

      

       

      
        	
                11.11  

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

              

      

       

      
        	
                (a)  

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

              

      

       

      
        	
                (b)  

              	
                make
      any substantial change to the nature of its business from that existing at
      the date of this Guarantee.

              

      

       

      
        	
                11.12  

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

              

      

       

      
        	
                11.13  

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

              

      

       

      
        	
                11.14  

              	
                Compliance with financial
      covenants in Loan Agreement.  The Guarantor will comply
      at all times with the financial covenants set out in Schedule 3 of the
      Loan Agreement.

              

      

       

      
        	
                12  

              	
                JUDGMENTS
      AND CURRENCY INDEMNITY

              

      

       

      
        	
                12.1  

              	
                Judgments relating to Loan
      Agreement.  This Guarantee shall cover any amount payable
      by the Borrower under or in connection with any judgment relating to the
      Loan Agreement.

              

      

       

      
        	
                12.2  

              	
                Currency
      indemnity.  In addition, clause 20.4 (currency indemnity)
      of the Loan Agreement shall apply, with any necessary adaptations, in
      relation to this Guarantee.

              

      

       

      
        	
                13  

              	
                SET-OFF

              

      

       

      
        	
                13.1  

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

              

      

       

      
        	
                (a)  

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

              

      

       

      
        	
                (b)  

              	
                for
      that purpose:

              

      

       

      
        	
                (i)  

              	
                break,
      or alter the maturity of, all or any part of a deposit of the
      Guarantor;

              

      

       

      
        	
                (ii)  

              	
                convert
      or translate all or any part of a deposit or other credit balance into
      Dollars;

              

      

       

      
        	
                (iii)  

              	
                enter
      into any other transaction or make any entry with regard to the credit
      balance which the Lender considers
appropriate.

              

      

       

      
        	
                13.2  

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

              

      

       

      
        	
                14  

              	
                SUPPLEMENTAL

              

      

       

      
        	
                14.1  

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

              

      

       

      
        	
                14.2  

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

              

      

       

      
        	
                14.3  

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

              

      

       

      
        	
                14.4  

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

              

      

       

      
        	
                14.5  

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

              

      

       

      
        	
                14.6  

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

              

      

       

      
        	
                14.7  

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

              

      

       

      
        	
                14.8  

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

              

      

       

      
        	
                15  

              	
                ASSIGNMENT

              

      

       

      
        	
                15.1  

              	
                Assignment by
      Lender.  The Lender may assign its rights under and in
      connection with this Guarantee to the same extent as it may assign its
      rights under the Loan Agreement.

              

      

       

      
        	
                16  

              	
                NOTICES

              

      

       

      
        	
                16.1  

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

              

      

       

      TBS
International Public Limited Company

      Arthur
Cox Building

      Earlsfort
Terrace

      Dublin
2

      Ireland

      

      
        	
                 
      

              	
                Fax
      No:  +353 1 618 0618

              

      

      

      
        	
                 
      

              	
                with
      a copy to:

              

      

      

      TBS
Shipping Services Inc.

      612 East
Grassy Sprain Road

      Yonkers,
NY  10710

      U.S.A.

      

      Fax
:           +1 914 961
5121

      

      or to such other address which the
Guarantor may notify to the Lender.

      

      
        	
                16.2  

              	
                Application of certain
      provisions of Loan Agreement.  Clauses 27.3, 27.4 and
      27.5 of the Loan Agreement apply to any notice or demand under or in
      connection with this Guarantee.

              

      

       

      
        	
                16.3  

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

              

      

       

      
        	
                (a)  

              	
                on
      the date on which the amount to which it relates is payable by the
      Borrower under the Loan Agreement;

              

      

       

      
        	
                (b)  

              	
                at
      the same time as the service of a notice under clause 18.2 (events of
      default) of the Loan Agreement;

              

      

       

      and a
demand under this Guarantee may refer to all amounts payable under or in
connection with the Loan Agreement without specifying a particular sum or
aggregate sum.

      

      
        	
                16.4  

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

              

      

       

      
        	
                17  

              	
                INVALIDITY
      OF LOAN AGREEMENT

              

      

       

      
        	
                17.1  

              	
                Invalidity of Loan
      Agreement.  In the event
of:

              

      

       

      
        	
                (a)  

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

              

      

       

      
        	
                (b)  

              	
                without
      limiting the scope of paragraph (a),  bankruptcy of the
      Borrower, the introduction of any law or any other matter resulting in the
      Borrower being discharged from liability under the Loan Agreement, or the
      Loan Agreement ceasing to operate (for example, by interest ceasing to
      accrue);

              

      

       

      this
Guarantee shall cover any amount which would have been or become payable under
or in connection with the Loan Agreement if the Loan Agreement had been and
remained entirely valid, legal and enforceable, or the Borrower had not suffered
bankruptcy, or any combination of such events or circumstances, as the case may
be, and the Borrower had remained fully liable under it for liabilities whether
invalidly incurred or validly incurred but subsequently retrospectively
invalidated;  and references in this Guarantee to amounts payable by
the Borrower under or in connection with the Loan Agreement shall include
references to any amount which would have so been or become payable as
aforesaid.

      

      
        	
                17.2  

              	
                Invalidity of Finance
      Documents.  Clause 17.1 also applies to each of the other
      Finance Documents to which the Borrower is a
  party.

              

      

       

      
        	
                18  

              	
                GOVERNING
      LAW AND JURISDICTION

              

      

       

      
        	
                18.1  

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

              

      

       

      
        	
                18.2  

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

              

      

       

      
        	
                18.3  

              	
                Choice of forum for the
      exclusive benefit of the Lender.  Clause 18.2 is for the
      exclusive benefit of the Lender, which reserves the
  rights:

              

      

       

      
        	
                (a)  

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

              

      

       

      
        	
                (b)  

              	
                to
      commence such proceedings in the courts of any such country or countries
      concurrently with or in addition to proceedings in England or without
      commencing proceedings in England.

              

      

       

      The
Guarantor shall not commence any proceedings in any country other than England
in relation to a matter which arises out of or in connection with this
Guarantee.

      

      
        	
                18.4  

              	
                Process
      agent.  The Guarantor irrevocably appoints Globe Maritime
      Limited its registered office for the time being, presently at 5th Floor,
      St. Magnus House, 3 Lower Thames  Street, London EC3R 6HE, to
      act as its agent to receive and accept on its behalf any process or other
      document relating to any proceedings in the English courts which are
      connected with this Guarantee.

              

      

       

      
        	
                18.5  

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

              

      

       

      
        	
                18.6  

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

              

      

       

      THIS GUARANTEE has been
executed and delivered as a Deed on the date stated at the beginning of this
Guarantee.

      

      
        
          
             26330563
v3

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXECUTION
PAGE

       

      
        	
                GUARANTOR

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                SIGNED and DELIVERED as a
      DEED

              	
                )

              	 
      	 
      
	
                by
      Christophil B. Costas

              	
                )

              	
                /s/
      Christophil B. Costas

              	 
      
	
                for
      and on behalf of

              	
                )

              	 
      	 
      
	
                TBS
      INTERNATIONAL PUBLIC

              	
                )

              	 
      	 
      
	
                LIMITED
      COMPANY

              	
                )

              	 
      	 
      
	
                in
      the presence of:

              	
                )

              	
                /s/
      Lorraine Brown

              	 
      
	 
      	 
      	
                Lorraine
      Brown

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                LENDER

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                SIGNED
by

              	
                )

              	
                /s/
      Ringleden

              	
                /s/
      Rolver

              
	
                for
      and on behalf of

              	
                )

              	
                Ringleden

              	
                Rolver

              
	
                COMMERZBANK
      AG

              	
                )

              	 
      	 
      
	
                in
      the presence of:

              	
                )

              	
                /s/
      Anne Randewig

              	 
      
	 
      	 
      	
                Anne
      Randewigex_10-25.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.25

     

     

     

     

    BERENBERG BANK 

      TRS
Shipping Services Inc.

      Mr
Ferdinand V, Lepere

      612 East
Grassy Sprain Road

      Yonkers

      New York
10710

      USA

      Fax No.:
+1 (914) 961 0567

       

       

      Grainger
Maritime Corp,

      e/o 'I13S
International Limited

      Mr
William J. Carr

      Suite
306, Commerce Building

      One
Chancery Lane

      Hamilton
HM12

      Bermuda

      Fax No.:
+1 (441) 295-4957

       

       

      Loan
Agreement dated 19 June 2008 (the "Loan Agreement") Here: Waiver Request for the
Asset Protection Clause

       

      Dear
Sirs,

       

      We hereby
give our consent to suspend the asset protection clause according to paragraph
10.2 (b) of the Loan Agreement through 31 March 2010 under the following
conditions:

       

      
        	
                ·  

              	
                You
      will prepay an amount ofUSD 812,500.00 on 18 January 2010 representing the
      instalment of USD 812,500.00 due on 22 March 2010. The next regular
      repayment instalment will become due on 22 June 2010 as per the attached
      repayment schedule.

              

      

       

      

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  Grainger
      Maritime Corp

                	 
	
                  Account/Customer

                	 	 
      	 	 	 	 	 	 	 	
                  Currency:

                	 
	
                  No.:
      23281

                	 	 
      	 	 	 	 	 	 	 	
                  USC

                	 
	
                  REPAYMENT
      SCHEDULE

                	 
	
                  Installment:
      quarterly

                	 
	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 
	
                  No.

                	 	 	
                  Due
      Date

                	 	 
      

                  Interest

                	 	
                  Instalment

                	 	 	
                  Total
      amount

                	 	 	
                  Outstanding

                	 
	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 
	 	 	 	 	30.12.09	 	 
      	 	 	 	 	 	 	 	 	8.125.000,00	 
	 	1	 	 	 	18.01.10	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	7.312.500,00	 
	 	2	 	 	 	22.06.10	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	6.500.000,00	 
	 	3	 	 	 	22.09.10	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	5.687.500,00	 
	 	4	 	 	 	22.12.10	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	4.875.000,00	 
	 	5	 	 	 	22.03.11	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	4.062.500,00	 
	 	6	 	 	 	22.06.11	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	3.250.000,00	 
	 	7	 	 	 	22.09.11	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	2.437.500,00	 
	 	8	 	 	 	22.12.11	 	 
      	 	 	812.500.00	 	 	 	812.500,00	 	 	 	1.625.000,00	 
	 	9	 	 	 	22.03.12	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	812.500,00	 
	 	10	 	 	 	22.06.12	 	 
      	 	 	812.500,00	 	 	 	812.500,00	 	 	 	0,00	 
	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Data
      in marked area depend on further interest developments and can therefore
      not be guaranteed

                	 

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

       

      
        	
                ·  

              	
                All other banks
      granting loans to TBS International Group i.e. Bank of America, The Royal
      Bank of Scotland, DVB Bank, Credit Suisse and AIG Commercial Equipment
      Finance Inc have waived their financial covenants - including the asset
      protection clause - required in their respective loan documentation
      through 31 March 2010.  Please confirm this in writing to
      us.

              

      

       

      For this
request we will increase the margin to 4,00% p.a. and will debit your current
account no. 0523281004 with an arrangement fee of EUR 12,500.00.

       

      Yours
faithfully,

       

      Joh.
Berenberg, Gossler & Co. KG

       

      

                         /s/ Speer       /s/ Aschenbrenner

      (Speer)                                (Aschenbrenner)

       

      Accepted

       

      

       

      SIGNED
by

       

      /s/
William J.
Carr                   

      for and
on behalf of

      Grainger
Maritime Corp.

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