Document:

ex_10-10.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.10

    

      
 

      Date: as
of January 12, 2010

      

      

      RUSHMORE
SHIPPING LLC

      as
Owner

      

      

      BEEKMAN
SHIPPING CORP.

      as
Charterer

      

      

      TBS
INTERNATIONAL LIMITED

      as
Original Guarantor

      

      

      -and-

      

      

      TBS
HOLDINGS LIMITED

      and

      TBS
INTERANTIONAL PUBLIC LIMITED COMPANY

      as
Additional Guarantors

      

      

      _______________________________________________________

      

      FOURTH
AMENDATORY AGREEMENT

      ______________________________________________________

      

      Amending
and Supplementing the Bareboat Charter Party dated as of January 24, 2007, as
amended and supplemented by the First Amendatory Agreement thereto dated as of
March 26, 2009, the Second Amendatory Agreement thereto dated as of April 16,
2009, and the Third Amendatory Agreement thereto dated as of December 31, 2009
in respect of the Panamanian registered and Philippine bareboat registered
LAGUNA BELLE

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
FOURTH
AMENDATORY AGREEMENT dated as of January 12, 2010 (this “Agreement”)

      

      AMONG

      

      
        	
                (1)  

              	
                RUSHMORE
      SHIPPING LLC, a Marshall Islands limited liability company, as Owner (the
      “Owner”);

              

      

       

      
        	
                (2)  

              	
                BEEKMAN
      SHIPPING CORP., a Marshall Islands corporation, as bareboat Charterer (the
      “Charterer”);

              

      

       

      
        	
                (3)  

              	
                TBS
      INTERNATIONAL LIMITED, a Bermuda company, as guarantor (the “Original Guarantor”);
      and

              

      

       

      
        	
                (4)  

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

              

      

       

      WITNESSETH
THAT:

      

      WHEREAS, the Owner, the
Charterer and the Original Guarantor are parties to a bareboat charter party
dated as of January 24, 2007, as amended and supplemented by the First
Amendatory Agreement thereto dated as of March 26, 2009, the Second Amendatory
Agreement thereto dated as of April 16, 2009, and the Third Amendatory Agreement
thereto dated as of December 31, 2009 (as so amended and supplemented, the
“Charter”).

      

      WHEREAS, the obligations of
the Charterer under the Charter are guaranteed by the Original Guarantor
pursuant to Clause 53 of the Charter.

      

      WHEREAS, upon the terms and
conditions stated herein, the parties hereto have agreed to:

      

      
        	
                (a)  

              	
                join
      the Additional Guarantors as parties to the Charter so as to have them
      become jointly and severally liable, together with the Original Guarantor,
      for the obligations of the Original Guarantor hereunder (including,
      without limitation, the Guarantee Obligations pursuant to Clause 53 of the
      Charter; and

              

      

      

      
        	
                (b)  

              	
                amend
      certain provisions of the Charter.

              

      

      

      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

              

      

      

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

      

      
        	
                2  

              	
                JOINDER
      OF TBSPLC AND TBSHL AS JOINT AND SEVERAL
  GUARANTORS

              

      

       

      
        	
                2.1  

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

              

      

      

      
        	
                (a)  

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

              

      

       

      
        	
                (b)  

              	
                the
      Original Guarantor transferred to TBSHL the shares held by the Original
      Guarantor in various subsidiaries in exchange for the authorized shares in
      TBSHL and an interest-free promissory note, thus resulting in TBSHL
      becoming a wholly-owned subsidiary of the Original
    Guarantor;

              

      

       

      
        	
                (c)  

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

              

      

       

      
        	
                (d)  

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

              

      

       

      
        	
                (e)  

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

              

      

       

      each of
TBSPLC and TBSHL hereby agree to become a Guarantor under the Charter and to be
jointly and severally liable, together with the Original Guarantor, for the
obligations of the Original Guarantor hereunder (including, without limitation,
the Guarantee Obligations pursuant to Clause 53 hereof, as amended
hereby).

       

      
        	
                2.2  

              	
                Acceptance of
      Guarantors.  The Owner hereby acknowledges and accepts
      TBSPLC and TBSHL as joint and several Guarantors with the Original
      Guarantor pursuant to the terms and conditions of the Charter (including,
      without limitation, the Guarantee Obligations pursuant to Clause 53
      hereof, as amended hereby).

              

      

      

      
        	
                3  

              	
                AMENDMENTS
      TO THE CHARTER

              

      

       

      
        	
                3.1  

              	
                Amendments.  The
      parties hereto agree to amend the Charter as follows with effect on and
      from the date hereof:

              

      

      

      
        	
                (a)  

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

              

      

      

      
        	
                (b)  

              	
                Clause
      35(3) is amended and restated to read as
  follows:

              

      

      

      
        	
                 
      

              	
                “(3)

              	
                For
      the duration of the Charter Period, and until all Charter Party
      Obligations have been fulfilled and satisfied, the Guarantors
      covenant:

              

      

      

      (a)           to
be in compliance with:

      

      
        	
                (i)  

              	
                either:

              

      

       

      
        	
                 
      

              	
                (x)

              	
                the
      financial covenants set forth in Section 7.13 of the Amended and Restated
      Credit Agreement dated as of March 26, 2008, as amended or supplemented
      from time to time, among Albemarle Maritime Corp., Arden Maritime Corp.,
      Avon Maritime Corp., Birnam Maritime Corp., Bristol Maritime Corp.,
      Chester Shipping Corp., Cumberland Navigation Corp., Darby Navigation
      Corp., Dover Maritime Corp., Elrod Shipping Corp., Exeter Shipping Corp.,
      Frankfort Maritime Corp., Glenwood Maritime Corp., Hansen Shipping Corp.,
      Hartley Navigation Corp., Henley Maritime Corp., Hudson Maritime Corp.,
      Jessup Maritime Corp., Montrose Maritime Corp., Oldcastle Shipping Corp.,
      Quentin Navigation Corp., Rector Shipping Corp., Remsen Navigation Corp.,
      Sheffield Maritime Corp., Sherman Maritime Corp., Sterling Shipping Corp.,
      Stratford Shipping Corp., Vedado Maritime Corp., Vernon Maritime Corp.,
      Windsor Maritime Corp. and other persons named therein from time to time
      as Borrowers, (ii) the Original Guarantor as Holdings, (iii) TBS Shipping
      Services Inc. as Administrative Borrower, (iv) each lender from time to
      time party thereto as Lenders and (v) Bank of America, N.A. as
      Administrative Agent, Swing Line Lender and L/C Issuer, upon the terms and
      conditions of which a $267.5 million credit facility was made available to
      the Borrowers named therein (the “Bank of America Credit Facility
      Agreement”); or

              

      

       

      
        	
                 
      

              	
                (y)

              	
                such
      other financial covenants temporarily permitted under the Bank of America
      Credit Facility Agreement in lieu of the financial covenants set forth in
      Section 7.13 thereof pursuant to any amendment or waiver executed in
      respect of the Bank of America Credit Facility
  Agreement,

              

      

       

      regardless
of whether the Bank of America Credit Facility Agreement is in effect (in which
case the foregoing financial covenants shall apply in their last form before
termination of the Bank of America Credit Facility Agreement), and

       

      
        	
                (ii)  

              	
                clauses
      10.2(h)(ii) and 10.2(i)(i) of the Loan Agreement dated as of January 16,
      2008, as amended by the First Amendatory Agreement thereto dated as of
      March 23, 2009 and the Second Amendatory Agreement thereto dated as of
      December 31, 2009, among (i) Bedford Maritime Corp., Brighton Maritime
      Corp., Hari Maritime Corp., Prospect Navigation Corp., Hancock Navigation
      Corp., Columbus Maritime Corp. and Whitehall Marine Transport Corp. as
      Borrowers, (ii) the Guarantor as Guarantor, (iii) the banks and financial
      institutions named therein as Lenders, (iv) DVB Group Merchant Bank (Asia)
      Ltd. as Facility
      Agent and Security Trustee, (v) The Governor and Company of the Bank of
      Ireland (“BOI”) as
      Payment Agent, (vi) DVB Bank SE, BOI and Natixis as Swap Banks and (vii)
      Mount Washington LLC as Arranger;

              

      

       

      
        	
                (b)  

              	
                to
      promptly inform the Owner in the event the Guarantors are not in
      compliance with any of the requirements of clause (a) above;
      and

              

      

      

      
        	
                (c)  

              	
                to
      subordinate any and all claims of whatever nature which any Guarantor has
      or may hereafter have against the Charterer to any and all claims of
      whatever nature which the Owner has or may hereafter have against the
      Charterer during the Charter Period and until all Charter Party
      Obligations have been fulfilled.”

              

      

      

      
        	
                (c)  

              	
                Clause
      53 is amended and restated to read as
follows:

              

      

      

      “(1)           Obligations
Guaranteed.

       

      
        	
                 
      

              	
                (a)

              	
                In
      consideration of the Commitments of the Owner, the Guarantors hereby
      unconditionally and irrevocably guarantee, jointly and severally, to the
      Owner, as primary obligors and not as mere sureties (i) the full and
      prompt payment of all amounts payable by the Charterer under the terms of
      this Charter, including but not limited to Charter Hire; insurance
      premiums and P&I calls; costs and fees, as the same shall become due
      and payable, whether at the stated time for payment thereof, or by
      acceleration upon a Charterparty Event of Default; (ii) the full and
      prompt payment of any indemnity for loss, claim, expense or liability that
      the Owner may suffer or incur by reason of or in connection with this
      Charter, or the operation, use or employment of the Vessel; and (iii) the
      full and prompt performance and observance by the Charterer of all
      obligations, undertakings, covenants and agreements required to be
      performed and observed by the Charterer under the terms of this Charter
      (items (i) through (iii), the “Guarantee
  Obligations”).

              

      

       

      
        	
                 
      

              	
                (b)

              	
                All
      payments by the Guarantors shall be paid in the lawful currency of the
      United States.  Each and every default in the payment or
      performance of the Guarantee Obligations, shall give rise to a separate
      cause of action hereunder, and separate suits may be brought as each cause
      of action arises.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                The
      Guarantors further agree that the Guarantee Obligations constitute an
      absolute, unconditional, present and continuing guarantee of performance
      and payment and not of collection, and waive any right to require that any
      resort be had by the Owner to (i) any security held by or for the benefit
      of the Owner for payment or performance of the Guaranteed Obligations;
      (ii) the Owner’s right against any other person, or (iii) any other right
      or remedy available to the Owner by contract, applicable law, or
      otherwise.  The Guarantee Obligations are direct, unconditional
      and completely independent of the obligations of any other person or
      entity, and a separate cause of action or separate causes of action may be
      brought and prosecuted against the Guarantor without the necessity of any
      other party or previous proceeding with or exhausting any other remedy
      against any other person who might have become liable for the Guarantee
      Obligations or of realizing upon any security held by or for the benefit
      of the Owner.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                The
      Guarantors shall pay to the Owner all reasonable costs and expenses
      (including, without limitation, reasonable attorneys’ fees) incurred by
      the Owner upon the occurrence of a Charterparty Event of Default under the
      terms of this Charter.

              

      

       

      (2)           Guarantee Obligations of
Guarantor Unconditional.  The Guarantee Obligations shall be
absolute and unconditional and shall remain in full force and effect until (a)
all amounts due or payable under the Charter shall have been paid and (b) all
other sums payable by the Charterer and the Guarantors under this Charter have
been paid in full and, to the extent permitted by law, such Guarantee
Obligations shall not be affected, modified, released or impaired by any state
of facts or the happening from time to time of any event, including, without
limitation, any of the following, whether or not with notice to or the consent
of the Guarantors:

       

      
        	
                (a)  

              	
                the
      invalidity, irregularity, illegality, frustration or unenforceability of,
      or any defect in this Charter or any collateral document related
      hereto;

              

      

       

      
        	
                (b)  

              	
                any
      present or future law or order of any government (de jure or de facto) or of any
      agency thereof purporting to reduce, amend or otherwise affect this
      Charter or to vary any terms of
payment;

              

      

       

      
        	
                (c)  

              	
                the
      waiver, compromise, settlement, release, extension, change, modification
      or termination of any or all of the obligations of (x) the Charterer under
      this Charter (except by payment in full of all amounts due or payable
      under this Charter) or (y) the Guarantors with respect to the Guarantee
      Obligations (except by payment in full of all the Guarantee Obligations
      hereunder);

              

      

       

      
        	
                (d)  

              	
                the
      failure to give notice to the Guarantor of the occurrence of a
      Charterparty Event of Default under the
Charter;

              

      

       

      
        	
                (e)  

              	
                the
      modification or amendment (whether material or otherwise) of any Guarantee
      Obligation under this Charter;

              

      

       

      
        	
                (f)  

              	
                the
      taking of, or the omission to take, any of the actions referred to in this
      Charter;

              

      

       

      
        	
                (g)  

              	
                any
      failure, omission, delay, or lack on the part of the Owner to enforce,
      assert or exercise any right, power or remedy conferred on the Owner in
      this Charter;

              

      

       

      
        	
                (h)  

              	
                the
      voluntary or involuntary liquidation, dissolution, sale or other
      disposition of all or substantially all the assets, marshalling of assets
      and liabilities, receivership, insolvency, bankruptcy, assignment for the
      benefit of creditors, reorganization, arrangement or composition with
      creditors or readjustment of, or other similar proceedings affecting any
      Guarantor or any of its assets;

              

      

       

      
        	
                (i)  

              	
                any
      event or action that would, in the absence of this Clause, result in the
      release or discharge of any Guarantor from the performance or observance
      of any of the Guarantee Obligations, other than the performance
      thereof;

              

      

       

      
        	
                (j)  

              	
                the
      default or failure of any Guarantor to fully perform any of its Guarantee
      Obligations;

              

      

       

      
        	
                (k)  

              	
                any
      other circumstances which might otherwise constitute a legal or equitable
      discharge or defense of a surety or a
guarantor;

              

      

       

      
        	
                (l)  

              	
                the
      actual or purported assignment of this Charter or of any of the Guarantee
      Obligations;

              

      

       

      
        	
                (m)  

              	
                to
      the extent permitted by law, the release or discharge of any Guarantor
      from the performance or observance of any guaranteed obligation, covenant
      or agreement contained herein by operation of
  law;

              

      

       

      
        	
                (n)  

              	
                any
      limitation on the liability or obligations of the Charterer under this
      Charter or any termination, cancellation, frustration, invalidity or
      unenforceability, in whole or in part, of this Charter, or any term
      thereof;

              

      

       

      
        	
                (o)  

              	
                the
      merger or consolidation or any sale, lease or transfer of any or all of
      the assets of the Charterer or any Guarantor to any person;
    or

              

      

       

      
        	
                (p)  

              	
                any
      other occurrence whatsoever, whether similar or dissimilar to the
      foregoing.

              

      

       

      (3)            Waiver by Guarantor;
Expenses.  Each of the Guarantors hereby expressly
(a) waives notice from the Owner of its acceptance and reliance on such
Guarantor’s Guarantee or of any action taken or omitted in reliance hereon,
(b) waives diligence, presentment, demand for payment, protest, any
requirement that any right or power be exhausted or any action be taken against
the Charterer or against any security for the Charterer’s obligations under this
Charter, (c) waives any right to require a proceeding first against the
Charterer or to exhaust any security for the performance of the obligations of
the Charterer, (d) agrees that the liability of such Guarantor shall not be
affected or decreased by any amendment, termination, extension, renewal, waiver,
modification or any, pledge or assignment of this Charter or the rejection or
disaffirmance thereof in any bankruptcy or like proceedings, and (e) agrees that
if any payment under this Charter is rescinded or otherwise must be returned by
the Owner or any assignee thereof for any reason whatsoever, then the Guarantee
Obligations shall continue to be effective or reinstated with respect to such
payment as though the Owner had never received such payment.  Each of
the Guarantors agrees to pay all costs, fees, commissions and expenses
(including, without limitation, all court costs and reasonable attorneys’ fees)
which may be incurred by the Owner in enforcing or attempting to enforce the
Guarantee Obligations following any default on the part of the Guarantors
hereunder, whether the same shall be enforced by suit or otherwise.

       

      (4)            Other
Security.  The Owner may pursue its rights and remedies against
the Guarantors notwithstanding (a) any security granted to the Owner under this
Charter; and (b) any action taken or omitted to be taken by the Owner to enforce
any of the rights or remedies with respect to any other security.

       

      (5)            No Set-off by the
Guarantors.  No set-off, abatement, recoupment, counterclaim,
reduction or diminution of an obligation, or any defense of any kind or nature
which any Guarantor has or may have with respect to a claim hereunder, shall be
available hereunder to such Guarantor against the Owner.”

       

      
        	
                4  

              	
                MISCELLANEOUS

              

      

       

      
        	
                4.1  

              	
                References.  Each
      reference in the Charter to “this Charter”, “hereunder”, “hereof”,
      “herein” or words of like import shall mean and refer to the Charter as
      amended hereby.

              

      

      

      
        	
                4.2  

              	
                Effect of this
      Agreement.  Subject to the terms of this Agreement, with
      effect on and from the date hereof, the Charter shall be, and shall be
      deemed by this Agreement to have been, amended upon the terms and
      conditions stated herein and, as so amended, the Charter shall continue to
      be binding on each of the parties to it in accordance with its terms as so
      amended.

              

      

      

      
        	
                4.3  

              	
                No other
      amendments.  Except as amended hereby, all other terms
      and conditions of the Charter remain unchanged and the Charter is hereby
      ratified and confirmed.  Without limiting the foregoing, each
      Guarantor ratifies and confirms that its guarantee under Clause 53 of the
      Charter, as amended hereby.

              

      

      

      
        	
                4.4  

              	
                Governing
      Law.  This Agreement and the rights and obligations of
      the parties hereunder shall be governed by, and construed in accordance
      with, Clause 26.2 of the Charter.

              

      

      

      
        	
                4.5  

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

              

      

      

      
        	
                4.6  

              	
                Severability.  Any
      provision of this 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.

              

      

      

      
        	
                4.7  

              	
                Payment of
      Expenses.  The parties hereto agree to pay or reimburse
      each of DVB Bank SE and DVB Bank America N.V. (collectively, the “Credit Parties”) for all
      reasonable expenses in connection with the preparation, execution and
      carrying out of this 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.

              

      

      

      [SIGNATURE
PAGES FOLLOW]

      
        
          
            19113019
v1

          

           

        

        
           

          
            

          

        

        
           

        

      

      

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

      

      
        	
                RUSHMORE
      SHIPPING LLC, as Owner

                 

                 

                 

                
                  By:
      /s/ Asandro Van
      Aerde 

                  Name: Asandro
      Van Verde

                  Title:
      Secretary 

                

                 

              	
                BEEKMAN
      SHIPPING CORP., as Charterer

                 

                 

                 

                By:
      /s/ Christophil B.
      Costas            
      

                Christophil B.
Costas

                Attorney-in-Fact

                 

              
	
                TBS
      INTERNATIONAL LIMITED, as Guarantor

                 

                 

                 

                By:
      /s/ Christophil
      B.
      Costas            
      

                Christophil B.
Costas

                Attorney-in-Fact

                 

              	
                TBS
      INTERNATIONAL PUBLIC LIMITED COMPANY, as Guarantor

                 

                 

                 

                By:
      /s/ Christophil
      B.
      Costas            
      

                Christophil B.
Costas

                Attorney-in-Fact

              
	
                TBS
      HOLDINGS LIMITED, as Guarantor

                 

                 

                 

                By:
      /s/ Christophil
      B.
      Costas            
      

                Christophil B.
Costas

                Attorney-in-Fact

              	 
      

      

      

      

      

      CONSENT

      

      Pursuant
to Clause 10.2(k) of the Loan Agreement dated as of January 25, 2007, as
amended, among Adirondack Shipping LLC and Rushmore Shipping LLC as Borrowers,
the banks and financial institutions named therein as Lenders and DVB Bank
America N.V. as Facility Agent and Security Trustee, the Facility Agent, for and
on behalf of, and upon the instruction of, the Majority Lenders (as defined in
said Loan Agreement), hereby consents and agrees to the foregoing
Agreement.

      

      DVB BANK
AMERICA N.V.,

      as
Facility Agent for and on behalf of the Majority Lenders

      

      

      By: 
/s/ Jane Freeberg
Sarma             

      Jane Freeberg Sarma

      Attorney-in-Factex_10-11.htm

    TBS INTERNATIONAL PLC
& SUBSIDIARIES                EXHIBIT
10.11

    
 

    

    

    To:           (1)           The
Royal Bank of Scotland plc

    Level 5,
135 Bishopsgate

    London
EC2M 3UR

    (as
Agent, Bookrunner, Mandated Lead Arranger, Security Trustee and Swap
Bank)

    

    (2)           The
Lenders

    (being
the banks and financial institutions listed in Schedule 1 of the Loan Agreement
as defined below)

    

    31
December 2009

    

    Dear
Sirs

    

    Loan
Agreement dated 29 March 2007 as amended by a supplemental letter agreement
dated 26 March 2008, a supplemental agreement dated 27 March 2009 (the
“Supplemental Agreement”), a side letter dated 27 May 2009 and a side letter
dated 3 September 2009 each made between (i) Argyle Maritime Corp., Caton
Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime Corp., McHenry
Maritime Corp. and Sunswyck Maritime Corp. as joint and several Borrowers, (ii)
the banks and financial institutions listed therein as Lenders, (iii) the Royal
Bank of Scotland plc as Mandated Lead Arranger and (iv) the Royal Bank of
Scotland plc as Bookrunner, Agent, Security Trustee and Swap Bank relating to a
term loan facility of US$150,000,000 (together the “Loan
Agreement”)

    

    We write
to confirm that the Covenant Waiver Period as defined in the Supplemental
Agreement and the temporary amendments to the Loan Agreement applicable during
the Covenant Waiver Period shall be extended and continue to apply until 00:00
hours on 1 April 2010 (New York time) subject to the following:-

     

    
      	
              1  

            	
              receipt
      by us from the Borrowers on or before 4 January 2010 of US$417,500 in
      prepayment of the next repayment of Loan A due on 3 March
      2010;

            

    

     

    
      	
              2  

            	
              receipt
      by us from the Borrowers of US$417,500 in prepayment of the first
      repayment of Loan B to be prepaid upon delivery of Ship B scheduled for
      February 2010;

            

    

     

    
      	
              3  

            	
              receipt by us of a
      (non-refundable) amendment fee of $378,893.75
      on or before 5 January
2010;

            

    

     

    
      	
              4  

            	
              receipt
      by us of a copy of this Letter duly acknowledged by you and the Guarantor
      confirming your agreement and the Corporate Guarantor’s agreement to the
      terms of this Letter.

            

    

     

    For the
avoidance of doubt, if the amounts to be prepaid pursuant to paragraphs 1 and 2
and the fee to be paid pursuant to paragraph 3 above are not received by us on
the specified dates, the Covenant Waiver Period shall automatically
expire.

     

    We also
agree that during such extension of the Covenant Waiver Period there shall be a
meeting between all banks with outstanding commitments to the Corporate
Guarantor or companies within the group and the Corporate Guarantor on or before
31 January 2010 to discuss future strategy.

     

    Upon
signing of this letter the Loan Agreement shall be, and shall be deemed by this
Agreement to be, amended as follows:

     

    
      	
              (a)  

            	
              the
      definition of Margin in clause 1.1 shall be deleted and replaced with the
      following:

            

    

     

    “Margin” means in relation to
each Loan three point seven five per cent. (3.75%) per annum;”; and

     

    
      	
              (b)  

            	
              the
      amount of $40,000,000 referred to in the amended Minimum Cash Liquidity
      covenant (set out in Schedule 2 of the Supplemental Agreement) shall be
      reduced to $25,000,000 during the extension of the Covenant Waiver
      Period.

            

    

     

    With
effect from 1 April 2010 the temporary amendments to the Loan Agreement
described in the Supplemental Agreement and as amended above shall cease to
apply.

     

    The
relevant Borrower undertakes to do all that is necessary to assist the Creditor
Parties in having any mortgage addenda (if required) to be registered in respect
of the Mortgage to which it is a party in order to secure the increase in the
Margin described above.

     

    The
Corporate Guarantor, by signature of this Letter, confirms its approval to the
amendments to the Loan Agreement set out herein and confirms that the Corporate
Guarantee shall remain in full force and effect.

     

    Other
than as set out in this Letter, the provisions of the Loan Agreement shall
remain unchanged and in full force and effect.

     

    The
provisions of Clause 31 (Law and Jurisdiction) of the Loan Agreement shall apply
to this Letter as if set out in full but so that references to “this Agreement”
are amended to read “this Letter”.  All remaining provisions of the
Loan Agreement and the Finance Documents shall remain in full force and
effect.

    

    Yours
faithfully

    

    

      
        	
                 /s/
      Keith
      Krut                                   
      

              	 
      	 
      	
                 /s/
      Keith
      Krut                                
      

              
	
                duly
      authorised for

              	 
      	 
      	
                duly
      authorised for

              
	
                Argyle
      Maritime Corp.

              	 
      	 
      	
                Caton
      Maritime Corp.

              
	
                Per:
      Keith Krut

              	 
      	 
      	
                Per:
      Keith Krut

              
	
                Attorney-in-Fact

              	 
      	 
      	
                Attorney-in-Fact

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                 /s/
      Keith
      Krut                                    

              	 
      	 
      	
                 /s/
      Keith
      Krut                                
      

              
	
                duly
      authorised for

              	 
      	 
      	
                duly
      authorised for

              
	
                Dorchester
      Maritime Corp.

              	 
      	
                Longwoods
      Maritime Corp.

              
	
                Per:
      Keith Krut

              	 
      	 
      	
                Per:
      Keith Krut

              
	
                Attorney-in-Fact

              	 
      	 
      	
                Attorney-in-Fact

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                 /s/
      Keith
      Krut                                     

              	 
      	 
      	
                 /s/
      Keith
      Krut                                
      

              
	
                duly
      authorised for

              	 
      	 
      	
                duly
      authorised for

              
	
                McHenry
      Maritime Corp.

              	 
      	
                Sunswyck
      Maritime Corp.

              
	
                Per:
      Keith Krut

              	 
      	 
      	
                Per:
      Keith Krut

              
	
                Attorney-in-Fact

              	 
      	 
      	
                Attorney-in-Fact

              

      

    

       

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Accepted
and agreed this 31st day of December 2009 by:

    

    

    

    

    

    

    /s/
Jayne
Tobin                                                 

    duly
authorised for

    THE
ROYAL BANK OF SCOTLAND PLC

    (as
Agent, Mandated Lead Arranger, Bookrunner, Security Trustee and Swap
Bank)

    

    

    

    

    

    

    /s/
Robin Leigh
Perkin                                      

    duly
authorised for

    THE
ROYAL BANK OF SCOTLAND PLC

    (as
Lender)

    

    

    

    

    

    

    /s/
Gilbert
Torres                                             

    duly
authorised for

    CITIBANK,
N.A.

    (as
Lender)

    

    

    

    

    

    

    _________________________________

    duly
authorised for

    LANDESBANK
HESSEN-THÜRINGEN GIROZENTRALE

    (as
Lender)

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    

    /s/
Christian
Schmecling               
/s/ Dr Yeliz Dinibutungogly

    duly
authorised for

    NORDDEUTSCHE
LANDESBANK GIROZENTRALE

    (as
Lender)

    

    

    

    

    

    

    /s/ Peter
Walter                                                  

    duly
authorised for

    ALLIANCE
& LEICESTER COMMERCIAL FINANCE PLC

    (as
Lender)

    

    

    

    

    

    

    /s/
Judith A.
Huckins                                         

    duly
authorised for

    BANK
OF AMERICA, N.A.

    (as
Lender)

    

    

    

    

    

    

    We hereby
confirm and acknowledge that we have read and understood the terms and
conditions of the above Letter and agree in all respects to the same and confirm
that the Corporate Guarantee to which we are a party shall remain in full force
and effect and shall continue to stand as security for the obligations of the
Borrowers under the Loan Agreement.

    

    

    

    

    

    /s/ Keith
Krut                                         

    TBS
INTERNATIONAL LIMITED

    (as
Guarantor)

    Per: Keith Krut

    Attorney-in-Fact

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]