Document:

ex_10-6.htm

     

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.6

    
 

    

    

    Date: as
of December 31, 2009

    

    

    ADIRONDACK
SHIPPING LLC

    as
Owner

    

    

    FAIRFAX
SHIPPING CORP.

    as
Charterer

    

    and

    

    TBS
INTERNATIONAL LIMITED

    as
Guarantor

    

    

    

    _______________________________________________________

    

    THIRD
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 and by the Second Amendatory Agreement thereto dated as of April
16, 2009, in respect of the Panamanian registered and Philippine bareboat
registered SEMINOLE PRINCESS

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    THIRD
AMENDATORY AGREEMENT dated as of December 31, 2009 (this “Agreement”)

    

    AMONG

    

    
      	
              (1)  

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

            

    

     

    
      	
              (2)  

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

            

    

     

    
      	
              (3)  

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

            

    

     

    WITNESSETH
THAT:

    

    WHEREAS, the Owner, the
Charterer and the 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 and by the Second Amendatory Agreement
thereto dated as of April 16, 2009 (as so amended and supplemented, the “Charter”).

    

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

    

    WHEREAS, the waivers granted
pursuant to Clause 2.3 of the First Amendatory Agreement in respect of Clause
35(3)(a) of the Charter will expire as of 12:01 am on January 1, 2010 (the
“Specified Charterparty Event
of Default”).

    

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

    

    
      	
              (a)  

            	
              amend
      certain provisions of the Charter;
and

            

    

    

    
      	
              (b)  

            	
              extend
      the temporary waiver of compliance by the Guarantor with the requirements
      of Clauses 35(3)(a) of the Charter during the Waiver
    Period.

            

    

    

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

    

    
      	
              1  

            	
              DEFINITIONS

            

    

    

    
      	
              1.1  

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

            

    

     

    “Waiver Period” means the
period commencing on the date hereof and ending on the earliest to occur of (a)
April 1, 2010 at 12:00 a.m. Eastern Time and (b) the occurrence after the
commencement of the Waiver Period of any Charterparty Event of Default (other
than the Specified Charterparty Event of Default)
including, without limitation, any failure to comply with the provisions of this
Third Amendatory Agreement.

    

    
      	
              2  

            	
              AMENDMENTS
      TO THE CHARTER

            

    

     

    
      	
              2.1  

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

            

    

    

    
      	
              (a)  

            	
              Clause
      31(1) is amended and restated to read as
  follows:

            

    

    

    “(1)           The
Charterer shall pay to the Owner for the hire of the Vessel monthly Charter Hire
in United States currency, at the rates set forth below, commencing on and from
the Delivery Date.  Hire to continue until the date and hour when the
Vessel is redelivered by the Charterer:

    

    (a)           Months
1 –
24:                                  $10,500.00
per day Charter Hire

    

    (b)           Months
25 –
36:                                $10,000.00
per day Charter Hire

    

    (c)           Months
36 –
47:                                $8,041.01
per day Charter Hire

    

    (d)           Months
48 –
59:                                $7,908.64
per day Charter Hire

    

    (e)           Months
60 –
71:                                $7,826.72
per day Charter Hire

    (f)           Months
72 –
84:                                $7,747.53
per day Charter Hire”

    

    
      	
              (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 Guarantor
      covenants:

            

    

    

    (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 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; 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;
and

            

    

     

    
      	
              (b)  

            	
              to
      subordinate any and all claims of whatever nature which the 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.”

            

    

    

    
      	
              3  

            	
              TEMPORARY
      WAIVER OF COMPLIANCE WITH CLAUSE
35(3)

            

    

     

    
      	
              3.1  

            	
              Temporary
      waiver.  The parties hereto agree to extend temporarily
      the waiver of compliance by the Guarantor with the requirements of Clause
      35(3) of the Charter, as amended above, during the Waiver Period (and for
      the avoidance of doubt the Guarantor’s compliance with the requirements of
      Clause 35(3) of the Charter, as amended above, shall be reinstated
      immediately upon the expiration of the Waiver Period and shall be required
      at all times thereafter).

            

    

    

    
      	
              3.2  

            	
              Covenants.  In
      consideration of the temporary waiver made in Clause 3.1, during the
      Waiver Period the Guarantor shall
not:

            

    

    

    
      	
              (a)  

            	
              for
      each calendar month ending on or after January 1, 2010, permit Qualified
      Cash of the Loan Parties to be less than the greater of (i) $25,000,000 or
      (ii) $40,000,000 minus
      any prepayment of Indebtedness made during such calendar month as
      permitted after giving effect to Amendment No. 2 to the Bank of America
      Credit Facility Agreement, of which a minimum average balance of
      $9,375,000 in any such calendar month shall be deposited with Bank of
      America, N.A.;

            

    

    

    
      	
              (b)  

            	
              permit
      the Consolidated Interest Charges Coverage Ratio as of the four fiscal
      quarters ending December 31, 2009 to be less than 1.75:1.00;
      and

            

    

    

    
      	
              (c)  

            	
              prepay,
      redeem, purchase, defease or otherwise satisfy prior to the scheduled
      maturity thereof, in any manner, or make any payment in violation of any
      subordination terms of, any Indebtedness,
  except:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      prepayment of the Credit Extensions in accordance with the terms of the
      Bank of America Credit Facility
Agreement;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              regularly
      scheduled or required repayments, mandatory prepayments or redemptions of
      Indebtedness described on Schedule 7.02 of the Bank of America Credit
      Facility Agreement in respect of the RBS Credit Facility Agreement, the
      Credit Suisse Credit Facility Agreement, the AIG Credit Facility
      Agreement, the Commerzbank Credit Facility Agreement and the Berenberg
      Credit Facility Agreement; and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              other
      prepayments of Indebtedness described on Schedule 7.02 the Bank of America
      Credit Facility Agreement in respect of the RBS Credit Facility Agreement,
      the Credit Suisse Credit Facility Agreement, the AIG Credit Facility
      Agreement, the Commerzbank Credit Facility Agreement and the Berenberg
      Credit Facility Agreement,

            

    

    

    provided that (A) any such
prepayment of Indebtedness corresponds to an amortization payment due during the
Waiver Period and that was otherwise due under such loan facility without giving
effect to any amendment or modification occurring after the Amendment No. 1
Effective Date and (B) all such prepayments of Indebtedness shall occur on or
after January 4, 2010.

    

    For
purposes of (a), (b) and (c) above, all capitalized terms not otherwise defined
herein shall have the meaning assigned to such terms in the Bank of America
Credit Facility Agreement.

    

    
      	
              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 or
      waivers.  Except as amended or waived hereby, all other
      terms and conditions of the Charter remain unchanged and the Charter is
      hereby ratified and confirmed.  Without limiting the foregoing,
      the Guarantor acknowledges and agrees that its guarantee under Clause 53
      of the Charter, as amended hereby, is hereby ratified and
      confirmed.

            

    

    

    
      	
              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.

            

    

    

    
 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    
      	
              ADIRONDACK
      SHIPPING LLC, as Owner

               

              

                By:
      /s/ AFSpomebe  /s/ Asandro
      Van Aerde

                Name:
      AF Spomebe  
      Asandro Van Aerde 

                Title:
      Secretary 

              

               

               

               

            	
              FAIRFAX
      SHIPPING CORP., as Charterer

               

               

               

              By:
      /s/ William J.
      Carr                        
      

              Name: 
      William J. Carr

              Title: 
      President / Director 

               

            
	
              TBS
      INTERNATIONAL LIMITED, as Guarantor

               

              
                By:
      /s/ William J.
      Carr                        
      

                Name: 
      William J. Carr

                Title: 
      President / Director 

              

               

            	 
      

    

    

    

    

    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_10-7.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.7

    

      

      

      

      Date: as
of January12, 2010

      

      

      ADIRONDACK
SHIPPING LLC

      as
Owner

      

      

      FAIRFAX
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
SEMINOLE PRINCESS

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

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

      

      AMONG

      

      
        	
                (1)  

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

              

      

       

      
        	
                (2)  

              	
                FAIRFAX
      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]

      
        
          
            19113020
v1

          

           

        

        
           

          
            

          

        

        
           

        

      

      

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

      

      
        	
                ADIRONDACK
      SHIPPING LLC, as Owner

                 

                 

                 

                
                  By:
      /s/ Asandro Van
      Aerde

                  Name: Asandro
      Van Aerde 

                  Title:
      Secretary 

                

                 

              	
                FAIRFAX
      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-Fact

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