Document:

ex_10-20.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.20

    

      

      AMOROS
MARITIME CORP.

      UNSECURED
GUARANTY

      

      UNSECURED GUARANTY (“Guaranty”), dated
as of the 7th day of January, 2010 made by TBS International Public Limited
Company, an Irish public limited company (the “Guarantor”), in favor of AIG
Commercial Equipment Finance, Inc., a Delaware corporation
(“Lender”).

      

      WHEREAS, Lender has made, or
will make, loans, additional advances or other financial accommodations to
Amoros Maritime Corp., a Marshall Islands corporation (the “Borrower”) in the
principal amount of US$9,000,000.00 (the “Loan”) , and other borrowers in
connection and in accordance with that certain Loan Agreement dated February 29,
2008 between the Borrower, the other borrowers and guarantors named therein and
the Lender, as amended by a First Amendment to Loan Agreement dated March 27,
2009, and by that certain Second Amendment to Loan Agreement dated December 30,
2009 (as further amended, supplemented or otherwise modified from time to time,
the “Loan Agreement”), the Promissory Note in the principal amount of the Loan
by Borrower (the “Note”), the Ship Mortgage by Borrower, the other Loan
Documents by Borrower, and various other agreements, notes, leases or other
documents or instruments by Borrower in favor of Lender, whether heretofore, now
or hereafter executed (collectively, together with any amendments thereto and
renewals, refinancings and replacements therefore, the “Agreements”);
and

      

      WHEREAS, it is a condition to
the financing provided by, or the acquisition of the rights transferred to,
Lender under the Agreements that Guarantor, who has a financial interest in
Borrower, shall have executed and delivered this Guaranty.

      

      NOW, THEREFORE, in
consideration of the premises and to induce Lender to enter into or become a
party to the Agreements, Guarantor hereby agrees as follows:

      

      SECTION 1.  Guaranty. Guarantor hereby
absolutely, unconditionally and irrevocably guarantees, jointly and severally,
the prompt and punctual payment and due performance and observance of all
obligations of Borrower now or hereafter existing under the Agreements, which
may in any manner whatsoever be presently or hereafter due and owing, including
without limitation, the payment of all amounts now or hereafter due from
Borrower under the Note, the Loan Agreement and the other Agreements
(collectively, the “Obligations”).

      

      SECTION 2.  Guaranty
Absolute.  Guarantor jointly
and severally guarantees that the Obligations will be paid, performed and
observed strictly in accordance with the terms of the Agreements, regardless of
any law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of Lender with respect
thereto.  The liability of Guarantor under this Guaranty shall be
absolute and unconditional irrespective of:

      

      (i)           any
lack of validity, regularity or enforceability of any of the Agreements or any
other agreement or instrument relating thereto;

      

      (ii)           any
lack of validity, regularity or enforceability of this Guaranty or any other
agreement or instrument relating hereto;

      

      (iii)           any
modification or change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other modification, change,
amendment or waiver of or any consent to departure from any term of any of the
Agreements;

      

      (iv)           any
exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any other guaranty, for all
or any of the Obligations;

      

      (v)           any
failure on the part of Lender or any other person or entity to exercise, or any
delay in exercising, any right under the Agreements or any other document or
instrument delivered in connection therewith; or

      

      (vi)           any
other circumstance which might otherwise constitute a defense available to, or a
discharge of, Borrower, the Guarantor or any other guarantor with respect to the
Obligations (including, without limitation, all defenses based on suretyship or
impairment of collateral, and all defenses that Borrower may assert to the
repayment of the Obligations, including, without limitation, failure of
consideration, breach of warranty, fraud, payment, statute of frauds,
bankruptcy, lack of legal capacity, statute of limitations, lender liability,
accord and satisfaction, and usury), this Guaranty and the obligations of the
Guarantor under this Guaranty.

      

      Guarantor
hereby agrees that if Borrower or any other guarantor of all or a portion of the
Obligations is the subject of a bankruptcy proceeding or similar proceeding
under Title 11 of the U.S. Code or any similar legislation relating to
bankruptcy or insolvency, it will not assert the pendency of such proceeding or
any order entered therein as a defense to the timely payment of the
Obligations.  This Guaranty shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the
Obligations is rescinded or must otherwise be returned by Lender upon the
insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though
such payment had not been made.

      

      Guarantor’s
obligations and liability under this Guaranty shall be on a “joint and several”
basis along with Borrower to the same degree and extent as if Guarantor had been
and/or will be a co-principal obligor of the Obligations.  In the
event that there is more than one Guarantor under this Guaranty, or in the event
that there are other guarantors, endorsers or sureties of all or any portion of
the Obligations, Guarantor’s obligations and liability hereunder shall further
be on a “joint and several” basis along with such other guarantors, endorsers
and/or sureties.

      

      SECTION 3.  Waivers.  Guarantor hereby
waives:

      

      (i)           prompt­ness,
diligence, notice of acceptance and any other notice with respect to any of the
Obligations and this Guaranty;

      

      (ii)           any
requirement that Lender protect, secure, perfect or insure any security interest
or lien on any property subject thereto or exhaust any right to take any action
against Borrower or any other person or entity or any collateral;

      

      (iii)           any
right to receive notice of any disposition or retention by Lender of any
collateral and right of redemption relating to any collateral.

      

      (iv)           any
right to demand or require collateral security from Borrower or any other person
as provided under applicable law or otherwise;

      

      (v)           any
modification or amendment of the Obligations or any of the Agreements, or the
impairment of real security held for such Obligations, by Lender as provided
under applicable law or otherwise.

      

      (vi)           notice
of Lender’s acceptance of this Guaranty;

      

      (vii)           presentment
for payment of the Obligations, notice of dishonor and of nonpayment, notice of
intention to accelerate, notice of acceleration, protest and notice of protest,
collection or institution of any suit or other action by Lender in collection
thereof, including any notice of default in payment thereof, or other notice to,
or demand for payment thereof, on any party;

      

      (viii)           any
right to require Lender to notify Guarantor of any nonpayment relating to any
collateral directly or indirectly securing the Obligations, or notice of any
action or nonaction on the part of Borrower, Lender, or any other guarantor,
surety or endorser of the Obligations, or notice of the creation of any new or
additional Obligations subject to this Guaranty;

      

      (ix)           any
right to require Lender to notify Guarantor of the terms, time and place of any
public or private sale of any collateral directly or indirectly securing the
Obligations;

      

      (x)           any
election of remedies by Lender that may destroy or impair Guarantor’s
subrogation rights or Guarantor’s right to proceed for reimbursement against
Borrower or any other guarantor, surety or endorser of the Obligations,
including without limitation, any loss of rights Guarantor may suffer by reason
of any law limiting, qualifying, or discharging the Obligations;

      

      (xi)           any
disability or other defense of Borrower, or any other guarantor, surety or
endorser, or any other person, or by reason of the cessation from any cause
whatsoever, other than payment in full of the Obligations; and

      

      (xii)           any
statute of limitations or prescriptive period, if at the time an action or suit
brought by Lender against Guarantor is commenced, there are any outstanding
Obligations which are barred by any applicable statute of limitations or
prescriptive period.

      

      SECTION 4.  Subrogation.  Guarantor hereby
agrees it will not exer­cise any rights which it may acquire by way of
subrogation under this Guaranty, by any payment made hereunder or otherwise,
until all the Obligations shall have been paid in full.  If any amount
shall be paid to the Guarantor on account of such subroga­tion rights at any
time when all the Obligations shall not have been paid in full, such amount
shall be held in trust for the benefit of Lender and shall forthwith be paid to
Lender to be credit­ed and applied upon the Obligations, whether matured or
unmatured, in accordance with the terms of the Agreements.  If
(i) the Guarantor shall make payment to Lender of all or any part of the
Obligations and (ii) all the Obligations shall be paid, performed and observed
in full, Lender will, at the Guarantor’s request, execute and deliver to the
Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to the Guarantor of
an interest in the Obligations resulting from such payment by the
Guarantor.

      

      SECTION 5.  Representations
and Warranties.  Guarantor hereby
represents and warrants as follows:

      

      (a)           Due Execution,
Etc.  The execution, delivery and performance (including the
incurrence of the Obligations hereunder) by the Guarantor of this Guaranty do
not and will not (i) contravene Guarantor’s organizational documents or any law,
rule, regulation, order, writ, judgment, injunction, decree, determination or
award or any contractual restriction binding on or affecting the Guarantor or
any of its properties, or (ii) result in or require the creation or imposition
of any lien (other than pursuant hereto) upon or with respect to any of the
Guarantor’s properties.  The Guarantor has been duly formed and is in
good standing in its jurisdiction of organization and is duly qualified as a
foreign business entity in all jurisdictions where it must be qualified pursuant
to applicable law.  The Guarantor is not in default under any such
law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award or any such contractual restriction, which default would have a
Material Adverse Effect on the Guarantor or on the ability of the Guarantor to
carry out its obligations under this Guaranty.

      

      (b)           Government
Consents.  No authorization, consent, approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body is required for the due execution, delivery or performance by the Guarantor
of this Guaranty.

      

      (c)           Legal, Valid and Binding
Nature.  This Guaranty is the legal, valid and binding
obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms.

      

      (d)           Solvency.  The
fair value of the property of the Guarantor exceeds the total amount of
liabilities (including, without limitation, contingent liabilities) of the
Guarantor; the present fair market value of the assets of the Guarantor exceeds
the amount that will be required to pay the probable liability of the Guarantor
on its existing debts as they become absolute and matured; the Guarantor is able
to realize upon its assets and pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of
business; the Guarantor does not intend to, and does not believe that it will,
incur debts or liabilities beyond the Guarantor’s ability to pay as such debts
and liabilities mature; and the Guarantor is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which
the property remaining with the Guarantor would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the
industry in which the Guarantor is engaged.  In computing the amount
of contingent liabilities at any time, it is intended that such liabilities will
be computed at the amount which, in light of all facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

      

      (e)           Absence of
Litigation.  There are no actions, suits, investigations,
litigation or proceedings pending or, to the knowledge of the Guarantor,
threatened against or affecting the Guarantor or the properties of the Guarantor
before any court, arbitrator or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, or which purports to
affect any part of the transactions contemplated hereby or by the Agreements or
the legality, validity or enforceability of this Guaranty.  There are
no actions, suits, investigations, litigation or proceedings pending or
threatened against or affecting the Guarantor or its affiliates or subsidiaries
of the Guarantor or the properties of the Guarantor or its affiliates or
subsidiaries before any court, arbitrator or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign which,
if determined adversely to the Guarantor, would have a Material Adverse Effect
on the financial condition or continued operation of Guarantor or its affiliates
or subsidiaries on a consolidated basis or any part of the transactions
contemplated hereby or by the Agreements.

      

      (f)           Payment of
Taxes.  The Guarantor has filed all tax returns (federal,
provincial, local and foreign) required to be filed and paid all taxes shown
thereon to be due, including interest and penalties, except for such taxes as
are being contested in good faith and by proper proceedings and with respect to
which appropriate reserves are being maintained by the Guarantor, or except
where the failure to file such returns or pay such taxes would not have a
Material Adverse Effect on the Guarantor or otherwise on the ability of the
Guarantor to carry out its obligations under this Guaranty.

      

      SECTION 6.  Integration.  This Guaranty
together with the Loan Documents constitutes the entire agreement and
understanding between Lender and Guarantor relating to the subject matter
hereof, and supersedes all prior negotiations, agreements and understandings
relating to such subject matter.  In entering into this Guaranty,
Guarantor acknowledges that it is relying on no statement, representation,
warranty, covenant or agreement of any kind made by Lender or any employee or
agent of Lender.

      

      SECTION 7.  Amendments,
Etc.  No amendment or
waiver of any provision of this Guaranty or consent to any departure by the
Guarantor herefrom shall in any event be effective unless the same shall be in
writing and signed by Lender, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which
given.

      

      SECTION 8.  Addresses
for Notices.  All notices,
requests, demands and other communications provided for hereunder shall be in
writing and sent in accordance with the terms and conditions of the Loan
Agreement.

       
 

      SECTION 9.  No
Waiver; Remedies.  No failure on the
part of Lender to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the
exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law or in any of the
Agreements or other Loan Documents.

      

      SECTION 10.  Right of
Set-off.  Upon the
occurrence and during the continuance of any Event of Default Lender is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by Lender to or for the credit or the account of the Guarantor
against any and all of the obligations of the Guarantor now or hereafter
existing under this Guaranty, irrespective of whether or not Lender shall have
made any demand under this Guaranty and although such obligations may be
contingent and unmatured.  Lender agrees promptly to notify the
Guarantor after any such set-off and application, provided that the failure to
give such notice shall not affect the validity of such set-off and
application.  The rights of Lender under this Section are in addition
to the other rights and remedies (including, without limitation, other rights of
set-off) which Lender may have.

      

      SECTION 11.  Continuing
Guaranty; Transfer of Obligations.  This Guaranty is
a continuing guaranty and shall (i) remain in full force and effect until
payment in full of the Obligations and all other amounts payable under this
Guaranty, (ii) be binding upon the Guarantor and its successors and assigns, and
(iii) inure to the benefit of and be enforceable by Lender and its successors,
transferees and assigns.  Without limiting the generality of the
foregoing clause (iii), Lender may assign or otherwise transfer the right to
collect the Obligations to any other person or entity, and such other person or
entity shall thereupon become vested with all the rights in respect thereof
granted to Lender herein or otherwise.

      

      SECTION 12.  Indemnification.  Guarantor hereby
agrees, jointly and severally, to indemnify and hold harmless Lender and its
affiliates and their respective directors, officers, employees and agents,
including all professionals (each an “Indemnified Party”) from and against any
and all expenses, losses, claims, damages and liabilities (including, without
limitation, all legal fees and disbursements of attorneys and other
professionals incurred by or asserted against any Indemnified Party in
connection with or arising out of, relating to, or by reason of any
investigation, litigation or proceeding arising out of, relating to or in
connection with any claims made by any person or entity in any way relating to
this Guaranty or the transactions contemplated hereby, but excluding therefrom
all expenses, losses, claims, damages, and liabilities arising out of or
resulting from the gross negligence or willful misconduct of any Indemnified
Party.

      

      SECTION 13.  GOVERNING
LAW.  THIS GUARANTY AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE),
INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

      

      SECTION 14.  JUDICIAL
PROCEEDINGS.  GUARANTOR AND, BY
ITS ACCEPTANCE HEREOF, LENDER, HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES (TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS GUARANTY AND
AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A
JURY.  THE PARTIES AGREE THAT ANY ACTION OR PROCEEDING ARISING UNDER
OR RELATED TO THIS GUARANTY MAY BE COMMENCED IN ANY FEDERAL OR STATE COURT
SITTING IN THE SOUTHERN DISTRICT OF NEW YORK AND THE PARTIES IRREVOCABLY SUBMIT
TO THE JURISDICTION OF EACH SUCH COURT AND AGREE NOT TO ASSERT, BY WAY OF
MOTION, AS A DEFENSE OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY
CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT
THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE
VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THE AGREEMENT OR
THE SUBJECT MATTER THEREOF OR THE TRANSACTION CONTEMPLATED HEREBY OR THEREBY MAY
NOT BE ENFORCED IN OR BY SUCH COURT.  THE
GUARANTOR AND LENDER AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

      

      SECTION 15.  DEFINITIONS.  Capitalized terms
used but not defined herein shall have the meanings set forth in the Loan
Agreement.

      

      SECTION 16.  COLLATERAL.  Guarantor hereby
waives any and all rights to claim a lien or other security interest in and to
any of the Vessels securing the obligations arising under the Loan
Agreement.  In the event of any Event of Default, Guarantor shall
waive any possessory or other right in and to all such Vessels.

      

      

      [
signature pages follow ]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
Guarantor has executed this Guaranty as of the date first above
written.

      

      
      

      
        GUARANTOR:

      

      PRESENT
WHEN THE COMMON SEAL OF

      TBS
INTERNATIONAL PUBLIC LIMITED COMPANY,

      an
Irish public limited company, was affixed hereto

      

      

      By:    /s/
Christophil B. Costas

      Name:
Christophil B. Costas

      Title:
Attorney-in-Fact

      

      

      
 

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      LANCASTER
MARITIME CORP.

      UNSECURED
GUARANTY

      

      UNSECURED GUARANTY (“Guaranty”), dated
as of the 7th day of January, 2010 made by TBS International Public Limited
Company, an Irish public limited company (the “Guarantor”), in favor of AIG
Commercial Equipment Finance, Inc., a Delaware corporation
(“Lender”).

      

      WHEREAS, Lender has made, or
will make, loans, additional advances or other financial accommodations to
Lancaster Maritime Corp., a Marshall Islands corporation (the “Borrower”) in the
principal amount of US$13,000,000.00 (the “Loan”) , and other borrowers in
connection and in accordance with that certain Loan Agreement dated February 29,
2008 between the Borrower, the other borrowers and guarantors named therein and
the Lender, as amended by a First Amendment to Loan Agreement dated March 27,
2009, and by that certain Second Amendment to Loan Agreement dated December 30,
2009 (as further amended, supplemented or otherwise modified from time to time,
the “Loan Agreement”), the Promissory Note in the principal amount of the Loan
by Borrower (the “Note”), the Ship Mortgage by Borrower, the other Loan
Documents by Borrower, and various other agreements, notes, leases or other
documents or instruments by Borrower in favor of Lender, whether heretofore, now
or hereafter executed (collectively, together with any amendments thereto and
renewals, refinancings and replacements therefore, the “Agreements”);
and

      

      WHEREAS, it is a condition to
the financing provided by, or the acquisition of the rights transferred to,
Lender under the Agreements that Guarantor, who has a financial interest in
Borrower, shall have executed and delivered this Guaranty.

      

      NOW, THEREFORE, in
consideration of the premises and to induce Lender to enter into or become a
party to the Agreements, Guarantor hereby agrees as follows:

      

      SECTION 1.  Guaranty. Guarantor hereby
absolutely, unconditionally and irrevocably guarantees, jointly and severally,
the prompt and punctual payment and due performance and observance of all
obligations of Borrower now or hereafter existing under the Agreements, which
may in any manner whatsoever be presently or hereafter due and owing, including
without limitation, the payment of all amounts now or hereafter due from
Borrower under the Note, the Loan Agreement and the other Agreements
(collectively, the “Obligations”).

      

      SECTION 2.  Guaranty
Absolute.  Guarantor jointly
and severally guarantees that the Obligations will be paid, performed and
observed strictly in accordance with the terms of the Agreements, regardless of
any law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of Lender with respect
thereto.  The liability of Guarantor under this Guaranty shall be
absolute and unconditional irrespective of:

      

      (i)           any
lack of validity, regularity or enforceability of any of the Agreements or any
other agreement or instrument relating thereto;

      

      (ii)           any
lack of validity, regularity or enforceability of this Guaranty or any other
agreement or instrument relating hereto;

      

      (iii)           any
modification or change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other modification, change,
amendment or waiver of or any consent to departure from any term of any of the
Agreements;

      

      (iv)           any
exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any other guaranty, for all
or any of the Obligations;

      

      (v)           any
failure on the part of Lender or any other person or entity to exercise, or any
delay in exercising, any right under the Agreements or any other document or
instrument delivered in connection therewith; or

      

      (vi)           any
other circumstance which might otherwise constitute a defense available to, or a
discharge of, Borrower, the Guarantor or any other guarantor with respect to the
Obligations (including, without limitation, all defenses based on suretyship or
impairment of collateral, and all defenses that Borrower may assert to the
repayment of the Obligations, including, without limitation, failure of
consideration, breach of warranty, fraud, payment, statute of frauds,
bankruptcy, lack of legal capacity, statute of limitations, lender liability,
accord and satisfaction, and usury), this Guaranty and the obligations of the
Guarantor under this Guaranty.

      

      Guarantor
hereby agrees that if Borrower or any other guarantor of all or a portion of the
Obligations is the subject of a bankruptcy proceeding or similar proceeding
under Title 11 of the U.S. Code or any similar legislation relating to
bankruptcy or insolvency, it will not assert the pendency of such proceeding or
any order entered therein as a defense to the timely payment of the
Obligations.  This Guaranty shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the
Obligations is rescinded or must otherwise be returned by Lender upon the
insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though
such payment had not been made.

      

      Guarantor’s
obligations and liability under this Guaranty shall be on a “joint and several”
basis along with Borrower to the same degree and extent as if Guarantor had been
and/or will be a co-principal obligor of the Obligations.  In the
event that there is more than one Guarantor under this Guaranty, or in the event
that there are other guarantors, endorsers or sureties of all or any portion of
the Obligations, Guarantor’s obligations and liability hereunder shall further
be on a “joint and several” basis along with such other guarantors, endorsers
and/or sureties.

      

      SECTION 3.  Waivers.  Guarantor hereby
waives:

      

      (i)           prompt­ness,
diligence, notice of acceptance and any other notice with respect to any of the
Obligations and this Guaranty;

      

      (ii)           any
requirement that Lender protect, secure, perfect or insure any security interest
or lien on any property subject thereto or exhaust any right to take any action
against Borrower or any other person or entity or any collateral;

      

      (iii)           any
right to receive notice of any disposition or retention by Lender of any
collateral and right of redemption relating to any collateral.

      

      (iv)           any
right to demand or require collateral security from Borrower or any other person
as provided under applicable law or otherwise;

      

      (v)           any
modification or amendment of the Obligations or any of the Agreements, or the
impairment of real security held for such Obligations, by Lender as provided
under applicable law or otherwise.

      

      (vi)           notice
of Lender’s acceptance of this Guaranty;

      

      (vii)           presentment
for payment of the Obligations, notice of dishonor and of nonpayment, notice of
intention to accelerate, notice of acceleration, protest and notice of protest,
collection or institution of any suit or other action by Lender in collection
thereof, including any notice of default in payment thereof, or other notice to,
or demand for payment thereof, on any party;

      

      (viii)           any
right to require Lender to notify Guarantor of any nonpayment relating to any
collateral directly or indirectly securing the Obligations, or notice of any
action or nonaction on the part of Borrower, Lender, or any other guarantor,
surety or endorser of the Obligations, or notice of the creation of any new or
additional Obligations subject to this Guaranty;

      

      (ix)           any
right to require Lender to notify Guarantor of the terms, time and place of any
public or private sale of any collateral directly or indirectly securing the
Obligations;

      

      (x)           any
election of remedies by Lender that may destroy or impair Guarantor’s
subrogation rights or Guarantor’s right to proceed for reimbursement against
Borrower or any other guarantor, surety or endorser of the Obligations,
including without limitation, any loss of rights Guarantor may suffer by reason
of any law limiting, qualifying, or discharging the Obligations;

      

      (xi)           any
disability or other defense of Borrower, or any other guarantor, surety or
endorser, or any other person, or by reason of the cessation from any cause
whatsoever, other than payment in full of the Obligations; and

      

      (xii)           any
statute of limitations or prescriptive period, if at the time an action or suit
brought by Lender against Guarantor is commenced, there are any outstanding
Obligations which are barred by any applicable statute of limitations or
prescriptive period.

      

      SECTION 4.  Subrogation.  Guarantor hereby
agrees it will not exer­cise any rights which it may acquire by way of
subrogation under this Guaranty, by any payment made hereunder or otherwise,
until all the Obligations shall have been paid in full.  If any amount
shall be paid to the Guarantor on account of such subroga­tion rights at any
time when all the Obligations shall not have been paid in full, such amount
shall be held in trust for the benefit of Lender and shall forthwith be paid to
Lender to be credit­ed and applied upon the Obligations, whether matured or
unmatured, in accordance with the terms of the Agreements.  If
(i) the Guarantor shall make payment to Lender of all or any part of the
Obligations and (ii) all the Obligations shall be paid, performed and observed
in full, Lender will, at the Guarantor’s request, execute and deliver to the
Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to the Guarantor of
an interest in the Obligations resulting from such payment by the
Guarantor.

      

      SECTION 5.  Representations
and Warranties.  Guarantor hereby
represents and warrants as follows:

      

      (a)           Due Execution,
Etc.  The execution, delivery and performance (including the
incurrence of the Obligations hereunder) by the Guarantor of this Guaranty do
not and will not (i) contravene Guarantor’s organizational documents or any law,
rule, regulation, order, writ, judgment, injunction, decree, determination or
award or any contractual restriction binding on or affecting the Guarantor or
any of its properties, or (ii) result in or require the creation or imposition
of any lien (other than pursuant hereto) upon or with respect to any of the
Guarantor’s properties.  The Guarantor has been duly formed and is in
good standing in its jurisdiction of organization and is duly qualified as a
foreign business entity in all jurisdictions where it must be qualified pursuant
to applicable law.  The Guarantor is not in default under any such
law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award or any such contractual restriction, which default would have a
Material Adverse Effect on the Guarantor or on the ability of the Guarantor to
carry out its obligations under this Guaranty.

      

      (b)           Government
Consents.  No authorization, consent, approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body is required for the due execution, delivery or performance by the Guarantor
of this Guaranty.

      

      (c)           Legal, Valid and Binding
Nature.  This Guaranty is the legal, valid and binding
obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms.

      

      (d)           Solvency.  The
fair value of the property of the Guarantor exceeds the total amount of
liabilities (including, without limitation, contingent liabilities) of the
Guarantor; the present fair market value of the assets of the Guarantor exceeds
the amount that will be required to pay the probable liability of the Guarantor
on its existing debts as they become absolute and matured; the Guarantor is able
to realize upon its assets and pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of
business; the Guarantor does not intend to, and does not believe that it will,
incur debts or liabilities beyond the Guarantor’s ability to pay as such debts
and liabilities mature; and the Guarantor is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which
the property remaining with the Guarantor would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the
industry in which the Guarantor is engaged.  In computing the amount
of contingent liabilities at any time, it is intended that such liabilities will
be computed at the amount which, in light of all facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

      

      (e)           Absence of
Litigation.  There are no actions, suits, investigations,
litigation or proceedings pending or, to the knowledge of the Guarantor,
threatened against or affecting the Guarantor or the properties of the Guarantor
before any court, arbitrator or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, or which purports to
affect any part of the transactions contemplated hereby or by the Agreements or
the legality, validity or enforceability of this Guaranty.  There are
no actions, suits, investigations, litigation or proceedings pending or
threatened against or affecting the Guarantor or its affiliates or subsidiaries
of the Guarantor or the properties of the Guarantor or its affiliates or
subsidiaries before any court, arbitrator or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign which,
if determined adversely to the Guarantor, would have a Material Adverse Effect
on the financial condition or continued operation of Guarantor or its affiliates
or subsidiaries on a consolidated basis or any part of the transactions
contemplated hereby or by the Agreements.

      

      (f)           Payment of
Taxes.  The Guarantor has filed all tax returns (federal,
provincial, local and foreign) required to be filed and paid all taxes shown
thereon to be due, including interest and penalties, except for such taxes as
are being contested in good faith and by proper proceedings and with respect to
which appropriate reserves are being maintained by the Guarantor, or except
where the failure to file such returns or pay such taxes would not have a
Material Adverse Effect on the Guarantor or otherwise on the ability of the
Guarantor to carry out its obligations under this Guaranty.

      

      SECTION 6.  Integration.  This Guaranty
together with the Loan Documents constitutes the entire agreement and
understanding between Lender and Guarantor relating to the subject matter
hereof, and supersedes all prior negotiations, agreements and understandings
relating to such subject matter.  In entering into this Guaranty,
Guarantor acknowledges that it is relying on no statement, representation,
warranty, covenant or agreement of any kind made by Lender or any employee or
agent of Lender.

      

      SECTION 7.  Amendments,
Etc.  No amendment or
waiver of any provision of this Guaranty or consent to any departure by the
Guarantor herefrom shall in any event be effective unless the same shall be in
writing and signed by Lender, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which
given.

      

      SECTION 8.  Addresses
for Notices.  All notices,
requests, demands and other communications provided for hereunder shall be in
writing and sent in accordance with the terms and conditions of the Loan
Agreement.

       
 

      SECTION 9.  No
Waiver; Remedies.  No failure on the
part of Lender to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the
exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law or in any of the
Agreements or other Loan Documents.

      

      SECTION 10.  Right of
Set-off.  Upon the
occurrence and during the continuance of any Event of Default Lender is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by Lender to or for the credit or the account of the Guarantor
against any and all of the obligations of the Guarantor now or hereafter
existing under this Guaranty, irrespective of whether or not Lender shall have
made any demand under this Guaranty and although such obligations may be
contingent and unmatured.  Lender agrees promptly to notify the
Guarantor after any such set-off and application, provided that the failure to
give such notice shall not affect the validity of such set-off and
application.  The rights of Lender under this Section are in addition
to the other rights and remedies (including, without limitation, other rights of
set-off) which Lender may have.

      

      SECTION 11.  Continuing
Guaranty; Transfer of Obligations.  This Guaranty is
a continuing guaranty and shall (i) remain in full force and effect until
payment in full of the Obligations and all other amounts payable under this
Guaranty, (ii) be binding upon the Guarantor and its successors and assigns, and
(iii) inure to the benefit of and be enforceable by Lender and its successors,
transferees and assigns.  Without limiting the generality of the
foregoing clause (iii), Lender may assign or otherwise transfer the right to
collect the Obligations to any other person or entity, and such other person or
entity shall thereupon become vested with all the rights in respect thereof
granted to Lender herein or otherwise.

      

      SECTION 12.  Indemnification.  Guarantor hereby
agrees, jointly and severally, to indemnify and hold harmless Lender and its
affiliates and their respective directors, officers, employees and agents,
including all professionals (each an “Indemnified Party”) from and against any
and all expenses, losses, claims, damages and liabilities (including, without
limitation, all legal fees and disbursements of attorneys and other
professionals incurred by or asserted against any Indemnified Party in
connection with or arising out of, relating to, or by reason of any
investigation, litigation or proceeding arising out of, relating to or in
connection with any claims made by any person or entity in any way relating to
this Guaranty or the transactions contemplated hereby, but excluding therefrom
all expenses, losses, claims, damages, and liabilities arising out of or
resulting from the gross negligence or willful misconduct of any Indemnified
Party.

      

      SECTION 13.  GOVERNING
LAW.  THIS GUARANTY AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE),
INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

      

      SECTION 14.  JUDICIAL
PROCEEDINGS.  GUARANTOR AND, BY
ITS ACCEPTANCE HEREOF, LENDER, HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES (TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS GUARANTY AND
AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A
JURY.  THE PARTIES AGREE THAT ANY ACTION OR PROCEEDING ARISING UNDER
OR RELATED TO THIS GUARANTY MAY BE COMMENCED IN ANY FEDERAL OR STATE COURT
SITTING IN THE SOUTHERN DISTRICT OF NEW YORK AND THE PARTIES IRREVOCABLY SUBMIT
TO THE JURISDICTION OF EACH SUCH COURT AND AGREE NOT TO ASSERT, BY WAY OF
MOTION, AS A DEFENSE OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY
CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT
THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE
VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THE AGREEMENT OR
THE SUBJECT MATTER THEREOF OR THE TRANSACTION CONTEMPLATED HEREBY OR THEREBY MAY
NOT BE ENFORCED IN OR BY SUCH COURT.  THE
GUARANTOR AND LENDER AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

      

      SECTION 15.  DEFINITIONS.  Capitalized terms
used but not defined herein shall have the meanings set forth in the Loan
Agreement.

      

      SECTION 16.  COLLATERAL.  Guarantor hereby
waives any and all rights to claim a lien or other security interest in and to
any of the Vessels securing the obligations arising under the Loan
Agreement.  In the event of any Event of Default, Guarantor shall
waive any possessory or other right in and to all such Vessels.

      

      

      [
signature pages follow ]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the
Guarantor has executed this Guaranty as of the date first above
written.

      

      
      

      
        GUARANTOR:

      

      PRESENT
WHEN THE COMMON SEAL OF

      TBS
INTERNATIONAL PUBLIC LIMITED COMPANY,

      an
Irish public limited company, was affixed hereto

      

    

    
      By:    /s/
Christophil B. Costas

      Name:
Christophil B. Costas

      Title:
Attorney-in-Fact

    

     

    
      

       

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        

        CHATHAM
MARITIME CORP.

        UNSECURED
GUARANTY

        

        UNSECURED GUARANTY (“Guaranty”), dated
as of the 7th day of January, 2010 made by TBS International Public Limited
Company, an Irish public limited company (the “Guarantor”), in favor of AIG
Commercial Equipment Finance, Inc., a Delaware corporation
(“Lender”).

        

        WHEREAS, Lender has made, or
will make, loans, additional advances or other financial accommodations to
Chatham Maritime Corp., a Marshall Islands corporation (the “Borrower”) in the
principal amount of US$13,000,000.00 (the “Loan”) , and other borrowers in
connection and in accordance with that certain Loan Agreement dated February 29,
2008 between the Borrower, the other borrowers and guarantors named therein and
the Lender, as amended by a First Amendment to Loan Agreement dated March 27,
2009, and by that certain Second Amendment to Loan Agreement dated December 30,
2010 (as further amended, supplemented or otherwise modified from time to time,
the “Loan Agreement”), the Promissory Note in the principal amount of the Loan
by Borrower (the “Note”), the Ship Mortgage by Borrower, the other Loan
Documents by Borrower, and various other agreements, notes, leases or other
documents or instruments by Borrower in favor of Lender, whether heretofore, now
or hereafter executed (collectively, together with any amendments thereto and
renewals, refinancings and replacements therefore, the “Agreements”);
and

        

        WHEREAS, it is a condition to
the financing provided by, or the acquisition of the rights transferred to,
Lender under the Agreements that Guarantor, who has a financial interest in
Borrower, shall have executed and delivered this Guaranty.

        

        NOW, THEREFORE, in
consideration of the premises and to induce Lender to enter into or become a
party to the Agreements, Guarantor hereby agrees as follows:

        

        SECTION 1.  Guaranty. Guarantor hereby
absolutely, unconditionally and irrevocably guarantees, jointly and severally,
the prompt and punctual payment and due performance and observance of all
obligations of Borrower now or hereafter existing under the Agreements, which
may in any manner whatsoever be presently or hereafter due and owing, including
without limitation, the payment of all amounts now or hereafter due from
Borrower under the Note, the Loan Agreement and the other Agreements
(collectively, the “Obligations”).

        

        SECTION 2.  Guaranty
Absolute.  Guarantor jointly
and severally guarantees that the Obligations will be paid, performed and
observed strictly in accordance with the terms of the Agreements, regardless of
any law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of Lender with respect
thereto.  The liability of Guarantor under this Guaranty shall be
absolute and unconditional irrespective of:

        

        (i)           any
lack of validity, regularity or enforceability of any of the Agreements or any
other agreement or instrument relating thereto;

        

        (ii)           any
lack of validity, regularity or enforceability of this Guaranty or any other
agreement or instrument relating hereto;

        

        (iii)           any
modification or change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other modification, change,
amendment or waiver of or any consent to departure from any term of any of the
Agreements;

        

        (iv)           any
exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any other guaranty, for all
or any of the Obligations;

        

        (v)           any
failure on the part of Lender or any other person or entity to exercise, or any
delay in exercising, any right under the Agreements or any other document or
instrument delivered in connection therewith; or

        

        (vi)           any
other circumstance which might otherwise constitute a defense available to, or a
discharge of, Borrower, the Guarantor or any other guarantor with respect to the
Obligations (including, without limitation, all defenses based on suretyship or
impairment of collateral, and all defenses that Borrower may assert to the
repayment of the Obligations, including, without limitation, failure of
consideration, breach of warranty, fraud, payment, statute of frauds,
bankruptcy, lack of legal capacity, statute of limitations, lender liability,
accord and satisfaction, and usury), this Guaranty and the obligations of the
Guarantor under this Guaranty.

        

        Guarantor
hereby agrees that if Borrower or any other guarantor of all or a portion of the
Obligations is the subject of a bankruptcy proceeding or similar proceeding
under Title 11 of the U.S. Code or any similar legislation relating to
bankruptcy or insolvency, it will not assert the pendency of such proceeding or
any order entered therein as a defense to the timely payment of the
Obligations.  This Guaranty shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the
Obligations is rescinded or must otherwise be returned by Lender upon the
insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though
such payment had not been made.

        

        Guarantor’s
obligations and liability under this Guaranty shall be on a “joint and several”
basis along with Borrower to the same degree and extent as if Guarantor had been
and/or will be a co-principal obligor of the Obligations.  In the
event that there is more than one Guarantor under this Guaranty, or in the event
that there are other guarantors, endorsers or sureties of all or any portion of
the Obligations, Guarantor’s obligations and liability hereunder shall further
be on a “joint and several” basis along with such other guarantors, endorsers
and/or sureties.

        

        SECTION 3.  Waivers.  Guarantor hereby
waives:

        

        (i)           prompt­ness,
diligence, notice of acceptance and any other notice with respect to any of the
Obligations and this Guaranty;

        

        (ii)           any
requirement that Lender protect, secure, perfect or insure any security interest
or lien on any property subject thereto or exhaust any right to take any action
against Borrower or any other person or entity or any collateral;

        

        (iii)           any
right to receive notice of any disposition or retention by Lender of any
collateral and right of redemption relating to any collateral.

        

        (iv)           any
right to demand or require collateral security from Borrower or any other person
as provided under applicable law or otherwise;

        

        (v)           any
modification or amendment of the Obligations or any of the Agreements, or the
impairment of real security held for such Obligations, by Lender as provided
under applicable law or otherwise.

        

        (vi)           notice
of Lender’s acceptance of this Guaranty;

        

        (vii)           presentment
for payment of the Obligations, notice of dishonor and of nonpayment, notice of
intention to accelerate, notice of acceleration, protest and notice of protest,
collection or institution of any suit or other action by Lender in collection
thereof, including any notice of default in payment thereof, or other notice to,
or demand for payment thereof, on any party;

        

        (viii)           any
right to require Lender to notify Guarantor of any nonpayment relating to any
collateral directly or indirectly securing the Obligations, or notice of any
action or nonaction on the part of Borrower, Lender, or any other guarantor,
surety or endorser of the Obligations, or notice of the creation of any new or
additional Obligations subject to this Guaranty;

        

        (ix)           any
right to require Lender to notify Guarantor of the terms, time and place of any
public or private sale of any collateral directly or indirectly securing the
Obligations;

        

        (x)           any
election of remedies by Lender that may destroy or impair Guarantor’s
subrogation rights or Guarantor’s right to proceed for reimbursement against
Borrower or any other guarantor, surety or endorser of the Obligations,
including without limitation, any loss of rights Guarantor may suffer by reason
of any law limiting, qualifying, or discharging the Obligations;

        

        (xi)           any
disability or other defense of Borrower, or any other guarantor, surety or
endorser, or any other person, or by reason of the cessation from any cause
whatsoever, other than payment in full of the Obligations; and

        

        (xii)           any
statute of limitations or prescriptive period, if at the time an action or suit
brought by Lender against Guarantor is commenced, there are any outstanding
Obligations which are barred by any applicable statute of limitations or
prescriptive period.

        

        SECTION 4.  Subrogation.  Guarantor hereby
agrees it will not exer­cise any rights which it may acquire by way of
subrogation under this Guaranty, by any payment made hereunder or otherwise,
until all the Obligations shall have been paid in full.  If any amount
shall be paid to the Guarantor on account of such subroga­tion rights at any
time when all the Obligations shall not have been paid in full, such amount
shall be held in trust for the benefit of Lender and shall forthwith be paid to
Lender to be credit­ed and applied upon the Obligations, whether matured or
unmatured, in accordance with the terms of the Agreements.  If
(i) the Guarantor shall make payment to Lender of all or any part of the
Obligations and (ii) all the Obligations shall be paid, performed and observed
in full, Lender will, at the Guarantor’s request, execute and deliver to the
Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to the Guarantor of
an interest in the Obligations resulting from such payment by the
Guarantor.

        

        SECTION 5.  Representations
and Warranties.  Guarantor hereby
represents and warrants as follows:

        

        (a)           Due Execution,
Etc.  The execution, delivery and performance (including the
incurrence of the Obligations hereunder) by the Guarantor of this Guaranty do
not and will not (i) contravene Guarantor’s organizational documents or any law,
rule, regulation, order, writ, judgment, injunction, decree, determination or
award or any contractual restriction binding on or affecting the Guarantor or
any of its properties, or (ii) result in or require the creation or imposition
of any lien (other than pursuant hereto) upon or with respect to any of the
Guarantor’s properties.  The Guarantor has been duly formed and is in
good standing in its jurisdiction of organization and is duly qualified as a
foreign business entity in all jurisdictions where it must be qualified pursuant
to applicable law.  The Guarantor is not in default under any such
law, rule, regulation, order, writ, judgment, injunction, decree, determination
or award or any such contractual restriction, which default would have a
Material Adverse Effect on the Guarantor or on the ability of the Guarantor to
carry out its obligations under this Guaranty.

        

        (b)           Government
Consents.  No authorization, consent, approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body is required for the due execution, delivery or performance by the Guarantor
of this Guaranty.

        

        (c)           Legal, Valid and Binding
Nature.  This Guaranty is the legal, valid and binding
obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms.

        

        (d)           Solvency.  The
fair value of the property of the Guarantor exceeds the total amount of
liabilities (including, without limitation, contingent liabilities) of the
Guarantor; the present fair market value of the assets of the Guarantor exceeds
the amount that will be required to pay the probable liability of the Guarantor
on its existing debts as they become absolute and matured; the Guarantor is able
to realize upon its assets and pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of
business; the Guarantor does not intend to, and does not believe that it will,
incur debts or liabilities beyond the Guarantor’s ability to pay as such debts
and liabilities mature; and the Guarantor is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which
the property remaining with the Guarantor would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the
industry in which the Guarantor is engaged.  In computing the amount
of contingent liabilities at any time, it is intended that such liabilities will
be computed at the amount which, in light of all facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

        

        (e)           Absence of
Litigation.  There are no actions, suits, investigations,
litigation or proceedings pending or, to the knowledge of the Guarantor,
threatened against or affecting the Guarantor or the properties of the Guarantor
before any court, arbitrator or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, or which purports to
affect any part of the transactions contemplated hereby or by the Agreements or
the legality, validity or enforceability of this Guaranty.  There are
no actions, suits, investigations, litigation or proceedings pending or
threatened against or affecting the Guarantor or its affiliates or subsidiaries
of the Guarantor or the properties of the Guarantor or its affiliates or
subsidiaries before any court, arbitrator or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign which,
if determined adversely to the Guarantor, would have a Material Adverse Effect
on the financial condition or continued operation of Guarantor or its affiliates
or subsidiaries on a consolidated basis or any part of the transactions
contemplated hereby or by the Agreements.

        

        (f)           Payment of
Taxes.  The Guarantor has filed all tax returns (federal,
provincial, local and foreign) required to be filed and paid all taxes shown
thereon to be due, including interest and penalties, except for such taxes as
are being contested in good faith and by proper proceedings and with respect to
which appropriate reserves are being maintained by the Guarantor, or except
where the failure to file such returns or pay such taxes would not have a
Material Adverse Effect on the Guarantor or otherwise on the ability of the
Guarantor to carry out its obligations under this Guaranty.

        

        SECTION 6.  Integration.  This Guaranty
together with the Loan Documents constitutes the entire agreement and
understanding between Lender and Guarantor relating to the subject matter
hereof, and supersedes all prior negotiations, agreements and understandings
relating to such subject matter.  In entering into this Guaranty,
Guarantor acknowledges that it is relying on no statement, representation,
warranty, covenant or agreement of any kind made by Lender or any employee or
agent of Lender.

        

        SECTION 7.  Amendments,
Etc.  No amendment or
waiver of any provision of this Guaranty or consent to any departure by the
Guarantor herefrom shall in any event be effective unless the same shall be in
writing and signed by Lender, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which
given.

        

        SECTION 8.  Addresses
for Notices.  All notices,
requests, demands and other communications provided for hereunder shall be in
writing and sent in accordance with the terms and conditions of the Loan
Agreement.

         
 

        SECTION 9.  No
Waiver; Remedies.  No failure on the
part of Lender to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the
exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law or in any of the
Agreements or other Loan Documents.

        

        SECTION 10.  Right of
Set-off.  Upon the
occurrence and during the continuance of any Event of Default Lender is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by Lender to or for the credit or the account of the Guarantor
against any and all of the obligations of the Guarantor now or hereafter
existing under this Guaranty, irrespective of whether or not Lender shall have
made any demand under this Guaranty and although such obligations may be
contingent and unmatured.  Lender agrees promptly to notify the
Guarantor after any such set-off and application, provided that the failure to
give such notice shall not affect the validity of such set-off and
application.  The rights of Lender under this Section are in addition
to the other rights and remedies (including, without limitation, other rights of
set-off) which Lender may have.

        

        SECTION 11.  Continuing
Guaranty; Transfer of Obligations.  This Guaranty is
a continuing guaranty and shall (i) remain in full force and effect until
payment in full of the Obligations and all other amounts payable under this
Guaranty, (ii) be binding upon the Guarantor and its successors and assigns, and
(iii) inure to the benefit of and be enforceable by Lender and its successors,
transferees and assigns.  Without limiting the generality of the
foregoing clause (iii), Lender may assign or otherwise transfer the right to
collect the Obligations to any other person or entity, and such other person or
entity shall thereupon become vested with all the rights in respect thereof
granted to Lender herein or otherwise.

        

        SECTION 12.  Indemnification.  Guarantor hereby
agrees, jointly and severally, to indemnify and hold harmless Lender and its
affiliates and their respective directors, officers, employees and agents,
including all professionals (each an “Indemnified Party”) from and against any
and all expenses, losses, claims, damages and liabilities (including, without
limitation, all legal fees and disbursements of attorneys and other
professionals incurred by or asserted against any Indemnified Party in
connection with or arising out of, relating to, or by reason of any
investigation, litigation or proceeding arising out of, relating to or in
connection with any claims made by any person or entity in any way relating to
this Guaranty or the transactions contemplated hereby, but excluding therefrom
all expenses, losses, claims, damages, and liabilities arising out of or
resulting from the gross negligence or willful misconduct of any Indemnified
Party.

        

        SECTION 13.  GOVERNING
LAW.  THIS GUARANTY AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE),
INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

        

        SECTION 14.  JUDICIAL
PROCEEDINGS.  GUARANTOR AND, BY
ITS ACCEPTANCE HEREOF, LENDER, HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES (TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS GUARANTY AND
AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A
JURY.  THE PARTIES AGREE THAT ANY ACTION OR PROCEEDING ARISING UNDER
OR RELATED TO THIS GUARANTY MAY BE COMMENCED IN ANY FEDERAL OR STATE COURT
SITTING IN THE SOUTHERN DISTRICT OF NEW YORK AND THE PARTIES IRREVOCABLY SUBMIT
TO THE JURISDICTION OF EACH SUCH COURT AND AGREE NOT TO ASSERT, BY WAY OF
MOTION, AS A DEFENSE OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY
CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT
THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE
VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THE AGREEMENT OR
THE SUBJECT MATTER THEREOF OR THE TRANSACTION CONTEMPLATED HEREBY OR THEREBY MAY
NOT BE ENFORCED IN OR BY SUCH COURT.  THE
GUARANTOR AND LENDER AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

        

        SECTION 15.  DEFINITIONS.  Capitalized terms
used but not defined herein shall have the meanings set forth in the Loan
Agreement.

        

        SECTION 16.  COLLATERAL.  Guarantor hereby
waives any and all rights to claim a lien or other security interest in and to
any of the Vessels securing the obligations arising under the Loan
Agreement.  In the event of any Event of Default, Guarantor shall
waive any possessory or other right in and to all such Vessels.

        

        

        [
signature pages follow ]

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        IN WITNESS WHEREOF, the
Guarantor has executed this Guaranty as of the date first above
written.

        

        
        

         

        
          GUARANTOR:

        

        PRESENT
WHEN THE COMMON SEAL OF

        TBS
INTERNATIONAL PUBLIC LIMITED COMPANY,

        an
Irish public limited company, was affixed hereto

         

         

        
          By:    /s/
Christophil B. Costas

          Name:
Christophil B. Costas

          Title:
Attorney-in-Factex_10-21.htm

    TBS INTERNATIONAL PLC
& SUBSIDIARIES                EXHIBIT
10.21

    
 

    

    AMENDMENT NO. 2 AND WAIVER
TO CREDIT AGREEMENT

    

    This
AMENDMENT NO. 2 AND WAIVER TO
CREDIT AGREEMENT (this “Amendment”) dated as
of December 31, 2009 and effective as of January 1, 2010, is by and among (i)
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. and WINDSOR MARITIME CORP., each a corporation organized under the laws of
the Republic of the Marshall Islands (collectively, together with any Borrowers
joined on or after the date hereof, the “Borrowers” and, each
individually, a “Borrower”), (ii) TBS
INTERNATIONAL LIMITED, a corporation formed under the laws of Bermuda (“Holdings”), (iii) TBS
SHIPPING SERVICES INC., a New York corporation, as administrative borrower (the
“Administrative
Borrower”), (iv) each lender from time to time party hereto
(collectively, the “Lenders” and
individually, a “Lender”), and (v)
BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative
Agent”), Swing Line Lender and L/C Issuer.

    

    WHEREAS, the Borrowers,
Holdings, the Administrative Borrower, the Lenders and the Administrative Agent
are parties to that certain Amended and Restated Credit Agreement dated as of
March 26, 2008 (as amended and in effect from time to time, the “Credit Agreement”), pursuant
to which the Lenders have agreed, upon certain terms and conditions, to make
loans and otherwise extend credit to the Borrowers;

    

    WHEREAS, Events of Default
have occurred and continue (i) in connection with the Administrative Agent’s
receipt of a Valuation of the Vessels, dated on or about February 20, 2009, and
as a result of the Borrowers’ failure to prepay the Loans and other Credit
Extensions in an amount so that the Total Outstandings do not exceed the Maximum
Available Amount, in accordance with the requirements contained in Section
2.05(b)(iii) of the Credit Agreement, and (ii) as a result of the Loan Parties’
failure to comply with the financial covenants set forth in Section 7.13 of the
Credit Agreement for periods ending prior to the end of the Waiver Period (as
defined below) (the Events of Default described in clauses (i) and (ii),
collectively, the “Specified Events of
Default”);

    

    WHEREAS, the Borrowers have
requested and the Lenders and the Administrative Agent are willing (a) to waive
the Specified Events of Default, subject to the terms, conditions and other
provisions hereof, and (b) to amend certain provisions of the Credit Agreement
as more fully provided herein;

    

    WHEREAS, capitalized terms
which are used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement (as
amended hereby).

    

    NOW, THEREFORE, in
consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Borrowers, the Lenders and the Administrative Agent hereby agree as
follows:

    

    Section 1. Waiver.  Subject to the
terms and conditions set forth herein, the Lenders and the Administrative Agent
hereby agree to waive the Specified Events of Default but only during the Waiver
Period.  Such limited waiver of the Specified Events of Default shall
automatically, and without action, notice, demand or any other occurrence,
expire on and as of the end of the Waiver Period.  Upon the expiration
or termination of the Waiver Period, and from and after such time, (i) the
Lenders and the Administrative Agent shall retain all of the rights and remedies
relating to the Specified Events of Default (unless the Pre-Waiver Covenant
Compliance Date has occurred as of the expiration of the Waiver Period) and any
other Default or Event of Default, (ii) the Specified Events of Default shall be
reinstated and shall be in full force and effect for all periods including
periods after the Waiver Period (unless the Pre-Waiver Covenant Compliance Date
has occurred as of the expiration of the Waiver Period), and (iii) any
obligation of the Lenders under the Credit Agreement shall be subject to the
terms and conditions set forth in the Credit Agreement.

    

    Section 2.                      Affirmation and Acknowledgment of the Borrowers.  Each Borrower
hereby ratifies and confirms all of its Obligations to the Lenders, the L/C
Issuer and the Administrative Agent, including, without limitation, the Loans,
and each Borrower hereby affirms its absolute and unconditional promise to pay
to the Lenders, the L/C Issuer and the Administrative Agent the Loans and all
other amounts due under the Credit Agreement as amended hereby.  Each
Borrower hereby confirms that the Obligations are secured pursuant to the
Collateral Documents and pursuant to all other instruments and documents
executed and delivered by the Borrowers and as security for the
Obligations.

    

    Section 3.                      Release.  In order to
induce the Administrative Agent and the Lenders to enter into this Amendment,
each Loan Party acknowledges and agrees that: (a) such Loan Party does not have
any claim or cause of action against the Administrative Agent, the L/C issuer or
any Lender (or any of its respective directors, officers, employees or agents);
(b) such Loan Party does not have any offset right, counterclaim or defense of
any kind against any of its respective obligations, indebtedness or liabilities
to the Administrative Agent, the L/C Issuer or any Lender; and (c) each of the
Administrative Agent, the L/C Issuer and each Lender has heretofore properly
performed and satisfied in a timely manner all of its obligations to the Loan
Parties.  Each Loan Party wishes to eliminate any possibility that any
past conditions, acts, omissions, events, circumstances or matters would impair
or otherwise adversely affect the Administrative Agent’s, the L/C Issuer’s or
any Lender’s rights, interests, contracts, collateral security or
remedies.  Therefore, each Loan Party unconditionally releases, waives
and forever discharges (i) any and all liabilities, obligations, duties,
promises or indebtedness of any kind of the Administrative Agent, the L/C Issuer
or any Lender to such Loan Party, except the obligations to be performed by any
Administrative Agent, the L/C Issuer or any Lender on or after the date hereof
as expressly stated in this Amendment, the Credit Agreement and the other Loan
Documents, and (ii) all claims, offsets, causes of action, suits or defenses of
any kind whatsoever (if any), whether arising at law or in equity, whether known
or unknown, which such Loan Party might otherwise have against the
Administrative Agent, the L/C Issuer, any Lender or any of its directors,
officers, employees or agents, in either case (i) or (ii), on account of any
past or presently existing condition, act, omission, event, contract, liability,
obligation, indebtedness, claim, cause of action, defense, circumstance or
matter of any kind.

     

    Section 4.                      Amendments to Section 1.01 of the Credit Agreement.  Section 1.01 of
the Credit Agreement is hereby amended by adding the following new defined terms
in the appropriate alphabetical order:

    

    “Amendment No. 2”
means Amendment No. 2 and Waiver to Credit Agreement, dated as of December 31,
2009 and effective as of the Amendment No. 2 Effective Date, among the
Borrowers, Holdings, the Administrative Borrower, the Lenders and the
Administrative Agent.

    

    “Amendment No. 2 Effective
Date” means January 1, 2010.

    

    “Waiver Period” means
the period commencing on March 2, 2009 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 Default or Event of Default (other than
the Specified Events of Default (as defined in the Amendment No. 2) including,
without limitation, any failure to comply with the provisions of Amendment No. 1
or Amendment No. 2.

    

    Section 5.                      Covenants
and other Agreements.  

    

    (a) Until the
expiration of the Waiver Period, so long as any Lender shall have any Commitment
hereunder, any Loan or Obligation shall remain unpaid or unsatisfied, each of
Holdings and the Borrowers shall not, nor shall it permit any Subsidiary to,
directly or indirectly:

    

    (i) Minimum Cash
Liquidity. For each calendar month ending (x) on or after the Amendment
No. 1 Effective Date through December 31, 2009, permit Qualified Cash of the
Loan Parties (other than the Limited Guarantors), to be less than $40,000,000,
and (y) on or after the Amendment No. 2 Effective Date, permit Qualified Cash of
the Loan Parties (other than the Limited Guarantors), 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, of which, in the case of each of clauses
(x) and (y), a minimum average balance of $9,375,000 in any such calendar month
shall be deposited with Bank of America, N.A.

    

    (ii) Minimum Consolidated
Interest Charges Coverage Ratio.  Permit the Consolidated
Interest Charges Coverage Ratio as of the end of the period of determination
indicated below and for such period then ending of Holdings and its Subsidiaries
to be less than the ratio set forth below opposite such period:

    

    
      	
              Period
      of Determination

            	
              Minimum
      Consolidated Interest Charges Coverage Ratio

            
	
              Four
      fiscal quarters ending December 31, 2009

            	
              1.75:1.00

            

    

    

    (iii) Prepayments, Etc. of
Indebtedness.  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 (x)
the prepayment of the Credit Extensions in accordance with the terms of the
Credit Agreement, (y) regularly scheduled or required repayments, mandatory
prepayments or redemptions of Indebtedness described on Schedule 7.02 in
favor of The Royal Bank of Scotland plc, DVB Group Merchant Bank (Asia) Ltd.,
Credit Suisse, AIG Commercial Equipment Finance, Inc., Commerzbank AG and
Berenberg Bank and (z) other prepayments of Indebtedness described on Schedule 7.02 in
favor of The Royal Bank of Scotland plc, DVB Group Merchant Bank (Asia) Ltd.,
Credit Suisse, AIG Commercial Equipment Finance, Inc., Commerzbank AG and
Berenberg Bank; provided that (I) 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 (II) any such prepayments of Indebtedness
shall occur on or after January 4, 2010 and prior to the expiration of the
Wavier Period.

    

    (b) The
Borrowers and Holdings hereby agree, as an inducement to the Lenders to provide
the Waiver herein, that notwithstanding any provision of the Credit Agreement to
the contrary, the Applicable Rate and the Applicable Commitment Fee Percentage
shall be calculated at all times from and after the Amendment No. 2 Effective
Date until the expiration of the Waiver Period based on Level I as shown in the
respective definitions of Applicable Rate and Applicable Commitment Fee
Percentage set forth in the Credit Agreement.

    

    Section 6.                      Limited Consent.  Subject to the
terms and conditions set forth herein, the Lenders and the Administrative Agent
hereby agree to (i) extend the deadline for completion of the Redomiciliation
(as defined in the Consent, dated as of October 9, 2009, by and among Holdings,
the Borrowers, the Administrative Borrower, the Lenders and the Administrative
Agent) until January 29, 2010 and (ii) extend the deadline for joining TBS
International Plc, a corporation formed under the laws of Ireland (“Irish Newco”), as a
Loan Party under the Credit Agreement and the other Loan Documents in accordance
with Section 6.12(a) of the Credit Agreement until January 29, 2010; provided that until Irish
Newco is joined as a Loan Party, it shall not own or hold any assets or
property, or engage in any business activity other than maintaining its
corporate existence and other actions necessary in order to effectuate the
Redomiciliation.

    

    Section 7.                      Representations and Warranties.  Holdings and the
Borrowers hereby represent and warrant to the Administrative Agent as
follows:

    

    (a) Representation
and Warranties in the Credit Agreement.  The representations
and warranties of Holdings and the Borrowers contained in the Credit Agreement
were true and correct in all material respects as of the date when made and
continue to be true and correct in all material respects on the date hereof
except for (a) representations or warranties which expressly relate to an
earlier date in which case such representations and warranties shall be true and
correct, in all material respects, as of such earlier date, or (b)
representations or warranties which are no longer true as a result of a
transaction expressly permitted by the Credit Agreement.

    

    (b) Ratification, Etc.  Except as
expressly amended hereby, the Credit Agreement is hereby ratified and confirmed
in all respects and shall continue in full force and effect.  The
Credit Agreement shall, together with this Amendment, be read and construed as a
single agreement.  All references in the Credit Agreement or any
related agreement or instrument shall hereafter refer to the Credit Agreement as
amended hereby.

    

    (c) Authority,
Etc.  The execution and
delivery by each of Holdings and the Borrowers of this Amendment and the
performance by each of Holdings and the Borrowers of all of its agreements and
obligations under the Credit Agreement, as amended hereby, are within Holdings
and each Borrower’s corporate authority and have been duly authorized by all
necessary corporate action on the part of Holdings and such
Borrower.

    

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

    

    Section 8.                      Effectiveness of Amendment.  The provisions of
this Amendment shall become effective as of the Amendment No. 2 Effective Date
upon the satisfaction of each of the following conditions, in each case in a
manner and in form and substance satisfactory to the Administrative Agent
(unless otherwise agreed to in writing by the Administrative
Agent):

    

    (a) On or
prior to January 4, 2010, the Borrowers shall have made a prepayment of the Term
Loan in an aggregate amount equal to $9,500,000 which such prepayment shall be
applied against the March 31, 2010 amortization payment required under Section 2.07 of the
Credit Agreement; and

    

    (b) Total
Revolving Credit Outstanding shall not exceed the Revolving Credit Facility;
and

    

    (c) This
Amendment shall have been duly executed and delivered by each of the Borrowers,
Holdings, the Administrative Borrower, the Guarantors, the Administrative Agent
and the Required Lenders and shall be in full force and effect; and

    

    (d) The
Administrative Agent shall have received signed Officer’s Certificates,
certified by a duly authorized officer of each Borrower and each Guarantor to be
true and complete, (a) of the records of all corporate (or equivalent) action
taken by such Borrower or such Guarantor to authorize (i) such Borrower’s or
such Guarantor’s execution and delivery of this Amendment, and (ii) such
Borrower’s and such Guarantor’s entry into and carrying out the terms of this
Amendment and the Credit Agreement, as amended hereby, and (b) of the
Organization Documents; and

    

    (e) The
applicable Subsidiaries of the Loan Parties shall have entered into amendments,
waivers or other modifications reasonably satisfactory to the Administrative
Agent of each loan agreement evidencing the existing Indebtedness of such
Subsidiaries of the Loan Parties described on Schedule 7.02 of the
Credit Agreement (including, without limitation, the various loan agreements
among certain Subsidiaries of Holdings and The Royal Bank of Scotland plc, DVB
Group Merchant Bank (Asia) Ltd., Credit Suisse, AIG Commercial Equipment
Finance, Inc, Commerzbank AG and Berenberg Bank), and the Administrative Agent
shall have received a signed Officer’s Certificate, certified by a duly
authorized officer of Holdings to be true and complete, attaching true, correct
and complete fully executed copies of each such amendment, waiver and
modification to each such loan agreement, together with each such loan
agreement, as in effect immediately prior to the Amendment No. 2 Effective Date;
and

    

    (f) On or
prior to January 4, 2010, the Borrowers shall have paid (i) to the
Administrative Agent, for its own account, all fees set forth in the Fee Letter
dated as of December 3, 2009 and (ii) to the Administrative Agent, for the pro
rata account of each Lender executing this Amendment, an amendment fee (the
“Amendment
Fee”) in an amount equal to twenty five (25) basis points of such
Lender’s aggregate Revolving Credit Commitment and outstanding Term Loans (prior
to giving effect to this Amendment), in accordance with the Fee Letter dated as
of December 3, 2009; and

    

    (g) The
Borrowers shall have paid all reasonable unpaid fees and expenses of the
Administrative Agent’s counsel, Bingham McCutchen LLP, to the extent that copies
of invoices for such fees and expenses have been delivered to the Borrowers;
and

    

    (h) Since
June 30, 2009, there shall have been no event or circumstance, either
individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect (other than the effect of any noncash
impairment charges incurred during each fiscal year of Holdings and its
Subsidiaries ending December 31, 2008 and December 31, 2009 in respect of any of
Holdings’ or its Subsidiaries’ goodwill and Vessels, and it being further
understood that financial performance consistent with the projected financial
performance of Holdings and its Subsidiaries outlined in the financial
projections delivered to the Administrative Agent and the Lenders as of November
22, 2009 shall not be deemed to constitute a material adverse change), and there
shall have been no material adverse change in the facts and information
regarding the Loan Parties as presented to the Administrative Agent;
and

    

    (i) The
Lenders shall have received satisfactory evidence that the Administrative Agent
(for itself and the other Secured Parties) shall have a valid and perfected
first priority Lien on all of the Collateral and other assets of the Loan
Parties (including, without limitation, each of the Vessels); and

    

    (j) The
Administrative Agent shall have received such other items, documents, agreements
or actions as the Administrative Agent may reasonably request in order to
effectuate the transactions contemplated hereby.

    

    Section 9.                      No Other Amendments.  Except as
expressly provided in this Amendment, all of the terms and conditions of the
Credit Agreement remain in full force and effect.

    

    Section 10.                      Execution in Counterparts.  This
Amendment may be executed in any number of counterparts, but all such
counterparts shall together constitute but one instrument.  In making
proof of this Amendment it shall not be necessary to produce or account for more
than one counterpart signed by each party hereto by and against which
enforcement hereof is sought.

    

    Section 11.                      Expenses.  
Pursuant to 11.04 of the Credit Agreement, all costs and expenses incurred or
sustained by the Administrative Agent in connection with this Amendment,
including the fees and disbursements of legal counsel for the Administrative
Agent in producing, reproducing and negotiating the Amendment, will be for the
account of the Borrowers whether or not the transactions contemplated by this
Amendment are consummated.

    

    Section 12.                      Miscellaneous.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK,
EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW (OTHER THAN THE NEW
YORK GENERAL OBLIGATIONS LAW §5-1401). The captions in this Amendment are
for convenience of reference only and shall not define or limit the provisions
hereof.  This Amendment shall constitute one of the Loan Documents
referred to in the Credit Agreement and any failure by any Loan Party to comply
with the terms contained herein shall constitute an immediate Event of
Default.

    

    [Remainder
of page intentionally left blank]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN WITNESS WHEREOF, the
undersigned have duly executed this Amendment as of the date first set forth
above.

     

    

      
        	 	
                The
      Borrowers:

              
	 	 
      
	 	
                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
      MARITIME 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.

              
	 	 
      
	 	 
      
	 	
                By:
      /s/ Christophil
      B. Costas

              
	 	
                Name:
      Christophil B. Costas

              
	 	
                Title:
      Attorney-in-Fact

              
	 	 
      

      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

      
        	 	
                Holdings:

              
	 	 
      
	 	
                TBS
      INTERNATIONAL LIMITED

              
	 	 
      
	 	
                By:
      /s/
      Christophil B. Costas

              
	 	
                Name:
      Christophil B. Costas

              
	 	
                Title:
      Attorney-in-Fact

              
	 	 
      
	 	
                The Administrative
  Borrower:

              
	 	 
      
	 	
                TBS SHIPPING SERVICES
      INC.

              
	 	 
      
	 	
                By:  /s/ Maryann
      Cognatello

              
	 	
                Name:  Maryann
      Cognatello

              
	 	
                Title:  Treasurer

              
	 	 
      
	 	
                The Administrative
Agent:

              
	 	 
      
	 	
                BANK
      OF AMERICA, N.A.

              
	 	 
      
	 	
                By: /s/ Judith A. Huckins

              
	 	
                Name:
      Judith A. Huckins

              
	 	
                Title:
      Vice President

              
	 	 
      
	 	
                The Lenders:

              
	 	 
      
	 	
                BANK OF AMERICA, N.A.,
      as a Lender, L/C Issuer and Swing Line Lender

              
	 	 
      
	 	
                By: /s/ Judith A. Huckins

              
	 	
                Name:
      Judith A. Huckins

              
	 	
                Title:
      Vice President

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    The Lenders
(cont):

    

    

     

    DVB GROUP MERCHANT BANK (ASIA)
LTD.,

     

    as
co-Syndication Agent and a Lender

     

     

    By:  /s/ Evan D. Cohen 

    Name:
Evan D. Cohen 

    Title:
Director 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    CITIBANK, N.A., as
co-Syndication Agent and a Lender

     

    By: /s/
Gilbert Torres   

    Name:
Gilbert Torres 

    Title:
Vice President 

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    TD BANKNORTH, N.A., as
Documentation Agent and a Lender

     

    

     

    By:  /s/ Deborah Gravinese

    Name:
Deborah Gravinese 

    Title:
Senior Vice President 

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    KEYBANK NATIONAL ASSOCIATION,
as a Lender

     

    

     

    By:  /s/
Richard B. Sausbery  

    Name:
Richard B. Sausbery 

    Title:
Vice President 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    CAPITAL ONE LEVERAGE FINANCE
CORP., as a Lender

     

    By: /s/ Thomas F. Furst

    Name:
Thomas F. Furst 

    Title:
Vice President 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    GUARANTY BANK, as a
Lender

     

    By: /s/ Andrew Widmer

    Name:
Andrew Widmer

    Title:
Vice President

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    

    MERRILL LYNCH COMMERCIAL FINANCE
CORP., as a Lender

     

    By: /s/ Judith A.
Huckins 

    Name:
Judith A. Huckins 

    Title:
Vice President

     

    
      
        A/73220050

      

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    WEBSTER BANK NATIONAL
ASSOCIATION, as a Lender

     

    

     

    By:   /s/ Richard Freeman

    Name:
Richard Freeman

    Title:
Vice President 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    COMERICA BANK, as a
Lender

     

    

     

    By:  /s/ Sarune Baer 

    Name:
Sarune Baer

    Title:
Vice President 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    TRISTATE CAPITAL BANK, as a
Lender

     

    

     

    By: /s/ Timothy A. Merriman 

    Name:
Timothy A. Merriman

    Title:
Senior Vice President

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    GUARANTORS’
ACKNOWLEDGMENT

    

    Each of
the undersigned Guarantors hereby (a) acknowledges and consents to the foregoing
Amendment and the Borrowers’ execution thereof; (b) ratifies and confirms all of
their respective obligations and liabilities under the Loan Documents to which
any of them is a party and ratifies and confirms that such obligations and
liabilities extend to and continue in effect with respect to, and continue to
guarantee and secure, as applicable, the Obligations of the Borrowers under the
Credit Agreement as amended; (c) acknowledge and confirm that the liens and
security interests granted pursuant to the Loan Documents are and continue to be
valid and perfected first priority liens and security interests (subject only to
Permitted Encumbrances) that secure all of the Obligations on and after the date
hereof; (d) acknowledges and agrees that, as of the date hereof, such Guarantor
does not have any claim or cause of action against the Administrative Agent or
any Lender (or any of its respective directors, officers, employees or agents);
and (e) acknowledges, affirms and agrees that, as of the date hereof, such
Guarantor does not have any defense, claim, cause of action, counterclaim,
offset or right of recoupment of any kind or nature against any of their
respective obligations, indebtedness or liabilities to any Administrative Agent
or any Lender.

     

    The
Guarantors:

    

    TBS
U.S. ENTERPRISES LLC

     

    By: TBS SHIPPING SERVICES INC.,
its sole member

    

    By: /s/ Maryann Cognatello

    Name:
Maryann
Cognatello

    Title:
Treasurer 

     

    TBS
ENERGY LOGISTICS L.P.

     

    By:  TBS U.S. ENTERPRISES LLC, its
general partner

    

    By: TBS SHIPPING SERVICES INC.,
its sole member

    

    
      By: /s/ Maryann Cognatello

      Name:
Maryann Cognatello

      Title:
Treasurer 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	 	
              The
      Guarantors:

            
	 	 
      
	 	
              ROYMAR
      SHIP MANAGEMENT, INC.

            
	 	
              TBS
      SHIPPING SERVICES INC.

            
	 	
              azalea
      shipping & chartering, inc.

            
	 	
              compass
      chartering corp.

            
	 	 
      
	 	
              By:
      /s/ Stephen J.
      DiLorenzo       
  

            
	 	
              Name:  Stephen
      J. Dilorenzo

            
	 	
              Title:  President

            
	 	 
      
	 	 
      
	 	
              TBS
      INTERNATIONAL LIMITED

            
	 	
              WESTBROOK
      HOLDINGS LTD.

            
	 	
              TRANSWORLD
      CARGO CARRIERS, S.A.

            
	 	
              MERCURY
      MARINE LTD. (F/K/A TBS LOGISTICS LTD.)

            
	 	
              TBS
      WORLDWIDE SERVICES INC.

            
	 	
              BEEKMAN
      SHIPPING CORP.

            
	 	
              FAIRFAX
      SHIPPING CORP.

            
	 	
              LEAF
      SHIPPING CORP.

            
	 	
              PACIFIC
      RIM SHIPPING CORP.

            
	 	
              TBS
      AFRICAN VENTURES LIMITED

            
	 	
              TBS
      EUROLINES, LTD.

            
	 	
              TBS
      HOLDINGS LIMITED

            
	 	
              TBS
      LATIN AMERICA LINER, LTD.

            
	 	
              TBS
      MIDDLE EAST CARRIERS, LTD.

            
	 	
              TBS
      NORTH AMERICA LINER LTD.

            
	 	
              TBS
      OCEAN CARRIERS, LTD.

            
	 	
              TBS
      PACIFIC LINER, LTD.

            
	 	
              TBS
      WAREHOUSE & DISTRIBUTION GROUP LTD.

            
	 	
              TBS
      WAREHOUSE & EQUIPMENT HOLDINGS LTD.

            
	 	
              TBS
      LOGISTICS INCORPORATED

            
	 	
              TBSI
      NEW SHP DEVELOPMENT CORP.

            
	 	
              TBS
      MINING LIMITED

            
	 	 
      
	 	
              By:
      /s/ Christophil B.
      Costas            
      

            
	 	
              Name:  Christophil
      B. Costas

            
	 	
              Title:  Attorney-in-Fact

            
	 	 
      
	 	 
      
	 	
              TBS
      SHIPPING SERVICES INC.

            
	 	 
      
	 	
              By:
      /s/ Maryann
      Cognatello             
      

            
	 	
              Name:  Maryann
      Cognatello

            
	 	
              Title:  Treasurer

            
	 	 
      
	 	
              ROYMAR
      SHIPPING SERVICES INC.

            
	 	 
      
	 	
              By:
      /s/ Ronald W.
      Tursi                    
      

            
	 	
              Name:  Ronald
      W. Tursi

            
	 	
              Title:  President

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"}]]