Document:

ex-10_10.htm

    TBS INTERNATIONAL LIMITED
& SUBSIDIARIES                EXHIBIT
10.10 

     

     

    

      

      

      

      

      Date: as
of March 26, 2009

       

      

      

      RUSHMORE
SHIPPING LLC,

      as
Owners

       

      BEEKMAN
SHIPPING CORP.,

      as
Charterers

      

      -and-

      

      TBS
INTERNATIONAL LIMITED,

      as
Guarantor

      

      _______________________________________________________

      

      FIRST
AMENDATORY AGREEMENT

      ______________________________________________________

      

      Amending
and Supplementing the Bareboat Charter Party dated as of January 24,
2007

      in
respect of the Panamanian registered and Philippine bareboat
registered

      LAGUNA
BELLE

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FIRST
AMENDATORY AGREEMENT dated as of March 26, 2009 (this “Agreement”)

      

      AMONG

      

      
        	
                (1)  

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

              

      

       

      
        	
                (2)  

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

              

      

       

      
        	
                (3)  

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

              

      

       

      WITNESSETH
THAT:

      

      WHEREAS, the Owners, the
Charterers and the Guarantor are parties to a bareboat charter party dated as of
January 24, 2007 (the “Charter”);

      

      WHEREAS, the obligations of
the Charterers under the Charter are guaranteed by the Guarantor pursuant to
Clause 53 of the Charter;

      

      WHEREAS, as of the date hereof
the Guarantor is in breach of its obligations under Clause 35(3)(a) of the
Charter; and

      

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

      

      
        	
                (a)

              	
                waive
      the Guarantor’s breach of its obligations under Clause 35(3)(a) of the
      Charter; and

              

      

      

      
        	
                (b)  

              	
                waive
      the requirements of Clause 35(3)(a) of the Charter with effect on and from
      the date hereof until 12:00 am on January 1,
  2010.

              

      

      

      NOW, THEREFORE, in
consideration of the premises set forth above, the covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

      

      
        	
                1  

              	
                DEFINITIONS

              

      

      

      
        	
                1.1  

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

              

      

      

      
        	
                2  

              	
                BREACH,
      WAIVER AND AMENDMENT

              

      

       

      
        	
                2.1  

              	
                Fee.  In
      consideration of payment by the Charterer of a fee to the Owner in an
      amount to be determined between the Owner and the Charterer and paid by
      the Charterer within 21 days of the date hereof, the Owner and the
      Charterer hereby agree to the following clauses 2.2 to 2.8 in respect of
      the Charter.

              

      

       

      
        	
                2.2  

              	
                Breach of Clause
      35(3)(a).  The Guarantor acknowledges and agrees that, as
      of the date of this Agreement, it is in breach of Clause 35(3)(a) of the
      Charter.

              

      

       

      
        	
                2.3  

              	
                Waiver of
      breach.  The Owner hereby waives, as of the date hereof,
      the Guarantor’s breach of Clause 35(3)(a) of the
  Charter.

              

      

       

      
        	
                2.4  

              	
                Amendment.  Clauses
      35(3)(a) and (b) of the Charter are amended and restated to read as
      follows:

              

      

      

      
        	
                 
      

              	
                “(a)

              	
                to
      be in compliance with:

              

      

      

      
        	
                (i)  

              	
                the
      financial covenants set forth in Section 7.13 of the Credit Agreement
      dated July 31, 2006 (as amended or supplemented from time to time, the
      “Bank of America Credit
      Facility”) among the Guarantor and certain of its subsidiaries as
      borrowers, Bank of America, N.A., as Administrative Agent and a Lender,
      Citibank, N.A., as Syndication Agent and a Lender, Westlb AG New York
      Branch, as Documentation Agent and a Lender, Keybank, N.A. as a Lender,
      LaSalle Bank, National Association, as a Lender, North Fork Business
      Capital Corporation, as a Lender, and Webster Bank National Association,
      as a Lender, upon the terms and conditions of which a $140.0 million
      credit facility was made available to the Guarantor and certain of its
      subsidiaries; and

              

      

       

      
        	
                (ii)  

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

              

      

       

      
        	
                (b)  

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

              

      

      

      
        	
                2.5  

              	
                Temporary waiver of Clause
      35(3)(a)(i).  The parties hereto agree to waive the
      requirements of Clause 35(3)(a)(i) of the Charter, as amended above, with
      effect on and from the date hereof until 12:00 am on January 1, 2010,
      provided that the
      Guarantor shall maintain the following between the date hereof and 12:00
      am on January 1, 2010 (and for the avoidance of doubt the requirements of
      Clause 35(3)(a)(i) of the Charter, as amended above, shall be reinstated
      at 12:01 am on January 1, 2010 and shall be effective at all times
      thereafter):

              

      

      

      
        	
                (a)  

              	
                at
      all times, cash and Cash Equivalents of not less than $40,000,000, to be
      tested on the last day of each month;
and

              

      

      

      
        	
                (b)  

              	
                a
      Consolidated Interest Charges Coverage Ratio of not less than 1.10 to 1.00
      at June 30, 2009, 1.35 to 1.00 at September 30, 2009 and 1.75 to 1.00 at
      December 31, 2009.

              

      

      

      For
purposes of (a) and (b) above:

      

      “Attributable Indebtedness”
means, on any date:

      

      
        	
                (i)  

              	
                in
      respect of any Capitalized Lease of any person, the capitalized amount
      thereof that would appear on a balance sheet of such person prepared as of
      such date in accordance with GAAP;

              

      

      

      
        	
                (ii)  

              	
                in
      respect of any Synthetic Lease Obligation, the capitalized amount of the
      remaining lease or similar payments under the relevant lease or other
      applicable agreement or instrument that would appear on a balance sheet of
      such person prepared as of such date in accordance with GAAP if such lease
      or other agreement or instrument were accounted for as a Capitalized
      Lease; and

              

      

      

      
        	
                (iii)  

              	
                all
      Synthetic Debt of such person.

              

      

      

      “Capitalized Leases” means all
leases that have been or should be, in accordance with GAAP, recorded as
capitalized leases.

      

      “Cash Equivalents” means any of
the following types of Investments, to the extent owned by the Guarantor or any
of its Subsidiaries free and clear of all Security Interests (other than
Security Interests created under the Finance Documents and other Security
Interests permitted hereunder):

       

      
        	
                (i)  

              	
                readily
      marketable obligations issued or directly and fully guaranteed or insured
      by the United States of America or any agency or instrumentality thereof
      having maturities of not more than 360 days from the date of acquisition
      thereof; provided
      that the full faith and credit of the United States of America is
      pledged in support thereof;

              

      

       

      
        	
                (ii)  

              	
                time
      deposits with, or insured certificates of deposit or bankers’ acceptances
      of, any commercial bank that (1) (A) is a Lender or (B) is organized under
      the laws of the United States of America, any state thereof or the
      District of Columbia or is the principal banking subsidiary of a bank
      holding company organized under the laws of the United States of America,
      any state thereof or the District of Columbia, and is a member of the
      Federal Reserve System, (2) issues (or the parent of which issues)
      commercial paper rated as described in clause (iii) of this definition and
      (3) has combined capital and surplus of at least $1,000,000,000, in each
      case with maturities of not more than 90 days from the date of acquisition
      thereof;

              

      

       

      
        	
                (iii)  

              	
                commercial
      paper issued by any person organized under the laws of any state of the
      United States of America and rated at least “Prime-1” (or the then
      equivalent grade) by Moody’s or at least “A-1” (or the then equivalent
      grade) by S&P, in each case with maturities of not more than 180 days
      from the date of acquisition thereof;
and

              

      

       

      
        	
                (iv)  

              	
                Investments,
      classified in accordance with GAAP as current assets of the Guarantor or
      any of its Subsidiaries, in money market investment programs registered
      under the Investment Company Act of 1940, which are administered by
      financial institutions that have the highest rating obtainable from either
      Moody’s or S&P, and the portfolios of which are limited solely to
      Investments of the character, quality and maturity described in clauses
      (i), (ii) and (iii) of this
definition.

              

      

       

      “Consolidated EBITDA” means, at
any date of determination, an amount equal to Consolidated Net Income of the
Guarantor and its Subsidiaries on a consolidated basis for the most recently
completed Measurement Period, plus the following to the
extent deducted in calculating such Consolidated Net Income (and without
duplication):

      

      
        	
                (i)  

              	
                Consolidated
      Interest Charges;

              

      

      

      
        	
                (ii)  

              	
                the
      provision for Federal, state, local and foreign income taxes
      payable;

              

      

      

      
        	
                (iii)  

              	
                depreciation
      and amortization expense;

              

      

      

      
        	
                (iv)  

              	
                net
      losses from the sales of Ships as permitted under this Agreement or
      vessels as permitted under the Bank of America Credit Facility;
      and

              

      

      

      
        	
                (v)  

              	
                any
      noncash impairment charges incurred during each fiscal year of the
      Guarantor and its Subsidiaries ending December 31, 2008 and December 31,
      2009 in respect of any of the Guarantor’s or its Subsidiaries’ goodwill
      and vessels (in each case of or by the Guarantor and its Subsidiaries for
      such Measurement Period),

              

      

      

      minus, to the extent included
in calculating such Consolidated Net Income, all net gains from the sales of
Ships as permitted under this Agreement or vessels as permitted under the Bank
of America Credit Facility (in each case of or by the Guarantor and its
Subsidiaries for such Measurement Period), provided that, to the extent
characterized as interest on the income statements of the Guarantor and its
Subsidiaries for such Measurement Period pursuant to FASB Interpretation No. 133
– Accounting for Derivative Instruments and Hedging Activities (June 1998),
noncash adjustments in connection with any interest rate Swap Contract entered
into by the Guarantor or any of its Subsidiaries, shall be
excluded.

      

      “Consolidated Interest Charges”
means, for any Measurement Period, the sum of:

      

      
        	
                (i)  

              	
                all
      interest, premium payments, debt discount, fees, charges and related
      expenses in connection with borrowed money (including capitalized interest
      but excluding capitalized interest on Permitted New Vessel Construction
      Indebtedness) or in connection with the deferred purchase price of assets,
      in each case to the extent treated as interest in accordance with
      GAAP;

              

      

       

      
        	
                (ii)  

              	
                all
      interest paid or payable with respect to discontinued operations;
      and

              

      

       

      
        	
                (iii)  

              	
                the
      portion of rent expense under Capitalized Leases that is treated as
      interest in accordance with GAAP,

              

      

       

      in each
case, of or by the Guarantor and its Subsidiaries on a consolidated basis for
the most recently completed Measurement Period; provided that, to the extent
characterized as interest on the income statements of the Guarantor and its
Subsidiaries for such Measurement Period pursuant to FASB Interpretation No. 133
– Accounting for Derivative Instruments and Hedging Activities (June 1998),
noncash adjustments in connection with any interest rate Swap Contract entered
into by the Guarantor or any of its Subsidiaries, shall be
excluded.

       

      “Consolidated Interest Charges
Coverage Ratio” means, at any date of determination, the ratio of (a) the
result of (i) Consolidated EBITDA, less (ii) the sum of Federal,
state, local and foreign income taxes paid in cash for the most recently
completed Measurement Period, to (b) Consolidated Interest Charges for the most
recently completed Measurement Period.

       

      “Consolidated Net Income”
means, at any date of determination, the net income (or loss) of the Guarantor
and its Subsidiaries on a consolidated basis for the most recently completed
Measurement Period; provided
that Consolidated Net Income shall exclude:

      

      
        	
                (i)  

              	
                extraordinary
      gains and extraordinary losses for such Measurement
  Period;

              

      

       

      
        	
                (ii)  

              	
                the
      net income of any Subsidiary during such Measurement Period to the extent
      that the declaration or payment of dividends or similar distributions by
      such Subsidiary of such income is not permitted by operation of the terms
      of its Organization Documents or any agreement, instrument or Law
      applicable to such Subsidiary during such Measurement Period, except that
      the Guarantor’s equity in any net loss of any such Subsidiary for such
      Measurement Period shall be included in determining Consolidated Net
      Income; and

              

      

       

      
        	
                (iii)  

              	
                any
      income (or loss) for such Measurement Period of such person if such person
      is not a Subsidiary,

              

      

       

      except
that the Guarantor’s equity in the net income of any such person for such
Measurement Period shall be included in Consolidated Net Income up to the
aggregate amount of cash actually distributed by such person during such
Measurement Period to the Guarantor or a Subsidiary as a dividend or other
distribution (and in the case of a dividend or other distribution to a
Subsidiary, such Subsidiary is not precluded from further distributing such
amount to Holdings as described in clause (ii) of this
proviso).

      

      “Debtor Relief Laws” means the
Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors
generally.

      

      “Equity Interests” means, with
respect to any person, all of the shares of capital stock of (or other ownership
or profit interests in) such person, all of the warrants, options or other
rights for the purchase or acquisition from such person of shares of capital
stock of (or other ownership or profit interests in) such person, all of the
securities convertible into or exchangeable for shares of capital stock of (or
other ownership or profit interests in) such person or warrants, rights or
options for the purchase or acquisition from such person of such shares (or such
other interests), and all of the other ownership or profit interests in such
person (including partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights
or other interests are outstanding on any date of determination.

      

      “Finance Documents” has the
meaning assigned such term in the Loan Agreement.

      

      “GAAP” means generally accepted
accounting principles in the United States set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, that are
applicable to the circumstances as of the date of determination, consistently
applied.

      

      “Governmental Authority” means
the government of the United States or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government (including any supra-national bodies
such as the European Union or the European Central Bank).

      

      “Guarantee” means, as to any
person, any:

      

      
        	
                (i)  

              	
                any
      obligation, contingent or otherwise, of such person guaranteeing or having
      the economic effect of guaranteeing any Indebtedness or other obligation
      payable or performable by another person (the “primary obligor”) in any
      manner, whether directly or indirectly, and including any obligation of
      such person, direct or indirect,

              

      

      

      
        	
                (A)  

              	
                to
      purchase or pay (or advance or supply funds for the purchase or payment
      of) such Indebtedness or other
obligation;

              

      

      

      
        	
                (B)  

              	
                to
      purchase or lease property, securities or services for the purpose of
      assuring the obligee in respect of such Indebtedness or other obligation
      of the payment or performance of such Indebtedness or other
      obligation;

              

      

      

      
        	
                (C)  

              	
                to
      maintain working capital, equity capital or any other financial statement
      condition or liquidity or level of income or cash flow of the primary
      obligor so as to enable the primary obligor to pay such Indebtedness or
      other obligation;

              

      

      

      
        	
                (D)  

              	
                entered
      into for the purpose of assuring in any other manner the obligee in
      respect of such Indebtedness or other obligation of the payment or
      performance thereof or to protect such obligee against loss in respect
      thereof (in whole or in part); or

              

      

      

      
        	
                (ii)  

              	
                any
      Security Interest on any assets of such person securing any Indebtedness
      or other obligation of any other person, whether or not such Indebtedness
      or other obligation is assumed by such person (or any right, contingent or
      otherwise, of any holder of such Indebtedness to obtain any such Security
      Interest).

              

      

      

      The
amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing person in good faith.  The term “Guarantee” as a verb has a
corresponding meaning.

      

      “Indebtedness” means, as to any
person at a particular time, without duplication, all of the following, whether
or not included as indebtedness or liabilities in accordance with
GAAP:

      

      
        	
                (i)  

              	
                all
      obligations of such person for borrowed money and all obligations of such
      person evidenced by bonds, debentures, notes, loan agreements or other
      similar instruments;

              

      

      

      
        	
                (ii)  

              	
                the
      maximum amount of all direct or contingent obligations of such person
      arising under letters of credit (including standby and commercial),
      bankers’ acceptances, bank guaranties, surety bonds and similar
      instruments;

              

      

      

      
        	
                (iii)  

              	
                net
      obligations of such person under any Swap
  Contract;

              

      

      

      
        	
                (iv)  

              	
                all
      obligations of such person to pay the deferred purchase price of property
      or services (other than trade accounts payable in the ordinary course of
      business and not past due for more than 60 days after the date on which
      such trade account was created);

              

      

      

      
        	
                (v)  

              	
                indebtedness
      (excluding prepaid interest thereon) secured by a Security Interest on
      property owned or being purchased by such person (including indebtedness
      arising under conditional sales or other title retention agreements),
      whether or not such indebtedness shall have been assumed by such person or
      is limited in recourse;

              

      

      

      
        	
                (vi)  

              	
                all
      Attributable Indebtedness in respect of Capitalized Leases and Synthetic
      Lease Obligations of such person and all Synthetic Debt of such
      person;

              

      

      

      
        	
                (vii)  

              	
                all
      obligations of such person to purchase, redeem, retire, defease or
      otherwise make any payment in respect of any Equity Interest in such
      person or any other person or any warrant, right or option to acquire such
      Equity Interest, valued, in the case of a redeemable preferred interest,
      at the greater of its voluntary or involuntary liquidation preference
      plus accrued and
      unpaid dividends; and

              

      

      

      
        	
                (viii)  

              	
                all
      Guarantees of such person in respect of any of the
    foregoing.

              

      

      

      For all
purposes hereof, the Indebtedness of any person shall include the Indebtedness
of any partnership or joint venture (other than a joint venture that is itself a
corporation or limited liability company) in which such person is a general
partner or a joint venturer, unless such Indebtedness is expressly made
non-recourse to such person.  The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date.

      

      “Investment” means, as to any
person, any direct or indirect acquisition or investment by such person, whether
by means of (a) the purchase or other acquisition of Equity Interests of another
person, (b) a loan, advance or capital contribution to, Guarantee or assumption
of debt of, or purchase or other acquisition of any other debt or interest in,
another person, (c) the purchase or other acquisition (in one transaction or a
series of transactions) of assets of another person that constitute a business
unit or all or a substantial part of the business of, such person or (d) the
acquisition or construction of a vessel.  For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment.

      

      “Loan Agreement” means the Loan
Agreement dated as of January 25, 2007 among Adirondack Shipping LLC and
Rushmore Shipping LLC. as Borrowers, the banks and financial institutions named
therein as Lenders and DVB Bank America N.V. as Facility Agent and Security
Trustee.

      

      “Measurement Period” means, at
any date of determination, the most recently completed four fiscal quarters of
the Guarantor.

      

      “Moody’s” means Moody’s
Investors Service, Inc. and any successor thereto.

      

      “Organization Documents” means,
(a) with respect to any corporation, the certificate or articles of
incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited
liability company, the certificate or articles of formation or organization and
operating agreement; and (c) with respect to any partnership, joint venture,
trust or other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or
organization with the applicable Governmental Authority in the jurisdiction of
its formation or organization and, if applicable, any certificate or articles of
formation or organization of such entity.

      

      “Permitted New Vessel Construction
Indebtedness” means Indebtedness of Subsidiaries of the Guarantor that
are not parties to the Bank of America Credit Facility in connection with the
construction of multipurpose tweendeck or bulk carrier shipping
vessels.

      

      “Security Interest” has the
meaning assigned such term in the Loan Agreement.

      

      “S&P” means Standard &
Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any
successor thereto.

      

      “Subsidiary” means a
corporation, partnership, joint venture, limited liability company or other
business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other
governing body (other than securities or interests having such power only by
reason of the happening of a contingency) are at the time beneficially owned, or
the management of which is otherwise controlled, directly, or indirectly through
one or more intermediaries, or both, by the Guarantor.

      

      “Swap Contract” means (a) any
and all rate swap transactions, basis swaps, credit derivative transactions,
forward rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond
index swaps or options or forward bond or forward bond price or forward bond
index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any combination of
any of the foregoing (including any options to enter into any of the foregoing),
whether or not any such transaction is governed by or subject to any master
agreement, and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement, including any such obligations or
liabilities under any such master agreement.

      

      “Synthetic Debt” means, with
respect to any person as of any date of determination thereof, all obligations
of such person in respect of transactions entered into by such person that are
intended to function primarily as a borrowing of funds (including any minority
interest transactions that function primarily as a borrowing) but are not
otherwise included in the definition of “Indebtedness” or as a
liability on the consolidated balance sheet of such person and its subsidiaries
in accordance with GAAP.

      

      “Synthetic Lease Obligation”
means the monetary obligation of a person under (i) a so-called synthetic,
off-balance sheet or tax retention lease, or (ii) an agreement for the use or
possession of property (including sale and leaseback transactions), in each
case, creating obligations that do not appear on the balance sheet of such
person but which, upon the application of any Debtor Relief Laws to such person,
would be characterized as the indebtedness of such person (without regard to
accounting treatment).

      

      
        	
                2.6  

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

              

      

      

      
        	
                2.7  

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

              

      

      

      
        	
                2.8  

              	
                No other amendments or
      waivers.  Except as amended or waived hereby, all other
      terms and conditions of the Charter remain unchanged and the Charter is
      hereby ratified and confirmed.  Without limiting the foregoing,
      the Guarantor acknowledges and agrees that its guarantee under Clause 53
      of the Charter remains in full force and
effect.

              

      

       

      
        	
                3  

              	
                MISCELLANEOUS

              

      

       

      
        	
                3.1  

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

              

      

       

      
        	
                3.2  

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

              

      

       

      
        	
                3.3  

              	
                Severability.  Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent
      of such prohibition or unenforceability without invalidating or affecting
      the validity or enforceability of such provision in any other
      jurisdiction.

              

      

       

      
        	
                3.4  

              	
                Payment of
      Expenses.  The parties hereto agree to pay or reimburse
      each of the Credit Parties for all reasonable expenses in connection with
      the preparation, execution and carrying out of this Agreement and any
      other document in connection herewith or therewith, including but not
      limited to, reasonable fees and expenses of any counsel whom the Credit
      Parties may deem necessary or appropriate to retain, any duties,
      registration fees and other charges and all other reasonable out-of-pocket
      expenses incurred by any of the Credit Parties in connection with the
      foregoing.

              

      

       

      

      [SIGNATURE
PAGE FOLLOWS]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

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

      

      
        	
                RUSHMORE
      SHIPPING LLC, as Owners

                 

                 

                 

                By:
      /s/
      A F. Spouselee  /s/
      Asandro Danaerde 

                Name:
      A F. Spouselee      Asandro Danaerde   

                Title:
      Director 

                 

              	
                BEEKMAN
      SHIPPING CORP., as Charterers

                 

                 

                 

                By:
      /s/ Christophil B.
      Costas

                Christophil B.
Costas

                Attorney-in-Fact

                 

              
	
                TBS
      INTERNATIONAL LIMITED, as Guarantor

                 

                 

                 

                By:
      /s/
      Christophil B. Costas 

                Christophil B.
Costas

                Attorney-in-Fact

              	 
      

      

      

      

      

      CONSENT

      

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

      

      DVB BANK
AMERICA N.V.,

      as
Facility Agent for and on behalf of the Majority Lenders

      

      

      By: /s/ Daniel C. Rodgers

      Daniel C. Rodgers

      Attorney-in-FactWWW.EXFILE.COM, INC. -- 888-775-4789 -- CAPITAL CITY ENERGY GROUP, INC. -- EXHIBIT 10.1 TO FORM 8-K

     

    EXHIBIT 10.1

    
 

    ACCOUNTS RECEIVABLE
FINANCING AGREEMENT

     

    
      

      This
Summary Disclosure is merely a summary of the attached Agreement provided
for the convenience of the Client and the Client is urged to read the entire
Agreement for all details.  In any conflict between this Summary Disclosure
and the Agreement, the Agreement prevails.  Further, the Client understands
that Crestmark assumes no responsibility for the accuracy of this Summary
Disclosure, and is not liable for any conflict between this Summary Disclosure
and the Agreement, absent gross negligence or willful misconduct.

      

    

    
      SUMMARY
DISCLOSURE

      (all
terms subject to the terms and conditions of this Agreement)

      

       

      
        	

                Initial
      Purchase Price (up to):

                Purchase
      Discount:

                Incremental
      Discount:

              	
                80%

                1.25% for the first 30 days

                an additional 1.25% for each incremental 30
      days

              

      

       

    

    This
AGREEMENT is entered into by and between HOTWELL SERVICES, INC., a(n)
Delaware corporation, having its principal place of business at 1611 North Main
Street, Suite A, North Canton, Ohio 44720 ("Client"), and CRESTMARK COMMERCIAL CAPITAL LENDING
LLC located at 726 Highlandia Drive, Baton Rouge, Louisiana 70810
(hereinafter referred to as "Crestmark").

     

    AGREEMENT

     

    1. Purpose,
Definitions and Construction.  The purpose of this Agreement
and the financing provided herein is commercial in nature and is not for
household, consumer, family and/or personal use.  The following terms
have been given the following meanings:

     

    1.1.  “Account Debtor” - the obligor
on an Account.

     

    1.2.  “Account Due Date” - with
respect to a Purchased Account, thirty (30)
calendar days from the date on which the Initial Purchase Price is
paid.

     

    1.3. “Accounts” - accounts (as
defined in the Uniform Commercial Code) created by the Client.

     

    1.4. “Agreement” - This Accounts
Receivable Financing Agreement as modified or amended from time to time, and any
exhibits or attachments to this Agreement.

     

    1.5. “Avoidance Claim” - any claim
that any payment received by Crestmark from or for the account of an Account
Debtor is avoidable under the Bankruptcy Code or any other debtor relief
statute.

     

    1.6. “Crestmark” - see
preamble.

     

    1.7. “Crestmark Investment” - with
respect to a Purchased Account, the sum of (i) the Initial Purchase Price, plus
(ii) all past due fees and charges owed by Client to Crestmark relating to said
Purchased Account.

     

    1.8. “Crestmark Investment
Percentage” - 100% less the Reserve Percentage.

     

    1.9. “Clearance Days” – Three (3)
calendar days.

     

    1.10. “Client” - see
Preamble.

     

    1.11. “Closed” -a Purchased Account
is closed upon the first to occur of (i) receipt of full payment by Crestmark or
(ii) the unpaid balance has been charged to the Reserve Account by Crestmark
pursuant to the terms hereof.

     

    1.12. “Collateral” - all now owned
and hereafter acquired personal property and fixtures, and proceeds thereof,
(including proceeds of proceeds) including without limitation Accounts, Chattel
Paper, Goods Inventory, Equipment, Instruments, including Promissory Notes,
Investment Property, Documents, and General Intangibles.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.13. “Early Termination Fee” - the
sum of (i) all fees paid or payable by Client pursuant to Section 5 hereof in the ninety (90) day period preceding the
date on which the termination is to be made, and (ii) all Purchase Discounts
earned in the ninety (90) day period preceding the date on which the termination
is to be made.

     

    1.14.  “Eligible Account” - an Account
which is not an Ineligible Account.

     

    1.15. “Events of Default” - see
Section 15.

     

    1.16. “Exposed Payments” – Payments
received by Crestmark from an Account Debtor which has become subject to a
bankruptcy proceeding, to the extent such payments cleared said Account Debtor’s
deposit account within ninety days of the commencement of said bankruptcy
case.

     

    1.17. “Ineligible Accounts” -
Purchased Accounts:

     

    1.17.1. that do
not conform with the representations and warranties set forth in Section 12 of
this Agreement;

     

    1.17.2. or any
portion thereof, for which payment has not been received by Crestmark, for any
reason, within ninety (90) days of the date of invoice;

     

    1.17.3. which are
owned by Crestmark at the time that Client has committed an Event of Default
hereunder.

     

    1.18. “Initial Purchase Price” - the
Purchase Price less the Reserve Percentage relating to that Purchased
Account.

     

    1.19. “Incremental Discount” - with
respect to any Purchased Account which is unpaid in whole or in part, the
product of the Incremental Discount Percent multiplied by the Net Face Amount of
such Purchased Account.

     

    1.20. “Incremental Discount Percent”
– One and one-quarter percent (1.25%).

     

    1.21. “Incremental Discount Period” -
a thirty (30) day period.

     

    1.22. “Invoice” – the document that
evidences or is intended to evidence an Account.  Where the context so
requires, reference to an Invoice shall be deemed to refer to the Account to
which it relates.

     

    1.23. “Maximum Crestmark Investment”
- the product of the Net Face Amount of Purchased Accounts multiplied by the
Crestmark Investment Percentage.

     

    1.24. “Misdirected Payment Fee” -
fifteen percent (15%) of the amount of any payment on account of a Purchased
Account where said payment has been received by Client and not immediately
delivered in kind or the proceeds paid by Client to Crestmark.

     

    1.25. “Missing Notation Fee” –
fifteen percent (15%) of the Net Face Amount.

     

    1.26.  “Net Face Amount” - the gross
amount of a Purchased Account, based on shortest selling terms, less all
credits, discounts, and allowances to which the Account Debtor is
entitled.

     

    1.27. “Obligations” - all present and
future obligations owing by Client to Crestmark, whether or not for the payment
of money, whether or not evidenced by any note or other instrument, whether
direct or indirect, absolute or contingent, due or to become due, joint or
several, primary or secondary, liquidated or unliquidated, secured or unsecured,
original or renewed or extended, whether arising before, during or after the
commencement of any Bankruptcy Case in which Client is a debtor, and all
principal, interest, fees, charges, expenses, attorneys’ fees and accountants’
fees chargeable to Client or incurred by Crestmark in connection with this
Agreement and/or the transaction(s) related thereto.

     

    1.28. “Primary Defaults” - Events of
default as set forth in Sections 15.1, 15.2, 15.4, or 15.7 herein.

     

    1.29. “Purchase Discount” – One and
one-quarter percent (1.25%).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.30. “Purchase Price” - with respect
to a Purchased Account, the product of (i) the Net Face Amount multiplied by
(ii) 100% minus the Purchase Discount.

     

    1.31. “Purchase Schedule” – a
numbered schedule prepared by Crestmark listing those Accounts purchased by
Crestmark from Client.

     

    1.32. “Purchased Account” - an
Account which has been purchased by Crestmark from Client
hereunder.

     

    1.33.  “Reserve Account” - an account
established in the records of Crestmark (and not a segregated or separate
account), representing the difference between the Crestmark Investment and the
Net Face Amount of Purchased Accounts.

     

    1.34. “Reserve Percentage” – Eighteen
and three-quarters percent (18.75%).

     

    1.35. “Settlement Amount”- payments
received by Crestmark as proceeds of Purchased Accounts listed on a Purchase
Schedule in excess of the Crestmark Investment relating thereto.

     

    2. Sale and
Acceptance of Accounts.

     

    2.1. The
Client may tender to Crestmark for purchase pursuant to this Agreement certain
of its Accounts by delivering to Crestmark copies of the Invoices or the
original Invoices and any additional backup documentation relating thereto as
directed by Crestmark.

     

    2.2. Crestmark
will conduct such examination and verification of the Accounts, and such credit
investigation of the Account Debtors, as it considers necessary or desirable,
and will notify the Client as to which of the individual Accounts tendered by
the Client, if any, Crestmark elects to purchase from the
Client.  Crestmark shall have the absolute right, in its sole
discretion, to reject any or all of the Accounts tendered to it by the Client,
irrespective of whether or not Crestmark has previously purchased Accounts from
the Client or has purchased Accounts of any particular Account
Debtor.

     

    2.3. Those
Accounts which Crestmark elects to purchase from the Client shall be listed in a
Purchase Schedule sent by Crestmark to Client.  Client shall have been
deemed to have sold to Crestmark, and Crestmark shall be deemed to have
purchased all right, title, and interest of the Client in and to the Accounts
listed on the Purchase Schedule.

     

    3. Payment
of Purchase Price.

     

    3.1. The
Initial Purchase Price for each Purchased Account, less any amounts due by
Client to Crestmark hereunder, shall be paid to the Client in immediately
available funds at the time of purchase.

     

    3.2. Client
shall not permit the Crestmark Investment to exceed the Maximum Crestmark
Investment, and any such excess shall be paid by Client to Crestmark on
demand.

     

    4. Reserve
Account.

     

    4.1. Refund of
Reserve Account.  At Crestmark’s discretion, Crestmark shall pay the
Settlement Amount to Client, net of any amount due to Crestmark by Client
hereunder.

     

    4.2. Crestmark
may reduce the Reserve Account by any amounts due from Client to Crestmark
hereunder.

     

    4.3. Crestmark
may increase the Reserve Account at any time without notice if in the exercise
of its reasonable discretion such increase is necessary to reflect events,
conditions, contingencies or risks which do or may affect the value of the
Collateral or Client’s ability to perform its obligations
hereunder.

     

    4.4. Crestmark
may pay any amounts due Client hereunder by a credit to the Reserve
Account;

     

    4.5. Upon
termination of this agreement, Crestmark may retain the Reserve Account unless
and until Client has executed and delivered to Crestmark a general release in
the form of Exhibit A hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.6. Exposed
Payments.

     

    4.6.1. Upon
termination of this Agreement, Client shall pay to Crestmark (or Crestmark may
retain), to hold in a non-segregated non-interest bearing account, the amount of
all Exposed Payments (the “Preference Reserve”).

     

    4.6.2. Crestmark
may charge the Preference Reserve with the amount of any Exposed Payments which
Crestmark pays to the bankruptcy estate of the Account Debtor which made the
Exposed Payment, on account of a claim asserted under Section 547 of the
Bankruptcy Code.

     

    4.6.3. Crestmark
shall refund to Client from time to time that balance of the Preference Reserve
for which a claim under Section 547 of the Bankruptcy Code can no longer be
asserted due to the passage of the statute of limitations, settlement with the
bankruptcy estate of the Account Debtor or otherwise.

     

    5. Fees.

     

    5.1. Incremental
Discount.  Client shall pay to Crestmark, when a Purchased
Account is Closed, the Incremental Discount computed at the end of each
Incremental Discount Period (or portion thereof) relating to a Purchased Account
from the Account Due Date until the date Closed.

     

    5.2. Misdirected Payment
Fee.  Client shall pay any Misdirected Payment Fee to
Crestmark, immediately upon accrual.

     

    5.3. Missing Notation
Fee.  Client shall pay the Missing Notation Fee on any Account
that is sent by Client to an Account Debtor which does not contain the notice as
required by Section 8.1 hereof, immediately upon accrual.

     

    6. Clearance
Days.  For all purposes under this Agreement, Clearance Days
will be added to the date on which Crestmark receives any payment.

     

    7. Repurchase
of Accounts.  Crestmark may require that Client repurchase, by
payment of the Crestmark Investment, on demand, or, at Crestmark's option, by
Crestmark's charge to the Reserve Account:

     

    7.1. Any
Purchased Account which becomes an Ineligible Account;

     

    7.2. Any
Purchased Account, the payment of which has been disputed by the Account Debtor
obligated thereon, Crestmark being under no obligation to determine the bona
fides of such dispute;

     

    7.3. Any
Purchased Account for which Client has breached its warranty under Section 12
hereunder;

     

    7.4. Any
Purchased Account owing from an Account Debtor which in Crestmark’s reasonable
credit judgment has become insolvent; and

     

    7.5. All
Purchased Accounts upon the occurrence of an Event of Default or upon the
termination date of this Agreement.

     

    8. Collection of Accounts;
Special Power of Attorney.

     

    8.1. Client
shall direct the Account Debtors on Accounts to make payment as directed by
Crestmark by providing such notation on an Invoice as Crestmark shall
direct.

     

    8.2. Any
payments from Account Debtors received by Client contrary to payment
instructions given to such Account Debtors shall be delivered in kind to
Crestmark immediately upon receipt.

     

    8.3. Client
hereby grants Crestmark an irrevocable power of attorney (which, being coupled
with an interest, is irrevocable) for the purpose of acting on Client’s behalf
to:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.3.1. endorse
or sign Client’s name on any checks or other instruments which come into
Crestmark’s possession with respect to Accounts;

     

    8.3.2. negotiate,
transfer, deposit, and otherwise deal with such checks or other instruments as
the sole owner thereof; and

     

    8.3.3. to
settle, compromise, enforce and attempt to collect any Purchased Account or,
after the occurrence of an Event of Default, any Account.

     

    8.4. After an
Event of Default, Client hereby grants Crestmark an irrevocable power of
attorney (which, being coupled with an interest, is irrevocable) for the purpose
of acting on Client’s behalf to change the address for the delivery of mail to
Crestmark’s address and to receive and open mail addressed to
Client.

     

    8.5. In
granting this Power of Attorney, Client hereby cancels and revokes all previous
powers of attorney in respect of the matters comprised herein which have been
granted to any other person.

     

    9. Security
Interest.

     

    9.1. As
collateral securing the Obligations, Client grants to Crestmark a continuing
first priority security interest in and to the Collateral.

     

    9.2. Notwithstanding
the creation of the above security interest, the relationship of the parties
shall be that of purchaser and seller of accounts, and not that of lender and
borrower.

     

    10. Affirmative
Covenants.

     

    10.1. Client
shall provide Crestmark with:

     

    10.1.1. copies of
Client’s bank deposit records periodically, if requested by
Crestmark;

     

    10.1.2. Client’s
financial statements within thirty (30) days of the close of the Client’s prior
calendar month, which shall be certified by a responsible officer of
Client.  Any supporting detail which Crestmark may request in
connection with its review and analysis of the monthly financial statements of
Client shall be furnished to Crestmark upon request.

     

    10.2. Client
shall allow Crestmark to enter Client’s premises during normal business hours to
perform its review of Client’s records relating to the Collateral, or for any
other purpose reasonably necessary to facilitate this Agreement.

     

    10.3. Client
shall pay when due all payroll and other taxes, and shall provide proof thereof
to Crestmark in such form as Crestmark shall reasonably require.

     

    11. Notification
to Account Debtors.  Crestmark may at any time give notice to
Account Debtors that payments on Accounts shall be made directly to
Crestmark.  Such notice may be in the form of Exhibit “B”
hereto.  Client will execute a letter in the form of Exhibit “C”
hereto in support thereof.

     

    12. Representations
and Warranties.

     

    12.1. Client
expressly warrants, represents and covenants as follows:

     

    12.1.1. Client
shall immediately notify Crestmark in writing upon it acquiring any facts which
would cause a Purchased Account to become an Ineligible Account;

     

    12.1.2. Client
has good and indefeasible clear title to the Collateral and has the right, power
and authority, subject to all applicable governmental regulations, to sell
Purchased Accounts hereunder, and to grant a security interest in the Collateral
to Crestmark;

     

    12.1.3. the
Collateral is not subject to, and is free and clear of, any lien, claim, pledge,
security interest or encumbrance of any kind;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    12.1.4. Client is
properly licensed and authorized to operate its business under all applicable
State and Federal laws in the name designated for Client on the signature page
of this Agreement;

     

    12.1.5. Client
will not assign, pledge, subordinate, give a security interest in or otherwise
transfer any Collateral to any entity other than Crestmark or its
assigns;

     

    12.1.6. this
Agreement is binding upon Client as well as upon Client’s successors,
representatives and assigns, and is legally enforceable in accordance with its
terms;

     

    12.1.7. Client
will record its sale of Purchased Accounts to Crestmark and make notations
recording such sales in its accounting records and books.  Client
hereby binds itself, its successor and assigns to warrant and forever defend
title in and to the Collateral unto Crestmark, its successors and assigns,
against any and every person whomsoever may assert any claim to the Collateral
or any part thereof.

     

    12.1.8. The
Purchased Accounts are and will remain:

     

    12.1.8.1. bona fide
existing obligations created by the sale and delivery of goods or the rendition
of services in the ordinary course of Client’s business;

     

    12.1.8.2. unconditionally
owed and will be paid to Crestmark without defenses, disputes, offsets,
counterclaims, or rights of return or cancellation;

     

    12.1.8.3. not sales
to any entity which is affiliated with Client or in any way not an “arms length”
transaction.

     

    12.1.9. Client
has not received notice of actual or imminent bankruptcy, insolvency, or
material impairment of the financial condition of any applicable Account Debtor
regarding Purchased Accounts.

     

    12.2. The
foregoing representations, covenants and warranties will run to the benefit of
Crestmark’s successors and assigns and will be continuing in nature and will
remain in full force and effect until all obligations and sums owing to
Crestmark by Client have been fully performed, paid and satisfied, whether or
not this Agreement is canceled or terminated.  Client does hereby bind
itself, its successors and assigns, to indemnify and hold Crestmark (and its
successors and assigns) harmless from any and all cost incurred by Crestmark and
its successors and assigns, including attorney’s fees and court costs, for
breach of any warranty expressed in this Section.

     

    13. ACH
Authorization.  In order to satisfy any of the Obligations,
Crestmark is hereby authorized by Client to initiate electronic debit or credit
entries through the ACH system to any deposit account maintained by Client
wherever located.

     

    14. Avoidance
Claims.

     

    14.1. Client
shall indemnify Crestmark from any loss arising out of the assertion of any
Avoidance Claim and shall pay to Crestmark on demand the amount
thereof.

     

    14.2. Client
shall notify Crestmark within two (2) business days of it becoming aware of the
assertion of an Avoidance Claim.

     

    14.3. This
Section 14 shall survive termination of this Agreement.

     

    15. Events of
Default.  Client will be in default of this Agreement upon the
happening of any of the following events (herein called “Events of
Default”):

     

    15.1. the
failure by Client to pay any sums due to Crestmark;

     

    15.2. the
happening of any event which results in the creation of a Misdirected Payment
Fee;

     

    15.3. the
failure by Client to provide any reports or other information to Crestmark as
required hereunder;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15.4. the
denial to Crestmark of access to Client’s premises or records as required
herein;

     

    15.5. the
breach of any warranty, covenant or representation made herein or in connection
herewith;

     

    15.6. the
commencement of any insolvency or debtor-relief proceeding by or against
Client;

     

    15.7. Client’s
failure to pay any State or Federal tax when due;

     

    15.8. The
Client or any present or future guarantor of the Obligations becoming indicted
or the target of any criminal investigation by any law enforcement authority, or
the service of a subpoena or other discovery on the Client in connection with
any claim asserted against the Client or any guarantor by any governmental
authority;

     

    15.9. A sale,
hypothecation or other disposition is made of twenty percent (20%) or more of
the beneficial interest in any class of voting stock of Client, without the
written consent of Crestmark.

     

    16. Remedies.

     

    16.1. Upon the
occurrence of a Primary Default, or an Event of Default other than a Primary
Default which has not been cured within three (3) business days after notice by
Crestmark to Client, Crestmark may:

     

    16.1.1. elect to
declare any and all Purchased Accounts to be Ineligible Accounts;

     

    16.1.2. declare
that all Obligations are immediately due and payable without notice and without
opportunity for cure;

     

    16.1.3. commence
and effect collection of any and all Collateral by whatever means Crestmark
deems reasonable and necessary, without recourse to judicial proceedings against
Client. Client expressly relieves and releases Crestmark and its assigns, as the
secured party, of any and all liability or responsibility whatever which might
arise because of Crestmark's or its assign's failure to enforce by judicial
process, or otherwise, any Account, or because of its failure to give any notice
or make any demand with regard thereto.

     

    16.2. Crestmark
shall have all rights and remedies of a secured party under applicable law,
including the right to enter, during normal business hours, upon the premises
where any Collateral is located and take immediate possession of such Collateral
and remove same from such premises.

     

    16.3. To the
extent deemed reasonably necessary by Crestmark to aid in the collection of the
Collateral, Crestmark will have the right to the use of any computer hardware,
software, account ledgers, books, records, files and computer disks used by
Client pertaining to the Collateral.

     

    16.4. Crestmark
may avail itself of all such other rights and remedies as may now or hereafter
exist at law or in equity for collection of said sums due and the enforcement of
the covenants, warranties and representations herein and resort to any one or
combination of such remedies provided hereunder will not prevent the concurrent
or subsequent employment of any other appropriate remedy.

     

    17. Survival.  All
representations, warranties and agreements herein contained on the part of
Client shall be effective so long as Obligations remain
outstanding.

     

    18. Severability
of Provisions.  In the event any one or more of the provisions
contained in this Agreement is held to be invalid, illegal or unenforceable in
any respect, then such provision shall be ineffective only to the extent of such
prohibition or invalidity, and the validity, legality, and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby.

     

    19. Amendment
and Waiver.  This Agreement shall not be changed, modified,
amended, or terminated except by a writing duly executed by Crestmark and
Client.

     

    20. No
Waiver.  No failure to exercise and no delay in exercising any
right, power, or remedy hereunder shall impair any right, power, or remedy which
Crestmark may have, nor shall any such delay be construed to be a waiver of any
of such 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    rights,
powers, or remedies, or any acquiescence in any breach or default hereunder; nor
shall any waiver of any breach or default of Client hereunder be deemed a waiver
of any default or breach subsequently occurring.  All rights and
remedies granted to Crestmark hereunder shall remain in full force and effect
notwithstanding any single or partial exercise of, or any discontinuance of
action begun to enforce, any such right or remedy.  The rights and
remedies specified herein are cumulative and not exclusive of each other or of
any rights or remedies which Crestmark would otherwise have.  Any
waiver, permit, consent or approval by Crestmark of any breach or default
hereunder must be in writing and shall be effective only to the extent set forth
in such writing and only as to that specific instance.

     

    21. Successors
and Assigns.

     

    21.1. This
Agreement shall be binding upon and inure to the benefit of Crestmark, Client,
and their respective successors and assigns.

     

    21.2. Crestmark
may assign its rights and delegate its duties hereunder.  Upon such
assignment, Client shall be deemed to have attorned to such assignee and shall
owe the same obligations to such assignee and shall accept performance hereunder
by such assignee as if such assignee were Crestmark.

     

    22. Waiver of
Statute of Limitations.  Client waives the pleading of any
statute of limitations with respect to any and all actions in connection
herewith.

     

    23. Jurisdiction
and Venue.  Client hereby irrevocably agrees that all actions
and proceedings arising out of or in any way connected with this Agreement shall
be litigated in courts having situs within the City of Baton Rouge, State of
Louisiana, and Client hereby consents and submits to the jurisdiction of any
local, state or federal court located within said
jurisdiction.  Client hereby irrevocably appoints and designates the
Secretary of State of Louisiana as Client's true and lawful attorney and duly
authorized agent for acceptance of service of legal process.  Client
agrees that service of such process upon such person shall constitute personal
service of such process upon Client.  Client hereby waives any right
it may have to transfer or change the venue of any litigation arising out of or
in any way connected with this Agreement.

     

    24. Waiver of Trial by
Jury.  IN RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY
RESULT FROM A JURY TRIAL, THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING HEREUNDER, OR (B) IN
ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND
EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY
PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF
THEIR RIGHT TO TRIAL BY JURY.

     

    25. Costs and
Expenses.

     

    25.1. Client
agrees to reimburse Crestmark for all costs and expenses, including attorneys'
fees, which Crestmark has incurred or may incur in:

     

    25.1.1. negotiating,
preparing, administering or enforcing this Agreement and any documents prepared
in connection herewith;

     

    25.1.2. protecting,
monitoring, preserving or enforcing any lien, security interest or other right
granted by Client to Crestmark (including travel expenses of Crestmark’s
employees and agents), or arising under applicable law, whether or not suit is
brought,

     

    25.1.3. connection
with any federal or state insolvency proceeding commenced by or against Client,
including those (i) arising out of the automatic stay, (ii) seeking dismissal or
conversion of the bankruptcy proceeding or (iii) opposing confirmation of
Client's plan thereunder;

     

    25.1.4. connection
with Client's sale of the Purchased Accounts and the grant of a security
interest in and to the Collateral (and other accounts receivable) to Crestmark,
filing fees, public records searches, and other expenses directly 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    related
to the sale of the Accounts and the perfection of the security
interest.  All such direct out-of-pocket expenses incurred by
Crestmark shall be reimbursed by Client to Crestmark on demand.

     

    25.2. All such
costs and expenses which have been incurred on or prior to the execution hereof
shall be paid contemporaneously with the execution hereof.  Any such
costs and expenses incurred subsequent to the execution hereof shall become part
of the Obligations when incurred.

     

    26. Term;
Termination.

     

    26.1. This
Agreement will be effective for an initial term of one (1) year, commencing with
the Effective Date as set forth below and will continue thereafter automatically
renewing annually unless terminated by either party upon written notice of
termination sent not less than thirty (30) nor more than ninety (90) days prior
to the next anniversary date hereof specifying such party's intention to
terminate this Agreement on the next anniversary date.

     

    26.2. Early Termination
Fee.  In the event that Client seeks to terminate this
Agreement other than as set forth in Section 26.1 above, Client shall pay the
Early Termination Fee to Crestmark as a condition to Crestmark's consent
thereto.

     

    26.3. No
termination of this Agreement will in any way affect or impair any right of
Crestmark arising prior thereto or by reason thereof, nor will any such
termination relieve Client of any duty to Crestmark under, nor deny Crestmark
any benefit from, this Agreement or otherwise until all of Obligations have been
fully discharged.

     

    26.4. No Lien Termination Without
Release.  In recognition of Crestmark’s right to have its
attorneys’ fees and other expenses incurred in connection with this Agreement
secured by the Collateral, notwithstanding payment in full of all Obligations by
Client, Crestmark shall not be required to record any terminations or
satisfactions of any of its liens on the Collateral unless and until Client and
all guarantors of its obligations have executed and delivered to Crestmark a
general release in the form of Exhibit A hereto.  Client understands that this
provision constitutes a waiver of its rights under §9-513 of the
UCC.

     

    27. State
Law; Jurisdiction.   This Agreement is accepted, made and
will be governed by the laws of the State of Louisiana without regard to
conflict of laws principles. All sums due hereunder are payable in the State of
Louisiana. Venue and jurisdiction will be exclusively in the state district
courts of the Parish of East Baton Rouge, State of Louisiana. Both parties waive
their right to trial by jury and agree to submit all disputed issues to the
judge of any court in which any litigation is pending.

     

    28. Miscellaneous.   This
Agreement sets forth the entire agreement and understanding between the parties
relating to the subject matter herein and merges all prior discussion between
them. Client may not assign any of its rights or obligations hereunder without
the prior written consent of Crestmark; however, Crestmark may assign any of its
rights and remedies. All notices pursuant to the Agreement must be in writing
and will be deemed given when (1) mailed postage prepaid by certified or
registered mail, return receipt requested, or (2) courier delivered personally
to the party concerned at the address set forth herein, or (3) facsimile
transmitted to the party concerned at the telecopier number given by the
respective party. The provisions of this Agreement are severable and if any of
these provisions will be held by any court of competent jurisdiction to be
unenforceable, void or voidable, such holding will not affect or impair any
other provision hereof. Crestmark may assign its rights and remedies including
assignments for financing and/or collateralization purposes. Client consents to
Crestmark or its assignees conducting a comprehensive due diligence review and
financial history investigation relating to Client. This Agreement may be
modified or amended only in writing signed by both parties.

     

    29. USA
Patriot Act Notification. – The following notification is provided to
Client pursuant to Section 3265 of the USA Patriot Act of 2001, 31 U.S.C.
Section 5318:

    IMPORTANT
INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.  To help the
government fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify, and record
information that identifies each person or entity that opens an account,
including any deposit account, treasury management account, loan or other
extension of credit.  Crestmark will ask for the name, address, date
of birth, and other information that will allow Crestmark to identify all of
Client’s owners.  Crestmark will also ask for a copy of each owner’s
driver’s license or other identifying documents.

    

    SIGNATURE
PAGE TO FOLLOW

     

    
 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
WITNESS WHEREOF, the respective authorized officers of the parties have executed
this Agreement effective as of the date hereof.

     

    Accepted
in Baton Rouge, Louisiana this

    27 day
of March, 2009.

    
    

     

    
      	
              CRESTMARK COMMERCIAL CAPITAL
      LENDING LLC

               

              
                By: 
      /s/ Patrick Haney

                

                  
      

                 

                Print
      Name: Patrick Haney

                 

                Title:
      President

              

            	
              HOTWELL SERVICES,
      INC.

               

              By:  /s/ Daniel R. Coffee

              

                
      

               

              Print Name: Daniel R. Coffee

               

              Title: VP

            

    

     

     

    Effective
Date:   March 27, 2009

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