Document:

ex_10-16.htm

TBS INTERNATIONAL PLC & SUBSIDIARIES                                              EXHIBIT 10.16

 

Date    15 April 2011

 

GRAINGER MARITIME CORP.

as Borrower

 

 

- and -

 

TBS INTERNATIONAL LIMITED

as Guarantor 1

 

- and -

 

TBS WORLDWIDE SERVICES INC.

as Guarantor 2

- and -

TBS HOLDINGS LIMITED

as Guarantor 3

- and -

TBS INTERNATIONAL PUBLIC LIMITED COMPANY

as Guarantor 4

 

- and -

 

 

JOH. BERENBERG, GOSSLER & CO. KG

as Lender

 

	
SUPPLEMENTAL AGREEMENT NO. 3

 

relating to a facility of (originally) US$13,000,000 with US$5,687,500 outstanding

 

for m.v. “OTTAWA PRINCESS”

 

 

  

  

  

INDEX

 

Clause Page

	
1

	
INTERPRETATION

	
1

	
2

	
AGREEMENT OF THE LENDER

	
2

	
3

	
CONDITIONS PRECEDENT

	
2

	
4

	
REPRESENTATIONS AND WARRANTIES

	
2

	
5

	
AMENDMENT OF LOAN AGREEMENT AND EXISTING FINANCE DOCUMENTS

	
2

	
6

	
FEES AND EXPENSES

	
3

	
7

	
COMMUNICATIONS

	
3

	
8

	
SUPPLEMENTAL

	
3

	
9

	
LAW AND JURISDICTION

	
3

	
SCHEDULE 1 AMENDMENTS TO THE LOAN AGREEMENT

	
4

	
EXECUTION PAGE

	
1

	  	  	  

 

 

 

 

 

 

  

  

  

 

THIS AGREEMENT is made on 15 April 2011

 

BETWEEN

 

	
(1)  

	
GRAINGER MARITIME CORP., a corporation organised and existing under the laws of the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the “Borrower”);

 

	
(2)  

	
TBS INTERNATIONAL LIMITED, a company incorporated in Bermuda whose registered office is at Suite 306, Commerce Building, One Chancery Lane, Hamilton HM12, Bermuda (the “Guarantor 1”);

 

	
(3)  

	
TBS WORLDWIDE SERVICES INC., a company incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH 96960, Marshall Islands (the “Guarantor 2”);

 

	
(4)  

	
TBS HOLDINGS LIMITED, a company incorporated in Bermuda, whose registered office is at Suite 306, Commerce Building, One Chancery Lane, Hamilton HM 12, Bermuda (the “Guarantor 3”);

 

	
(5)  

	
TBS INTERNATIONAL PUBLIC LIMITED COMPANY, a company incorporated in Ireland whose registered office is at Arthur Cox Building, Earlsfort Terrace, Dublin 2, Ireland (the “Guarantor 4” and, together with the Guarantors 1 – 3, the “Guarantors”); and

 

	
(6)  

	
JOH. BERENBERG, GOSSLER & CO. KG, acting through its office at Neuer Jungfernstieg 20, 20354 Hamburg, Germany (the ”Lender”).

 

	
  

	
BACKGROUND

 

	
(A)  

	
By a loan agreement dated 19 June 2008 as supplemented by a supplemental agreement no. 1 dated 28 January 2010 and by a supplemental agreement no. 2 dated 27 January 2011 (and as amended and/or supplemented from time to time) and made between (i) the Borrower and (ii) the Lender, the Lender has made available to the Borrower a facility of (originally) US$13,000,000 with US$5,687,500 outstanding.

 

	
(B)  

	
This Agreement sets out the terms and conditions on which the Lender agrees, with effect on and from the Effective Date, to the request of the Security Parties to amend the Loan Agreement as described herein.

 

IT IS AGREED as follows:

 

	
1  

	
INTERPRETATION

 

	
1.1  

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

 

	
1.2  

	
Definitions.  In this Agreement, unless the contrary intention appears:

 

“Effective Date”  means date on which the conditions precedent in Clause 3.2 are satisfied;

 

“Loan Agreement” means the loan agreement dated 19 June 2008 (as amended from time to time)  referred to in Recital (A);

 

	
1.3  

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

 

	
2  

	
AGREEMENT OF THE LENDER

 

	
2.1  

	
Agreement of the Lender.  The Lender agrees, subject to and upon the terms and conditions of this Agreement, to the amendments to the Loan Agreement and the Finance Documents pursuant to Schedule 1.

 

	
2.2  

	
Agreement of the Borrower and the Guarantors.  The Borrower and the Guarantors hereby agree to the amendments to the Loan Agreement pursuant to Schedule 1.

 

	
2.3  

	
Effective Date. The agreement of the Lender contained in Clause 2.1 shall have effect on and from the Effective Date.

 

	
3  

	
CONDITIONS PRECEDENT

 

	
3.1  

	
General.  The agreement of the Lender contained in Clause 2.1 is subject to the fulfilment of the conditions precedent in Clauses 3.2.

 

	
3.2  

	
Conditions precedent.  The conditions referred to in Clause 3.1 are that the Lender shall have received the following documents and evidence in all respects in form and substance satisfactory to the Lender and its lawyers:

 

	
(a)  

	
a duly executed original of this Agreement duly executed by the parties to it; and

 

	
(b)  

	
evidence that each of the other TBS Credit Facilities (other than the Commerzbank AG Credit Facility) has been restructured upon the Effective Date with the approval of all of the creditors under such TBS Credit Facilities.

 

	
4  

	
REPRESENTATIONS AND WARRANTIES

 

	
4.1  

	
Repetition of Loan Agreement representations and warranties.  The Borrower represents and warrants to the Lender that the representations and warranties in clause 10 of the Loan Agreement, as amended and supplemented by this Agreement and updated with appropriate modifications to refer to this Agreement, remain true and not misleading if repeated on the date of this Agreement and the Effective Date with reference to the circumstances now and then existing.

 

	
4.2  

	
Repetition of Finance Document representations and warranties.  The Borrower and each of the Security Parties represents and warrants to the Lender that the representations and warranties in the Finance Documents (other than the Loan Agreement) to which it is a party, as amended and supplemented by this Agreement and updated with appropriate modifications to refer to this Agreement, remain true and not misleading if repeated on the date of this Agreement and the Effective Date with reference to the circumstances now and then existing.

 

	
5  

	
AMENDMENT OF LOAN AGREEMENT AND EXISTING FINANCE DOCUMENTS

 

	
5.1  

	
Amendments to Loan Agreement

 

	
(a)  

	
With effect on and from the Effective Date the Loan Agreement shall be, and shall be deemed by this Agreement to be, amended as per the amendments set out in Schedule 1.  In addition the Loan Agreement shall be amended so that this Agreement becomes an integral part of the Loan Agreement, so that (i) all references therein to this “Agreement” shall include this Agreement, and (ii) the definitions set out in Clause 1.2 of this Agreement are included in Clause 1.1 of the Loan Agreement.

 

	
(b)  

	
As so amended pursuant to (a) above, the Loan Agreement shall continue to be binding on each of the parties to it in accordance with its terms.

 

	
5.2  

	
Amendments to the other Finance Documents.  With effect on and from the Effective Date each of the Finance Documents other than the Loan Agreement shall be, and shall be deemed by this Agreement to be, amended as follows:

 

	
(a)  

	
the definition of, and references throughout each of the Finance Documents to, the Loan Agreement and any of the Finance Documents shall be construed as if the same referred to the Loan Agreement and those Finance Documents as amended and supplemented by this Agreement; and

 

	
(b)  

	
by construing references throughout each of the Finance Documents to “this Agreement”, “this Deed”, “hereunder” and other like expressions as if the same referred to such Finance Documents as amended and supplemented by this Agreement.

 

	
(c)  

	
Finance Documents to remain in full force and effect.  The Finance Documents shall remain in full force and effect.

 

	
6  

	
FEES AND EXPENSES

 

	
6.1  

	
Expenses.  The provisions of clause 14 (expenses) of the Loan Agreement, as amended and supplemented by this Agreement, shall apply to this Agreement as if they were expressly incorporated in this Agreement with any necessary modifications.

 

	
7  

	
COMMUNICATIONS

 

	
7.1  

	
General.  The provisions of clause 19 (notices) of the Loan Agreement, as amended and supplemented by this Agreement, shall apply to this Agreement as if they were expressly incorporated in this Agreement with any necessary modifications.

 

	
8  

	
SUPPLEMENTAL

 

	
8.1  

	
Counterparts.  This Agreement may be executed in any number of counterparts.

 

	
8.2  

	
Finance Document.  This Agreement is a Finance Document.

 

	
9  

	
LAW AND JURISDICTION

 

	
9.1  

	
Governing law.  This Agreement and any non-contractual obligations arising from or in connection with it shall be governed by and construed in accordance with German law.

 

	
9.2  

	
Incorporation of the Loan Agreement provisions.  The provisions of clause 21 (law and jurisdiction) of the Loan Agreement, as amended and supplemented by this Agreement, shall apply to this Agreement as if they were expressly incorporated in this Agreement with reference to the Borrower to include the Guarantors and with any other necessary modifications.

 

THIS AGREEMENT has been duly executed on the date stated at the beginning of this Agreement.

 

 

 

  

  

  

SCHEDULE 1

 

 

AMENDMENTS TO THE LOAN AGREEMENT

 

	
1  

	
A new clause 10.7 shall be added to the Loan Agreement as follows:

 

“10.7                      Supplemental Agreement No. 2 Provisions. Notwithstanding the other provisions of the Loan Agreement:

 

	
(a)  

	
Additional capital contributions, separate from the Capital Infusions already received by or pledged to the Guarantor 4 (such contributions, the “Incremental Capital Contributions”), may be received by the Guarantor 4 after the Effective Date and prior to January 1, 2012 in respect of the issuance of preferred equity, common equity or Permitted Subordinated Debt (as defined below).  “Permitted Subordinated Debt” means subordinated debt (including subordinated debt convertible into equity) that has a maturity no earlier than 6 months after the maturity of the TBS Credit Facilities (other than that certain TBS Credit Facility with Credit Suisse AG, as sole lender), has no required principal payments prior to maturity, provides for any cash interest at a rate acceptable to the Lender, contains no maintenance financial covenants and contains other covenants and events of default that are less restrictive than the TBS Credit Facilities, and no cross default to other debt of the Borrower, the Guarantor 4 and/or any of its subsidiaries, all on terms acceptable to the Lender;

 

	
(b)  

	
Incremental Capital Contributions received on or after the Effective Date and prior to 1 January 2012 shall be deposited directly in the Special Account.  The existing limits on amounts deposited and able to be re-deposited in the Special Account shall be increased to include any such Incremental Capital Contributions received in 2011 as described above;

 

	
(c)  

	
all amounts in the Special Account including amounts already deposited as of the Effective Date and any Incremental Capital Contributions that may be deposited during 2011, shall not be included in the calculation of Excess Cash for the purposes of the prepayments to be made hereunder ; and

 

	
(d)  

	
Capital Infusions and Permitted Additional Junior Capital may be paid to the Guarantor 4 in respect of the issuance by the Guarantor 4 of preferred equity, common equity or Permitted Subordinated Debt.

 

 

  

  

  

EXECUTION PAGE

 

  

	
BORROWER

	  
	
EXECUTED and DELIVERED

	
)

	
by GRAINGER MARITIME CORP.

	
)

	
acting by Christophil B. Costas

	
)   /s/ Christophil B. Costas

	
its duly authorised

	
)

	
attorney-in-fact in the presence of: /s/ Loraine Brown 

	
)

	  	  
	
GUARANTORS

	  
	
EXECUTED and DELIVERED

	
)

	
by TBS INTERNATIONAL LIMITED

	
)

	
acting by Christophil B. Costas

	
) /s/ Christophil B. Costas

	
its duly authorised

	
)

	
attorney-in-fact in the presence of: /s/ Loraine Brown 

	
)

	 	 
	
EXECUTED and DELIVERED as a DEED

	
)

	
by TBS WORLDWIDE SERVICES INC.

	
)

	
acting by Christophil B. Costas

	
) /s/ Christophil B. Costas

	
its duly authorised

	
)

	
attorney-in-fact in the presence of: /s/ Loraine Brown 

	
)

	  	  
	
EXECUTED and DELIVERED

	
)

	
by TBS HOLDING LIMITED

	
)

	
acting by Christophil B. Costas

	
) /s/ Christophil B. Costas

	
its duly authorised

	
)

	
attorney-in-fact in the presence of: /s/ Loraine Brown 

	
)

	  	  
	
EXECUTED and DELIVERED

	
)

	
by TBS INTERNATIONAL PUBLIC LIMITED

	
)

	
COMPANY

	
)

	
acting by Christophil B. Costas

	
) /s/ Christophil B. Costas

	
its duly authorised

	
)

	
attorney-in-fact in the presence of: /s/ Loraine Brown 

	
)

	  	  
	
LENDER

	  
	
EXECUTED and DELIVERED

	
)

	
by JOH. BEERENBERG, GOSSLER & CO. KG

	
)

	
acting by Scholtheis Ch. Speer

	
) /s/ Scholtheis Ch. Speer

	
its duly authorised

	
)

	
attorney-in-fact in the presence of:

	
)ex_10-17.htm

TBS INTERNATIONAL PLC & SUBSIDIARIES                   EXHIBIT 10.17

TBS INTERNATIONAL PLC

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN

 

FORM OF RESTRICTED SHARE AWARD AGREEMENT

 

RESTRICTED SHARE AWARD AGREEMENT (this “Agreement”) dated as of [DATE] (the “Issue Date”) between TBS INTERNATIONAL PLC (the “Company”), and [PARTICIPANT] (the “Participant”).

 

WHEREAS, pursuant to the Amended and Restated 2005 Equity Incentive Plan (the “Plan”), the Committee designated under the Plan desires to issue to the Participant an award of restricted shares of Class A Ordinary Shares, par value U.S. $0.01 per share, of the Company (the “Restricted Shares”); and

 

WHEREAS, the Participant desires to accept such restricted share award subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements contained herein, the Company and the Participant, intending to be legally bound, hereby agree as follows:

 

1. Definitions.  Defined terms in the Plan shall have the same meaning in this Agreement, except where the context otherwise requires.

 

2. Issue of Restricted Shares.  On the Issue Date, the Company hereby issues to the Participant an Award of _____ Restricted Shares (the “Award”) in accordance with Section 9 of the Plan and subject to the conditions set forth in this Agreement and the Plan (as amended from time to time).  The Award represents the right to receive and retain up to the number of shares set forth in the preceding sentence (as adjusted from time to time pursuant to Section 16(a) of the Plan) subject to the fulfillment of the vesting conditions set forth in this Agreement.  By accepting the Award, the Participant irrevocably agrees on behalf of the Participant and the Participant’s successors and permitted assigns to all of the terms and conditions of the Award as set forth in or pursuant to this Agreement and the Plan (as such Plan may be amended from time to time).

 

3. Vesting.  Subject to the Participant’s continuous service with the Company, the Participant’s rights in and to the Restricted Shares subject to the Award shall vest in full on the date of the Company’s _____ Annual General Meeting of Shareholders.  If the Participant’s service with the Company ceases for any reason before such date, then the Participant’s rights in and to any unvested Restricted Shares will forfeit to the Company immediately and without further notice.

 

4. Issuance of Certificates; Status of Participant.

 

(a) Share certificates representing the Restricted Shares may be issued by the Company in the name of the Participant and held in escrow by the Company until the Restricted Shares vest, or the Company may hold non-certificated shares in the name of the Participant until the Restricted Shares vest.

 

(b) From and after the Issue Date, the Participant will be recorded as a shareholder of the Company with respect to the Restricted Shares subject to the Award (whether vested or unvested) and shall have voting rights with respect to such Restricted Shares in accordance with the Company’s Articles of Association unless and until any such Restricted Shares are forfeited or transferred back to the Company.

 

5. Forfeiture; Right of Repurchase Provisions.  Nothing in this Agreement will limit the Company’s rights pursuant to Section 15 or Section 9 of the Plan.

 

6. Dividends.  From and after the Issue Date and unless and until the Restricted Shares are forfeited or otherwise repurchased by the Company, the Participant will be entitled to receive all dividends and other distributions paid with respect to the Restricted Shares subject to this Award; provided however that any Restricted Shares or other securities of the Company received by a Participant as a result of a share distribution or as a share dividend or bonus issue with respect to the Restricted Shares awarded hereunder shall be subject to the same restrictions as such Restricted Shares.

 

7. Withholding and Disposition of Restricted Shares.

 

(a) Generally.  The Participant is liable and responsible for all taxes owed in connection with the Award, regardless of any action the Company takes with respect to any tax withholding obligations that arise in connection with the Award.  The Company does not make any representation or undertaking regarding the treatment of any tax withholding in connection with the issuance or vesting of the Award or the subsequent withholding and/or sale of Restricted Shares issuable pursuant to the Award.  The Company does not commit and is under no obligation to structure the Award to reduce or eliminate Participant’s tax liability.

 

(b) Payment of Withholding Taxes.  Prior to any event in connection with the Award (e.g., issue/vesting of the Award) that the Company determines may result in any domestic or foreign tax withholding obligation, whether national, federal, state or local, including any social tax obligation (the “Tax Withholding Obligation”), the amount of the Tax Withholding Obligation shall be satisfied as set forth in this Paragraph 7(b) and the Participant agrees to the provisions of this Paragraph 7(b) as a condition of receiving any financial benefit or gain from the Award.

 

(i) By Tendering Shares.  Unless the Participant elects to satisfy the Tax Withholding Obligation by an alternative means in accordance with Paragraph 7(b)(ii), Participant’s receipt of this Award and/or any financial benefit or gain from this Award constitutes Participant’s instruction and authorization, at or about the time the Award vests, for the Company to use Net Settlement and to tender to the Company for repurchase for nil consideration pursuant to Section 41(1) of the Companies (Amendment) Act 1983 the number of Restricted Shares from those Restricted Shares then vesting that the Company determines is sufficient to satisfy the Participant’s Tax Withholding Obligation (with any fractional share resulting from Net Settlement being rounded down to the nearest whole number) (the “Tendered Shares”).  The Participant renounces all rights to Tendered Shares and agrees that the Company may dispose of the Tendered Shares pursuant to Section 43(3) of the Companies (Amendment) Act 1983 in such manner and at such prices and times and to such other persons as it may determine without any obligation to account to the Participant for the proceeds of such issue and/or disposal.

 

(ii)           By Other Payment.  At any time not less than five (5) business days before any Tax Withholding Obligation arises, the Participant may notify the Company of Participant’s election to pay Participant’s Tax Withholding Obligation.  In such case, the Participant shall satisfy his or her tax withholding obligation by paying to the Company on such date as it shall specify an amount that the Company determines is sufficient to satisfy the expected Tax Withholding Obligation by (i) wire transfer to such account as the Company may direct, (ii) delivery of a cashier’s check payable to the Company, Attn: Compliance Officer, at the Company’s principal executive offices, or such other address as the Company may from time to time direct, or (iii) such other means as the Company may establish or permit.  Participant agrees and acknowledges that prior to the date the Tax Withholding Obligation arises, the Company will be required to estimate the amount of the Tax Withholding Obligation and accordingly may require the amount paid to the Company under this Paragraph 7(b)(ii) to be more than the minimum amount that may actually be due and that, if the Participant has not delivered payment of a sufficient amount to the Company to satisfy the Tax Withholding Obligation (regardless of whether as a result of the Company underestimating the required payment or Participant failing to timely make the required payment), the additional Tax Withholding Obligation amounts shall be satisfied in the manner specified in Paragraph 7(b)(i).

 

8. Power of Attorney. To secure the Participant’s obligations under Paragraph 7, the Participant hereby irrevocably appoints and authorizes the Chief Executive Officer or Chief Financial Officer of the Company, severally, to be his true and lawful attorney so that such attorney may act for the Participant and in the Participant’s name to execute, sign, seal, deliver and complete any deed or document or receive any notice or to take or do any decision, act, matter or thing which shall, in the opinion of such attorney, be required to be executed, signed, sealed, delivered, completed, taken or done in order to sell or otherwise deal in the Tendered Shares.

 

9. Committee Authority.  Any question concerning the interpretation of this Agreement or the Plan, any adjustments required to be made under this Agreement or the Plan, and any controversy that may arise under this Agreement or the Plan shall be determined by the Committee in its sole and absolute discretion.  All decisions by the Committee shall be final and binding.

 

10. Application of the Plan.  The terms of this Agreement are governed by the terms of the Plan, as it exists on the date hereof and as the Plan is amended from time to time.  In the event of any conflict between the provisions of this Agreement and the provisions of the Plan, the terms of the Plan shall control, except as expressly stated otherwise herein.  As used herein, the term “Section” generally refers to provisions within the Plan, and the term “Paragraph” refers to provisions of this Agreement.

 

11. No Right to Continued Employment.  Nothing in the Plan, in this Agreement or any other instrument executed pursuant thereto or hereto shall confer upon the Participant any right to continued employment with the Company or any of its subsidiaries or affiliates, or interfere in any way with the right of the Company or any of its subsidiaries to terminate the Participant’s employment or other service relationship for any reason at any time.

 

12. Further Assurances.  Each party hereto shall cooperate with each other party, shall do and perform or cause to be done and performed all further acts and things, and shall execute and deliver all other agreements, certificates, instruments, and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the Plan.

 

13. Entire Agreement.  This Agreement and the Plan together set forth the entire agreement and understanding between the parties as to the subject matter hereof and supersede all prior oral and written and all contemporaneous or subsequent oral discussions, agreements and understandings of any kind or nature.

 

14. Binding on Transferees.  The provisions of the Plan and this Agreement will inure to the benefit of, and be binding on, the Company and its transferees and assigns and the Participant and Participant’s executor, administrator and permitted transferees and beneficiaries, whether or not any such person will have become a party to this Agreement and agreed in writing to join herein and be bound by the terms and conditions hereof.

 

15. Securities Law Compliance.  The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by Participant or other subsequent transfers by Participant of any Restricted Shares issued as a result of or under this Award, including without limitation (i) restrictions under an insider trading policy, (ii) restrictions that may be necessary in the absence of an effective registration statement under the Securities Act of 1933, as amended, covering the Award and/or the Shares underlying the Award and (iii) restrictions as to the use of a specified brokerage firm or other agent for such resales or other transfers.  Any sale of the Restricted Shares must also comply with other applicable laws and regulations governing the sale of such shares.

 

16. Applicable Law.  The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of Delaware without giving effect to the conflicts of laws provisions thereof.

 

[signature page follows]

  

  

  

 

The parties hereto have executed this Agreement as of the date first above written.

	
[PARTICIPANT]

Name:

(printed)

	
TBS INTERNATIONAL PLC

By:

Name:

Title:

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