Document:

Exhibit 10.3

 

Dated: as of September 7, 2011

 

BEDFORD MARITIME CORP.

BRIGHTON MARITIME CORP.

HARI MARITIME CORP.

PROSPECT NAVIGATION CORP.

HANCOCK NAVIGATION CORP

COLUMBUS MARITIME CORP.

and

WHITEHALL MARINE TRANSPORT CORP.

as joint and several Borrowers

 

TBS INTERNATIONAL LIMITED

TBS HOLDINGS LIMITED

and

TBS INTERNATIONAL PUBLIC LIMITED COMPANY

as Guarantors

 

DVB GROUP MERCHANT BANK (ASIA) LTD.

as Lender

 

DVB GROUP MERCHANT BANK (ASIA) LTD.

as Facility Agent and Security Trustee

 

-and-

 

DVB BANK SE

THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND

and

NATIXIS

as Swap Banks

 

 

FORBEARANCE AGREEMENT AND WAIVER

 

 

Relating to the Loan Agreement dated as of January 16, 2008,

as amended by a First Amendatory Agreement dated as of March 23, 2009,

a Second Amendatory Agreement dated as of December 31, 2009,

a Third Amendatory Agreement dated as of January 11, 2010

a Fourth Amendatory Agreement dated as of April 30, 2010,

a Fifth Amendatory Agreement dated as of January 27, 2011 and

a Sixth Amendatory Agreement dated as of April 15, 2011

 

Watson, Farley & Williams

New York

 

 

FORBEARANCE AGREEMENT AND WAIVER dated as of September 7, 2011 (this “Forbearance Agreement”)

 

AMONG

 

(1)                                  BEDFORD MARITIME CORP., BRIGHTON MARITIME CORP., HARI MARITIME CORP., PROSPECT NAVIGATION CORP., HANCOCK NAVIGATION CORP., COLUMBUS MARITIME CORP. and WHITEHALL MARINE TRANSPORT CORP., each a corporation organized and existing under the law of the Republic of The Marshall Islands, as joint and several borrowers (each, a “Borrower” and together, the “Borrowers”);

 

(2)                                  TBS INTERNATIONAL LIMITED, TBS HOLDINGS LIMITED, each a company organized and existing under the law of Bermuda, and TBS INTERNATIONAL PUBLIC LIMITED COMPANY (“TBSPLC”), a company organized and existing under the law of Ireland, as guarantors (each, a “Guarantor” and together, the “Guarantors”, and collectively with the Borrowers, the “Obligors”);

 

(3)                                  DVB GROUP MERCHANT BANK (ASIA) LTD., acting through its office at 77 Robinson Road #30-02, Singapore, as lender (in such capacity, the “Lender”);

 

(4)                                 DVB GROUP MERCHANT BANK (ASIA) LTD., acting through its office at 77 Robinson Road #30-02, Singapore, as facility agent (in such capacity, the “Facility Agent”) for the Lender and as security trustee (in such capacity, the “Security Trustee”) for the Lender and the Swap Banks; and

 

(5)                                  DVB BANK SE (as successor-in-interest to DVB Bank AG), acting through its office at Platz der Republik 6, 60325 Frankfurt/Main, Germany, THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND, acting through its office at Head Office, Building B4, Lower Baggot Street, Dublin 2, Ireland, and NATIXIS, acting through its office at BP 4 - F-75060, Paris Cedex 02, France, as swap banks (each, a “Swap Bank” and together, the “Swap Banks”).

 

WITNESSETH THAT:

 

WHEREAS, the Borrowers, the Guarantors, the Lender, the Facility Agent, the Security Trustee, the Swap Banks and others are parties to a Loan Agreement dated as of January 16, 2008, as amended by a First Amendatory Agreement dated as of March 23, 2009, a Second Amendatory Agreement dated as of December 31, 2009, a Third Amendatory Agreement dated as of January 11, 2010, a Fourth Amendatory Agreement dated as of April 30, 2010, a Fifth Amendatory Agreement dated as of January 27, 2011 and a Sixth Amendatory Agreement dated as of April 15, 2011 (the “Sixth Amendatory Agreement”) (as so amended, the “Loan Agreement”).

 

WHEREAS, the Obligors have advised the Facility Agent that the Obligors anticipate one or more of the following Events of Default occurring under the Loan Agreement during the period from and after the date hereof and prior to December 15, 2011:

 

 

(i)                                 the failure to pay to the Lenders on September 30, 2011 the principal amounts due as set forth in Section 7.1 and 7.2 of the Loan Agreement, which payment failure would be an Event of Default under Section 13.1 of the Loan Agreement (the “Payment Event of Default”);

 

(ii)                              the potential failure to deliver cash flow forecasts that evidence and/or project the required minimum Qualified Cash as set forth in Section 10.1(h)(ii) of the Loan Agreement, which failure (should it occur) would be an Event of Default under Section 13.1(b) of the Loan Agreement (the “Cash Flow Forecasts Event of Default”), provided that the Borrowers shall continue to be required to deliver cash flow forecasts as required in Section 10.1(h)(ii) of the Loan Agreement, and the failure to deliver such reports shall not be a Specified Default;

 

(iii)                           the potential failure to maintain the required minimum Qualified Cash as set forth in Section 7.13(b) of the Bank of America Credit Facility Agreement, which failure (should it occur) would be an Event of Default under Section 13.1(q) of the Loan Agreement (the “Minimum Qualified Cash Event of Default”), provided that the Borrowers shall continue to be required to maintain with Bank of America, N.A. a minimum average balance of no less than the lesser of (x) 33.8% of Qualified Cash at any time and (y) $3,382,500 (the “Minimum Balance”), and the failure to maintain such Minimum Balance shall not be deemed to be a Specified Default, and nothing in this Agreement shall waive the requirement to maintain the Minimum Balance;

 

(iv)                          the potential failure to be in compliance with the Minimum Interest Coverage Ratio and the Maximum Leverage Ratio as of the end of the fiscal quarter ending September 30, 2011 under Section 3.2 and Section 3.3, respectively, of the Sixth Amendatory Agreement, which failures (should they occur) would each be an Event of Default under Section 13.1(b) of the Loan Agreement (collectively, the “Financial Covenant Compliance Events of Default”);

 

(v)                             the potential failure to maintain a Collateral Maintenance Ratio as required by Section 10.3(a) of the Loan Agreement and to make prepayments to cure any such Event of Default set forth in Section 13.1(b) of the Loan Agreement (the “Collateral Maintenance Event of Default”); and

 

(vi)                          one or more cross-defaults arising as a result of the occurrence of certain defaults and events of default comparable to the Payment Event of Default or the Events of Defaults listed in paragraphs (ii) through (v) above under one or more of the Other TBS Credit Facilities set forth in Schedule 1 hereto, , which such defaults and events of default (should such occur) would be an Event of Default under Section 13.1(c) of the Loan Agreement (the “Cross-Defaults”) (the Cash Flow Forecasts Event of Default, the Minimum Qualified Cash Event of Default, the Financial Covenant Compliance Events of Default, the Collateral Maintenance Event of Default and the Cross-Defaults, in each case to the extent occurring prior to the Forbearance Termination Date (as defined below), are herein referred to collectively as the “Specified Defaults”); and

 

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WHEREAS, the Borrowers have requested that the Lenders, the Swap Banks, the Security Trustee and the Facility Agent (the “Consenting Credit Parties”), and Consenting Credit Parties are willing to: (i) forbear, as herein provided, from exercising their rights and remedies under the Loan Agreement, the Master Agreements, the other Finance Documents and applicable law as a result of the Payment Event of Default and (ii) waive, as herein provided, the Specified Defaults to the extent such Specified Defaults occur.

 

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

 

1                                         DEFINITIONS

 

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

 

(a)                                  in this Forbearance Agreement, the terms defined in the recitals to this Forbearance Agreement have the meanings assigned to such terms therein; and

 

(b)                                 unless the contrary intention appears, “Forbearance Termination Date” means the earliest to occur of:

 

(i)                                     December 15, 2011;

 

(ii)                                  the failure after the date hereof of any of the Obligors to comply with any of the terms or undertakings of this Forbearance Agreement, including without limitation the covenants set forth in Clause 3 hereof;

 

(iii)                               the failure after the date hereof of any of the Obligors to comply with any of the terms or undertakings of any amendment, waiver, forbearance or similar agreement with the lenders and other financial institutions under any of the Other TBS Credit Facilities set forth in Schedule 1 hereto or the expiration, for any reason, of any deferral, forbearance or similar period referred to therein;

 

(iv)                              the occurrence after the date hereof of any Event of Default (other than the Payment Event of Default and the Specified Defaults); and

 

(v)                                 the date that any of the Obligors or any Affiliate thereof or any Person or entity claiming by or through any of the Obligors joins in, assists, cooperates or participates as an adverse party or adverse witness in any suit or other proceeding against any of the Consenting Credit Parties or any of their respective Affiliates relating to the Loan, the Loan Agreement, the Finance Documents, this Forbearance Agreement or any documents, agreements or instruments executed in connection with any of the foregoing.

 

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2                                         FORBEARANCE AND WAIVER

 

2.1                               Forbearance of Payment Default.  Subject to all of the other terms and conditions set forth herein, and solely with respect to the Payment Event of Default, the Consenting Credit Parties agree to forbear from exercising their rights and remedies under the Loan Agreement, the Master Agreements, the other Finance Documents and applicable law arising as a result of the Payment Event of Default until the Forbearance Termination Date, it being understood and agreed that nothing herein shall constitute a waiver of any Payment Event of Default.

 

2.2                               Waiver of Specified Defaults.  Subject to all of the other terms and conditions set forth herein, and solely with respect to the Specified Defaults, the Consenting Credit Parties agree to waive the Specified Defaults and all rights and remedies under the Loan Agreement, the Master Agreements, the other Finance Documents and applicable law arising as a result of the Specified Defaults until the Forbearance Termination Date.

 

2.3                               Forbearance Termination Date.  Upon the occurrence of the Forbearance Termination Date, the agreements of the Consenting Credit Parties to forbear from exercising their rights and remedies in respect of the Payment Event of Default and to waive the Specified Defaults, each as set forth herein, shall automatically, without the requirement of any notice to any Obligor, terminate (and the Specified Defaults shall automatically be reinstated for all purposes under the Loan and the Finance Documents for all periods) and the Consenting Credit Parties shall be free in their sole and absolute discretion to proceed to enforce any or all of their rights and remedies set forth in this Forbearance Agreement, the Loan Agreement, the Master Agreements, the other Finance Documents and applicable law, including, without limitation, the right to demand the immediate repayment of the Outstanding Indebtedness in full.

 

3                                         COVENANTS

 

3.1                               Default Interest.  Commencing on September 30, 2011, the Borrowers shall accrue interest on the principal amount of the Outstanding Indebtedness at the Default Rate as set forth in Section 6.2 of the Loan Agreement, provided, that the 2.0% per annum portion of the interest rate that is above the rate otherwise applicable shall be payable on the first Repayment Date occurring immediately following the Forbearance Termination Date.  Except as set forth above, interest on the Loan shall continue to be due and payable in arrears on each Repayment Date and at such other times as specified in the Loan Agreement, and the Borrowers agree to pay all interest then due and payable on each such Repayment Date and as otherwise provided in the Loan Agreement.

 

3.2                               BOA Restructuring Advisor.  At the Obligors’ expense, Bingham McCutchen LLP, counsel to Bank of America, N.A., as Administrative Agent under the Bank of America Credit Facility Agreement (in such capacity, the “BOA Agent”), shall engage a financial advisor (the “BOA  Restructuring Advisor”) to, among other things, make visits to, and discuss financial and operational matters with, the Guarantors upon reasonable advance notice and at reasonable times during normal business hours and to advise the BOA Agent as to the business, operations, financial condition and restructuring alternatives of the Guarantors.  The Guarantors and the Borrowers covenant and agree that (i) such Restructuring Advisor shall not be limited in the frequency of visits to the facilities of the Borrowers and the Guarantors, and (ii) the Borrowers and the Guarantors shall cooperate with the BOA Restructuring

 

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Advisor and provide the BOA Restructuring Advisor with all information reasonably requested by the BOA Restructuring Advisor in connection with its engagement within a reasonable period of time after request.

 

3.3                               Fees and expenses of BOA Restructuring Advisor.  All reasonable fees and expenses of the BOA Restructuring Advisor shall be for the account of the Borrowers.

 

3.4                               Failure to cooperate with BOA Restructuring Advisor.  The failure of the Borrowers and the Guarantors to cooperate with the BOA Restructuring Advisor and to provide any information reasonably requested by the BOA Restructuring Advisor as provided in Section 3.2 of this Forbearance Agreement shall constitute a breach of this Forbearance Agreement and the Loan Agreement and be an immediate Event of Default under the Loan Agreement pursuant to Section 13.1(b) of the Loan Agreement, without regard to any cure period provided in Section 13.1(b) of the Loan Agreement.

 

3.5                               Obligors’ Restructuring Advisor.  The Obligors shall continue to engage AlixPartners, LLP as the restructuring advisor to the Obligors, with a scope of services reasonably acceptable to the Facility Agent, until otherwise agreed in writing by the Facility Agent.  In the event that AlixPartners, LLP terminates their existing engagement by the Obligors, the Borrowers shall appoint a restructuring advisor satisfactory to the Facility Agent with a scope of services reasonably acceptable to the Facility Agent within 5 Business Days (or such longer period of time as agreed to in writing by the Facility Agent) of AlixPartners, LLP providing the Borrowers written notice of termination of their contract with the Borrowers.  The Borrowers shall cause the newly appointed restructuring advisor to continue to serve as a restructuring advisor to the Obligors until otherwise agreed in writing by the Facility Agent.

 

3.6                               Reports of Obligors’ Restructuring Advisor.  The Obligors agree that any final written report of AlixPartners, LLP, or any other restructuring advisor engaged by the Obligors, will also be provided to the Consenting Credit Parties within a reasonable period of time following any Obligor’s receipt of such final written reports, provided that any such written reports the disclosure of which would forfeit an attorney-client, accountant-client or other available privilege shall be excluded from the foregoing delivery requirement.

 

4                                         EFFECTIVENESS OF FORBEARANCE AGREEMENT

 

4.1                               Conditions precedent.  The provisions of this Forbearance Agreement shall become effective upon the satisfaction of each of the following conditions (such date, the “Forbearance Agreement Effective Date”), in each case in a manner and in form and substance satisfactory to the Facility Agent (unless otherwise agreed to in writing by the Facility Agent):

 

(a)                                  The Facility Agent shall have received a copy (with an original to follow) of this Forbearance Agreement, duly executed by the parties hereto;

 

(b)                                The Facility Agent shall have received evidence, reasonably satisfactory to the Facility Agent, that each of the Other TBS Credit Facilities set forth in Schedule 1 hereto shall have become subject to forbearance arrangements or, as applicable, an amendment, waiver or other modification reasonably satisfactory to the lenders of each of the Other TBS Credit Facilities set forth in Schedule 1 hereto, in each case to the extent required by such Other

 

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TBS Credit Facilities set forth in Schedule 1 hereto to maintain compliance therewith (or, in the case of failure to make payments thereunder, forbear from pursuing any remedies in respect of such default), and the Facility Agent shall have received an Officer’s Certificate signed by a duly authorized officer of TBSPLC and attaching and certifying to be true, correct and complete, a fully executed copy of each such forbearance arrangement or, as applicable, amendment, waiver or other modification;

 

(c)                                  The Facility Agent shall have received payment for the fees, and expenses including, without limitation, fees and expenses incurred by their counsel (Watson, Farley & Williams (New York) LLP) and other consultants, for which invoices or estimates therefor have been provided to the Obligors on or prior to the Forbearance Agreement Effective Date;

 

(d)                                 The representations and warranties of each of the Obligors in the Loan Agreement and the other Finance Documents shall be true and correct in all material respects as of the Forbearance Agreement Effective Date, except with respect to the occurrence of the Payment Event of Default and the Specified Defaults referred to herein and to the extent that any of such representations and warranties relate by their terms to a prior date they shall be true and correct in all material respects as of such prior date;

 

(e)                                  There shall have occurred no Event of Default or Potential Event of Default other than the Payment Event of Default and the Specified Defaults; and

 

(f)                                    The Facility Agent shall have received a copy (with the original to follow) of any power of attorney under which this Forbearance Agreement and any other document to be executed pursuant to this Forbearance Agreement was or is to be executed on behalf of an Obligor.

 

4.2                               Waiver of conditions precedent.  The Facility Agent, with the consent of the Lenders and the Swap Banks, may waive one or more of the conditions referred to in Clause 4.1; provided that the Obligors deliver to the Facility Agent a written undertaking to satisfy such conditions within ten (10) Business Days after the Facility Agent grants such waiver (or such longer period as the Facility Agent may specify).

 

4.3                               Failure to complete conditions precedent.  If the Obligors fail to complete all or any of the conditions precedent required by Clause 4.1 by the Conditions Precedent Deadline, and the Facility Agent has not granted a waiver pursuant to Clause 4.2 hereof, the Obligors acknowledge and agree that such failure shall be deemed an Event of Default under the Loan Agreement and that the Credit Parties shall be entitled to all rights and to exercise all remedies afforded to them under the terms of the Loan Agreement and the other Finance Documents (all of which are expressly reserved).

 

5                                         EFFECT OF FORBEARANCE AGREEMENT

 

5.1                               References.  Each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and each reference to the “Loan Agreement” in any of the other Finance Documents, shall mean and refer to the Loan Agreement as amended, modified or waived hereby.

 

5.2                               Effect of agreement.  Subject to the terms of this Forbearance Agreement, with effect on and from the date hereof (subject to fulfillment or waiver of the conditions precedent stated in

 

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Clause 4 above) the Loan Agreement shall be, and shall be deemed by this Forbearance Agreement to have been, amended or supplemented upon the terms and conditions stated herein and, as so amended or supplemented, the Loan Agreement shall continue to be binding on each of the parties to it in accordance with its terms as so amended or supplemented.  In addition, each of the Finance Documents shall be, and shall be deemed by this Forbearance Agreement to have been, amended as follows:

 

(a)                                  the definition of, and references throughout each of such Finance Documents to, the “Loan Agreement” and any of the other Finance Documents shall be construed as if the same referred to the Loan Agreement and those Finance Documents as amended or supplemented by this Forbearance Agreement; and

 

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

 

5.3                               No other amendments; ratification.

 

(a)                                  Except as amended hereby, all other terms and conditions of the Loan Agreement and the other Finance Documents remain unchanged and in full force and effect and are hereby ratified and confirmed in all respects.

 

(b)                                 Without limiting the foregoing, each of the Guarantors acknowledges and agrees that the Guaranty remains in full force and effect.

 

(c)                                  The Obligors acknowledge and agree that the Loan Agreement shall, together with this Forbearance Agreement, be read and construed as a single agreement.

 

6                                         RELEASE

 

6.1                               Release.

 

(a)                                In consideration of the Lender, the Facility Agent, the Security Trustee and the Swap Banks entering into this Forbearance Agreement, each of the Obligors acknowledges and agrees that, as of the date hereof:

 

(i)                                     such Obligor does not have any claim or cause of action against any Credit Party (or any of such Credit Party’s respective directors, officers, employees or agents);

 

(ii)                                  such Obligor does not have any offset right, counterclaim or defense of any kind against any of its respective Secured Liabilities to any Credit Party; and

 

(iii)                               each of the Credit Parties has heretofore properly performed and satisfied in a timely manner all of their respective obligations to the Obligors.

 

(b)                              To eliminate any possibility that any past conditions, acts, omissions, events, circumstances or matters would impair or otherwise adversely affect any Credit Party’s rights, interests, contracts, collateral security or remedies, each Obligor unconditionally releases, waives and forever discharges:

 

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(i)                                     any and all liabilities, obligations, duties, promises or indebtedness of any kind of any Credit Party to such Obligor, except the obligations to be performed by any Credit Party on or after the date hereof as expressly stated in this Forbearance Agreement, the Loan Agreement and the other Finance Documents; and

 

(ii)                                  all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which such Obligor might otherwise have against any Credit Party or any of its directors, officers, employees or agents,

 

in either case (i) or (ii), on account of any past or presently existing condition, act, omission, event, contract, liability, obligation, indebtedness, claim, cause of action, defense, circumstance or matter of any kind.

 

7                                         REPRESENTATIONS AND WARRANTIES

 

7.1                               Authority.  The execution and delivery by each of the Obligors of this Forbearance Agreement and the performance by each Obligor of all of its agreements and obligations under the Loan Agreement, as amended hereby, are within such Obligor’s corporate authority and have been duly authorized by all necessary corporate action on the part of such Obligor, and no consent of any third party is required in connection with the transactions contemplated by this Forbearance Agreement.

 

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

 

7.3                               Certifications.  Each Obligor certifies that:

 

(a)                                  there is no proceeding for the dissolution or liquidation of such party;

 

(b)                                 the representations and warranties contained in the Loan Agreement, as amended hereby, are true and correct as though made on and as of the date hereof, except for (A) representations or warranties which expressly relate to an earlier date in which case such representations and warranties shall be true and correct, in all material respects, as of such earlier date or (B) representations or warranties which are no longer true as a result of a transaction expressly permitted by the Loan Agreement;

 

(c)                                 there is no material misstatement of fact in any information provided by any of the Obligors to the Facility Agent or the Lender or the Swap Banks since January 27, 2011, and such information did not omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

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(d)                                 there is no event occurring and continuing, or resulting from this Forbearance Agreement, that constitutes a Potential Event of Default or an Event of Default, other than the Payment Default or the Specified Defaults; and

 

(e)                                  there have been no amendments to the constitutional documents of any Obligor since January 27, 2011.

 

8                                         MISCELLANEOUS

 

8.1                               Governing law.  THIS FORBEARANCE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW (OTHER THAN THE NEW YORK GENERAL OBLIGATIONS LAW §5-1401).

 

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

 

8.3                               Severability.  Any provision of this Forbearance 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.

 

8.4                               Payment of expenses.  The Obligors 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 Forbearance 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.

 

8.5                               Headings and captions.  The headings captions in this Forbearance Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

 

[EXECUTION PAGES FOLLOW]

 

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

 

	
BEDFORD MARITIME CORP., as Borrower
    	
 
    	
DVB   GROUP MERCHANT BANK (ASIA) LTD., as Lender
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
By:
    	
/s/   Illegible
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
Name:
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
BRIGHTON MARITIME CORP., as Borrower
    	
 
    	
DVB   GROUP MERCHANT BANK (ASIA) LTD., as Facility Agent and Security Trustee
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
By:
    	
/s/   Illegible
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
Name:
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
HARI MARITIME CORP., as Borrower
    	
 
    	
THE   GOVERNOR AND COMPANY OF THE BANK OF IRELAND, as Swap Bank
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
 
    	
 
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
By:
    	
/s/   Joseph Whelan
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
Name:
    	
Joseph   Whelan
    
	
 
    	
 
    	
 
    	
Title:
    	
Deputy   Manager
    
	
PROSPECT NAVIGATION CORP., as Borrower
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   John Bates
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
Name:
    	
John   Bates
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
Title:
    	
Deputy   Manager
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
HANCOCK NAVIGATION CORP., as Borrower
    	
 
    	
NATIXIS,   as Swap Bank
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
By:
    	
/s/   Illegible
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
Name:
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
COLUMBUS MARITIME CORP., as Borrower
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
 
    	
 
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
 
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
 
    	
 
    

 

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WHITEHALL MARINE TRANSPORT CORP., as Borrower
    	
 
    	
DVB   BANK SE, as Swap Bank
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
By:
    	
/s/   Kevin Bourque
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
Name:
    	
Kevin   Bourque
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TBS INTERNATIONAL LIMITED, as Guarantor
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Boris Siegers
    
	
 
    	
 
    	
 
    	
Name:
    	
Boris   Siegers
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
Title:
    	
Senior   Vice President
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
 
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TBS HOLDINGS LIMITED, as Guarantor
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
 
    	
 
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
 
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TBS   INTERNATIONAL PUBLIC LIMITED COMPANY, as Guarantor
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Tulio R. Prieto
    	
 
    	
 
    	
 
    
	
Name:
    	
Tulio   R. Prieto
    	
 
    	
 
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    	
 
    	
 
    

 

*

 

11

 

SCHEDULE 1 TO FORBEARANCE AGREEMENT

 

EXISTING FINANCING AGREEMENTS

 

1.                                     Amended and Restated Loan Agreement dated May 6, 2010 between Argyle Maritime Corp., Caton Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime Corp., McHenry Maritime Corp., and Sunswyck Maritime Corp., as Borrowers, and The Royal Bank of Scotland plc, as Lender (as amended prior to the date hereof).

 

2.                                     Second Amended and Restated Credit Agreement dated as of January 27, 2011 among (i) Albemarle Maritime Corp., Arden Maritime Corp., Avon Maritime Corp., Birnam Maritime Corp., Bristol Maritime Corp., Chester Shipping Corp., Cumberland Navigation Corp., Darby Navigation Corp., Dover Maritime Corp., Elrod Shipping Corp., Exeter Shipping Corp., Frankfort Maritime Corp., Glenwood Maritime Corp., Hansen Shipping Corp., Hartley Navigation Corp., Henley Maritime Corp., Hudson Maritime Corp., Jessup Maritime Corp., Montrose Maritime Corp., Oldcastle Shipping Corp., Quentin Navigation Corp., Rector Shipping Corp., Remsen Navigation Corp., Sheffield Maritime Corp., Sherman Maritime Corp., Sterling Shipping Corp., Stratford Shipping Corp., Vedado Maritime Corp., Vernon Maritime Corp. and Windsor Maritime Corp., as borrowers, a corporation formed under the laws of Ireland, (ii) TBS International Plc, (iii) TBS International Limited, (iv) TBS Shipping Services Inc., (v) the lenders party thereto and (vi) Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (as amended prior to the date hereof), and the Master Agreement in connection therewith (as amended prior to the date hereof)

 

3.                                     Loan Agreement dated December 7, 2007, between Claremont Shipping Corp. and Yorkshire Shipping Corp., as Borrower, and Credit Suisse as Lender (as amended prior to the date hereof).

 

4.                                     Loan Agreement dated February 29, 2008, between Amoros Maritime Corp., Lancaster Maritime Corp., and Chatham Maritime Corp., as Borrower, and AIG Commercial Equipment Finance, Inc., as Lender (as amended prior to the date hereof).

 

5.                                     Loan Agreement dated June 19, 2008, between Grainger Maritime Corp., as Borrower, and Joh Berenberg, Gossler & Co. KG as Lender (as amended prior to the date hereof).

 

12Exhibit 10.4

 

FORBEARANCE AGREEMENT AND WAIVER

 

THIS FORBEARANCE AGREEMENT  AND WAIVER (this “Forbearance Agreement”) dated as of September 7, 2011 is by and among Amoros Maritime Corp., Lancaster Maritime Corp. and Chatham Maritime Corp., each a Marshall Islands corporation having a mailing address of P.O. Box HM 2522, Hamilton HMGX, Bermuda and a registered address of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the “Borrowers”; each, a “Borrower”), TBS International Limited, a Bermuda corporation whose tax domicile is in Ireland (“TBSIL Guarantor”), Sherwood Shipping Corp. (“Sherwood”), TBS Holdings Limited, a Bermuda company (“Bermuda Holdco”), TBS International public limited company, an Irish public limited company (“Parent Guarantor”) and AIG Commercial Equipment Finance, Inc., a Delaware corporation (together with its successors and assigns, “Lender”). Unless specifically defined in this Forbearance Agreement, capitalized terms not used in this herein shall have the meanings assigned in the Loan Agreement, as amended by the Loan Agreement Amendments (defined below).

 

WHEREAS, Borrowers, TBSIL Guarantor and Lender are parties to that certain Loan Agreement dated February 29, 2008, as amended by (i) that certain First Amendment to Loan Agreement dated as of March 27, 2009; (ii) that certain Second Amendment to Loan Agreement dated as of December 30, 2009, (iii) that certain Third Amendment to Loan Agreement dated as of April 22, 2010, (iv) that certain Fourth Amendment to Loan Agreement dated as of January 27, 2011, that certain Fifth Amendment and Waiver to Loan Agreement dated as of March 11, 2011 and that certain Sixth Amendment to Loan Agreement dated as of April 15, 2011 (collectively the “Loan Agreement Amendments”; the Loan Agreement together with the Loan Agreement Amendments shall be referred to herein collectively as the “Loan Agreement;”

 

WHEREAS, the Borrowers have advised Lender that the Borrowers anticipate the following Event of Default under the Loan Agreement from and after the date hereof and prior to December 15, 2011:  (i) failure to pay to the Lender on October 1, 2011, the principal amounts due under the Loan Agreement as set forth in Section 2.03 of the Loan Agreement (as later amended by the Fourth Amendment to the Loan Agreement), which payment failure would be an Event of Default under Section 7.01(a) of the Loan Agreement (the “Payment Event of Default”),

 

WHEREAS, the Borrowers have advised Lender that the Borrowers anticipate one or more of the following Events of Default under the Loan Agreement from and after the date hereon and prior to December 15, 2011: (i) the potential failure to deliver a thirteen week forecast projection that Holding’s Qualified Cash will exceed the minimum amount under Section 6.10 (b) of the Loan Agreement in each case for any weekly or four week reporting period occurring prior to December 15, 2011 which failure should such occur would be an Event of Default under Section 7.01(b) of the Loan Agreement (the “Cash Flow Forecasts Event of Default”), provided, that the Borrowers shall continue to be required to deliver Cash Flow Forecasts as required in Section 6.10(b) of the Loan Agreement, and the failure to deliver such reports shall not be a Specified Default; (ii) the potential failure to satisfy the Minimum

 

 

Consolidated Interest Charges Coverage Ratio of Section 6.10 (e) (the “Interest Charges Ratio Default”) and/or the Maximum Consolidated Leverage Ratio of Section 6.10 (c) (the “Leverage Ratio Default”), and/or the minimum liquidity requirements of Section 6.10 (b),  in each case, with respect to four fiscal quarter period ending as of September 30, 2011, which failures should such occur would each be an Event of Default under Section 7.01(b) of the Loan Agreement (collectively, the “Financial Covenant Compliance Events of Default”), and (iii) one or more cross-defaults arising as a result of the occurrence of certain defaults and events of default under other financing agreements including that certain Second Amended and Restated Credit Agreement dated as of January 27, 2011 by and among one or more of the Loan Parties, each lender party thereto and Bank of America, N.A. as Administrative Agent, which such defaults and events of default should such occur would be an Event of Default under Section 7.01 of the Loan Agreement (the “Cross-Defaults”; the Cross Defaults and the Financial Covenant Compliance Events of Default together, the “Specified Defaults”),

 

WHEREAS, the Borrowers have requested that the Lender and the Lender is willing to (i) forbear, as herein provided, from exercising their rights and remedies under the Loan Agreement and applicable laws as a result of the Payment Event of Default and (ii) waive, as herein provided, the Specified Defaults to the extent such Specified Defaults occur.

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt of which is hereby acknowledged, Borrowers and Lender hereby agree as follows:

 

1.                                         Forbearance Arrangements.  Subject to all of the other terms and conditions set forth herein, and (a) solely with respect to the Payment Event of Default, the Lender agrees to forbear from exercising its rights and remedies under the Loan Agreement and applicable laws (arising as a result of the Payment Event of Default (it being understood that nothing herein shall constitute a waiver of any Payment Event of Default) and (b) solely with respect to the Specified Defaults, the Lender agrees to waive the Specified Defaults, in each case, solely during the period from the date hereof until the Forbearance Termination Date.  The foregoing waiver shall apply only to each Specified Default, and not to any other Event of Default, whether now existing or hereafter arising, and Lender reserves all of its rights and remedies with respect to any other Default, whether now existing or hereafter arising.

 

2.                                       Forbearance Period.  For purposes hereof, the “Forbearance Termination Date” is the earliest to occur of (i) December 15, 2011, (ii) the failure after the date hereof of any of the Borrowers to comply with any of the terms or undertakings of this Forbearance Agreement, including, without limitation, the covenants set forth in Section 3 hereof, (iii) the failure after the date hereof of any of the Borrowers to comply with any of the terms or undertakings of any amendment, waiver, forbearance or similar agreement with its other lenders or the expiration, for any reason, of any deferral, forbearance or similar period granted by any such other lender, and (iv) the occurrence after the date hereof of any Default or Event of Default (other than the Payment Event of Default and the Specified Defaults).  Upon the Forbearance Termination Date, the agreement of the Lender to forbear from exercising its rights and remedies in respect of the Payment Event of Default and to waive the Finance Covenant Compliance Events of Default, each as set forth herein, shall automatically, without the requirement of any notice to any 

 

2

 

Borrower, terminate (and the Specified Defaults shall automatically be reinstated, without the requirement of any notice to any Borrower or otherwise, for all purposes und the Loan Documents for all periods, including periods after the Forbearance Termination Date)  and the Lender shall be free in its sole and absolute discretion to proceed to enforce any or all of their rights and remedies set forth in this Forbearance Agreement, the Loan Agreement and applicable law, including, without limitation, the right to demand the immediate repayment of the Loan and the right to immediate repayment and satisfaction of all other Obligations under the Loan Agreement in full.

 

3.                                       Default Interest.  Commencing on September 30, 2011, the Borrowers shall accrue interest on the principal amount of all outstanding Obligations at 2.0% per annum above the interest rate otherwise applicable, provided, that the 2.0% per annum portion of the interest rate that is above the rate otherwise applicable shall be payable on first day of the fiscal quarter (January 1, 2012) immediately following the Forbearance Termination Date.  Except as set forth above, interest on each Loan shall continue to be due and payable in arrears on the first day of each fiscal quarter and at such other times as specified in the Loan Agreement and Note(s) and the Borrowers agree to pay all interest then due and payable on each such payment due date and as otherwise provided in the Loan Agreement.

 

4.               Affirmation and Acknowledgment of the Loan Parties.

 

(a)                                  Ratification of Obligations and Security.  Each Loan Party hereby ratifies and confirms all of its Obligations to the Lender under the Loan Agreement.  Each Borrower hereby confirms that the Obligations are secured pursuant to all instruments and documents executed and delivered by the Borrowers and as security for the Obligations.

 

(b)                                 Compliance with Loan Documents.  Each Loan Party will, and will cause each of its Subsidiaries to, comply and continue to comply with all of the terms, covenants and provisions contained in the Loan Documents to which each is a party and any other instruments evidencing or creating any of the Obligations.  Without limiting the foregoing, the Borrowers and the other Loan Parties acknowledge and agree that, notwithstanding the forbearance and waiver arrangements set forth in Section 1 hereof, the Borrowers and the other Loan Parties shall continue to be obligated to deliver all financial statements, certificates, notices, valuations and other information required under the terms of the Loan Documents as set forth in the applicable Loan Document and any failure to deliver such financial statements, certificates, notices, valuations and other information as therein provided shall be an Event of Default under the Loan Agreement as provided therein.

 

(c)                                        Further Assurances.  Each Loan Party will, and will cause its Subsidiaries to, at any time or from time to time execute and deliver such further instruments, each in form and substance satisfactory to the Lender, and take such further action as the Lender may reasonably request, in each case further to effect the purposes of this Forbearance Agreement, the Loan Documents and all documents, agreements and instruments executed in connection therewith.

 

3

 

5.                                       Release.  In order to induce the Lender to enter into this Forbearance Agreement, each Loan Party acknowledges and agrees that, as of the date hereof: (a) such Loan Party does not have any claim or cause of action against the Lender (or any of its respective directors, officers, employees or agents); (b) such Loan Party does not have any offset right, counterclaim or defense of any kind against any of its respective obligations, indebtedness or liabilities to the Lender; and (c) the Lender has heretofore properly performed and satisfied in a timely manner all of its obligations to the Loan Parties.  Each Loan Party unconditionally releases, waives and forever discharges (i) any and all liabilities, obligations, duties, promises or indebtedness of any kind of the Lender to such Loan Party, except the obligations to be performed by the Lender on or after the date hereof as expressly stated in this Forbearance Agreement, the Loan Agreement and the other Loan Documents, and (ii) all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which such Loan Party might otherwise have against the Lender or any of its directors, officers, employees or agents, in either case (i) or (ii), on account of any past or presently existing condition, act, omission, event, contract, liability, obligation, indebtedness, claim, cause of action, defense, circumstance or matter of any kind.

 

5.                                       Representations and Warranties.  Each Loan Party hereby represents and warrants to the Lender as follows:

 

(a)                                  Representations and Warranties in the Loan Agreement.  The representations and warranties of Loan Parties contained in the Loan Agreement were true and correct in all material respects as of the date when made and continue to be true and correct in all material respects on the Forbearance Agreement Effective Date (as defined below) except for (a) representations or warranties which expressly relate to an earlier date in which case such representations and warranties shall be true and correct, in all material respects, as of such earlier date, (b) representations or warranties which are no longer true as a result of a transaction expressly permitted by the Loan Agreement or (c) representations or warranties which are no longer true as a result of the Payment Event of Default and the Specified Defaults.

 

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

 

(c)                                  Authority, Etc.  The execution and delivery by each of Loan Parties of this Forbearance Agreement and the performance by each of the Loan Parties of all of its agreements and obligations under the Loan Agreement, as modified hereby, are within each such Loan Party’s corporate authority and have been duly authorized by all necessary corporate action on the part of each such Loan Party.

 

(d)                                 Enforceability.  This Forbearance Agreement and the Loan Agreement, as modified hereby, constitute the legal, valid and binding obligations of each Loan Party and are enforceable against each Loan Party in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or 

 

4

 

affecting generally the enforcement of, creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding may be brought.

 

6.                                       Effectiveness of Forbearance Agreement.  The provisions of this Forbearance Agreement shall become effective upon the satisfaction of each of the following conditions (such date, the “Forbearance Agreement Effective Date”), in each case in a manner and in form and substance satisfactory to the Lender (unless otherwise agreed to in writing by the Lender):

 

(a)                                  This Forbearance Agreement shall have been duly executed and delivered by each of the Loan Parties and the Lender and shall be in full force and effect;

 

(b)                                 Lender’s receipt of evidence that the lenders under the BofA Credit Agreement and all other related loan documents have entered into similar waivers of the financial covenants under each such agreement and forbearance of their rights to exercise remedies to collect payment due under such agreements, substantially consistent with the provisions of this Agreement.

 

(c)                                  The representations and warranties of each of the Loan Parties in the Loan Documents and other Loan Documents shall be true and correct in all material respects as of the Forbearance Agreement Effective Date, except with respect to the occurrence of the Payment Event of Default and the Specified Defaults referred to herein and to the extent that any of such representations and warranties relate by their terms to a prior date they shall be true and correct in all material respects as of such prior date.

 

(d)                                 There shall have occurred no Default or Event of Default other than the Payment Event of Default and the Specified Defaults.

 

7.                                       No Other Amendments.  This Forbearance Agreement shall constitute one of the Loan Documents referred to in the Loan Agreement and any failure by any Loan Party to comply with the terms contained herein shall constitute an immediate Event of Default.  Except as expressly provided in this Forbearance Agreement, all of the terms and conditions of the Loan Agreement and other Loan Documents remain in full force and effect.

 

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

 

9.                                       Expenses.  Borrowers agree to reimburse Lender for all reasonable costs incurred by Lender in connection with this Agreement and the transactions contemplated hereby, including without limitation, the reasonable and documented costs of Lender’s counsel.  Nothing herein shall be deemed to waive or limit Borrowers’ obligation to reimburse and indemnify Lender as provided in Section 8.05 of the Loan Agreement.

 

5

 

10.                                 THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT AND ANY OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH SHALL UNLESS OTHERWISE PROVIDED THEREIN IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

 

11.                                 THE LOAN PARTIES AND LENDER IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

[Signature Page Follows]

 

6

 

 

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

 

	
BORROWERS:
    	
 
    
	
 
    	
 
    
	
AMOROS MARITIME CORP.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Tulio R. Prieto
    	
 
    
	
By:
    	
Tulio   R. Prieto
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    
	
 
    	
 
    	
 
    
	
LANCASTER MARITIME CORP.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Tulio R. Prieto
    	
 
    
	
By:
    	
Tulio   R. Prieto
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    
	
 
    	
 
    	
 
    
	
CHATHAM MARITIME CORP.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Tulio R. Prieto
    	
 
    
	
By:
    	
Tulio   R. Prieto
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    
	
 
    	
 
    	
 
    
	
GUARANTORS:
    	
 
    
	
 
    	
 
    
	
TBSIL GUARANTOR:
    	
 
    
	
TBS INTERNATIONAL LIMITED
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Tulio R. Prieto
    	
 
    
	
By:
    	
Tulio   R. Prieto
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    

 

[SIGNATURES CONTINUED ON NEXT PAGE]

 

7

 

	
BERMUDA HOLDCO:
    	
 
    
	
TBS HOLDINGS LIMITED, a Bermuda   company
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Tulio R. Prieto
    	
 
    
	
By:
    	
Tulio   R. Prieto
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    
	
 
    	
 
    	
 
    
	
SHERWOOD:
    	
 
    
	
SHERWOOD SHIPPING CORP.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Tulio R. Prieto
    	
 
    
	
By:
    	
Tulio   R. Prieto
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PARENT GUARANTOR:
    	
 
    
	
PRESENT WHEN THE COMMON SEAL OF
    	
 
    
	
TBS INTERNATIONAL PUBLIC   LIMITED COMPANY,
    	
 
    
	
an Irish public limited   company, was affixed hereto
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Tulio R. Prieto
    	
 
    
	
By:
    	
Tulio   R. Prieto
    	
 
    
	
Title:
    	
Attorney   in Fact
    	
 
    

 

[SIGNATURES CONTINUED ON NEXT PAGE]

 

8

 

	
LENDER:
    	
 
    
	
AIG COMMERCIAL EQUIPMENT   FINANCE, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Joe Gensor
    	
 
    
	
By:
    	
Joe   Gensor
    	
 
    
	
Title:
    	
Vice   President
    	
 
    

 

9

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