Document:

ex_10-14.htm

    TBS
INTERNATIONAL PLC & SUBSIDIARIES                EXHIBIT
10.14

     

     

    

      Date
 7 January 2010

      

      

      

      

      

      

      TSB
INTERNATIONAL PUBLIC LIMITED COMPANY

      as
Guarantor

      

      

      - and
-

      

      

      THE
ROYAL BANK OF SCOTLAND plc

      as
Issuer

      

      

      

      

      

      ________________________________________________

      

      GUARANTEE

      ________________________________________________

      

      

      relating
to a Guarantee Facility Agreement

      dated 29
March 2007 as amended from time to time

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDEX

      

       

      

      
        	
                Clause

              	 
      	
                Page

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                
1

              	
                
INTERPRETATION

              	
                
1

              
	
                
2

              	
                
GUARANTEE

              	
                
1

              
	
                
3

              	
                
LIABILITY AS PRINCIPAL AND INDEPENDENT
      DEBTOR

              	
                
2

              
	
                
4

              	
                
EXPENSES

              	
                
2

              
	
                
5

              	
                
ADJUSTMENT OF
    TRANSACTIONS

              	
                
2

              
	
                
6

              	
                
PAYMENTS

              	
                
3

              
	
                
7

              	
                
INTEREST

              	
                
3

              
	
                
8

              	
                
SUBORDINATION

              	
                
3

              
	
                
9

              	
                
ENFORCEMENT

              	
                
4

              
	
                
10

              	
                
REPRESENTATIONS AND
      WARRANTIES

              	
                
4

              
	
                
11

              	
                
UNDERTAKINGS

              	
                
5

              
	
                
12

              	
                
JUDGMENTS AND CURRENCY
      INDEMNITY

              	
                
7

              
	
                
13

              	
                
SET-OFF

              	
                
7

              
	
                
14

              	
                
SUPPLEMENTAL

              	
                
7

              
	
                
15

              	
                
ASSIGNMENT

              	
                
8

              
	
                
16

              	
                
NOTICES

              	
                
8

              
	
                
17

              	
                
INVALIDITY OF GUARANTEE FACILITY
      AGREEMENT

              	
                
9

              
	
                
18

              	
                
GOVERNING LAW AND
      JURISDICTION

              	
                
9

              
	 
      	
                
execution page

              	
                
11

              

      

    

     

    
      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      THIS GUARANTEE is made
on 7 January 2010

      

      BETWEEN

      

      
        	
                (1)  

              	
                TBS INTERNATIONAL PUBLIC
      LIMITED COMPANY, a company incorporated in Ireland with
      registration number 476578 whose registered office is at Arthur Cox
      Building, Earlsfort Centre, Earlsfort Terrace, Dublin 2, Ireland (the
      “Guarantor”);
      and

              

      

       

      
        	
                (2)  

              	
                THE ROYAL BANK OF SCOTLAND
      plc, a company incorporated in Scotland, acting through its office
      at Shipping Business Centre, 5-10 Great Tower Street, London EC3P 3HX (the
      “Issuer”, which
      expression includes its successors and
assigns).

              

      

       

      BACKGROUND

      

      
        	
                (A)  

              	
                By
      a guarantee facility agreement dated 29 March 2007 as amended by a
      supplemental agreement dated 27 March 2009 and as further amended by a
      side letter dated 31 December 2009 and made between (i) Argyle Maritime
      Corp., Caton Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime
      Corp., McHenry Maritime Corp. and Sunswyck Maritime Corp. as joint and
      several Obligors and (ii) the Issuer it was agreed that the Issuer would
      make available to the Obligors a guarantee facility of up to
      US$84,000,000.

              

      

       

      
        	
                (B)  

              	
                By
      a supplemental agreement dated 7 January 2010 made between the
      same parties to the Guarantee Facility Agreement and the Corporate
      Guarantor, the Guarantee Facility Agreement was further amended (the
      “Supplemental
      Agreement”).

              

      

       

      
        	
                (C)  

              	
                The
      execution and delivery to the Issuer of this Guarantee is one of the
      conditions precedent to the continuing availability of the guarantee
      facility under the said Guarantee Facility
  Agreement.

              

      

       

      IT IS AGREED as
follows:

      

      
        	
                1  

              	
                INTERPRETATION

              

      

       

      
        	
                1.1  

              	
                Defined
      expressions.  Words and expressions defined in the
      Guarantee Facility Agreement shall have the same meanings when used in
      this Guarantee unless the context otherwise
  requires.

              

      

       

      
        	
                1.2  

              	
                Construction of certain
      terms.  In this
Guarantee:

              

      

       

      “bankruptcy” includes a
liquidation, receivership or administration and any form of suspension of
payments, arrangement with creditors or reorganisation under any corporate or
insolvency law of any country;

      

      “Guarantee Facility Agreement”
means the guarantee facility agreement referred to in Recital (A) as amended by
the Supplemental Agreement and includes any existing or future amendments or
supplements, whether made with the Guarantor's consent or
otherwise.

      

      
        	
                1.3  

              	
                Application of construction and
      interpretation provisions of Guarantee Facility Agreement. Clause
      1.2 and 1.5 of the Guarantee Facility Agreement apply, with any necessary
      modifications, to this Guarantee.

              

      

       

      
        	
                2  

              	
                GUARANTEE

              

      

       

      
        	
                2.1  

              	
                Guarantee and
      indemnity.  The Guarantor unconditionally and
      irrevocably:

              

      

       

      
        	
                (a)  

              	
                guarantees
      the due payment of all amounts payable by the Obligors under or in
      connection with the Guarantee Facility Agreement and every other Finance
      Document;

              

      

       

      
        	
                (b)  

              	
                undertakes
      to pay to the Issuer, on the Issuer's demand, any such amount which is not
      paid by the Obligors when due and payable;
and

              

      

       

      
        	
                (c)  

              	
                fully
      indemnifies the Issuer on its demand in respect of all claims, expenses,
      liabilities and losses which are made or brought against or incurred by
      the Issuer as a result of or in connection with any obligation or
      liability guaranteed by the Guarantor being or becoming unenforceable,
      invalid, void or illegal; and the amount recoverable under this indemnity
      shall be equal to the amount which the Issuer would otherwise have been
      entitled to recover.

              

      

       

      
        	
                2.2  

              	
                No limit on number of
      demands.  The Issuer may serve more than one demand under
      Clause 2.1.

              

      

       

      
        	
                3  

              	
                LIABILITY
      AS PRINCIPAL AND INDEPENDENT DEBTOR

              

      

       

      
        	
                3.1  

              	
                Principal and independent
      debtor.  The Guarantor shall be liable under this
      Guarantee as a principal and independent debtor and accordingly it shall
      not have, as regards this Guarantee, any of the rights or defences of a
      surety.

              

      

       

      
        	
                3.2  

              	
                Waiver of rights and
      defences.  Without limiting the generality of Clause 3.1,
      the Guarantor shall neither be discharged by, nor have any claim against
      the Issuer in respect of:

              

      

       

      
        	
                (a)  

              	
                any
      amendment or supplement being made to the Finance
    Documents;

              

      

       

      
        	
                (b)  

              	
                any
      arrangement or concession (including a rescheduling or acceptance of
      partial payments) relating to, or affecting, the Finance
      Documents;

              

      

       

      
        	
                (c)  

              	
                any
      release or loss (even though negligent) of any right or Security Interest
      created by the Finance Documents;

              

      

       

      
        	
                (d)  

              	
                any
      failure (even though negligent) promptly or properly to exercise or
      enforce any such right or Security Interest, including a failure to
      realise for its full market value an asset covered by such a Security
      Interest; or

              

      

       

      
        	
                (e)  

              	
                any
      other Finance Document or any Security Interest now being or later
      becoming void, unenforceable, illegal or invalid or otherwise defective
      for any reason, including a neglect to register
  it.

              

      

       

      
        	
                4  

              	
                EXPENSES

              

      

       

      
        	
                4.1  

              	
                Costs of preservation of
      rights, enforcement etc.  The Guarantor shall pay to the
      Issuer on its demand the amount of all expenses incurred by the Issuer in
      connection with any matter arising out of this Guarantee, including any
      advice, claim or proceedings relating to this
  Guarantee.

              

      

       

      
        	
                4.2  

              	
                Fees and expenses payable under
      Guarantee Facility Agreement.  Clause 4.1 is without
      prejudice to the Guarantor's liabilities in respect of the Obligors’
      obligations under clause 14 of the Guarantee Facility Agreement (fees and
      expenses) and under similar provisions of other Finance
      Documents.

              

      

       

      
        	
                5  

              	
                ADJUSTMENT
      OF TRANSACTIONS

              

      

       

      
        	
                5.1  

              	
                Reinstatement of obligation to
      pay.  The Guarantor shall pay to the Issuer on its demand
      any amount which the Issuer is required, or agrees, to pay pursuant to any
      claim by, or settlement with, a trustee in bankruptcy of an Obligor or of
      another Security Party (or similar person) on the ground that the
      Guarantee Facility Agreement, or a payment by an Obligor or of another
      Security Party, was invalid or on any similar
  ground.

              

      

       

      
        	
                6  

              	
                PAYMENTS

              

      

       

      
        	
                6.1  

              	
                Method of
      payments.  Any amount due under this Guarantee shall be
      paid:

              

      

       

      
        	
                (a)  

              	
                in
      immediately available funds;

              

      

       

      
        	
                (b)  

              	
                to
      such account as the Issuer may from time to time notify to the
      Guarantor;

              

      

       

      
        	
                (c)  

              	
                without
      any form of set-off, cross-claim or condition;
  and

              

      

       

      
        	
                (d)  

              	
                free
      and clear of any tax deduction except a tax deduction which the Guarantor
      is required by law to make.

              

      

       

      
        	
                6.2  

              	
                Grossing-up for
      taxes.  If the Guarantor is required by law to make a tax
      deduction, the amount due to the Issuer shall be increased by the amount
      necessary to ensure that the Issuer receives and retains a net amount
      which, after the tax deduction, is equal to the full amount that it would
      otherwise have received.

              

      

       

      
        	
                6.3  

              	
                Tax
      Credits.  The provisions of Clause 16.4 of the Guarantee
      Facility Agreement shall apply to this Guarantee and in relation to any
      increased payments made by the Guarantor under Clause 6.2 as if the same
      were set out in full herein with the necessary
  changes.

              

      

       

      
        	
                7  

              	
                INTEREST

              

      

       

      
        	
                7.1  

              	
                Accrual of
      interest.  Any amount due under this Guarantee shall
      carry interest after the second Business Day following the date on which
      the Issuer demands payment of it until it is actually paid, unless
      interest on that same amount also accrues under the Guarantee Facility
      Agreement.

              

      

       

      
        	
                7.2  

              	
                Calculation of
      interest.  Interest under this Guarantee shall be
      calculated and accrue in the same way as interest under clause 6 of the
      Guarantee Facility Agreement.

              

      

       

      
        	
                7.3  

              	
                Guarantee extends to interest
      payable under Guarantee Facility Agreement.  For the
      avoidance of doubt, it is confirmed that this Guarantee covers all
      interest payable under the Guarantee Facility Agreement, including that
      payable under clause 6 of the Guarantee Facility
  Agreement.

              

      

       

      
        	
                8  

              	
                SUBORDINATION

              

      

       

      
        	
                8.1  

              	
                Subordination of rights of
      Guarantor.  All rights which the Guarantor at any time
      has (whether in respect of this Guarantee or any other transaction)
      against an Obligor, any other Security Party or their respective assets
      shall be fully subordinated to the rights of the Issuer under the Finance
      Documents;  and in particular, the Guarantor shall
      not:

              

      

       

      
        	
                (a)  

              	
                claim,
      or in a bankruptcy of any Obligor or any other Security Party prove for,
      any amount payable to the Guarantor by an Obligor or any other Security
      Party, whether in respect of this Guarantee or any other
      transaction;

              

      

       

      
        	
                (b)  

              	
                take
      or enforce any Security Interest for any such
  amount;

              

      

       

      
        	
                (c)  

              	
                claim
      to set-off any such amount against any amount payable by the Guarantor to
      an Obligor or any other Security Party;
or

              

      

       

      
        	
                (d)  

              	
                claim
      any subrogation or other right in respect of any Finance Document or any
      sum received or recovered by the Issuer under a Finance
      Document.

              

      

       

      
        	
                9  

              	
                ENFORCEMENT

              

      

       

      
        	
                9.1  

              	
                No requirement to commence
      proceedings against Obligors.  The Issuer will not need
      to commence any proceedings under, or enforce any Security Interest
      created by, the Guarantee Facility Agreement or any other Finance Document
      before claiming or commencing proceedings under this
      Guarantee.

              

      

       

      
        	
                9.2  

              	
                Conclusive evidence of certain
      matters.  However, as against the
    Guarantor:

              

      

       

      
        	
                (a)  

              	
                any
      judgment or order of a court in England or the Marshall Islands in
      connection with the Guarantee Facility Agreement;
  and

              

      

       

      
        	
                (b)  

              	
                any
      statement or admission of an Obligor in connection with the Guarantee
      Facility Agreement,

              

      

       

      shall be
binding and conclusive as to all matters of fact and law to which it
relates.

      

      
        	
                9.3  

              	
                Suspense
      account.  The Issuer may, for the purpose of claiming or
      proving in a bankruptcy of an Obligor or any other Security Party, place
      any sum received or recovered under or by virtue of this Guarantee on a
      separate suspense or other interest bearing nominal account without
      applying it in satisfaction of the Obligors’ obligations under the
      Guarantee Facility Agreement.

              

      

       

      
        	
                10  

              	
                REPRESENTATIONS
      AND WARRANTIES

              

      

       

      
        	
                10.1  

              	
                General.  The
      Guarantor represents and warrants to the Issuer as
  follows.

              

      

       

      
        	
                10.2  

              	
                Status.  The
      Guarantor is duly incorporated and validly existing under the laws of
      Ireland.

              

      

       

      
        	
                10.3  

              	
                Corporate
      power.  The Guarantor has the corporate capacity, and has
      taken all corporate action and obtained all consents necessary for
      it:

              

      

       

      
        	
                (a)  

              	
                to
      execute this Guarantee; and

              

      

       

      
        	
                (b)  

              	
                to
      make all the payments contemplated by, and to comply with this
      Guarantee.

              

      

       

      
        	
                10.4  

              	
                Consents in
      force.  All the consents referred to in Clause 10.3
      remain in force and nothing to the best of the Guarantor's knowledge and
      belief has occurred which makes any of them liable to
      revocation.

              

      

       

      
        	
                10.5  

              	
                Legal
      validity.  This Guarantee constitutes the Guarantor's
      legal, valid and binding obligations enforceable against the Guarantor in
      accordance with its terms subject to any relevant insolvency laws
      affecting creditors' rights generally and subject to any qualifications as
      to matters of law which are specifically referred to in any legal opinion
      delivered to the Agent pursuant to the Supplemental
    Agreement.

              

      

       

      
        	
                10.6  

              	
                No
      conflicts.  The execution by the Guarantor of this
      Guarantee and its compliance with this Guarantee to which it is a party
      will not involve or lead to a contravention
of:

              

      

       

      
        	
                (a)  

              	
                any
      law or regulation in force at the date of this Guarantee;
    or

              

      

       

      
        	
                (b)  

              	
                the
      constitutional documents of the Guarantor;
or

              

      

       

      
        	
                (c)  

              	
                any
      contractual or other obligation or restriction which is binding on the
      Guarantor or any of its assets.

              

      

       

      
        	
                10.7  

              	
                No withholding
      taxes.  No tax is imposed in any jurisdiction in which
      the Guarantor is ordinarily resident for tax by way of withholding or
      deduction on any payment to be made under this
  Guarantee.

              

      

       

      
        	
                10.8  

              	
                No
      default.  To the knowledge of the Guarantor, no Event of
      Default or Potential Event of Default has occurred and is
      continuing.

              

      

       

      
        	
                10.9  

              	
                Information.  All
      information which has been provided in writing by or on behalf of the
      Guarantor to the Issuer in connection with any Finance Document was to the
      best of the Guarantor's knowledge and belief true and not misleading as at
      the time it was given; all audited and unaudited accounts which have been
      so provided satisfied the requirements of Clause 11.4; and there has been
      no material adverse change in the financial position or state of affairs
      of the Guarantor from that disclosed in the latest of those
      accounts.

              

      

       

      
        	
                10.10  

              	
                No
      litigation.  No legal or administrative action involving
      the Guarantor has been commenced or taken or, to the Guarantor's
      knowledge, is likely to be commenced or taken which, in either case, would
      be likely to have a material adverse effect on the Guarantor's financial
      position or profitability.

              

      

       

      
        	
                11  

              	
                UNDERTAKINGS

              

      

       

      
        	
                11.1  

              	
                General.  The
      Guarantor undertakes with the Issuer to comply with the following
      provisions of this Clause 11 at all times during the Security Period,
      except as the Issuer may otherwise
permit.

              

      

       

      
        	
                11.2  

              	
                Information provided to be
      accurate.  All financial and other information which is
      provided in writing by or on behalf of the Guarantor under or in
      connection with this Guarantee will, to the best of the Guarantor's
      knowledge and belief, be true and not misleading and will not omit any
      material fact or consideration which, if disclosed, would reasonably be
      expected to adversely affect the decision of a person considering whether
      to enter into the Supplemental
Agreement.

              

      

       

      
        	
                11.3  

              	
                Provision of financial
      statements.  The Guarantor will send to the
      Issuer:

              

      

       

      
        	
                (a)  

              	
                as
      soon as possible, but in no event later than 120 days after the end of
      each financial year of the Guarantor, the annual audited accounts of the
      Guarantor and its consolidated
subsidiaries;

              

      

       

      
        	
                (b)  

              	
                as
      soon as possible, but in no event later than 30 days after the end of each
      quarter in each financial year of the Guarantor the unaudited consolidated
      accounts of the Guarantor and its consolidated subsidiaries which are
      certified as to their correctness by its chief financial officer;
      and

              

      

       

      
        	
                (c)  

              	
                together
      with the accounts specified in paragraph (b) above, a compliance
      certificate in the form set out in Schedule 4 of the Guarantee Facility
      Agreement executed by the chief financial officer of the Guarantor
      confirming the Financial Covenants set out in Schedule 3 of the Guarantee
      Facility Agreement have been complied with during each financial
      quarter.

              

      

       

      
        	
                11.4  

              	
                Form of financial
      statements.  All accounts (audited and unaudited)
      delivered under Clause 11.3 will:

              

      

       

      
        	
                (a)  

              	
                be
      prepared in accordance with all applicable laws and generally accepted
      accounting principles of the U.S.A. consistently
  applied;

              

      

       

      
        	
                (b)  

              	
                give
      a true and fair view of the financial condition of the Guarantor and its
      subsidiaries at the date of those accounts and of their profit for the
      period to which those accounts relate;
and

              

      

       

      
        	
                (c)  

              	
                fully
      disclose or provide for all significant liabilities of the Guarantor and
      its subsidiaries.

              

      

       

      
        	
                11.5  

              	
                Shareholder and creditor
      notices.  The Guarantor will send the Issuer, at the same
      time as they are despatched, copies of all communications which are
      despatched to the Guarantor's shareholders or creditors or any class of
      them.

              

      

       

      
        	
                11.6  

              	
                Consents.  The
      Guarantor will maintain in force and promptly obtain or renew, and will
      promptly send certified copies to the Issuer of, all consents
      required:

              

      

       

      
        	
                (a)  

              	
                for
      the Guarantor to perform its obligations under this
    Guarantee;

              

      

       

      
        	
                (b)  

              	
                for
      the validity or enforceability of this
  Guarantee;

              

      

       

      and the
Guarantor will comply with the terms of all such consents.

      

      
        	
                11.7  

              	
                Further
      assurance.  The Guarantor
will:

              

      

       

      
        	
                (a)  

              	
                at
      its own cost, do all that it reasonably can to ensure that this Guarantee
      validly creates the obligations which it purports to create;
      and

              

      

       

      
        	
                (b)  

              	
                without
      limiting the generality of paragraph (a) above, at its own cost, promptly
      register, file, record or enrol this Guarantee with any applicable court
      or authority, pay any applicable stamp, registration or similar tax in
      respect of this Guarantee, give any notice or take any other step which
      may be or become necessary or desirable for this Guarantee to be valid,
      enforceable or admissible in
evidence.

              

      

       

      
        	
                11.8  

              	
                Notification of
      litigation.  The Guarantor will provide the Issuer with
      details of any legal or administrative action involving the Guarantor
      promptly upon becoming aware of the same where such legal or
      administrative action might, if adversely determined, have a material
      adverse effect on the ability of the Guarantor to perform its obligations
      under this Guarantee.

              

      

       

      
        	
                11.9  

              	
                Notification of
      default.  The Guarantor will notify the Issuer as soon as
      the Guarantor becomes aware of:

              

      

       

      
        	
                (a)  

              	
                the
      occurrence of an Event of Default or a Potential Event of Default;
      or

              

      

       

      
        	
                (b)  

              	
                any
      matter which indicates that an Event of Default or a Potential Event of
      Default may have occurred and is
continuing;

              

      

       

      and will
thereafter keep the Issuer fully up-to-date with all developments.

      

      
        	
                11.10  

              	
                Maintenance of
      status.  The Guarantor will maintain its separate
      corporate existence under the laws of
Ireland.

              

      

       

      
        	
                11.11  

              	
                No disposal of assets, change
      of business.  The Guarantor will
  not:

              

      

       

      
        	
                (a)  

              	
                transfer,
      lease or otherwise dispose of all or a substantial part of its assets,
      whether by one transaction or a number of transactions, whether related or
      not except in the usual course of its trading operations;
    or

              

      

       

      
        	
                (b)  

              	
                make
      any substantial change to the nature of its business from that existing at
      the date of this Guarantee.

              

      

       

      
        	
                11.12  

              	
                No merger
      etc.  The Guarantor shall not, and shall procure that
      none of its subsidiaries will, enter into any form of merger,
      sub-division, amalgamation or other
  reorganisation.

              

      

       

      
        	
                11.13  

              	
                Chief Executive
      Office.  The Guarantor will maintain is chief executive
      office, and keep its corporate documents and records, at Arthur Cox
      Building, Earlsfort Centre, Earlsfort Terrace, Dublin 2,
      Ireland.

              

      

       

      
        	
                12  

              	
                JUDGMENTS
      AND CURRENCY INDEMNITY

              

      

       

      
        	
                12.1  

              	
                Judgments relating to Guarantee
      Facility Agreement.  This Guarantee shall cover any
      amount payable by the Obligors under or in connection with any judgment
      relating to the Guarantee Facility
Agreement.

              

      

       

      
        	
                12.2  

              	
                Currency
      indemnity.  In addition, clause 15.4 (currency indemnity)
      of the Guarantee Facility Agreement shall apply, with any necessary
      adaptations, in relation to this
Guarantee.

              

      

       

      
        	
                13  

              	
                SET-OFF

              

      

       

      
        	
                13.1  

              	
                Application of credit
      balances.  The Issuer may without prior notice following
      the occurrence of an Event of Default which is
  continuing:

              

      

       

      
        	
                (a)  

              	
                apply
      any balance (whether or not then due) which at any time stands to the
      credit of any account in the name of the Guarantor at any office in any
      country of the Issuer in or towards satisfaction of any sum then due from
      the Guarantor to the Issuer under this Guarantee;
  and

              

      

       

      
        	
                (b)  

              	
                for
      that purpose:

              

      

       

      
        	
                (i)  

              	
                break,
      or alter the maturity of, all or any part of a deposit of the
      Guarantor;

              

      

       

      
        	
                (ii)  

              	
                convert
      or translate all or any part of a deposit or other credit balance into
      Dollars;

              

      

       

      
        	
                (iii)  

              	
                enter
      into any other transaction or make any entry with regard to the credit
      balance which the Issuer considers
appropriate.

              

      

       

      
        	
                13.2  

              	
                Existing rights
      unaffected.  The Issuer shall not be obliged to exercise
      any of its rights under Clause 13.1; and those rights shall be without
      prejudice and in addition to any right of set-off, combination of
      accounts, charge, lien or other right or remedy to which the Issuer is
      entitled (whether under the general law or any
  document).

              

      

       

      
        	
                14  

              	
                SUPPLEMENTAL

              

      

       

      
        	
                14.1  

              	
                Continuing
      guarantee.  This Guarantee shall remain in force as a
      continuing security at all times during the Security
    Period.

              

      

       

      
        	
                14.2  

              	
                Rights cumulative,
      non-exclusive.  The Issuer's rights under and in
      connection with this Guarantee are cumulative, may be exercised as often
      as appears expedient and shall not be taken to exclude or limit any right
      or remedy conferred by law.

              

      

       

      
        	
                14.3  

              	
                No impairment of rights under
      Guarantee.  If the Issuer omits to exercise, delays in
      exercising or invalidly exercises any of its rights under this Guarantee,
      that shall not impair that or any other right of the Issuer under this
      Guarantee.

              

      

       

      
        	
                14.4  

              	
                Severability of
      provisions.  If any provision of this Guarantee is or
      subsequently becomes void, illegal, unenforceable or otherwise invalid,
      that shall not affect the validity, legality or enforceability of its
      other provisions.

              

      

       

      
        	
                14.5  

              	
                Guarantee not affected by other
      security.  This Guarantee shall not impair, nor be
      impaired by, any other guarantee, any Security Interest or any right of
      set-off or netting or to combine accounts which the Issuer may now or
      later hold in connection with the Guarantee Facility
      Agreement.

              

      

       

      
        	
                14.6  

              	
                Guarantor bound by Guarantee
      Facility Agreement.  The Guarantor agrees with the Issuer
      to be bound by all provisions of the Guarantee Facility Agreement which
      are applicable to the Security Parties in the same way as if those
      provisions had been set out (with any necessary modifications) in this
      Guarantee.

              

      

       

      
        	
                14.7  

              	
                Applicability of provisions of
      Guarantee to other rights.  Clauses 3 and 17 shall also
      apply to any right of set-off or netting or to combine accounts which the
      Guarantor creates by an agreement entered into at the time of this
      Guarantee or at any later time (notwithstanding that the agreement does
      not include provisions similar to Clauses 3 and 17), being an agreement
      referring to this Guarantee.

              

      

       

      
        	
                14.8  

              	
                Third party
      rights.  A person who is not a party to this Guarantee
      has no right under the Contracts (Rights of Third Parties) Act 1999 to
      enforce or to enjoy the benefit of any term of this
    Guarantee.

              

      

       

      
        	
                15  

              	
                ASSIGNMENT

              

      

       

      
        	
                15.1  

              	
                Assignment by
      Issuer.  The Issuer may assign its rights under and in
      connection with this Guarantee to the same extent as it may assign its
      rights under the Guarantee Facility
Agreement.

              

      

       

      
        	
                16  

              	
                NOTICES

              

      

       

      
        	
                16.1  

              	
                Notices to
      Guarantor.  Any notice or demand to the Guarantor under
      or in connection with this Guarantee shall be given by letter or fax
      at:

              

      

       

      Arthur
Cox Building

      Earlsfort
Centre

      Earlsfort
Terrace

      Dublin 2,
Ireland

      

      
        	
                 
      

              	
                Fax
      No:  + 353 1 618 0618

              

      

      

      with a copy to:

      

      c/o TBS Shipping Services
Inc.

      612 E. Grassy Sprain Road

      Yonkers, NY 10710

      USA

      

      Fax No: + 1 914 961 5121

      

      or to
such other address which the Guarantor may notify to the Issuer.

      

      
        	
                16.2  

              	
                Application of certain
      provisions of Guarantee Facility Agreement.  Clauses
      22.3, 22.4 and 22.5 of the Guarantee Facility Agreement apply to any
      notice or demand under or in connection with this
    Guarantee.

              

      

       

      
        	
                16.3  

              	
                Validity of
      demands.  A demand under this Guarantee shall be valid
      notwithstanding that it is served:

              

      

       

      
        	
                (a)  

              	
                on
      the date on which the amount to which it relates is payable by the
      Obligors under the Guarantee Facility
Agreement;

              

      

       

      
        	
                (b)  

              	
                at
      the same time as the service of a notice under clause 13.2 (events of
      default) of the Guarantee Facility
Agreement;

              

      

       

      and a
demand under this Guarantee may refer to all amounts payable under or in
connection with the Guarantee Facility Agreement without specifying a particular
sum or aggregate sum.

      

      
        	
                16.4  

              	
                Notices to
      Issuer.  Any notice to the Issuer under or in connection
      with this Guarantee shall be sent to the same address and in the same
      manner as notices to the Issuer under the Guarantee Facility
      Agreement.

              

      

       

      
        	
                17  

              	
                INVALIDITY
      OF GUARANTEE FACILITY AGREEMENT

              

      

       

      
        	
                17.1  

              	
                Invalidity of Guarantee
      Facility Agreement.  In the event
  of:

              

      

       

      
        	
                (a)  

              	
                the
      Guarantee Facility Agreement now being or later becoming, with immediate
      or retrospective effect, void, illegal, unenforceable or otherwise invalid
      for any other reason whatsoever, whether of a similar kind or not;
      or

              

      

       

      
        	
                (b)  

              	
                without
      limiting the scope of paragraph (a), a bankruptcy of an Obligor, the
      introduction of any law or any other matter resulting in an Obligor being
      discharged from liability under the Guarantee Facility Agreement, or the
      Guarantee Facility Agreement ceasing to operate (for example, by interest
      ceasing to accrue);

              

      

       

      this
Guarantee shall cover any amount which would have been or become payable under
or in connection with the Guarantee Facility Agreement if the Guarantee Facility
Agreement had been and remained entirely valid, legal and enforceable, or that
Obligor had not suffered bankruptcy, or any combination of such events or
circumstances, as the case may be, and that Obligor had remained fully liable
under it for liabilities whether invalidly incurred or validly incurred but
subsequently retrospectively invalidated;  and references in this
Guarantee to amounts payable by the Obligors under or in connection with the
Guarantee Facility Agreement shall include references to any amount which would
have so been or become payable as aforesaid.

      

      
        	
                17.2  

              	
                Invalidity of Finance
      Documents.  Clause 17.1 also applies to each of the other
      Finance Documents to which the Obligor are a
  party.

              

      

       

      
        	
                18  

              	
                GOVERNING
      LAW AND JURISDICTION

              

      

       

      
        	
                18.1  

              	
                English
      law.  This Guarantee and any non-contractual obligations
      arising out of or in connection with it shall be governed by, and
      construed in accordance with, English
law.

              

      

       

      
        	
                18.2  

              	
                Exclusive English
      jurisdiction.  Subject to Clause 18.3, the courts of
      England shall have exclusive jurisdiction to settle any disputes which may
      arise out of or in connection with this
  Guarantee.

              

      

       

      
        	
                18.3  

              	
                Choice of forum for the
      exclusive benefit of the Issuer.  Clause 18.2 is for the
      exclusive benefit of the Issuer, which reserves the
  rights:

              

      

       

      
        	
                (a)  

              	
                to
      commence proceedings in relation to any matter which arises out of or in
      connection with this Guarantee in the courts of any country other than
      England and which have or claim jurisdiction to that matter;
      and

              

      

       

      
        	
                (b)  

              	
                to
      commence such proceedings in the courts of any such country or countries
      concurrently with or in addition to proceedings in England or without
      commencing proceedings in England.

              

      

       

      The
Guarantor shall not commence any proceedings in any country other than England
in relation to a matter which arises out of or in connection with this
Guarantee.

      

      
        	
                18.4  

              	
                Process
      agent.  The Guarantor irrevocably appoints Curtis Davis
      Garrard LLP at its registered office for the time being, presently at
      Waterview House, Roundwood Avenue, Stockley Park, Uxbridge UB11 1AU,
      to act as its agent to receive and accept on its behalf any process or
      other document relating to any proceedings in the English courts which are
      connected with this Guarantee.

              

      

       

      
        	
                18.5  

              	
                Issuer' rights
      unaffected.  Nothing in this Clause 18 shall exclude or
      limit any right which the Issuer may have (whether under the law of any
      country, an international convention or otherwise) with regard to the
      bringing of proceedings, the service of process, the recognition or
      enforcement of a judgment or any similar or related matter in any
      jurisdiction.

              

      

       

      
        	
                18.6  

              	
                Meaning of
      “proceedings”.  In this Clause 18, “proceedings” means
      proceedings of any kind, including an application for a provisional or
      protective measure.

              

      

       

      THIS GUARANTEE has been
executed and delivered as a deed on the date stated at the beginning of this
Guarantee.

      
        
          
             26333216
v2

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXECUTION
PAGE

       

      

      

      
        	
                GUARANTOR

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                SIGNED and DELIVERED as a DEED

              	
                )

              	 
      
	
                by:
      Christophil B. Costas

              	
                )

              	
                /s/
      Christophil B. Costas

              
	
                acting
      as lawfully appointed attorney of

              	
                )

              	 
      
	
                TBS
      INTERNATIONAL PUBLIC

              	
                )

              	 
      
	
                LIMITED
      COMPANY

              	
                )

              	 
      
	
                in
      the presence of: Lorraine Brown

              	
                )

              	
                /s/
      Lorraine Brown

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                SECURITY
      TRUSTEE

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                SIGNED by
      Graham Richard Locker

              	
                )

              	
                /s/
      Graham Richard Locker

              
	
                for
      and on behalf of

              	
                )

              	 
      
	
                THE
      ROYAL BANK OF SCOTLAND plc

              	
                )

              	 
      
	
                in
      the presence of: C.L. Patrick

              	
                )

              	
                /s/
      C L
Patrickex_10-15.htm

    TBS INTERNATIONAL PLC
& SUBSIDIARIES                EXHIBIT
10.15

     

     

    

    SUPPLEMENTAL
LETTER TO THE LOAN AGREEMENT 

    

    
      	
              To:

            	
              Claremont Shipping
      Corp., Yorkshire
      Shipping Corp.

            

    

    and TBS International
Limited

    
      	
               
      

            	
              Commerce
      Building

            

    

    
      	
               
      

            	
              One
      Chancery Lane

            

    

    
      	
               
      

            	
              Hamilton
      HM12

            

    

    
      	
               
      

            	
              Bermuda

            

    

    

    
      	
               
      

            	
              Attn:
      William J. Carr

            

    

    

    
      	
              Copy:

            	
              TBS
      Shipping Services Inc.

            

    

    
      	
               
      

            	
              612
      East Grassy Sprain Road

            

    

    
      	
               
      

            	
              Yonkers,
      NY 10710

            

    

    
      	
               
      

            	
              U.S.A.

            

    

    

    
      	
               
      

            	
              Attn:  Ferdinand
      V. Lepere

            

    

    

    22
December 2009

    

    

    Dear
Sirs

    

    Loan
Agreement dated 7 December 2007 made between (i) Claremont Shipping Corp. and
Yorkshire Shipping Corp. as joint and several Borrowers and (ii) Credit Suisse
AG as Lender and Swap Bank relating to a term loan facility of US$40,000,000 as
supplemented by an amendment letter dated 19 March 2008 and a waiver letter
dated 24 March 2009 (together the “Loan Agreement”)

    

    We refer
to the said waiver letter dated ­24 March 2009 (the “Waiver Letter”) a copy of which is
attached.

    

    We write
to confirm that the Waiver Period as defined in the Waiver Letter and the
temporary amendments to the Loan Agreement applicable during the Waiver Period
shall be extended and continue to apply until 00:00 hours on 1 April 2010 (New
York time) subject to the following:-

    

    
      	
              1.  

            	
              receipt
      by us from the Borrowers on or before 5 January 2010
  of:

            

    

    

    
      	
              a.  

            	
              US$437,000
      in prepayment of the next repayment of Advance A due on 12 March 2010;
      and

            

    

    

    
      	
              b.  

            	
              US$750,000
      in prepayment of the next repayment of Advance B due on 19 February 2010;
      and

            

    

    

    
      	
              2.  

            	
              receipt
      by us of a copy of this letter duly acknowledged by you and the Guarantor
      confirming your agreement and the Guarantor’s agreement to the terms of
      this letter.

            

    

    

    For the
avoidance of doubt, if the amounts to be prepaid pursuant to paragraph 1. above
are not received by us on or before 5 January 2010, the Waiver Period shall
automatically expire with effect from 00:01 hours on 1 January
2010.

    

    Also we
agree that during such extension of the Waiver Period, the amount of $40,000,000
referred to in the amended Minimum Cash Liquidity covenant shall be reduced to
$25,000,000.

    

    With
effect from 1 April 2010 the temporary amendments to the Loan Agreement
described in the Waiver Letter and as amended above shall cease to
apply.  For the avoidance of doubt the amendments to the Loan
Agreement set out at clauses 1,2 and 3 at the end of the Waiver Letter (which
were not described as temporary) shall remain in effect and shall be
consolidated within the next supplemental agreement that is entered into by the
parties in respect of the Loan Agreement (intended to deal with the
“re-domiciliation” of the Guarantor to Ireland).

    

    The
provisions of clause 30 (Law and Jurisdiction) of the Loan Agreement shall apply
to this Letter.  For the avoidance of doubt all terms of the Loan
Agreement and the Finance Documents shall remain in full force and effect and,
save as provided herein, unchanged.

    

    Words and
expressions defined in the Loan Agreement shall have the same meaning when used
herein except as expressly provided in this supplemental letter.

    

    Yours
faithfully

    

    

    

    /s/
R. Nenner   and /s/  Carla Storzini 

    duly
authorised for

    CREDIT
SUISSE AG

    (as
Lender and Swap Bank)

    Accepted
and agreed this 22  day of December 2009
by:

    

    

     

    
      
        	
                 /s/
      Ferdinand V. Lepere       
      

              	 
      	
                 /s/ Ferdinand V.
      Lepere  

              
	
                duly
      authorised for   

              	 
      	
                duly
      authorised for   

              
	
                Claremont
      Shipping Corp.   

              	 
      	
                Yorkshire
      Shipping Corp.

              

      

    
 

    

    We hereby
confirm and acknowledge that we have read and understood the terms and
conditions of the above letter and agree in all respects to the same and confirm
that the Corporate Guarantee to which we are a party shall remain in full force
and effect and shall continue to stand as security for the obligations of the
Borrowers under the Loan Agreement.

    

    

    

    

    /s/
Ferdinand V.
Lepere                        

    TBS
INTERNATIONAL LIMITED

    (as
Guarantor)

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