K-SEA TRANSPORTATION PARTNERS LP
EXHIBIT 10.1.2
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<TYPE>EX-10.1.2
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<DESCRIPTION>EXHIBIT 10.1.2
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;10.1.2  </B></FONT></P>

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<TD COLSPAN=3 ALIGN="CENTER" VALIGN="TOP"><BR><FONT SIZE=2><B>AMENDMENT NO. 1</B></FONT></TD>
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to</B></FONT></TD>
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PARTICIPATION AND LOAN AND SECURITY AGREEMENT</B></FONT></TD>
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among</B></FONT></TD>
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THE CIT GROUP/EQUIPMENT FINANCING,&nbsp;INC.,<BR>
for itself as Lender and as Collateral Agent for Lenders,</B></FONT></TD>
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KEYBANK N.A.,<BR>
for itself as Lender and as Administrative Agent for Lenders</B></FONT></TD>
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and</B></FONT></TD>
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K-SEA OPERATING PARTNERSHIP L.P.,<BR>
as Borrower</B></FONT></TD>
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Dated as of: January&nbsp;29, 2004<BR> </B></FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2><B>AMENDMENT NO. 1<BR>
TO<BR>
PARTICIPATION AND LOAN AND SECURITY AGREEMENT  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AMENDMENT NO. 1, dated as of January&nbsp;29, 2004 ("</FONT><FONT SIZE=2><B>Amendment No.&nbsp;1</B></FONT><FONT SIZE=2>"), to the Participation and
Loan and Security Agreement entered into as of January&nbsp;14, 2004 ("</FONT><FONT SIZE=2><B>Original Loan Agreement</B></FONT><FONT SIZE=2>"), by and among </FONT><FONT SIZE=2><B>THE CIT GROUP
EQUIPMENT FINANCING,&nbsp;INC.</B></FONT><FONT SIZE=2>, a Delaware corporation ("</FONT><FONT SIZE=2><B>CIT</B></FONT><FONT SIZE=2>"), for itself as Lender and as Collateral Agent for Lenders, </FONT> <FONT SIZE=2><B>KEYBANK N.A.</B></FONT><FONT
SIZE=2>, a national banking association ("</FONT><FONT SIZE=2><B>KeyBank</B></FONT><FONT SIZE=2>," and together with CIT, the
"</FONT><FONT SIZE=2><B>Lenders</B></FONT><FONT SIZE=2>"), for itself as Lender and as Administrative Agent for Lenders, and </FONT><FONT SIZE=2><B>K-SEA OPERATING PARTNERSHIP
L.P.</B></FONT><FONT SIZE=2>, a Delaware limited partnership ("</FONT><FONT SIZE=2><B>Borrower</B></FONT><FONT SIZE=2>"), as borrower, with its principal place of business at 3245 Richmond Terrace,
Staten Island, New York 10303-0003. In consideration of the mutual agreements contained herein, the parties hereto agree as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>RECITALS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All things have been done to make this Amendment No.&nbsp;1, when executed and delivered by the Borrower hereunder, the legal, valid and binding obligations of
the Borrower. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
capitalized terms not defined herein shall have the meanings assigned to such terms in the Original Loan Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;1.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>DEFINITIONS.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.01 of the
Original Loan Agreement is amended by adding thereto, in the appropriate alphabetical order, the following definitions: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"January&nbsp;2004
Collateral" as defined in Section&nbsp;3.04 hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"January&nbsp;2004
Loan Agreement" means that certain Loan and Security Agreement, dated as of January&nbsp;29, 2004, by and between CIT and Borrower. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"January&nbsp;2004
Vessels" means those vessels identified on Schedule&nbsp;I to the January&nbsp;2004 Loan Agreement, together with any substitute or additional vessels added
thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Loan
Agreement," "Revolving Loan Agreement" or "this Agreement" shall hereafter mean the Original Loan Agreement as amended by this Amendment No.&nbsp;1. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Loan
Documents" shall hereafter mean, collectively, the Loan Documents (as that term is described in the Original Loan Agreement) and the Amendment No.&nbsp;1 to the Mortgage dated as
of January&nbsp;29, 2004. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;2.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>SECURITY INTERESTS</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;III of the
Original Loan Agreement is hereby amended by adding the following Section&nbsp;3.04 thereto: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Section&nbsp;3.04</I></FONT><FONT SIZE=2>. </FONT><FONT SIZE=2><I>Identity of Lenders</I></FONT><FONT SIZE=2>. As of the Effective Date, CIT and KeyBank will
be the sole Lenders of the Loans. Thereafter and so long either CIT or KeyBank retains any direct or indirect legal or beneficial interest in any of the Loans, the Loans shall continue to be secured
by the January&nbsp;2004 Vessels and each of their earnings, insurances and other Proceeds thereof (collectively, "</FONT><FONT SIZE=2><B>January&nbsp;2004 Collateral</B></FONT><FONT SIZE=2>"),
but only for the benefit of and to the extent of the interest of such person retaining such interest. The benefits of this security in the January&nbsp;2004 Collateral shall be personal to each of
CIT and KeyBank and any successors by merger or reorganization, but may not be assigned by either CIT or KeyBank to any other Person. Once the direct or indirect interest of either CIT or KeyBank is
reduced to zero, it may not thereafter be revived for the benefit of such person and shall thereupon be extinguished as to such person. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;3.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>REPRESENTATIONS, WARRANTIES AND COVENANTS</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
and every representation, warranty and covenant made by Borrower in the Original Loan Agreement (including those representations, warranties and covenants set forth in Articles IV,
VI and VII thereof) shall survive and apply with equal force and effect </FONT><FONT SIZE=2><I>mutatis mutandis</I></FONT><FONT SIZE=2> to this Amendment No.&nbsp;1. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;4.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>CLOSING COSTS</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall pay to Lenders on demand all out of pocket loan costs, including, but not limited to, closing costs, attorneys' fees and expenses, recording fees and expenses, recording
taxes and record searches, incurred by Lenders in connection with the negotiation, preparation, execution and delivery of all documentation relating to the transactions contemplated hereby and
thereby. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Section&nbsp;5.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I>ORIGINAL LOAN AGREEMENT RATIFIED</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as herein specifically otherwise provided, the Original Loan Agreement is in all respects ratified and confirmed, and all the terms, provisions and conditions thereof shall be and
remain in full force and effect. This Amendment No.&nbsp;1 shall be limited solely to the matters expressly set forth herein and shall not, except to the extent expressly set forth herein,
(a)&nbsp;constitute a waiver of any term or condition of the Original Loan Agreement or of any agreements or instruments referred to therein, (b)&nbsp;change any right or rights which Lenders or
Borrower may now have or may have in the future under or in connection with the Original Loan Agreement or of any agreements or instruments referred to therein, or (c)&nbsp;modify the Original Loan
Agreement or any instruments referred to therein. </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Amendment No.&nbsp;1 to be duly executed and delivered by their proper and duly authorized officers as of the day and year first
above written. </FONT></P>

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<TD COLSPAN=3><BR><FONT SIZE=2><B>K-SEA OPERATING PARTNERSHIP L.P.<BR>
by its general partner K-Sea OLP GP, LLC</B></FONT></TD>
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&nbsp;</FONT></TD>
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By:</FONT></TD>
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/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JOHN J. NICOLA</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: John J. Nicola<BR>
Title: Chief Financial Officer</FONT></TD>
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&nbsp;</FONT></TD>
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<TD COLSPAN=3><BR><FONT SIZE=2><B>THE CIT GROUP/EQUIPMENT<BR>
FINANCING,&nbsp;INC.</B></FONT></TD>
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&nbsp;</FONT></TD>
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By:</FONT></TD>
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/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>CARL E. MYRICK</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Carl E. Myrick<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President</FONT></TD>
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&nbsp;</FONT></TD>
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<TD COLSPAN=3><BR><FONT SIZE=2><B>KEYBANK N.A.</B></FONT></TD>
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&nbsp;</FONT></TD>
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By:</FONT></TD>
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/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>STEVEN B. VITALE</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Steven B. Vitale<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President</FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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