K-SEA TRANSPORTATION PARTNERS LP
EX-10.1
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<TYPE>EX-10.1
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<DESCRIPTION>EX-10.1
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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.1</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">dated as of August 14, 2007</font></p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">by and among</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">K-SEA OPERATING PARTNERSHIP L.P.</font></b>,</p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as Borrower,</font></p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Lenders party hereto,</font></p>

<p style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LASALLE BANK NATIONAL ASSOCIATION</font></b></p>

<p style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CITIBANK, N.A.</font></b>,</p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as Co-Syndication Agents,</font></p>

<p style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CITIZENS BANK OF PENNSYLVANIA</font></b></p>

<p style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HSBC BANK USA NATIONAL ASSOCIATION</font></b>,</p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as Co-Documentation Agents,</font></p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KEYBANK NATIONAL ASSOCIATION</font></b>,</p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as Administrative Agent and
Collateral Trustee for the Lenders</font></p>



</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TABLE
OF CONTENTS</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="6%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Page</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->ARTICLE I DEFINITIONS</p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.01</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Defined Terms</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.02</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Terms Generally</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 1.03</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounting Terms; GAAP</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE II THE LOANS</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.01</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commitments</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.02</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loans</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.03</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.04</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Requests for Loans</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.05</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Funding of Loans</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.06</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Termination and Reduction of Commitments</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.07</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Repayment of Loans; Evidence of Debt</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.08</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prepayment of Loans</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.09</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fees</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.10</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Increased Costs; Illegality</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.11</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Break Funding Payments</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.12</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taxes</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.13</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payments Generally; Pro Rata Treatment; Sharing of
  Set-offs</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.14</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Letters of Credit</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">47</font></p>
  </td>
 </tr>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.15</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash Collateral Account</font></p>
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  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.16</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mitigation Obligations; Replacement of Lenders</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">52</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.17</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Increase of Commitments</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">52</font></p>
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  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE III GRANT OF SECURITY INTEREST</font></p>
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  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54</font></p>
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  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.01</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Grant of Security Interest</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.02</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Substitution of Pool Vessel</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3.03</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fair Market Value</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE IV REPRESENTATIONS AND WARRANTIES</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">56</font></p>
  </td>
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  <td width="93%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:93.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.01</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Organization</font></p>
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  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">56</font></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.02</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power and Authority</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">56</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.03</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Governmental Approvals; No Conflicts</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">57</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.04</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Financial Condition; No Material Adverse Change</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">57</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.05</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Litigation</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">57</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.06</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental Condition</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">58</font></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.07</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Compliance with Laws and Agreements</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.7%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">58</font></p>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.08</font></p>
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  <td width="72%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:72.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Investment Company Status</font></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">58</font></p>
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<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


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  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Page</font></b></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.09</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taxes</font></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">58</font></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.10</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ERISA</font></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.11</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disclosure</font></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No Other Name</font></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title</font></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">59</font></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.14</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lenders&#146; Security Interest</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">60</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.15</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Citizenship</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">60</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.16</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vessels</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">60</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.17</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Government Consents for Conduct of Business</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.18</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Federal Reserve Regulations</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.19</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Smith /Sirius Acquisition</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">61</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 4.20</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phase Two Transactions</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">62</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE V CONDITIONS</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">63</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.01</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective Date</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">63</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 5.02</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Loan and Letter of Credit</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">73</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VI AFFIRMATIVE COVENANTS</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">73</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.01</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Financial Statements and Other Information</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">74</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.02</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pool Vessel Appraisals</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">75</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.03</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fees and Expenses</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">75</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.04</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notices of Material Events</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.05</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Existence; Conduct of Business</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.06</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Insurance</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">76</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.07</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taxes; Use</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.08</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maintenance of Properties; Use and Operation of Pool
  Vessels</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">77</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.09</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Books and Records; Inspection Rights</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">78</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.10</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Use of Proceeds</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">78</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.11</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">U.S. Person</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">79</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.12</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Documentation</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">79</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.13</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further Assurances</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">79</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.14</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower&#146;s Title; Lenders&#146; Security Interest;
  Personal Property</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">80</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.15</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indemnification</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">80</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.16</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Performance of Contracts</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">80</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.17</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental Compliance</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">81</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.18</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subsidiary Guaranties</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">81</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.19</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Relating to the Vessels</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">82</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.20</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Working Capital Clean-Down</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">82</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.21</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Qualified Equity Issuance</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">82</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 6.22</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phase Two Transaction</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">82</font></p>
  </td>
 </tr>
</table>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Page</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VII NEGATIVE COVENANTS</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">83</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.01</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fixed Charge Coverage Ratio</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">83</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.02</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">First Lien Funded Debt to EBITDA Ratio</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">83</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.03</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total Funded Debt to EBITDA Ratio</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">84</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.04</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Asset Coverage Ratio</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">84</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.05</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No Liens</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">84</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.06</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No Changes in Borrower</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">85</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.07</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No Disposition of Assets</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">85</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.08</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fundamental Changes</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">86</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.09</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transactions with Affiliates</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">86</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.10</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Restrictive Agreements</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">87</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.11</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Limitations on Advances and Distributions</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">87</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.12</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Limitations on Other Indebtedness</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">87</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.13</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Limitation on Investments, Loans, Advances,
  Guarantees and Acquisitions</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">88</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.14</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Limitations on Negative Pledge</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">89</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.15</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Acquisitions</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">89</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.16</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Partnerships, Joint Ventures</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">90</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.17</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capital Expenditures</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">90</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 7.18</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prepayments of Indebtedness</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">90</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">90</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.01</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Events of Default</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">90</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.02</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Remedies</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">93</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 8.03</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lenders&#146; Cure of Third Party Agreement Default</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">94</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE IX THE AGENTS</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">94</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.01</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorization and Action</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">94</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.02</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agent&#146;s Reliance, Etc.</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">95</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.03</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KeyBank and Affiliates</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">96</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.04</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender Credit Decision</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">96</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.05</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indemnification</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">96</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.06</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Successor Administrative Agents</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">97</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.07</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Events of Default</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">98</font></p>
  </td>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.08</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Payments</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">98</font></p>
  </td>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.09</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Administrative Agent May File Proofs of Claim</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99</font></p>
  </td>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 9.10</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agents</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ARTICLE X MISCELLANEOUS</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100</font></p>
  </td>
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  <td width="94%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.01</font></p>
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  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notices</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100</font></p>
  </td>
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  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.02</font></p>
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  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Term and Termination</font></p>
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  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">101</font></p>
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  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.03</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea as Agent for Borrower</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">102</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.04</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Discharge of Borrower</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">102</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.05</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Waivers; Amendments</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">102</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.06</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Expenses; Indemnity; Damage Waiver</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">103</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.07</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Successors and Assigns</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">104</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.08</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Survival</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">106</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.09</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Counterparts; Integration; Effectiveness</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">107</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.10</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Severability</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">107</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.11</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Right of Set-off</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">107</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.12</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Governing Law; Jurisdiction; Consent to Service of
  Process</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">108</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.13</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WAIVER OF JURY TRIAL</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">108</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.14</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Headings</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">109</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.15</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Confidentiality</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">109</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.16</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest Rate Limitation</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">109</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.17</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further Assurances</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">110</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.18</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Judgment Currency</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">110</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.84%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 10.19</font></p>
  </td>
  <td width="73%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:73.2%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">USA Patriot Act Notice</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.96%;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">110</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iv</font></p>
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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><!-- SET mrlNoTableShading -->EXHIBITS</p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit A-1</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Tranche A Note</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit A-2</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Tranche B Note</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
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  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Assignment and Acceptance</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C-1</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
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  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Opinion of Thompson Coburn L.L.P.</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C-2</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Opinion of Holland &amp; Knight LLP</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C-3</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
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  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Opinion of Carlsmith Ball LLP</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C-4</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
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  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Opinion of Baker Botts LLP</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit D</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
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  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Standby Letter of Credit</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit E</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Application for Documentary Letter of Credit</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit F</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Loan Request</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit G</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Credit Request</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit H</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Subsidiary Guaranty</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit I</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Principal Terms of Bridge Loan Intercreditor
  Agreement</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULES</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="100%" colspan="3" valign="top" style="padding:0in .7pt 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 1.01A</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pool Vessels</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 1.01B</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additional Pool Vessels</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 1.01C</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phase Two Pool Vessels</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 2.01</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commitments</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 4.06</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental Compliance</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 4.14</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charters</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 5.01</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indebtedness to be Repaid</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 7.05</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Existing Liens</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 7.12</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Existing Indebtedness</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0in .7pt 0in 0in;width:14.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Schedule 7.13</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in .7pt 0in 0in;width:6.06%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in 0in;width:79.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Existing Investments</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0in 0in 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>



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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT</font></b> (this &#147;<b>Agreement</b>&#148;), dated as of August 14, 2007,
among <b>K-SEA OPERATING PARTNERSHIP</b>  <b>L.P.</b>, a Delaware limited partnership (&#147;<b>Borrower</b>&#148;), the Lenders party hereto (the &#147;<b>Lenders</b>&#148;), <b>LASALLE BANK, NATIONAL
ASSOCIATION </b>and<b> CITIBANK, N.A.</b>,
as co-syndication agents, <b>CITIZENS BANK OF
PENNSYLVANIA</b> and <b>HSBC BANK USA NATIONAL
ASSOCIATION</b>, as co-documentation agents, and <b>KEYBANK NATIONAL ASSOCIATION</b>, a national
banking association (&#147;<b>KeyBank</b>&#148;),
as administrative agent for the Lenders (in such capacity, the &#147;<b>Administrative Agent</b>&#148;), and as collateral
trustee for Lenders (in such capacity, the &#147;<b>Collateral
Trustee</b>&#148;).</p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">RECITALS</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>,
Borrower, the Lenders and the Administrative Agent are parties to a Loan and
Security Agreement dated as of March 24, 2005 (as heretofore amended,
supplemented or otherwise modified, the &#147;<b><u style="font-weight:bold;">Original Loan Agreement</u></b>&#148;),
pursuant to which the Lenders thereunder agreed to make loans and otherwise
extend credit to or for the account of Borrower on the terms and conditions set
forth therein,</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>,
Borrower desires to amend the Original Loan Agreement in certain respects, and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>,
the Administrative Agent and the Lenders have agreed to amend and restate the
Original Loan Agreement on the terms and conditions hereinafter set forth.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Original Loan
Agreement is hereby amended and restated in its entirety as follows:</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE I</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFINITIONS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
1.01</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Defined
Terms</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As used in this
Agreement, the following terms have the meanings specified below:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Additional Pool Vessels</u></b>&#148; means<b>, </b>collectively, those vessels identified on <b>Schedule&nbsp;1.01B</b> hereto.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Adjusted LIBOR Rate</u></b>&#148; means, with
respect to any LIBOR Loan for any Interest Period, an interest rate per annum
equal to (a) LIBOR for such Interest Period multiplied by (b)&nbsp;the
Statutory Reserve Rate.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Adjustment Date</u></b>&#148; has the meaning
set forth in Section 7.02 hereof.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Administrative Agent</u></b>&#148; means KeyBank
National Association, a national banking association, in its capacity as
administrative agent for Lenders hereunder, and any Person appointed successor
administrative agent pursuant to Section 9.06.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Affiliate</u></b>&#148; means, with respect to a
specified Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control
with the Person specified, <u>provided</u>, <u>however</u>, that with respect
to Borrower and K-Sea, this term shall not be deemed to describe any Person who
is not any of Borrower, the general partner of Borrower, K-Sea or a direct or
indirect subsidiary of K-Sea.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Agent</u></b>&#148;
means Administrative Agent and/or Collateral Trustee, as the case may be.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Agreement</u></b>&#148; has the meaning set
forth in the preamble hereto.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Alternative Currency</u></b>&#148; means any
currency freely transferable into Dollars to the extent that such currency is
approved by the Administrative Agent and the L/C Issuer.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Anniversary Date</u></b>&#148; means the date
occurring one (1) year after the Effective Date and the same date in every year
thereafter.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Applicable Law</u></b>&#148; means all applicable
provisions of all (a)&nbsp;constitutions, statutes, ordinances, rules,
regulations and orders of all governmental and/or quasi-governmental bodies,
(b)&nbsp;Government Approvals, and (c)&nbsp;order, judgments and decrees of all
courts and arbitrators.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Applicable Margin</u></b>&#148; means, at all
times during the applicable periods set forth below: (a) with respect to Base
Rate Loans, the percentage set forth below under the heading &#147;<b>Base Rate Margin</b>&#148; and adjacent to such period, (b) with
respect to LIBOR Loans, the percentage set forth below under the heading &#147;<b>LIBOR Margin</b>&#148; and adjacent to such period and (c) with
respect to the Commitment Fees, the percentage set forth below under the
heading &#147;<b>Commitment Fee Margin</b>&#148; and adjacent to
such period:</font></p>

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<table border="0" cellspacing="0" cellpadding="0" bgcolor="white" style="background:white;border-collapse:collapse;">
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  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><!-- SET mrlHTMLTableCenter -->Period</p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="294" colspan="5" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:220.2pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Applicable&nbsp;Margin</font></b></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.15pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="153" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:114.55pt;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">When&nbsp;the&nbsp;Total<br>
  Funded&nbsp;Debt&nbsp;to<br>
  EBITDA&nbsp;Ratio<br>
  is&nbsp;greater&nbsp;than<br>
  or&nbsp;equal&nbsp;to</font></b></p>
  </td>
  <td width="16" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="87" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">And&nbsp;less<br>
  than</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="87" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Base&nbsp;Rate<br>
  Margin</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="87" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">LIBOR<br>
  Margin</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="87" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Commitment<br>
  Fee&nbsp;Margin</font></b></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.15pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="153" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:114.55pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.50:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.250</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.500</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.300</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="153" valign="top" style="padding:0pt .7pt 0pt 0pt;width:114.55pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.00:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.50:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.000</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.250</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.200</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="153" valign="top" style="padding:0pt .7pt 0pt 0pt;width:114.55pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.50:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.00:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.000</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.100</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.200</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="153" valign="top" style="padding:0pt .7pt 0pt 0pt;width:114.55pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.00:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.50:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.000</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.850</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.150</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="153" valign="top" style="padding:0pt .7pt 0pt 0pt;width:114.55pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.00:1.00</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.000</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.700</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
  <td width="87" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:65.4pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">0.150</font></p>
  </td>
  <td width="12" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:9.15pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Changes
in the Applicable Margin resulting from a change in the Total Funded Debt to
EBITDA Ratio shall be based upon the certificate most recently delivered under
Section&nbsp;6.01(b) and shall become effective on the first day of the month
immediately succeeding the date such certificate is required to be delivered to
the Administrative Agent pursuant to Section 6.01(b).&#160; Notwithstanding anything to the contrary in
this definition, (i) if Borrower shall fail to deliver to the Administrative
Agent such a certificate on or prior to any date required by Section 6.01(b),
the Total Funded Debt to EBITDA Ratio shall be deemed to be greater than
3.50:1.00<b>  </b>from and including such date to the
first day of the month immediately succeeding the date of delivery to the
Administrative Agent of such certificate, and (ii) on any date on which
interest on the Bridge Loan shall be determined pursuant to Section 2.02(c) of
the Bridge Loan Agreement, &#147;<b><u style="font-weight:bold;">Applicable Margin</u></b>&#148;
shall mean (A) with respect to Base Rate Loans, 0.250%, (B) with respect to
LIBOR Loans, 2.00% and (C) with respect to the Commitment Fees, 0.400%.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Applicable Percentage</u></b>&#148; means, with
respect to any Lender, the percentage of the total Commitments represented by
such Lender&#146;s Commitment.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Appraisal</u></b>&#148; means any appraisal, either
visual or desktop or both, as determined by an appraiser, of the Pool Vessels,
conducted from time to time by an Appraiser acceptable to the Administrative
Agent pursuant to the terms of this Agreement and shall also include the
appraisal of the Pool Vessels performed by the Administrative Agent prior to
the date hereof, or at the Administrative Agent&#146;s direction, by an appraiser
appointed by Administrative Agent and paid for by Borrower.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Appraiser</u></b>&#148; means any one of L&amp;R
Midland, Marcon International, Inc., Merrill Marine Services, Inc., or any
other Person agreed to by Borrower and the Administrative Agent.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Asset Coverage Ratio</u></b>&#148; means, as of
any date of determination, the ratio of the Fair Market Value of all Pool
Vessels that are part of the Collateral divided by the aggregate Revolving
Credit Exposure of all Lenders.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Asset Disposition</u></b>&#148; means the disposition
of any or all of the fixed assets of Borrower or any of its Subsidiaries
included in the Collateral whether by sale, lease, transfer or otherwise (but
excluding damage, destruction, loss or condemnation); <u>provided</u>, <u>however</u>,
prior to the occurrence of an Event of Default, the term &#147;<b><u style="font-weight:bold;">Asset
Disposition</u></b>&#148; shall not include (a) any sale, lease, transfer or
other disposition of (i) inventory in the ordinary course of business; (ii)
obsolete or worn out equipment; (iii) traded-in equipment, (iv) assets by
Borrower to a Guarantor or by a Guarantor to Borrower or another Guarantor; or
(v) transfers permitted under Section 7.07, (b) sale-leaseback transactions not
otherwise prohibited hereby and (c) charters or other employment contracts of
Pool Vessels not otherwise prohibited hereby.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Assignment and Acceptance</u></b>&#148; means an
assignment and acceptance entered into by any Lender and an assignee (with the
consent of any party whose consent is required by Section&nbsp;10.07 hereof),
and accepted by Administrative Agent, in the form of <b>Exhibit&nbsp;B</b> or any other form approved by Administrative
Agent.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Assignment of Insurances</u></b>&#148;</font>
means the first priority assignment of insurances respecting the Pool Vessels
granted by Borrower or any Subsidiary Guarantor in favor of the Collateral
Trustee, in form and substance satisfactory to Administrative Agent.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Assignments</u></b>&#148; means, collectively, the
Earnings Assignment and the Assignment of Insurances.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Availability Period</u></b>&#148; means the Tranche
A Availability Period or the Tranche B Availability Period, as the case may be.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Base Rate</u></b>&#148; means, for any day, a rate
per annum equal to the greater of (a)&nbsp;the Prime Rate, or (b)&nbsp;one-half
of one percent (0.50%) in excess of the Federal Funds Effective Rate.&#160; Any change in the Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective from
and including the effective date of such change in the Prime Rate or the
Federal Funds Effective Rate, respectively.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Base Rate Loan</u></b>&#148; means any Loan
bearing interest at the Base Rate.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Board</u></b>&#148; means the Board of Governors of
the Federal Reserve System of the United States of America.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Borrower</u></b>&#148; means K-Sea Operating
Partnership L.P., a Delaware limited partnership.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Borrower Mortgage</u></b>&#148; means the First
Preferred Fleet Mortgage, dated March 24, 2005, granted by Borrower to the
Collateral Trustee over the whole of the Borrower Pool Vessels, as heretofore
amended and supplemented and as it may be further amended, modified or
supplemented from time to time and from which Borrower Pool Vessels may be
added or released from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Borrower Pool Vessels</u></b>&#148; means those
vessels identified as owned by Borrower on <b>Schedule 1.01A</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Borrowing Base</u></b>&#148; means 80% of the Fair
Market Value of the Pool Vessels.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Bridge Loan</u></b>&#148; means the loan made to
Borrower by the lenders party to the Bridge Loan Agreement, and any extensions,
renewals or replacements of such Indebtedness that do not increase the
outstanding principal amount thereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Bridge Loan Agreement</u></b>&#148; means the
Bridge Loan Agreement dated as of the Effective Date among Borrower, the
lenders party thereto and KBCM Bridge LLC, as administrative agent, as amended,
restated, supplemented or otherwise modified from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Bridge Loan Intercreditor Agreement</u></b>&#148;
means the Intercreditor Agreement between KBCM Bridge LLC, as administrative
agent for the lenders from time to time party to the Bridge Loan Agreement and
the Administrative Agent, relating to the Permitted Bridge Loan Liens, if any,
which shall contain provisions subordinating the Permitted Bridge Loan Liens to
the Liens securing the Obligations substantially identical to those set forth
on <b>Exhibit I </b>hereto, as such</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Intercreditor
Agreement may be amended, restated, supplemented or otherwise modified from
time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Business Day</u></b>&#148; means any day that is not
a Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed; <u>provided</u> that when used
in connection with a Loan that bears interest at a rate per annum equal to the
LIBOR Rate (including any notice in respect thereof), the term &#147;<b><u style="font-weight:bold;">Business Day</u></b>&#148; shall also exclude any
day on which banks are not open for dealings in dollar deposits in the London
interbank market.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Capital Expenditures</u></b>&#148;<b>  </b></font>means any expenditure or liability
that is properly charged to a capital account or otherwise capitalized on
Borrower&#146;s consolidated balance sheet in accordance with GAAP.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Capital Lease Obligations</u></b>&#148; of any
Person means the obligations of such Person to pay rent or other amounts under
any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such
Person under GAAP, and the amount of such obligations shall be the capitalized
amount thereof determined in accordance with GAAP.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Capital Stock</u></b>&#148; </font>means, as to any Person, all shares,
interest, partnership interests, limited liability company membership
interests, participations, rights in or other equivalents (however designated)
of such Person&#146;s equity (however designated) and any rights, warrants or
options exchangeable for or convertible into such shares, interests,
participations, rights or other equity.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Cash Collateral</u></b>&#148; has the meaning
set forth in Section 2.15 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Cash Collateral Account</u></b>&#148; has the
meaning set forth in Section 2.15 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">CERCLA</u></b>&#148; means the Comprehensive
Environmental Response, Compensation and Liability Act, as amended by the
Superfund Amendments and Reauthorization Act, 42 U.S.C. Section 9601 <i>et seq</i>. and as further amended from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Change in Control</u></b>&#148; means (a)&nbsp;the
acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (within the meaning of the Securities Exchange Act of 1934
and the rules of the Securities and Exchange Commission thereunder as in effect
on the date hereof), of ownership interests representing more than 50% of the
general partnership interest in K-Sea or more than 50% of the aggregate
ordinary voting power represented by the issued and outstanding ownership
interests of Borrower or any Subsidiary Guarantor, or (b)&nbsp;for the period
of twelve (12) consecutive calendar months, a majority of the board of Borrower
or any Guarantor shall no longer be composed of individuals (i)&nbsp;who were
members of said board on the first day of such period, (ii)&nbsp;whose election
or nomination to said board was approved by individuals referred to in clause
(i) above constituting at the time of such election or nomination at least a majority
of said board, or (iii)&nbsp;whose election or nomination to said board was
approved </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">by
individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of said board.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Change in Law</u></b>&#148; means (a)&nbsp;the
adoption of any law, rule or regulation after the date of this Agreement,
(b)&nbsp;any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this
Agreement, including, without limitation, any change in any statutory,
regulatory or institutional reserve requirement, including, but not limited to,
the Statutory Reserve Rate, or (c)&nbsp;compliance by any Lender (or, for
purposes of Section&nbsp;2.10(b) hereof, by any lending office of such Lender
or by such Lender&#146;s holding company, if any) with any request, guideline or
directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Charges</u></b>&#148; has the meaning set forth in
Section 10.16 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Classification Society</u></b>&#148; means the
American Bureau of Shipping or such other classification society acceptable to
Lenders.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Code</u></b>&#148; means the Internal Revenue Code
of 1986, as amended from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Collateral</u></b>&#148; means the collateral
described in this Agreement, including, but not limited to, in Article&nbsp;III
hereof, the Assignments and the Mortgage, including, without limitation, the
Pool Vessels, and the Proceeds thereof, all insurance with respect to the Pool
Vessels, any and all charters of the Pool Vessels by Borrower or any Subsidiary
Guarantor and all Hire and other amounts payable from time to time thereunder
and the Proceeds thereof, all future charters of the Pool Vessels by Borrower
or any Subsidiary Guarantor, including all Hire payments and Proceeds of the
foregoing and all amounts payable hereunder as more specifically described
herein and in the Assignments and the Mortgage.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Collateral Trustee</u></b>&#148; means KeyBank
National Association in its capacity as collateral trustee for Lenders
hereunder, and any Person appointed as a successor collateral trustee pursuant
to Article IX.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Commitment</u></b>&#148; means, with respect to any
Lender on any date, the Tranche A Commitment, if any, and Tranche B Commitment,
if any, of such Lender on such date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Commitment Fees</u></b>&#148; has the meaning
set forth in Section 2.09(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Commitment Fee Margin</u></b>&#148; has the
meaning set forth in the definition of &#147;<b><u style="font-weight:bold;">Applicable Margin</u></b>&#148;.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Control</u></b>&#148; means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting power,
by contract or otherwise.&#160; &#147;<b><u style="font-weight:bold;">Controlling</u></b>&#148; and &#147;<b><u style="font-weight:bold;">Controlled</u></b>&#148; have meanings correlative
thereto.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Credit Party</u></b>&#148; means each of Borrower,
each Guarantor and each of their respective Subsidiaries; <u>provided</u>, <u>however</u>,
&#147;<b><u style="font-weight:bold;">Credit Party</u></b>&#148; shall exclude the
Excluded Subsidiaries.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Default</u></b>&#148; means any event or condition
which constitutes an Event of Default or which upon notice, lapse of time or
both would, unless cured or waived, become an Event of Default.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Distributions</u></b>&#148;<b>  </b></font>means, with respect to any Person
(i)&nbsp;cash distributions or any other distributions on, or in respect of,
any ownership interest or any membership or partnership interest of such
Person, and (ii)&nbsp;any and all funds, cash or other payments made in respect
of the redemption, repurchase or acquisition of such interest.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Diving</u></b>&#148; means Uaukewai Diving,
Salvage and Fishing, Inc., a Hawaii corporation and a wholly-owned Subsidiary
of Smith Maritime.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Diving Mortgage</u></b>&#148; means the
Preferred Ship Mortgage granted by Diving to the Collateral Trustee over the
whole of the Diving Pool Vessel, as the same may be amended, modified or
supplemented from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Diving Pool Vessel</u></b>&#148; means the
vessel identified as owned by Diving (before giving effect to the Phase Two
Transactions) on <b>Schedule 1.01C</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Documentary Letter of Credit</u></b>&#148; shall
have the meaning set forth in Section&nbsp;2.02(e) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Dollar Equivalent</u></b>&#148; means, at any
date of determination thereof, with respect to an amount of an Alternative
Currency, the amount of Dollars which could be purchased with such amount of
such Alternative Currency at the spot exchange rate therefor as quoted by the
Administrative Agent as of 11:00 a.m. (New York City time) on the date two Business
Days prior to the date of any determination thereof for purchase on such date
(or, in the case of any determination pursuant to Section 10.18, on the date of
determination).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Dollars</u></b>&#148; or &#147;<b><u style="font-weight:bold;">$</u></b>&#148; refers to lawful money of the United
States of America.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Earnings Assignment</u></b>&#148; means the general
assignment for security interest purposes of all charters, charter hire,
freights and earnings with respect to the Pool Vessels granted by Borrower or
any Subsidiary Guarantor in favor of the Collateral Trustee, in form and
substance satisfactory to the Administrative Agent.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">EBITDA</u></b>&#148; means, with respect to any
fiscal period of K-Sea and its consolidated Affiliates, including, without
limitation, Borrower and each Guarantor, on a consolidated basis, the sum of:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
net income (or net loss) of Borrower (determined in accordance with GAAP) for
such fiscal period, without giving effect to any extraordinary pre-tax gains or
losses; plus:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
the extent that any of the items referred to in any of clauses (i) through (iii)
below were deducted in calculating such net income:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Interest
Expense of Borrower for such fiscal period;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>federal
and state income tax expenses of Borrower for such fiscal period;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
amount of all depreciation and amortization for such fiscal period; minus</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
the extent added in calculating such net income, gains from sales, exchanges
and other dispositions of assets not in the ordinary course of business.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Effective Date</u></b>&#148; means the date on which
the conditions specified in Section&nbsp;5.01 hereof are satisfied (or waived
in accordance with Section&nbsp;10.05 hereof).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Environmental Action</u></b>&#148; means any
administrative, regulatory or judicial action, suit, demand, demand letter,
claim, notice of non-compliance or violation, notice of liability or potential
liability, investigation, proceeding, consent order or consent agreement
arising under any Environmental Law or Environmental Permit relating to
Hazardous Materials or arising from alleged injury or threat of injury to
health, safety or the environment in connection with or arising from exposure
to or the actual or potential release of Hazardous Materials, including
(a)&nbsp;by any Governmental Authority for enforcement, cleanup, removal,
response, remedial or other actions or damages, and (b)&nbsp;by any Governmental
Authority or any third party for damages, contribution, indemnification, cost
recovery, compensation or injunctive relief.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Environmental Event</u></b>&#148; means (a)&nbsp;an
environmental event that has occurred or any environmental condition that is
discovered in, on, beneath, from or involving any of the Pool Vessels
(including the presence, emission or release of Hazardous Materials or the
violation of any applicable Environmental Law) for which a remediation or
reporting could reasonably be required under applicable Environmental Law, or
(b)&nbsp;notification received by Borrower, any Guarantor or any charterer of a
Pool Vessel that such charterer, such Guarantor, Borrower, or any Pool Vessel
is the subject of an Environmental Action relating to such Pool Vessel that
could reasonably be expected to result in any ordered remediation or corrective
action or other material liability under applicable Environmental Law.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Environmental Law</u></b>&#148; means any and all
applicable international, foreign, federal, state, regional and local laws (as
well as obligations, duties and requirements relating thereto under common law)
relating to:&#160; (a)&nbsp;emissions,
discharges, spills, releases or threatened releases of pollutants,
contaminants, Hazardous Materials, materials containing Hazardous Materials, or
hazardous or toxic materials or wastes into ambient air, surface water
(including, without limitation, all inland and ocean waters), groundwater,
watercourses, publicly or privately-owned treatment works, drains, sewer
systems, wetlands, septic systems or onto land; (b)&nbsp;the use, treatment,
storage, disposal, handling, manufacturing, transportation, or shipment of
Hazardous Materials, materials containing Hazardous Materials or hazardous
and/or toxic wastes, materials, products or by-products (or of equipment or
apparatus containing Hazardous Materials); or (c)&nbsp;pollution or the
protection of human health, safety or the environment from exposure to or
injury or damage caused by Hazardous Materials.&#160;
Without limitation, &#147;<b><u style="font-weight:bold;">Environmental
Law</u></b>&#148; includes CERCLA and OPA 90 and IMO 13(g) (when and if the
latter comes into effect).</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Environmental Liability</u></b>&#148; means any
liability, contingent or otherwise (including any liability for damages, costs
of environmental remediation, fines, penalties or indemnities), of Borrower or
any Subsidiary directly or indirectly resulting from or based upon
(a)&nbsp;violation of any Environmental Law, (b)&nbsp;the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c)&nbsp;exposure to any Hazardous Materials, (d)&nbsp;the release
or threatened release of any Hazardous Materials into the environment or
(e)&nbsp;any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Environmental Permit</u></b>&#148; means any permit,
approval, identification number, license or other authorization required under
any Environmental Law.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Equity
Issuance</u></b>&#148; means the issuance of any Capital Stock by K-Sea or
the receipt of any capital contribution by Borrower.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">ERISA</u></b>&#148; means the Employee Retirement
Income Security Act of 1974, as amended from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">ERISA Affiliate</u></b>&#148; means any trade or
business (whether or not incorporated) that, together with Borrower, is treated
as a single employer under Section&nbsp;414(b) or (c) of the Code or, solely
for purposes of Section&nbsp;302 of ERISA and Section&nbsp;412 of the Code, is
treated as a single employer under Section&nbsp;414 of the Code.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">ERISA Event</u></b>&#148; means (a)&nbsp;any &#147;reportable
event&#148;, as defined in Section&nbsp;4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b)&nbsp;the existence with respect to any Plan of an
&#147;accumulated funding deficiency&#148; (as defined in Section&nbsp;412 of the Code or
Section&nbsp;302 of ERISA), whether or not waived; (c)&nbsp;the filing pursuant
to Section&nbsp;412(d) of the Code or Section&nbsp;303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d)&nbsp;the incurrence by Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e)&nbsp;the receipt by Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f)&nbsp;the incurrence
by Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or
(g)&nbsp;the receipt by Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from Borrower or any ERISA Affiliate of any
notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Event of Default</u></b>&#148; has the meaning
assigned to such term in Article&nbsp;VIII hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Event of Loss</u></b>&#148;<b>  </b>means, with respect
to any Pool Vessel, the actual or constructive loss or the disappearance of
such Pool Vessel or the loss of use thereof, due to theft, destruction, damage
beyond repair or damage from any reason whatsoever, to an extent which makes
repair uneconomical, or rendition thereof unfit for normal use, or the
condemnation, confiscation or</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">seizure
of, or requisition of title to such Pool Vessel by any Governmental Authority
or any other Person, or the requisition of use of any Pool Vessel by any
non-United States Governmental Authority, in each case whether or not acting
under color of Governmental Authority.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Excluded Subsidiaries</u></b>&#148; means,
collectively, Inversiones Kara Sea Srl., K-Sea Canada Holdings, K-Sea Canada
Corp. and Marine Logistics, Inc.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Excluded Taxes</u></b>&#148; means, with respect to
the Administrative Agent, the Collateral Trustee, any Lender or any other
recipient of any payment to be made by or on account of any obligation of
Borrower hereunder, (a)&nbsp;income or franchise taxes imposed on (or measured
by) its net income by the United States of America, or by the jurisdiction under
the laws of which such recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable lending
office is located, (b)&nbsp;any branch profits taxes imposed by the United
States of America or any similar tax imposed by any other jurisdiction in which
Administrative Agent, such Lender or such other recipient is located, and
(c)&nbsp;in the case of a Foreign Lender (other than an assignee pursuant to a
request by Borrower under Section&nbsp;2.16(b) hereof), any withholding tax
that is imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party to this Agreement or is attributable to such
Foreign Lender&#146;s failure or inability to comply with Section&nbsp;2.12(d)
hereof, except to the extent that such Foreign Lender&#146;s assignor (if any) was
entitled, at the time of assignment, to receive additional amounts from
Borrower with respect to such withholding tax pursuant to Section&nbsp;2.12(a)
hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Existing Letters of Credit</u></b>&#148; means,
collectively, (i) Irrevocable Standby Letter of Credit No. S309764 dated
November 3, 2004 issued by KeyBank in favor of New York State Department of
Taxation and Finance, as beneficiary, in the aggregate amount of $2,000 and
(ii)&nbsp;the Irrevocably Standby Letter of Credit No. S311366 dated May 15,
2006 issued by KeyBank in favor of SCV Partners, as beneficiary, in the
aggregate amount of $42,868.75.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Extraordinary Receipt</u></b>&#148; means any
cash received by or paid to or for the account of any Person consisting of
proceeds of casualty type insurance (other than proceeds of business
interruption insurance to the extent such proceeds constitute compensation for
lost earnings), and condemnation awards (and payments in lieu thereof) and
indemnity payments relating to third party claims; <u>provided</u>, <u>however</u>,
that an Extraordinary Receipt shall not include cash receipts received from
proceeds of insurance, condemnation awards (and payments in lieu thereof) or
indemnity payments to the extent that such proceeds, awards or payments (a) in
respect of loss or damage to Pool Vessels, equipment, fixed assets or real
property are applied (or in respect of which expenditures were previously
incurred) to replace or repair the Pool Vessels, equipment, fixed assets or
real property in respect of which such proceeds, awards or payments were
received in accordance with the terms of the Loan Documents, so long as such
application, or commitment to make such application, is made within twelve (12)
months after the occurrence of such damage or loss; or (b) are received by any
Person in respect of any third party claim against such Person and applied to
pay (or to reimburse such Person for its prior payment of) such claim and the
costs and expenses of such Person with respect thereto.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Facility</u></b>&#148; means, individually, the
Tranche A Facility or the Tranche B Facility, as the case may be, and
collectively, the Tranche A Facility and the Tranche B Facility.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Fair Market Value</u></b>&#148; means, with
respect to any Pool Vessel, the fair market value of such Pool Vessel as reasonably
determined by the Administrative Agent or by independent appraisers appointed
by the Administrative Agent at the expense of Borrower.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Federal Funds Effective Rate</u></b>&#148; means,
for any day, the weighted average (rounded upwards, if necessary, to the next 1/100
of 1%) of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published on the
next succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by Administrative Agent from three
Federal funds brokers of recognized standing selected by it.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Financial Officer</u></b>&#148; means the chief
financial officer, principal accounting officer, treasurer or controller of
Borrower.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Financial Statements</u></b>&#148; means the balance
sheet and statement of income and cash flows of K-Sea and its consolidated
Affiliates (including, without limitation, Borrower and all Guarantors), on a
consolidated basis, as required from time to time to be provided by Borrower
under this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">First
Lien Funded Debt</u></b>&#148;</font> means, as of any date, the aggregate
principal amount of Total Funded Debt outstanding at such date that consists
of, without duplication, (i) the Revolving Credit Exposure and (ii)
Indebtedness which ranks <i>pari</i>  <i>passu</i> to the Indebtedness under the Loan Documents and is
secured by a Lien (other than any Second-Priority Lien).</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">First Lien Funded Debt to EBITDA Ratio</u></b>&#148;
means</font>, at any date of
determination, the ratio of First Lien Funded Debt divided by EBITDA for the
four fiscal quarter period ending on such date or, if such date is not the last
day of a fiscal quarter, for the immediately preceding four fiscal quarter
period; <u>provided</u> that, for any such determination, EBITDA shall be
adjusted (i) to include, for the relevant four fiscal quarter period, pro forma
EBITDA in an amount reasonably acceptable
to the Administrative Agent respecting any vessel or business acquisition for
which debt is incurred and included in First Lien Funded Debt and (ii) to exclude, for the relevant four
fiscal quarter period, pro forma EBITDA in an amount reasonably acceptable to
the Administrative Agent respecting any vessel or business disposition.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Fixed Charge Coverage Ratio</u></b>&#148;
means, at any date of determination, the ratio of (a)&nbsp;EBITDA less
Maintenance CAPEX divided by (b) Fixed Charges, in each case for the four
fiscal quarter period ending on such date or, if such date is not the last day
of a fiscal quarter, for the immediately preceding four fiscal quarter period; <u>provided</u> that, for any such
determination, EBITDA shall be adjusted to include, for the relevant four
fiscal quarter period, pro forma EBITDA in an amount reasonably acceptable to
the Administrative Agent respecting any vessel or business acquisition for
which debt service is incurred and included in Fixed Charges</font>.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Fixed Charges</u></b>&#148; means the sum, for any
period for K-Sea and its consolidated Affiliates, including, without
limitation, Borrower and any Guarantor, on a consolidated basis, of</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
following:&#160; (i)&nbsp;Interest Expense,
plus (ii)&nbsp;the current portion of capital lease payments, plus
(iii)&nbsp;Scheduled Principal Payments, plus (iv) cash income taxes.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Foreign Lender</u></b>&#148; means any Lender that
is organized under the laws of a jurisdiction other than the United States of
America, any State thereof or the District of Columbia.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Fronting Fee</u></b>&#148; has the meaning set
forth in Section 2.09(d) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">GAAP</u></b>&#148; means generally accepted
accounting principles in the United States of America, as may be determined by
the Financial Accounting Standards Board.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Government Approval</u></b>&#148; means an
authorization, consent, non-action, approval, license or exemption of,
registration or filing with, or report to, any governmental or
quasi-governmental department, agency, body or other unit.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Governmental Authority</u></b>&#148; means the
government of the United States of America, any other nation or any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Guarantee</u></b>&#148; of or by any Person (the &#147;<b><u style="font-weight:bold;">guarantor</u></b>&#148;) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person
(the &#147;<b><u style="font-weight:bold;">primary obligor</u></b>&#148;) in any manner,
whether directly or indirectly, and including any obligation of the guarantor,
direct or indirect, (a)&nbsp;to purchase or pay (or advance or supply funds for
the purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (b)&nbsp;to purchase or lease property, securities or services
for the purpose of assuring the owner of such Indebtedness or other obligation
of the payment thereof, (c)&nbsp;to maintain working capital, equity capital or
any other financial statement condition or liquidity of the primary obligor so
as to enable the primary obligor to pay such Indebtedness or other obligation,
or (d)&nbsp;as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; <u>provided</u>
that the term Guarantee shall not include any endorsement for collection or
deposit in the ordinary course of business.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Guarantors</u></b>&#148; means, collectively, K-Sea
and any Subsidiary Guarantor from time to time, and each, a &#147;<b><u style="font-weight:bold;">Guarantor</u></b>.&#148;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Hazardous Materials</u></b>&#148; means
(a)&nbsp;hazardous materials, hazardous wastes, and hazardous substances as
those or similar terms are defined under any Environmental Laws, including, but
not limited to, the following:&#160; the
Hazardous Materials Transportation Act, 49 U.S.C. Section&nbsp;1801 <i>et seq.</i>, as amended from time to time, the
Resource Conservation and Recovery Act, 42 U.S.C. Section&nbsp;6901 <i>et seq.</i>, as amended from time to time,
CERCLA, the Clean Water Act, 33 U.S.C. Section&nbsp;1251 <i>et seq.</i>, as amended from time to time, the
Clean Air Act, 42 U.S.C. Section&nbsp;7401 <i>et
seq.</i>, as amended from time to time, and/or the Toxic Substances
Control Act, 15 U.S.C. Section&nbsp;2601 <i>et
seq.</i>, as amended from time to time, OPA 90; (b)&nbsp;petroleum and
petroleum products, including crude oil and any fractions thereof;
(c)&nbsp;natural gas, synthetic gas,</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and
any mixtures thereof; (d)&nbsp;asbestos and/or any material which contains any
hydrated mineral silicate, including, but not limited to, chrysolite, amosite,
crocidolite, tremolite, anthophylite and/or actinolite, whether friable or
non-friable; (e)&nbsp;polychlorinated biphenyls (&#147;<b><u style="font-weight:bold;">PCBs</u></b>&#148;), or PCB-containing materials or fluids;
(f)&nbsp;radon; (g)&nbsp;any other hazardous radioactive, toxic or noxious
substance, material, pollutant, or solid, liquid or gaseous waste; and
(h)&nbsp;any hazardous substance that, whether by its nature or its use, is
subject to regulation under any Environmental Law or with respect to which any
international, federal, state or local Environmental Law or governmental agency
requires environmental investigation, monitoring or remediation.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Hedging Agreement</u></b>&#148;<b>  </b></font>means any interest rate protection
agreement, foreign currency exchange agreement, commodity price protection
agreement (excluding fuel surcharge) or other interest or currency exchange
rate or commodity price hedging arrangement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Hire</u></b>&#148; means all charter hire under any
and all charters entered into by or on behalf of Borrower or any Subsidiary
Guarantor of any Pool Vessel from time to time, together with additional hire,
supplemental hire, requisition hire, freights and any other amounts paid to or
for the account of Borrower or such Subsidiary Guarantor on account of the use
or employment of such Pool Vessel.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Honor Date</u></b>&#148; has the meaning set
forth in Section 2.14(d) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Indebtedness</u></b>&#148; of any Person means,
without duplication, (a)&nbsp;all obligations of such Person for borrowed money
or with respect to deposits or advances of any kind, (b)&nbsp;all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments,
(c)&nbsp;all obligations of such Person upon which interest charges are
customarily paid, (d)&nbsp;all obligations of such Person under conditional
sale or other title retention agreements relating to property acquired by such
Person, (e)&nbsp;all obligations of such Person in respect of the deferred
purchase price of property or services (excluding current accounts payable
incurred in the ordinary course of business), (f)&nbsp;all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (g)&nbsp;all Guarantees by such Person of Indebtedness of others,
(h)&nbsp;all Capital Lease Obligations of such Person, (i)&nbsp;all operating
lease obligations of such Person, (j)&nbsp;all obligations, contingent or
otherwise, of such Person as an account party in respect of letters of credit
and letters of guaranty, and (k)&nbsp;all obligations, contingent or otherwise,
of such Person in respect of bankers&#146; acceptances; <u>provided</u>, <u>however</u>,
that &#147;<b><u style="font-weight:bold;">Indebtedness</u></b>&#148; shall not include
(x)&nbsp;Secured Nonrecourse Obligations and (y)&nbsp;nonrecourse obligations
incurred in connection with leveraged lease transactions as determined in
accordance with GAAP.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Indemnified Taxes</u></b>&#148; means Taxes other
than Excluded Taxes.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Indemnitee</u></b>&#148; has the meaning set
forth in Section 10.06(b) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Information</u></b>&#148; has the meaning set
forth in Section 10.15 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interest Expense</u></b>&#148; means, for any
period, the sum, for K-Sea and its consolidated Affiliates, including, without
limitation, Borrower or any Guarantor, on a consolidated basis, of</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
following:&#160; (a)&nbsp;all interest in
respect of Indebtedness (including the interest component of any payments in
respect of Capital Lease Obligations) accrued or capitalized during such period
(whether or not actually paid during such period) plus (b)&nbsp;the net amount
payable (or minus the net amount receivable) under Hedging Agreements relating
to interest during such period (whether or not actually paid or received during
such period).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interest Payment Date</u></b>&#148; means, (i) with
respect to any Base Rate Loan, the last day of each calendar month, <u>provided</u>
that if any Interest Payment Date would end on a day other than a Business Day,
such Interest Payment Date shall be extended to the next succeeding Business
Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Payment Date shall end on the next preceding
Business Day, and (ii) with respect to any LIBOR Loan, shall mean the last day
of the relevant Interest Period, <u>provided</u> interest on any LIBOR Loan
having an Interest Period of six (6) months shall be payable three (3) months
after the first day of such Interest Period as well as on the last day of the
relevant Interest Period.&#160; For purposes
hereof, the date of a Loan initially shall be the date on which such Loan is made.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interest Period</u></b>&#148;
</font>means with respect to a
LIBOR Loan, the period commencing on the date of the making of such LIBOR Loan
and ending on the numerically corresponding day in the calendar month that is
one, two, three or six months thereafter, as Borrower may elect, <u>provided</u>
that (a) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day,
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business
Day, (b) any Interest Period that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period. For purposes
hereof, the date of the making of a LIBOR Loan initially shall be the date on
which such LIBOR Loan is made and thereafter shall be the effective date of the
most recent conversion or continuation of such LIBOR Loan.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interest Rate</u></b>&#148; means the applicable
interest rate as set forth in Section&nbsp;2.03 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interisland</u></b>&#148; means Hawaiian
Interisland Towing, Inc., a Hawaii corporation and a wholly-owned subsidiary of
Smith Maritime.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interisland I Mortgage</u></b>&#148; means the
Preferred Fleet Mortgage granted by Interisland to the Collateral Trustee over
the whole of the K-Sea LLC Phase Two Pool Vessels, as the same may be amended,
modified or supplemented from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interisland II Mortgage</u></b>&#148; means the
Preferred Fleet Mortgage granted by Interisland to the Collateral Trustee over
the whole of the K-Sea Hawaii Phase Two Pool Vessels, as the same may be
amended, modified or supplemented from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interisland III Mortgage</u></b>&#148; means the
Preferred Fleet Mortgage granted by Interisland to the Collateral Trustee over
the whole of the Smith Maritime Phase Two Pool Vessels owned by Interisland, as
the same may be amended, modified or supplemented from time to time.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Interisland Pool Vessels</u></b>&#148; means
those vessels identified as owned by Interisland (before giving effect to the
Phase Two Transactions) on <b>Schedule 1.01C</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Judgment Currency</u></b>&#148; has the meaning
set forth in Section 10.18 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">KeyBank</u></b>&#148; means KeyBank National
Association.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea</u></b>&#148; means K-Sea Transportation
Partners L.P.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea Hawaii</u></b>&#148; means K-Sea Hawaii
Inc., a Delaware corporation and a wholly-owned Subsidiary of K-Sea
Transportation, Inc.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea Hawaii Mortgage Assumption</u></b>&#148;
means the Mortgage Assumption by K-Sea Hawaii, the Collateral Trustee and
Interisland with respect to the Interisland II Mortgage and the K-Sea Hawaii
Phase Two Pool Vessels.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea Hawaii Phase Two Pool Vessels</u></b>&#148;
means those vessels identified as owned by K-Sea Hawaii (after giving effect to
the consummation of the Phase Two Transactions) on <b>Schedule
1.01C</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea Hawaii Pool Vessels</u></b>&#148; means
those vessels identified as owned by K-Sea Hawaii on <b>Schedule
1.01A</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea LLC</u></b>&#148; means K-Sea
Transportation LLC, a Delaware limited liability company, formerly know as &#147;Sea
Coast Transportation LLC&#148; and a wholly-owned Subsidiary of Borrower.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea LLC Mortgage</u></b>&#148; means the First
Preferred Fleet Mortgage, dated October 18, 2005, granted by K-Sea LLC to the
Collateral Trustee over the whole of the K-Sea LLC Pool Vessels, as heretofore
amended and supplemented and as it may be further amended, modified or
supplemented from time to time and from which K-Sea LLC Pool Vessels may be
added or released from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea LLC Mortgage Assumption</u></b>&#148;
means the Mortgage Assumption by K-Sea LLC, the Collateral Trustee and
Interisland with respect to the Interisland I Mortgage and the K-Sea LLC Phase
Two Pool Vessels.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea LLC Phase Two Pool Vessels</u></b>&#148;
means the vessels identified as owned by K-Sea LLC (after giving effect to the
consummation of the Phase Two Transactions) on <b>Schedule
1.01C</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">K-Sea LLC Pool Vessels</u></b>&#148; means those
vessels identified as owned by K-Sea LLC on <b>Schedule
1.01A</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">L/C Issuer</u></b>&#148; means KeyBank.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Lender Affiliate</u></b>&#148; means, (a)&nbsp;with
respect to any Lender, (i)&nbsp;an Affiliate of such Lender that is in the
business of making and/or buying loans of the type described herein, or
(ii)&nbsp;any</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">entity
(whether a corporation, partnership, trust or otherwise) that is engaged in
making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and is administered
or managed by any Lender or an Affiliate of such Lender, and (b)&nbsp;with
respect to any Lender that is a fund which invests in bank loans and similar
extensions of credit, any other fund that invests in bank loans and similar
extensions of credit and is managed by the same investment advisor as such
Lender or by an Affiliate of such investment advisor.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Lenders</u></b>&#148; </font>means, collectively, the Tranche A Lenders
and the Tranche B Lenders.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Letter of Credit</u></b>&#148; means either a
Documentary Letter of Credit or a Standby Letter of Credit.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Letter of Credit Exposure</u></b>&#148;
means in respect of any Tranche A Lender at any time, an amount equal to (i)
the sum (without duplication) at such time of (x) the aggregate amount
available for drawing under the outstanding Letters of Credit, (y) the
aggregate amount of unpaid drafts drawn on all Letters of Credit, and (z) the
aggregate unpaid Reimbursement Obligations, multiplied by (ii) such Tranche A
Lender&#146;s Tranche A Applicable Percentage at such time</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Letter of Credit Documentation</u></b>&#148; has
the meaning set forth in Section 2.14(a) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Letter of Credit Fee</u></b>&#148; has the
meaning set forth in Section 2.09(c) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Letter of Credit Sublimit</u></b>&#148; means
$20,000,000.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">LIBOR</u></b>&#148;  </font>means,
with respect to the Interest Period applicable to any LIBOR Loan, a rate of
interest per annum, as determined by the Administrative Agent, equal to the
rate for deposits in Dollars for a period comparable to such Interest Period
which appears on the Reuters Page LIBOR01 (or such other page as may replace
LIBOR01 on the Reuters Monitor Money Rates Service for the purpose of
displaying such rates or such other service as may be nominated by the British
Bankers Association, for the purpose of displaying London interbank offered
rates for U.S. dollar deposits) as of
11:00 a.m., London time, on the day that is two Business Days prior to the
first day of such Interest Period.&#160; If
such rate does not appear on Reuters Page LIBOR01 (or such other replacement
page), the LIBO Rate shall be the rate per annum (rounded, if necessary, to the
nearest one hundred-thousandth of a percentage point) at which deposits in
Dollars are offered by four major banks in the London interbank market at
approximately 11:00 a.m., London time, on the day that is two Business Days
prior to the first day of such Interest Period to prime banks in the London
interbank market for a period of one month commencing on the first day of such
Interest Period in an amount comparable to the principal amount of such LIBOR
Loan.&#160; The Administrative Agent will
request the principal London office of each such bank to provide a quotation of
its rate.&#160; If at least two such
quotations are provided as requested, the rate for such Interest Period shall
be the arithmetic mean of the quotations.&#160;
If fewer then two quotations are provided as requested, the rate for
such Interest Period shall be the arithmetic mean of the rates quoted by major
banks in New York City, selected by the Administrative Agent, at approximately
11:00 a.m., New York City time, on the date that is two Business Days prior to
the first day of such Interest Period for loans in Dollars to leading European
banks for a</p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">period of one month commencing on the first day of
such Interest Period in an amount comparable to such LIBOR Loan.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">LIBOR Loan</u></b>&#148; means any Loan bearing
interest at the LIBOR Rate.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">LIBOR Rate</u></b>&#148; means the Adjusted LIBOR
Rate plus the Applicable Margin.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Lien</u></b>&#148; means, with respect to any asset,
any interest in property securing an obligation owed to, or a claim by, any
person other than the owner of the property, whether such interest shall be
based on common law, maritime law, statute, contract or conveyance and
including, but not limited to, the security interest lien arising from any
pledge, mortgage, chattel mortgage, charge, encumbrance, conditional sale or
trust receipt, or from a charter, consignment or bailment for security purposes
and any tax lien, mechanic&#146;s lien, materialman&#146;s lien, workman&#146;s lien, repairman&#146;s
lien, any financing statement or other similar charge or encumbrance.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Loan Accounts</u></b>&#148;<b>  </b></font>means one or more loan accounts
maintained by the Administrative Agent for Borrower in the ordinary course of
business, including, without limitation, any loan account in respect of any
Facility, and each, a<b>  </b>&#147;<b><u style="font-weight:bold;">Loan
Account</u></b>.&#148;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Loan Documents</u></b>&#148; means, collectively,
this Agreement, the Notes, the Borrower Mortgage, the K-Sea LLC Mortgage, the
Interisland I Mortgage, the Interisland II Mortgage, the Interisland III
Mortgage, the Tow Boat Mortgage, the Diving Mortgage, the Smith/Diving Mortgage
Assumption, the Smith/Interisland Mortgage Assumption, the Smith/Tow Boat
Mortgage Assumption, the K-Sea Hawaii Mortgage Assumption, the Parent Guaranty,
each Subsidiary Guaranty, the Assignments and all consents given with respect
to any of the foregoing.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Loan Request</u></b>&#148; means a request by
Borrower for a Loan in accordance with Section&nbsp;2.04 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Loans</u></b>&#148; means, collectively, the Tranche
A Loans and the Tranche B Loans.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Maintenance CAPEX</u></b>&#148; </font>means all Capital Expenditures made for the
purpose of maintaining (and not increasing) the operating capacity of the Pool
Vessels during the twelve (12) calendar months immediately preceding any date
of determination thereof.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Managing Person</u></b>&#148; means, with
respect to any Person that is (a) a corporation, its board of directors, (b) a
limited liability company, its board of control, managing member or members,
(c) a limited partnership, its general partner, (d) a general partnership or a
limited liability partnership, its managing partner or executive committee or
(e) any other Person, the managing body thereof or other Person analogous to
the foregoing.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Material Adverse Effect</u></b>&#148; means a
material adverse effect on (a)&nbsp;the Collateral, (b)&nbsp;the property, business,
operations, financial condition, liabilities or capitalization of K-Sea and its
consolidated Affiliates, including, without limitation, Borrower and each
Guarantor, taken as a whole, (c)&nbsp;the ability of Borrower to perform any of
its obligations under this Agreement (including the timely payment of all
amounts due hereunder), (d)&nbsp;the rights of or benefits</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">available
to the Administrative Agent, Collateral Trustee and the Lenders under this
Agreement, or (e)&nbsp;the validity or enforceability of this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Material Indebtedness</u></b>&#148; means (i)
Indebtedness (other than the Loans), or obligations in respect of one or more
Hedging Agreements, of any one or more of K-Sea, Borrower and its Subsidiaries
in an aggregate principal amount exceeding $100,000.00 and (ii) the Bridge Loan
and any other Indebtedness from time to time outstanding under the Bridge Loan
Agreement.&#160; For purposes of determining
Material Indebtedness, the &#147;<b><u style="font-weight:bold;">principal amount</u></b>&#148;
of the obligations of K-Sea, Borrower or any Subsidiary in respect of any
Hedging Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements) that K-Sea, Borrower or such Subsidiary would
be required to pay if such Hedging Agreement were terminated at such time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Maturity Date</u></b>&#148; means the Tranche A
Maturity Date or the Tranche B Maturity Date, as the case may be.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Maximum Rate</u></b>&#148; has the meaning set
forth in Section 10.16 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Minimum Loan Amount</u></b>&#148; means, with
respect to any LIBOR Loan, a minimum amount of Five Hundred Thousand Dollars
($500,000.00), with additional amounts in increments of One Hundred Thousand
Dollars ($100,000.00) and, with respect to any Base Rate Loan, a minimum amount
of One Hundred Thousand Dollars ($100,000.00) with additional amounts in
increments of One Hundred Thousand Dollars ($100,000.00).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Mortgage</u></b>&#148; means, collectively, (i) the
Borrower Mortgage, (ii) the K-Sea LLC Mortgage, (iii) the Interisland I
Mortgage, (iv) the Interisland II Mortgage, (v) the Interisland III Mortgage,
(vi) the Tow Boat Mortgage and (vii) the Diving Mortgage, as the Interisland I
Mortgage, the Interisland II Mortgage, the Interisland III Mortgage, the Tow
Boat Mortgage and the Diving Mortgage shall be assumed in connection with the
Phase Two Transactions and as each may be amended, modified or supplemented
from time to time and from which Pool Vessels may be added or released from
time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Mortgage Assumptions</u></b>&#148; means,
collectively, K-Sea Hawaii Mortgage Assumption, the K-Sea LLC Mortgage
Assumption, the Smith/Interisland Mortgage Assumption, the Smith/Tow Boat
Mortgage Assumption and the Smith/Diving Mortgage Assumption.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Multiemployer Plan</u></b>&#148; means a
multiemployer plan as defined in Section&nbsp;4001(a)(3) of ERISA.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Negative Pledge</u></b>&#148; has the meaning
set forth in Section 7.14 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Net Proceeds</u></b>&#148; means, with respect
to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Asset Disposition by any Person, or any Extraordinary Receipt received by or
paid to or for the account of any Person, the aggregate amount of cash received
from time to time (whether as initial consideration or through payment or
disposition of deferred consideration) by or on behalf of such Person in
connection with such transaction after deducting</p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">therefrom
only (without duplication) the sum of: (i) reasonable and customary brokerage
commissions, investment banking fees, underwriting fees and discounts, legal
fees, accounting fees, finder&#146;s fees and other similar out-of-pocket costs,
(ii) the amount of taxes paid or payable in connection with or as a result of
such transaction and (iii) with respect to any asset, the amount of any
Indebtedness secured by a Lien on such asset that, by the terms of such
transaction, is repaid upon such disposition, in each case to the extent, but
only to the extent, that the amounts so deducted are, at the time of receipt of
such cash, actually paid to a Person that is not an Affiliate of such Person or
any Credit Party or any Affiliate of any Credit Party and are properly
attributable to such transaction or to the asset that is the subject thereof;
and</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>with respect to any Prepayment/Reduction
Event, the aggregate amount of&#160; cash
received from time to time (whether as initial consideration or through
payment or disposition of deferred consideration) in respect of such Prepayment/Reduction Event, including (i) any cash
received in respect of any non-cash proceeds, but only as and when
received, (ii) in the case of a casualty, insurance proceeds and (iii) in the
case of a condemnation or similar event, condemnation awards and similar
payments, after deducting therefrom only (without duplication) the sum of (A)
all reasonable and customary brokerage commissions, investment banking
fees, underwriting fees and discounts, legal fees, accounting fees, finder&#146;s
fees and other similar out-of-pocket costs
paid by Borrower or any Subsidiary Guarantor to third parties in connection
with such Prepayment/Reduction Event, (B) in the case of a sale, transfer,
lease or other disposition of an asset (including pursuant to a sale and
leaseback transaction), the amount of any Indebtedness secured by a Lien
on such asset that, by the terms of such transaction, is repaid upon such
disposition and (C) the amount of all
taxes paid (or reasonably estimated to be payable) by Borrower and the
Subsidiary Guarantors, and the amount of any reserves established by Borrower
and the Subsidiary Guarantors to fund contingent liabilities reasonably
estimated to be payable, in each case during the year that such event occurred
or the next succeeding year and that are directly attributable to such event
(as determined reasonably and in good faith by a Financial Officer of Borrower),
in each case to the extent, but only to the extent, that the amounts so
deducted are, at the time of receipt of such cash, actually paid to a Person
that is not an Affiliate of such Person or any Credit Party or any Affiliate of
any Credit Party and are properly attributable to such transaction or to the
asset that is the subject thereof.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Non-Qualified Pool Vessel</u></b>&#148; means any
Pool Vessel that is (i)&nbsp;a vessel required to be phased out at any time by
OPA 90, (ii)&nbsp;not qualified or documented with endorsement for the United
States coastwise trade, or (iii)&nbsp;a vessel which is part of an incomplete
two-vessel operating unit (comprised of a specific tug-barge combination).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Notes</u></b>&#148; means collectively the Notes
evidencing Loans under the Facilities as described in Section&nbsp;2.07(f)
hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Obligation Currency</u></b>&#148; has the
meaning set forth in Section 10.18 hereof.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Obligations</u></b>&#148; </font>means (a) the due and punctual payment of (i)
principal of and premium, if any, and interest (including interest accruing
during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans or the Letter of Credit Exposure, when and as due,
whether at</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">maturity, by acceleration, upon one or more dates
set for prepayment or otherwise, (ii) all other monetary obligations, including
fees, commissions, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in such
proceeding), of Borrower or any other Credit Party to the Administrative Agent,
the Lenders or the L/C Issuer, or that are otherwise payable to the
Administrative Agent, the Lenders or the L/C Issuer, under this Agreement and
the other Loan Documents and (iii) all obligations of Borrower, monetary or
otherwise, under each Hedging Agreement entered into with any Lender (or any
Affiliate thereof) as a counterparty and (b) the due and punctual performance
of all covenants, agreements, obligations and liabilities of Borrower or any
other Credit Party under or pursuant to this Agreement and the other Loan
Documents.&#160; This term</font> includes all
principal, interest (</font>including
interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), fees, charges, expenses, attorneys&#146; fees
and any other sum chargeable to any Credit Party under this Agreement or any of
the other Loan Documents.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">OPA 90</u></b>&#148; means the Oil Pollution Act of
1990, P.L. 101-380, 104 Stat. 484 <i>et seq</i>.,
as amended from time to time.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Organizational Documents</u></b>&#148; </font>means as to any Person which is (a) a
corporation, the certificate or articles of incorporation and by-laws of
such Person, (b) a limited liability company, the limited liability company
agreement or similar agreement of such Person, (c) a partnership, the
partnership agreement or similar agreement of such Person, or (d) any other
form of entity or organization, the organizational documents analogous to the
foregoing.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Other Taxes</u></b>&#148; means any and all present
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies arising from any payment made hereunder or from the
execution, delivery or enforcement of, or otherwise with respect to, this
Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Parent Guaranty</u></b>&#148; means that certain
guaranty, dated as of March 24, 2005, executed by K-Sea in favor of Lenders, as
amended, restated, supplemented or otherwise modified from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Participant</u></b>&#148; has the meaning set
forth in Section 10.07(e) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Patriot Act</u></b>&#148; has the meaning set
forth in Section 10.19 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">PBGC</u></b>&#148; means the Pension Benefit
Guaranty Corporation referred to and defined in ERISA and any successor entity
performing similar functions.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Permitted
Acquisition</u></b>&#148; means the purchase, holding or acquisition of
(including pursuant to any merger) any capital stock or other securities
(including any option, warrant or other right to acquire any of the foregoing)
of any other Person, or the purchase or acquisition of (in one transaction or a
series of transactions (including pursuant to any merger)) any assets of any
other Person constituting a business unit, <u>provided</u> that, (i) at the time thereof and</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">immediately after giving effect thereto no Default
shall have occurred and be continuing, (ii) such Person or business unit, as
the case may be, is in substantially the same business as Borrower and (iii)
Borrower shall have complied with the provisions of Section 6.18 with respect
to such Person.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Permitted Bridge Loan Liens</u></b>&#148; means
Liens on (i) the Pool Vessels that are subordinated to the Liens in favor of
the Collateral Trustee pursuant to the terms of the Bridge Loan Intercreditor
Agreement and (ii) other vessels of Borrower and its subsidiaries, in each
case&#160; securing (x) the Bridge Loan and
(y) any extensions, renewals or replacements of the Tranche B Loans that do not
increase the outstanding principal amount thereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Permitted Liens</u></b>&#148; means:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Liens
imposed by law for taxes or under ERISA in respect of contingent liabilities
thereunder that are not yet due;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>carriers&#146;,
warehousemen&#146;s, mechanics&#146;, materialmen&#146;s, repairmen&#146;s and other like Liens
imposed by law, including, but not limited to, liens for current wages of the
crew of any Pool Vessel, including the master of such Pool Vessel, for current
wages of stevedores when employed directly by such Pool Vessel or for general
average or salvage, including contract salvage or liens arising in the ordinary
course of business and securing obligations that are not overdue by more than
thirty (30) days and in each such case such liens are subordinate to the Lien
of the Mortgage;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Liens
arising out of bareboat charters of Pool Vessels to K-Sea Transportation Inc.
or any other Subsidiary Guarantor covering the Pool Vessels described on <b>Schedule 4.14</b>; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Liens
arising out of time charters, voyage charters or contracts of affreightment
with unrelated third parties in respect of a Pool Vessel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided</font></u>
that the term &#147;<b><u style="font-weight:bold;">Permitted Liens</u></b>&#148;
shall not include any Lien securing Indebtedness; and, <u>provided</u>, <u>further</u>,
that the aggregate amount of Permitted Liens outstanding on all Pool Vessels at
any one time shall not exceed $5,000,000.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Person</u></b>&#148; means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Phase Two Pool Vessels</u></b>&#148; means,
collectively, those vessels identified on <b>Schedule 1.01C</b>
hereto.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Phase Two Transactions</u></b>&#148; means,
collectively, (i) the conversion effective as of the Effective Date of each of
Interisland, Tow Boat and Diving from a Hawaii corporation into a Hawaii
limited liability company, (ii) the capital contribution, effective as of the
Effective Date, by Interisland of the K-Sea LLC Phase Two Pool Vessels to K-Sea
LLC, (iii) the capital contribution, effective as of the Effective Date, by
Interisland of the K-Sea Hawaii Phase Two Pool Vessels to K-Sea Hawaii, (iv)
the capital contribution, effective as of the Effective Date, by</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interisland of the
Smith Maritime Phase Two Pool Vessels owned by Interisland to Smith Maritime,
(v) the capital contribution, effective as of the Effective Date, by Tow Boat
of the Tow Boat Pool Vessels to Smith Maritime, (vi) the capital contribution, effective
as of the Effective Date, by Diving of the Diving Pool Vessel to Smith
Maritime, (vii)&nbsp;the filing (complete except for evidence from each
relevant Governmental Authority of the conversion of Interisland from a Hawaii
corporation into a Hawaii limited liability company) for registration of each
of the K-Sea LLC Phase Two Pool Vessels in the name of K-Sea LLC,
(viii)&nbsp;the filing (complete except for evidence from each relevant
Governmental Authority of the conversion of Interisland from a Hawaii corporation
into a Hawaii limited liability company) for registration of each of the K-Sea
Hawaii Phase Two Pool Vessels in the name of K-Sea Hawaii, (ix) the filing
(complete except for evidence from each relevant Governmental Authority of the
conversion of each of Interisland, Tow Boat and Diving from Hawaii corporations
into Hawaii limited liability companies) for registration of each of the Smith
Maritime Phase Two Pool Vessels in the name of Smith Maritime (x)&nbsp;the
assumption by K-Sea LLC, effective on the date evidence of such conversion has
been received by the Credit Parties from each relevant Governmental Authority,
of the obligations and liabilities of Interisland under the Interisland I
Mortgage pursuant to the terms of the K-Sea LLC Mortgage Assumption, (xi) the
assumption by K-Sea Hawaii, effective on the date evidence of such conversion
has been received by the Credit Parties from each relevant Governmental
Authority, of the obligations and liabilities of Interisland under the
Interisland II Mortgage pursuant to the K-Sea Hawaii Mortgage Assumption, (xii)
the assumption by Smith Maritime, effective on the date evidence of such
conversion has been received by the Credit Parties from each relevant
Governmental Authority, of the obligations and liabilities of (A) Interisland
under the Interisland III Mortgage pursuant to the Smith/Interisland Mortgage
Assumption, (B) Tow Boat under the Tow Boat Mortgage pursuant to the Smith/Tow
Boat Mortgage Assumption and (C) Diving under the Diving Mortgage pursuant to the
Smith/Diving Mortgage Assumption and (xiii)&nbsp;the filing with the United
States Coast Guard National Vessel Documentation Center in Falling Waters, West
Virginia, on the date evidence of such conversion has been received by the
Credit Parties from each relevant Governmental Authority, of each of the K-Sea
LLC Mortgage Assumption, the K-Sea Hawaii Mortgage Assumption, the
Smith/Interisland Mortgage Assumption, the Smith/Tow Boat Mortgage Assumption
and the Smith/Diving Mortgage Assumption.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Plan</u></b>&#148; means any employee pension
benefit plan (other than a Multiemployer Plan) subject to the provisions of
Title IV of ERISA or Section&nbsp;412 of the Code or Section&nbsp;302 of ERISA,
and in respect of which Borrower or any ERISA Affiliate is (or, if such plan
were terminated, would under Section&nbsp;4069 of ERISA be deemed to be) an &#147;employer&#148;
as defined in Section&nbsp;3(5) of ERISA.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Pool Vessels</u></b>&#148; means<b>, </b>collectively,
those vessels identified on <b>Schedule&nbsp;1.01A</b>
hereto as of the Effective Date after giving effect to the Phase Two Transactions,
together with any vessels hereafter added to the Pool Vessels pursuant to
Section&nbsp;3.02 or Section&nbsp;3.03 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Prepayment/Reduction
Event</u></b>&#148; means:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the disposition of any
or all of the fixed assets of Borrower or any Subsidiary Guarantor not included
in the Collateral whether by sale, lease, transfer or otherwise </p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(but excluding
damage, destruction, loss or condemnation); <u>provided</u>, <u>however</u>,
prior to the occurrence of an Event of Default, none of the following shall be
deemed to be a &#147;<b><u style="font-weight:bold;">Prepayment/Reduction Event</u></b>&#148;:
(i) any sale, lease, transfer or other disposition of (A)&nbsp;inventory in the
ordinary course of business; (B)&nbsp;obsolete or worn out equipment; (C)
traded-in equipment, (D) assets by Borrower to a Subsidiary Guarantor or by a
Subsidiary Guarantor to Borrower or another Subsidiary Guarantor; or (E)
transfers permitted under Section 7.07 or Section 7.08 hereof; and (ii)
charters or other employment contracts of vessels not otherwise prohibited
hereby;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any casualty or other
insured damage to, or any taking under power of eminent domain or by
condemnation or similar proceeding of, any property or asset of Borrower or any
Subsidiary Guarantor not included in the Collateral and not encumbered by a
ship mortgage, other than casualties, insured damage or takings resulting in
aggregate Net Proceeds not exceeding $1,000,000 during any fiscal year;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any Equity Issuance
(including, without limitation, the Qualified Equity Issuance); and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the incurrence by any
Borrower or any of the Subsidiaries of any Indebtedness other than Indebtedness
described in clause (i), (ii), (iii), (v), (vi) or (vii) of Section 7.12
hereof.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Prime
Rate</u></b>&#148; </font>means
the rate of interest per annum publicly announced from time to time by KeyBank
National Association as its prime commercial lending rate; each change in the
Prime Rate being effective from and including the date such change is publicly
announced as being effective. The Prime Rate is not intended to be lowest rate
of interest charged by KeyBank National Association in connection with
extensions of credit to borrowers.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Proceeds</u></b> shall have the meaning
assigned to it in the UCC and, in any event, shall include, but not be limited
to, (i)&nbsp;any and all proceeds of any insurance, indemnity or warranty
payable to Lenders, from time to time with respect to the Pool Vessels or other
Collateral; (ii)&nbsp;any and all payments (in any form whatsoever) made or due
and payable from time to time in connection with any sale, requisition,
confiscation, condemnation, seizure or forfeiture of all and any part of the
Pool Vessels by any governmental body, authority, bureau or agency of any other
Person (whether or not acting under color of governmental body); and
(iii)&nbsp;accounts arising out of, any charter or chattel paper evidencing,
any lease, contract for use or lease of, any and all other rents, hire or
profits or other amounts from time to time paid or payable to Lenders in
connection with, the Pool Vessels.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Prohibited Jurisdiction</u></b>&#148; means any
country or jurisdiction, from time to time, (a)&nbsp;that is subject of a
prohibition order (or any similar order or directive), sanctions or
restrictions promulgated or administered by the Office of Foreign Assets
Control of the United States Treasury Department, or (b)&nbsp;in which, or for
which, any Lender, which is a Lender on the Effective Date, is otherwise
prohibited or restricted, under laws, regulations, sanctions or restrictions
applicable to it or its business, from extending credit, transferring property
or assets, engaging in or facilitating trade or other economic activity, or
otherwise doing business.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Prohibited Person</u></b>&#148; means any Person
appearing on the Specially Designated Nationals List compiled and disseminated
by the Office of Foreign Assets Control of the United States Treasury
Department, as the same may be amended from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Proposed
Increased Commitment</u></b>&#148; has the meaning assigned to such term in
Section&nbsp;2.17 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Qualified
Equity Issuance</u></b>&#148; means an underwritten public offering of
Capital Stock of K-Sea that generates Net Proceeds in cash to K-Sea of not less
than $150,000,000, which proceeds will be contributed to Borrower on terms and
conditions reasonably satisfactory to the Administrative Agent to be applied to
the repayment in full of the Bridge Loan and the Tranche B Loans.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Qualified Pool Vessels</u></b>&#148; means Pool
Vessels that are documented, coastwise eligible tugs, AT/Bs and double-hulled
barges and are acceptable in age, construction, condition and trade employment
to the Administrative Agent; <u>provided</u> that during the period from the
Effective Date to the second Anniversary Date, &#147;<b><u style="font-weight:bold;">Qualified
Pool Vessels</u></b>&#148; may also include single-hulled barges having a
Fair Market Value not in excess of five percent (5%) of the aggregate Fair
Market Value of all Pool Vessels.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Register</u></b>&#148; has the meaning assigned to
such term in Section&nbsp;10.07(c) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Reimbursement Obligation</u></b>&#148; means,
collectively, the obligation of Borrower to the L/C Issuer with respect to each
Letter of Credit and all documents, instruments and other agreements related
thereto, including the obligation of Borrower to reimburse the L/C Issuer for
amounts drawn under such Letter of Credit.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Related Parties</u></b>&#148; means, with respect to
any specified Person, such Person&#146;s Affiliates and the respective directors,
officers, employees, agents and advisors of such Person and such Person&#146;s
Affiliates.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Required Lenders</u></b>&#148; means, at any time,
Lenders having Revolving Credit Exposures and unused Commitments representing a
percentage equal to or greater than fifty-one percent (51%) (or in the case, at
any time, that the number of Lenders equals two or less, then one hundred
percent (100%)) of the sum of the total Revolving Credit Exposure and unused
Commitments at such time.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Revolving Credit Exposure</u></b>&#148; </font>means, with respect to any Lender at any
time, the sum as of such time of (i) such Lender&#146;s Tranche A Credit Exposure
plus<i>  </i>(ii) such Lender&#146;s Tranche B Credit
Exposure.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Scheduled
Principal Payments</u></b>&#148; means, with respect to any Person as of any
date, all scheduled payments of principal on Indebtedness paid by such Person
during the twelve (12) calendar month period immediately preceding such date; <u>provided</u>
that any Indebtedness repaid in full or in part from proceeds of Loans shall be
excluded (entirely, in the case of Indebtedness repaid in full and partially to
the extent of such repayment, in the case of Indebtedness repaid in part) in
the determination of Scheduled Principal Payments.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Second-Priority
Lien</u></b>&#148; means (i) the Permitted Bridge Loan Liens on the Pool
Vessels that are subordinated to the Liens in favor of the Collateral Trustee
pursuant to the terms of the Bridge Loan Intercreditor Agreement and (ii) other
Liens (other than Liens securing the Obligations) that are subordinated to the
Liens securing the Obligations pursuant to, and otherwise subject to the terms
of, any other intercreditor agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Secured Nonrecourse Obligations</u></b>&#148; means
(i)&nbsp;secured obligations of Borrower taken on a consolidated basis where
recourse of the payee of such obligations is expressly limited to an assigned
lease or loan receivable and the property related thereto, (ii)&nbsp;debt of
Single Transaction Subsidiaries, or (iii)&nbsp;liabilities of Borrower taken on
a consolidated basis to any manufacturer of leased equipment where such
liabilities are payable solely out of revenues derived from the leasing or sale
of such equipment; excluding, however, nonrecourse obligations incurred in
connection with leveraged lease transactions as determined in accordance with
GAAP.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Sirius
Acquisition Agreement</u></b>&#148; means the Agreement and Plan of Merger
dated as of June 25, 2007 among K-Sea LLC, <br>
K-Sea, Sirius Maritime, LLC, RCD Maritime Enterprises, LLC, a Washington
limited liability company, Smith Maritime, LLC, a Washington limited liability
company, WS Maritime Pacific, LLC, a Washington limited liability company, and
the other Persons party thereto, as amended prior to the Effective Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Sirius
Maritime, LLC</u></b>&#148; means Sirius Maritime, LLC, a Washington limited
liability company.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Sirius
Seller</u></b>&#148; means, collectively, RCD Maritime Enterprises, LLC, a
Washington limited liability company, Smith Maritime, LLC, a Washington limited
liability company, WS Maritime Pacific, LLC, a Washington limited liability
company.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith
Acquisition Agreement</u></b>&#148; means the Agreement and Plan of Merger
dated as of June 25, 2007 among Smith Maritime, K-Sea, Smith Maritime, Ltd., a
Hawaii corporation, Go Big Chartering, LLC, a Washington limited liability
company, Gordon L.K. Smith, individually and as trustee for The Gordon L.K.
Smith Trust, Barbara Smith, as trustee for the Barbara Smith SML Trust and
235LX, LLC, a Washington limited liability company, as amended prior to the
Effective Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Diving
Mortgage Assumption</u></b>&#148; means the Mortgage Assumption by Smith
Maritime, the Collateral Trustee and Diving with respect to the Diving Mortgage
and the Diving Pool Vessel.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Interisland
Mortgage Assumption</u></b>&#148; means the Mortgage Assumption by Smith
Maritime, the Collateral Trustee and Interisland with respect to the
Interisland III Mortgage and the Smith Maritime Phase Two Pool Vessels owned by
Interisland.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith
Maritime</u></b>&#148; means Smith Maritime LLC, a Delaware limited liability
company, formerly known as &#147;K-Sea Acquisition 1 LLC&#148; and a wholly-owned
Subsidiary of Borrower.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Sirius
Acquisition</u></b>&#148; means, collectively, (i) the merger of Smith
Maritime, Ltd., a Hawaii corporation and Go Big Chartering, LLC, a Washington
limited liability company, into </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime,
with Smith Maritime being the surviving entity of such mergers, pursuant to the
terms of the Smith Acquisition Agreement and (ii) the merger of Sirius
Maritime, LLC into K-Sea LLC, with K-Sea LLC being the surviving entity of such
merger, pursuant to the terms of the Sirius Acquisition Agreement, and related
transactions.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Sirius
Acquisition Documents</u></b>&#148; means the Smith/Sirius Acquisition
Agreement and the instruments, agreements and documents executed and delivered
in connection therewith.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Sirius
Acquisition Transactions</u></b>&#148; means, collectively, (i) the
Smith/Sirius Acquisition, (ii) the payment of approximately $49,750,000 to the
Sirius Seller, (iii) the payment by K-Sea LLC of approximately $117,700,000 to
the Smith Seller, (iv) the assumption and/or repayment of certain Smith Seller
or Sirius Seller Indebtedness and the issuance to the Smith/Sirius Sellers by
K-Sea of 250,000 units and (v) the contribution by the Sirius/Smith Seller
and/or certain of their Affiliates and/certain Subsidiaries of Borrower of
certain vessels to K-Sea LLC, Smith Maritime or K-Sea Hawaii.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith
Maritime Phase Two Pool Vessels</u></b>&#148; means those vessels identified
as owned by Smith Maritime (after giving effect to the consummation of the
Phase Two Transactions) on <b>Schedule 1.01C</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith
Maritime Pool Vessels</u></b>&#148; means those vessels identified as owned
by Smith Maritime on <b>Schedule 1.01A</b>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Sirius
Acquisition Agreement</u></b>&#148; means, collectively, the Sirius
Acquisition Agreement and the Smith Acquisition Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith
Seller</u></b>&#148; means, collectively, Gordon L.K. Smith, individually and
as trustee for The Gordon L.K. Smith Trust, Barbara Smith, as trustee for the
Barbara Smith SML Trust and 235LX, LLC, a Washington limited liability company.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Sirius
Seller</u></b>&#148; means, collectively, the Sirius Seller and the Smith
Seller.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Smith/Tow
Boat Mortgage Assumption</u></b>&#148; means the Mortgage Assumption by Smith
Maritime, the Collateral Trustee and Tow Boat with respect to the Tow Boat
Mortgage and the Tow Boat Pool Vessels.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Standby Letter of Credit</u></b>&#148; shall have
the meaning ascribed thereto in Section&nbsp;2.02(e) hereof.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Statutory Reserve Rate</u></b>&#148; means </font>a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject for
eurocurrency funding (currently referred to as &#147;Eurocurrency Liabilities&#148; in
Regulation D of the Board).&#160; Such reserve
percentages shall include those imposed pursuant to such Regulation D.&#160; LIBOR Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or </p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">offsets that may be available from time to time to any Lender under such
Regulation D or any comparable regulation.&#160;
The Statutory Reserve Rate shall be adjusted automatically on and as of
the effective date of any change in any reserve percentage.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Subordinated Indebtedness</u></b>&#148; means all
Indebtedness which is subordinated to the Obligations by its terms or pursuant
to a subordination agreement, in each case, reasonably acceptable to the
Administrative Agent.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Subsidiary</u></b>&#148; means, with respect to any
Person (the &#147;<b><u style="font-weight:bold;">Parent</u></b>&#148;) at
any date, any other Person the accounts of which would be consolidated with
those of the Parent in the Parent&#146;s consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other Person (a)&nbsp;of which securities or other ownership
interests representing more than 50% of the equity or more than 50% of the
ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, Controlled or held
by the Parent, or (b)&nbsp;the financial statements of which shall be (or
should be) consolidated with the financial statements of such Person in
accordance with GAAP.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Subsidiary Guarantor</u></b>&#148; means any
Subsidiary that executes and delivers a Subsidiary Guaranty; <u>provided</u>, <u>however</u>,
&#147;<b><u style="font-weight:bold;">Subsidiary Guarantor</u></b>&#148; shall exclude
the Excluded Subsidiaries.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Subsidiary Guaranty</u></b>&#148; means any guaranty
executed by any Subsidiary of Borrower in favor of Lenders pursuant to
Section&nbsp;6.18 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Taxes</u></b>&#148; means any and all present or
future taxes, levies, imposts, duties, deductions, charges or withholdings
imposed by any Governmental Authority.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Total Funded
Debt</u></b>&#148;</font> means, as of any date, all Indebtedness of K-Sea
and its consolidated Affiliates, including, without limitation, Borrower and
any Guarantor, on a consolidated basis, of the kinds and types (without
duplication) described in clauses (a), (b), (c), (d), (e), (f), (g), (h), (j)
(excluding obligations in respect of letters of credit issued as credit support
of obligations for borrowed money of Borrower or any Guarantor included in the
determination of Total Funded Debt) and (k) of the definition of Indebtedness.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Total
Funded Debt to EBITDA Ratio</u></b>&#148; means</font>, at any date of determination, the ratio of
Total Funded Debt divided by EBITDA for the four fiscal quarter period ending
on such date or, if such date is not the last day of a fiscal quarter, for the
immediately preceding four fiscal quarter period; <u>provided</u> that, for any
such determination, EBITDA shall be adjusted (i) to include, for the relevant
four fiscal quarter period, pro forma EBITDA in an amount reasonably
acceptable to the Administrative Agent respecting
any vessel or business acquisition for which debt is incurred and included in
Total Funded Debt and (ii) to exclude,
for the relevant four fiscal quarter period, pro forma EBITDA in an amount
reasonably acceptable to the Administrative Agent respecting any vessel or
business disposition.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Tow Boat</u></b>&#148; means Tow Boat Services
&amp; Management, Inc., a Hawaii corporation and a wholly-owned subsidiary of
Smith Maritime.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Tow Boat Mortgage</u></b>&#148; means the
Preferred Fleet Mortgage granted by Tow Boat to the Collateral Trustee over the
whole of the Tow Boat Pool Vessels, as the same may be amended, modified or
supplemented from time to time.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Tow Boat Pool Vessels</u></b>&#148; means the vessels
identified as owned by Tow Boat </font>(before giving effect to the Phase Two
Transactions) on <b>Schedule 1.01C</b></font>.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Applicable Percentage</u></b>&#148;
means, with respect to any Tranche A Lender, the percentage of the total
Tranche A Commitments represented by such Tranche A Lender&#146;s Tranche A
Commitment.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Availability Period</u></b>&#148;
means the period from and including the Effective Date to, but excluding, the
earlier of the Tranche A Maturity Date and the date of termination of the
Tranche A Commitments.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Commitment</u></b>&#148;
means, with respect to each Tranche A Lender, the commitment of such Tranche A
Lender to make Tranche A Loans hereunder, expressed as an amount representing
one hundred percent (100%) of the maximum aggregate amount of such Tranche A
Lender&#146;s Tranche A Credit Exposure hereunder, as such commitment may be
(a)&nbsp;reduced from time to time pursuant to Section&nbsp;2.06 hereof, (b)
increased from time to time pursuant to Section 2.17 hereof and
(c)&nbsp;reduced or increased from time to time pursuant to assignments by or
to such Tranche A Lender pursuant to Section&nbsp;10.07 hereof.&#160; The initial amount of each Tranche A Lender&#146;s
Tranche A Commitment is set forth (x)&nbsp;on <b>Schedule&nbsp;2.01</b>
or (y)&nbsp;in the Assignment and Acceptance pursuant to which such Tranche A
Lender shall have assumed its Tranche A Commitment, as applicable.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Tranche A
Commitment Fee</u></b>&#148; has the meaning set forth in Section 2.09(a).</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
C</font>redit Exposure</u></b>&#148; </font>means, with respect to any Tranche A Lender
at any time, the sum as of such time of (i) the outstanding principal balance
of such Tranche A Lender&#146;s Tranche A Loans, plus<i>  </i>(ii)
such Tranche A Lender&#146;s Letter of Credit Exposure.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Facility</u></b>&#148; means
the revolving facility in the aggregate amount outstanding at any time not to
exceed the Tranche A Maximum Amount with a sublimit for Letters of Credit in
the amount of Twenty Million Dollars ($20,000,000.00), as described in
Section&nbsp;2.02(c) hereof.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Lenders</u></b>&#148; </font>means the Persons listed on <b>Schedule 2.01</b> as having a &#147;<b>Tranche A
Commitment</b>&#148; and any other Person that shall have become a party
hereto as a Tranche A Lender pursuant to an Assignment and Acceptance, other
than any such Person that ceases to be a party hereto as a Tranche A Lender
pursuant to an Assignment and Acceptance.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Loans</u></b>&#148; has the
meaning assigned to such term in Section&nbsp;2.02(c) hereof and includes,
without limitation, all amounts debited to reimburse the L/C Issuer for
drawdowns against a Letter of Credit and related expenses provided at the
request of Borrower pursuant to Section&nbsp;2.14 hereof.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Maturity Date</u></b>&#148;
means August 14, 2014.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche A
</font>Maximum Amount</u></b>&#148;
means, with respect to the Tranche A Facility, One Hundred Seventy-five Million
Dollars ($175,000,000.00), as such amount may be increased in the aggregate in
accordance with Section 2.17 hereof or decreased in the aggregate in accordance
with Section 2.06.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Applicable Percentage</u></b>&#148;
means, with respect to any Tranche B Lender, the percentage of the total
Tranche B Commitments represented by such Tranche B Lender&#146;s Tranche B
Commitment.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Availability Period</u></b>&#148;
means the period from and including the Effective Date to, but excluding, the
earlier of the Tranche B Maturity Date and the date of termination of the
Tranche B Commitments.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Commitment</u></b>&#148;
means, with respect to each Tranche B Lender, the commitment of such Tranche B
Lender to make Tranche B Loans hereunder, expressed as an amount representing
one hundred percent (100%) of the maximum aggregate amount of such Tranche B
Lender&#146;s Tranche B Credit Exposure hereunder, as such commitment may be
(a)&nbsp;reduced from time to time pursuant to Section&nbsp;2.06 or 2.08
hereof, and (b)&nbsp;reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section&nbsp;10.07 hereof.&#160; The initial amount of each Tranche B Lender&#146;s
Commitment is set forth (x)&nbsp;on <b>Schedule&nbsp;2.01</b>
or (y)&nbsp;in the Assignment and Acceptance pursuant to which such Lender
shall have assumed its Tranche B Commitment, as applicable.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Tranche B
Commitment Fee</u></b>&#148; has the meaning set forth in Section 2.09(b).</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Tranche B Credit Exposure</u></b>&#148; </font>means, with respect to any Tranche B Lender
at any time, the outstanding principal balance of such Tranche B Lender&#146;s
Tranche B Loans.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Facility</u></b>&#148; means
the revolving facility in the aggregate amount outstanding at any time not to
exceed $45,000,000, as described in Section&nbsp;2.02(d) hereof.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Lenders</u></b>&#148; </font>means the Persons listed on <b>Schedule 2.01</b> as having a &#147;<b>Tranche B
Commitment</b>&#148; and any other Person that shall have become a party
hereto as a Tranche B Lender pursuant to an Assignment and Acceptance, other
than any such Person that ceases to be a party hereto as a Tranche B Lender
pursuant to an Assignment and Acceptance.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Loans</u></b>&#148; has the
meaning assigned to such term in Section&nbsp;2.02(d) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Maturity Date</u></b>&#148;
means August 12, 2008.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u><font style="font-weight:bold;">Tranche B
</font>Maximum Amount</u></b>&#148;
means, with respect to the Tranche B Facility, Forty-five Million Dollars
($45,000,000.00), as such amount may be decreased in the aggregate in accordance
with Section 2.06 or 2.08 hereof.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Transactions</u></b>&#148; means the execution,
delivery and performance by Borrower and Guarantors of this Agreement and the
other Loan Documents, the making of Loans and the use of the Proceeds thereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">UCC</u></b>&#148; means the Uniform Commercial Code
as the same may, from time to time, be enacted and in effect in the State of
New York; <u>provided</u> that to the extent that the UCC is used to define any
term herein or in any Loan Document and such term is defined differently&#160; in different Articles or Divisions of the
UCC, the definition of such term contained in Article&nbsp;or Division 9 shall
govern; <u>provided</u>, <u>further</u>, that in the event that, by reason or
mandatory provisions of law, any or all of the attachment, perfection or
priority of, or remedies with respect to Administrative Agent&#146;s or any Lender&#146;s
Lien on any Collateral is governed by the Uniform Commercial Code as enacted
and in effect in a jurisdiction other than the State of New York, the term &#147;<b><u style="font-weight:bold;">UCC</u></b>&#148; shall mean the Uniform
Commercial Code as enacted and in effect in such other jurisdiction solely for
purposes of the provisions thereof relating to such attachment, perfection,
priority or remedies and for purposes of definitions related to such
provisions.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Unreimbursed
Amount</u></b>&#148; has the meaning set forth in Section 2.14(e) hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><u style="font-weight:bold;">Withdrawal Liability</u></b>&#148; means liability
to a Multiemployer Plan as a result of a complete or partial withdrawal from
such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of
Title IV of ERISA.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
1.02</font></b><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Terms Generally</u></b>.</h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The definitions of terms
herein shall apply equally to the singular and plural forms of the terms
defined.&#160; Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.&#160; The words &#147;include&#148;, &#147;includes&#148;
and &#147;including&#148; shall be deemed to be followed by the phrase &#147;without
limitation&#148;.&#160; The word &#147;will&#148; shall be
construed to have the same meaning and effect as the word &#147;shall&#148;.&#160; Unless the context requires otherwise
(a)&nbsp;any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein), (b)&nbsp;any reference herein to any Person
shall be construed to include such Person&#146;s successors and assigns,
(c)&nbsp;the words &#147;herein&#148;, &#147;hereof&#148; and &#147;hereunder&#148;, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not
to any particular provision hereof, (d)&nbsp;all references herein to Articles,
Sections, Exhibits&nbsp;and Schedules shall be construed to refer to Articles
and Sections&nbsp;of, and Exhibits, Schedules and Annexes to, this Agreement,
and (e)&nbsp;the words &#147;asset&#148; and &#147;property&#148; shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
1.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Accounting
Terms; GAAP</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; <u>provided</u>
that, if Borrower notifies the Administrative Agent that Borrower requests an
amendment to any </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provision hereof to
eliminate the effect of any change occurring after the date hereof in GAAP or
in the application thereof on the operation of such provision (or if the
Administrative Agent notifies Borrower that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in
accordance herewith.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE II</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE LOANS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Commitments</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to the terms and conditions set forth herein, each Tranche A Lender agrees to
make Tranche A Loans to Borrower from time to time during the Tranche A
Availability Period in an aggregate principal amount that will not result in
such Tranche A Lender&#146;s Tranche A Credit Exposure exceeding such Tranche A
Lender&#146;s Tranche A Commitment.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to the terms and conditions set forth herein, each Tranche B Lender agrees to
make Tranche B Loans to Borrower from time to time during the Tranche B
Availability Period in an aggregate principal amount that will not result in
such Tranche B Lender&#146;s Tranche B Credit Exposure exceeding such Tranche B
Lender&#146;s Tranche B Commitment.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within
the foregoing limits and subject to the terms and conditions set forth herein,
Borrower may borrow, prepay and reborrow Loans.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This
Agreement shall be deemed to be a continuation of and an amendment and
restatement of the terms of the Original Loan Agreement and the loans and other
obligations outstanding under the Original Loan Agreement on the Effective
Date.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Loans</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Tranche A Loan shall be made by the Tranche A Lenders ratably in accordance
with their respective Tranche A Commitments.&#160;
The failure of any Tranche A Lender to make any Tranche A Loan required
to be made by it shall not relieve any other Tranche A Lender of its
obligations hereunder; <u>provided</u> that the Tranche A Commitments of
Tranche A Lenders are several and no Tranche A Lender shall be responsible for
any other Tranche A Lender&#146;s failure to make any Tranche A Loan as required.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Tranche B Loan shall be made by the Tranche B Lenders ratably in accordance
with their respective Tranche B Commitments.&#160;
The failure of any Tranche B Lender to make any Tranche B Loan required
to be made by it shall not relieve any other Tranche B Lender of its
obligations hereunder; <u>provided</u> that the Tranche B Commitments of
Tranche B </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lenders are several and no Tranche B Lender
shall be responsible for any other Tranche B Lender&#146;s failure to make any Tranche
B Loan as required.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to the terms and conditions contained herein and until the Tranche A Maturity
Date, the Tranche A Lenders shall make loans to Borrower on a revolving basis
in amounts requested by Borrower from time to time (the &#147;<b><u style="font-weight:bold;">Tranche A Loans</u></b>&#148; and each, a &#147;<b><u style="font-weight:bold;">Tranche A Loan</u></b>&#148;) in an aggregate amount
outstanding at any time not to exceed the amount permitted by this
Section&nbsp;2.02.&#160; Each Loan shall be in
an aggregate principal amount of not less than the Minimum Loan Amount or an
integral multiple of $100,000.00 in excess thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to the terms and conditions contained herein and until the Tranche B Maturity
Date, the Tranche B Lenders shall make loans to Borrower on a revolving basis
in amounts requested by Borrower from time to time (the &#147;<b><u style="font-weight:bold;">Tranche B Loans</u></b>&#148; and each, a &#147;<b><u style="font-weight:bold;">Tranche B Loan</u></b>&#148;) in an aggregate amount
outstanding at any time not to exceed the amount permitted by this
Section&nbsp;2.02.&#160; Each Loan shall be in
an aggregate principal amount of not less than the Minimum Loan Amount or an
integral multiple of $100,000.00 in excess thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subject
to availability, Borrower may request the L/C Issuer to issue trade, commercial
documentary letters of credit (each, a &#147;<b><u style="font-weight:bold;">Documentary
Letter of Credit</u></b>&#148;) and standby letters of credit (&#147;<b><u style="font-weight:bold;">Standby Letters of Credit</u></b>&#148;, and each, a
&#147;<b><u style="font-weight:bold;">Standby Letter of Credit</u></b>&#148;),
in Dollars or any Alternative Currency, during the period from the Effective
Date to the thirtieth Business Day prior to the Maturity Date; <u>provided</u>
that immediately after giving effect to the issuance of each Letter of Credit
(i) the Letter of Credit Exposure of all Tranche A Lenders would not exceed the
Letter of Credit Sublimit and (ii) the Tranche A Credit Exposure of all Tranche
A Lenders would not exceed the aggregate Tranche A Commitments of all Tranche A
Lenders.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The sum
of the aggregate principal amount of all Loans and the aggregate Letters of
Credit Exposure shall at no time exceed the lesser of (i) the Maximum Amount
and (ii)&nbsp;the Borrowing Base.&#160; The
Lenders shall have no obligation to make any Loan and the L/C Issuer shall have
no obligation to issue any Letter of Credit if, after giving effect to the
making of such Loan or the issuance of such Letter of Credit, the Revolving
Credit Exposure would exceed the lesser of (i) the Maximum Amount and (ii) the
Borrowing Base.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding
any other provision of this Agreement, (i) Borrower shall not be entitled to
request, or to elect to convert or continue, any (A) Tranche A Loan if the
Interest Period requested with respect thereto would end after the Tranche A
Maturity Date or (B) Tranche B Loan if the Interest Period requested with
respect thereto would end after the Tranche B Maturity Date, and (ii) Borrower
shall not be entitled to request the issuance of any Letter of Credit or any
renewal thereof which would expire after the Tranche A Maturity Date or
provides for a drawing thereunder after the Tranche A Maturity Date.</h3>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Interest</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Base Rate
Loans shall, in each case, bear interest at the Base Rate plus the Applicable
Margin.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>LIBOR
Loans shall, in each case, bear interest at the Adjusted LIBOR Rate for the
Interest Period in effect for such LIBOR Loan plus the Applicable Margin.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding
the foregoing, if an Event of Default has occurred and is continuing, then, so
long as such Event of Default is continuing, all principal of each Loan and
each fee and other amount then due and&#160;
payable by Borrower hereunder shall bear interest, after as well as
before judgment, at a rate per annum equal to (i) in the case of principal of
any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the
preceding paragraphs of this Section or (ii) in the case of any other amount,
2% plus the Base Rate plus the Applicable Margin for Base Rate Loans.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan, <u>provided</u> that (i) interest accrued pursuant to paragraph
(c) of this Section 2.03 shall be payable on demand, (ii) in the event of any
repayment or prepayment of any Loan, accrued interest on the principal amount
repaid or prepaid shall be payable on the date of such repayment or prepayment
and (iii) in the event of any conversion of any LIBOR Loan prior to the end of
the current Interest Period therefor, accrued interest on such LIBOR Loan shall
be payable on the effective date of such conversion.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
interest hereunder shall be computed on the basis of a year of 360 days for the
actual number of days elapsed (including the first day but excluding the last
day).&#160; The applicable Base Rate, Adjusted
LIBOR Rate or LIBOR shall be determined by the Administrative Agent, and such
determination shall be conclusive absent clearly demonstrable error.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Loan initially shall be of the type specified in the applicable Loan Request
and, in the case of a LIBOR Loan, shall have an initial Interest Period as
specified in such Loan Request.&#160;
Thereafter, Borrower may elect to convert such Loan to a different type
or to continue such Loan and, in the case of a LIBOR Loan, may elect Interest
Periods therefor, all as provided in this Section 2.03.&#160; Borrower may elect different options with
respect to different portions of the affected Loan, in which case each such
portion shall be allocated ratably among the Lenders.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To make
an election pursuant to this Section 2.03, Borrower shall notify the
Administrative Agent of such election by telephone by the time that a Loan
Request would be required under Section&nbsp;2.04 if Borrower were requesting a
Loan of the type resulting from such election to be made on the effective date
of such election.&#160; Each such interest
rate election made telephonically shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
interest rate election in a form approved by the Administrative Agent and
signed by Borrower.</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
telephonic and written interest rate election shall specify (i) the Loan to
which such interest rate election applies and, if different options are being
elected with respect to different portions thereof, the portions thereof to be
allocated to each resulting Loans (in which case the information to be
specified pursuant to clauses (iii) and (iv) of this paragraph shall be
specified for each resulting Loan); (ii) the effective date of the election
made pursuant to such interest rate election, which shall be a Business Day;
(iii) whether the resulting Loan is to be a Base Rate Loan or a LIBOR Loan; and
(iv) if the resulting Loan is a LIBOR Loan, the Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the term &#147;<b><u style="font-weight:bold;">Interest Period</u></b>&#148;.&#160; If any such interest rate election requests a
LIBOR Loan but does not specify an Interest Period, then Borrower shall be
deemed to have selected an Interest Period of one month&#146;s duration.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Promptly
following receipt of an interest rate election, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender&#146;s portion of each resulting
Loan.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If
Borrower fails to deliver a timely interest rate election with respect to any
LIBOR Loan prior to the end of the Interest Period applicable thereto, then,
unless such LIBOR Loan is repaid as provided herein at the end of such Interest
Period, such LIBOR Loan shall be converted to a Base Rate Loan at the end of
such Interest Period.&#160; Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required
Lenders, so notifies Borrower, then, so long as an Event of Default is
continuing, (i) no outstanding Loan may be converted to or continued as a LIBOR
Loan and (ii) unless repaid, each LIBOR Loan shall be converted to a Base Rate
Loan at the end of the Interest Period applicable thereto.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.04</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Requests
for Loans</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To request a Loan,
Borrower shall notify the Administrative Agent of such request by telephone (a)
in the case of any Base Rate Loan, not later than 11:30 a.m., New York City
time, on the same day of such proposed Loan, (b)&nbsp;in the case of any LIBOR
Loan, not later than 11:30&nbsp;a.m., New York City time, three (3) Business
Days before the date of such proposed Loan.&#160;
Each such telephonic Loan Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a Loan
Request in the form attached hereto as <b>Exhibit&nbsp;F
</b>and signed by Borrower.&#160; Each
such telephonic and written Loan Request shall specify the following
information in compliance with Section&nbsp;2.02 hereof:</font></p>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
aggregate amount of the requested Loan;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
date of such Loan, which shall be a Business Day;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>whether
such Loan is to be a Base Rate Loan or a LIBOR Loan;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>whether
such Loan is to be a Tranche A Loan or a Tranche B Loan;</h5>


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<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
location and number of Borrower&#146;s account to which funds are to be disbursed,
which shall comply with the requirements of Section&nbsp;2.05 hereof;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>whether
the proceeds of such Loan shall be used for (x) working capital purposes or (y)
vessel acquisition or capacity expansion purposes.</h5>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If no election as to the
type of Loan is specified, then the requested Loan shall be a Base Rate
Loan.&#160; If no Interest Period is specified
with respect to any requested LIBOR Loan, then Borrower shall be deemed to have
selected an Interest Period of one month&#146;s duration.&#160; Promptly following receipt of a Loan Request
in accordance with this Section, the Administrative Agent shall advise each
Lender of the details thereof and of the amount of such Lender&#146;s Loan to be
made in connection with such Loan Request.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.05</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Funding
of Loans</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds by 1:00 p.m., New York
City time, to the account of the Administrative Agent most recently designated
by it for such purpose by notice to the Lenders.&#160; The Administrative Agent will make such Loans
available to Borrower by promptly crediting or otherwise transferring the
amounts so received, in like funds, to an account of Borrower maintained with
the Administrative Agent and designated by Borrower in the applicable Loan
Request.</h3>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Loan that such Lender will not make available
to the Administrative Agent such Lender&#146;s share of such Loan, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section 2.05(a) and may, in reliance upon such
assumption, make available to Borrower a corresponding amount.&#160; In such event, if a Lender has not in fact
made its share of the applicable Loan available to the Administrative Agent,
then the applicable Lender and Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation or (ii) in
the case of Borrower, the interest rate that would be otherwise applicable to
such Loan.&#160; If such Lender pays such
amount to the Administrative Agent, then such amount shall constitute such
Lender&#146;s Loan.</p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.06</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination
and Reduction of Commitments</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Unless
previously terminated, the Tranche A Commitments shall terminate on the Tranche
A Maturity Date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Unless
previously terminated, the Tranche B Commitments shall terminate on the Tranche
B Maturity Date.</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
may at any time terminate, or from time to time reduce, the Tranche A
Commitments, <u>provided</u> that Borrower shall not terminate or reduce the
Tranche A Commitments if, after giving effect to any concurrent prepayment of
the Tranche A Loans in accordance with Section&nbsp;2.08, the sum of the
Tranche A Credit Exposures would exceed the total Tranche A Commitments.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
may at any time terminate, or from time to time reduce, the Tranche B
Commitments, <u>provided</u> that Borrower shall not terminate or reduce the
Tranche B Commitments if, after giving effect to any concurrent prepayment of
the Tranche B Loans in accordance with Section&nbsp;2.08, the sum of the
Tranche B Credit Exposures would exceed the total Tranche B Commitments.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
reduction of the Commitments hereunder shall be in an amount that is an
integral multiple of $1,000,000 and not less than $5,000,000.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
reduction of any of the Commitments hereunder shall be made ratably among the
Lenders in accordance with their respective Commitments.&#160; Borrower shall notify the Administrative
Agent of any election to terminate or reduce any of the Commitments under
Section 2.06(c) or Section 2.06(d) at least three (3) Business Days prior to
the effective date of such termination or reduction, specifying such election
and the effective date thereof.&#160; Promptly
following receipt of any notice, the Administrative Agent shall advise the
relevant Lenders of the contents thereof.&#160;
Each notice delivered by Borrower pursuant to this Section 2.06 shall be
irrevocable, <u>provided</u> that a notice of termination of any of the
Commitments delivered by Borrower may state that such notice is conditioned
upon the effectiveness of other credit facilities, in which case such notice
may be revoked by Borrower (by notice to the Administrative Agent on or prior
to the specified effective date) if such condition is not satisfied.&#160; Any termination or reduction of the
Commitments hereunder shall be permanent.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.07</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Repayment
of Loans; Evidence of Debt</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
hereby unconditionally promises to pay to the Administrative Agent for account
of each Tranche A Lender the then unpaid principal amount of each Tranche A
Loan on the Tranche A Maturity Date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
hereby unconditionally promises to pay to the Administrative Agent for account
of each Tranche B Lender the then unpaid principal amount of each Tranche B
Loan on the Tranche B Maturity Date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the debt of Borrower to such Lender resulting from each
Loan made by such Lender, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, whether such Loan is a Tranche A Loan or a
Tranche B Loan, whether such Loan is a Base Rate Loan or a LIBOR Loan and the
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">become due and payable from Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender&#146;s share thereof.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
entries made in the accounts maintained pursuant to Section 2.07(c) or 2.07(d)
be <i>prima facie</i> evidence of the
existence and amounts of the obligations recorded therein; <u>provided</u> that
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of Borrower
to repay the Loans and other Obligations in accordance with the terms of this
Agreement.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Loans made by any Lender may, upon request of such Lender, be evidenced by a
Note in the form attached hereto as <b>Exhibit&nbsp;A-1</b>,
in the case of Tranche A Loans, and by a Note in the form attached hereto as <b>Exhibit&nbsp;A-2</b>, in the case of Tranche B
Loans.&#160; In such event, Borrower shall
execute and deliver to such Lender a Note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns)
substantially in the form as attached hereto as <b>Exhibit A-1</b> or <b>A-2</b>,
as the case may be, and otherwise in form and substance acceptable such
Lender.&#160; Thereafter, the Loans evidenced
by such Note and interest thereon shall at all times (including after
assignment pursuant to Section&nbsp;10.07 hereof) be represented by one or more
Notes in such form payable to the order of the payee named therein.&#160; Each such Lender may enter Loans and
repayment made on any Note; <u>provided</u>, <u>however</u>, that failure to do
so shall not affect Borrower&#146;s obligations to repay all Loans made.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Together
with any repayment of Loans, Borrower shall advise the Administrative Agent of
the amount of such repayment (if any) to be allocated to Loans the proceeds of
which were used for working capital purposes by Borrower.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.08</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Prepayment
of Loans</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall have the right at any time and from time to time to prepay any Loan in
whole or in part, subject to the requirements of this Agreement, including,
without limitation, Section 2.11.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If as of
any date the aggregate Tranche A Credit Exposure of all Tranche A Lenders as of
such date exceeds the aggregate Tranche A Commitments, then in such event
Borrower shall immediately prepay the Tranche A Loans by an amount necessary to
eliminate any such excess (or if the Tranche A Loans have been paid in full and
the Letter of Credit Exposure of all Tranche A Lenders is greater than zero,
deposit into the Cash Collateral Account an amount equal to 105% of such
excess).</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If as of
any date the aggregate Tranche B Credit Exposure of all Tranche B Lenders as of
such date exceeds the aggregate Tranche B Commitments, then in such event
Borrower shall immediately prepay the Tranche B Loans by an amount necessary to
eliminate any such excess.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If as of
any date the aggregate Revolving Credit Exposure of all Lenders as of such date
exceeds the Borrowing Base, then in such event Borrower shall immediately </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">prepay the Loans by an amount necessary to
eliminate any such excess (or if the Loans have been paid in full and the
Letter of Credit Exposure of all Lenders is greater than zero, deposit into the
Cash Collateral Account an amount equal to 105% of such excess).</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within
fifteen (15) days after receipt by any Credit Party of Net Proceeds from any
Asset Disposition (other than Extraordinary Receipts the disposition of which
shall be governed by the terms of Section 2.08(f)), Borrower shall prepay <u>first</u>
the then outstanding Tranche B Loans until the Tranche B Loans shall have been
paid in full (and the Tranche B
Commitments shall be reduced in the amount of such prepayment), and <u>second</u>
the then outstanding Tranche A Loans, in an amount equal to the lesser of (i)
one-hundred percent (100%) of such Net Proceeds and (ii) the Fair Market Value
of the Pool Vessel which is the subject of such Asset Disposition (<u>provided</u>
that after the occurrence of an Event of Default, Borrower shall prepay the
then outstanding Loans in an amount equal to one-hundred percent (100%) of such
Net Proceeds); <u>provided</u> that so long as (A) the Tranche B Commitments
shall have been terminated and the Bridge Loan and the Tranche B Loans shall
have been paid in full and (B) no Event of Default shall exist, no prepayment
of the then outstanding Loans will be required under this Section 2.08(e) with
respect to Net Proceeds from Asset Dispositions, not exceeding $5,000,000 in
any Fiscal Year, to the extent that such Net Proceeds are reinvested (or are
committed, pursuant to a binding written commitment, to be reinvested) in new
or used vessels within twelve (12) months after receipt thereof; <u>provided</u>,
<u>further</u>, <u>however</u>, Borrower shall prepay the then outstanding
Loans (to be applied as set forth above) in an amount equal to (x) all Net
Proceeds from Asset Dispositions received in any Fiscal Year in excess of
$5,000,000, plus, without duplication, (y) all Net Proceeds not so reinvested
(or committed to be reinvested) within twelve (12) months after receipt thereof
(which amounts shall be repaid not later than the date that is twelve (12)
months after the date of receipt thereof).</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Within
fifteen (15) days after receipt of Net Proceeds by any Credit Party from any
Extraordinary Receipt received by or paid to or for the account of any Credit
Party and not otherwise included in Section 2.08(e), Borrower shall prepay <u>first</u>
the then outstanding Tranche B Loans until the Tranche B Loans shall have been
paid in full (and the Tranche B
Commitments shall be reduced in the amount of such prepayment), and <u>second</u>
the then outstanding Tranche A Loans in an amount equal to the lesser of (i)
one-hundred percent (100%) of such Net Proceeds and (ii) the Fair Market Value
of the Pool Vessel which is the subject of such Extraordinary Receipt (<u>provided</u>
that after the occurrence of an Event of Default, Borrower shall prepay the
then outstanding Loans (to be applied as set forth above) in an amount equal to
one-hundred percent (100%) of such Net Proceeds).</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the event and on each occasion that any
Net Proceeds are received by or on behalf of Borrower or any Subsidiary
Guarantor in respect of any Prepayment/Reduction Event (other than (x)
Net Proceeds from any Asset Disposition, the disposition of which shall be
governed by the terms of Section 2.08(e) and (y) Extraordinary Receipts the
disposition of which shall be governed by the terms of Section 2.08(f)), then, immediately after such Net Proceeds
are received and in any event within five (5) Business Days thereof, Borrower
shall prepay (<u>provided</u> that the Bridge Loans shall have been paid in
full) the Tranche B Loans (and the Tranche B Commitments shall be reduced in
the amount of such prepayment) in an amount equal to such Net Proceeds; <u>provided</u>, <u>however</u>, with respect to Net
Proceeds received in respect of a</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Prepayment/Reduction Event described in clause (b) of the definition
thereof (other than Extraordinary Receipts the disposition of which shall be
governed by Section 2.08(e)), so long as no Event of Default shall exist, </font>no
prepayment of the then outstanding Tranche B Loans will be required under this
Section 2.08(g) with respect to such Net Proceeds, to the extent that such Net
Proceeds are reinvested (or are committed, pursuant to a binding written
commitment, to be reinvested) in new or used vessels (or such other property or
assets the subject of such casualty or other insured damage) within twelve (12)
months after receipt thereof; <u>provided</u>, <u>further</u>, <u>however</u>,
Borrower shall prepay the then outstanding Tranche B Loans in an amount equal
to all such Net Proceeds not so reinvested (or committed to be reinvested) within
twelve (12) months after receipt thereof (which amounts shall be repaid not
later than the date that is twelve (12) months after the date of receipt
thereof).</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the
event of any partial reduction or termination of the Tranche A Commitments, then
(i) at or prior to the date of such reduction or termination, the
Administrative Agent shall notify Borrower and the Tranche A Lenders of the sum
of the Tranche A Credit Exposures after giving effect thereto and (ii) if such
sum would exceed the total Tranche A Commitments after giving effect to such
reduction or termination, then Borrower shall, on the date of such reduction or
termination, prepay the Tranche A Loans in an amount sufficient to eliminate
such excess; <u>provided</u><i>  </i>that if on the
date of such a reduction of the Tranche A Commitments, the aggregate Tranche A
Credit Exposure of all of the Tranche A Lenders exceeds the aggregate Tranche A
Commitments of all of the Tranche A Lenders after giving effect to such
reduction and, if the Tranche A Loans have been paid in full and the Letter of
Credit Exposure of all Tranche A Lenders is greater than zero, Borrower shall
deposit into the Cash Collateral Account an amount in cash which would cause
the balance on deposit in the Cash Collateral Account to equal the sum of the
Letter of Credit Exposure of all Tranche Lenders.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the
event of any partial reduction or termination of the Tranche B Commitments,
then (i) at or prior to the date of such reduction or termination, the
Administrative Agent shall notify Borrower and the Tranche B Lenders of the sum
of the Tranche B Credit Exposures after giving effect thereto and (ii) if such
sum would exceed the total Tranche B Commitments after giving effect to such
reduction or termination, then Borrower shall, on the date of such reduction or
termination, prepay the Tranche B Loans in an amount sufficient to eliminate
such excess.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall notify the Administrative Agent by telephone (confirmed by telecopy) of
any prepayment hereunder (i) in the case of prepayment of a LIBOR Loan, not
later than 11:00 a.m., New York City time, three Business Days before the date
of prepayment or (ii) in the case of prepayment of Base Rate Loan, not later
than 11:00 a.m., New York City time, one Business Day before the date of
prepayment.&#160; Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of
each Loan or portion thereof to be prepaid, <u>provided</u> that, if a notice
of prepayment is given in connection with a conditional notice of termination
of any of the Commitments as contemplated by Section&nbsp;2.06(c), then such
notice of prepayment may be revoked if such notice of termination is revoked in
accordance with Section&nbsp;2.06(c).&#160;
Promptly following receipt of any such notice relating to a Loan, the
Administrative Agent shall advise the relevant Lenders of the contents
thereof.&#160; Each partial </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">prepayment of any Loan shall be in an
integral multiple of $100,000 and not less than $500,000.&#160; Each prepayment shall be applied ratably to
the Loans included in such prepayment notice.&#160;
Prepayments shall be accompanied by accrued interest to the extent
required by Section&nbsp;2.03.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of Section 2.07(g) shall apply to any prepayment made under this
Section 2.08.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.09</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Fees</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall pay to the Administrative Agent, for the account of the Tranche A Lenders
in accordance with each Tranche A Lender&#146;s Tranche A Applicable Percentage, a
commitment fee (the &#147;<b><u style="font-weight:bold;">Tranche A Commitment
Fee</u></b>&#148;), during the period from the Effective Date through the
Tranche A Maturity Date at a rate per annum equal to the Commitment Fee Margin
on the average daily amount of the unused Tranche A Commitments of such Tranche
A Lender.&#160; The Tranche A Commitment Fee
shall be payable quarterly in arrears on the last day of each March, June,
September and December, commencing on the first such day to occur following the
Effective Date, on the date of any reduction in the Tranche A Commitments (to
the extent of such reduction) and on the Tranche A Maturity Date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall pay to the Administrative Agent, for the account of the Tranche B Lenders
in accordance with each Tranche B Lender&#146;s Tranche B Applicable Percentage, a
commitment fee (the &#147;<b><u style="font-weight:bold;">Tranche B Commitment
Fee</u></b>&#148;; and together with the Tranche A Commitment Fee, the &#147;<b><u style="font-weight:bold;">Commitment Fees</u></b>&#148;), during the period
from the Effective Date through the Tranche B Maturity Date at a rate per annum
equal to the Commitment Fee Margin on the average daily amount of the unused
Tranche B Commitments of such Tranche B Lender.&#160;
The Tranche B Commitment Fee shall be payable quarterly in arrears on
the last day of each March, June, September and December, commencing on the
first such day to occur following the Effective Date, on the date of any
reduction in the Tranche B Commitments (to the extent of such reduction) and on
the Tranche B Maturity Date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font> Borrower
shall pay to the Administrative Agent, for the account of the Tranche A Lenders
in accordance with each Tranche A Lender&#146;s Tranche A Applicable Percentage,
commissions (the &#147;<b><u style="font-weight:bold;">Letter of Credit Fees</u></b>&#148;)
with respect to Letters of Credit for the period from and including the date of
issuance of each Letter of Credit through the expiration date of such Letter of
Credit, at a rate per annum equal to<b>  </b>the
LIBOR Margin, in each case on the average daily maximum amount available under
any contingency to be drawn under such Letter of Credit.&#160; The Letter of Credit Fees shall be payable
quarterly in arrears on the last day of each March, June, September and
December, commencing on the first such day to occur following the Effective
Date, and on the date that the Tranche A Commitments shall expire.&#160; In addition to the Letter of Credit Fees,
Borrower shall pay to the L/C Issuer, for its own account, the L/C Issuer&#146;s
standard fees and charges customarily charged to customers similar to Borrower
with respect to any Letter of Credit.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall pay to the L/C Issuer, for its own account, a fronting fee in respect of
each Letter of Credit issued by the L/C Issuer hereunder (the &#147;<b><u style="font-weight:bold;">Fronting Fee</u></b>&#148;), computed at the rate of
0.125% per annum on the maximum daily amount available for drawing </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">under such Letter of Credit.&#160; Accrued Fronting Fees shall be payable
quarterly in arrears on the last day of each March, June, September and
December, commencing on the first such day to occur following the Effective
Date, and on the first day on or after the date that the Tranche A Commitments
shall expire upon which no Letters of Credit remain outstanding.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall pay to each Lender, the Administrative Agent, the Collateral Trustee and
the L/C Issuer, for its own account, fees and other amounts payable in the
amounts and at the times set forth in the letter agreement dated July 13, 2007
between K-Sea and KeyBank and as may otherwise be separately agreed upon
between Borrower and such Person.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Fees and
other amounts paid shall not be refundable under any circumstances.&#160; All fees shall be computed on the basis of a
360-day year for the actual number of days elapsed (including the first
day but excluding the last day).</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.10</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Increased
Costs; Illegality</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any
Change in Law shall:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>impose,
modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by,
any Lender, the Administrative Agent, the Collateral Trustee or the L/C Issuer
(except any such reserve requirement reflected in the Adjusted LIBOR Rate); or</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>impose
on any Lender, the Administrative Agent, the Collateral Trustee or the L/C Issuer
or the London interbank market any other condition affecting this Agreement,
any LIBOR Loans made by Lender, the Administrative Agent, the Collateral
Trustee or the L/C Issuer or any participation therein,</h5>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and
the result of any of the foregoing shall be to increase the cost to such Person
of making or maintaining any LIBOR Loan hereunder (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Person or to
reduce the amount of any sum received or receivable by such Person hereunder
(whether of principal, interest or otherwise), then Borrower will pay to such
Person such additional amount or amounts as will compensate such Person for
such additional costs incurred or reduction suffered.&#160; Failure to demand compensation pursuant to
this Section shall not constitute a waiver of such Person&#146;s right to demand
such compensation.</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any
Lender, the Administrative Agent, the Collateral Trustee or the L/C Issuer
determines that any Change in Law regarding capital requirements has or would
have the effect of reducing the rate of return on such Person&#146;s capital or on
the capital of such Person&#146;s holding company, if any, as a consequence of this
Agreement or the Loans made, Letters of Credit issued or commitments held
available by such Person to a level below that which such Person or such Person&#146;s
holding company could have achieved but for such Change in Law (taking into
consideration such Person&#146;s policies and the policies of such Person&#146;s holding
company with respect to capital adequacy), then from time to time Borrower will
pay to such Lender, the Administrative Agent, the Collateral Trustee or the L/C
Issuer such additional amount or amounts as will compensate such Person or such
Person&#146;s holding company for any such reduction suffered.</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A
certificate of any Lender, the Administrative Agent, the Collateral Trustee or
the L/C Issuer calculating and setting forth the amount or amounts necessary to
compensate such Person or its holding company, as the case may be, as specified
in Section 2.10(a) or 2.10(b)&nbsp;shall be delivered to Borrower and shall be
conclusive absent manifest error.&#160;
Borrower shall pay such Lender, the Administrative Agent, the Collateral
Trustee or the L/C Issuer, as the case may be, the amount shown as due on any
such certificate within 10 days after receipt thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Failure
or delay on the part of any Lender, the Administrative Agent, the Collateral
Trustee or the L/C Issuer to demand compensation pursuant to this
Section&nbsp;shall not constitute a waiver of such Person right to demand such
compensation; <u>provided</u> that Borrower shall not be required to compensate
any Lender, the Administrative Agent, the Collateral Trustee or the L/C Issuer
pursuant to this Section&nbsp;for any increased costs or reductions incurred
more than nine months prior to the date that such Person notifies Borrower of
the Change in Law giving rise to such increased costs or reductions and of such
Person&#146;s intention to claim compensation therefor; <u>provided</u>, <u>further</u>,
that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the nine-month period referred to above shall be extended to
include the period of retroactive effect thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notwithstanding
any other provision of this Agreement, if, after the date of this Agreement,
any Change in Law shall make it unlawful for any Lender to make or maintain any
LIBOR Loan or to give effect to its obligations as contemplated hereby with
respect to any LIBOR Loan, then, by written notice to Borrower and to the Administrative
Agent:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such
Lender may declare that LIBOR Loans will not thereafter (for the duration of
such unlawfulness) be made by such Lender hereunder (or be continued for
additional Interest Periods and Base Rate Loans will not thereafter (for such duration)
be converted into LIBOR Loans), whereupon any request for a LIBOR Loan or to
convert a Base Rate Loan to a LIBOR Loan or to continue a LIBOR Loan, as
applicable, for an additional Interest Period shall, as to such Lender only, be
deemed a request for a Base Rate Loan (or a request to continue a Base Rate
Loan as such for an additional Interest Period or to convert a LIBOR Loan into
a Base Rate Loan, as applicable), unless such declaration shall be subsequently
withdrawn; and</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such
Lender may require that all outstanding LIBOR Loans made by it be converted to
Base Rate Loans, in which event all such LIBOR Loans shall be automatically
converted to Base Loans, as of the effective date of such notice as provided in
the last sentence of this paragraph.</h5>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event any Lender
shall exercise its rights under clauses (i) or (ii) of this Section 2.10(e),
all payments and prepayments of principal that would otherwise have been
applied to repay the LIBOR Loans that would have been made by such Lender or the
converted LIBOR Loans of such Lender shall instead be applied to repay the Base
Rate Loans made by such Lender in lieu of, or resulting from the conversion of,
such LIBOR Loans, as applicable.&#160; For
purposes of this Section 2.10(e), a notice to Borrower by any Lender shall be
effective as to each LIBOR Loan</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">made by such Lender, if
lawful, on the last day of the Interest Period currently applicable to such
LIBOR Loan; in all other cases such notice shall be effective on the date of
receipt by Borrower.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.11</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Break
Funding Payments</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">In
the event of (a) the payment or prepayment (voluntary or otherwise) of any
principal of any LIBOR Loan other than on the last day of an Interest Period
applicable thereto (including as a result of an Event of Default), (b) the
conversion of any LIBOR Loan other than on the last day of the Interest Period
applicable thereto or (c) the failure to borrow, convert, continue or prepay
any LIBOR Loan on the date specified in any Loan Request or other notice
delivered pursuant Section 2.03 or 2.04 (regardless of whether such notice may
be revoked under Section&nbsp;2.06(f) and is revoked in accordance therewith),
then, in any such event, Borrower shall compensate each Lender for the loss,
cost and expense attributable to such event.&#160;
If such Loan Request or other notice relates to a LIBOR Loan, such loss,
cost or expense to any Lender shall be deemed to include an amount reasonably
determined by such Lender to be the excess, if any, of (i) the amount of
interest that would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted LIBOR Rate that would have been applicable
to such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest that would accrue on such
principal amount for such period at the interest rate that such Lender would in
good faith bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar
market.&#160; A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive
pursuant to this Section 2.11 shall be delivered to Borrower and shall be
conclusive absent manifest error.&#160;
Borrower shall pay such Lender the amount shown as due on any such
certificate within 15 days after receipt thereof</font>.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.12</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Taxes</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any and
all payments by or on account of any Obligation of any Credit Party hereunder
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; <u>provided</u> that if such Credit Party shall be required to
deduct any Indemnified Taxes or Other Taxes from such payments, then
(i)&nbsp;the sum payable shall be increased as necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, the Collateral Trustee,
each Lender or L/C Issuer (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii)&nbsp;such
Credit Party shall make such deductions, and (iii)&nbsp;such Credit Party shall
pay the full amount deducted to the relevant Governmental Authority in
accordance with Applicable Law.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In
addition, the Credit Parties shall pay any Other Taxes to the relevant
Governmental Authority in accordance with Applicable Law.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Credit Party shall indemnify the Administrative Agent, the Collateral Trustee,
the L/C Issuer and each Lender, within 10 days after written demand therefor,
for the </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, the Collateral Trustee, the L/C Issuer or such Lender, as the case may
be, and any penalties, interest and reasonable expenses arising therefrom or
with respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority.&#160; A certificate as to the
amount of such payment or liability, together with copies of available documentation
reflecting the imposition and amount of such Indemnified Taxes or Other Taxes
delivered to Borrower by a Lender, the Collateral Trustee, the L/C Issuer or by
the Administrative Agent on its own behalf or on behalf of a Lender, shall be
conclusive absent manifest error.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As soon
as practicable after any payment of Indemnified Taxes or Other Taxes by
Borrower to a Governmental Authority, Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which Borrower is located,
or any treaty to which such jurisdiction is a party, with respect to payments
under this Agreement shall deliver to Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by Applicable Law or
reasonably requested by Borrower, such properly completed and executed
documentation prescribed by Applicable Law as will permit such payments to be
made without withholding or at a reduced rate.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.13</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Payments
Generally; Pro Rata Treatment; Sharing of Set-offs</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Credit Party shall make each payment required to be made by it hereunder or
under any other Loan Document (whether of principal, interest or fees, or under
Section&nbsp;2.10, 2.11, 2.12 or 10.06 hereof, or otherwise) prior to 12:00 noon,
New York City time, on the date when due, in immediately available funds,
without set-off or counterclaim.&#160; Any
amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon.&#160; All such payments shall be made to the
Administrative Agent at its offices at 127 Public Square, Cleveland, Ohio
44114, Attn. KCIB Loan Services, except that payments pursuant to Sections&nbsp;2.10,
2.11, 2.12 and 10.06 hereof shall be made directly to the Persons entitled
thereto.&#160; The Administrative Agent shall
distribute any such payments received by it for account of any other Person to
the appropriate recipient promptly following receipt thereof.&#160; If any payment hereunder shall be due on a
day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such
extension.&#160; All payments hereunder shall
be made in Dollars.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(i)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>So long as (x)&nbsp;no
Default with respect to any payments due hereunder or under any of the
Obligations or (y)&nbsp;Event of Default shall have occurred and be continuing,
each payment made by Borrower received by the Administrative Agent pursuant to </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 2.13(a)&nbsp;shall be applied, <u>first</u>,
to any costs, expenses, fees or other amounts due under this Agreement or under
the other Loan Documents not constituting principal and interest due under the
Loans, <u>second</u>, to default interest at the rate provided for
Section&nbsp;2.03(c) hereof, <u>third</u>, to interest due on the unpaid
principal balance of each Loan, <u>fourth</u>, to the payment in full of
principal and all other Obligations which are then due and payable.&#160; If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts
of principal, interest and fees then due on any Loans, such funds shall be
applied, <u>first</u>, to pay interest and fees then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, <u>second</u>, to pay principal then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal then due to such parties, and <u>third</u>, all remaining
amounts, if any, shall be applied as provided in the first sentence of this
Section&nbsp;2.13(b)(i).</font></h3>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>So long as no
(x)&nbsp;Default with respect to any payments due hereunder or under any of the
Obligations or (y)&nbsp;Event of Default shall have occurred and be continuing,
any amounts received by Collateral Trustee, the Administrative Agent or any
Lender as a result of an Event of Loss with respect to any Pool Vessel
(including, without limitation, any payment of prepayment amounts under
Section&nbsp;2.08 hereof or insurance or condemnation proceeds) shall be
retained by the Lenders as cash collateral to the extent the aggregate Fair
Market Value of the remaining Pool Vessels is less than the greater of (A) $90,000,000.00
and (B) an amount such that the Asset Coverage Ratio after giving effect to
such Event of Loss is not less than 1.25:1.00, until such time as Borrower or a
Subsidiary Guarantor shall have granted a Lien on one or more Qualified Pool
Vessels to increase the aggregate Fair Market Value of the Pool Vessels to not
less than the greater of (A) $90,000,000.00 and (B) an amount such that the
Asset Coverage Ratio after giving effect to such pledge is not less than
1.25:1.00, at which time such amounts shall be applied, <u>first</u>, for
application against the Tranche B Loans at the end of any then current Interest
Period or Periods, <u>second</u>, for application against the Tranche A Loans
at the end of any then current Interest Period or Periods, <u>third</u>, to the
payment in full of all the Obligations which are then due and payable, and, <u>fourth</u>,
the balance, if any, after payment of the foregoing amounts, shall be paid by
the Lenders to Borrower (subject to the terms of the Bridge Loan Intercreditor
Agreement).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>So long as no
(x)&nbsp;Default with respect to any payments due hereunder or under any of the
Obligations or (y)&nbsp;Event of Default shall have occurred and be continuing,
all Proceeds from time to time received by the Collateral Trustee, the
Administrative Agent or any Lender shall be applied, <u>first</u>, to any
costs, expenses, fees or other amounts due under this Agreement and the other
Loan Documents not constituting principal and interest due under the Loans, <u>second</u>,
to the payment in full of all the other Obligations which are then due and
payable, <u>third</u>, if provision as to the application of such amounts is
made in this Agreement or any other Loan Document, the Collateral Trustee, the
Administrative Agent or such Lender shall, in its sole discretion, either apply
such payment to the purpose for which it was made or pay it to Borrower, which
shall so apply it and, <u>fourth</u>, if due to Borrower, the Collateral
Trustee, the Administrative Agent or such Lender shall pay such amounts to
Borrower.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All payments received and
amounts realized by the Lenders after a Default shall have occurred and be
continuing, but prior to the occurrence of an Event of Default </p>


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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or any acceleration of
any Loan or Note, all Proceeds or other amounts received in repayment of the
Collateral shall be held by the Collateral Trustee, the Administrative Agent or
any Lender as part of the Collateral until such time as no Defaults or Events
of Default shall be continuing hereunder (at which time such funds shall be
paid to Borrower) or until such funds are applied pursuant to Section&nbsp;8.02
hereof.&#160; The Collateral Trustee, the
Administrative Agent or any Lender shall apply the cash proceeds of Collateral
actually received by it from any sale, lease, foreclosure or other disposition
of the Collateral to payment <i>pro rata</i>
of the Obligations, in whole or in part (including reasonable attorneys&#146; fees
and legal expenses incurred by the Collateral Trustee, the Administrative Agent
or the Lenders with respect thereto or otherwise chargeable to Borrower).&#160; The Lenders shall apply all such receipts
ratably against Obligations under the Facilities.&#160; Borrower shall remain liable to the Lenders
for the payment of any deficiency together with interest at the highest rate
provided for herein and all costs and expenses of collection or enforcement,
including reasonable attorneys&#146; fees and legal expenses.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>After an Event of
Default shall have occurred and be continuing and after the Lenders
have&nbsp;declared all amounts outstanding hereunder to be due and payable
pursuant to Section&nbsp;8.02 hereof, all payments received and amounts
realized by any Lender (including, without limitation, as assignee from
Borrower or any Subsidiary Guarantor of any charter of any of the Pool
Vessels), as well as all payments or amounts then held by the Lenders as part
of the Collateral, shall be applied against the Obligations in such order and
such manner as the Lenders, in their sole discretion, may determine and as
otherwise provided in the other Loan Documents and the documents evidencing the
other Obligations, and the balance, if any, shall be paid by the Lenders to
Borrower.</p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any
Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of any principal of, or interest on, any of its Loans
resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and accrued interest thereon than the proportion
received by any other applicable Lender, then the applicable Lender receiving
such greater proportion shall purchase (for cash at face value) participations
in the Loans of other applicable Lenders to the extent necessary so that the
benefit of all such payments shall be shared by the applicable Lenders ratably
in accordance with the aggregate amount of principal of, and accrued interest
on, their respective Loans, <u>provided</u> that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored
to the extent of such recovery, without interest, and (ii) the provisions of
this paragraph shall not be construed to apply to any payment made by Borrower
pursuant to and in accordance with the express terms of this Agreement or any
payment obtained by a Lender as consideration for the assignment of or sale of
a participation in any of its Loans to any assignee or participant, other than
to Borrower or any Subsidiary or Affiliate thereof (as to which the provisions
of this paragraph shall apply).&#160; Each
Credit Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Credit Party rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Credit
Party in the amount of such participation.</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Unless
the Administrative Agent shall have received notice from a Credit Party prior
to the date on which any payment is due to the Administrative Agent for the
account of Lenders, the Administrative Agent, the L/C Issuer or the Collateral
Trustee hereunder that Borrower will not make such payment, the Administrative
Agent may assume that Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to Persons the
amount due.&#160; In such event, if Borrower
has not in fact made such payment, then each such Person severally agrees to
repay to the Administrative Agent forthwith on demand the amount so distributed
to such Person with interest thereon, for each day from and including the date
such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any
Lender shall fail to make any payment required to be made by it pursuant to
Section&nbsp;2.05, 2.13(d) or 2.14 hereof, then the Administrative Agent may,
in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for account of such
Lender to satisfy such Lender&#146;s obligations under such Sections&nbsp;until all
such unsatisfied obligations are fully paid.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.14</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Letters
of Credit</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
may request the L/C Issuer to issue letters of credit during the period from
the Effective Date to the thirtieth Business Day prior to the Tranche A
Maturity Date, <u>provided</u> that immediately after the issuance of each
Letter of Credit (i) the Letter of Credit Exposure of all Tranche A Lenders
would not exceed the Letter of Credit Sublimit, (ii) the aggregate Tranche A
Credit Exposure of all Tranche A Lenders would not exceed the aggregate Tranche
A Commitments of all Tranche A Lenders and (iii) the aggregate Revolving Credit
Exposure of all Lenders would not exceed the aggregate Commitments of all
Lenders.&#160; To request the issuance of a Letter
of Credit, Borrower shall notify the Administrative Agent and the L/C Issuer by
the delivery of a Credit Request in the form of <b>Exhibit G</b>, which shall be sent by facsimile and shall be
irrevocable (confirmed promptly, and in any event within five Business Days, by
the delivery to the Administrative Agent of a Credit Request manually signed by
Borrower), at least three Business Days prior to the requested date of
issuance, specifying (x)&nbsp;in the case of a Standby Letter of Credit,
(A)&nbsp;to the extent not previously delivered to the Administrative Agent,
copies of all agreements between Borrower and the beneficiary of such Standby
Letter of Credit pertaining to the issuance of such Standby Letter of Credit
and (B)&nbsp;a copy of the form of a Standby Letter of Credit which is attached
hereto as <b>Exhibit&nbsp;D</b>, and
(y)&nbsp;in the case of a Documentary Letter of Credit, a copy of the form of
the application for a documentary letter of credit which is attached hereto as <b>Exhibit&nbsp;E </b>and which may be amended by
the L/C Issuer from time to time, and in the case of each Letter of Credit, to
the extent not included in the foregoing:&#160;
(I) the beneficiary of such Letter of Credit, (II) Borrower&#146;s proposal
as to the conditions under which a drawing may be made under such Letter of
Credit and the documentation to be required in respect thereof, (III) the
maximum amount to be available under such Letter of Credit, (IV) the currency
such Letter of Credit shall be denominated in (which shall be Dollars or an
Alternative Currency then made available by the Administrative Agent and the
L/C Issuer) and (V) the requested dates of issuance and expiration.&#160; Such Credit Request </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">shall be accompanied by such other
certificates, documents (including a reimbursement agreement) and other
information as may be required by the L/C Issuer in accordance with its
customary procedures (all of the instruments documents, certificate,
applications and information described in the immediately preceding two
sentences, collectively, the &#147;<b><u style="font-weight:bold;">Letter of
Credit Documentation</u></b>&#148;).&#160;
Upon receipt of such Credit Request from Borrower, the Administrative
Agent shall promptly notify each Tranche A Lender thereof.&#160; Subject to the satisfaction of the terms and
conditions of this Agreement, the L/C Issuer shall issue each requested Letter
of Credit.&#160; In the event of any conflict
between the provisions of this Agreement and any Letter of Credit
Documentation, the provisions of this Agreement shall control.&#160; Each of the Credit Parties hereby
acknowledges and agrees that the Existing Letters of Credit are Letters of
Credit hereunder and the Tranche A Lenders hereby assume and are jointly and
severally obligated with respect to all Reimbursement Obligations related
thereto.&#160; Each of the Existing Letters of
Credit shall be deemed to be a &#147;<b><u style="font-weight:bold;">Letter of
Credit</u></b>&#148; for all purposes of this Agreement and the other Loan
Documents.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Letter of Credit shall be issued for the account of Borrower and in support of
obligations, contingent or otherwise, of Borrower or any Subsidiary arising in
the ordinary course of business.&#160; Each
Documentary Letter of Credit shall expire no later than 180 days from its date
of issuance.&#160; Each Standby Letter of
Credit shall either (A) have an expiration date which shall be not later than
the earlier of (x) 364 days after the date of issuance thereof or (y) fifteen
(15) Business Days before the Tranche A Maturity Date or (B) contain &#147;evergreen&#148;
provisions under which the such Standby Letter of Credit shall have an initial
expiration date of not more than one year from issuance, which expiration date
shall be deemed extended on an annual basis for successive periods of not more
than one year unless notice of termination is given by the L/C Issuer, <u>provided</u>,
<u>however</u>, no such Standby Letter of Credit shall have an expiration date
extending or be so extendable beyond the Tranche A Maturity Date.&#160; Any renewal, or any extension of any expiry
date, of a Letter of Credit shall constitute the issuance of such Letter of
Credit for all purposes of this Agreement.&#160;
In no event shall any Letter of Credit expire later than fifteen (15)
Business Days prior to the Tranche A Maturity Date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Immediately
upon the issuance of a Letter of Credit, the L/C Issuer shall be deemed to have
sold and transferred to each Tranche A Lender, and each Tranche A Lender shall
be deemed to have irrevocably and unconditionally purchased and received from
the L/C Issuer, without recourse or warranty, an undivided interest and
participation, to the extent of such Tranche A Lender&#146;s Tranche A Applicable
Percentage thereof, in such Letter of Credit and the obligations of Borrower
with respect thereto and any security therefor and any guaranty pertaining
thereto at any time existing.&#160; Each
Tranche A Lender, with respect to each Existing Letter of Credit, hereby purchases,
without recourse or warranty, an undivided interest and participation, to the
extent of such Tranche A Lender&#146;s Tranche A Applicable Percentage thereof, in
each such Existing Letter of Credit and the obligations of Borrower with
respect thereto and any such security therefor and guaranty pertaining thereto
at any time existing.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The L/C
Issuer shall promptly notify (i) each Tranche A Lender of the L/C Issuer&#146;s
receipt of a drawing request under any Letter of Credit, stating the amount of
such Tranche A Lender&#146;s Tranche A Applicable Percentage of such drawing request
and the date on which such request will be honored (the &#147;<b><u style="font-weight:bold;">Honor Date</u></b>&#148;) and (ii) the
Administrative Agent and </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower of the amount of such drawing
request and the Honor Date.&#160; Any failure
of the L/C Issuer to give or any delay in the L/C Issuer&#146;s giving any such
notice shall not release or diminish the obligations of Borrower or any Tranche
A Lender hereunder.&#160; In determining
whether to pay under any Letter of Credit, the L/C Issuer shall have no
obligation to any Tranche A Lender or Borrower other than to confirm that any
documents required to be delivered under such Letter of Credit have been
delivered and that they appear to comply on their face with the requirements of
such Letter of Credit.&#160; In the absence of
gross negligence or willful misconduct on the part of the L/C Issuer, the L/C
Issuer shall have no liability to any Tranche A Lender or Borrower for any
action taken or omitted to be taken by it under or in connection with any
Letter of Credit, including any such action negligently taken or negligently
omitted to be taken by it.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Not later
than 11:00 a.m., New York City time, on the Honor Date with respect to any
drawing under any Letter of Credit, Borrower shall reimburse the L/C Issuer
through the Administrative Agent in an amount equal to the amount of such
drawing and in the applicable currency.&#160;
If Borrower fails to so reimburse the L/C Issuer by such time, the
Administrative Agent shall promptly notify each Tranche A Lender of such
failure, the amount of the unreimbursed drawing (the &#147;<b><u style="font-weight:bold;">Unreimbursed Amount</u></b>&#148;), and such Tranche
A Lender&#146;s Tranche A Applicable Percentage thereof.&#160; In the case of any Letter of Credit
denominated in an Alternative Currency, the Unreimbursed Amount shall be
redenominated into Dollars and equal the Dollar Equivalent thereof, and the
Administrative Agent shall so notify the Tranche A Lenders in the notice
described in the preceding sentence. In such event, Borrower shall be deemed to
have requested a Base Rate Loan to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount (or the Dollar Equivalent thereof, if
applicable), without regard to the Minimum Loan Amount for the principal amount
of Base Rate Loans, but subject to the amount of the unutilized portion of the
aggregate Tranche A Commitments of the Tranche A Lenders and the conditions set
forth in Section 5.02 (other than the delivery of a Loan Request).&#160; Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section may be given by telephone if
immediately confirmed in writing; <u>provided</u> that the lack of such an
immediate confirmation shall not affect the conclusiveness or binding effect of
such notice.&#160; Each Tranche A Lender shall
promptly and unconditionally pay to the Administrative Agent, for the account
of the L/C Issuer, the amount of such Tranche A Lender&#146;s Tranche A Applicable
Percentage of such Unreimbursed Amount in Dollars in immediately available
funds on the Business Day the L/C Issuer so notifies such Tranche A Lender if
such notice is given prior to 12:00 Noon or, if such notice is given after
12:00 Noon, such Tranche A Lender shall make its Applicable Percentage of such
Unreimbursed Amount available to the L/C Issuer prior to 12:00 Noon on the next
succeeding Business Day.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If and
to the extent any Tranche A Lender shall not make such Tranche A Lender&#146;s
Tranche A Applicable Percentage of any Reimbursement Obligations available to
the L/C Issuer when due in accordance with Section 2.14(e), such Tranche A
Lender shall pay interest to the L/C Issuer on such unpaid amount for each day
from the date such payment is due until the date such amount is paid in full to
the L/C Issuer at the Federal Funds Effective Rate until (and including) the
third Business Day after the date due and thereafter at the Base Rate.&#160; The obligations of the Tranche A Lenders
under this Section 2.14(f) are several and not joint or joint and several, and
the failure of any Tranche A Lender to make available to the L/C Issuer its
Tranche A Applicable Percentage of any Reimbursement Obligations when due in
accordance </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with Section 2.14(e) shall not relieve any
other Tranche A Lender of its obligation hereunder to make its Tranche A
Applicable Percentage of such Reimbursement Obligations so available when so
due, but no Tranche A Lender shall be responsible for the failure of any other
Tranche A Lender to make such other Tranche A Lender&#146;s Tranche A Applicable
Percentage of such Reimbursement Obligations so available when so due.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Whenever
the L/C Issuer receives a payment of a Reimbursement Obligation from or on
behalf of Borrower as to which the L/C Issuer has received any payment from a
Tranche A Lender pursuant to Section 2.14(e), the L/C Issuer shall promptly pay
to such Tranche A Lender an amount equal to such Tranche A Lender&#146;s Tranche A
Applicable Percentage of such payment from or on behalf of Borrower.&#160; If any payment by or on behalf of Borrower
and received by the L/C Issuer with respect to any Letter of Credit is
rescinded or must otherwise be returned by the L/C Issuer for any reason and
the L/C Issuer has paid to any Tranche A Lender any portion thereof, each such
Tranche A Lender shall forthwith pay over to the L/C Issuer an amount equal to
such Tranche A Lender&#146;s Tranche A Applicable Percentage of the amount which
must be so returned by the L/C/Issuer.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Tranche A Lender, upon the demand of the L/C Issuer, shall reimburse the L/C
Issuer, to the extent the L/C Issuer has not been reimbursed by Borrower after
demand therefor, for the reasonable costs and expenses (including reasonable
attorneys&#146; fees) incurred by the L/C Issuer in connection with the collection
of amounts due under, and the preservation and enforcement of any rights
conferred by, any Letter of Credit or the performance of the L/C Issuer&#146;s
obligations as issuer of the Letters of Credit under this Agreement in respect
thereof, to the extent of such Tranche A Lender&#146;s Tranche A Applicable
Percentage of the amount of such costs and expenses <u>provided</u>, <u>however</u>,
that no Tranche A Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements to the extent the same result solely
from the gross negligence or willful misconduct of the L/C Issuer.&#160; The L/C Issuer shall refund any costs and
expenses reimbursed by such Tranche A Lender that are subsequently recovered
from Borrower in an amount equal to such Tranche A Lender&#146;s Tranche A Applicable
Percentage thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
obligation of Borrower to reimburse the L/C Issuer pursuant to this Section
2.14, and the obligation of each Tranche A Lender to make available to the L/C
Issuer the amounts set forth in this Section 2.14 shall be absolute,
unconditional and irrevocable under any and all circumstances, shall be made
without reduction for any set-off, counterclaim or other deduction of any
nature whatsoever, may not be terminated, suspended or delayed for any reason
whatsoever, shall not be subject to any qualification or exception and shall be
made in accordance with the terms and conditions of this Agreement under all
circumstances, including any of the following circumstances: (1) any lack of
validity or enforceability of this Agreement or any of the other Loan
Documents, (2) the existence of any claim, setoff, defense or other right which
Borrower may have at any time against a beneficiary named in a Letter of
Credit, any transferee of any Letter of Credit (or any Person for whom any such
transferee may be acting), the L/C Issuer, any Lender or any other Person,
whether in connection with this Agreement, any other Loan Document, any Letter
of Credit, the transactions contemplated in the Loan Documents or any unrelated
transactions (including any underlying transaction between </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower and the beneficiary named in any
such Letter of Credit), (3) any draft, certificate or any other document
presented under any Letter of Credit proving to be forged, fraudulent, invalid
or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect, (4) the surrender or impairment of any collateral
for the performance or observance of any of the terms of any of the Loan
Documents, (5) the occurrence of any Default or Event of Default or (6) any
other event or circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section, constitute a
legal or equitable discharge of, or provide a right of setoff against, Borrower&#146;s
or such Tranche A Lender&#146;s obligations hereunder.&#160; The L/C Issuer shall not have any liability
or responsibility by reason of or in connection with the issuance or transfer
of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the L/C Issuer. The
parties hereto expressly agree that, in the absence of gross negligence or
willful misconduct on the part of the L/C Issuer (as finally determined by a
court of competent jurisdiction), the L/C Issuer shall be deemed to have
exercised care in each such determination.&#160;
In furtherance of the foregoing and without limiting the generality
thereof, the parties agree that, with respect to documents presented which
appear on their face to be in substantial compliance with the terms of a Letter
of Credit, the L/C Issuer may, in its sole discretion, either accept and make
payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept
and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.15</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Cash
Collateral Account</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At, or at any time
before, the time Borrower shall be required to make a deposit into the Cash
Collateral Account, the Administrative Agent shall establish and maintain at
its offices at 575 Fifth Avenue, New York, New York, or such other office as
the Administrative Agent shall determine in its discretion, in the name of
Borrower but under the sole dominion and control of the Administrative Agent, a
cash collateral account (the &#147;<b><u style="font-weight:bold;">Cash Collateral Account</u></b>&#148;).&#160; Borrower may from time to time make one or
more deposits into the Cash Collateral Account and shall from time to time make
such deposits as are required by this Agreement.&#160; Borrower hereby pledges to the Administrative
Agent for the benefit of the Tranche A Lenders, the Administrative Agent, the
L/C Issuer and the Collateral Trustee, a Lien on and security interest in the
Cash Collateral Account and all sums at any time and from time to time on
deposit therein (the Cash Collateral Account, together with all sums on deposit
therein, being sometimes hereinafter collectively referred to as the &#147;<b><u style="font-weight:bold;">Cash Collateral</u></b>&#148;), as collateral
security for the prompt payment in full when due, whether at stated maturity,
by acceleration or otherwise, of the Obligations.&#160; Borrower shall, at any time and from time to
time at its expense, promptly execute and deliver to the Administrative Agent
any further instruments and documents, and take any further actions, that may
be necessary or that the Administrative Agent may reasonably request, in order
to perfect and protect any security interest granted or purported to be granted
hereby or to enable the Administrative Agent to exercise and enforce its rights
and remedies hereunder with respect to any Cash Collateral.&#160; Borrower shall not (i) sell or otherwise
dispose of any of the Cash </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Collateral, or (ii)
create or permit to exist any Lien upon any of the Cash Collateral.&#160; Borrower hereby authorizes the Administrative
Agent, promptly after each drawing under any Letter of Credit shall become due
and payable, to apply any and all cash on deposit in the Cash Collateral
Account towards the reimbursement of the L/C Issuer for all sums paid in
respect of such drawing, and all other Obligations which shall then be due and
owing.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.16</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Mitigation
Obligations; Replacement of Lenders</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any
Lender requests compensation under Section&nbsp;2.10 hereof, or if Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for account of any Lender pursuant to Section&nbsp;2.12 hereof, then
such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or Affiliates, if, in
the judgment of such Lender, such designation or assignment (i)&nbsp;would
eliminate or reduce amounts payable pursuant to Section&nbsp;2.10 or 2.12
hereof, as the case may be, in the future, and (ii)&nbsp;would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender.&#160; Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender
in connection with any such designation or assignment.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If any
Lender requests compensation under Section&nbsp;2.10 hereof, or if Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for account of any Lender pursuant to Section&nbsp;2.12 hereof, or if
any Lender defaults in its obligation to fund Loans hereunder, then Borrower
may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section&nbsp;10.07 hereof), all its interests, rights and obligations under
this Agreement to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); <u>provided</u>
that (i)&nbsp;Borrower shall have received the prior written consent of the
Administrative Agent and the L/C Issuer, which consent shall not unreasonably
be withheld, (ii)&nbsp;such Lender shall have received payment of an amount
equal to the outstanding principal of its Loans, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder, from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or
Borrower (in the case of all other amounts), and (iii)&nbsp;in the case of any
such assignment resulting from a claim for compensation under Section&nbsp;2.10
hereof or payments required to be made pursuant to Section&nbsp;2.12 hereof,
such assignment will result in a reduction in such compensation or
payments.&#160; A Lender shall not be required
to make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling Borrower to
require such assignment and delegation cease to apply.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
2.17</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Increase
of Commitments</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Provided
that (i) the Bridge Loan shall have repaid in full, (ii) the Tranche B Loans
shall have been paid in full and the Tranche B Commitments shall have been
terminated and (iii) no Default or Event of Default has occurred and is
continuing, Borrower may, at any time and from time to time after the Effective
Date, provide a written request to the Administrative Agent to increase the
Tranche A Commitments by up to an aggregate maximum </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">amount of Seventy-five Million Dollars
($75,000,000.00).&#160; Subject to the terms
hereof, Borrower may request to obtain such increase in the Tranche A
Commitments (&#147;<b><u style="font-weight:bold;">Proposed Increased
Commitment</u></b>&#148;) from Lenders or banks, financial institutions or
other entities other than the Lenders.&#160;
Borrower may offer the opportunity to provide all or a portion of the
Proposed Increased Commitment to (i) Tranche A Lenders and/or (ii) other banks,
financial institutions or other entities with the consent of the Administrative
Agent and the L/C Issuer (which consents of the Administrative Agent and the
L/C Issuer shall not be unreasonably withheld or delayed).&#160; If offered by Borrower, each Tranche A Lender
shall have the right, but not the obligation to commit to all or a portion of
its pro rata amount of the Proposed Increased Commitment based on the then
existing allocation of the Tranche A Commitments.&#160; As a precondition to such Proposed Increased
Commitment becoming effective, the Asset Coverage Ratio covenant shall be met
respecting such new Maximum Amount.&#160; Any
additional bank, financial institution or other entity which Borrower selects
to offer a portion of the increased aggregate Tranche A Commitments in
accordance with the terms hereof and which elects to become a party to this
Agreement and obtain a Tranche A Commitment in an amount so offered and
accepted by it pursuant to this Section&nbsp;shall execute such instruments,
documents and agreements as the Administrative Agent shall determine to cause
such bank, financial institution or other entity to become a Tranche A Lender
hereunder, whereupon such bank, financial institution or other entity shall become
a Tranche A Lender for all purposes and to the same extent as if originally a
party hereto and shall be bound by and entitled to the benefits of this
Agreement, <u>provided</u> that the Tranche A Commitment of any such bank,
financial institution or other entity shall be in an amount of not less than
$5,000,000.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon any
increase in the aggregate Tranche A Commitments pursuant to Section 2.17(a),
within five Business Days, in the case of any Base Rate Loans then outstanding,
and at the end of the then current Interest Period with respect thereto, in the
case of any LIBOR Loans then outstanding, Borrower shall prepay such Loans in
their entirety and, to the extent Borrower elects to do so and subject to the
conditions specified in Section 5.02, Borrower shall reborrow Tranche A Loans
from the Tranche A Lenders in proportion to their respective Tranche A
Commitments after giving effect to such increase, until such time as all
outstanding Tranche A Loans are held by the Tranche A Lenders in such
proportion.&#160; Effective upon such
increase, the amount of the participations held by each Tranche A Lender in
each Letter of Credit then outstanding shall be adjusted such that, after
giving effective to such adjustments, the Tranche A Lenders shall hold
participations in each such Letter of Credit in the proportion its respective
Tranche A Commitment bears to the aggregate Tranche A Commitments of all of the
Tranche A Lenders after giving effect to such increase.&#160; The Collateral Trustee and Borrower shall
execute and deliver such documents and instruments deemed reasonably necessary
by either of them to maintain the perfection and priority of the Liens on the
Collateral with respect to such increase in the aggregate Commitments.</h3>


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<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE III</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GRANT OF
SECURITY INTEREST</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
3.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Grant
of Security Interest</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To secure
the payment and performance in full of all Obligations, each of Borrower,
K-Sea&#160; LLC, Interisland, Tow Boat and
Diving hereby grants to the Collateral Trustee for the ratable benefit of the
Lenders a continuing security interest in and Lien upon, and a right of set-off
against, and each of Borrower, K-Sea&#160;
LLC, Interisland, Tow Boat and Diving hereby assigns and pledges to the
Collateral Trustee for the ratable benefit of the Lenders, all of the
Collateral owned by it or a Subsidiary Guarantor or in which such party has an
interest.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Collateral
means:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>each
of the Pool Vessels, together with all of its machinery, anchors, cables,
chains, rigging, tackle, fittings, tools, pumps, pumping equipment, gear, apparel,
furniture, appliances, equipment, spare and replacement parts and all other
appurtenances thereunto appertaining or belonging, whether now owned or
hereafter acquired by its respective owner and whether on board or not, and
also any and all additions, improvements and replacements made in or to such
Pool Vessels<b>  </b>or any part thereof
or in or to any equipment and appurtenances thereunder appertaining or
belonging and any and all charter hire, subcharter hire, freights, subfreights,
earnings, charters (including, without limitation, any rights of termination
thereof), to the extent set forth in the Earnings Assignment, insurance
proceeds and all other Proceeds paid or payable to Borrower or any Subsidiary
Guarantor on account of the use or employment of any Pool Vessel, being secured
by the Mortgage or any other mortgage to be executed and delivered by Borrower
or any Subsidiary Guarantor in favor of the Collateral Trustee or the Lenders
(each, a &#147;<b>Mortgage</b>&#148;); and</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all
records, computer tapes, discs, and other data however stored, ledger sheets,
correspondence, invoices, delivery receipts, documents and instruments related
to any of the foregoing.</h5>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is understood
and agreed that all of the Collateral which the Collateral Trustee, the
Administrative Agent, the Lenders or any of them may at any time acquire from
Borrower, the Subsidiary Guarantors or from any other source in connection with
the Obligations of the Credit Parties to Lenders, shall constitute Collateral
for each and every Obligation, without apportionment or designation as to
particular Obligations, and that all Obligations howsoever and whensoever
incurred, shall be secured by all Collateral howsoever and whensoever acquired,
and the Collateral Trustee, the Administrative Agent and the Lenders shall have
the right, in their sole discretion, to determine the order in which the
Collateral Trustee&#146;s, the Administrative Agent&#146;s and the Lenders&#146; rights in or
remedies against any Collateral are to be exercised and which type of
Collateral and which portions of Collateral are to be proceeded against and the
order of application of proceeds of Collateral as against particular
Obligations.</font></p>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
3.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Substitution
of Pool Vessel</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On reasonable notice from
Borrower, the Administrative Agent and the Lenders will permit the substitution
of a Pool Vessel with another vessel, <u>provided</u> that such substitute
vessel is subject to an Appraisal and that the Fair Market Value of the Pool
Vessels after such substitution remains equal to or greater than the greater of
(i) $90,000,000.00 and (ii) an Fair Market Value such that an Asset Coverage
Ratio of not less than 1.25 to 1.00 is maintained.&#160; Each substitute vessel shall be first made
subject to the Mortgage and the Assignments.&#160;
The costs of any such substitution, including, without limitation,
counsel fees, will be for Borrower&#146;s account, payable on demand.&#160; No Pool Vessel shall be valued as a
constituent part of an integrated tug/barge unit unless all components of such
unit are subject, or upon acceptance by Lenders would be subject, to the
Mortgage.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
3.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Fair
Market Value</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on
the most recently completed Appraisal of the Pool Vessels delivered to the
Administrative Agent, the aggregate Fair Market Value of the Pool Vessels shall
at all times be not less than the greater of (i) $90,000,000.00 and (ii) a Fair
Market Value such that an Asset Coverage Ratio of not less than 1.25 to 1.00 is
maintained, <u>provided</u> that in no event through the second anniversary of
the Effective Date shall more than five percent (5%) of the aggregate Fair
Market Value of the Pool Vessels be attributable to Non-Qualified Pool Vessels
and thereafter Non-Qualified Pool Vessels shall not be included in Pool
Vessels.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the
event any Appraisal delivered to the Administrative Agent performed at any time
after the Effective Date demonstrates that the aggregate Fair Market Value of
the Pool Vessels is less than the greater of (i) $90,000,000.00 and (ii) a Fair
Market Value such that an Asset Coverage Ratio of not less than 1.25 to 1.00 is
maintained, Borrower shall promptly, and in any event within 10 Business Days,
pledge additional vessels acceptable to the Administrative Agent, and the
Proceeds thereof, so that, after giving effect to such pledge of additional
vessels, the aggregate Fair Market Value of the Pool Vessels is equal to the
greater of (i) $90,000,000.00 and (ii) a Fair Market Value such that an Asset
Coverage Ratio of not less than 1.25 to 1.00 is maintained.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the
event any Appraisal delivered to the Administrative Agent performed at any time
after the Effective Date demonstrates that that the aggregate Fair Market Value
of the Pool Vessels exceeds the greater of (i) $90,000,000.00, and (ii) a Fair
Market Value such that an Asset Coverage Ratio of not less than 1.25 to 1.00 is
maintained, Borrower may, upon the delivery of a written request therefor
delivered to the Administrative Agent, request the consent of the Lenders
(which shall not be unreasonably withheld) to the release by the Collateral
Trustee, at Borrower&#146;s expense, of its Lien on one or more Pool Vessels (and
related Assignments) described in such request, commencing with Non-Qualified
Pool Vessels; <u>provided</u> that (i) (A) the Bridge Loan shall have been paid
in full and (B) the Tranche B Loans shall have been paid in full and the
Tranche B Commitments terminated and (ii) both before and after giving effect
to such release, (A) no Default or Event of Default shall have occurred and be
continuing or result therefrom, (B) the aggregate Fair Market Value of the Pool
Vessels shall be not less than the greater of (I) $90,000,000.00 and (II) a
Fair Market Value such that the Asset </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Coverage Ratio shall not be less than 1.25 to
1.00, and (C)&nbsp;Borrower shall be in compliance with the financial covenants
under Sections 7.01, 7.02, 7.03 and 7.04, and Borrower shall deliver to the
Administrative Agent prior to any such release a certificate in reasonable
detail evidencing compliance by Borrower with the foregoing conditions.&#160; Notwithstanding the foregoing, the value of
any vessel acquired, retrofitted or rebuilt with any Loan shall not be included
for purposes of determining the aggregate Fair Market Value of the Pool Vessels
as collateral while such vessel is under construction but may be included upon
completion of work and redelivery to Borrower.</font></h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE IV</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REPRESENTATIONS
AND WARRANTIES</font></b></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower hereby
represents and warrants to the Administrative Agent, the Lenders and the
Collateral Trustee that:</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Organization</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of Borrower and
K-Sea is a limited partnership duly organized, validly existing and in good
standing under the laws of Delaware.&#160;
Each of K-Sea LLC and Smith Maritime is a limited liability company duly
organized, validly existing and in good standing under the laws of
Delaware.&#160; K-Sea Hawaii is a corporation
duly organized, validly existing and in good standing under the laws of
Delaware.&#160; As of the Effective Date
(without giving effect to the Phase Two Transaction), each of Interisland, Tow
Boat and Diving is a corporation duly organized, validly existing and in good
standing under the laws of Hawaii.&#160; Upon
the consummation of the Phase Two Transactions, each of Interisland, Tow Boat
and Diving will be a limited liability company duly organized, validly existing
and in good standing under the laws of Hawaii.&#160;
Each of Borrower, K-Sea and each Subsidiary Guarantor has the necessary
right, power and authority to own its respective assets and to transact the
business in which it is engaged, and is duly qualified to do business in each
jurisdiction where such qualification is legally required and in each
jurisdiction where the failure to qualify would affect the enforceability of
the Loan Documents or otherwise adversely affect the Collateral or Borrower&#146;s
or K-Sea&#146;s or any Subsidiary Guarantor&#146;s ability to perform its respective
obligations under any of the Loan Documents.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Power
and Authority</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of Borrower, K-Sea
and each Subsidiary Guarantor has full power, authority and legal right to
execute and deliver this Agreement, the Mortgage to which it is a party, the
Mortgage Assumption to which it is a party, the Assignments to which it is a
party and each other Loan Document to which it is a party, and to perform its
obligations hereunder and thereunder.&#160;
Borrower has full power, authority and legal right to make and deliver
the Notes, to borrow hereunder and Borrower and each Subsidiary Guarantor has
full power, authority and legal right to grant the security interests created
by this Agreement and the Mortgage to which it is a party or which it shall
have assumed pursuant to the Mortgage Assumption to which it is a party.&#160; This Agreement and the other Loan Documents
have been duly executed and delivered by the Credit Parties party thereto and
each constitutes a legal, valid and binding obligation of such </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Credit Party, enforceable
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors&#146; rights generally
and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Governmental
Approvals; No Conflicts</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The transactions
contemplated by this Agreement and the Loan Documents (a)&nbsp;do not require
any consent or approval of, registration or filing with, or any other action
by, any Governmental Authority, except such as have been obtained or made and
are in full force and effect, or such that will be timely obtained or made in
connection with the Phase Two Transactions and will, at the time of consummation
of the Phase Two Transactions, be in full force and effect, (b)&nbsp;do not
require the consent of any other Person (including, without limitation, any
partner, stockholder, trustee or holder of Indebtedness), (c)&nbsp;will not
violate any Applicable Law or regulation or the charter, by-laws or other
organizational documents of Borrower or any other Credit Party or any order of
any Governmental Authority, (d)&nbsp;will not violate or result in a default
under any indenture, agreement or other instrument binding upon Borrower or any
other Credit Party or their respective assets, or give rise to a right
thereunder to require any payment to be made by Borrower or any other Credit
Party, and (e)&nbsp;except for the Lien in favor of the Administrative Agent or
the Collateral Trustee granted hereby or pursuant to any other Loan Document,
will not result in the creation or imposition of any Lien on any asset of
Borrower or any other Credit Party.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.04</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Financial
Condition; No Material Adverse Change</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
has heretofore furnished to the Administrative Agent and the Lenders Financial
Statements (i)&nbsp;as of and for the year ended June&nbsp;30, 2006, reported
on by PricewaterhouseCoopers LLP, independent public accountants, and
(ii)&nbsp;as of and for the succeeding fiscal quarters ended September&nbsp;30,
2006, December 31, 2006 and March 31, 2007 certified by the applicable
Financial Officer, which Financial Statements present fairly, in all material
respects the financial position and results of operations and cash flows as of
such dates and for such periods in accordance with GAAP, consistently applied,
subject to year-end audit adjustments and the absence of footnotes in the case
of Financial Statements referred to in clause (b)(ii) above.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Since
June 30, 2006, there has been no material adverse change in the business,
assets, operations or condition, financial or otherwise, of K-Sea and its
consolidated Affiliates (including, without limitation, Borrower and the
Subsidiary Guarantors) taken as a whole.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.05</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Litigation</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There are no actions,
suits, investigations or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of Borrower,
threatened against or affecting Borrower or any other Credit Party or any of
the Collateral (i)&nbsp;which, if adversely </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">determined, could
reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect, or (ii)&nbsp;that involve this Agreement or the
transactions contemplated hereby.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.06</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Environmental
Condition</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as identified on <b>Schedule&nbsp;4.06</b> hereto, none of Borrower&#146;s nor any of its
Subsidiaries&#146; properties or assets has ever been designated or identified in
any manner pursuant to any Environmental Law (including, without limitation,
OPA 90) as a Hazardous Waste disposal site, or a candidate for closure pursuant
to any Environmental Law, which designation or identification could reasonably
be expected to have a Material Adverse Effect.&#160;
No Lien arising under any Environmental Law has attached to any revenues
or to any of the Pool Vessels or any real or personal property owned by
Borrower or any of its Subsidiaries.&#160;
Neither Borrower nor any of its Subsidiaries has received a summons,
citation, notice, or directive from the United States Environmental Protection
Agency, the United States Coast Guard or any other federal or state
governmental agency regarding any action or omission by Borrower or any of its
Subsidiaries resulting in the releasing, or otherwise exposing of Hazardous
Waste into the environment, which notice could reasonably be expected to have a
Material Adverse Effect.&#160; Borrower and
its Subsidiaries (a)&nbsp;are in compliance (in all material respects) with all
Environmental Laws, including, but not limited to, all statutes, regulations,
ordinances and other legal requirements pertaining to the production, storage,
handling, treatment, release, transportation or disposal of any Hazardous
Waste, and (b)&nbsp;will obtain, maintain and/or comply with any permit,
license or other approval required under any Environmental Law.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.07</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Compliance
with Laws and Agreements</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of Borrower and its
Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.&#160; No Default has occurred and is continuing.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.08</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Investment
Company Status</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither Borrower nor any
of its Subsidiaries is&nbsp;an &#147;investment company&#148; as defined in, or subject
to regulation under, the Investment Company Act of 1940.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.09</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Taxes</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Credit Party has
timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except (a)&nbsp;Taxes that are being contested in good faith by
appropriate proceedings and for which such Credit Party has set aside on its
books adequate reserves, or (b)&nbsp;to the extent that the failure to do so
could not reasonably be expected to result in a Material Adverse Effect.&#160; The charges, accruals and reserves on the
books of Borrower in respect of Taxes for all open years, and for the current
fiscal year, make adequate provision for all unpaid Tax liabilities for such
periods.</font></p>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.10</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>ERISA</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No ERISA Event has
occurred or is reasonably expected to occur that, when taken together with all
other such ERISA Events for which liability is reasonably expected to occur,
could reasonably be expected to result in a Material Adverse Effect.&#160; The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No.&nbsp;87) did not, as of the
date of the most recent Financial Statements reflecting such amounts, exceed
the fair market value of the assets of such Plan.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.11</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Disclosure</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">None of the reports,
Financial Statements, certificates or other information furnished by or on
behalf of Borrower to the Administrative Agent or any Lender in connection with
the negotiation of this Agreement or the other Loan Documents or delivered
hereunder or thereunder (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; <u>provided</u> that,
with respect to projected financial information, Borrower represents only that
such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.&#160; There is no
fact known to Borrower that could have a Material Adverse Effect that has not
been disclosed herein or in a report, financial statement, exhibit, schedule,
disclosure letter or other writing furnished to the Administrative Agent or the
Lenders for use in connection with the transactions contemplated hereby.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.12</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Other Name</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower has not changed
its name nor has done business in any name other than that set forth in the
introductory paragraph of this Agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.13</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Title</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower and the
Subsidiary Guarantors have and at all times will defend and continue to have
good and marketable title to all of the Collateral, free and clear of all
Liens, security interests, claims or encumbrances of any kind whatsoever
subject only to (i) Permitted Liens and (ii) in the event such Liens are
granted to secure the Bridge Loan pursuant to the terms of the Bridge Loan
Agreement, Permitted Bridge Loan Liens.&#160;
The Borrower Pool Vessels are documented in the name of Borrower with
the United States Coast Guard National Vessel Documentation Center in Falling
Waters, West Virginia.&#160; The K-Sea LLC
Pool Vessels are (or, upon consummation of the Phase Two Transactions, will be)
documented in the name of K-Sea LLC with the United States Coast Guard National
Vessel Documentation Center in Falling Waters, West Virginia.&#160; Upon consummation of the Phase Two
Transactions, the Smith Maritime Vessels will be documented in the name of
Smith Maritime with the United States Coast Guard National Vessel Documentation
Center in Falling Waters, West Virginia.&#160;
Upon consummation of the Phase Two Transactions, the K-Sea Hawaii Pool
Vessels will be documented in the name of K-Sea Hawaii with the United States
Coast Guard National Vessel Documentation Center in </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Falling Waters, West
Virginia.&#160; The Interisland Pool Vessels
are documented in the name of Interisland with the United States Coast Guard
National Vessel Documentation Center in Falling Waters, West Virginia.&#160; The Tow Boat Pool Vessels are documented in
the name of Tow Boat with the United States Coast Guard National Vessel
Documentation Center in Falling Waters, West Virginia.&#160; The Diving Pool Vessel is documented in the
name of Diving with the United States Coast Guard National Vessel Documentation
Center in Falling Waters, West Virginia.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.14</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Lenders&#146;
Security Interest</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of the Effective Date,
the Collateral Trustee shall have a legal, valid and continuing first preferred
ship mortgage (as amended, supplemented or otherwise modified from time to
time) over the whole of, and a perfected first lien on and security interest
in, the Pool Vessels, and the Administrative Agent shall have a perfected first
lien on and security interest in the remaining Collateral subject only to
Permitted Liens and all taxes, fees and other charges in connection therewith
shall have been duly paid.&#160; There are no
demise charters in effect on any Pool Vessels other than the charters
identified on <b>Schedule&nbsp;4.14</b>.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.15</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Citizenship</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower
and each Subsidiary Guarantor is a citizen of the United States of America as
defined in Chapter 505 of Title 46, United States Code, duly qualified to
engage in the coastwise trade and in foreign commerce of the United States of
America, and shall remain such a citizen while any Loan remains outstanding and
during the life of the Mortgage.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.16</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Vessels</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Set forth
on <b>Schedule 1.01A</b> is a complete
and accurate list, as of the Effective Date, of all Pool Vessels, showing
(after giving effect to the Phase Two Transactions) with respect to each such
Pool Vessel the following:&#160; (i) the name
of each Pool Vessel and (ii)&nbsp;the name of the Registered Owner of such Pool
Vessel.&#160; Set forth on <b>Schedule 1.01C</b> is a complete and accurate
list, as of the Effective Date, of all Phase Two Pool Vessels, showing with
respect to each such Phase Two Pool Vessel the following:&#160; (i) the name of such Phase Two Pool Vessel
and (ii) the name of (A) the Registered Owner of such Phase Two Pool Vessel
(prior to giving effect to the Phase Two Transactions) and (B) the Registered
Owner of such Phase Two Vessel after giving effect to the Phase Two
Transactions.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each such
Pool Vessel identified on <b>Schedule 1.01A</b>
is:&#160; (i)&nbsp;to the extent required in
order to operate in the service in which such Pool Vessel is operating,
classified in the highest classification for vessels of the same age and type
in the American Bureau of Shipping required to be maintained in order to
operate in such service and is in class without recommendation (except for
recommendations which, when aggregated with recommendations for all Pool
Vessels, could not reasonably be expected to have a Material Adverse Effect);
(ii)&nbsp;documented under the laws of the United States to permit such Pool
Vessel to operate in the coastwise trade; (iii)&nbsp;covered by hull and
machinery and protection and indemnity insurance in accordance with the
requirements of the Mortgage, if any, covering such Pool Vessel, and otherwise
reasonably satisfactory to the Administrative Agent; and (iv)&nbsp;to the
extent applicable, </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">subject to a valid certificate of inspection
issued by the United States Coast Guard, each such certificate of inspection is
in full force and effect without recommendation (except for recommendations
which, when aggregated with recommendations for all Pool Vessels, could not
reasonably be expected to have a Material Adverse Effect).</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
information listed on each certificate of the American Bureau of Shipping
required to be delivered pursuant to Section 5.01(g)(iii)(G) or 5.01(f)(iv)(F)
hereof<b>  </b>with respect to each Pool
Vessel confirming that such Pool Vessel is in such class without material
recommendation, as well as the information listed on each ABS Database Printout
is true, correct and complete, in all material respects, as of the date hereof.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.17</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Government
Consents for Conduct of Business</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Credit Party has,
and is in good standing with respect to, all approvals, permits, licenses,
consents, authorizations, franchises, certificates, and inspections of all
Governmental Authority, that are necessary for a Credit Party to continue to
conduct business and own, use, operate, and maintain its property and assets as
heretofore conducted, owned, used, operated, and maintained which, if not
obtained (whether directly or by lawful and effective assignment) or not
maintained in good standing, could reasonably be expected to have a Material
Adverse Effect.&#160; No such approval,
permit, license, consent, authorization, franchise, or certificate is
conditioned or limited any more so than as is generally the case with respect
to Persons engaged in the same or similar lines of business.&#160; Each such approval, permit, license, consent,
authorization, franchise, or certificate was duly and validly granted or
issued, is in full force and effect, and, as of the Effective Date, neither has
been, nor has been threatened to be, amended, modified, suspended, rescinded,
revoked, forfeited, or assigned.&#160;
Further, as of the Effective Date, no condition(s) exist(s) or event(s)
has (have) occurred that, with the giving of notice or lapse of time or both,
could result in the amendment, modification, suspension, rescission,
revocation, forfeiture, or non-renewal of any such approval, permit, license,
consent, authorization, franchise, or certificate.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.18</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Federal
Reserve Regulations</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither
Borrower nor any of the Subsidiaries are engaged principally, or as one of
their important activities, in the business of extending credit for the purpose
of buying or carrying margin stock (as defined in Regulation U of the Board as
from time to time in effect).</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No part
of the proceeds of any Loan will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, to purchase, acquire or carry
any Margin Stock or for any purpose that entails a violation of, or that is
inconsistent with, the provisions of the regulations of the Board, including
Regulation T, U or X.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.19</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>The
Smith /Sirius Acquisition</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower has heretofore
delivered to the Administrative Agent true, correct and complete copies of the
Smith/Sirius Acquisition Documents.&#160;
Borrower has, on the Effective Date, consummated the Smith/Sirius
Acquisition in all material respects pursuant to the Smith /Sirius Acquisition
Documents, and the Smith/Sirius Acquisition Documents set forth the entire </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">agreement among the
parties thereto with respect to the subject matter thereof.&#160; No party to any of the Smith/Sirius
Acquisition Documents has waived the fulfillment of any material condition
precedent set forth therein to the consummation of the Smith/Sirius
Acquisition, no party has failed to perform any of its material obligations
thereunder or under any instrument or document executed and delivered in
connection therewith, and nothing has come to the attention of Borrower that
would cause it to believe that any of the representations or warranties of
Smith/Sirius Seller contained in the Smith/Sirius Acquisition Documents was
false or misleading in any material respect when made or when reaffirmed on the
Effective Date.&#160; No consent or approval,
authorization or declaration of any governmental authority, bureau or agency,
is or will be required in connection with the Smith/Sirius Acquisition
Transactions, except for consents that have been obtained prior to the
Effective Date.&#160; Neither the execution
and delivery of the Smith/Sirius Acquisition Documents, nor the performance of
Borrower&#146;s obligations thereunder, will violate any provision of law or will
conflict with or result in a breach of, or create (with or without the giving
of notice or lapse of time, or both) a default under, any material agreement to
which Borrower is a party or by which it is bound or any of its assets is
affected.&#160; Borrower or a Subsidiary of
Borrower has acquired by virtue of the consummation of the Smith/Sirius
Acquisition Transactions and now has good and marketable title to the assets
and properties of the &#147;Subject Companies&#148; (as defined in the Smith Acquisition
Agreement), including, without limitation, the &#147;Vessels&#148; (as defined in the
Smith Acquisition Agreement) and K-Sea LLC has acquired by virtue of the
consummation of Smith/Sirius Acquisition Transactions and now has good and
marketable title to assets and properties of Sirius Maritime, LLC, including,
without limitation, the &#147;Vessels&#148; (as defined in the Sirius Acquisition
Agreement), except, in each case (i)&nbsp;for Permitted Liens, (ii) for the
Liens in favor of Bank of America, N.A. described on <b>Schedule
7.05</b> and (iii) for the Liens created and granted by the Loan
Documents.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
4.20</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Phase
Two Transactions</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After giving effect to
the consummation of the Phase Two Transactions:</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>K-Sea LLC
will be the sole owner of the K-Sea LLC Phase Two Pool Vessels, free and clear
of all Liens, security interests, claims or encumbrances of any kind
whatsoever, subject only to (i) Permitted Liens, (ii) the Liens of the
Interisland I Mortgage (as assumed by K-Sea LLC) and (iii) in the event such
Liens are granted to secure the Bridge Loan pursuant to the terms of the Bridge
Loan Agreement, Permitted Bridge Loan Liens.&#160;
The K-Sea LLC Phase Two Pool Vessels will be documented in the name of
K-Sea LLC with the United States Coast Guard National Vessel Documentation
Center in Falling Waters, West Virginia.&#160;
K-Sea LLC will have assumed all of the obligations and liabilities of
Interisland under the Interisland I Mortgage pursuant to the K-Sea LLC Mortgage
Assumption and the Interisland I Mortgage will constitute a legal, valid and
binding obligation of K-Sea LLC, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors&#146; rights generally and subject to general
principals of equity, regardless of whether considered in proceedings in equity
or at law.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>K-Sea
Hawaii will be the sole owner of the K-Sea Hawaii Phase Two Pool Vessels, free
and clear of all Liens, security interests, claims or encumbrances of any kind
whatsoever, subject only to (i) Permitted Liens, (ii) the Liens of the
Interisland II Mortgage (as </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">assumed by K-Sea Hawaii) and (iii) in the
event such Liens are granted to secure the Bridge Loan pursuant to the terms of
the Bridge Loan Agreement, Permitted Bridge Loan Liens.&#160; The K-Sea Hawaii Phase Two Pool Vessels will
be documented in the name of K-Sea Hawaii with the United States Coast Guard
National Vessel Documentation Center in Falling Waters, West Virginia.&#160; K-Sea Hawaii will have assumed all of the
obligations and liabilities of Interisland under the Interisland II Mortgage
pursuant to the K-Sea Hawaii Mortgage Assumption and the Interisland II
Mortgage will constitute a legal, valid and binding obligation of K-Sea Hawaii,
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors&#146;
rights generally and subject to general principals of equity, regardless of
whether considered in proceedings in equity or at law.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Smith
Maritime will be the sole owner of the Smith Maritime Phase Two Pool Vessels,
free and clear of all Liens, security interests, claims or encumbrances of any
kind whatsoever, subject only to (i) Permitted Liens, (ii) the Liens of the
Interisland III Mortgage, the Tow Boat Mortgage and the Diving Mortgage (in
each case as assumed by Smith Maritime) and (iii) in the event such Liens are
granted to secure the Bridge Loan pursuant to the terms of the Bridge Loan
Agreement, Permitted Bridge Loan Liens.&#160;
The Smith Maritime Phase Two Pool Vessels will be documented in the name
of Smith Maritime with the United States Coast Guard National Vessel
Documentation Center in Falling Waters, West Virginia.&#160; Smith Maritime will have assumed all of the
obligations and liabilities of (i) Interisland under the Interisland III
Mortgage, (ii) Tow Boat under the Tow Boat Mortgage and (iii) Diving under the
Diving Mortgage, and each of the Interisland III Mortgage, the Tow Boat
Mortgage and the Diving Mortgage will constitute a legal, valid and binding
obligation of Smith Maritime, enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors&#146; rights generally and subject to general principals of
equity, regardless of whether considered in proceedings in equity or at law.</h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE V</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONDITIONS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
5.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Effective
Date</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligations of the Lenders to make the Loans
hereunder, and the obligation of the L/C Issuer to issue Letters of Credit
hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with
Section&nbsp;10.06 hereof):</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Administrative Agent shall have received
a certificate from the secretary of Borrower and each Guarantor attaching (i) a
true and complete copy of the resolutions of its Managing Person and of all
documents evidencing all necessary partnership, limited liability company or
corporate action (in form and substance satisfactory to the Administrative
Agent) taken by it to authorize the Loan Documents to which it is a party and
the transactions contemplated thereby, (ii) attaching a true and complete copy
of its Organizational Documents, (iii) setting forth the incumbency of its
officer or officers or other analogous counterpart who may sign the Loan
Documents, including therein a signature specimen of such</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">officer or officers and (iv) attaching a certificate of good standing
of the Secretary of State of the jurisdiction of its formation and of each
other jurisdiction in which it is qualified to do business.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Administrative
Agent (or its counsel) shall have received from each party hereto either
(i)&nbsp;a counterpart of this Agreement signed on behalf of such party or
(ii)&nbsp;written evidence satisfactory to Administrative Agent (which may
include telecopy transmission of a signed signature page&nbsp;of this
Agreement) that such party has signed a counterpart of this Agreement.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received Notes for each Lender requesting the
same duly signed on behalf of Borrower.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received a Parent Guaranty Reaffirmation and a
Subsidiary Guaranty Reaffirmation, each in form and substance satisfactory to
the Administrative Agent and signed on behalf of each Guarantor party thereto.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received a Subsidiary Guaranty signed on behalf
of each of Smith Maritime, K-Sea Hawaii, Interisland, Tow Boat and Diving.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received (i) a Supplement and Amendment No. 4
to the Borrower Mortgage in form and substance satisfactory to the
Administrative Agent duly signed on behalf of Borrower, (ii) a Supplement and
Amendment No. 3 to the K-Sea LLC Mortgage in form and substance satisfactory to
the Administrative Agent duly signed on behalf of K-Sea LLC, (iii) the
Interisland I Mortgage, the Interisland II Mortgage and the Interisland III
Mortgage, each in form and substance satisfactory to the Administrative Agent
duly signed on behalf of Interisland, (iv) the Tow Boat Mortgage in form and
substance satisfactory to the Administrative Agent duly signed on behalf of Tow
Boat, and (v) the Diving Mortgage in form and substance satisfactory to the
Administrative Agent duly signed on behalf of Diving.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received the following, each dated the date of
the initial Loan hereunder (unless otherwise specified), in form and substance
satisfactory to the Administrative, and in sufficient copies:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>proper
Form UCC-1 financing statements under the Uniform Commercial Code for all
jurisdictions that the Administrative Agent may deem necessary or desirable in
order to perfect and protect the first and only priority Liens and security
interests created hereunder and under the Borrower Mortgage, the K-Sea LLC
Mortgage, the Interisland I Mortgage, the Interisland II Mortgage, the
Interisland III Mortgage, the Tow Boat Mortgage, the Diving Mortgage, the
Mortgage Assumptions and the other Loan Documents, covering the Collateral;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>evidence
of the completion of all other recordings and filings of or with respect to the
Lien created hereby and by the Borrower Mortgage, the K-Sea LLC Mortgage, the
Interisland I Mortgage, the Interisland II Mortgage, the Interisland III
Mortgage, the Tow Boat Mortgage, the Diving Mortgage and the other Loan
Documents </h5>


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<h5 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that the Administrative Agent may deem necessary or desirable in order
to perfect and protect the Liens created by such Loan Documents;</font></h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>with
respect to each Additional Pool Vessel, the following:</h5>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(I) the
Supplement and Amendment No. 4 to the Borrower Mortgage described in Section
5.01(e) above, which shall cover each Additional Pool Vessel owned by Borrower
and (II) the Supplement and Amendment No. 3 to the K-Sea LLC Mortgage described
in Section 5.01(e) above, which shall cover each Additional Pool Vessel owned
by K-Sea LLC and, in connection therewith, such Additional Pool Vessel shall
have been duly documented in the name of the Credit Party holding title thereto
under the laws of the United States, such Supplement and Amendment No. 4 to the
Borrower Mortgage and Supplement and Amendment No. 3 to the K-Sea LLC Mortgage
shall have been duly filed for recording with the United States Coast Guard,
and each of such Supplement and Amendment No. 4 to the Borrower Mortgage and
Supplement and Amendment No. 3 to the K-Sea LLC Mortgage shall constitute a preferred
ship mortgage on such Additional Pool Vessel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
assignment covering the earnings and requisition compensation, if any, of such
Additional Pool Vessel, in form and substance satisfactory to the
Administrative Agent, duly executed by the Credit Party that is the owner of
such Additional Pool Vessel and, in connection therewith, such Credit Party
shall have executed and delivered to the Administrative Agent notices of
assignment and authorizations to collect insurance claims and to collect general
average contributions, in such form and in such number of counterparts as may
be reasonably requested by the Administrative Agent;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
assignment covering the insurances of such Additional Pool Vessel, in form and
substance satisfactory to the Administrative Agent, duly executed by the Credit
Party that is the owner of such Additional Pool Vessel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(D)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>copies of
cover notes and certificates of entry evidencing the insurance covered by such
Additional Pool Vessel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(E)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>authorizations
to inspect class records of such Additional Pool Vessel by the Credit Party
that is the owner thereof, in such form and such number of counterparts as may
be reasonably requested by the Administrative Agent, duly executed by such
Credit Party;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(F)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a true
and complete copy of either (1) a certificate of ownership and encumbrance
issued by the United States Coast Guard or (2) an abstract of title issued by
the United States Coast Guard, in either case, showing such Credit Party to be
the sole owner of such Additional Pool Vessel free and clear of all Liens of
record except (x) the Mortgage covering such Additional Pool </p>


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<p style="margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vessel in favor of
the Collateral Trustee for the benefit of the Lenders, and (y) the Permitted
Liens;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(G)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>for each
Additional Pool Vessel to the extent it is required to be maintained in class
in order to operate in the service in which it is operating, the original
current confirmation certificate of American Bureau of Shipping for such
Additional Pool Vessel, confirming that such Additional Pool Vessel is in such
class without material recommendation, together with an American Bureau of
Shipping SafeNet database printout dated not more than twenty (20) days prior
to the Effective Date, certified by an officer of Borrower as true and correct;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(H)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a copy of
the current certificate of inspection issued by the United States Coast Guard
for such Additional Pool Vessel, if available, and reflecting no outstanding
recommendations; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(1)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>written advice from
B&amp;P International Insurance Brokerage LLC, insurance brokers, of the
placement of the insurances covering such Additional Pool Vessel;
(2)&nbsp;written confirmation from such brokers, that they have received no
notice of the assignment (except from the Administrative Agent) of the
insurances or any claim covering such Additional Pool Vessel; (3)&nbsp;an
opinion of such brokers to the effect that such insurance complies with the
applicable provisions of this Agreement and of the Mortgage covering such
Additional Pool Vessel, where applicable; and (4) an agreement by such brokers,
in form and substance satisfactory to the Administrative Agent, whereunder the
insurances of such Additional Pool Vessel, and claims thereunder, will not be
affected by nonpayment of premiums on any other insurances;</p>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>with
respect to each Phase Two Pool Vessel, the following:</h5>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(A)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a Mortgage
covering such Phase Two Pool Vessel duly executed by the Credit Party that is
the owner of such Phase Two Pool Vessel on the Effective Date and, in
connection therewith, such Phase Two Pool Vessel shall have been duly
documented in the name of such Credit Party under the laws of the United
States, such Mortgage shall have been duly filed for recording with the United
States Coast Guard, and such Mortgage shall constitute a preferred ship
mortgage on such Phase Two Pool Vessel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(B)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
assignment covering the earnings and requisition compensation, if any, of such
Phase Two Pool Vessel, in form and substance satisfactory to the Administrative
Agent, duly executed by the Credit Party that is the owner of such Phase Two
Pool Vessel on the Effective Date;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(C)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
assignment covering the insurances of such Phase Two Pool Vessel, in form and
substance satisfactory to the Administrative Agent, duly executed the Credit
Party that is the owner of such Phase Two Pool Vessel on the Effective Date;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(D)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>copies of
cover notes and certificates of entry evidencing the insurance covered by such
Phase Two Pool Vessel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(E)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a true
and complete copy of either (1) a certificate of ownership and encumbrance
issued by the United States Coast Guard or (2) an abstract of title issued by
the United States Coast Guard, in either case, showing the Credit Party that is
the owner of such Phase Two Pool Vessel on the Effective Date to be the sole
owner of such Phase Two Pool Vessel free and clear of all Liens of record
except (x) the Mortgage covering such Phase Two Pool Vessel in favor of the
Collateral Trustee for the benefit of the Lenders, and (y) the Permitted Liens;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(F)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>for each
such Phase Two Pool Vessel to the extent it is required to be maintained in
class in order to operate in the service in which it is operating, the original
current confirmation certificate of American Bureau of Shipping for such Phase
Two Pool Vessel, confirming that such Phase Two Pool Vessel is in such class
without material recommendation, together with an American Bureau of Shipping
SafeNet database printout dated not more than twenty (20) days prior to the
Effective Date, certified by an officer of Borrower as true and correct;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(G)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a copy of
the current certificate of inspection issued by the United States Coast Guard
for such Phase Two Pool Vessel, if available, and reflecting no outstanding
recommendations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(H)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(1)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>written advice from
B&amp;P International Insurance Brokerage LLC, insurance brokers, of the
placement of the insurances covering such Phase Two Pool Vessel;
(2)&nbsp;written confirmation from such brokers, that they have received no
notice of the assignment (except from the Administrative Agent) of the
insurances or any claim covering such Phase Two Pool Vessel; (3)&nbsp;an
opinion of such brokers to the effect that such insurance complies with the
applicable provisions of this Agreement and of the Mortgage covering such Phase
Two Pool Vessel, where applicable; and (4) an agreement by such brokers, in
form and substance satisfactory to the Administrative Agent, whereunder the
insurances of such Phase Two Pool Vessel, and claims thereunder, will not be
affected by nonpayment of premiums on any other insurances;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>(I)<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the K-Sea Hawaii
Mortgage Assumption duly executed by K-Sea Hawaii, which shall cover each K-Sea
Hawaii Phase Two Pool Vessel, (II) the K-Sea LLC Mortgage Assumption duly
executed by K-Sea LLC, which shall cover each K-Sea LLC Phase Two Pool Vessel,
(III) the Smith/Diving Mortgage Assumption duly executed by Smith Maritime,
which shall cover each Diving Pool Vessel, (IV) the Smith/Interisland Mortgage
Assumption, duly executed by Smith Maritime, which shall cover each of the
Smith Maritime Phase Two Pool Vessels owned by Interisland and (V) the </p>


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<p style="margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith/Tow Boat
Mortgage Assumption duly executed by Smith Maritime, which shall cover each Tow
Boat Pool Vessel;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(J)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
assignment covering the earnings and requisition compensation, if any, of such
Phase Two Pool Vessel, in form and substance satisfactory to the Administrative
Agent, duly executed by the Credit Party that will be the owner of such Phase
Two Pool Vessel upon the consummation of the Phase Two Transactions, and, in
connection therewith, such Credit Party shall have executed and delivered to
the Administrative Agent notices of assignment and authorizations to collect
insurance claims and to collect general average contributions, in such form and
in such number of counterparts as may be reasonably requested by the
Administrative Agent;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(K)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
assignment covering the insurances of such Phase Two Pool Vessel, in form and
substance satisfactory to the Administrative Agent, duly executed by the Credit
Party that will be the owner of such Phase Two Pool Vessel upon the
consummation of the Phase Two Transactions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(L)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>copies of
cover notes and certificates of entry evidencing the insurance covered by such
Phase Two Pool Vessel; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(M)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>authorizations
to inspect class records of such Phase Two Pool Vessel by the Credit Party that
will be the owner of such Phase Two Pool Vessel upon the consummation of the
Phase Two Transactions, in such form and such number of counterparts as may be
reasonably requested by the Administrative Agent, duly executed by such Credit
Party; and</p>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>with
respect to not less than<b>  </b>fifteen
(15)<b>  </b>of the Pool Vessels (other
than the Additional Pool Vessels and the Smith Maritime Pool Vessels), a true
and complete copy of either (A) a certificate of ownership and encumbrance
issued by the United States Coast Guard or (B) an abstract of title issued by
the United States Coast Guard, in either case, showing the Credit Party that is
the owner of such Pool Vessel to be the sole owner of such Pool Vessel free and
clear of all Liens of record except (x) the Mortgage covering such Pool Vessel
in favor of the Collateral Trustee for the benefit of the Lenders, and (y) the
Permitted Liens.</h5>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received a certificate, dated the Effective
Date and signed by a Financial Officer of Borrower,</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>confirming
that (1) the Smith/Sirius Acquisition Transactions has been consummated, (2)
the Smith/Sirius Acquisition has been consummated in accordance with the terms
and conditions of the applicable Smith/Sirius Acquisition Documents, all of
which shall be in form and substance reasonably satisfactory to the
Administrative Agent, and (3) the total consideration paid in connection with
the Smith/Sirius Acquisition was not more than the $195,651,458.40 in cash and
assumption of Indebtedness, plus delivery of 250,000 units in K-Sea to the Smith/Sirius
Seller, </h5>


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<h5 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">subject to adjustment pursuant to the terms of the Smith/Sirius
Acquisition Documents; and</font></h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>attaching
a true, complete and correct copy of each of the following (each of which shall
be in form and substance reasonably satisfactory to the Administrative Agent):
(1) each Smith/Sirius Acquisition Document and (2) any information the
Administrative Agent may reasonably require regarding the assets and
liabilities of Borrower, K-Sea LLC, Smith Maritime, K-Sea Hawaii, Diving,
Interisland and Tow Boat after giving effect to the consummation of the
Smith/Sirius Acquisition.</h5>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received favorable written opinions (each
addressed to the Lenders, the Administrative Agent and the Collateral Trustee
and dated the Effective Date) from Thompson Coburn L.L.P., Holland &amp; Knight
LLP, Carlsmith Ball LLP and Baker Botts LLP, on behalf of the Credit Parties,
substantially in the form of <b>Exhibits C-1</b>,<b> C-2</b>,<b> C-3</b>
and <b>C-4</b>, respectively, covering
such matters relating to the Credit Parties, the Loan Documents, the
Smith/Sirius Acquisition or the Phase Two Transactions as the Administrative
Agent shall reasonably request.&#160; Borrower
hereby requests such counsel to deliver such opinions.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received such other documents and certificates
as the Administrative Agent or its counsel may reasonably request relating to
the organization, existence and good standing of each Credit Party, the
authorization of the Transactions and any other legal matters relating to the
Credit Parties, the Loan Documents or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received Uniform Commercial Code, tax and
judgment lien search reports with respect to each applicable public office
where Liens are or may be filed disclosing that there are no Liens of record in
such official&#146;s office covering any Collateral or showing Borrower or any other
Credit Party as debtor thereunder (other than Permitted Liens) and a
certificate of an officer of Borrower, dated the Effective Date, certifying
that, upon the making of the Loans there will exist no Liens on the Collateral
other than Permitted Liens.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
shall be no injunction, writ, preliminary restraining order or other order of
any nature issued by any Governmental Authority in any respect affecting the
transactions provided for in this Agreement or the other Loan Documents and no
action or proceeding by or before any Governmental Authority has been commenced
and is pending or, to the knowledge of Borrower, threatened, seeking to prevent
or delay the transactions contemplated by the Loan Documents or challenging any
other terms and provisions hereof or thereof or seeking any damages in connection
therewith, and the Administrative Agent shall have received a certificate, in
all respects satisfactory to the Administrative Agent, of an officer of
Borrower to the foregoing effect.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received a certificate, dated the Effective
Date and signed by an officer of Borrower, confirming compliance with the
conditions set forth in paragraphs (a) and (b) of Section&nbsp;5.02.</h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">69</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Prior to
or simultaneously with the making of the Loans on the Effective Date, Borrower
shall have fully repaid all Indebtedness set forth on <b>Schedule 5.01</b> hereto and all agreements
with respect thereto shall have been cancelled or terminated, all Liens, if
any, securing the same shall have been terminated, and the Administrative Agent
shall have received satisfactory evidence thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Lenders shall have completed a due diligence investigation of Borrower and the
other Credit Parties in scope, and with results, satisfactory to the Lenders;
Borrower and the other Credit Parties shall have given the Administrative Agent
such access to their respective books and records as the Administrative Agent
may have requested upon reasonable notice in order to carry out its
investigations, appraisals and analyses, and the Administrative Agent shall have
received all additional financial, business and other information regarding
Borrower and the other Credit Parties and their respective properties as the
Administrative Agent shall have reasonably requested.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to
be reimbursed or paid by Borrower hereunder.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received evidence satisfactory to it that the
insurance required by Section&nbsp;6.06 is in effect.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received and accepted a desktop or visual
Appraisal of all Additional Pool Vessels, Interisland Pool Vessels, Tow Boat
Pool Vessels and the Diving Pool Vessel, which shall be in form and substance
satisfactory to the Administrative Agent, and which shall demonstrate that the
Fair Market Value of the Pool Vessels as of the Effective Date is not less than
the greater of (i) $274,000,000.00 and (ii) a Fair Market Value such that the
Asset Coverage Ratio shall not be less than 1.25 to 1.00.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received satisfactory evidence that the
Additional Pool Vessels, the Interisland Pool Vessels, Tow Boat Pool Vessels
and the Diving Pool Vessel are operationally suitable for the trades in which
the Additional Pool Vessels, Interisland Pool Vessels, Tow Boat Pool Vessels
and the Diving Pool Vessel are expected to be engaged and can be operated by
Borrower, K-Sea LLC, Interisland, Tow Boat, Diving, Smith Maritime and/or K-Sea
Hawaii in their intended trades without impediment.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Lenders shall be reasonably satisfied (i) that there shall be no litigation or
administrative proceeding, or regulatory development, that would reasonably be
expected to have a Material Adverse Effect on (A) the business, assets,
operations, condition (financial or otherwise) or material agreements of
Borrower and its Subsidiaries, (B) the business, assets, operations, condition
(financial or otherwise) or material agreements of the &#147;Subject Companies&#148; (as
defined in the Smith Acquisition Agreement), Sirius Maritime, LLC or the
Smith/Sirius Seller since December 31, 2006, (C) the ability of any Credit
Party to perform any of its obligations under any Loan Document, (D) the rights
of or benefits available to the Administrative Agent or any Lender under any
Loan Document or (E) the ability of any party to </h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">70</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Smith/Sirius Acquisition Documents to
perform any of its obligations under the Smith/Sirius Acquisition Documents or
any instrument, document or agreement evidencing the Phase Two Transactions and
(ii)&nbsp;with the current status of, and the terms of any settlement or other
resolution of, any litigation or other proceedings brought against Borrower or
any Subsidiary.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Lenders shall have completed a due diligence investigation of Smith/Sirius
Seller, the &#147;Subject Companies&#148; (as defined in the Smith Acquisition
Agreement), Sirius Maritime, LLC, Interisland, Tow Boat and Diving, in scope,
and with results, satisfactory to the Lenders; the &#147;Subject Companies&#148;, Sirius
Maritime, LLC, Interisland, Tow Boat and Diving shall have given the
Administrative Agent such access to their respective books and records as the
Administrative Agent may have requested upon reasonable notice in order to
carry out its investigations, appraisals and analyses, and the Administrative
Agent shall have received all additional financial, business and other
information regarding the &#147;Subject Companies&#148;, Sirius Maritime, LLC,
Interisland, Tow Boat and Diving and their respective properties as the
Administrative Agent shall have reasonably requested.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Lenders shall be reasonably satisfied that no material adverse change or
material adverse condition in the business, assets, operations, properties,
condition (financial or otherwise), liabilities (including contingent
liabilities), prospects or material agreements of (i)&nbsp;Borrower and its
Subsidiaries, (ii) the &#147;Subject Companies&#148; (as defined in the Smith Acquisition
Agreement), (iii) Sirius Maritime, LLC or (iv) Interisland, Tow Boat or Diving
has occurred since December 31, 2006.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No Event
of Loss shall have occurred with respect to any of the Pool Vessels.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There
shall be no injunction, writ, preliminary restraining order or other order of
any nature issued by any Governmental Authority in any respect affecting
(i)&nbsp;the transactions provided for in this Agreement, the other Loan
Documents or the Smith/Sirius Acquisition Documents, (ii) the Smith/Sirius
Acquisition Transactions or (iii) the Phase Two Transactions and no action or
proceeding by or before any Governmental Authority shall have been commenced
and be pending or, to the knowledge of Borrower, threatened, seeking to prevent
or delay the transactions contemplated by (x) this Agreement, the other Loan
Documents or the Smith/Sirius Acquisition Documents, (y) the Smith/Sirius
Acquisition Transactions or (z) the Phase Two Transactions or challenging any
other terms and provisions hereof or thereof or seeking any damages in
connection herewith or therewith, and the Administrative Agent shall have
received a certificate, in all respects reasonably satisfactory to the
Administrative Agent, of a Financial Officer of Borrower to the foregoing
effect.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
material approvals and consents of all Persons required to be obtained in
connection with the consummation of the Smith/Sirius Acquisition Transactions
and the Phase Two Transactions shall have been obtained and shall be in full
force and effect, and all required notices have been given and all required
waiting periods shall have expired, and the Administrative Agent shall have
received a certificate, in all respects reasonably satisfactory to the
Administrative Agent, of an officer of Borrower to the foregoing effect.</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received copies of such environmental studies,
surveys and reports, in form and substance satisfactory to the Administrative
Agent, as the Administrative Agent may reasonably require, with respect to the
real property owned or leased by the &#147;Subject Companies&#148; (as defined in the
Smith Acquisition Agreement), Sirius Maritime, LLC, Interisland, Tow Boat or
Diving.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received and be reasonably satisfied with (i)
the audited balance sheet of Smith/Sirius Sellers as at December 31, 2004,
December 31, 2005 and December 31, 2006 and the audited results of operations,
cash flows and stockholders&#146; equity of the Smith/Sirius Sellers for the fiscal
years ending on December 31, 2005 and December 31, 2006, in each case prepared
in accordance with GAAP consistently applied and certified by
PricewaterhouseCoopers LLP, (ii)&nbsp;the financial statements of Smith/Sirius
Sellers as at and for the fiscal quarter ending on June 30, 2007 and the then
elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding fiscal quarter end, and period or
periods, of the previous fiscal year, (iii)&nbsp;biographical information in form
and substance satisfactory to the Administrative Agent with respect to such
officers of the &#147;Subject Companies&#148; (as defined in the Smith Acquisition
Agreement), Sirius Maritime, LLC and the Smith/Sirius Sellers as the
Administrative Agent may reasonably request, together with a summary of the
anticipated roles of such officers after the consummation of the Smith/Sirius
Acquisition and (iv) the audited consolidated Financial Statements (with an
unqualified opinion) of Borrower and K-Sea as at and for the fiscal year ending
June 30, 2006, prepared and certified by PricewaterhouseCoopers LLP.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent and the Lenders shall have received and be satisfied with
consolidated and consolidating pro forma balance sheets of Borrower and its
Subsidiaries as of the Effective Date, after giving effect to the Transactions,
the Smith/Sirius Acquisition Transactions (including all debt and equity
issuances in connection therewith) and the Phase Two Transactions.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received a certificate of a Financial Officer
of K-Sea setting forth reasonably detailed calculations demonstrating pro forma
compliance with Sections&nbsp;7.01, 7.02, 7.03 and 7.04 hereof as of the
Effective Date, after giving effect to the Transactions and the consummation of
the Smith/Sirius Acquisition Transactions (including all debt and equity
issuances in connection therewith) and the Phase Two Transactions.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(dd)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have a certificate from a Financial Officer of K-Sea
demonstrating in reasonable detail that as of the Effective Date, after giving
effect to the Transactions and the consummation of the Smith/Sirius Acquisition
Transactions (including all debt and equity issuances in connection therewith)
and the Phase Two Transactions, pro forma EBITDA is not less than $95,000,000.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ee)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall have received proceeds in an amount of not more than $60,000,000 from the
incurrence of the Bridge Loan.</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ff)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All legal
matters with respect to and all legal documents (including, but not limited to,
the Loan Documents) executed in connection with the transactions contemplated
by this Agreement shall be satisfactory to counsel for the Administrative
Agent.</h3>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Administrative Agent (acting itself or through its counsel) shall notify
Borrower, the Lenders, the L/C Issuer and the Collateral Trustee of the
Effective Date, and such notice shall be conclusive and binding.&#160; Notwithstanding the foregoing, the
obligations of Lenders to make Loans and the obligation of the L/C Issuer to
issue Letters of Credit shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section&nbsp;10.06 hereof) at or
prior to 3:00&nbsp;p.m., New York City time, on or prior to August 31, 2007
(and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
5.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Each
Loan and Letter of Credit</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligation of each Lender to make a Loan (other
than a Loan made by a Lender pursuant to Section 2.14(e)), and the obligation
of the L/C Issuer to issue a Letter of Credit (including the initial issuance
thereof) or renew a Letter of Credit and the right of Borrower to request the
issuance or renewal of a Letter of Credit, shall each be subject to the further
conditions precedent that on the date of the making of each Loan, issuance or
renewal:</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
representations and warranties of each Credit Party set forth in each Loan
Document shall be true and correct in all material respects on and as of the
date of such Loan, issuance or renewal, except to the extent such
representations and warranties relate to an earlier date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At the
time of and immediately after giving effect to such Loan or issuance, no
Default shall have occurred and be continuing and the aggregate Revolving
Credit Exposure of all Lenders shall not exceed the Borrowing Base.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received a Loan Request meeting the
requirements of Section 2.04 or a Credit Request meeting the requirements of
Section 2.14.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent shall have received such other documentation and
assurances as shall be reasonably required by it in connection with the making
of such Loan or the issuance or renewal of such Letter of Credit.</h3>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The making of each Loan
and the issuance and renewal of each Letter of Credit shall be deemed to
constitute a representation and warranty by Borrower on the date thereof as to
the matters specified in paragraphs (a) and (b) of this Section 5.02.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold;">ARTICLE VI</font><br>
<br>
AFFIRMATIVE COVENANTS</font></b></h1>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Until
the Commitments have expired or been terminated and the principal of and
interest on each Loan, all Reimbursement Obligations and all fees and other
amounts (other than </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">contingent indemnity obligations) payable under the Loan Documents
shall have been paid in full, Borrower covenants and agrees with the Lenders
that</font>:</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Financial
Statements and Other Information</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall deliver to the Administrative Agent and the Lenders, at Borrower&#146;s sole
expense:&#160; (i)&nbsp;as soon as available
but no later than forty-five (45) days after the end of each fiscal quarter,
the unaudited consolidated Financial Statements of Borrower and K-Sea for such
interim fiscal period, prepared in accordance with GAAP and certified by the
Financial Officer of Borrower and K-Sea, respectively, (ii) as soon as
available after the end of each fiscal year, annual financial projections of
Borrower prepared in accordance with GAAP by the Financial Officer of Borrower,
using monthly data, and (iii)&nbsp;as soon as available but no later than one
hundred twenty (120) days after the end of each fiscal year or as required
under any regulations to which Borrower or K-Sea is subject, the audited
consolidated Financial Statements (with an unqualified opinion without a going
concern qualification) of Borrower and K-Sea for such fiscal year, prepared and
certified by independent certified public accountants acceptable to
Lenders.&#160; All of the foregoing shall be
in such form and together with such information with respect to the business of
Borrower, as Lenders may in each case request as reasonably calculated by
Lenders to enable them to confirm and prove elements of the Financial
Statements.&#160; Borrower shall keep and
maintain its books and records in accordance with GAAP, consistently applied.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Concurrently
with any delivery of Financial Statements under clause (a)(i) above, Borrower
shall deliver to Lenders a certificate of a Financial Officer of K-Sea
(i)&nbsp;certifying as to whether a Default has occurred since the delivery of
the previous such certificate or to the date hereof and, if such a Default has
occurred, specifying the details thereof and any action taken or proposed to be
taken with respect thereto, (ii)&nbsp;setting forth reasonably detailed
calculations demonstrating compliance with Sections&nbsp;7.01, 7.02, 7.03 and
7.04 hereof (which calculations with respect to Section 7.04 shall be based on
the then most recent Appraisals of the Pool Vessels and the aggregate Revolving
Credit Exposure of all Lenders as of the last day of the fiscal quarter covered
by such Financial Statements) and (iii)&nbsp;stating whether any change in GAAP
or in the application thereof has occurred since the date of the audited
Financial Statements referred to in Section&nbsp;4.04 or Section&nbsp;6.01
hereof, as applicable, has materially and adversely effected the Financial
Statements accompanying such certificate and, if so, the estimated dollar
amount thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Promptly
after the same become publicly available, Borrower shall make available (which
shall include through electronic availability by filing with the Securities and
Exchange Commission) to the Administrative Agent and the Lenders copies of all
financial statements required to be prepared and delivered in accordance with
Section 6.01(a) and other periodic and other reports, proxy statements and
other materials filed by Borrower or any Subsidiary with the Securities and
Exchange Commission, or any Governmental Authority succeeding to any or all of
the functions of said Commission, or with any national securities exchange, as
the case may be; and</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Promptly
following any request therefor, Borrower shall deliver to the Administrative
Agent and the Lenders such other information regarding the operations, business
affairs and financial condition of K-Sea or any Subsidiary, or compliance with
the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Pool
Vessel Appraisals</u>.</b></h2>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Administrative Agent may conduct, and Borrower shall cooperate in the conduct
of, a visual Appraisal of any or all of the Pool Vessels at Borrower&#146;s expense,
over every twelve (12) month period of this Agreement in the absence of an
Event of Default and at any time during the continuance of an Event of
Default.&#160; The first twelve-month period
will begin on the Effective Date; <u>provided</u> that Borrower will allow
access to any Appraiser selected by the Administrative Agent to attend and
appraise any </font>Pool Vessel in drydock at any time
on reasonable notice.&#160; Each fiscal year,
Borrower shall provide the Administrative Agent with a drydock schedule and location
of drydock.&#160; As soon as available after
each Anniversary Date, Borrower shall provide the Administrative Agent with
desktop Appraisals on all Pool Vessels in the Collateral.</p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Fees
and Expenses</u>.</b></h2>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower</font> shall pay, on demand of the Administrative
Agent and delivery to Borrower of invoices therefor, all actual out-of-pocket
costs, expenses, filing fees and taxes payable in connection with the
negotiation, preparation, execution,
delivery, recording, administration, collection, liquidation, enforcement and
defense of the Obligations, the Lenders&#146; rights in the Collateral, this
Agreement and all other existing and future agreements or documents
contemplated herein or related hereto, including any amendments, waivers,
supplements or consents which may hereafter be made or entered into in respect
hereof, or in any way involving claims or defense asserted by the Lenders or
claims or defenses against the Lenders asserted by Borrower or any guarantor,
including, without limitation, the Guarantors, or any third party directly or
indirectly arising out of or related to the relationship between Borrower and
the Lenders, including, but not limited to, the following, whether incurred
before, during or after the initial or any renewal term or after the commencement
of any case with respect to Borrower under the United States Bankruptcy Code or
any similar statute: (a)&nbsp;all costs and expenses of filing or recording
(including the UCC financing statement and any Mortgage filing taxes and fees,
abstract fees relating to the Pool Vessels, documentary taxes, intangibles
taxes, etc., if applicable); (b)&nbsp;all insurance premiums, appraisal fees,
fees incurred in connection with any environmental report, audit or survey and
search fees; (c)&nbsp;all fees as then in effect relating to the wire transfer
of loan proceeds and other funds and fees then in effect for returned checks
and credit reports; (d)&nbsp;with respect to periodic field examinations of the
Collateral and Borrower&#146;s operations, a per diem charge at the rate of $1,000.00
per person per day for Lenders&#146; internal examiners in the field and office in
excess of three (3) days per visit; and (e)&nbsp;the reasonable, documented
costs, fees and disbursements of outside counsel to Lenders, including, but not
limited to, such fees and disbursements incurred as a result of litigation
between the parties hereto, any third party and in any appeals arising
therefrom.&#160; Any of the foregoing amounts
that are paid by Lenders shall, until reimbursed by or on behalf of Borrower,
constitute Obligations of Borrower secured by the Collateral.</p>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.04</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notices
of Material Events</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will furnish to
the Administrative Agent and each Lender prompt written notice of the
following:</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
occurrence of any Default or Event of Default;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
filing, commencement or written threat of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against Borrower or any other
Person or affecting Borrower or any Affiliate thereof that, if adversely
determined, could reasonably be expected to result in a Material Adverse
Effect;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
occurrence of any ERISA Event that could reasonably be expected to result in a
Material Adverse Effect; and</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any other
development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.</h3>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each
notice delivered under this Section&nbsp;shall be accompanied by a statement of
a Financial Officer or other executive officer of Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.05</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Existence;
Conduct of Business</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will, and will
cause each of its Subsidiaries to, do or cause to be done all things necessary
to preserve, renew and keep in full force and effect its legal existence and
the rights, licenses, permits, privileges and franchises material to the
conduct of its business; <u>provided</u> that, after the consummation of the
Phase Two Transactions, Borrower may dissolve Diving, Interisland, Tow Boat and
Marine Logistics, Inc. (as each such Subsidiary shall have been converted to a
limited liability company).</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.06</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Insurance</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>With
respect to the Collateral and other assets, Borrower shall maintain, and cause
each Subsidiary Guarantor to maintain, insurance at all times, with financially
sound and reputable insurers that are reasonably acceptable to the
Administrative Agent.&#160; With respect to
insurance on all Collateral, all such insurance policies shall be in such form,
substance, amounts and coverage as may be satisfactory to the Administrative
Agent, including, without limitation, insurance on hull and machinery,
protection and indemnity, loss or damage to vessels, damage to property of
third parties (including customers), loss or contamination of cargo, personal
injuries to employees or third parties, and pollution and other related
environmental damage.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Such
insurance shall provide for thirty (30) days&#146; prior written notice to the
Administrative Agent of any reduction or cancellation of coverage on account of
default in the payment of any premium and shall provide Lenders with the
opportunity to cure </h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">nonpayment.&#160;
Borrower hereby irrevocably appoints the Administrative Agent with full
right of delegation by the Administrative Agent as attorney-in-fact for
Borrower to obtain, at Borrower&#146;s expense, any such insurance should Borrower
or any Subsidiary Guarantor fail to do so and, after an Event of Default, to
adjust or settle any claim or other matter under or arising pursuant to such
insurance or to amend or cancel such insurance.&#160;
Borrower shall deliver to the Administrative Agent evidence of such
insurance and a lender&#146;s loss payable endorsement satisfactory to the
Administrative Agent as to all existing and future insurance policies with respect
to the Collateral.&#160; Borrower shall
deliver to the Administrative Agent, in kind, all instruments representing
proceeds of insurance received by Borrower or any Subsidiary Guarantor.&#160; Except as otherwise specifically provided
herein or in the Mortgage as to any Pool Vessel, the Administrative Agent may
apply any insurance proceeds received by the Administrative Agent or the
Collateral Trustee at any time to the cost of repairs to or replacement of any
portion of the Collateral and/or, at the Administrative Agent&#146;s option, to
payment of or as security for any of the Obligations, whether or not due, in
any order or manner as the Administrative Agent may determine.&#160; Borrower will insure, and cause each
Subsidiary Guarantor to insure, each Pool Vessel in accordance with
Section&nbsp;1.18 of the Mortgage. Nothing in this Agreement shall be construed
to limit or restrict the provisions of Section&nbsp;1.18 of the Mortgage, but
shall be in addition thereto.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.07</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Taxes;
Use</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower agrees that it will, and will cause each of
its Subsidiaries to, pay and discharge all taxes, assessments, licensing
obligations and governmental charges or levies imposed on the income, profits,
sale, business or properties of Borrower and its Subsidiaries prior to the date
upon which penalties attach for non-payment thereof, and promptly discharge any
liens, encumbrances or other claims which may be levied or claimed against any
of the Collateral, <u>provided</u> that (i)&nbsp;any such tax, assessment,
charge or levy need not be paid if the payment thereof is being contested in
good faith and by appropriate proceedings, (ii)&nbsp;for which adequate book
reserves, determined in accordance with GAAP, shall be set aside, and
(iii)&nbsp;the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect, and <u>provided</u>, <u>further</u>,
that if any such tax, assessment, charge or levy lawfully imposed shall remain
unpaid after the date upon which a Lien on any Collateral arises or may be
imposed as a result of such non-payment, or if any Lien is claimed for any
other reason against any of the Collateral, which if foreclosed would in the
opinion of the Administrative Agent adversely affect the value of the Lenders&#146;
security interest in any of the Collateral, the Lenders may pay and discharge
such taxes, assessments, charges, levies and Liens, and the amount so paid by
the Lenders shall be payable on demand and if not paid promptly, will be
charged to the appropriate Loan Account and shall be secured by the Collateral.&#160; Borrower will, and will cause each of its
Subsidiaries, to comply with all laws and all acts, rules, regulations and
orders of any legislative, administrative or judicial body or official,
applicable to the Collateral or to the operation of the business of Borrower.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.08</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Maintenance
of Properties; Use and Operation of Pool Vessels</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will, and will
cause each of its Subsidiaries to, keep and maintain all property material to
the conduct of its business in good working order and condition, ordinary wear
and </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">tear
excepted.&#160; Borrower shall require at all
times that any demise charterer or operator of any of the Pool Vessels shall
use its due diligence to operate, maintain, repair, insure, man and supply the
Pool Vessels or any of them in a careful and proper manner, comply in all
material respects with and conform to all governmental laws, rules and
regulations and insurance restrictions relating thereto, and operate any such
Pool Vessels with competent and duly qualified personnel.&#160; Borrower shall ensure that none of the Pool
Vessels is traded, located, operated or used, directly or indirectly, in a
Prohibited Jurisdiction or by a Prohibited Person, and no charterer nor any
subcharterer or shipper shall be a Prohibited Person or organized in a Prohibited
Jurisdiction.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.09</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Books
and Records; Inspection Rights</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will, and will cause each of its Subsidiaries
to, keep proper books of record and account in which full, true and correct
entries in accordance with GAAP are made of all dealings and transactions in
relation to its business and activities.&#160;
Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, including,
without limitation, the Collateral, to examine and make extracts from its books
and records, and to discuss its affairs, finances and condition with its
officers and independent accountants, all at such reasonable times and as often
as reasonably requested.&#160; Borrower shall
provide to the Administrative Agent advance notice of all surveys and
regulatory inspections in order that the Administrative Agent or its agent may
observe and participate.&#160; All records,
computer tapes, discs and other data storage devices, ledger sheets,
correspondence, invoices, delivery receipts, documents and instruments relating
to the Collateral shall also constitute Collateral and, unless and until
delivered to the Administrative Agent or the Lenders, shall be kept by
Borrower, without cost to Lenders, in appropriate containers and in safe
places, and if the Administrative Agent or the Lenders should so request, shall
bear suitable legends identifying them as being under any Administrative Agent&#146;s
dominion and control.&#160; The Administrative
Agent and the Lenders shall at all reasonable times have full access to and the
right to audit any and all of Borrower&#146;s books, computer tapes, discs and other
data storage devices and records, including, but not limited to, books and
records pertaining to the Collateral and including all files and correspondence
with creditors and customers, and to confirm and verify the value and
collectibility of the Collateral and to do whatever else the Administrative
Agent or the Lenders reasonably may deem necessary to protect its interests.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.10</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Use
of Proceeds</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
proceeds of the Tranche A Loans can be used for any purpose in the ordinary
course of business, including distributions to K-Sea for the purpose of making
minimum quarterly distributions to partners in K-Sea, acquisition of entities
or specific vessels from unaffiliated third parties, or, if from an Affiliate,
an acquisition which is made on terms equivalent to an arm&#146;s-length basis, or
financing other rebuilding, retrofitting, upgrading or capital improvements on
Pool Vessels or other Vessels owned by Borrower or any Subsidiary Guarantor.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
proceeds of the Tranche B Loans shall be used to finance, in part, the
Smith/Sirius Acquisition.</h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">78</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No part
of the proceeds of any Loan will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, to purchase, acquire or carry
any margin stock (as defined under Regulation U of the Board) or for any
purpose that entails a violation of any of the regulations of the Board,
including Regulations T, U and X.&#160;
Borrower shall not invest, lend or otherwise distribute the proceeds of
any Loan made under this Agreement in or to any Person other than Borrower,
K-Sea or any Subsidiary Guarantor, except as set forth in Section&nbsp;6.10(a)
and 6.10(b).</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.11</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>U.S.
Person</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall at all times until the Lien of the Mortgage shall be discharged and there
are no Loans outstanding hereunder be a limited partnership organized under the
laws of Delaware or another state within the United States.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each of
K-Sea LLC and Smith Maritime shall at all times until the Lien of the Mortgage
shall be discharged and there are no Loans outstanding hereunder be a limited
liability company organized under the laws of Delaware or another state within
the United States.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each of
K-Sea Hawaii and K-Sea Transportation Inc. shall at all times until the Lien of
the Mortgage shall be discharged and there are no Loans outstanding hereunder
be a corporation organized under the laws of Delaware or another state within
the United States.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each of
Interisland, Tow Boat and Diving shall at all times until the Interisland I
Mortgage, the Interisland II Mortgage, the Interisland III Mortgage, the Tow
Boat Mortgage and the Diving Mortgage have been assumed by K-Sea LLC, K-Sea
Hawaii and Smith Maritime, respectively, pursuant to the Mortgage Assumptions
be a corporation or limited liability company organized under the laws of
Hawaii or another state within the United States.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.12</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Documentation</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will, and will cause each Subsidiary
Guarantor to, comply with and satisfy all provisions of the laws and
regulations of the United States now or hereafter from time to time in effect
in order that the Pool Vessels shall continue to be documented vessels pursuant
to the laws of the United States as vessels of the United States under the
United States flag with such endorsements as shall qualify the Pool Vessels for
participation in the coastwise trade and such other trades and services to
which they may be dedicated from time to time.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.13</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Further
Assurances</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will, promptly at any time and from time to
time, at its sole expense, execute and deliver, and cause its Subsidiaries to
execute and deliver, to the Administrative Agent such further instruments and
documents, and take such further action, as the Administrative Agent may from
time to time request in order to further carry out the intent and purpose of
the Loan Documents and to establish and protect the rights, interests and
remedies created, or intended to be created, in favor of the Administrative
Agent and the Lenders hereby and thereby, including, without limitation, the
execution, delivery, recordation and filing of financing statements and </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">79</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">continuation
statements.&#160; Borrower hereby authorizes
the Administrative Agent, in such jurisdictions where such action is authorized
by law, to effect any such recordation or filing of financing statements and
continuation statements without the signature of Borrower thereon and to file
as valid financing statements in the applicable financing statement records,
photocopies hereof and of any other financing statement executed in connection
herewith.&#160; The Administrative Agent
agrees to provide Borrower with copies of UCC filings, but shall have no
liability for failure to do so and such failure shall not serve as a defense to
the performance by any party of its obligations under the Loan Documents.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.14</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Borrower&#146;s
Title; Lenders&#146; Security Interest; Personal Property</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall warrant and defend its good and
marketable title in and to the Pool Vessels, and the Administrative Agent&#146;s and
the Collateral Trustee&#146;s perfected first priority security interest in the
Collateral, against all claims and demands whatsoever.&#160; Borrower agrees that the Pool Vessels shall
be, and at all times and remain, separately identifiable personal
property.&#160; Borrower shall, at its sole
expense, take such action (including the obtaining and recording of waivers) as
may be necessary to prevent any Person from acquiring any right to or interest
in the Pool Vessels by virtue of the Pool Vessels being deemed to be real
property or a part of real property or a part of other personal property, and
if at any time any Person shall claim any such right or interest, Borrower
shall, at its expense, cause such claim to be waived in writing or otherwise
eliminated by bonding or substitution of security to the Administrative Agent&#146;s
satisfaction within thirty (30) days after such claim shall have first become
known to Borrower.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.15</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Without limiting the generality of any other provision
hereof, Borrower shall indemnify, protect, save and keep harmless the
Administrative Agent, the L/C Issuer, the Collateral Trustee and each Lender
from and against any reduction in the amount payable out of the Collateral to
such Person with respect to the Obligations, or any other loss, cost or expense
(including reasonable legal fees) incurred by such Person, as the result of any
breach of the provisions of this Article&nbsp;VI.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.16</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Performance
of Contracts</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will, and will cause each Subsidiary
Guarantor to, duly observe and perform in all material respects all covenants
and obligations to be performed by it under any charter or any other contract
for use of the Pool Vessels or any of them and will promptly take any and all
action as may be reasonably necessary to enforce its rights under any such
charter or contract or to secure the performance by such charterer or operator
of such party&#146;s obligations under any such charter or contract.&#160; If an Event of Default shall have occurred
and be continuing, Borrower shall not, and shall not permit any Subsidiary
Guarantor to, amend, terminate or otherwise modify the terms of any such
charter or contract without the prior written consent of the Lenders, which
shall not be unreasonably withheld or delayed, but to which reasonable
conditions may be attached; <u>provided</u>, <u>however</u>, the Lenders shall
have no obligation to consent to any termination or to any amendment or
modification, if in the Lenders&#146; judgment such amendment or </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">80</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">modification would
materially increase the Lenders&#146; risks in the transaction, reduce its returns
or otherwise disadvantage the Lenders.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.17</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Environmental
Compliance</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower (a) shall, and
it shall require that any and all subcharterers, managers, employees,
contractors, subcontractors, agents, representatives, Affiliates, consultants,
occupants and any and all other Persons, (i)&nbsp;comply in all material
respects with all applicable Environmental Laws, (ii)&nbsp;use, employ,
process, emit, generate, store, handle, transport, dispose of and/or arrange
for the disposal of any and all Hazardous Materials in, on, or, directly or
indirectly, related to or in connection with any of the Pool Vessels or any
portion thereof in a manner consistent with prudent industry practice and in
compliance in all material respects with all applicable Environmental Laws, and
in a manner which does not pose a significant risk to human health, safety
(including occupational health and safety) or the environment, and
(iii)&nbsp;obtain, maintain, and have on board each of the Pool Vessels any
required Certificate of Financial Responsibility; and (b)&nbsp;shall, and it
shall require that any charterer of any of the Pool Vessels or any of them or
any other Person that may have custody of any of the Pool Vessels shall, upon
the occurrence or discovery of an Environmental Event with respect to such Pool
Vessel, promptly carry out, using Borrower&#146;s or such other Person&#146;s own funds
or proceeds of insurance with respect thereto, such actions as may be necessary
to remediate or cure such Environmental Event in compliance in all material
respects with all Applicable Laws, to comply in all material respects with all
applicable Environmental Laws and to alleviate any significant risk to human
health or the environment if the same arises from a condition on or in respect
of the Pool Vessel, whether existing prior to or during the term of this
Agreement or the term of any such the charter.&#160;
Once Borrower or such other Person commences such actions, Borrower
shall, and shall cause such other Person to, thereafter diligently and
expeditiously proceed to comply in all material respects in a timely manner
with all Environmental Laws and to eliminate any significant risk to human
health or the environment arising from such Environmental Event and shall, at
the request of the Administrative Agent, give periodic progress reports to the
Administrative Agent and the Lenders on its compliance efforts and
actions.&#160; Nothing contained herein will
relieve or discharge or in any way affect the obligation of Borrower to cure
promptly any violations of Applicable Law or to pay and discharge any Liens
against any of the Pool Vessels.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.18</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Subsidiary
Guaranties</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon the formation or acquisition of any Subsidiary of
Borrower (other than an Excluded Subsidiary), Borrower shall cause each such
Subsidiary to provide a Subsidiary Guaranty to the Administrative Agent
substantially in the form attached hereto as <b>Exhibit&nbsp;H.</b>&#160; In the event any Subsidiary of Borrower is an
entity other than a corporation, the form of Subsidiary Guaranty shall be
modified to reflect the nature of such entity.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">81</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.19</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Relating
to the Vessels</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall maintain and cause each of its Subsidiaries to maintain, a certified copy
of each Mortgage, together with a notice thereof, aboard each of the Pool
Vessels owned by it.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall maintain and cause each of its Subsidiaries to maintain the Pool Vessels
(which are required to be classed in order to operate in the service in which
they are operating) in the highest classification required to be maintained in
order to operate in such service for vessels of like age and type by the American
Bureau of Shipping or any other classification society reasonably satisfactory
to the Administrative Agent.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall, and shall cause each Subsidiary Guarantor to, permit the Administrative
Agent to have the Pool Vessels surveyed by marine engineers or other surveyors
selected by the Administrative Agent, in its sole discretion, at such times and
with such frequency as the Administrative Agent may reasonably request.&#160; The costs of such surveys and inspections
shall be allocated as follows: (i)&nbsp;so long as no Event of Default has
occurred and is then continuing, the cost of one such survey and inspection
every three years shall be borne by Borrower, and (ii)&nbsp;whenever an Event
of Default exists hereunder, the costs of all surveys (including, without
limitation, Visual Surveys) and inspections shall be borne by Borrower.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.20</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Working
Capital Clean-Down</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will cause Loans
the proceeds of which were used for working capital purposes (as identified in
accordance with clause (vi) of Section 2.04 hereof) and not for vessel
acquisitions or expansion capacity, to be reduced to zero for fifteen (15)
consecutive days during each twelve (12) month period beginning with the
Effective Date.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.21</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Qualified
Equity Issuance</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea shall commence,
within 15 days after the Effective Date, the Qualified Equity Issuance.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
6.22</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Phase
Two Transaction</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall cause the Phase Two Transactions to be consummated on or before the tenth
(10<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>) day
following the Effective Date and upon such consummation, the Administrative
Agent shall receive:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>promptly
after becoming available from the United States Coast Guard National Vessel
Documentation Center in Falling Waters, West Virginia and in any event within
two (2) Business Days thereafter, with respect to each Phase Two Pool Vessel,
in form and substance satisfactory to the Administrative Agent, and in
sufficient copies, a true and complete copy of either (1) a certificate of
ownership and encumbrance issued by the United States Coast Guard or (2) an
abstract of title issued by the United States Coast Guard, in either case,
showing (A) K-Sea LLC to be the owner of the K-Sea LLC Phase Two Pool Vessels,
(B)&nbsp;Smith Maritime to be the owner of the Smith Maritime </h5>


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<h5 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pool Vessels and (C) K-Sea Hawaii to be the owner of the K-Sea Hawaii
Phase Two Pool Vessels, in each case free and clear of all Liens of record
except (x) the Mortgage covering such Phase Two Pool Vessel in favor of the
Collateral Trustee for the benefit of the Lenders (as assumed by K-Sea LLC,
Smith Maritime or K-Sea Hawaii, as the case may be), and (y) the Permitted
Liens; and</font></h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
certificate, signed by a Financial Officer of Borrower, attaching a true,
complete and correct copy of each of the instruments, documents and agreements evidencing
the Phase Two Transactions (each of which shall be in form and substance
reasonably satisfactory to the Administrative Agent.</h5>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the
event that the Phase Two Transactions shall not have been consummated by the
seventh (7<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>) day
following the Effective Date, Borrower shall cause to be delivered to the
Administrative Agent: (i) notices of assignment and authorizations to collect
insurance claims and to collect general average contributions, in such form and
in such number of counterparts as may be reasonably requested by the
Administrative Agent, duly executed by each of Diving, Interisland and Tow Boat
in connection with the Earnings Assignments delivered by such Credit Parties,
(ii) authorizations to inspect class records of the Phase Two Pool Vessels by
each of Diving, Interisland and Tow Boat, in such form and such number of
counterparts as may be reasonably requested by the Administrative Agent, duly
executed by each such Credit Party and (iii) such other notices and
authorizations in connection with the Earnings Assignment and the Assignments
of Insurances delivered by Diving, Interisland and Tow Boat, each in such form
and in such number of counterparts as may be reasonably requested by the
Administrative Agent, duly executed by each of Diving, Interisland and Tow
Boat.</h3>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold;">ARTICLE VII</font><br>
<br>
NEGATIVE COVENANTS</font></b></h1>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Until
the Commitments have expired or terminated and the principal of and interest on
each Loan, all Reimbursement Obligations </font>and</font> all fees and other amounts (other than
contingent liability obligations) payable hereunder have been paid in full
Borrower covenants and agrees with Lenders that:</p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Fixed
Charge Coverage Ratio</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not permit
the Fixed Charge Coverage Ratio as of the end of any fiscal quarter to be less
than 1.85 to 1.00.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>First
Lien Funded Debt to EBITDA Ratio</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Until the first date
after the Effective Date on which (i) the Tranche B Commitments shall have been
terminated and the Bridge Loan and the Tranche B Loans shall have been paid in
full and (ii) K-Sea and its consolidated Affiliates (including, without
limitation, Borrower and the Guarantors) shall not have outstanding (A) any
Indebtedness secured by a Second-Priority Lien or (B) any Subordinated
Indebtedness (the first date the events set forth in both clauses (i) and (ii)
herein have occurred being called, the &#147;<b><u style="font-weight:bold;">Adjustment Date</u></b>&#148;),
Borrower shall not permit </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">83</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the First Lien
Funded Debt to EBITDA </font>Ratio
at any time during each period set forth below to be greater than the ratio set
forth below with respect to such period:</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="84%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:84.28%;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Period</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:12.3%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Ratio</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.42%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="84%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:84.28%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective Date
  to December 31, 2007</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0pt .7pt 0pt 0pt;width:12.3%;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.25
  to 1.00</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="84%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:84.28%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">January 1, 2008 and
  thereafter</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.3%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.00 to 1.00</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Total
Funded Debt to EBITDA Ratio</u>.</b></h2>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not permit
the Total Funded Debt to EBITDA </font>Ratio at any time to be greater than 4.75 to 1.00; <u>provided</u>
that from and after the Adjustment Date, Borrower shall not permit the Total
Funded Debt to EBITDA Ratio at any time
during each period set forth below to be greater than the ratio set forth below
with respect to such period:</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="84%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:84.38%;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Period</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:12.22%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Ratio</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.42%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="84%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:84.38%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adjustment Date
  to and including June 30, 2009</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.22%;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.00
  to 1.00</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="84%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:84.38%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 1, 2009 and
  thereafter</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.22%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.75 to 1.00</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.04</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Asset
Coverage Ratio</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not permit the Asset Coverage Ratio as
of the last day of each fiscal quarter to be less than 1.25 to 1.00.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.05</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Liens</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall not and shall not permit any Subsidiary Guarantor or any charterer of the
Pool Vessels or any of them to create, assume or suffer to exist any Lien of
any kind upon (i) the Collateral except for (A) Liens in favor of the
Administrative Agent and the Collateral Trustee, (B) Permitted Liens and (C) in
the event such Liens are granted to secure the Bridge Loan pursuant to the
terms of the Bridge Loan Agreement, Permitted Bridge Loan Liens or (ii) any of
Borrower&#146;s or any Subsidiary Guarantor&#146;s accounts receivable except for (A)
Liens in favor of the Administrative Agent and the Collateral Trustee, (B)
Permitted Liens and Liens of the type described in the definition of &#147;<b><u style="font-weight:bold;">Permitted Liens</u></b>&#148; in respect of all
vessels owned by Borrower or any direct or indirect Subsidiary of Borrower, (C)
any Lien on any property or asset of Borrower or any Subsidiary Guarantor
existing on the Effective Date and set forth on <b>Schedule 7.05</b>, <u>provided</u> that (1) such Lien shall not
apply to any other property or asset of Borrower or any Subsidiary Guarantor
and (2) such Lien shall secure only those obligations which it secures on the
Effective Date and any extensions, renewals and replacements thereof that do
not increase the outstanding principal amount thereof, (D) Permitted Bridge
Loan Liens and any Second-Priority Lien securing Indebtedness permitted by
Section 7.12(a) the proceeds of which are used to repay in whole or in part the
Bridge Loan and the Tranche B Loans, and (E) Liens on charters, charter hire,
freights or earnings with respect to any vessel (other than a Pool Vessel)
granted in connection with the granting of a preferred mortgage on any such
vessel after the Effective Date.</h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">84</font></p>
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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Prior to
the repayment in full of the Bridge Loan and the repayment in full of the
Tranche B Loans and the termination of the Tranche B Commitments, Borrower
shall not and shall not permit any Subsidiary Guarantor or any charterer of any
vessels or any of them to create, assume or suffer to exist any Lien of any
kind upon any of Borrower&#146;s or any Subsidiary Guarantor&#146;s property or assets
(including, without limitation, accounts receivable and any vessel not included
as a Pool Vessel) except for:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Liens
in favor of the Administrative Agent and the Collateral Trustee;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Permitted
Liens and Liens of the type described in the definition of &#147;<b><u style="font-weight:bold;">Permitted Liens</u></b>&#148; in respect of all
vessels owned by Borrower or any direct or indirect Subsidiary of Borrower;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Liens
on fixed or capital assets acquired, constructed or improved by Borrower or any
Subsidiary Guarantor, <u>provided</u> that (A) such Liens secure Indebtedness
permitted by clause (vi) of Section 7.12(a), (B) such Liens and the
Indebtedness secured thereby are incurred prior to or within 90 days after such
acquisition or the completion of such construction or improvement, (C) the
Indebtedness secured thereby does not exceed the cost of acquiring,
constructing or improving such fixed or capital assets and (D) such Lien shall
not apply to any other property or asset of Borrower or any Subsidiary
Guarantor;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Lien on any property or asset of Borrower or any Subsidiary Guarantor existing
on the Effective Date and set forth on <b>Schedule
7.05</b>, <u>provided</u> that (A) such Lien shall not apply to any
other property or asset of Borrower or any Subsidiary Guarantor and (B) such
Lien shall secure only those obligations which it secures on the Effective Date
and any extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof; and</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Permitted
Bridge Loan Liens and any Second-Priority Lien securing Indebtedness permitted
by Section 7.12(a) the proceeds of which are used to repay in whole or in part
the Bridge Loan and the Tranche B Loans.</h5>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 7.06</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No Changes in Borrower</u>.</b>&#160; Borrower shall not (a)&nbsp;materially change
its business; (b)&nbsp;change the form of organization of its business; or
(c)&nbsp;without thirty (30) days&#146; prior written notice to the Administrative
Agent, change its name or jurisdiction or organization.</h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.07</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>No
Disposition of Assets</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Without the prior written consent of Lenders (which
shall not be unreasonably withheld), Borrower shall not, and shall not permit
any Subsidiary Guarantor to, directly or indirectly sell, lease (other than a
charter of a Pool Vessel permitted under the Mortgage), transfer, assign,
abandon, exchange or otherwise relinquish possession or dispose of any part of
the Collateral or any material portion of its other assets (other than (i)
Collateral or other assets that are obsolete or worn out, or equipment disposed
of, if worn out, and replaced with equipment of the same or better quality and
value, in the ordinary course of business, (ii) sales, leases, transfers,</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">assignments, abandonments,
exchanges, relinquishments of possession or dispossessions of Collateral or
other assets having an aggregate value not to exceed $1,000,000 during the term
hereof), (iii) the Phase Two Transactions and (iv) after the consummation of the Phase Two Transactions, in connection
with the dissolution by Borrower of Diving, Interisland, Tow Boat and Marine
Logistics, Inc. (as each such Subsidiary shall have been converted to a limited
liability company)).</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.08</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Fundamental
Changes</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
will not, and will not permit any Subsidiary Guarantor to, merge into or
consolidate with any other Person, or permit any other Person to merge into or
consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of its
assets, or all or substantially all of the stock of any of its Subsidiaries (in
each case, whether now owned or hereafter acquired), or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Default shall have occurred and be continuing; <u>provided</u> (i)&nbsp;any
Person may merge into Borrower in a transaction in which Borrower is the
surviving corporation, (ii)&nbsp;any Person may merge into&#160; any Subsidiary in a transaction in which the
surviving entity is a Subsidiary, (iii)&nbsp;any Subsidiary Guarantor may sell,
transfer, lease or otherwise dispose of its assets to Borrower or to another
Subsidiary Guarantor, (iv)&nbsp;any Subsidiary Guarantor (including, without
limitation, after the consummation of
the Phase Two Transactions, Diving, Interisland, Tow Boat and Marine Logistics,
Inc. (as each such Subsidiary shall have been converted to a limited liability
company)) may liquidate or dissolve if Borrower determines in good faith
that such liquidation or dissolution is in the best interests of Borrower and
is not materially disadvantageous to Lenders and (v) the Credit Parties may
consummate the Phase Two Transaction.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
will not, and will not permit any of its Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by
Borrower, or related to its Subsidiaries on the date of execution of this
Agreement.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.09</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Transactions
with Affiliates</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will not, and will not permit any of its
Subsidiaries to, sell, lease or otherwise transfer any property or assets to,
or purchase, lease or otherwise acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates, except
(a)&nbsp;in the ordinary course of business at prices and on terms and
conditions not less favorable to Borrower or such Subsidiary than could be
obtained on an arm&#146;s-length basis from unrelated third parties,
(b)&nbsp;transactions between or among Borrower and its Subsidiaries not
involving any other Affiliate (c)&nbsp; any transaction permitted by
Section&nbsp;7.08 hereof and (d) the Phase Two Transactions; <u>provided</u>
that the foregoing provisions of this Section&nbsp;7.09 shall not prohibit any
such Person from declaring or paying any lawful Distributions so long as, after
giving effect thereto, no Default shall have occurred and be continuing.&#160; No funds provided by Lenders to Borrower
hereunder shall be employed for purposes other than corporate purposes of
Borrower and for use in Borrower&#146;s business.</font></p>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.10</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Restrictive
Agreements</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower will not, and will not permit any Subsidiary
Guarantor to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any condition
upon (a)&nbsp;the ability of Borrower or any Subsidiary Guarantor to create,
incur or permit to exist any Lien upon any of its property or assets, which
restriction (or condition) is more restrictive, in substance, than the
restrictions in Section&nbsp;7.05 hereof, or (b)&nbsp;the ability of any
Subsidiary Guarantor to pay Distributions or other distributions with respect
to any shares of its capital stock or to make or repay loans or advances to
Borrower or any other Subsidiary or to guaranty Indebtedness of Borrower or any
other Subsidiary; <u>provided</u> that (i)&nbsp;the foregoing shall not apply
to restrictions and conditions imposed by law or by this Agreement,
(ii)&nbsp;the foregoing shall not apply to restrictions and conditions existing
on the date hereof (but shall apply to any extension or renewal of, or any
amendment or modification expanding the scope of, any such restriction or
condition), (iii)&nbsp;the foregoing shall not apply to customary restrictions
and conditions contained in agreements relating to the sale of a Subsidiary
pending such sale, <u>provided</u> that such restrictions and conditions apply
only to the Subsidiary that is to be sold and such sale is permitted hereunder,
(iv)&nbsp;clause (a) of this Section shall not apply to restrictions or
conditions imposed by any agreement relating to secured Indebtedness permitted
by this Agreement if such restrictions or conditions apply only to the property
or assets securing such Indebtedness and (v)&nbsp;clause (a) of this Section
shall not apply to customary provisions in leases and other contracts
restricting the assignment thereof.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.11</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Limitations
on Advances and Distributions</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not
make distributions to any limited or general partner of Borrower during the
continuance of an Event of Default if, following the occurrence of such Event
of Default, Lenders send a notice to Borrower asserting or confirming such
Event of Default (regardless of whether any notice shall have been required to
create such Event of Default in any case).&#160;
Borrower shall not make any loans or advances to any Affiliate or
related Persons of Borrower, except K-Sea, any Excluded Subsidiary and any
Subsidiary Guarantor; <u>provided</u> that, (i) except for the loan described
in clause (ii) of this proviso, the aggregate outstanding amount of all such loans
and advances to the Excluded Subsidiaries shall not exceed $2,000,000 at any
one time and (ii) Borrower may make a loan to K-Sea Canada Corp. in a principal
amount not to exceed $13,100,000.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.12</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Limitations
on Other Indebtedness</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Prior to
the repayment in full of the Bridge Loan and the repayment in full of the
Tranche B Loans and the termination of the Tranche B Commitments, Borrower
shall not, and will not permit any Subsidiary to, create, incur, assume or
permit to exist any Indebtedness, except:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indebtedness
under the Loan Documents;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indebtedness
under the Bridge Loan Agreement, including any extensions, renewals or
replacements of any such Indebtedness that do not increase the</h5>


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<h5 style="font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">outstanding principal amount thereof and are
otherwise on terms and conditions reasonably acceptable to the Administrative
Agent;</font></h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indebtedness
constituting an extension, renewal or replacement of the Tranche B Loans that
does not increase the outstanding principal amount thereof and is otherwise on
terms and conditions reasonably acceptable to the Administrative Agent;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Subordinated
Indebtedness the proceeds of which are used to repay the Bridge Loan or the
Tranche B Loans;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indebtedness
existing on the Effective Date and set forth on <b>Schedule 7.12</b>, including any extensions, renewals or
replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof;</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indebtedness
incurred to finance the acquisition, construction or improvement of any fixed
or capital assets, including Capital Lease Obligations, and any Indebtedness
assumed in connection with the acquisition of any such assets or secured by a
Lien on any such assets prior to the acquisition thereof (and not created in
contemplation of such acquisition), and extensions, renewals and replacements
of any such Indebtedness that do not increase the outstanding principal amount
thereof, <u>provided</u> that (i) such Indebtedness is incurred prior to or
within 90 days after such acquisition or the completion of such construction or
improvement, (ii) such Indebtedness does not exceed the cost of acquiring,
constructing or improving such assets, (iii) both before and after giving
effect to the incurrence of such Indebtedness, no Default shall have occurred
and be continuing and (iv) the aggregate principal amount of Indebtedness
permitted by this clause (d) shall not exceed $10,000,000 at any time
outstanding; and</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indebtedness
of a Subsidiary to any other Subsidiary and of any Subsidiary to Borrower.</h5>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Prior to
the repayment in full of the Bridge Loan and the repayment in full of the
Tranche B Loans and the termination of the Tranche B Commitments, Borrower
shall not, and it will not permit any Subsidiary to, (i) issue any preferred
equity securities (other than issuances of preferred equity securities the Net
Proceeds from which shall be used to repay the Bridge Loan or the Tranche B
Loans) or (ii) be or become liable in respect of any obligation (contingent or
otherwise) to purchase, redeem, retire, acquire or make any other payment in
respect of any shares of equity securities of Borrower or any Subsidiary or any
option, warrant or other right to acquire any such shares of equity securities.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.13</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Limitation
on Investments, Loans, Advances, Guarantees and Acquisitions</u>.</b></h2>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prior to the
repayment in full of the Bridge Loan and the repayment in full of the Tranche B
Loans and the termination of the Tranche B Commitments, </font>Borrower shall not, and shall not permit any
of the Subsidiaries to, purchase, hold or acquire (including pursuant to any
merger) any Capital Stock, evidences of Indebtedness or other securities
(including any option, warrant or other right to acquire any of the foregoing)
of, make or permit to exist any loans or advances</p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to, Guarantee any obligations of, or make or permit
to exist any investment or any other interest in, any other Person, or purchase
or otherwise acquire (in one transaction or a series of transactions (including
pursuant to any merger)) any assets of any other Person constituting a business
unit, or purchase, hold or acquire any &#147;derivative&#148; (other than a Hedging
Agreement entered in to with any Lender (or any Affiliate thereof) as a
counterparty permitted hereby), except:</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>as
permitted by Sections 7.15 and 7.16;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>investments
existing on the Effective Date and set forth on <b>Schedule 7.13</b>;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>investments
made by Borrower in the Capital Stock of its Subsidiaries and investments made
by a Subsidiary in the Capital Stock of any other Subsidiary; and</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indebtedness
permitted to be incurred pursuant to Section 7.12.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.14</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Limitations
on Negative Pledge</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not suffer to exist in favor of any
Person other than Administrative Agent, the Collateral Trustee and the Lenders
any agreement prohibiting Borrower or any Subsidiary from entering into or
suffering to exist any agreement that prohibits or conditions the creation or
assumption of any Lien upon any of its property or assets except those in favor
of such Person (any such agreement, a &#147;<b><u style="font-weight:bold;">Negative Pledge</u></b>&#148;).&#160; The forgoing shall not apply to (i) customary
restrictions and conditions contained in agreements relating the sale of a
Subsidiary pending such sale, <u>provided</u> such restrictions and conditions
apply only to the Subsidiary that is to be sold and such sale is permitted
hereunder, (ii) customary restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted to be incurred hereunder if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness or (iii)&nbsp;customary provisions in leases and other contracts
restricting the assignment thereof.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.15</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Acquisitions</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not, and shall not permit any of its
Subsidiaries to, purchase, hold or acquire (including pursuant to any merger)
any capital stock or other securities (including any option, warrant or other
right to acquire any of the foregoing) of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of transactions (including pursuant to
any merger)) any assets of any other Person constituting a business unit,
except (a) as permitted by Section 7.16 and (b) Permitted Acquisitions by
Borrower or any Subsidiary; <u>provided</u> that Borrower shall have delivered
to the Administrative Agent and the Lenders not less than 15 Business Days
prior to the consummation of any such Permitted Acquisition a certificate of a
Financial Officer of Borrower in form and substance satisfactory to the
Administrative Agent evidencing projected pro forma compliance with Sections
7.01, 7.02, 7.03 and 7.04 after giving effect to such Permitted Acquisition for
the period from the date of such Permitted Acquisition to the Maturity Date.</font></p>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.16</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Partnerships,
Joint Ventures</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">B</font>orrower shall not, and shall not permit any
of its Subsidiaries to, become a general partner in any general or limited
partnership or joint venture, except with respect to any purchase or other
acquisition of any capital stock or other ownership or profit interest,
warrants, rights, options, obligations or other securities of any Person, any
capital contribution to such Person or any other investment in such Person
which individually or in the aggregate with all such other investments during
the term hereof shall not exceed $20,000,000.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.17</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Capital
Expenditures</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not make or become obligated to make,
and shall not permit any of its Subsidiaries to make or become obligated to
make, Capital Expenditures in respect of any fiscal year in an amount greater
than $75,000,000 in the aggregate.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
7.18</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Prepayments
of Indebtedness</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Borrower shall not, and shall not permit any
Subsidiary to, prepay or obligate itself to prepay any Indebtedness, except (i)
Indebtedness under the Loan Documents, (ii) Indebtedness under the Bridge Loan
Agreement and (iii) refinancing on terms equal or more favorable to Borrower of
Indebtedness set forth on <b>Schedule 7.12</b>.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE VIII</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EVENTS OF DEFAULT AND REMEDIES</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
8.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Events
of Default</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of the following events shall constitute &#147;<b>Events of Default</b>&#148;:</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall fail to pay any principal of or interest on any Loan or any fee, expenses
or any other amount payable under this Agreement, when and as the same shall
become due and payable, and such failure shall continue unremedied for a period
of two (2) Business Days;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
representation or warranty made or deemed made by or on behalf of Borrower or
any Subsidiary (i)&nbsp;in this Agreement or any amendment or modification
hereof, shall prove to have been incorrect when made or incorrect in any
material respect when deemed made or (ii)&nbsp;in any report, certificate,
financial statement or other document furnished pursuant to or in connection
with this Agreement or any amendment or modification thereof, shall prove to
have been incorrect in any material respect when made or deemed made;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall fail to observe or perform any covenant, condition or agreement contained
in Sections&nbsp;6.04, 6.05, 6.06(a), 6.08, 6.10, 6.11, 6.12, 6.14, 7.01, 7.02,
7.03, 7.04, 7.10 or 7.18 hereof;</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall fail to observe or perform any covenant, condition or agreement contained
in this Agreement (other than those specified in clause (a) or (c) of this
Section&nbsp;8.01), and such failure shall continue unremedied for a period of
thirty (30) days after notice thereof from the Administrative Agent to
Borrower;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Credit Party shall fail to make any payment (whether of principal or interest
and regardless of amount) in respect of any Material Indebtedness, when and as
the same shall become due and payable and after any applicable grace and/or
notice period;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
event or condition occurs that results in any Material Indebtedness becoming
due prior to its scheduled maturity or that enables or permits (after giving
effect to any applicable grace period and/or notice period) the holder or
holders of any Material Indebtedness or any trustee or agent on its or their
behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its
scheduled maturity; <u>provided</u> that this clause (f) shall not apply to
secured Indebtedness that becomes due as a result of the voluntary sale,
transfer or total loss of the property or assets securing such Indebtedness;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i)&nbsp;liquidation, reorganization or other relief in respect
of any Credit Party or its debts, or of a substantial part of its assets, under
any Federal, state or foreign bankruptcy, insolvency, receivership or similar
law now or hereafter in effect or (ii)&nbsp;the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for any
Credit Party or for a substantial part of its assets, and, in any such case,
such proceeding or petition shall continue undismissed for sixty (60) days or
an order or decree approving or ordering any of the foregoing shall be entered;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Credit Party shall (i)&nbsp;voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii)&nbsp;consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition
described in clause (g) of this Section&nbsp;8.01, (iii)&nbsp;apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for Borrower or any Subsidiary or for a
substantial part of its assets, (iv)&nbsp;file an answer admitting the material
allegations of a petition filed against it in any such proceeding,
(v)&nbsp;make a general assignment for the benefit of creditors or
(vi)&nbsp;take any action for the purpose of effecting any of the foregoing;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Credit Party shall become unable, admit in writing or fail generally to pay its
debts as they become due;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>one or
more judgments (excluding only the covered amounts of insured claims, exclusive
of deductibles and excess liability beyond coverage limits and provided that
underwriters have not raised defenses to coverage) for the payment of money in
an aggregate amount in excess of $1,000,000.00 shall be rendered against any
Credit Party or any combination thereof and the same shall remain undischarged
for a period of thirty (30) consecutive days</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of such Credit Party to enforce any
such judgment and either (i)&nbsp;enforcement proceedings shall have been
commenced by any creditor upon any such judgment or order, or (ii)&nbsp;there
shall be a period of ten (10) consecutive days after entry thereof during which
a stay of enforcement of any such judgment or order, by reason of a pending
appeal, or otherwise, shall not be in effect; <u>provided</u> that any such
judgment or order shall not give rise to an Event of Default under this
subsection (j) if and for so long as and to the extent of (A)&nbsp;the amount
of such judgment or order is covered by a valid and binding policy of insurance
between the defendant and the insurer covering full payment thereof, and
(B)&nbsp;such insurer has been notified, and has not disputed the claim for
payment, of the amount of such judgment or order;</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>an ERISA
Event shall have occurred that, in the opinion of Required Lenders, when taken
together with all other ERISA Events that have occurred, could reasonably be
expected to result in a Material Adverse Effect;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a Change
in Control shall have occurred;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except in
connection with the Phase Two Transactions, Borrower, K-Sea or any Subsidiary
Guarantor is dissolved or otherwise fails to maintain its existence in good
standing, or the usual business of Borrower ceases or is suspended;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except
for specific matters disclosed in writing to the Lenders prior to the Effective
Date, any indictment occurring after the Effective Date, of Borrower under any
criminal statute, including OPA or any similar Environmental Law, or commencement
of criminal proceedings against Borrower, pursuant to which statute or
proceeding the penalties or remedies sought or available include forfeiture of
any of the property of Borrower and such proceedings shall continue for more
than 30 days.&#160; For issues relating to OPA
or similar Environmental Laws, the Lenders agree that an Event of Default shall
not bee deemed to have occurred prior to the date on which Borrower receives
notice thereof from the Administrative Agent;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
Mortgage Event of Default shall have occurred and be continuing under and as
defined in the Mortgage;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>receipt
by the Lenders of their first notice of an oil spill or discharge or a
hazardous discharge or an Environmental Action, in each case of a material
nature, from a source other than Borrower, where the Lenders do not receive
notice (which may be given in oral form, <u>provided</u> that such oral notice
is followed with all due dispatch by written notice given by certified mail,
return receipt requested) of such hazardous discharge or environmental
complaint from Borrow within two (2) Business Days of the time the Lenders
first receive said notice from a source other than Borrower, or action by any
federal, state, or local agency to foreclose a lien upon any or all of the
assets, equipment, property, leaseholds or other facilities of Borrower
(including, but not limited to, the Pool Vessels or the other Collateral) by
reason of the occurrence of a hazardous discharge or environmental complaint;</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a change
occurs in the financial condition of Borrower or K-Sea which is likely to have
a Material Adverse Effect on the Collateral or Borrower&#146;s ability to perform
its obligations hereunder;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>breach
by K-Sea of the Parent Guaranty;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>breach by
any Subsidiary of Borrower of its Subsidiary Guaranty;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
material provision of any Loan Document after delivery thereof shall for any
reason cease to be valid and binding on or enforceable against any Credit Party
which is party to it, or any such Credit Party shall so state in writing;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall have granted any security interest in any of the outstanding Collateral
under this Agreement to any Person other than (i) a Lender, the Administrative
Agent or the Collateral Trustee and (ii) KBCM Bridge LLC as administrative
agent and collateral trustee under the Bridge Loan Agreement;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except in
connection with the Phase Two Transactions, any Organizational Document of
Borrower or any Guarantor shall be amended, revoked or rescinded in any
material way without the prior written consent of Lenders;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a
proceeding shall have been commenced on behalf of the United States to effect
the forfeiture of any of the Pool Vessels or any notice shall have been issued
on behalf of the United States of the seizure of any of the Pool Vessels and such
forfeiture could reasonably be expected to have a Material Adverse Effect;</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
Credit Party which owns a Pool Vessel shall lose its status as a citizen of the
United States for the purpose of operating vessels in the coastwise trade in
accordance with Chapter 505 of Title
46, United States Code; or</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>K-Sea
shall at any time fail to maintain its status as an exempt partnership under
section 7704(c) of the Code.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
8.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Remedies</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon the
occurrence of an Event of Default, or at any time thereafter during the
continuance thereof, the Administrative Agent (i) shall at the request, or may
with the consent, of the Required Lenders, by notice to Borrower, declare all
of the Commitments of each Lender and of the L/C Issuer to issue Letters of
Credit, to be terminated, whereupon the same shall forthwith terminate, and
(ii) shall at the request, or may with the consent, of the Required Lenders,
(A) by notice to Borrower, declare the Notes, all interest thereon and all
other amounts payable under this Agreement and the other Loan Documents to be
forthwith due and payable, whereupon the Notes, all such interest and all such
other amounts shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived by Borrower and (B) by notice to each party required
under the terms of any agreement in support of which a Standby Letter of Credit
is issued, request that all Obligations under such agreement be declared to be
due and payable; <u>provided</u>, <u>however</u>, in the</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">case
of an Event of Default specified in Section 8.01(g) or 8.01(h), (x) the
obligation of each Lender to make Loans and of the L/C Issuer to issue Letters
of Credit shall automatically be terminated and (y) the Notes, all such
interest and all such amounts shall automatically become and be due and
payable, without presentment, demand, protest or any notice of any kind, all of
which are hereby expressly waived by Borrower.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that
the Loans, all accrued and unpaid interest thereon and all other amounts owing
under the Loan Documents shall have been declared due and payable pursuant to
the provisions of this Section 8.02, (i) the Administrative Agent and the
Collateral Trustee (A) upon the direction of the Required Lenders, shall
proceed to enforce the rights of the holders of the Notes and the Reimbursement
Obligations by suit in equity, action at law and/or other appropriate
proceedings, whether for payment or the specific performance of any covenant or
agreement contained in the Loan Documents and (B) may exercise any and all
rights and remedies provided to the Administrative Agent or the Collateral
Trustee by the Loan Documents and (ii) Borrower shall deposit in the Cash
Collateral Account Cash Collateral in an amount equal to the Letter of Credit
Exposure.&#160; Except as otherwise expressly
provided in the Loan Documents, Borrower expressly waives presentment, demand,
protest and all other notices of any kind in connection with the Loan
Documents.&#160; Borrower hereby further
expressly waives and covenants not to assert any appraisement, valuation, stay,
extension, redemption or similar laws, now or at any time hereafter in force
which might delay, prevent or otherwise impede the performance or enforcement
of any Loan Document.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
8.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Lenders&#146;
Cure of Third Party Agreement Default</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Administrative Agent (at the instruction of the
Lenders) or any Lender may, at its option, cure any default by Borrower under
any agreement with a third party or pay or bond on appeal any judgment entered
against Borrower, discharge taxes, Liens, security interests or other
encumbrances at any time levied on or existing with respect to the Collateral
and pay any amount, incur any expense or perform any act which, in such Lender&#146;s
sole judgment, is necessary or appropriate to preserve, protect, insure,
maintain, or realize upon the Collateral.&#160;
The Administrative Agent and the Lenders may charge Borrower&#146;s Loan
Account for any amounts so expended, such amounts to be repayable by Borrower on
demand.&#160; Neither the Administrative Agent
nor the Lenders shall be under any obligation to effect such cure, payment,
bonding or discharge, and shall not, by doing so, be deemed to have assumed any
obligation or liability of Borrower.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE IX</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE AGENTS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Authorization
and Action</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Lender hereby appoints the Administrative Agent as such and as &#147;Collateral
Trustee&#148; under the Mortgages and authorizes it to take such action as agent and
as &#147;Collateral Trustee&#148; on its behalf and to exercise such powers and
discretion under this Agreement and the other Loan Documents (including the
Mortgages) as are delegated to it by the</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">terms hereof and thereof,
together with such powers and discretion as are reasonably incidental
thereto.&#160; KeyBank hereby accepts its
appointment as Administrative Agent and as Collateral Trustee.&#160; The Administrative Agent shall have no duties
or responsibilities except those expressly set forth in this Agreement and the
other Loan Documents and shall not be a fiduciary for any Lender.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As to any
matters not expressly provided for by the Loan Documents (including, without
limitation, enforcement or collection of the Notes), the Administrative Agent
shall not be required to exercise any discretion or take any action, but shall
be required to act or to refrain from acting (and shall be fully protected in
so acting or refraining from acting) upon the instructions of the Required
Lenders, and such instructions shall be binding upon all Lenders and all
holders of Notes and any action taken or failure to act pursuant thereto shall
be binding on all the Lenders; <u>provided</u>, <u>however</u>, the
Administrative Agent shall not be required to take any action that exposes the
Administrative Agent to personal liability or that is contrary to this
Agreement, any other Loan Document or applicable law and except for action
expressly required by the Administrative Agent hereunder or under the Loan
Documents, the Administrative Agent shall in all cases be fully justified in
failing or refusing to act hereunder or thereunder unless it shall be
indemnified to its satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to
take any such action.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Agent&#146;s
Reliance, Etc</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neither the Administrative Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken
or omitted to be taken by it or them under or in connection with the Loan
Documents, except for its or their own gross negligence or willful
misconduct.&#160; Without limitation of the
generality of the foregoing, the Administrative Agent: (a) may treat the payee
of any Note as the holder thereof until the Administrative Agent receives and
accepts an Assignment and Acceptance entered into by the Lender that is the
payee of such Note, as assignor, and an Eligible Assignee, as assignee, as
provided in Section 10.07; (b) may consult with legal counsel (including
counsel for any Credit Party), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for recitals, any statements,
warranties or representations (whether written or oral) made in or in
connection with the Loan Documents; (d) shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants
or conditions of any Loan Document on the part of any Credit Party or to
inspect the property (including the books and records) of any Credit Party; (e)
shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to
be created under or in connection with, any Loan Document or any other
instrument or document furnished pursuant thereto; (f) shall incur no liability
under or in respect of any Loan Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telegram, telecopy
or telex) believed by it to be genuine and signed or sent by or on behalf of
the proper party or parties; and (g) may employ agents and attorneys-in-fact
and shall not be answerable for the negligence or misconduct of any such agents
or attorneys-in-fact selected by it with reasonable care.</font></p>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>KeyBank
and Affiliates</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to its Commitment, the Loans made by it
and the Note issued to it, KeyBank shall have the same rights and powers under
the Loan Documents as any other Lender and may exercise the same as though it
were not the Administrative Agent; and the term &#147;Lender&#148; or &#147;Lenders&#148; shall,
unless otherwise expressly indicated, include KeyBank in its individual
capacity.&#160; KeyBank and its affiliates may
accept deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of
business with, any Credit Party, any of its Subsidiaries and any Person who may
do business with or own securities of any Credit Party or any such Subsidiary
and may accept fees and other consideration from Borrower or its Affiliates,
for services in connection with this Agreement, the other Loan Documents or
otherwise, all as if KeyBank were not the Administrative Agent and without any
duty to account therefor to the Lenders.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.04</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Lender
Credit Decision</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Lender acknowledges that it has, independently
and without reliance upon the Administrative Agent or any other Lender and
based on the financial statements referred to in Section 4.04 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement.&#160; Each Lender also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.05</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Indemnification.</u></b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Lender severally agrees to indemnify the Administrative Agent (to the extent
not promptly reimbursed by Borrower) from and against such Lender&#146;s ratable
share (determined as provided below) of any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred
by, or asserted against the Administrative Agent in any way relating to or
arising out of any of the Loan Documents or any transaction contemplated hereby
and thereby or any action taken or omitted by the Administrative Agent under
any of the Loan Documents; <u>provided</u>, <u>however</u>, no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements to the
extent resulting from the Administrative Agent&#146;s gross negligence or willful
misconduct.&#160; Without limitation of the
foregoing, each Lender agrees to reimburse the Administrative Agent promptly
upon demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by Borrower under Section
10.06, to the extent that the Administrative Agent is not promptly reimbursed
for such costs and expenses by Borrower.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Lender severally agrees to indemnify the L/C Issuer (to the extent not promptly
reimbursed by Borrower) from and against such Lender&#146;s ratable share
(determined as provided below) of any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever that may be</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">imposed on, incurred by, or
asserted against the L/C Issuer in any way relating to or arising out of any of
the Loan Documents or any action taken or omitted by the L/C Issuer under any
of the Loan Documents; <u>provided</u>, <u>however</u>, no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the L/C Issuer&#146;s gross negligence or willful misconduct.&#160; Without limitation of the foregoing, each
Lender agrees to reimburse the L/C Issuer promptly upon demand for its ratable
share of any costs and expenses (including, without limitation, fees and
expenses of counsel) payable by Borrower under Section 10.06, to the extent
that the L/C Issuer is not promptly reimbursed for such costs and expenses by
Borrower.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
purposes of Sections 9.05(a) and 9.05(b), the Lenders&#146; respective ratable
shares of any amount shall be determined, at any time, according to the sum of
(i) the aggregate principal amount of the Loan outstanding at such time and
owing to the Lenders, (ii)&nbsp;their respective Applicable Percentage of the
aggregate Letter of Credit Exposure outstanding at such time and (iii) their
respective unused Commitments at such time; <u>provided</u> that the aggregate
principal amount of all unreimbursed drawings under all Letters of Credit owing
to the L/C Issuer shall be considered to be owed to the Lenders ratably in
accordance with their respective Commitments.&#160;
In the event that any Lender shall have failed at any time to make
available to the Administrative Agent or the L/C Issuer any amounts payable by
such Lender under Sections 2.05, 2.13(d) or 2.14, such Lender&#146;s Commitment with
shall be considered to be unused for purposes of this Section 9.05 to the
extent of the amount of non-payment.&#160; The
failure of any Lender to reimburse the Administrative Agent or the L/C Issuer,
as the case may be, promptly upon demand for its ratable share of any amount
required to be paid by the Lenders to the Administrative Agent or the L/C
Issuer, as the case may be, as provided herein shall not relieve any other
Lender of its obligation hereunder to reimburse the Administrative Agent or the
L/C Issuer, as the case may be, for its ratable share of such amount, but no
Lender shall be responsible for the failure of any other Lender to reimburse
the Administrative Agent or the L/C Issuer, as the case may be, for such other
Lender&#146;s ratable share of such amount.&#160;
Without prejudice to the survival of any other agreements of any Lender
hereunder, the agreement and obligations of each Lender contained in this
Section 9.05 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under the other Loan Documents.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.06</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Successor
Administrative Agents</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Administrative Agent may resign at any time by
giving written notice thereof to the Lenders and Borrower and may be removed at
any time with or without cause by the Required Lenders.&#160; Upon any such resignation or removal, the
Required Lenders shall have the right (subject to the approval of Borrower,
such approval not to be unreasonably withheld or delayed; <u>provided</u> that
Borrower shall have no right of approval if at the applicable time of the
proposed appointment any Event of Default shall have occurred and be
continuing) to appoint a successor Administrative Agent.&#160; If no successor Administrative Agent shall
have been so appointed by the Required Lenders, and shall have accepted such
appointment, within thirty (30) days after the retiring Administrative Agent&#146;s
giving of notice of resignation or the Required Lenders&#146; removal of the
retiring Administrative Agent, then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent, which shall be
a Lender which is a commercial bank organized under the laws of the United
States or of any State thereof and</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">having a combined capital
and surplus of at least $250,000,000.&#160;
Upon the acceptance of any appointment as Administrative Agent hereunder
by a successor Administrative Agent and upon the execution and filing or
recording of such financing statements, or amendments thereto, and such other
instruments or notices, as may be necessary or desirable, or as the Required
Lenders may request, in order to continue the perfection of the Liens granted
or purported to be granted by the Loan Documents, such successor Administrative
Agent shall succeed to and become vested with all the rights, powers,
discretion, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from all of its duties and
obligations under this Agreement and the other Loan Documents.&#160; After any retiring Administrative Agent&#146;s
resignation or removal hereunder as Administrative Agent, the provisions of
this Article IX shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent.&#160; Borrower shall not be responsible for any
costs or expenses arising out of the replacement of the Administrative Agent
pursuant to this Section.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Anything contained
in this Section 9.06 to the contrary notwithstanding, no Person may become a
successor Administrative Agent or Collateral Trustee under a Mortgage unless it
is a Coastwise Citizen.&#160; The
Administrative Agent (and each successor Administrative Agent upon becoming
Administrative Agent) hereby represents and warrants that it is a Coastwise
Citizen and covenants that it will maintain its status as a Coastwise Citizen.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.07</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Events
of Default</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Administrative Agent shall not be deemed to have
knowledge of the occurrence of a Default (other than the non-payment of
principal of or interest on Loans) unless the Administrative Agent has received
notice from a Lender or Borrower specifying such Default and stating that such
notice is a &#147;Notice of Default&#148;.&#160; In the
event that the Administrative Agent receives such a notice of the occurrence of
a Default, the Administrative Agent shall give notice thereof to the Lenders
(and shall give each Lender notice of each such non-payment).&#160; The Administrative Agent shall (subject to
Section 9.01(b) hereof) take such action with respect to such Default as shall
be directed by the Required Lenders.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.08</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Payments</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A payment
by Borrower to the Administrative Agent hereunder or any of the other Loan
Documents for the account of any Lender shall constitute a payment to such
Lender.&#160; The Administrative Agent agrees
promptly to distribute to each Lender such Lender&#146;s pro rata share of payments
received by the Administrative Agent for the account of the Lenders except as
otherwise expressly provided herein or in any of the other Loan Documents.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If in the
opinion of the Administrative Agent the distribution of any amount received by
it in such capacity hereunder, under the Notes or under any of the other Loan
Documents might involve it in liability, it may refrain from making
distribution until its right to make distribution shall have been adjudicated
by a court of competent jurisdiction.&#160; If
a court of competent jurisdiction shall adjudge that any amount received and
distributed by the Administrative Agent is to be repaid, each Person to whom
any such distribution shall have been made shall either repay to the
Administrative Agent its proportionate share of the amount so</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">adjudged to be repaid or shall
pay over the same in such manner and to such Persons as shall be determined by
such court.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.09</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Administrative
Agent May File Proofs of Claim</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial,
administrative or like proceeding or any assignment for the benefit of
creditors relative to Borrower or any of its Subsidiaries, the Administrative
Agent (irrespective of whether the principal of either Facility or any unpaid
reimbursement obligation under any outstanding Letters of Credit shall then be
due and payable as herein expressed or by declaration or otherwise and irrespective
of whether the Administrative Agent shall have made any demand on Borrower)
shall be entitled and empowered, by intervention in such proceeding, under any
such assignment or otherwise:</h3>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Facility or any unpaid reimbursement obligation
under any outstanding Letters of Credit and all other Obligations of Borrower
that are owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of the Lenders and the Administrative
Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and
their respective agents and counsel and all other amounts due the Lenders and
the Administrative Agent under Sections 2.09 and 10.06)<b>  </b>allowed in such proceeding or under any
such assignment; and</h5>

<h5 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt 36.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same.</h5>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such proceeding or under any such assignment is hereby
authorized by each Lender to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, nevertheless to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections 2.09
and 10.06.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Nothing
contained herein shall authorize the Administrative Agent to consent to or
accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations of Borrower
owed to such Lender or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding or under any such assignment.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
9.10</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Agents</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">None of the banks
or other Persons identified on the cover page of this Agreement or in the
preamble to this Agreement as a &#147;syndication agent&#148;, &#147;documentation agent&#148; or
any similar</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">title
shall have any right, power, obligation, liability, responsibility or duty to
any Person under this Agreement, any of the other Loan Documents or otherwise,
other than KeyBank in its capacity as Administrative Agent and Collateral
Trustee under this Agreement and the other Loan Documents and each Lender in
its capacity as a Lender.&#160; Without
limiting the foregoing, none of such banks or other Persons so identified shall
have or be deemed to have any fiduciary relationship with any other such bank
or other Person but such banks or other Persons shall have the benefit of the
provisions of Section 9.03.</font></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE X</font></b></h1>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MISCELLANEOUS</font></b></h1>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.01</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Notices</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows:</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if to
Borrower, to it at:</h3>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation
Partnership L.P.</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One Tower Center
Boulevard</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;Floor</p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">East Brunswick,
New Jersey&#160; 08816</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Chief Financial Officer</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier:&#160; (732) 565-3699</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with copies to:</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Baker Botts,
L.L.P.</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One Shell Plaza</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">910 Louisiana</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Houston,
Texas&#160; 77002</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Sean Wheeler, Esq.</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier:&#160; (713) 229-5868</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and:</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Holland&nbsp;&amp;
Knight, LLP</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">195 Broadway</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New
York&#160; 10007</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Christopher G. Kelly, Esq.</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier:&#160; (212) 385-9010</font></p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if to
Administrative Agent or Collateral Trustee (including in its capacity as a
Lender), to:</p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KeyBank National
Association</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">127 Public Square</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cleveland, Ohio
44114</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: KCIB
Loan Services</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier:&#160; (216) 689-5962</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with copies to:</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KeyBank National
Association</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">575 Fifth Ave.</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38th Floor</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New
York&#160; 10017</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Steven B. Vitale</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier:&#160;
(917) 368-2310</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Emmet, Marvin
&amp; Martin, LLP</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">120 Broadway</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, New York
10271</font></p>

<p style="margin:0pt 0pt .0001pt 144.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Richard S. Talesnick, Esq.</font></p>

<p style="margin:0pt 0pt 12.0pt 144.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Telecopier:&#160; (212) 238-3100</font></p>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if to any
other Lender, to it at its address (or telecopy number) set forth in the
Register.</h3>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any party hereto may change its address or telecopy
number for notices and other communications hereunder by notice to the other
parties hereto.&#160; All notices and other
communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.02</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Term and Termination</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The remaining term of this Agreement shall be&#160; from the date hereof until the seventh
Anniversary Date, with respect to the Tranche A Facility; and the term of this
Agreement shall be from the date hereof until the date that is 364 days after
the date hereof, with respect to the Tranche B Facility.&#160; Notwithstanding the foregoing, Administrative
Agent at the request of Required Lenders may terminate this Agreement
immediately upon the occurrence of an Event of Default.&#160; All Obligations shall become due and payable
as of any termination hereunder and, pending a final accounting, Lenders may withhold
any balances in Borrower&#146;s account (unless supplied with an indemnity
satisfactory to such Lender) to cover all of Borrower&#146;s Obligations, whether
absolute or contingent.&#160; All of Lenders&#146;
rights, Liens and security interests shall continue after any termination until
all Obligations have been paid and satisfied in full.</font></p>


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<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.03</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>K-Sea
as Agent for Borrower</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea shall be deemed the agent of Borrower in any
matter arising under this Agreement and the Administrative Agent, the L/C
Issuer and the Lenders shall be entitled to rely on the actions and
communication, or lack thereof, of K-Sea as being the actions or communications
or lack thereof of Borrower with respect to this Agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.04</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Discharge
of Borrower</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No termination of this Agreement shall relieve or
discharge Borrower of its Obligations, grants of Collateral, duties and
covenants hereunder or otherwise until such time as all Obligations to the
Administrative Agent, the L/C Issuer, the Collateral Trustee or the Lenders
have been indefeasibly paid and satisfied in full, including, without
limitation, the continuation and survival in full force and effect of all
security interests and Liens granted in favor of the Administrative Agent or
the Collateral Trustee in and upon all then existing and thereafter-arising or
acquired Collateral and all warranties and waivers of Borrower.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.05</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Waivers;
Amendments</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>No
failure or delay by Administrative Agent or any Lender in exercising any right
or power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.&#160; The rights and remedies of Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.&#160; No waiver of any provision of this Agreement
or consent to any departure by Borrower therefrom shall in any event be effective
unless the same shall be permitted by paragraph (b) of this Section, and then
such waiver or consent shall be effective only in the specific instance and for
the purpose for which given.&#160; Without
limiting the generality of the foregoing, the making of a Loan shall not be
construed as a waiver of any Default or Event of Default, regardless of whether
Administrative Agent or any Lender may have had notice or knowledge of such
Default at the time.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Neither
this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by
Borrower and the Required Lenders or by Borrower and the Administrative Agent
with the written consent of the Required Lenders; <u>provided</u> that no such
agreement shall (i)&nbsp;increase the Commitment of any Lender without the
written consent of such Lender, (ii)&nbsp;reduce the principal amount
outstanding of any Loan or reduce the rate of interest (except in connection
with a waiver of the applicability of any post-default increase in interest
rates) thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii)&nbsp;change the method of
computing interest or fees under the Loan Documents, without the written consent
of each Lender affected thereby, (iv) postpone the scheduled date of payment of
the principal amount of any Loan, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the
written consent of each Lender affected thereby, (v)&nbsp;change
Section&nbsp;2.13(b) or</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.13(c) in a manner that would
alter the pro rata sharing of payments required thereby without the written
consent of each Lender, (vi) release any Collateral (except incidental amounts
at the discretion of Administrative Agent or as agreed to pursuant to this
Agreement), (vii) release any Guarantor from its Guarantee, or limit its
liability in respect of such Guarantee, without the written consent of each
Lender or (viii)&nbsp;change any of the provisions of this Section&nbsp;or the
definition of &#147;<b><u style="font-weight:bold;">Required Lenders</u></b>&#148;
or any other provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of
each Lender; and, <u>provided</u>, <u>further</u>, that no such agreement shall
amend, modify or otherwise affect the rights or duties of the Administrative
Agent or the L/C Issuer hereunder without the prior written consent of the
Administrative Agent or the L/C Issuer, as the case may be.</font></h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.06</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Expenses;
Indemnity; Damage Waiver</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall pay (i)&nbsp;all reasonable itemized out-of-pocket expenses incurred by
the Administrative Agent and the Collateral Trustee and their respective
Affiliates, including, without limitation, the reasonable fees, charges and
disbursements of counsel for the Administrative Agent and the Collateral
Trustee, filing fees, search fees, appraisal fees, recording fees, field
examinations, syndication expenses, travel costs and other fees and expenses in
connection with any initial syndication of the credit facilities provided for
herein, the preparation and administration of this Agreement and the other Loan
Documents or any amendments, modifications or waivers of the provisions hereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), <u>provided</u> that Borrower shall receive an accounting of such
fees, expenses, charges and disbursements, and (ii)&nbsp;all out-of-pocket
expenses incurred by the Administrative Agent, the Collateral Trustee or any
Lender, including the reasonable fees, charges and disbursements of any counsel
for the Administrative Agent, the Collateral Trustee or any Lender (acting
under common counsel), in connection with the enforcement or protection of its
rights in connection with this Agreement, including its rights under this
Section, or in connection with the Loans made hereunder, including in connection
with any workout, restructuring or negotiations in respect thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
shall indemnify the Administrative Agent, the Collateral Trustee, the L/C
Issuer and each Lender, and each Related Party of any of the foregoing Persons
(each such Person being called an &#147;<b><u style="font-weight:bold;">Indemnitee</u></b>&#148;)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee (but excluding Taxes, it being
understood and agreed that Section&nbsp;2.12 hereof sets forth Borrower&#146;s
indemnity obligations with respect to Taxes), incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of
(i)&nbsp;the execution or delivery of this Agreement or any agreement or
instrument contemplated hereby, the performance by the parties hereto of their
respective obligations hereunder or the consummation of this Agreement or any
other transactions contemplated hereby, (ii)&nbsp;any Loan or the use of the
proceeds therefrom, (iii)&nbsp;the failure of the Administrative Agent or the
L/C Issuer seeking indemnification or of the L/C Issuer to honor a demand for
payment under any Letter of Credit or guaranty thereof as a result of any act
or omission, whether rightful or wrongful, of any present or future de jure or
de facto government or Governmental Authority, in each case other than to the
extent solely as a result of the gross</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">negligence or willful
misconduct of the Administrative Agent or the L/C Issuer (as finally determined
by a court of competent jurisdiction), (iv)&nbsp;any actual or alleged presence
or release of Hazardous Materials on or from any property owned or operated by
Borrower or any of its Subsidiaries, or any Environmental Liability related in
any way to Borrower or any of its Subsidiaries, or (v)&nbsp;any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; <u>provided</u> that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses are determined by
a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To the
extent that Borrower fails to pay any amount required to be paid by it to the
Administrative Agent, the Collateral Trustee or the L/C Issuer under paragraph
(a) or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent, the Collateral Trustee or the L/C Issuer, as the case may
be, such Lender&#146;s Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; <u>provided</u> that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred
by or asserted against the Administrative Agent, the Collateral Trustee or the
L/C Issuer, as the case may be, in its capacity as such.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>To the
extent permitted by Applicable Law, Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan, any Letter of Credit or the use of the proceeds thereof.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All
amounts due under this Section&nbsp;shall be payable promptly after written
demand therefor.&#160; All amounts due under
paragraph (a)(i) of this Section that are not paid prior to the Effective Date
shall be due and payable in full on the Effective Date.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
indemnitees herein in this Section 10.06 set forth are in addition to the
obligations of Borrower to pay indemnification on account of Taxes and Other
Taxes, as provided in Section&nbsp;2.12 hereof.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.07</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Successors
and Assigns</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the
Administrative Agent, the L/C Issuer and each Lender (and any attempted
assignment or transfer by Borrower without such consent shall be null and
void).&#160; Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, the Related Parties of each
of the</h3>


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<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Administrative Agent, the
Collateral Trustee and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any
Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans at the time owing to it); <u>provided</u> that (i)&nbsp;except in
the case of an assignment to a Lender or a Lender Affiliate, each of Borrower
and the Administrative Agent must give its prior written consent to such assignment
(which consent shall not be unreasonably withheld), (ii)&nbsp;except in the
case of an assignment to a Lender or a Lender Affiliate or an assignment of the
entire remaining amount of the assigning Lender&#146;s Commitment, the amount of the
Commitment of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000.00 and
the amount of the assigning Lender&#146;s Commitment shall not be less than
$5,000,000.00 after the effectiveness of such assignments, unless each of
Borrower and the Administrative Agent otherwise consent, (iii)&nbsp;each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender&#146;s rights and obligations under this Agreement, and
(iv)&nbsp;the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Acceptance, together with a processing
and recordation fee of $3,500.00; <u>provided</u>, <u>further</u>, that any
consent of Borrower otherwise required under this paragraph shall not be
required if an Event of Default has occurred and is continuing.&#160; Upon acceptance and recording pursuant to
paragraph (d) of this Section, from and after the effective date specified in
each Assignment and Acceptance, the assignee thereunder shall be a party hereto
and, to the extent of the interest assigned by such Assignment and Acceptance,
have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender&#146;s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections&nbsp;2.10, 2.11, 2.12 and 10.06 hereof), <u>provided</u>, <u>however</u>,
no assignee shall be entitled to receive any greater payment under
Section&nbsp;2.10, 2.12 or 10.06(b) hereof than the assigning Lender would have
been entitled to receive with respect to the interest assigned to such
assignee, unless the assignment to such assignee is made with Borrower&#146;s prior
written consent, in which Borrower expressly waives such limitation.&#160; Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
paragraph shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (e) of this Section.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Administrative Agent, acting for this purpose as an agent of Borrower, shall
maintain at one of its offices in The City of New York a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitment of, and principal
amount of the Loans owing to, each Lender pursuant to the terms hereof from
time to time (the &#147;<b>Register</b>&#148;).&#160; The entries in the Register shall be
conclusive, and Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary.</h3>


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<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon its
receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the processing and recordation fee referred to in
paragraph (b) of this Section&nbsp;and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall
accept such Assignment and Acceptance and record the information contained
therein in the Register.&#160; No assignment
shall be effective for purposes of this Agreement unless it has been recorded
in the Register as provided in this paragraph.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any
Lender may, without the consent of Borrower or the Administrative Agent, sell
participations to one or more banks or other entities (a &#147;<b>Participant</b>&#148;) in all or a portion of such
Lender&#146;s rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); <u>provided</u> that
(i)&nbsp;such Lender&#146;s obligations under this Agreement shall remain unchanged,
(ii)&nbsp;such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, and (iii)&nbsp;Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender&#146;s rights and
obligations under this Agreement.&#160; Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; <u>provided</u> that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in the first proviso
to Section&nbsp;10.05(b) hereof that affects such Participant.&#160; Subject to paragraph (f) of this Section,
Borrower agrees that each Participant shall be entitled to the benefits of
Sections&nbsp;2.10, 2.11 and 2.12 hereof to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A
Participant shall not be entitled to receive any greater payment under
Section&nbsp;2.10 or 2.12 hereof than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with Borrower&#146;s
prior written consent, in which Borrower expressly waives such limitation.&#160; A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section&nbsp;2.12
unless Borrower is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of Borrower, to comply with
Section&nbsp;2.12(d) as though it were a Lender.&#160; So long as a Participant agrees, such
Participant shall be bound by Section&nbsp;2.16 as if it were a Lender in each
case thereunder.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including any such pledge or assignment to a Federal Reserve Bank, and
this Section&nbsp;shall not apply to any such pledge or assignment of a
security interest; <u>provided</u> that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such assignee for such Lender as a party hereto.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.08</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Survival</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All covenants, agreements, representations and
warranties made by Borrower herein and</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">in the certificates or
other instruments delivered in connection with or pursuant to this Agreement
shall be considered to have been relied upon by the other parties hereto and
shall survive the execution and delivery of this Agreement and the making of
any Loans, regardless of any investigation made by any such other party or on
its behalf and notwithstanding that the Administrative Agent or any Lender may
have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid and so long as the Commitments have not expired or
terminated.&#160; The provisions of
Sections&nbsp;2.10, 2.11, 2.12 and 10.06 and Article&nbsp;IX hereof shall
survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of the Loans, the expiration
or termination of the Commitments or the termination of this Agreement or any
provision hereof.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.09</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Counterparts;
Integration; Effectiveness</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.&#160; This Agreement and any
separate letter agreements with respect to fees payable to the Administrative
Agent or any Lender constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof.&#160; Except as provided in Section&nbsp;5.01
hereof, this Agreement shall become effective when it shall have been executed
by the Administrative Agent and when the Administrative Agent shall have
received counterparts hereof which, when taken together, bear the signatures of
each of the other parties hereto, and thereafter shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.&#160; Delivery of an executed
counterpart of a signature page&nbsp;of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.10</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Severability</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.11</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Right of Set-off</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If an Event of Default shall have occurred and be
continuing, each Lender is hereby authorized at any time and from time to time,
to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Lender to or for the
credit or the account of Borrower against any of and all the obligations of
Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">107</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any demand under this
Agreement and although such obligations may be unmatured.&#160; The rights of each Lender under this
Section&nbsp;are in addition to other rights and remedies (including other
rights of set-off) which such Lender may have.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.12</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Governing
Law; Jurisdiction; Consent to Service of Process</u>.</b></h2>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>This
Agreement shall be construed in accordance with and governed by the law of the
State of New York.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State
or, to the extent permitted by law, in such Federal court.&#160; Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.&#160; Nothing in this
Agreement shall affect any right that the Administrative Agent or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
against Borrower or its properties in the courts of any jurisdiction.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower
hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any court referred to in paragraph (b) of this
Section.&#160; Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.</h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section&nbsp;10.01 hereof.&#160; Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner
permitted by law.</h3>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.13</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>WAIVER OF JURY TRIAL</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY&nbsp;HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY).&#160; EACH PARTY
HERETO (A)&nbsp;CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B)&nbsp;ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">108</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.14</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Headings</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Article&nbsp;and Section&nbsp;headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.15</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Confidentiality</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of the Administrative Agent, the Collateral
Trustee and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed
(a)&nbsp;to its and its Affiliates&#146; directors, officers, employees and agents,
including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b)&nbsp;to the extent requested by any regulatory authority,
(c)&nbsp;to the extent&#160; required by
Applicable Laws or regulations or by any subpoena or similar legal process,
(d)&nbsp;to any other party to this Agreement, (e)&nbsp;in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder, (f)&nbsp;subject to
an agreement containing provisions substantially the same as those of this
Section, to any assignee of or Participant in, or any prospective assignee of
or Participant in, any of its rights or obligations under this Agreement (<u>provided</u>
that, in the case of an assignee or Participant, or prospective assignee or
Participant, which is a competitor of Borrower, the prior written consent of
Borrower shall be required, which consent shall not be unreasonably withheld,
prior to disclosing the Information thereto), (g)&nbsp;with the consent of
Borrower or (h)&nbsp;to the extent such Information (i)&nbsp;becomes publicly
available other than as a result of a breach of this Section&nbsp;or
(ii)&nbsp;becomes available to the Administrative Agent, the Collateral Trustee
or any Lender on a nonconfidential basis from a source other than
Borrower.&#160; For the purposes of this
Section, &#147;<b><u style="font-weight:bold;">Information</u></b>&#148;
means all information received from Borrower relating to Borrower or its
business, other than any such information that is available to the
Administrative Agent, the Collateral Trustee or any Lender on a nonconfidential
basis prior to disclosure by Borrower; <u>provided</u> that, in the case of
information received from Borrower after the date hereof, such information is
clearly identified at the time of delivery as confidential.&#160; Any Person required to maintain the
confidentiality of Information as provided in this Section&nbsp;shall be
considered to have complied with its obligation to do so if such Person has exercised
the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.16</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Interest Rate Limitation</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything herein to the contrary, if at
any time the Interest Rate applicable to any Loan, together with all fees,
charges and other amounts which are treated as interest on such Loan under
Applicable Law (collectively the &#147;<b>Charges</b>&#148;),
shall exceed the maximum lawful rate (the &#147;<b>Maximum
Rate</b>&#148;), if any, which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with
Applicable Law,</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">109</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the rate of interest
payable in respect of such Loan hereunder, together with all Charges payable in
respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of
such Loan but were not payable as a result of the operation of this
Section&nbsp;shall be cumulated and the interest and Charges payable to such
Lender in respect of other Loans or periods shall be increased (but not above
the Maximum Rate therefor) until such cumulated amount, together with interest
thereon at the Federal Funds Effective Rate to the date of repayment, shall
have been received by such Lender.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section 10.17</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Further Assurances</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At the request of the Administrative Agent or the
Lenders, at any time and from time to time, at Borrower&#146;s sole expense,
Borrower shall execute and deliver or cause to be executed and delivered to the
Administrative Agent, such agreements, documents and instruments, including
waivers, consents and subordination agreements from mortgagees or other holders
of security interests or Liens, landlords or bailees, and do or cause to be
done such further acts as the Administrative Agent, in its reasonable
discretion, deems necessary or desirable to create, preserve, perfect or
validate any security interest of the Administrative Agent or the Collateral
Trustee or the priority thereof in the Collateral and otherwise to effectuate
the provisions and purposes of this Agreement.&#160;
Borrower hereby authorizes the Administrative Agent to file financing
statements or amendments against Borrower in favor of the Administrative Agent
with respect to the Collateral, without Borrower&#146;s signature, and to file as
financing statements any carbon, photographic or other reproductions of this
Agreement or any financing statements, signed by Borrower.&#160; Borrower hereby ratifies and confirms any
financing statements heretofore filed by the Administrative Agent with respect
to the Collateral.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.18</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Judgment
Currency</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Each Credit Party&#146;s
obligation hereunder and </font>under
the other Loan Documents to make payment in Dollars, or in the case of Letters
of Credit, the applicable Alternative Currency (in each case, the &#147;Obligation
Currency&#148;) shall not be discharged or satisfied by tender or recovery pursuant
to any judgment expressed in or converted into any currency other than the
Obligation Currency, except to the extent that such tender or recovery results
in the effective receipt by the Administrative Agent, the L/C Issuer or the
respective Lender of the full amount of the Obligation Currency expressed to be
payable to the Administrative Agent, the L/C Issuer or such Lender under this
Agreement or the other Loan Documents.&#160;
If for the purpose of obtaining or enforcing judgment against any Credit
Party in any court in any jurisdiction, it becomes necessary to convert into or
from any currency other than the Obligation Currency (such other currency being
hereinafter referred to as the &#147;Judgment Currency&#148;) an amount due in the
Obligation Currency, the conversion shall be made at the Dollar
Equivalent.&#160; For purposes of determining
the Dollar Equivalent for this Section 10.18, such amounts shall include any
premium and costs payable in connection with the purchase of the Obligation
Currency.</font></p>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section
10.19</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font><u>USA
Patriot Act Notice</u>.</b></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of the Administrative Agent and each Lender
hereby notifies Borrower that, pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">110</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">October 26, 2001)) (the &#147;<b><u style="font-weight:bold;">Patriot Act</u></b>&#148;), it is required to
obtain, verify and record information that identifies Borrower, which
information includes the name and address of Borrower and other information
that will allow the Administrative Agent and such Lender to identify Borrower
in accordance with the Patriot Act.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">[Signature pages&nbsp;follow.]</font></i></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">111</font></p>
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<div>


<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN
WITNESS WHEREOF</font></b>, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">K-SEA
  OPERATING PARTNERSHIP<br>
  L.P., by its general partner K-Sea OLP<br>
  GP, LLC, </font></b>as Borrower<b>  </b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ John&nbsp;J. Nicola </font></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp;John&nbsp;J.
  Nicola </font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp;&nbsp;&nbsp;Chief
  Financial Officer</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KEYBANK
  NATIONAL ASSOCIATION</font></b><b>,<br>
  </b>for itself as Lender, and as Administrative<br>
  Agent and as Collateral Trustee<b>  </b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: </font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;/s/ </font>Steven B. Vitale </font></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp;Steven
  B. Vitale</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp;&nbsp;&nbsp;Director</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Amended and
Restated Loan and Security Agreement Signature Page</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr height="16" style="height:11.75pt;page-break-inside:avoid;">
  <td width="44%" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><b>LASALLE BANK NATIONAL ASSOCIATION,<br>
  </b>as Co-Syndication Agent and Lender</p>
  </td>
 </tr>
 <tr height="16" style="height:11.75pt;page-break-inside:avoid;">
  <td width="44%" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr height="16" style="height:11.75pt;page-break-inside:avoid;">
  <td width="44%" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" height="16" valign="top" style="height:11.75pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Robert W. Hart</font></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp;Robert W. Hart</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp;&nbsp;&nbsp;Senior Vice President</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CITIBANK, N.A., </font></b>as
  Co-Syndication Agent and<br>
  Lender</p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Charles J. Margiotti</font></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp;Charles J. Margiotti</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp;&nbsp;&nbsp;Vice President</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CITIZENS BANK OF PENNSYLVANIA, </font></b>as<br>
  Co-Documentation Agent and Lender</p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Devon Starks</font></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp;Devon Starks</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp;&nbsp;&nbsp;Senior Vice President</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">HSBC BANK USA NATIONAL<br>
  ASSOCIATION, </font></b>as Co-Documentation Agent<br>
  and Lender</p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Paulette P. Laurenzi</font></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp;Paulette P. Laurenzi</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp;&nbsp;&nbsp;Senior Vice President</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WACHOVIA BANK, NATIONAL<br>
  ASSOCIATION</font></b></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="44%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Stephen Karp</font></p>
  </td>
  <td width="17%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:17.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&nbsp;Stephen Karp</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.5pt;page-break-inside:avoid;">
  <td width="44%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:44.06%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="5%" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:5.36%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" height="15" valign="top" style="height:11.5pt;padding:0pt .7pt 0pt 0pt;width:50.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&nbsp;&nbsp;&nbsp;Vice President</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>



</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE
1.01A</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Pool
Vessels</font></u></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">VESSEL NAME</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="22%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">OFFICIAL NO.</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="41%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">REGISTERED OWNER</font></b></p>
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  <td width="29%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Double Hull Barges</font></b></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 151</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">641082</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 70</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">540401</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 31</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1079242</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 32</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1087118</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 17</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1065655</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 18</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1065657</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 19</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1065658</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 53</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">500121</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DBL 134</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">699977</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Casablanca</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">901203</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">996165</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Puget Sounder</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">981972</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sasanoa</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1110781</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leo</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1136725</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rigel</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Na-Kao</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1174391</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Noa</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1121896</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nale</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1190335</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ne&#146;ena</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1163049</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Single Hull Barges</font></b></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KTC 80</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">643281</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KTC 71</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">563364</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KTC 60</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">630272</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KTC 50</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">555901</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KTC 55</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">544437</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Noho Hele</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">649722</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCT 280</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">587804</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCT 282</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">596502</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Tugs</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rebel</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">570047</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yankee</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">571215</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Viking</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">541711</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Coral Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">550670</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Baltic Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">551908</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bering Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">569665</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Maryland</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">287444</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Houma</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">528526</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Odin</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">647313</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taurus</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">602379</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Falcon</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">598501</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Banda Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">504169</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Davis Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">651977</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Norwegian Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">574955</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sargasso Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">547618</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Timor Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">283906</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Barents Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">570419</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Caspian Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">640953</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Inland Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1104151</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Labrador Sea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1125307</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nathan E. Stewart</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1120997</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Eagle</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">500126</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tiger</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">502116</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Pride</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">583851</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Challenger</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">571631</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Freedom</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">521494</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Raven</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">529686</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paragon</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">596518</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Patriot</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">627416</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


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  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sea Hawk</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">589839</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Avenger</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">586202</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">John Brix</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">293323</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pacific Wolf</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">567630</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Altair</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">640948</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Na Hoku</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">636961</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nakoa</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">572263</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nokea</font></p>
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  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">567629</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
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 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jimmy Smith</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">576980</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nalani</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">640639</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Namahoe</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1048324</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Niolo</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">653612</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nakolo</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">557330</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nohea</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">652801</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Noke</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1189830</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Naupaka</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">661812</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Hawaii Inc.</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other</font></b></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nunui</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">590234</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.48%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nohi</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">664805</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE
1.01B</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Additional
Pool Vessels</font></u></b></p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><!-- SET mrlHTMLTableLeft -->VESSEL NAME</p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="134" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">OFFICIAL NO.</font></b></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="251" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">REGISTERED OWNER</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="245" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Double Hull Barges</font></b></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rigel</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">991836</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Single Hull Barges</font></b></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCT 280</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">587804</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCT 282</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">596502</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Tugs</font></b></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Barents Sea</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">570419</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Caspian Sea</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">640953</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Inland Sea</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1104151</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Labrador Sea</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1125307</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nathan E. Stewart</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1120997</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Operating Partnership L.P.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="245" valign="top" style="padding:0pt .7pt 0pt 0pt;width:183.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Altair</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="134" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.3pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">640948</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="251" valign="top" style="padding:0pt .7pt 0pt 0pt;width:188.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE
1.01C</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Phase Two
Pool Vessels</font></u></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="18%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">VESSEL <br>
  NAME</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">OFFICIAL <br>
  NO.</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="36%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">REGISTERED OWNER</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="26%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">POST PHASE TWO <br>
  REGISTERED OWNER</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Double Hull Barges</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Leo</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1136725</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hawaiian Interisland Towing, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Transportation LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Na-Kao</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1174391</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hawaiian Interisland Towing, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
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  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hawaiian Interisland Towing, Inc.</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
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  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1048324</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hawaiian Interisland Towing, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Niolo</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">653612</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hawaiian Interisland Towing, Inc.</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Naupaka</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">661812</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hawaiian Interisland Towing, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">K-Sea Hawaii Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nakolo</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">557330</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tow Boat Services &amp; Management, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nohea</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">652801</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tow Boat Services &amp; Management, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Noke</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1189830</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Uaukewai Diving, Salvage and Fishing, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
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  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
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  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other</font></b></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
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  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nohi</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">664805</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hawaiian Interisland Towing, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
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  <td width="18%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8%;">
  <p style="margin:0pt 0pt .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nunui</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">590234</font></p>
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  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tow Boat Services &amp; Management, Inc.</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Smith Maritime LLC</font></p>
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE
2.01</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Commitments</font></u></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="61%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Lender</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="16%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.9%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Tranche&nbsp;A&nbsp;Commitment</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="16%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.82%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Tranche&nbsp;B&nbsp;Commitment</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="61%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KeyBank National
  Association</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.92%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37,500,000.00</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.82%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20,000,000.00</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LaSalle Bank National
  Association</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.92%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32,500,000.00</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.82%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15,000,000.00</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Citibank, N.A.</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.92%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32,500,000.00</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.82%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10,000,000.00</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Citizens Bank of
  Pennsylvania</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.92%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25,000,000.00</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="2" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:16.82%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-0-</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">HSBC Bank USA National
  Association</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.92%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25,000,000.00</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="2" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:16.82%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-0-</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Wachovia Bank, National
  Association</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.92%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22,500,000.00</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.82%;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-0-</font></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:61.2%;">
  <p style="margin:0pt 0pt .0001pt 30.0pt;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Aggregate Commitments</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">$</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.92%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">175,000,000.00</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt 0pt 0pt 0pt;width:1.0%;">
  <p align="left" style="margin:0pt 0pt .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">$</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:15.82%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">45,000,000.00</font></b></p>
  </td>
  <td width="0%" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:.34%;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
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