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Exhibit 10.49  

 
 

METRON TECHNOLOGY N.V.
  SUPPLEMENTAL STOCK OPTION PLAN    
    

1.    PURPOSE.  

        1.1    This plan is intended to constitute a "broadly-based" plan for purposes of Rule 4350(i)(1)(A) of the NASD Manual. 

        1.2    The purpose of this supplemental stock option plan (the "Plan") is to
motivate key employees of and consultants to Metron Technology N.V. (the "Company") and its group companies (the "Group
Companies") to improve individual performance by providing long-term incentives to such persons by way of facilitating ownership of shares in the issued share
capital of the Company. The Plan is also intended to facilitate recruiting and retaining key personnel of outstanding ability by providing an attractive capital accumulation opportunity. 

        1.2    The Plan provides employees, consultants, and officers of the Company and its Group Companies
("Employees") an opportunity to purchase Shares pursuant to options which do not qualify as incentive stock options under Sections 422 or 423 of the
Code (hereafter "Nonqualified Stock Options"). 

2.    SUBPLANS AUTHORIZED.  

        The Plan shall operate as a master plan and to the extent appropriate the Company and/or its Group Companies may adopt subplans which among other things may be
intended to address specific laws of one or more of the jurisdictions in which the Company and/or its Group Companies operate (a "Subplan"). 

3.    DEFINITIONS.  

        Capitalized terms used in the Plan and in the Agreement (as defined below) have the meaning ascribed thereto in this Section 3. 

        (a)    "Agreement"    means a written contract entered into between the Company and/or a Group Company on the one hand
and an Optionee on the other hand containing the terms and conditions of an Option, which shall be consistent with the Plan and be determined by the Board, together with all amendments thereto made by
the Board in accordance with Section 13 hereof. 

        (b)    "Board"    means the supervisory board of the Company. 

        (c)    "Committee"    means a committee designated by the Board to administer the Plan in accordance with
Section 13 hereof. 

        (d)    "Company"    means Metron Technology N.V., a public company with limited liability established at Amsterdam,
The Netherlands. 

        (e)    "Consultant"    means any person, including an advisor, (i) engaged by the Company or a Group Company to
render consulting or advisory services and who is compensated for such services or (ii) who is a member of the Board of Directors of a Group Company. However, the term "Consultant" shall not
include either Directors who are not compensated by the Company for their services as Directors or Directors who are merely paid a director's fee by the Company for their services as Directors. 

        (f)    "Director"    means a member of the supervisory board of the Company. 

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        (g)    "Employee"    means an employee (including a managing director who is also an employee) of the Company or a
Group Company. 

        (h)    "Exchange Act"    means the Securities Exchange Act of 1934, as amended. 

        (i)    "Fair Market Value"    means, as of any date, the value per Share determined as follows: 

        (i)    the Stock is listed on any official stock exchange, the Fair Market Value shall be the closing sales price per Share on
such stock exchange (or the closing bid price if no sales were reported) for the last trading day prior to the time of determination; provided, however,
that if the Stock is listed on more than one such exchange, the Fair Market Value shall be determined with respect to the closing sales price per Share on the exchange having the greatest average
trading volume of the Stock for the prior thirty (30) day period; or 

        (ii)    if the Stock is not listed on any official stock exchange, the Fair Market Value shall be determined by the Board, using
such criteria as it shall determine, in its sole discretion, to be appropriate for such valuation. 

        (j)    "Group Company"    ("groepsmaatschappij") has the meaning assigned to it in Section 2:24b of the Dutch
Civil Code or any successor provision thereof with the understanding that FSI Metron Europe Ltd., a company under the laws of England which is registered at Brighton is deemed not to be a Group
Company. 

        (k)    "Non-Employee Director"    means a Director who either (i) is not a current Employee or
Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the Company or its parent or a subsidiary for services rendered as a consultant or in
any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities
Act ("Regulation S-K")), does not possess an interest in any other transaction as to which disclosure would be required under Item 404(a) of Regulation S-K and is
not engaged in a business relationship as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
"non-employee director" for purposes of Rule 16b-3. 

        (l)    "Officer"    means a person who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder. 

        (m)    "Option"    means a right to purchase Shares pursuant to the terms of the Plan. 

        (n)    "Option Price"    means the price at which a Share covered by the respective Option may be purchased.

        (o)    "Optionee"    means an Employee or Consultant to whom an Option is or has been granted. 

        (p)    "Plan"    means this Metron Technology N.V. Supplemental Stock Option Plan, any Subplans authorized by the
Company and any amendments made thereto by the Board in accordance with Section 12 hereof. 

        (q)    "Securities Act"    means the Securities Act of 1933, as amended. 

        (r)    "Share"    means a common share in the issued share capital of the Company. 

        (s)    "Stock"    means the common shares in the issued share capital of the Company. 

        (t)    "Successor"    with respect to an Optionee means the person or persons who, by will or according to the
applicable law of inheritance, acquire(s) the right to exercise an Option. 

        (u)    "Term"    means the period during which an Option may be exercised. 

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4.    SHARES AVAILABLE UNDER THE PLAN.  

        4.1    The number of Shares available for distribution under the Plan shall not exceed 500,000, subject to adjustment pursuant
to Section 14 hereof. Shares used for purposes of the Plan shall be common shares in the authorized share capital of the Company. 

        4.2    If an Option should expire or can no longer be exercised for any reason without having been exercised in full, the
unissued Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for future issuance under the Plan. 

        4.3    For the purposes of computing the total number of Shares granted under the Plan, each Option shall be deemed to be the
equivalent of the maximum number of Shares that may be issued upon exercise of the particular Option. 

        4.4    Except as set forth in the following sentence, Options may only be granted under the Plan on June 1 and
December 1 of each calendar year (or the next business day if any such June 1 or December 1 is not a business day). Notwithstanding the preceding sentence, Options may be granted
at any time or times during each calendar year to eligible Employees and Consultants if: (i) the grant is made in connection with the hiring by the Company of an eligible Employee or Consultant
and such eligible Employee or Consultant was not employed by or a consultant to the Company within the previous 6 months, (ii) the grant is made in recognition of a newly granted
promotion to an eligible Employee or Consultant and the Committee determines that such promotion involves a significant increase in the duties or responsibilities of such eligible Employee or
Consultant, or (iii) the grant is made in connection with the exercise by the Board of any of the powers listed in Section 13.2(c) hereof. 

5.    ELIGIBILITY.  

        Participation in the Plan shall be limited to Employees and Consultants, and the Committee or the Board shall determine which Employees and Consultants shall be
granted Options under the Plan, and the terms of such Options, all as more fully provided in the relevant Agreement. 

        Notwithstanding
the foregoing, the aggregate number of shares subject to Options granted to Officers and Directors under the Plan shall be less than fifty percent (50%) of the aggregate
number of shares subject to Options granted under the Plan. Such determination shall be from the date of the adoption of the Plan to the first anniversary of such adoption and thereafter, from the
date of adoption to next anniversary of the adoption (based on the Options granted from the date of adoption of the Plan until such anniversary), except that in each case there shall be excluded from
these calculations any Options granted to an Officer not previously employed by the Company as an inducement essential to such individual entering into an employment contract with the Company. 

6.    GENERAL TERMS OF OPTIONS.  

        6.1    Each Option shall be subject to an Agreement. 

        6.2    Each Agreement shall set forth the number of Shares to which the Option subject to such Agreement applies, the Option
Price and such other terms and conditions applicable to the Option as shall be determined by the Board acting in its sole discretion, subject however to the provisions of the Plan, particularly this
Section 6.2 thereof. 

        6.3    The Option Price shall never be less than the nominal value per Share. Moreover, the Option Price shall not be less than
the Fair Market Value on the date the Option is granted. 

        6.4    The Agreement may contain such other terms, provisions, and conditions as may be determined by the Board (not
inconsistent with this Plan). 

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7.    TRANSFERABILITY.  

        Each Agreement shall provide that Options may not be sold, assigned, transferred, exchanged, pledged or otherwise encumbered. Notwithstanding the immediately
preceding sentence, an Agreement may provide that the Option subject to the Agreement shall transfer in the event of the death of an Optionee to a Successor or, alternatively, that the death of an
Optionee shall accelerate the Term of the Option in accordance with Section 9 of the Plan. 

8.    EFFECTIVE DATE AND DURATION OF THE PLAN.  

        8.1    The Plan shall become effective as of and its "Effective Date" shall be
the date it is adopted by the Board. 

        8.2    The Plan shall remain in effect until the date as of which the Board has terminated the Plan (the  "Termination Date"); provided, however, that Options granted prior to the Termination Date may vest, be
exercised or otherwise effectuated in accordance with the relevant Agreement beyond the Termination Date unless the authority to do so is limited in the Agreement or otherwise. 

9.    TERM OF OPTIONS, ACCELERATION.  

        Each Agreement shall set forth the Term of the Option; provided, however, that the Term of an Option shall not be
for more than 10 years. Acceleration of the expiration of the applicable Term is permitted upon such terms and conditions as shall be set forth in the Agreement, which may, but need not,
include, without limitation, acceleration in the event of the Optionee's death or retirement as Employee. 

10.    TERMINATION OF EMPLOYMENT AND CONSULTING RELATIONSHIP AND PERMANENT DISABILITY OF THE OPTIONEE.  

        10.1    No Option may be exercised by an Optionee from the date on or as per which the Optionee is no longer an Employee or a
Consultant, for any reason whatsoever, except as and to the extent provided in the Agreement applicable to that Option. Notwithstanding the foregoing, a change in the capacity in which a person
provides services to the Company will not constitute a termination of employment or consulting relationship for purposes of the Plan provided that there is no interruption in the period during which
the person provides services to the Company. 

        10.2    Subject to Sections 7 and 10.1 of the Plan, during the lifetime of an Optionee, only such Optionee (or such Optionee's
legal representative) may exercise an Option. An Option may be exercised by the Successor of an Optionee following the death of such Optionee to the extent, and during the period of time, if any,
provided in the applicable Agreement. 

        10.3    Notwithstanding the provisions of Section 10.1 above, in the event of termination of the Optionee's employment or
consulting relationship with the Company or one or more of the Group Companies as a result of his total and permanent disability (as determined by the Board or the Committee) the Optionee may, but
only within 12 months from the date of such termination (but in no event later than the expiration date of the Term of such Option as set forth in the relevant Agreement), exercise the Option
in accordance with the terms and conditions of the relevant Agreement. If and to the extent that the Optionee does not so exercise the Option, the Option shall terminate without any payment of
compensation or remuneration being due or payable to the Optionee. 

11.    EXERCISE OF OPTIONS.  

        11.1    The Option Price of the Shares with respect to which an Option is exercised shall be payable to the Company in full at
the time of exercise of the Option and shall be made in such currency as the Board shall specify in the applicable Agreement. However, the Board may, in its sole discretion, permit 

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an
Optionee to pay the Option Price in whole or in part (i) with Shares owned by the Optionee; (ii) with Shares issuable upon exercise of the Option; (iii) delivery on a form
prescribed by the Board of an irrevocable direction to a securities broker approved by the board or the Board to sell Shares and to deliver all or a portion of the proceeds thereof to the Company in
payment for the Shares; or (iv) a combination of the foregoing, and in any such event the Company undertakes to repurchase the Shares involved. Any Shares used to pay all or part of the Option
Price shall be valued by the Board or the Committee at their Fair Market Value on the date of the exercise of the Option. In addition, any Shares used to pay all or part of the Option Price that were
acquired, directly or indirectly from the Company, must have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes) prior to their use for such payment. 

        Notwithstanding
the above, it is expressly understood that an Optionee may only use Shares to pay all or part of the Option Price and that the Company shall only be bound to repurchase
those Shares subject to the condition precedent that the provisions of Dutch law and the articles of association of the Company, as the same may be amended from time to time, concerning the repurchase
by the Company of shares in its own capital are complied with and satisfied. 

        11.2    Each Option shall be exercisable in whole or in part on the terms provided for in the relevant Agreement. In no event
shall any Option be exercisable at any time after the expiration of its Term. When an Option is no longer exercisable, it shall be deemed to have lapsed or terminated without any payment of
compensation or remuneration due to anybody. 

12.    TERMINATION, SUSPENSION AND MODIFICATION OF THE PLAN AND ALTERATION AND AMENDMENT OF AGREEMENTS AND OPTIONS.  

        To
the extent permitted by law, the Board may at any time and from time to time terminate, suspend or modify the Plan. The Board may at any time alter or amend any or all Agreements and
the terms and conditions of outstanding Options, except the Option Price, provided, however, that no such termination, suspension, modification,
alteration or amendment will adversely affect any right acquired by any Optionee under an Option granted before the date of termination, suspension, modification, alteration or amendment, unless
otherwise agreed to by the Optionee in the Agreement or otherwise or unless required by law. However, it will be conclusively presumed that any adjustment for changes in capitalization provided for in
Section 14 does not adversely affect the rights of any Optionee. 

13.    ADMINISTRATION.  

        13.1    Administration by Board.     The Board shall administer the
Plan unless and until the Board delegates administration to a Committee, as provided in Section 13.3. 

        13.1    Powers of Board.    The Board shall have the power, subject to, and within the limitations of, the express
provisions of the Plan: 

        (a)    To determine from time to time which of the persons eligible under the Plan shall be granted Options; when and how each
Option shall be granted; the provisions of each Option granted (which need not be identical), including the time or times when a person shall be permitted to receive Shares pursuant to an Option; and
the number of Shares with respect to which an Option shall be granted to each such person. 

        (b)    To construe and interpret the Plan and Options granted under it, and to establish, amend and revoke rules and regulations
for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Agreement, in a manner and to the extent it shall deem
necessary or expedient to make the Plan fully effective. 

        (c)    To effect, at any time and from time to time, with the consent of any adversely affected Optionee, (1) the
reduction of the exercise price of any outstanding Option under the Plan, (2) the 

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cancellation
of any outstanding Option under the Plan and the grant in substitution therefor of (A) a new Option under the Plan covering the same or a different number of Shares, and/or
(B) cash, or (3) any other action that is treated as a repricing under generally accepted accounting principles. 

        (d)    Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best
interests of the Company which are not in conflict with the provisions of the Plan. 

        13.3    Delegation to Committee.    

        (a)    The Board may delegate administration of the Plan to a Committee or Committees of one (1) or more members of the
Board, and the term "Committee" shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall have, in connection
with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to
exercise (and in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. 

        (b)    At such time as the Shares are publicly traded, in the discretion of the Board, a Committee may consist solely of two or
more Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such authority, the Board or the Committee may (1) delegate to a committee of one
or more members of the Board who are not Outside Directors the authority to grant Options to eligible persons who are either not then Covered Employees and are not expected to be Covered Employees at
the time of recognition of income resulting from such Stock Award and/or (2) delegate to a committee of one or more members of the Board who are not Non-Employee Directors the
authority to grant Options to eligible persons who are not then subject to Section 16 of the Exchange Act. 

        13.4    Effect of Board's Decision.    All determinations, interpretations and constructions made by the Board in good
faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 

14.    ADJUSTMENT FOR CHANGES IN CAPITALIZATION.  

        14.1    In the event of any change in the number of outstanding Shares by reason of any stock dividend, stock split,
reorganization, recapitalization, merger, exchange of shares or other similar corporate change, such reasonable adjustments may be made in the Plan, the Agreements and the Options granted hereunder
(including the Option Price) as the Board shall, in its sole discretion, determine are necessary or appropriate to ensure the Optionees, to the extent possible, reasonable rights with equal value,
including, if necessary, an adjustment in the number of Shares and in the Option Prices applicable to Options then outstanding and in the number of Shares which are reserved for issuance under the
Plan. Any such adjustment shall be conclusive and binding for all purposes of the Plan. 

        14.2    Unless otherwise determined by the Board, upon the dissolution or liquidation of the Company the Options granted under
the Plan shall terminate and thereupon become null and void. Upon any merger or consolidation, if the Company is not the surviving corporation, or if the Company is the surviving corporation in a
"triangular merger" transaction with a subsidiary of a "parent corporation" (as such term is defined and used in Section 175 and Section 1101 of the California General Corporation Law),
then with respect to Options held by persons whose employment or consulting relationship with the Company or any Group Company has not terminated, the vesting of such Options (and, if applicable, the
time during which such Options may be exercised) shall be 

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accelerated
in full, and the Options shall terminate if not exercised (if applicable) at or prior to such event. With respect to any other Options outstanding under the Plan, such Options shall
terminate if not exercised (if applicable) prior to such event. 

15.    NO COMMITMENTS VIS-À-VIS ELIGIBLE EMPLOYEES, CONSULTANTS OR OPTIONEES.  

        15.1    The status as an eligible Employee or Consultant of any person shall not be construed as a commitment that any Option
will be granted under the Plan to such eligible Employee or Consultant, or to eligible Employees or Consultants generally. 

        15.2    Nothing in the plan or in any Agreement or related documents shall confer upon any Employee, Consultant or Optionee any
right to continue in the employment or service of the Company or any Group Company or constitute any contract of employment or consulting relationship or affect any right which the Company or any
Group Company may have to change such person's remuneration, other benefits, job responsibilities or title, or to terminate the employment or consulting relationship of such person with or without
cause. Options and/or Shares granted to an Optionee under the Plan are not and shall not be considered to be a remuneration for work performed by such Optionee under his contract of employment with
the Company or any Group Company. 

16.    TAX WITHHOLDING.  

        No Shares shall be granted or sold under the Plan to any Optionee until the Optionee has made arrangements acceptable to the Company or to the Board for the
satisfaction of federal, state, local and foreign income tax, social security tax and any other applicable withholding obligations including, without limitation, obligations incident to the receipt of
Shares under the Plan or the receipt of an Option pursuant to the Plan. Upon exercise of an Option, the Company at its option may withhold from the Optionee or require the Optionee to surrender cash
or Shares sufficient to satisfy the minimum applicable federal, state, local and foreign income tax, social security tax and any other
minimum applicable withholding obligations as well as any capital duty and transfer or other similar duty payable in respect of payment of the Option Price or for the Shares. 

17.    OTHER BENEFITS AND COMPENSATION PROGRAMS.  

        Payments and other benefits received by an Optionee under the Plan or under an Option granted pursuant to the Plan shall not be deemed a part of an Optionee's
regular, recurring compensation for purposes of the termination, indemnity or severance pay law of any country and shall not be included in, nor have any effect on, the determination of benefits under
any other employee benefit plan, contract or similar arrangement provided by the Company or a Group Company, unless expressly so provided by such other plan, contract or arrangement, or unless the
Board expressly determines that an Option or portion of an Option should be included to reflect competitive compensation practices or to recognize that an Option has been granted in lieu of a portion
of competitive cash compensation. 

18.    UNFUNDED PLAN.  

        The Plan shall be unfunded and the Company shall not be required to segregate any assets that may at any time be represented by Options under the Plan. Neither
the Company, its Group Companies, the Committee, nor the Board shall be deemed to be a trustee of any amounts to be paid under the Plan nor shall anything contained in the Plan or any action taken
pursuant to its provisions create or be construed to create a fiduciary relationship between the Company and/or its Group Companies, and an Optionee. To the extent that any person acquires a right to
receive an Option under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. 

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19.    LIMITS OF LIABILITY, INDEMNIFICATION.  

        19.1    Any liability of the Company to any Optionee with respect to an Option shall be based solely upon the contractual
obligations created by the Plan and the Agreement. 

        19.2    Except as may be required by law, neither the Company nor any member of the Board or of the Committee, nor any other
person participating in any determination of any question under the Plan, or in the interpretation, administration or application of the Plan, shall have any liability to any party for any action
taken, or not taken, under the Plan. 

        19.3    Each person who is or shall have been a member of the Committee or of the Board, and any other person to whom the Board
delegates authority under the Plan, shall be indemnified and held harmless by the Company, to the extent permitted by law, against and from any loss, cost, liability or expense that may be imposed
upon or reasonably incurred by such person in connection with or resulting from any claim, action, suit or proceeding to which such person may be a party or in which such person may be involved by
reason of any action taken or failure to act, made in good faith, under the Plan and against and from any and all amounts paid by such person in settlement thereof with the Company's approval, or paid
by such person in satisfaction of any judgment in any such action, suit or proceeding against such person, provided such person shall give the Company an opportunity, at the Company's expense, to
handle and defend the same before such person undertakes to handle and defend it on such person's own behalf. 

20.    COMPLIANCE WITH APPLICABLE LEGAL REQUIREMENTS.  

        No Options shall be granted and no Shares distributable pursuant to the Plan or to an Agreement shall be issued and delivered unless the granting of such Options
respectively the issuance and delivery of such Shares complies with all applicable legal requirements including, without limitation, with the provisions of any applicable national or state securities
laws, and the requirements of the stock exchanges, if any, on which the Shares may, from time to time, be listed. 

        Optionees
who wish to offer or sell any Shares received under the Plan, and who are residents of The Netherlands, may only do so through a foreign stock exchange (such as The Nasdaq
Stock Market). Optionees who are not residents of The Netherlands may not offer or sell Shares received under the Plan in The Netherlands. 

21.    GENDER AND NUMBER.  

        Except when otherwise indicated by the context, reference to the masculine gender shall include, when used, the feminine gender and any term used in the singular
shall also include the plural. 

22.    PARTIAL INVALIDITY.  

        In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

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METRON TECHNOLOGY N.V. SUPPLEMENTAL STOCK OPTION PLAN<Page>

                                                                   EXHIBIT 10.10

                   FORM OF K-SEA TRANSPORTATION PARTNERS L.P.

                            LONG-TERM INCENTIVE PLAN

1.   PURPOSE OF THE PLAN.

          The K-Sea Transportation Partners L.P. Long-Term Incentive Plan (the
"Plan") is intended to promote the interests of K-Sea Transportation Partners
L.P., a Delaware limited partnership (the "Partnership"), by providing to
employees and directors of K-Sea General Partner GP LLC, a Delaware limited
liability company (the "Company"), and its Affiliates who perform services for
the Partnership, incentive compensation awards for superior performance that are
based on Units. The Plan is also contemplated to enhance the ability of the
Company and its Affiliates to attract and retain the services of individuals who
are essential for the growth and profitability of the Partnership and to
encourage them to devote their best efforts to the business of the Partnership,
thereby advancing the interests of the Partnership.

2.   DEFINITIONS.

          As used in the Plan, the following terms shall have the meanings set
forth below:

          "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly through one or more intermediaries controls, is
controlled by or is under common control with, the Person in question. As used
herein, the term "control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract or
otherwise.

          "Award" means an Option or Phantom Unit granted under the Plan, and
shall include any DER granted with respect to a Phantom Unit.

          "Award Agreement" means the agreement entered into between the
Partnership and the Participant evidencing the terms and conditions of the
Award.

          "Board" means the Board of Directors of K-Sea General Partner GP LLC,
a Delaware limited liability company.

          "Cash-Out Value" means the amount determined in Clause (i) or (ii),
whichever is applicable, as follows: (i) the per Unit price offered to
equityholders of the Partnership in any merger or consolidation or (iii) in the
event of a reorganization, the Fair Market Value per Unit determined by the
Committee as of the date determined by the Committee to be the date of
cancellation and surrender of an Award. In the event that the consideration
offered to equityholders of the Partnership in any transaction described in this
definition consists of anything other than cash, the Committee shall determine
the fair cash equivalent of the portion of the consideration offered which is
other than cash.

                                        1
<Page>

          "Change in Control" shall be deemed to have occurred upon the
occurrence of one or more of the following events: (i) any sale, lease, exchange
or other transfer (in one or a series of related transactions) of all or
substantially all of the assets of the Partnership, K-Sea Operating Partnership
L.P. or K-Sea Transportation Inc. to any Person or its Affiliates, other than
the Partnership, K-sea Operating Partnership L.P., K-Sea Transportation Inc. or
any of their Affiliates or (ii) any merger, reorganization, consolidation or
other transaction pursuant to which more than 50% of the combined voting power
of the equity interests in the Partnership, K-Sea Operating Partnership L.P. or
K-Sea Transportation Inc. ceases to be owned by Persons who own such interests,
respectively, as of the date of the initial public offering of Units.

          "Committee" means the Compensation Committee of the Board or such
other committee of the Board appointed by the Board to administer the Plan.

          "DER" means a right, granted in tandem with a Phantom Unit, to receive
an amount in cash equal to, and at the same time as, the cash distributions made
by the Partnership with respect to a Unit during the period such Phantom Unit is
outstanding.

          "Director" means a member of the Board or the board of directors or
managers of an Affiliate who is not an Employee.

          "Employee" means any employee of the Company or an Affiliate,
including, without limitation, K-Sea Transportation Inc., in each case as
determined by the Committee. Notwithstanding the foregoing, the term "Employee"
shall not include any individual covered by a collective bargaining or
comparable agreement between representatives of such employees and the
Partnership, the Company or any Affiliate of the Partnership or the Company.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended.

          "Fair Market Value" means the closing sales price of a Unit on the
date of determination (or, if there is no trading in the Units on such date, the
closing sales price on the last date the Units were traded) as reported in The
Wall Street Journal (or other reporting service approved by the Committee). In
the event Units are not publicly traded at the time a determination of Fair
Market Value is required to be made hereunder, the determination of Fair Market
Value shall be made in good faith by the Committee.

          "Option" means an option to purchase Units granted under the Plan.

          "Participant" means any Employee or Director granted an Award under
the Plan.

          "Partnership Agreement" means the First Amended and Restated Agreement
of Limited Partnership of the Partnership.

          "Person" means an individual or a corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization,
association, governmental agency or political subdivision thereof or other
entity.

                                        2
<Page>

          "Phantom Unit" means a phantom (notional) unit granted under the Plan
which upon vesting entitles the Participant to receive a Unit or an amount of
cash equal to the Fair Market Value of a Unit, whichever is determined by the
Committee.

          "Plan" means this K-Sea Transportation Partners L.P. Long-Term
Incentive Plan, as amended from time to time.

          "Restricted Period" means the period established by the Committee with
respect to an Award during which the Award remains subject to forfeiture (I.E.,
it is not vested) and is not exercisable by or payable to the Participant.

          "Rule 16b-3" means Rule 16b-3 promulgated by the SEC under the
Exchange Act, or any successor rule or regulation thereto as in effect from time
to time.

          "SEC" means the Securities and Exchange Commission, or any successor
thereto.

          "Unit" means a Common Unit of the Partnership.

3.   ADMINISTRATION.

          The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of the members of the
Committee who are present at any meeting thereof at which a quorum is present,
or acts unanimously approved by the members of the Committee in writing, shall
be the acts of the Committee. Subject to the following and any applicable law,
the Committee, in its sole discretion, may delegate any or all of its powers and
duties under the Plan, including the power to grant Awards under the Plan, to
the Chief Executive Officer of K-Sea General Partner GP LLC (provided that the
Chief Executive Officer is a member of the Board), subject to such limitations
on such delegated powers and duties as the Committee may impose, if any. Upon
any such delegation all references in the Plan to the "Committee," other than in
Section 7, shall be deemed to include the Chief Executive Officer; provided,
however, that such delegation shall not limit the Chief Executive Officer's
right to receive Awards under the Plan. Notwithstanding the foregoing, the Chief
Executive Officer may not grant Awards to, or take any action with respect to
any Award previously granted to, himself, a person who is an officer subject to
Rule 16b-3 or who is a member of the Board. Subject to the terms of the Plan and
applicable law, and in addition to other express powers and authorizations
conferred on the Committee by the Plan, the Committee shall have full power and
authority to: (i) designate Participants; (ii) determine the type or types of
Awards to be granted to a Participant; (iii) determine the number of Units to be
covered by Awards; (iv) determine the terms and conditions of any Award; (v)
determine whether, to what extent, and under what circumstances Awards may be
settled, exercised, canceled, or forfeited; (vi) interpret and administer the
Plan and any instrument or agreement relating to an Award made under the Plan;
(vii) establish, amend, suspend, or waive such rules and regulations and appoint
such agents as it shall deem appropriate for the proper administration of the
Plan; and (viii) make any other determination and take any other action that the
Committee deems necessary or desirable for the administration of the Plan.
Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations, and other decisions under or with respect to
the Plan or any Award shall be within the sole discretion of the Committee, may
be made at any time and shall

                                        3
<Page>

be final, conclusive, and binding upon all Persons, including the Company, the
Partnership, any Affiliate, any Participant, and any beneficiary of any Award.

4.   UNITS.

          (a)  UNITS AVAILABLE. Subject to adjustment as provided in Section
4(c), the number of Units with respect to which Options and Phantom Units may be
granted under the Plan is 440,000. If any Option or Phantom Unit is forfeited or
otherwise terminates or is canceled without the delivery of Units, then the
Units covered by such Award, to the extent of such forfeiture, termination or
cancellation, shall again be Units with respect to which an Option or Phantom
Unit, as the case may be, may be granted.

          (b)  SOURCES OF UNITS DELIVERABLE UNDER AWARDS. Any Units delivered
pursuant to an Award shall consist, in whole or in part, of Units acquired in
the open market, from any Affiliate, or from the Partnership, or any combination
of the foregoing, as determined by the Committee in its discretion.

          (c)  ADJUSTMENTS. In the event that the Committee determines that any
distribution (whether in the form of cash, Units, other securities, or other
property), recapitalization, split, reverse split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, or exchange of Units
or other securities of the Partnership, issuance of warrants or other rights to
purchase Units or other securities of the Partnership, or other similar
transaction or event affects the Units such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or
all of (i) the number and type of Units (or other securities or property) with
respect to which Awards may be granted, (ii) the number and type of Units (or
other securities or property) subject to outstanding Awards, and (iii) the grant
or exercise price with respect to any Award or, if deemed appropriate, make
provision for a cash payment to the holder of an outstanding Award; provided
that the number of Units subject to any Award shall always be a whole number.

          (d)  CASH-OUT OF AWARDS. In the event that the Partnership is
reorganized, merged or consolidated with another entity, the Committee may, in
its sole discretion, (i) require the mandatory surrender to the Partnership by
selected holders of Options of some or all of the outstanding Options held by
such holder (irrespective of whether such Options are then exercisable under the
provisions of the Plan) as of a date (before or after the reorganization, merger
or consolidation) specified by the Committee, in which event the Committee shall
thereupon cancel such Options and pay to each holder thereof an amount of cash
per Unit equal to the excess, if any, of the Cash-Out Value of the Units subject
to such Option over the exercise price(s) under such Options for such Units or
(ii) require the mandatory surrender to the Partnership by selected holders of
Phantom Units of some or all of the outstanding Phantom Units held by such
holder (irrespective of whether such Phantom Units are vested under the
provisions of the Plan) as of a date (before or after the reorganization, merger
or consolidation) specified by the Committee, in which event the Committee shall
thereupon cancel such Phantom Units and pay to each holder an amount of cash per
Phantom Unit equal to the Cash-Out Value of the Units.

                                        4
<Page>

5.   ELIGIBILITY.

          Any Employee who performs services for the benefit of the Partnership
as determined by the Committee, or any Director shall be eligible to be
designated a Participant and receive an Award under the Plan.

6.   AWARDS.

          (a)  OPTIONS. The Committee shall have the authority to determine the
Employees and Directors to whom Options shall be granted, the number of Units to
be covered by each Option, the purchase price therefor, the Restricted Period
and the conditions and limitations applicable to the exercise of the Option,
including the following terms and conditions and such additional terms and
conditions, as the Committee shall determine, that are not inconsistent with the
provisions of the Plan.

               (i)    EXERCISE PRICE. The purchase price per Unit purchasable
          under an Option shall be determined by the Committee at the time the
          Option is granted and may not be less than its Fair Market Value as of
          the date of grant.

               (ii)   TIME AND METHOD OF EXERCISE. The Committee shall determine
          the Restricted Period with respect to an Option, which may include,
          without limitation, accelerated vesting upon the achievement of
          specified performance goals, and the method or methods by which
          payment of the exercise price with respect thereto be made or deemed
          to have been made, which may include, without limitation: (a) cash,
          (b) check acceptable to K-Sea General Partner GP LLC, (c) a
          "cashless-broker" exercise through procedures approved by K-Sea
          General Partner GP LLC or (d) any combination thereof, having a Fair
          Market Value on the exercise date equal to the relevant exercise
          price.

               (iii)  FORFEITURE. Except as otherwise provided in the terms of
          the Option grant, upon termination of a Participant's employment with
          the Company and its Affiliates or membership on the Board, whichever
          is applicable, for any reason during the applicable Restricted Period,
          all Options shall be forfeited by the Participant (or any transferee)
          unless otherwise provided in a written employment agreement between
          the Participant and the Company or its Affiliates. The Committee may,
          in its discretion, waive in whole or in part such forfeiture with
          respect to a Participant's Options.

          (b)  PHANTOM UNITS. The Committee shall have the authority to
determine the Employees and Directors to whom Phantom Units shall be granted,
the number of Phantom Units to be granted to each such Participant, the
Restricted Period, the conditions under which the Phantom Units may become
vested or forfeited, which may include, without limitation, the accelerated
vesting upon the achievement of specified performance goals, and such other
terms and conditions as the Committee may establish with respect to such Awards
including whether DERs are granted with respect to such Phantom Units.

               (i)    DERs. Phantom Units granted under the Plan may include a
          tandem DER grant.

                                        5
<Page>

               (ii)   FORFEITURE. Except as otherwise provided in the terms of
          the Phantom Units grant, upon termination of a Participant's
          employment with the Company and its Affiliates or membership on the
          Board, whichever is applicable, for any reason during the applicable
          Restricted Period, all Phantom Units shall be forfeited by the
          Participant (or any transferee) unless otherwise provided in a written
          employment agreement between the Participant and the Company or its
          Affiliates. The Committee may, in its discretion, waive in whole or in
          part such forfeiture with respect to a Participant's Phantom Units.

               (iii)  LAPSE OF RESTRICTIONS. Unless a different payment time is
          specified in the Award agreement, the Participant shall be entitled to
          receive from the Company one Unit or cash equal to the Fair Market
          Value of a Unit, as determined by the Committee, in its discretion,
          upon or as soon as reasonably practical following the vesting of each
          Phantom Unit.

          (c)  GENERAL.

               (i)    AWARDS MAY BE GRANTED SEPARATELY OR TOGETHER. Awards may,
          in the discretion of the Committee, be granted either alone or in
          addition to, in tandem with, or in substitution for any other Award
          granted under the Plan or any award granted under any other plan of
          the Company or any Affiliate. Awards granted in addition to or in
          tandem with other Awards or awards granted under any other plan of the
          Company or any Affiliate may be granted either at the same time as or
          at a different time from the grant of such other Awards or awards.

               (ii)   LIMITS ON TRANSFER OF AWARDS. Unless otherwise provided in
          the Award agreement, each Option shall be exercisable only by the
          Participant during the Participant's lifetime, or by the person to
          whom the Participant's right shall pass by will or the law of descent
          and distribution. Unless otherwise provided in the Award agreement, no
          Award and no right under any such Award may be assigned, alienated,
          pledged, attached, sold or otherwise transferred or encumbered by a
          Participant and any such purported assignment, alienation, pledge,
          attachment, sale, transfer or encumbrance shall be void and
          unenforceable against the Company and any Affiliate.

               (iii)  TERM OF AWARDS. The term of each Award shall be for such
          period as may be determined by the Committee.

               (iv)   UNIT CERTIFICATES. All certificates for Units or other
          securities of the Partnership delivered under the Plan pursuant to any
          Award or the exercise thereof shall be subject to such stop transfer
          orders and other restrictions as the Committee may deem advisable
          under the Plan or the rules, regulations, and other requirements of
          the SEC, any stock exchange upon which such Units or other securities
          are then listed, and any applicable federal or state laws. The
          Committee may cause a legend or legends to be put on any such
          certificates to make appropriate reference to such restrictions.

                                        6
<Page>

               (v)    CONSIDERATION FOR GRANTS. Awards may be granted for such
          consideration, including services, as the Committee determines.

               (vi)   DELIVERY OF UNITS OR OTHER SECURITIES AND PAYMENT BY
          PARTICIPANT OF CONSIDERATION. Notwithstanding anything in the Plan or
          any grant agreement to the contrary, delivery of Units pursuant to the
          exercise or vesting of an Award may be deferred for any period during
          which, in the good faith determination of the Committee, K-Sea General
          Partner GP LLC is not reasonably able to obtain Units to deliver
          pursuant to such Award without violating the rules or regulations of
          any applicable law or securities exchange. No Units or other
          securities shall be delivered pursuant to any Award until payment in
          full of any amount required to be paid pursuant to the Plan or the
          applicable Award Agreement (including, without limitation, any
          exercise price or tax withholding) is received by K-Sea General
          Partner GP LLC. Such payment may be made by such method or methods and
          in such form or forms as the Committee shall determine, including,
          without limitation, cash, other Awards, withholding of Units,
          cashless-broker exercises with simultaneous sale, or any combination
          thereof; provided that the combined value, as determined by the
          Committee, of all cash and cash equivalents and the Fair Market Value
          of any such Units or other property so tendered to K-Sea General
          Partner GP LLC, as of the date of such tender, is at least equal to
          the full amount required to be paid to K-Sea General Partner GP LLC
          pursuant to the Plan or the applicable Award agreement.

               (vii)  CHANGE IN CONTROL. Subject to additional or contrary
          provisions in the Award agreement, upon a Change in Control or such
          period prior thereto as may be established by the Committee, all
          Awards shall automatically vest and become payable or exercisable, as
          the case may be, in full. In this regard, all Restricted Periods shall
          terminate and all performance criteria, if any, shall be deemed to
          have been achieved at the maximum level. To the extent an Option is
          not exercised upon a Change in Control, the Committee may, in its
          discretion, cancel such Award without payment or provide for a
          replacement grant with respect to such Award on such terms as it deems
          appropriate.

7.   AMENDMENT AND TERMINATION.

          Except to the extent prohibited by applicable law:

          (a)  AMENDMENTS TO THE PLAN. Except as required by the rules of the
principal securities exchange on which the Units are traded and subject to
Section 7(b) below, the Board or the Committee may amend, alter, suspend,
discontinue, or terminate the Plan in any manner, including increasing the
number of Units available for Awards under the Plan, without the consent of any
partner, Participant, other holder or beneficiary of an Award, or other Person.

          (b)  AMENDMENTS TO AWARDS. Subject to Section 7(a), the Committee may
waive any conditions or rights under, amend any terms of, or alter any Award
theretofore granted, provided no change, other than pursuant to Section 7(c), in
any Award shall materially reduce the benefit to a Participant without the
consent of such Participant.

                                        7
<Page>

          (c)  ADJUSTMENT OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR
NONRECURRING EVENTS. The Committee is hereby authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition
of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) of the Plan) affecting the Partnership or the
financial statements of the Partnership, or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan.

8.   GENERAL PROVISIONS.

          (a)  NO RIGHTS TO AWARD. No Person shall have any claim to be granted
any Award under the Plan, and there is no obligation for uniformity of treatment
of Participants. The terms and conditions of Awards need not be the same with
respect to each recipient.

          (b)  WITHHOLDING. The Company, its Affiliate or its designated third
party administrator shall have the right to deduct applicable taxes from any
Award payment and withhold, at the time of delivery or vesting of cash or Units
under this Plan, an appropriate amount of cash or number of Units or a
combination thereof for payment of taxes or other amounts required by law or to
take such other action as may be necessary in the opinion of the Company or its
Affiliate to satisfy all obligations for withholding of such taxes. The
Committee may also permit withholding to be satisfied by the transfer to the
Company or its Affiliate of Units theretofore owned by the holder of the Award
with respect to which withholding is required. If Units are used to satisfy tax
withholding, such Units shall be valued based on the Fair Market Value when the
tax withholding is required to be made.

          (c)  NO RIGHT TO EMPLOYMENT. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate or to remain on the Board, as applicable. Further, the
Company or an Affiliate may at any time dismiss a Participant from employment.

          (d)  GOVERNING LAW. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Delaware without regard to its conflict
of laws principles.

          (e)  SEVERABILITY. If any provision of the Plan or any Award becomes
invalid, illegal, or unenforceable in any jurisdiction or as to any Person or
Award, or would disqualify the Plan or any Award under any law deemed applicable
by the Committee, such provision shall be deemed amended to conform to the
applicable laws, or if it cannot be construed or deemed amended without
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect.

          (f)  OTHER LAWS. Notwithstanding anything in the Plan or any Award
agreement to the contrary, the Committee may refuse to issue or transfer any
Units or other consideration under an Award if, in its sole discretion, it
determines that the issuance or transfer

                                        8
<Page>

of such Units or such other consideration might violate any applicable law or
regulation, the rules of the principal securities exchange on which the Units
are then traded.

          (g)  NO TRUST OR FUND CREATED. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any participating Affiliate and a
Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any participating Affiliate pursuant to
an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

          (h)  NO FRACTIONAL UNITS. No fractional Units shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Units or whether such fractional Units or any rights
thereto shall be canceled, terminated, or otherwise eliminated.

          (i)  HEADINGS. Headings are given to the Sections and subsections of
the Plan solely as a convenience to facilitate reference. Such headings shall
not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any provision thereof.

          (j)  FACILITY OF PAYMENT. Any amounts payable hereunder to any
individual under legal disability or who, in the judgment of the Committee, is
unable to properly manage his financial affairs, may be paid to the legal
representative of such person, or may be applied for the benefit of such person
in any manner that the Committee may select, and the Company and its Affiliates
shall be relieved of any further liability for payment of such amounts.

          (k)  GENDER AND NUMBER. Words in the masculine gender shall include
the feminine gender, the plural shall include the singular and the singular
shall include the plural.

9.   TERM OF THE PLAN.

          The Plan shall be effective on the date of its approval by the Board
and shall continue until the date terminated by the Board or the date Units are
no longer available for the payment of Awards under the Plan, whichever occurs
first. However, unless otherwise expressly provided in the Plan or in an
applicable Award Agreement, any Award granted prior to such termination, and the
authority of the Board or the Committee to amend, alter, adjust, suspend,
discontinue, or terminate any such Award or to waive any conditions or rights
under such Award, shall extend beyond such termination date.

                                        9

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