Document:

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                                                                  Exhibit 10.18

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, made as of May 25, 1999, by and between ICT GROUP,
INC., a Pennsylvania corporation (hereinafter called "Company"), and Vincent
Dadamo, an individual (hereinafter called "Employee").

                                   WITNESSETH

         Company wishes to employ Employee and Employee wishes to enter into the
employ of Company on the terms and conditions contained in this Agreement.

         NOW, THEREFORE, in consideration of the facts, mutual promises and
covenants contained herein and intending to be legally bound hereby, Company and
Employee agree as follows:

         1. Employment. Company hereby employs Employee as Senior Vice President
and General Counsel and Employee hereby accepts employment by Company for the
period of time and upon the terms, conditions and restrictions contained in this
Agreement.

         2. Duties and Responsibilities.

                  (a) Employee agrees to assume such duties and responsibilities
normally associated with the position indicated above, and as may be assigned to
Employee by the President of the Company from time to time. Employee shall
perform any other duties reasonably required by Company and, if requested by
Company, shall serve as an officer or director of Company without additional
compensation.

                  (b) Throughout the term of this Agreement, Employee shall
devote his entire working time, energy, skill and best efforts to the
performance of his duties hereunder in a manner which will faithfully and
diligently further the business and interest of Company. During the term of this
Agreement, Employee may not, directly or indirectly, do any work for any other
company.

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Vincent Dadamo
Employment Agreement
Page 2

         3. Term. This Agreement shall be for a term of one (1) year, commencing
on June 28, 1999 and ending on June 27, 2000 unless sooner terminated as
hereinafter provided. Unless either party elects to terminate this Agreement at
the end of the original or any renewal term by giving the other party written
notice of such election at least ninety (90) days before the expiration of the
then current term, this Agreement shall be deemed to have been renewed for an
additional term of one (1) year commencing on the day after the expiration of
the current term, unless sooner terminated as hereinafter provided.

         4. Compensation.

                  (a) For all of the service rendered by Employee to Company,
Employee shall receive a gross annual salary of $140,000.00, less taxes and
other deductions required by law, payable in reasonable periodic installments in
accordance with Company's regular payroll practices in effect from time to time.
Employee's base salary shall be reviewed by Company's Board of Directors
annually and may be adjusted by the Board of Directors in its sole discretion.

                  (b) In addition to Employee's base salary, Company may pay
Employee from time to time such bonuses or other additional compensation as
Company may determine in its soles discretion.

                  (c) Throughout the term of this Agreement, Employee shall be
eligible to participate in Company's insurance and other benefit plans and
programs subject to their terms, conditions and restrictions. Nothing herein
shall preclude Company from modifying or terminating any insurance or other
benefit plan or program.

                  (d) Employee shall accrue vacation pay at a rate of 1.67 days
per full-month of employment.

                  (e) Employee will not receive any remuneration or any other
benefit from any client or any other company or individual in connection with
any transaction in which Company is involved, directly or indirectly. Nor will
Employee assign or give any part of the compensation which he receives from
Company to any other employee, agent or representative of Company, to any client
or any of its employees, agents or representatives, or to any other person or
entity involved, directly or indirectly, with Company.

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Vincent Dadamo
Employment Agreement
Page 3

         5. Expenses. Company will reimburse Employee for all reasonable
expenses incurred by Employee in connection with the performance of Employee's
duties hereunder upon receipt of vouchers therefor satisfactory to Company and
in accordance with Company's regular reimbursement procedures and practices in
effect from time to time.

         6. Post-Termination Payments.

                  (a) If Employee is terminated by Company pursuant to Paragraph
10 hereof, Company shall pay to Employee a monthly severance payment in an
amount equal to Employee's monthly salary at the time of termination for six (6)
months.

                  (b) Employee shall make reasonable efforts to obtain
replacement income (through employment and other sources) during the period in
which Employee receives post-termination payments from Company.

                  (c) Company's obligation to make post-termination payments
pursuant to Paragraph 6(a) shall be offset by any compensation earned by
Employee, as an employee, consultant, independent contractor or otherwise,
during the period in which Employee receives such post-termination payments.

                  (d) Company's obligations under Paragraph 6(a) shall cease in
the event Employee fails to make reasonable efforts to obtain replacement income
or in the event Employee breaches any of the restrictions or obligations set
forth in Paragraphs 12 and 13 of this Agreement.

         7. Inability. If Employee is unable to perform the essential functions
of his job, with or without reasonable accommodations, for whatever reason, for
a period of thirteen (13) consecutive weeks or for a cumulative period of
nineteen (19) weeks during any twelve-month period, Company shall have the right
to terminate Employee's employment, in which event Company shall have no further
obligations or liabilities hereunder after the date of such termination. The
termination of Employee's employment with Company pursuant to this Paragraph
shall not release Employee from Employee's obligations and restrictions under
Paragraphs 12 and 13 of this Agreement.

         8. Death. If Employee dies, Company shall have no further obligations
or liabilities to Employee's estate or legal representative or otherwise after
the date of his death.

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Vincent Dadamo
Employment Agreement
Page 4

         9. Discharge for Cause. Company may discharge Employee at any time for
"Cause", which shall include, but not be limited to: willful misconduct, fraud,
misappropriation, malfeasance, misfeasance, nonfeasance, embezzlement, gross
negligence, self-dealing, dishonesty, misrepresentation, conviction of a crime
of moral turpitude, or material violation by Employee of any Company policy or
provision of this Agreement. In the event Company terminates Employee's
employment for Cause, Company shall have no further obligations or liabilities
to Employee after the date of such discharge. The termination of Employee's
employment with Company pursuant to this Paragraph shall not release Employee
from Employee's obligations and restrictions under Paragraphs 12 and 13 of this
Agreement.

         10. Discharge Not for Cause. Notwithstanding any other provision of
this Agreement, Company may discharge Employee at any time without cause by
providing Employee with 30 days written notice, which notice Company may waive,
in whole or in part, in its sole discretion, by paying Employee for such 30
days. Upon termination of Employee pursuant to this Paragraph, Company shall be
obligated to provide Employee with post-termination payments in accordance with
Paragraph 6, but shall have no further obligations or liabilities to Employee
after the date of his termination. The termination of Employee's employment with
Company pursuant to this paragraph shall not release Employee from Employee's
obligations and restrictions under Paragraphs 12 and 13 of this Agreement.

         11. Termination by Employee. Employee may terminate his employment
under this Agreement at any time by providing Company with 30 days written
notice, which notice Company may waive, in whole or in part, in its sole
discretion, by paying Employee for such 30 days, Company shall have no further
obligations or liabilities to Employee after the date of his termination. The
termination of Employee's employment with Company pursuant to this Paragraph
shall not release Employee from Employee's obligations and restrictions under
Paragraphs 12 and 13 of this Agreement.

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Vincent Dadamo
Employment Agreement
Page 5

         12. Company Property.

                  (a) All advertising, sales, manufacturers' and other materials
or articles or information, including without limitation data processing
reports, client sales analyses, invoices, price lists or information, samples or
any other materials or data of any kind furnished to Employee by Company or
developed by Employee on behalf of Company or at Company's direction or for
Company's use or otherwise in connection with Employee's employment hereunder,
are and shall remain the sole and confidential property of Company.

                  (b) Immediately upon termination of Employee's employment,
whether by Employee or Company, whether during the term of this Agreement, upon
its expiration or subsequent to its expiration, Employee shall deliver to
Company, all Company property (for example, keys and credit cards) and all
documents, books, records, lists and other documents relating to Company's
business, regardless of where or by whom said writings were kept or prepared,
retaining no copies.

                  (c) In the event Employee receives notice from Company that
his employment is or will be terminated or Employee provides Company with notice
of his intent to resign, within five (5) days of receiving or providing such
notice, and thereafter as may be requested by Company, Employee shall provide
Company with a list of all clients and potential clients with whom he is working
and/or negotiating and a summary of the status of each matter with which he is
involved, directly or indirectly.

         13. Restrictive Covenants, Trade Secrets, Etc.

                  (a) For a period of one (1) year after the termination of his
employment with Company, for any reason whatsoever, whether during the term of
this Agreement, upon its expiration or subsequent to its expiration, whether by
Employee or Company, Employee shall not for his own benefit or for the benefit
of any third party, directly or indirectly, in any capacity, participate in any
of the following activities: (i) hire or do any business with any employee of
Company or otherwise induce or attempt to influence any employee of Company to
terminate his or her employment with Company; (ii) divert, solicit, or do any
business with any current, former (within two (2) years of the date of
termination), or potential (engaged in discussion with Company as of the date of
termination) client of Company; or (iii) cause or attempt to cause any current,
former, or

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Vincent Dadamo
Employment Agreement
Page 6

potential client to refrain from doing business with Company. In light of the
fact that the clients of Company will be engaged in operations nationwide and
Company will be contacting potential customers for its clients throughout the
entire United States, the restrictions set forth in this Paragraph 13(a) shall
apply throughout the entire United States.

                  (b) During the term of this Agreement and at all times
thereafter, Employee shall not use for his personal benefit, or disclose,
communicate or divulge to, or use for the direct or indirect benefit of any
person, firm, association or company other than Company, any material referred
to in Paragraph 12 above or any information regarding the business methods,
business policies, procedures, techniques, research or development projects or
results, trade secrets, or other knowledge or processes of or developed by
Company or any names and addresses of clients or customers or any data on or
relating to past, present or prospective clients or customers or any other
confidential information relating to or dealing with the business operations or
activities of Company, made known to Employee or learned or acquired by Employee
while in the employ of Company.

                  (c) Any and all writing, inventions, improvements, processes,
procedures and/or techniques which Employee may make, conceive, discover or
develop, either solely or jointly with any other person or persons, at any time
during the term of this Agreement, whether during working hours or at any other
time and whether at the request or upon the suggestion of Company or otherwise,
which relate to or are useful in connection with any business now or hereafter
carried on or contemplated by Company, including developments or expansions of
its present fields of operations, shall be the sole and exclusive property of
Company. Employee shall make full disclosure to Company of all such writings,
inventions, improvements, processes, procedures and techniques, and shall do
everything necessary or desirable to vest the absolute title thereto in Company.
Employee shall write and prepare all specifications and procedures regarding
such inventions, improvements, processes, procedures and techniques and other
aid and assist Company so that Company can prepare and present applications for
copyright or Letters Patent therefor and can secure such copyright or Letters
Patent wherever possible, as well as reissues, renewals, and extensions thereof,
and can obtain the record title to such copyright or patents so that Company
shall be the sole and absolute owner thereof in all

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Vincent Dadamo
Employment Agreement
Page 7

countries in which it may desire to have copyright or patent protection.
Employee shall not be entitled to any additional or special compensation or
reimbursement regarding any and all such writings, inventions, improvements,
processes, procedures and techniques, except that Company shall reimburse
Employee for any expenses which Employee may incur in vesting absolute title
thereto in Company.

                  (d) Employee acknowledges that the restrictions contained in
the foregoing subparagraphs (a), (b), and (c), in view of the nature of the
business in which Company is engaged, are reasonable and necessary in order to
protect the legitimate interests of Company, and that any violation thereof
would result in irreparable injuries to Company, and Employee therefore
acknowledges that, in the event of his violation of any of these restrictions,
Company shall be entitled to obtain from any court of competent jurisdiction
preliminary and permanent injunctive relief as well as damages and an equitable
accounting of all earnings, profits and other benefits arising from such
violation, which rights shall be cumulative and in addition to any other rights
or remedies to which Company may be entitled.

                  (e) Employee agrees that if any or any portion of the
foregoing covenants or the application thereof, is construed to be invalid or
unenforceable, the remainder of such covenant or covenants shall not be affected
and the remaining covenant or covenants shall then be given full force and
effect without regard to the invalid or unenforceable portion(s). If the
covenant is held to be unenforceable because of the area covered, the duration
thereof or the scope thereof, Employee agrees that the court making such
determination shall have the power to reduce the area and/or the duration and/or
scope thereof, and the covenant shall then be enforceable in its reduced form.

                  (f) If Employee violates any of the restrictions contained in
the foregoing subparagraph (a), the restrictive period shall not run in favor of
Employee from the time of the commencement of any violation until such time as
the violation shall be cured by Employee to the satisfaction of Company.

         14. Prior Agreements. Employee represents to Company (a) that there are
no restrictions, agreements or understandings whatsoever to which Employee is a
party which would prevent or make unlawful his execution of this Agreement or
his employment hereunder; (b) there are no agreements, restrictions or
understandings whatsoever to which Employee is a party which place any
limitations as to the companies

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Vincent Dadamo
Employment Agreement
Page 8

or individuals with whom he may ado business; (c) that his execution of this
Agreement and his employment hereunder shall not constitute a breach of any
contract, agreement or understanding, oral or written, to which he is a party
and by which he is bound; and (d) that he is free and able to execute this
Agreement and to enter into employment by Company.

         15. Miscellaneous.

                  (a) Waiver. The waiver by Company of a breach of any provision
of this Agreement by Employee shall not operate or be construed as a waiver of
any subsequent breach by Employee. No waiver shall be valid unless in writing
and signed by Company's President.

                  (b) Controlling Law. This Agreement and all questions relating
to validity, interpretation, performance and enforcement (including, without
limitation, provisions concerning limitations of actions), shall be governed by
and construed in accordance with the laws of the Commonwealth of Pennsylvania,
and without the aid of any canon, custom or rule of law requiring construction
against the draftsman.

                  (c) Notices. All notices, requests, demands and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given, made and received only when
delivered (personally, by courier service such as Federal Express, or by other
messenger) or when deposited in the United States mails, registered or certified
mail, postage prepaid, return receipt requested, addressed in the case of
Company, to its President at its principal place of business, and in case of
Employee, to his home address,

                  (d) Binding Nature of Agreement. This Agreement shall be
binding upon and inure to the benefit of Company and its successors and assigns
and shall be binding upon Employee, his heirs and legal representatives.

                  (e) Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which shall be deemed to be an original
as against any party whose signature appears thereon, and all of which shall
together constitute one and the same instrument.

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Vincent Dadamo
Employment Agreement
Page 9

                  (f) Provisions Separable. The provisions of this Agreement are
independent of and separable from each other, and no provision shall be affected
or rendered invalid or unenforceable by virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in part.

                  (g) Entire Agreement. This Agreement contains the entire
understanding between the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements and
understandings, inducements or conditions, express or implied, oral or written.
The express terms hereof control and supersede any course of performance an/or
usage of the trade inconsistent with any of the terms hereof. This Agreement may
not be modified or amended other than by an agreement in writing and signed by
the Company's President.

                  (h) Paragraph Headings. The paragraph headings in this
Agreement are for convenience only; they form no part of this Agreement and
shall not affect its interpretation.

                  (i) Survival. The covenants contained in Paragraphs 12 and 13
shall survive the expiration of this Agreement and the termination of Employee's
employment.

                  (j) Number of Days. In computing the number of days for
purposes of this Agreement, all days shall be counted, including Saturdays,
Sundays and holidays; provided, however, that if the final day of any time
period falls on a Saturday, Sunday or holiday on which federal banks are or may
elect to be closed, then the final day shall be deemed to be the next day which
is not a Saturday, Sunday or such holiday.

                  IN WITNESS WHEREOF, the parties have executed and delivered
this Agreement in Langhorne, Pennsylvania on the date first above written.

ICT GROUP, INC.

By:_____________________________      ____________________________
         John J. Brennan                     Vincent Dadamo

________________________________      ____________________________
              Date                               Date<PAGE>

================================================================================

                      THIRD SUPPLEMENTAL INDENTURE OF TRUST
                             AND SECURITY AGREEMENT

                          Dated as of December 1, 1999

                                      From

                        MARITRANS OPERATING PARTNERS L.P.

                                       and

                          MARITRANS CAPITAL CORPORATION

                                       To

                            WILMINGTON TRUST COMPANY,
                                   as Trustee

================================================================================

                                   EXHIBIT A
                           (to Waiver and Agreement)

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                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
SECTION                                                       HEADING                                          PAGE
<S>                                 <C>                                                                          <C>
Parties...........................................................................................................1

Recitals..........................................................................................................1

SECTION 1.                 WAIVER.................................................................................1

SECTION 2.                 AMENDMENTS TO INDENTURE................................................................2

       Section 2.1.        Amendments to Section 4.5..............................................................2
       Section 2.2.        Amendments to Section 4.10.............................................................2
       Section 2.3.        Amendments to Section 6.3..............................................................2
       Section 2.4.        Amendments to Section 6.4..............................................................3
       Section 2.5.        Amendment to Section 4.14..............................................................6

SECTION 3.                 MISCELLANEOUS PROVISIONS...............................................................7

       Section 3.1.        Defined Terms..........................................................................7
       Section 3.2.        Ratification of Indenture..............................................................7
       Section 3.3.        Counterparts...........................................................................7
       Section 3.4.        References to Indenture................................................................7

Signature Page....................................................................................................8
</TABLE>
ATTACHMENT TO THIRD SUPPLEMENTAL INDENTURE OF TRUST AND SECURITY AGREEMENT:

SCHEDULE I -- Proposed Vessel Sales

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          THIRD SUPPLEMENTAL INDENTURE OF TRUST AND SECURITY AGREEMENT

         THIRD SUPPLEMENTAL INDENTURE OF TRUST AND SECURITY AGREEMENT (this
"Third Supplement") dated as of December 1, 1999, among MARITRANS OPERATING
PARTNERS L.P., a Delaware limited partnership (the "Partnership"), MARITRANS
CAPITAL CORPORATION, a Delaware corporation (the "Company"), and WILMINGTON
TRUST COMPANY, a Delaware banking corporation, as trustee (the "Trustee") for
the holders of the Notes (the "Holders") which Notes were issued under the
Indenture defined below.

                                    RECITALS:

          A. The Partnership, the Company and the Trustee have heretofore
executed and delivered the Indenture of Trust and Security Agreement dated as of
March 15, 1987 (as heretofore amended and supplemented by a First Supplemental
Indenture of Trust and Security Agreement dated as of August 15, 1989, a Second
Supplemental Indenture of Trust and Security Agreement dated as of April 1,
1996, and as further amended and supplemented, the "Indenture") providing for
the issuance of certain secured promissory notes of the Company and pursuant
thereto the Company has issued (i) $35,000,000 aggregate principal amount of its
Series A Notes due April 1, 1997, all of which are retired, (ii) $80,000,000
aggregate principal amount of its Series B Notes due April 1, 2007, $52,000,000
of which are currently outstanding and (iii) $20,000,000 aggregate principal
amount of its Series C Notes due June 30, 1995, all of which are retired (the
outstanding Series B Notes are herein collectively referred to as the "Notes");

          B. The Company and the Partnership have entered into agreements for
the sale of a number of the Vessels (as defined in the Indenture) to one or more
third party purchasers which sales, in the aggregate, are not currently
permitted under the Indenture and are conditioned upon obtaining the consent
thereto of the requisite percentage of the holders of the Notes; and

          C. Pursuant to Section 10.2 of the Indenture, the Partnership, the
Company and the holders of at least 66-2/3% in aggregate principal amount of the
Notes have agreed to waive the provisions of the Indenture which would not
permit the Vessel sales referred to in paragraph B above and to further amend
the Indenture, all in the manner as set forth below.

         NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, receipt of which upon delivery of this Third Supplement
the undersigned hereby acknowledge, the Partnership, the Company and the Trustee
hereby agree as follows:

SECTION 1. WAIVER.

         In consideration of the conditions precedent and the amendments to the
Indenture set forth below, the requirement in Section 4.5 of the Indenture which
limits sales of assets is hereby waived in order to permit the Proposed Vessel
Sales during the Waiver Period. As used herein (i) the term "Proposed Vessel
Sales" shall mean the sale by the Partnership to one or more third parties of

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(A) any or all of the fifteen (15) barges of the Partnership which are described
on Schedule I hereto and (B) any or all of the eleven (11) tugboats of the
Partnership which are also described on Schedule I for an aggregate purchase
price of approximately $48,000,000, provided, that if any consideration received
for any such Vessel sale is in the form of an obligation of the buyer of such
Vessel, (A) each such obligation shall be secured by a perfected Second
Preferred Ship Mortgage on such Vessel (all such obligations being the "Waiver
Obligations") and (B) the aggregate principal amount of all Waiver Obligations
received for the Proposed Vessel Sales shall not exceed $9,000,000, and (ii) the
term "Waiver Period" means the period beginning on December 1, 1999 and ending
on and including March 31, 2000.

SECTION 2. AMENDMENTS TO INDENTURE.

         Section 2.1. Amendments to Section 4.5. Section 4.5 of the Indenture is
amended and restated in its entirety to read as follows:

                 4.5. Merger, Consolidation, Sale of Assets. The Partnership
         will not, and will not permit any Subsidiary, to consolidate with or
         merge into any other Person other than the Partnership or another
         Subsidiary or permit any other Person to consolidate with or merge into
         the Partnership or any of its Subsidiaries or sell, lease or otherwise
         dispose of all or any substantial part of the assets of the Partnership
         and its Subsidiaries, except a sale, lease or other disposition from a
         Subsidiary to the Partnership. As used in this Section 4.5, a sale,
         lease or other disposition of assets shall be deemed to be a
         "substantial part" of the assets of the Partnership and its
         Subsidiaries only if the book value of such assets when added to the
         book value of all other assets sold, leased or otherwise disposed of by
         the Partnership and its Subsidiaries (other than in the ordinary course
         of business) during the immediately preceding period of twelve calendar
         months exceeds 10% of Consolidated Net Tangible Assets determined as of
         the end of the immediately preceding fiscal quarter of the Partnership;
         provided, however, that (i) any sales during the Waiver Period of
         Vessels which are included in the Proposed Vessel Sales shall not be
         deemed to be assets sold, leased or otherwise disposed of for purposes
         of the computations required by the foregoing provisions of this
         Section 4.5 and (ii) for any other sale, lease or disposition of assets
         subject to the foregoing limitations of this Section 4.5 which occur
         during the period beginning on December 1, 1999 and ending on and
         including the first anniversary of the last day of the Waiver Period,
         the limitation with respect thereto in this sentence which reads "10%
         of Consolidated Net Tangible Assets" shall be amended to read "3% of
         Consolidated Net Tangible Assets". Sales or other realization on
         delinquent receivables shall not be included in any computation of
         sales or other dispositions hereunder.

         Section 2.2. Amendments to Section 4.10. Paragraph (g) of Section 4.10
is redesignated as paragraph (h), the "and" at the end of paragraph (f) is
hereby deleted and a new paragraph (g) is added after paragraph (f) which reads
as follows:

                      (g) Waiver Obligations received from the Proposed Vessel
Sales; and

         Section 2.3. Amendments to Section 6.3. Section 6.3 of the Indenture is
amended and restated in its entirety to read as follows:

                                      -2-

<PAGE>

         Section 6.3. Sale and Release of Mortgaged Property. At any time so
long as the Partnership shall be in compliance with Section 4.5 hereof and no
Default or Event of Default has occurred which is then continuing, the
Partnership:

                      (a) may sell during the Waiver Period any of the Vessels
         which are included in the Proposed Vessel Sales provided that the
         proceeds from any such sales including any documents evidencing the
         Waiver Obligations and payments required thereunder (collectively,
         "Sale Waiver Proceeds") shall be deposited with the Trustee to be held
         and administered pursuant to the provisions of Section 6.4, and

                      (b) may sell property which constitutes Mortgaged Property
         other than Proposed Vessel Sales described in clause (a) of this
         Section 6.3 (a "Mortgaged Property Sale") provided that either (i)
         concurrently with the sale of such property Substitute Collateral
         having an appraised value equal to or greater than the property sold
         shall be added by the Partnership to Mortgaged Property pursuant to the
         provisions of Section 6.5 hereof, or (ii) if the proceeds of sale
         received from a Mortgaged Property Sale exceed the appraised value of
         the Substitute Collateral, if any, added to Mortgaged Property by the
         Partnership concurrently with the sale of such property pursuant to the
         provisions of Section 6.5 hereof, then the Partnership shall deposit
         cash with the Trustee in the amount of such excess (the amount of such
         excess for each such Mortgaged Property Sale being referred to as
         "Unreplaced Sale Proceeds") to be held and administered by the Trustee
         pursuant to the provisions of Section 6.4 hereof; provided, that
         concurrently with or prior to any such Mortgaged Property Sale, the
         Partnership shall deliver to the Trustee an Officers' Certificate
         stating: (i) the amount of cash to be received by the Partnership from
         the sale of such property, (ii) that the amount of the proceeds of sale
         is equal to or greater than the fair value of such property as
         determined pursuant to a resolution of the Board of Directors of the
         Partnership, (iii) a detailed description of such property, (iv) that
         such sale is desirable in the proper conduct of the business of the
         Partnership and will not have a material adverse effect upon such
         business and (v) whether any Substitute Collateral will be added to
         Mortgaged Property in connection with Mortgaged Property Sale and, if
         so, a detailed description thereof and the appraised value thereof.

         Section 2.4. Amendments to Section 6.4. Section 6.4 of the Indenture is
amended and restated in its entirety to read as follows:

                      Section 6.4. Proceeds of Losses and Sale of Mortgaged
         Property. (a) Upon receipt by the Trustee of any Unreplaced Loss
         Proceeds, Sale Waiver Proceeds or Unreplaced Sale Proceeds (any such
         Proceeds so received being sometimes hereinafter referred to as
         "Unreplaced Proceeds"), the Trustee shall (1) apply the cash received
         as Unreplaced Proceeds to the purchase of Liquid Collateral or for the
         purposes hereinafter set forth and (2) collect from any Waiver
         Obligations received as Unreplaced Proceeds, all cash amounts as they
         become due thereunder and apply collections therefrom to the purchase
         of Liquid Collateral or for the purposes hereinafter set forth. The
         Trustee shall release the funds deposited and collected pursuant to
         this Section 6.4 (collectively, the "Unreplaced Proceeds Funds") for
         any of the following purposes as shall be directed by the Company:

<PAGE>

                      (i) to make tax payments of the Company permitted by
               Section  6.4(b);

                      (ii) for the  purposes of improving  or adding to
               Mortgaged  Property  described in Section 6.4(c); or

                      (iii) to pay regularly scheduled payments of principal
               on the Notes when due or payments of principal becoming due as a
               result of a special prepayment or an optional prepayment and any
               Yield-Maintenance Premium which may become due in connection with
               any such payment or prepayment;

         provided, however, that (x) payments for the purposes described in
         clause (iii) above of this Section 6.4(a) may only be made from Sale
         Waiver Proceeds (including cash collections from Waiver Obligations)
         and (y) not less than ten (10) Business Days prior to the release of
         any Unreplaced Proceeds Funds, the Partnership shall deliver an
         Officers' Certificate to each holder of the Notes containing (1) a
         detailed description of the payments which will be made and supporting
         calculations, if any, of the payments to be so made by the Trustee and
         (2) the amount of the Unreplaced Proceeds Funds remaining after giving
         effect to such release, and provided further that no funds released
         pursuant to the foregoing provisions of this paragraph shall, for
         purposes of determining Net Cash Available to Partners, be deemed to be
         under clause (2)(b) of the definition thereof "cash proceeds from the
         sale or other disposition of capital assets of the Partnership which
         are paid to the Partnership . . . and are not otherwise required to be
         held by the Trustee hereunder . . . ."

                      (b) If as a result of a sale on or after December 1, 1999
         of one or more Vessels constituting Mortgaged Property (including any
         Proposed Vessel Sales), the Partnership shall incur additional Federal
         and/or state income taxes or estimated taxes with respect to any such
         sale, the Partnership shall have the right to withdraw during the
         period beginning on the date of such sale and ending on and including
         the last day of the fiscal year next following the fiscal year in which
         such sale occurs (the "Withdrawal Period"), an amount to pay such taxes
         computed as hereinafter described; provided, that the aggregate amount
         withdrawn under this Section 6.4(b) shall not exceed the sum of:

                          (i) $7,500,000;

                          (ii) the product of $1,000,000 multiplied by a whole
                      number equal to the number of April 1 dates which have
                      occurred during the period beginning December 1, 1999 and
                      ending on the date the proposed withdrawal shall be made;
                      and

                                      -4-

<PAGE>

                          (iii) an amount equal to 50% of the aggregate amount
                      of cash collections received by the Trustee from Waiver
                      Obligations during the period beginning December 1, 1999
                      and ending on the date the proposed withdrawal shall be
                      made.

                      At any time during the Withdrawal Period for the sale of
         one or more Vessels, the Partnership, subject to the withdrawal
         limitations in the preceding paragraph, may withdraw amounts to pay
         estimated taxes of the Partnership for the fiscal year in which the
         sale occurs or to pay income taxes for such fiscal year as follows:

                          (i) in the case of estimated taxes, the amount subject
                      to being withdrawn shall equal the excess, if any, of (A)
                      the estimated Federal and state income taxes for the
                      Partnership for any fiscal period including the fiscal
                      quarter in which such sale occurs determined by including
                      therein the sale of Vessels constituting Mortgaged
                      Property which were sold during such fiscal period, over
                      (B) the estimated federal and state income taxes for the
                      Partnership for such fiscal period determined by excluding
                      the sale of all Vessels constituting Mortgaged Property
                      sold during such fiscal period, and

                          (ii) in the case of taxes for the fiscal year in which
                      the sale occurs, the amount subject to being withdrawn
                      shall equal the excess, if any, of (A) the Federal and
                      state income taxes for the Partnership for such fiscal
                      year including therein the sale of all Vessels
                      constituting Mortgaged Property which were sold during
                      such fiscal year, over (B) the federal and state income
                      taxes for the Partnership for such fiscal year determined
                      by excluding the sale of all Vessels constituting
                      Mortgaged Property which were sold during such period;

         provided, that (x) any calculation of an amount which is withdrawable
         to pay income taxes for a fiscal year shall be reduced by any amounts
         previously withdrawn for income taxes for such fiscal year and for
         estimated taxes with respect to income taxes for such fiscal year, and
         (y) if any amounts are withdrawn to pay estimated taxes with respect to
         a fiscal year, the Partnership shall, prior to the end of the
         applicable Withdrawal Period, calculate the aggregate amount
         withdrawable for such fiscal year under clause (ii) of this paragraph
         (the "Clause (ii) Amount") and redeposit with the Trustee as Unreplaced
         Proceeds Funds the amount, if any, by which the amounts so withdrawn
         exceeded the Clause (ii) Amount.

                      (c) The Trustee shall release Unreplaced Proceeds Funds as
         follows: (x) upon delivery to the Trustee by the Partnership of
         Substitute Collateral pursuant to the provisions of Section 6.5 hereof,
         the Trustee shall release such Unreplaced Proceeds Funds in an amount
         equal to the appraised value of such Substitute Collateral or (y) the
         Trustee shall release such Unreplaced Proceeds Funds in payment of or
         to reimburse the Partnership for repairs or improvements to Mortgaged
         Property made after such deposit provided that prior to the release of
         the proceeds for such repairs or improvements the Partnership shall
         deliver an Officers' Certificate to the Trustee (i) containing a
         detailed description of the repairs or improvements so made and (ii)
         providing information satisfactory to the Trustee regarding the cost of
         such repairs or improvements or (z) the Trustee shall advance all or
         any part of such Unreplaced Proceeds Funds for the purpose of Vessel

                                      -5-

<PAGE>

         Construction of a vessel not subject to the Lien of the Mortgages which
         advances shall not exceed the aggregate amount of $20,000,000 at any
         time outstanding, provided, that (i) any such advances shall be secured
         in favor of the Trustee by perfected Vessel Construction Financing
         Liens which may be subject to the liens described in paragraphs (c) and
         (d) of the definition of Permitted Liens hereof and which shall be no
         less than pari passu with Vessel Construction Financing Liens, if any,
         securing Additional Indebtedness pursuant to Section 4.6(a)(6), and
         (ii) as soon as practicable after the date of the completion of Vessel
         Construction of such vessel and in any event no later than the
         expiration of the 180 day period next following the first to occur of
         such date of completion or the date on which such vessel is placed in
         service, such vessel shall be added to the Lien of the Mortgage as an
         Additional Vessel and concurrently with such addition (A) the
         Partnership shall have filed with the Trustee an Officers' Certificate
         in the form and covering matters required by Section 6.5(i) hereof, an
         Additional Mortgage covering such vessel and an opinion satisfying the
         requirements of Section 6.5(v) hereof and (B) upon receipt by the
         Trustee from the Partnership of the items specified in the preceding
         clause (z)(ii)(A), the Trustee shall have released the advances of such
         Unreplaced Proceeds Funds and released the Vessel Construction
         Financing Liens securing the advances of such Unreplaced Proceeds
         Funds.

         Section 2.5. Amendment to Section 4.14. The lead-off provisions of
Section 4.14 and paragraph (a) of Section 4.14 are restated to read as follows:

                      4.14. Officers' Certificates. Each set of financial
         statements delivered pursuant to Section 4.13(a) or Section 4.3(b) will
         be accompanied by a certificate of an authorized financial officer of
         the Managing General Partner setting forth:

                          (a) Covenant Compliance; Calculations -- the
                      information (including detailed calculations where
                      necessary) required in order to establish whether the
                      Partnership was in compliance with the requirements of
                      Sections 4.5 through 4.12 during the period covered by the
                      income statement then being furnished; provided, that the
                      certificate accompanying (i) each set of quarterly
                      financial statements for a fiscal quarter delivered
                      pursuant to Section 4.13(a) shall contain detailed
                      calculations of the following defined terms for such
                      fiscal quarter of (A) Partnership Net Income, (B) Cash
                      Flow Available for Debt Service, (C) Net Cash Available to
                      Partners and (D) Net Cash Distributable to Partners and
                      (ii) each set of annual financial statements for a fiscal
                      year delivered pursuant to Section 4.13(b) shall contain
                      detailed calculations of the four defined terms referred
                      to in clause (i) of this proviso for the last fiscal
                      quarter of such fiscal year and for the entire fiscal year
                      and, in addition, each such certificate shall contain
                      (iii) specific information on the sale of Vessels during
                      such period which constituted Proposed Vessel Sales
                      including (A) the names of the Vessels sold, (B) the
                      aggregate sales price and net proceeds, (C) a description
                      of any Waiver Obligations received as proceeds including
                      remaining principal amount, payment terms and collateral
                      securing the Waiver Obligations, (iv) the amount, if any,
                      of Unreplaced Proceeds Funds withdrawn during such period,

                                      -6-

<PAGE>

                      and (v) the amount of Unreplaced Proceeds Funds held by
                      the Trustee under Section 6.4 as of the end of said
                      period; and

SECTION 3. MISCELLANEOUS PROVISIONS.

         Section 3.1. Defined Terms. All terms used in this Third Supplement not
defined herein but which are defined in the Indenture, as hereby amended, are
used herein as so defined.

         Section 3.2. Ratification of Indenture. Except as herein expressly
amended, the Indenture is in all respects ratified and confirmed. If and to the
extent that any of the terms or provisions of the Indenture are in conflict or
inconsistent with any of the terms or provisions of this Third Supplement, this
Third Supplement shall govern.

         Section 3.3. Counterparts. This Third Supplement may be simultaneously
executed in any number of counterparts and all such counterparts together, each
as an original, shall constitute but one and the same instrument.

         Section 3.4. References to Indenture. Any and all notices, requests,
certificates and any other instruments, including the Note Agreements, the
Notes, the Guaranty Agreements and the Mortgages, may refer to the Indenture or
the Indenture dated as of March 15, 1987, without making specific reference to
this Third Supplement, but nevertheless all such references shall be deemed to
include this Third Supplement unless the document or instrument, as the case may
be, shall otherwise require.

                                      -7-

<PAGE>

         IN WITNESS WHEREOF, the Partnership, the Company and the Trustee have
each caused this Third Supplement to be executed all as of the day and year
first above written.

                                            MARITRANS OPERATING PARTNERS L.P.

                                            By  Maritrans General Partner Inc.
                                            Its Managing General Partner

                                                By /s/ Walter T. Bromfield
ATTEST:                                         Its  President

/s/ Arthur J. Volkle, Jr.

                                            MARITRANS CAPITAL CORPORATION

                                            By  /s/ Walter T. Bromfield
[CORPORATE SEAL]                            Its President

ATTEST:

/s/ Arthur J. Volkle, Jr.
                                            WILMINGTON TRUST COMPANY, as Trustee

                                            By  /s/ C. Paglia
                                            Its Financial Services Officer

[SEAL]

ATTEST:

/s/ J.B. Feil

                                      -8-

<PAGE>

COMMONWEALTH OF PENNSYLVANIA        )
                                    )   SS:
COUNTY OF PHILADELPHIA              )

         I, Janet Groome, a Notary Public in and for said county in the
Commonwealth aforesaid, do hereby certify that Walter T. Bromfield, personally
known to me to be Vice President of Maritrans General Partner Inc., a Delaware
corporation, managing general partner of Maritrans Operating Partners L.P., a
Delaware limited partnership, the corporation that executed the within
instrument on behalf of said partnership, and personally known to me to be the
same person whose name is subscribed as such officer to the foregoing
instrument, appeared before me this day in person and acknowledged that the seal
affixed to this instrument is such corporation's seal and that such officer,
being thereunto duly authorized, signed and delivered said instrument as such
officer's free and voluntary act and the free and voluntary act of said
corporation, for the uses and purposes therein set forth.

         Given under my hand and notarial seal this 8th day of December, 1999.

                                                             /s/ Janet Groome
                                                             -----------------
                                                                 Notary Public
[NOTARIAL SEAL]

My commission expires:

                                      -9-

<PAGE>

COMMONWEALTH OF PENNSYLVANIA        )
                                    )   SS:
COUNTY OF PHILADELPHIA              )

         I, Janet Groome, a Notary Public in and for said county in the
Commonwealth aforesaid, do hereby certify that Walter T. Bromfield, personally
known to me to be President of Maritrans General Partner Inc., a Delaware
corporation, managing general partner of Maritrans Capital Corporation, a
Delaware limited partnership, the corporation that executed the within
instrument on behalf of said partnership, and personally known to me to be the
same person whose name is subscribed as such officer to the foregoing
instrument, appeared before me this day in person and acknowledged that the seal
affixed to this instrument is such corporation's seal and that such officer,
being thereunto duly authorized, signed and delivered said instrument as such
officer's free and voluntary act and the free and voluntary act of said
corporation, for the uses and purposes therein set forth.

         Given under my hand and notarial seal this 8th day of December, 1999.

                                                             /s/ Janet Groome
                                                             -----------------
                                                             Notary Public
 [NOTARIAL SEAL]

My commission expires:

                                      -10-

<PAGE>

_______________________________     )
                                    )   SS:
COUNTY OF ____________________      )

         I, Karen Newson, a Notary Public in and for said county in the
Commonwealth aforesaid, do hereby certify that Charlotte Paglia, personally
known to me to be Financial Services Officer of Wilmington Trust Company, a
Delaware banking corporation, the corporation that executed the within
instrument on behalf of said partnership, and personally known to me to be the
same person whose name is subscribed as such officer to the foregoing
instrument, appeared before me this day in person and acknowledged that the seal
affixed to this instrument is such corporation's seal and that such officer,
being thereunto duly authorized, signed and delivered said instrument as such
officer's free and voluntary act and the free and voluntary act of said
corporation, for the uses and purposes therein set forth.

         Given under my hand and notarial seal this 8th day of December, 1999.

                                                          /s/ Karen S. Newson
                                                          --------------------
                                                          Notary Public
[NOTARIAL SEAL]

My commission expires:

                                      -11-

<PAGE>

                                   SCHEDULE I

         The following Vessels are proposed to be sold and constitute "Proposed
Vessel Sales":

A. BARGES

              VESSEL NAME              CAPACITY IN BARRELS            YEAR BUILT

    1.      Interstate 55                      53,012                    1972
    2.      Ocean 60                           61,636                    1981
    3.      Interstate 70                      73,214                    1972
    4.      Interstate 71                      81,759                    1975
    5.      Ocean 81                           80,000                    1981
    6.      Ocean 90                           97,200                    1967
    7.      Ocean 96                           95,581                    1969
    8.      Ocean 115                         116,440                    1968
    9.      Ocean 135                         135,216                    1969
    10.     Ocean 155                         166,881                    1974
    11.     Maritrans 32                       31,502                    1982
    12.     Interstate 35                      37,543                    1973
    13.     Interstate 36                      36,567                    1973
    14.     Interstate 38                      37,553                    1974
    15.     Interstate 53                      53,903                    1970

B. TUGBOATS

                VESSEL NAME                  HORSEPOWER               YEAR BUILT

    1.      Venturer                            3,200                    1973
    2.      Ambassador                          4,000                    1976
    3.      Corsair                             4,000                    1972
    4.      Diplomat                            4,000                    1978
    5.      Clipper                             5,600                    1969
    6.      Cougar                              2,200                    1975
    7.      Patriot                             3,000                    1981
    8.      Voyager II                          3,200                    1974
    9.      Schuykill                           1,800                    1981
    10.     Roanoke                             2,100                    1967
    11.     Endeavor                            2,200                    1970

<PAGE>

================================================================================

                              WAIVER AND AGREEMENT

                          Dated as of December 1, 1999

                        MARITRANS OPERATING PARTNERS L.P.

                                       and

                          MARITRANS CAPITAL CORPORATION

                  Re: Indenture of Trust and Security Agreement
                           dated as of March 15, 1987

================================================================================

<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                HEADING                                                  PAGE

<S>                         <C>                                                                                  <C>
SECTION 1.                 HOLDERS' CONSENT TO THIRD SUPPLEMENT; PARTNERSHIP AND COMPANY AGREEMENT
                           TO THIRD SUPPLEMENT....................................................................2

SECTION 2.                 WARRANTIES AND REPRESENTATIONS REGARDING THE NOTES.....................................3

SECTION 3.                 WARRANTIES AND REPRESENTATIONS OF THE PARTNERSHIP AND THE COMPANY
                           REGARDING THE COMPANY..................................................................3

       Section 3.1.        Corporate Organization and Authority...................................................3
       Section 3.2.        Pending Litigation.....................................................................3
       Section 3.3.        Governmental Consent...................................................................3
       Section 3.4.        Compliance with Law....................................................................4
       Section 3.5.        No Defaults............................................................................4
       Section 3.6.        Certain Documents Legal and Authorized.................................................4

SECTION 4.                 WARRANTIES AND REPRESENTATIONS OF THE PARTNERSHIP REGARDING THE
                           PARTNERSHIP............................................................................5

       Section 4.1.        Organization and Authority.............................................................5
       Section 4.2.        Pending Litigation.....................................................................5
       Section 4.3.        Governmental Consent...................................................................5
       Section 4.4.        Compliance with Law....................................................................6
       Section 4.5.        No Defaults............................................................................6
       Section 4.6.        Certain Documents Legal and Authorized.................................................6
       Section 4.7.        Full Disclosure........................................................................7
       Section 4.8.        First Preferred Ship Mortgages.........................................................7

SECTION 5.                 CONDITIONS PRECEDENT...................................................................7

       Section 5.1.        Opinions of Counsel....................................................................7
       Section 5.2.        Consent of Requisite Holders...........................................................7
       Section 5.3.        Confirmation of Guaranty Agreements....................................................7
       Section 5.4.        Certificate of Managing General Partner................................................8
       Section 5.5.        Certificate of Maritrans Inc...........................................................8
       Section 5.6.        The 1999 Mortgage Supplement...........................................................8
       Section 5.7.        Special Counsel Fees...................................................................8

SECTION 6.                 MISCELLANEOUS PROVISIONS...............................................................8

       Section 6.1.        Effective Date.........................................................................8
       Section 6.2.        Counterparts...........................................................................8
       Section 6.3.        Governing Law..........................................................................8

Signature Page....................................................................................................9
</TABLE>

                                      -i-
<PAGE>

ATTACHMENTS TO WAIVER AND AGREEMENT:

<TABLE>
<CAPTION>
<S>            <C>
Schedule I  -- Names of Holders of the Notes
Schedule II -- Remaining First Preferred Ship Mortgages
Exhibit A   -- Form of Third Supplemental Indenture of Trust and Security Agreement
Exhibit B   -- Description of Closing Opinion of Counsel for the Partnership, the
               Company, the Managing General Partner and Maritrans Inc.
Exhibit C   -- Form of Confirmation of Partnership Guaranty Agreement
Exhibit D   -- Form of Confirmation of Maritrans Guaranty Agreement
Exhibit E   -- Certificate of Managing General Partner
Exhibit F   -- Certificate of Maritrans Inc.
Exhibit G   -- Form of Supplement to the First Preferred Ship Mortgages
</TABLE>
                                      -ii-

<PAGE>

                        MARITRANS OPERATING PARTNERS L.P.
                                       AND
                          MARITRANS CAPITAL CORPORATION

                              WAIVER AND AGREEMENT

                        Re: Third Supplemental Indenture
                         of Trust and Security Agreement
                          dated as of December 1, 1999

                                                                    Dated as of
                                                                December 1, 1999

The Holders of
the Notes named in
Schedule I hereto

Ladies and Gentlemen:

         Reference is made to the separate Note Purchase Agreements dated as of
March 15, 1987 between each of you and Maritrans Capital Corporation, a Delaware
corporation (the "Company") pursuant to which $80,000,000 aggregate principal
amount of the Company's Series B Notes due April 1, 2007 were issued in 1987 of
which $52,000,000 in aggregate principal amount (the "Notes") are currently
outstanding. Each of you currently hold the principal amount of Notes indicated
on Schedule I opposite your name. Each of you are sometimes hereinafter referred
to as a "Holder".

         The Company is a wholly-owned Subsidiary of Maritrans Operating
Partners L.P., a Delaware limited partnership (the "Partnership") which has
guaranteed payment of the principal of, premium, if any, and interest on the
Notes pursuant to a Guaranty Agreement dated as of March 15, 1987 from the
Partnership (the "Partnership Guaranty Agreement"). The Partnership Guaranty
Agreement and the Notes are secured by an Indenture of Trust and Security
Agreement dated as of March 15, 1987 (the "Original Indenture") among the
Company, the Partnership and Wilmington Trust Company, as Trustee thereunder
(the "Trustee") for the holders of the Notes. The Original Indenture has been
amended and supplemented by a First Supplemental Indenture of Trust and Security
Agreement dated as of August 15, 1989, as amended, and a Second Supplemental
Indenture of Trust and Security Agreement dated as of April 1, 1996 (the
Original Indenture as so supplemented and amended and as the same may be
hereafter supplemented and amended being the "Indenture"). All other series of
Notes issued under the Indenture other than the Notes you hold have been
retired. The Partnership Guaranty Agreement and the Notes are also currently
secured by separate First Preferred Ship Mortgages from the Partnership, as
owner and mortgagor, to the Trustee, as mortgagee, on 25 barges and 19 tugboats
(collectively, referred to as "Vessels"). Capitalized terms which are not
otherwise defined herein shall have the meaning set forth in the Indenture.

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

         The Company and the Partnership have entered into agreements for the
sale of a number of the Vessels to one or more third party purchasers which
sales, in the aggregate, are not currently permitted under the Indenture and are
conditioned upon obtaining your consent to such sales. The Company has requested
that you agree to waive the provision in the Indenture which limits the
Company's ability to consummate the sale of the Vessels described in the
preceding sentence and has agreed to certain modifications to the Indenture, all
of which will be effectuated in an amendment to the Indenture contained in the
Third Supplemental Indenture of Trust and Security Agreement dated as of
December 1, 1999 (the "Third Supplement") in the form attached hereto as Exhibit
A. Section 10.2 of the Indenture requires the consent of the Partnership, the
Company and the Holders of at least 66-2/3% in aggregate principal amount of the
outstanding Notes (the "Requisite Holders") to amend the Indenture as set forth
in the Third Supplement in order to permit the aforesaid sales and the other
matters related thereto.

         The original First Preferred Ship Mortgages on the Vessels described in
Appendix I to the Supplement to First Preferred Ship Mortgages which is part of
Exhibit G hereto (the "Original First Preferred Ship Mortgages"), which Original
First Preferred Ship Mortgages have previously been supplemented and amended by
Supplement No. 1 dated as of August 15, 1989 ("Supplement No. 1") and by a
Supplement to First Preferred Ship Mortgages dated May 8, 1996 (the "1996
Mortgage Supplement"), are being further supplemented and amended by a
Supplement to First Preferred Ship Mortgages in the form attached hereto as
Exhibit G (the "1999 Mortgage Supplement") in order to include in the public
record the changes to the Indenture under the Third Supplement (the Original
First Preferred Ship Mortgages as so supplemented and amended being referred to
herein as the "Mortgages").

         Since you are the holders of the outstanding Notes, the Company and the
Partnership hereby request your consent to this Waiver and Agreement. Upon
satisfaction of the conditions set forth in Section 5, on the Effective Date
(hereinafter defined) this instrument shall constitute an agreement in the
respects hereinafter set forth.

SECTION 1. HOLDERS' CONSENT TO THIRD SUPPLEMENT; PARTNERSHIP AND COMPANY
           AGREEMENT TO THIRD SUPPLEMENT.

         Subject to the conditions hereinafter set forth, each Person which has
signed a counterpart of this Waiver and Agreement at the foot hereof on behalf
of a Holder of Notes (a "Signing Holder") hereby consents to the amendments to
the Indenture as set forth in the Third Supplement and the amendments to the
Mortgages as set forth in the 1999 Mortgage Supplement and hereby authorizes and
directs the Trustee to execute and deliver the Third Supplement and the 1999
Mortgage Supplement.

         The Partnership and the Company agree with the Holders that, subject to
the satisfaction of the conditions set forth in this Waiver and Agreement, the
Indenture is to be amended in the manner provided in the Third Supplement and
the Mortgages are to be supplemented and amended in the manner provided in the
1999 Mortgage Supplement.

                                      -2-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

SECTION 2. WARRANTIES AND REPRESENTATIONS REGARDING THE NOTES.

         The Company and the Partnership hereby represent and warrant that (i)
the only series of Notes currently outstanding under the Indenture is the Notes
and $52,000,000 in aggregate principal amount of Notes are currently
outstanding, and (ii) the registered Holders of the Notes, as of the Effective
Date, are set forth on Schedule I and the outstanding principal amount of Notes
held by each such Holder is set forth opposite such Holder's name on said
Schedule I.

         Each Signing Holder hereby represents and warrants that either (i) such
Signing Holder is the sole Holder of the Notes in the aggregate principal amount
set forth opposite the name of such Signing Holder on Schedule I hereto or (ii)
if Schedule I indicates that the Notes set forth opposite the name of a Signing
Holder are owned by Persons other than the Signing Holder, that such Signing
Holder has the authority to sign on behalf of the Holders with respect to such
Notes.

SECTION 3. WARRANTIES AND REPRESENTATIONS OF THE PARTNERSHIP AND THE COMPANY
           REGARDING THE COMPANY.

         The Partnership and the Company, respectively, warrant and represent to
the Holders as follows:

         Section 3.1. Corporate Organization and Authority.  The Company:

                      (a) is a corporation duly organized and validly existing
         and in good standing under the laws of its jurisdiction of
         incorporation and has the corporate power and authority to execute and
         deliver this Waiver and Agreement;

                      (b) all of the issued and outstanding shares of capital
         stock of the Company are fully paid and non-assessable and are owned by
         the Partnership; and

                      (c) has all requisite power and authority and all
         necessary licenses and permits to own and operate its properties and to
         carry on its business as now conducted and as presently proposed to be
         conducted.

         Section 3.2. Pending Litigation. There are no proceedings pending, or
to the knowledge of the Company threatened, against or affecting the Company in
any court or before any governmental authority or arbitration board or tribunal
which involve the possibility of materially and adversely affecting the ability
of the Company to enter into or perform this Waiver and Agreement. The Company
is not in default with respect to any order of any court, governmental authority
or arbitration board or tribunal and the Company has not received notice of any
such default.

         Section 3.3. Governmental Consent. Neither the nature of the Company or
of any of its business or properties, nor any relationship between the Company

                                      -3-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

and any other Person, nor any circumstance in connection with the execution and
delivery of this Waiver and Agreement or the Third Supplement is such as to
require a consent, approval or authorization of, or filing, registration or
qualification with, any regulatory body, state, Federal or local on the part of
the Company as a condition to the execution and delivery of this Waiver and
Agreement or the Third Supplement.

         Section 3.4. Compliance with Law. The Company:

                      (a) is not in violation of any laws, ordinances,
         governmental rules or regulations or court orders to which it is
         subject, and

                      (b) has not failed to obtain any licenses, permits,
         franchises or other governmental authorizations necessary to the
         ownership of its Property or to the conduct of its business,

which violation or failure to obtain might reasonably be expected to materially
adversely affect the business, prospects, profits, Properties or condition
(financial or otherwise) of the Company and it has received notice of no such
violation or failure.

         Section 3.5. No Defaults. No Default or Event of Default has occurred
and is continuing.

         Section 3.6. Certain Documents Legal and Authorized. (a) The compliance
by the Company with all of the provisions of this Waiver and Agreement and the
provisions of the Indenture, as amended by the Third Supplement:

                      (i) are within the corporate powers of the Company; and

                      (ii) will not violate any provisions of any law or any
         order of any court or governmental authority or agency and will not
         conflict with or result in any breach of any of the terms, conditions
         or provisions of, or constitute a default under the charter instrument
         or By-laws of the Company or any indenture or other agreement or
         instrument to which the Company is a party or by which the Company may
         be bound.

         (b) The execution and delivery of this Waiver and Agreement and the
Third Supplement have been duly authorized by proper corporate action on the
part of the Company (no action by the stockholders of the Company being required
by law, by the charter instrument or By-laws of the Company or otherwise), and
this Waiver and Agreement and the Third Supplement have been executed and
delivered by the Company and this Waiver and Agreement and the Indenture, as
amended by the Third Supplement, constitute, the legal, valid and binding
obligations, contracts and agreements of the Company enforceable in accordance
with their respective terms.

                                      -4-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

SECTION 4. WARRANTIES AND REPRESENTATIONS OF THE PARTNERSHIP REGARDING THE
           PARTNERSHIP.

         The Partnership warrants and represents to the Trustee and the Holders
as follows:

         Section 4.1. Organization and Authority. The Partnership:

                      (a) is a limited partnership, duly formed, validly
         existing and in good standing under the laws of its jurisdiction of
         formation and has the partnership power and authority, to execute and
         deliver this Waiver and Agreement, the Third Supplement and the 1999
         Mortgage Supplement;

                      (b) has the partnership power and authority to execute and
         deliver the Confirmation of Partnership Guaranty Agreement in the form
         attached hereto as Exhibit C (the "Partnership Guaranty Confirmation");
         and

                      (c) has all requisite power and authority and all
         necessary licenses and permits to own and operate its Properties and to
         carry on its business as now conducted and as presently proposed to be
         conducted.

         Section 4.2. Pending Litigation. There are no proceedings pending, or
to the knowledge of the Partnership threatened, against or affecting the
Partnership in any court or before any governmental authority or arbitration
board or tribunal which involve the possibility of materially and adversely
affecting the Properties, business, prospects, profits or condition (financial
or otherwise) of the Partnership. There are no proceedings pending, or to the
knowledge of the Partnership threatened, against or affecting the Partnership in
any court or before any governmental authority or arbitration board or tribunal
which involve the possibility of materially and adversely affecting the power or
authority of the Partnership to enter into or perform this Waiver and Agreement,
the Third Supplement or the 1999 Mortgage Supplement or to perform the
Partnership Guaranty Agreement as confirmed in the Partnership Guaranty
Confirmation. The Partnership is not in default with respect to any order of any
court, governmental authority or arbitration board or tribunal and the
Partnership has not received notice of any such default.

         Section 4.3. Governmental Consent. Neither the nature of the
Partnership or any of its businesses or properties, nor any relationship between
the Partnership and any other Person, nor any circumstance in connection with
the execution and delivery of this Waiver and Agreement, the Partnership
Guaranty Confirmation, the Third Supplement or the 1999 Mortgage Supplement is
such as to require a consent, approval or authorization of, or filing,
registration or qualification with, any regulatory body, state, Federal or local
on the part of the Partnership as a condition to the execution and delivery of
this Waiver and Agreement, the Partnership Guaranty Confirmation, the Third
Supplement or the 1999 Mortgage Supplement or as a condition to the maintenance
or continued validity and perfection of the Liens created by the Mortgages,

                                      -5-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

except for the filing of the 1999 Mortgage Supplement with the National Vessel
Documentation Center which filing has been effectuated.

         Section 4.4. Compliance with Law. The Partnership:

                      (a) is not in violation of any laws, ordinances,
         governmental rules or regulations or court orders to which it is
         subject, or

                      (b) has not failed to obtain any licenses, permits,
         franchises or other governmental authorizations necessary to the
         ownership of its Property or to the conduct of its business,

which violation or failure to obtain might reasonably be expected to materially
adversely affect the business, prospects, profits, Properties or condition
(financial or otherwise) of the Partnership and the Partnership has not received
notice of any such violation or failure.

         Section 4.5. No Defaults. No Default or Event of Default has occurred
and is continuing.

         Section 4.6. Certain Documents Legal and Authorized. (a) The compliance
by the Partnership with all of the provisions of this Waiver and Agreement, of
the Partnership Guaranty Agreement as confirmed by the Partnership Guaranty
Confirmation, of the Indenture as amended by the Third Supplement, and of the
1999 Mortgage Supplement:

                      (i) are within the partnership powers of the Partnership;
         and

                      (ii) will not violate any provisions of any law or any
         order of any court or governmental authority or agency and will not
         conflict with or result in any breach of any of the terms, conditions
         or provisions of, or constitute a default under the partnership
         agreement of the Partnership or other agreement or instrument to which
         the Partnership is a party or by which the Partnership may be bound.

         (b) The execution and delivery of this Waiver and Agreement, the
Partnership Guaranty Confirmation, the Third Supplement and the 1999 Mortgage
Supplement has been duly authorized by proper partnership action on the part of
the Partnership (no action by the limited partners of the Partnership being
required by law, by the partnership agreement of the Partnership or otherwise)
and this Waiver and Agreement, the Partnership Guaranty Confirmation, the Third
Supplement and the 1999 Mortgage Supplement have been executed and delivered by
the Partnership and this Waiver and Agreement, the Partnership Guaranty
Agreement as confirmed by the Partnership Guaranty Confirmation, the Indenture
as amended by the Third Supplement, and the Mortgages as supplemented by the
1999 Mortgage Supplement, constitute the legal, valid and binding obligations,
contracts and agreements of the Partnership enforceable in accordance with their
respective terms.

                                      -6-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

         Section 4.7. Full Disclosure. No written statement furnished by the
Partnership or the Company to you in connection with this Waiver and Agreement
(including the Form 10-K of Maritrans Inc. for the year ended December 31, 1998
("Form 10-K")) contains any untrue statement of a material fact or omits a
material fact necessary to make the statements contained therein not misleading.
There is no fact peculiar to the Partnership or its Subsidiaries which has not
been disclosed to you in writing (including in the Form 10-K) which materially
affects adversely or, so far as the Partnership can now foresee, will materially
affect adversely the properties, business, prospects, profits or condition
(financial or otherwise) of the Partnership and its consolidated Subsidiaries,
taken as a whole.

         Section 4.8. First Preferred Ship Mortgages. After giving effect to the
Proposed Vessel Sales (as defined in the Third Supplement), the First Preferred
Ship Mortgages which secure the Notes are on the Vessels described in Schedule
II to this Waiver and Agreement (the "Remaining First Preferred Ship
Mortgages"). The execution and delivery of this Waiver and Agreement and the
performance thereof and the performance of the Indenture as amended by the Third
Supplement, will not affect the validity, perfection, enforceability or priority
of the Remaining First Preferred Ship Mortgages.

SECTION 5. CONDITIONS PRECEDENT.

         The effectiveness of this Waiver and Agreement shall be subject to the
fulfillment by the Partnership and the Company of the following conditions
precedent:

         Section 5.1. Opinions of Counsel. Each Holder shall have received, or
Chapman and Cutler, the special counsel for the Holders, shall have received on
behalf of the Holders from Morgan, Lewis & Bockius LLP, counsel for the
Partnership, the Company, the Managing General Partner and Maritrans Inc. and
from Hollstein Keating Cattell Johnson & Goldstein, P.C., maritime counsel for
the Partnership, the Company, the Managing General Partner and Maritrans Inc.,
their respective opinions dated the Effective Date (hereinafter defined), in
form and substance satisfactory to the Signing Holders and its special counsel,
and covering the matters set forth in Exhibit B hereto.

         Section 5.2. Consent of Requisite Holders. The Partnership and the
Company shall have obtained the written consent of the Requisite Holders, as
evidenced by their signatures at the foot of this document, to the waiver and
amendments of the Indenture as set forth in the Third Supplement and the
amendments to the Mortgages set forth in the 1999 Mortgage Supplement.

         Section 5.3. Confirmation of Guaranty Agreements. Each Holder shall
have received, or its special counsel shall have received on behalf of the
Holders from the Partnership and Maritrans Inc., respectively, the written
confirmation of the terms of the Partnership Guaranty Agreement and the MLP
Guaranty Agreement, as the case may be, in the forms attached hereto as Exhibits
C and D, respectively, and dated the Effective Date.

                                      -7-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

         Section 5.4. Certificate of Managing General Partner. Each Holder shall
have received, or your special counsel shall have received on behalf of the
Holders, from the Managing General Partner a certificate executed by the
President or a Vice President of the Managing General Partner substantially in
the form attached hereto as Exhibit E and dated the Effective Date.

         Section 5.5. Certificate of Maritrans Inc. Each Holder shall have
received, or your special counsel shall have received on behalf of the Holders,
from Maritrans Inc. a certificate executed by the President or a Vice President
of Maritrans Inc. substantially in the form attached hereto as Exhibit F and
dated the Effective Date.

         Section 5.6. The 1999 Mortgage Supplement. The 1999 Mortgage Supplement
shall have been executed and delivered by the parties thereto and it shall have
been filed with the National Vessel Documentation Center.

         Section 5.7. Special Counsel Fees. The fees and expenses of Chapman and
Cutler, your special counsel, shall have been paid by the Company or the
Partnership.

SECTION 6. MISCELLANEOUS PROVISIONS.

         Section 6.1. Effective Date. This Waiver and Agreement shall become
effective upon the first date on which the conditions precedent set forth in
Section 5 hereof shall be satisfied (the "Effective Date").

         Section 6.2. Counterparts. This Waiver and Agreement may be
simultaneously executed in any number of counterparts and all such counterparts
together, each as an original, shall constitute but one and the same instrument.

         Section 6.3. Governing Law. This Waiver and Agreement shall be governed
by and construed in accordance with the laws of the Commonwealth of
Pennsylvania.

                                      -8-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

         If this Waiver and Agreement is satisfactory to you, please so indicate
by signing the acceptance at the foot of a counterpart of this Waiver and
Agreement.

                                               MARITRANS OPERATING PARTNERS L.P.

                                               By Maritrans General Partner Inc.
                                               Its Managing General Partner

                                               By /s/ Walter T. Bromfield
                                                  Its  Vice President

                                               MARITRANS CAPITAL CORPORATION

                                               By /s/ Walter T. Bromfield
                                                  Its  President

                                      -9-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

         The foregoing is hereby accepted and agreed to by:

                                 PRINCIPAL LIFE INSURANCE COMPANY

                                   By PRINCIPAL CAPITAL MANAGEMENT LLC,
                                   a Delaware Limited Liability Company
                                   Its Authorized Signatory

                                   By /s/ Jon C. Heiny
                                      Counsel

                                   By /s/ Christopher J. Henderson
                                      Counsel

                                 AID ASSOCIATION FOR LUTHERANS

                                   By /s/ R. Jerry Scheel
                                      Second Vice President - Securities

                                   By /s/ Reginald Pfeifer
                                      Second Vice President

                                 AUER & CO.

                                   By /s/ Miriam Amad
                                      --------------------------------------
                                      Its

                                 ALLSTATE LIFE INSURANCE COMPANY

                                   By ______________________________________
                                      Its

                                   By ______________________________________
                                      Its

                                               Authorized Signatories

                                      -10-

<PAGE>
Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

                                 FIRST COLONY LIFE INSURANCE COMPANY

                                   By _____________________________________
                                      Its

                                      -11-

<PAGE>

Maritrans Operating Partners L.P.                           Waiver and Agreement
Maritrans Capital Corporation

         The undersigned acknowledges receipt of a copy of the foregoing Waiver
and Agreement executed by the Requisite Holders, the Company and the
Partnership, acknowledges the representations and warranties of the Company and
the Partnership made in the first paragraph of Section 2 hereof are true and
correct and acknowledges that the Waiver and Agreement is effective as of the
Effective Date.

                                         WILMINGTON TRUST COMPANY, as Trustee

                                         By /s/ C. Paglia
                                         Authorized Officer

                                      -12-

<PAGE>

                                   SCHEDULE I
<TABLE>
<CAPTION>
                                               SIGNING HOLDERS (if                   PRINCIPAL AMOUNT
                                          Different from Registered                  OF SERIES B NOTES
   NAMES OR REGISTERED HOLDERS                     Holders)                            OWNED AND HELD
<S>                                          <C>                                             <C>
1. Principal Life Insurance Company                                                      $20,000,000

2. Nimer & Co.                            Aid Association for Lutherans                   $8,000,000

3. Allstate Life Insurance Company                                                        $8,000,000

4. AUER & Co.                                                                            $12,000,000

5. Salkeld & Co.                          First Colony Life Insurance Company             $4,000,000
                                                                                         -----------

                                                             TOTAL                       $52,000,000
                                                                                         ===========
</TABLE>

<PAGE>

                                   SCHEDULE II

         After giving effect to the Proposed Vessel Sales, the Remaining First
Preferred Ship Mortgages securing the Notes are on the following Vessels:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
   A.                 BARGES                  OFFICIAL NUMBER        CAPACITY IN BARRELS            YEAR BUILT
----------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                       <C>                       <C>
          Ocean 250                                529918                    261,187                   1970
----------------------------------------------------------------------------------------------------------------------
          Ocean Cities                             537129                    261,040                   1972
----------------------------------------------------------------------------------------------------------------------
          Ocean 215                                562452                    215,108                   1980
----------------------------------------------------------------------------------------------------------------------
          Maritrans 192                            614210                    185,231              1998 (rebuilt)
----------------------------------------------------------------------------------------------------------------------
          Ocean 193                                624039                    189,211                   1980
----------------------------------------------------------------------------------------------------------------------
          Ocean States                             565314                    189,210                   1975
----------------------------------------------------------------------------------------------------------------------
          Ocean 244                                532585                    245,754                   1971
----------------------------------------------------------------------------------------------------------------------
          Ocean 211                                646669                    207,073                   1982
----------------------------------------------------------------------------------------------------------------------
          Ocean 210                                636104                    207,000                   1981
----------------------------------------------------------------------------------------------------------------------
          Ocean 262                                272839                    253,509              1977 (rebuilt)
----------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------
   B.                TUGBOATS                 OFFICIAL NUMBER             HORSEPOWER                YEAR BUILT
----------------------------------------------------------------------------------------------------------------------
          Liberty                                  534963                      7,000                   1971
----------------------------------------------------------------------------------------------------------------------
          Valour                                   569341                      5,600                   1975
----------------------------------------------------------------------------------------------------------------------
          Seafarer                                 532672                      5,600                   1971
----------------------------------------------------------------------------------------------------------------------
          Navigator                                537824                      5,600                   1971
----------------------------------------------------------------------------------------------------------------------
          Freedom                                  615200                      5,600                   1979
----------------------------------------------------------------------------------------------------------------------
          Independence                             620723                      5,600                   1980
----------------------------------------------------------------------------------------------------------------------
          Columbia                                 641135                      6,000                   1981
----------------------------------------------------------------------------------------------------------------------
          Honour                                   565902                      5,600                   1974
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                        DESCRIPTION OF CLOSING OPINION OF
                   COUNSEL TO THE PARTNERSHIP AND THE COMPANY

         The closing opinion of Morgan, Lewis & Bockius LLP, counsel to the
Partnership, the Company, the Managing General Partner and Maritrans Inc.,
called for by Section 5.1 of the Waiver and Agreement, shall be to the effect
that:

                    1. The Company is a corporation, validly existing and in
         good standing under the laws of the State of Delaware and has the
         corporate power and authority to execute and deliver and perform the
         Waiver and Agreement and the Third Supplement and to own and operate
         its Properties and to carry on its business as now conducted and all of
         the issued and outstanding shares of the Company are fully paid and
         non-assessable and are owned by the Partnership.

                    2. The Partnership is a Delaware limited partnership validly
         existing and in good standing under the laws of the State of Delaware,
         has all requisite partnership power and authority to execute and
         deliver and perform the Waiver and Agreement, the Third Supplement, the
         Partnership Guaranty Confirmation and the 1999 Mortgage Supplement, and
         to own and operate its Properties and to carry on its business as now
         conducted and as presently proposed to be conducted.

                    3. The Managing General Partner is a corporation validly
         existing and in good standing under the laws of the State of Delaware
         and has all requisite corporate power and authority to execute and
         deliver and perform on behalf of the Partnership, as its managing
         general partner, the Waiver and Agreement, the Third Supplement, the
         Partnership Guaranty Confirmation and the 1999 Mortgage Supplement.

                    4. Maritrans Inc. is a corporation validly existing and in
         good standing under the laws of the State of Delaware and has all
         requisite corporate power and authority to execute and deliver and
         perform the Confirmation of MLP Guaranty Agreement (the "Maritrans
         Guaranty Confirmation") and to own and operate its Properties and to
         carry on its business as now conducted.

                    5. Each of the Waiver and Agreement and the Third Supplement
         has been duly authorized by all necessary action on the part of the
         Company, has been duly executed and delivered by the Company and each
         of the Waiver and Agreement and the Indenture as amended by the Third
         Supplement, constitutes the legal, valid and binding contract of the
         Company enforceable in accordance with its terms, subject to
         bankruptcy, insolvency, fraudulent conveyance or similar laws affecting
         creditors' rights generally and general principles of equity
         (regardless of whether the application of such principles is considered
         in a proceeding in equity or at law).

                    6. Each of the Waiver and Agreement, the Third Supplement,
         the Partnership Guaranty Confirmation and the 1999 Mortgage Supplement

                                    EXHIBIT B
                            (to Waiver and Agreement)

<PAGE>

         has been duly authorized by all necessary action on the part of the
         Partnership, has been duly executed and delivered by the Partnership
         and each of the Waiver and Agreement, the Indenture as amended by the
         Third Supplement, the Partnership Guaranty Agreement as confirmed by
         the Partnership Guaranty Confirmation and each of the Mortgages as
         amended and supplemented by the 1999 Mortgage Supplement, constitutes
         the legal, valid and binding contract of the Partnership enforceable in
         accordance with its terms, subject to bankruptcy, insolvency,
         fraudulent conveyance or similar laws affecting creditors' rights
         generally and general principles of equity (regardless of whether the
         application of such principles is considered in a proceeding in equity
         or at law).

                    7. Each of the Waiver and Agreement, the Third Supplement,
         the 1999 Mortgage Supplement and the Partnership Guaranty Confirmation
         has been duly authorized by all necessary action on the part of the
         Managing General Partner and has been duly executed by the Managing
         General Partner.

                    8. The Maritrans Guaranty Confirmation has been duly
         authorized by all necessary action on the part of Maritrans Inc., has
         been duly executed and delivered by Maritrans Inc. and the MLP Guaranty
         Agreement, as confirmed by the Maritrans Guaranty Confirmation,
         constitutes the legal, valid and binding contract of Maritrans Inc.
         enforceable in accordance with its terms, subject to bankruptcy,
         insolvency, fraudulent conveyance or similar laws affecting creditors'
         rights generally and general principles of equity (regardless of
         whether the application of such principles is considered in a
         proceeding in equity or at law).

                    9. The execution and delivery by the Company of the Waiver
         and Agreement and the Third Supplement and the performance by the
         Company of the Waiver and Agreement and the Indenture as amended by the
         Third Supplement, will not conflict with or result in any breach of any
         of the provisions of or constitute a default under or result in the
         creation or imposition of any lien or encumbrance upon any of the
         property of the Company pursuant to the provisions of the Certificate
         of Incorporation or By-laws of the Company or any agreement or other
         instrument known to such counsel to which the Company is a party or by
         which the Company may be bound.

                    10. The execution and delivery by the Partnership of the
         Waiver and Agreement, the Third Supplement, the Partnership Guaranty
         Confirmation and the 1999 Mortgage Supplement and the performance by
         the Partnership of the Waiver and Agreement, the Indenture as amended
         by the Third Supplement, the Partnership Guaranty Agreement as
         confirmed by the Partnership Guaranty Confirmation, and the Mortgages
         as amended and supplemented by the 1999 Mortgage Supplement will not
         conflict with or result in any breach of any of the provisions of or
         constitute a default under or result in the creation or imposition of
         any lien or encumbrance upon any of the property of the Partnership
         pursuant to the provisions of the partnership agreement of the
         Partnership or any agreement or other instrument known to such counsel
         to which the Partnership is a party or by which the Partnership may be
         bound.

                                      B-2

<PAGE>

                    11. The execution and delivery of the Maritrans Guaranty
         Confirmation and the performance of the MLP Guaranty Agreement as
         confirmed by the Maritrans Guaranty Confirmation will not conflict with
         or result in any breach of any of the provisions of or constitute a
         default under or result in the creation or imposition of any lien or
         encumbrance upon any of the property of Maritrans Inc. pursuant to the
         provisions of the Certificate of Incorporation or By-laws of Maritrans
         Inc. or any agreement or other instrument known to such counsel to
         which Maritrans Inc. is a party or by which the Company may be bound.

                   12. No approval or consent on the part of, or filing,
         registration or qualification with, any governmental body, federal,
         state or local, is necessary as a condition to (i) the lawful execution
         and delivery of the Waiver and Agreement and the Third Supplement by
         the Partnership and the Company or of the Partnership Guaranty
         Confirmation or the 1999 Mortgage Supplement by the Partnership or of
         the Maritrans Guaranty Confirmation by Maritrans Inc., or (ii) in
         connection with the execution and delivery of the documents referred to
         in clause (i) above, the maintenance and continuation of the validity
         and perfection of the Liens created by the Remaining First Preferred
         Ship Mortgages, except for the filing of the 1999 Mortgage Supplement
         with the National Vessel Documentation Center, which filing has been
         duly effectuated.

                   13. To the knowledge of such counsel, no proceedings are
         pending nor threatened against or affecting the Company or the
         Partnership before any court, arbitrator or administrative or
         governmental body which, in the aggregate, would adversely affect the
         ability of the Company, the Managing General Partner, Maritrans Inc.,
         or the Partnership to enter into or comply with the following documents
         to which it is a party: the Waiver and Agreement, the Third Supplement,
         the Partnership Guaranty Confirmation or the 1999 Mortgage Supplement.

         For purposes of the opinions in paragraphs 5, 6 and 8, above, such
counsel may (i) assume that (A) the Original Indenture was duly executed and
delivered by the Company and the Partnership and constituted the legal, valid
and binding contract of each of the Company and the Partnership enforceable in
accordance with its terms subject to the following exceptions (herein the
"Standard Enforceability Exceptions"): bankruptcy, insolvency, fraudulent
conveyance or similar laws affecting creditors' rights generally and general
principles of equity (regardless of whether the application of such principles
is considered in a proceeding in equity or at law) and (B) the First
Supplemental Indenture of Trust and Security Agreement (the "First Supplement")
was duly executed and delivered and the Original Indenture as amended and
supplemented by the First Supplement constituted the legal, valid and binding
contract of each of the Company and the Partnership enforceable in accordance
with its terms subject to the Standard Enforceability Exceptions, (ii) assume
that (A) each of the Original First Preferred Ship Mortgages was duly executed
and delivered by the Partnership and constituted the legal, valid and binding
contract of the Partnership enforceable in accordance with its terms subject to
the Standard Enforceability Exceptions and (B) that a Supplement No. 1 for each
of the Original First Preferred Ship Mortgages was duly executed and delivered
and that each such Original First Preferred Ship Mortgage as amended and
supplemented by Supplement No. 1 constituted the legal, valid and binding
contract of the Partnership enforceable in accordance with its terms subject to
the Standard Enforceability Exceptions, (iii) assume that the Partnership

                                      B-3

<PAGE>

Guaranty Agreement was duly executed and delivered by the Partnership and
constituted the legal, valid and binding contract of the Partnership enforceable
in accordance with its terms subject to the Standard Enforceability Exceptions,
and (iv) assume that the MLP Guaranty Agreement was duly executed and delivered
by Maritrans Partners L.P. and constituted the legal, valid and binding contract
of Maritrans Partners L.P. enforceable in accordance with its terms subject to
the Standard Enforceability Exceptions.

         Such opinion shall also cover such other matters incident to the
transactions contemplated by the Waiver and Agreement as the Holders or their
special counsel may reasonably request.

         The closing opinion of Hollstein Keating Cattell Johnson & Goldstein,
P.C., maritime counsel to the Partnership, the Company, the Managing General
Partner and Maritrans Inc., called for by Section 5.1 of the Waiver and
Agreement, shall be to the effect that:

                    1. In connection with the execution and delivery of the
         Waiver and Agreement and the Third Supplement by the Partnership and
         the Company or of the Partnership Guaranty confirmation or the 1999
         Mortgage Supplement by the Partnership or of the Maritrans Guaranty
         Confirmation by Maritrans Inc., no approval or consent on the part of,
         or filing, registration or qualification with, any governmental body,
         federal, state or local, is necessary as a condition to the maintenance
         and continuation of the priority of the Liens created by the Remaining
         First Preferred Ship Mortgages, except for the filing of the 1999
         Mortgage Supplement with the National Vessel Documentation Center,
         which filing has been duly effectuated.

                    2. The execution and delivery of the Waiver and Agreement or
         the Third Supplement by the Partnership and the Company and the
         performance thereof will not affect the validity, enforceability,
         perfection or priority of the Remaining First Preferred Ship Mortgages.

                                      B-4

<PAGE>

                [LETTERHEAD OF MARITRANS OPERATING PARTNERS L.P.]

                                     [Date]

To the Holders of the Series B Notes
  of Maritrans Capital Corporation listed on
  Schedule I attached hereto (the "Notes")

         Re: Confirmation of Partnership Guaranty Agreement
             ----------------------------------------------

Ladies and Gentlemen:

         Reference is hereby made to that certain Third Supplemental Indenture
of Trust and Security Agreement dated as of December 1, 1999 among Maritrans
Operating Partners L.P., a Delaware limited partnership (the "Partnership"),
Maritrans Capital Corporation, a Delaware corporation (the "Company"), and
Wilmington Trust Company, as Trustee (the "Third Supplement") pursuant to which
(i) the parties thereto have agreed to waive and amend certain provisions of the
Indenture of Trust and Security Agreement dated as of March 15, 1987 from the
Partnership and the Company to Wilmington Trust Company, as Trustee (as
heretofore amended and supplemented by that certain First Supplemental Indenture
of Trust and Security Agreement, as amended, by the Second Supplemental
Indenture of Trust and Security Agreement and the Third Supplement, the
"Indenture") and (ii) the Holders of the Notes issued under the Indenture in the
requisite percentage have consented thereto.

         Reference is also made to that certain Guaranty Agreement dated as of
March 15, 1987 entered into by the Partnership pursuant to which the Partnership
(i) has guaranteed payment of the Notes issued under the Indenture which are
currently outstanding and (ii) has guaranteed certain other obligations of the
Company set forth therein (the "Partnership Guaranty Agreement").

         The Partnership hereby consents to the Third Supplement and hereby
ratifies and confirms its agreement to be bound under the Partnership Guaranty
Agreement after giving effect to the amendments to the Indenture contained in
the Third Supplement.

                                 MARITRANS OPERATING PARTNERS L.P.

                                 By Maritrans General Partner Inc., its Managing
                                    General Partner

                                 By ____________________________________________
                                    Its

                                    EXHIBIT C
                            (to Waiver and Agreement)

<PAGE>

                         [LETTERHEAD OF MARITRANS INC.]

                                     [Date]

To the Holders of the Series B Notes
  of Maritrans Capital Corporation listed on
  Schedule I attached hereto (the "Notes")

         Re: Confirmation of MLP Guaranty Agreement
             --------------------------------------

Ladies and Gentlemen:

         Reference is hereby made to that certain Third Supplemental Indenture
of Trust and Security Agreement dated as of December 1, 1999 among Maritrans
Operating Partners L.P., a Delaware limited partnership (the "Partnership"),
Maritrans Capital Corporation, a Delaware corporation (the "Company") and
Wilmington Trust Company, as Trustee (the "Third Supplement") pursuant to which
(i) the parties thereto have agreed to waive and amend certain provisions of the
Indenture of Trust and Security Agreement dated as of March 15, 1987 from the
Partnership and the Company to Wilmington Trust Company, as Trustee (as
heretofore amended and supplemented by that certain First Supplemental Indenture
of Trust and Security Agreement, as amended, by the Second Supplemental
Indenture of Trust and Security Agreement and by the Third Supplement, the
"Indenture") and (ii) the Holders of the Notes issued under the Indenture in the
requisite percentage have consented thereto.

         The undersigned, Maritrans Inc., a Delaware corporation, acknowledges
that on April 1, 1993 Maritrans Partners L.P., a Delaware limited partnership
and the sole limited partner of the Partnership ("MLP") was converted to
Maritrans Inc. which assumed the liabilities of MLP as Guarantor under that
Guaranty Agreement dated as of March 15, 1987 (herein, the "MLP Guaranty
Agreement"). Maritrans Inc. hereby consents to the Waiver and Agreement and
hereby ratifies and confirms its agreement to be bound as Guarantor under the
MLP Guaranty Agreement after giving effect to the amendments to the Indenture
contained in the Waiver and Agreement.

                                     MARITRANS INC.

                                     By _______________________________________
                                        Its

                                    EXHIBIT D
                            (to Waiver and Agreement)

<PAGE>

                     CERTIFICATE OF MANAGING GENERAL PARTNER

To the Holders of the Series B Notes
of Maritrans Capital Corporation listed on
  Schedule I attached hereto (the "Notes")

Ladies and Gentlemen:

         This Certificate is delivered to you in compliance with the
requirements of that certain Waiver and Agreement dated as of November 1, 1999
(the "Waiver and Agreement") among certain Holders of the above referenced
Notes, Maritrans Capital Corporation (the "Company") and Maritrans Operating
Partners L.P. (the "Partnership") pursuant to which (i) the Holders of the
requisite percentage of Notes issued under the Indenture of Trust and Security
Agreement dated as of March 15, 1987 (the "Original Indenture", such Original
Indenture as amended from time to time the "Indenture"), have consented to the
waiver and amendment of the Indenture by a Third Supplemental Indenture of Trust
and Security Agreement dated as of December 1, 1999 in the form set forth in the
Waiver and Agreement (the "Third Supplement") and (ii) the Partnership has
executed and delivered to each of you a Confirmation of Partnership Guaranty
Agreement (the "Partnership Guaranty Confirmation") pursuant to which it has
confirmed its agreement to be bound under the Partnership Guaranty Agreement
dated as of March 15, 1987 (the "Partnership Guaranty Agreement") after giving
effect to the Waiver and Agreement. The terms which are capitalized herein have
the same meanings as in the Indenture.

         The undersigned, Maritrans General Partner Inc., the Managing General
Partner of the Partnership (the "Managing General Partner"), represents and
warrants to you as follows:

         1. Organization and Authority.

            (a) The Managing General Partner is a corporation, duly organized,
         validly existing and in good standing under the laws of the State of
         Delaware.

            (b) The Managing General Partner has all requisite power and
         authority and all necessary licenses and permits to own and operate its
         properties and to carry on its business as now conducted.

            (c) The Managing General Partner is the sole general partner of the
         Partnership under the Amended and Restated Agreement of Limited
         Partnership of Maritrans Operating Partners L.P. dated as of April 14,
         1987, as amended and restated (the "Partnership Agreement").

         2. Partnership Agreement. The Partnership Agreement to which the
Managing General Partner is a party has been duly authorized by all necessary
corporate action on the part of the Managing General Partner, has been duly

                                    Exhibit E
                            (to Waiver and Agreement)

<PAGE>

executed and delivered by the Managing General Partner and constitutes the
legal, valid and binding agreement of the Managing General Partner enforceable
in accordance with its terms, except as enforcement of such terms may be limited
by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors' rights generally, and by general principles of equity.

         3. Authorization, Execution and Delivery. Each of the Waiver and
Agreement, the Third Supplement, the Partnership Guaranty Confirmation and the
1999 Mortgage Supplement has been duly authorized, executed and delivered by the
Managing General Partner on behalf of the Partnership and each of the Waiver and
Agreement, the Indenture as amended by the Third Supplement and the Partnership
Guaranty Agreement as confirmed by the Partnership Guaranty Confirmation and the
1999 Mortgage Supplement constitutes the legal, valid, and binding contract of
the Partnership enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent conveyance or similar laws affecting creditors' rights
generally and general principles of equity (regardless of whether the
application of such principles is considered in a proceeding in equity or at
law).

         4. Pending Litigation. There are no proceedings pending or, to the
knowledge of the Managing General Partner, threatened against or affecting the
Managing General Partner in any court or before any governmental authority or
arbitration board or tribunal which if adversely determined would materially and
adversely affect the ability of the Partnership to enter into or comply with the
following documents on behalf of the Partnership: the Waiver and Agreement, the
Indenture as amended by the Third Supplement, the 1999 Mortgage Supplement or
the Partnership Guaranty Agreement as confirmed by the Partnership Guaranty
Confirmation. The Managing General Partner is not in default with respect to any
order of any court or governmental authority or arbitration board or tribunal.

Dated: ________________________, 1999.

                                               MARITRANS GENERAL PARTNER INC.

                                               By
                                                  Its___________________________

                                      E-2

<PAGE>

                          CERTIFICATE OF MARITRANS INC.

To the Holders of the Series B Notes
  of Maritrans Capital Corporation listed on
  Schedule I attached hereto (the "Notes")

Ladies and Gentlemen:

         This Certificate is delivered to you in compliance with the
requirements of that certain Waiver and Agreement dated as of December 1, 1999
(the "Waiver and Agreement") among certain Holders of the above referenced
Notes, Maritrans Capital Corporation (the "Company") and Maritrans Operating
Partners L.P. (the "Partnership") pursuant to which (i) the Holders of the
requisite percentage of Notes issued under the Indenture of Trust and Security
Agreement dated as of March 15, 1987 (the "Original Indenture", such Original
Indenture as amended from time to time the "Indenture"), have consented to the
waiver and amendment of the Indenture by a Third Supplemental Indenture of Trust
and Security Agreement dated as of December 1, 1999 in the form set forth in the
Waiver and Agreement and (ii) Maritrans Inc. has executed and delivered to each
of you a Confirmation of MLP Guaranty Agreement (the "Maritrans Guaranty
Confirmation") pursuant to which it has confirmed its agreement after giving
effect to the Waiver and Agreement to be bound under the Guaranty Agreement
dated as of March 15, 1987 (the "MLP Guaranty Agreement"), under which it is
obligated to the holders of the Notes.

         Maritrans Inc. represents and warrants to you as follows:

         1. Corporate Organization and Authority. Maritrans Inc.:

            (a) is a corporation duly organized, validly existing and in good
         standing under the laws of the State of Delaware, its jurisdiction of
         incorporation;

            (b) has all requisite power and authority and all necessary licenses
         and permits to own and operate its properties and to carry on its
         business as now conducted; and

            (c) is a publicly held company whose common stock is listed on the
         New York Stock Exchange.

          2. Authorization, Execution and Delivery. The Maritrans Guaranty
Confirmation has been duly authorized, executed and delivered by Maritrans Inc.
and the MLP Guaranty Agreement as confirmed by the Maritrans Guaranty
Confirmation constitutes the legal, valid, and binding contract of Maritrans
Inc. enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent conveyance or similar laws affecting creditors' rights
generally and general principles of equity (regardless of whether the
application of such principles is considered in a proceeding in equity or at
law).

                                    EXHIBIT F
                            (to Waiver and Agreement)

<PAGE>

         3. Pending Litigation. There are no proceedings pending or, to the
knowledge of Maritrans Inc. threatened against or affecting Maritrans Inc. in
any court or before any governmental authority or arbitration board or tribunal
which if adversely determined would materially and adversely affect the ability
of Maritrans Inc. to enter into or comply with the Maritrans Guaranty
Confirmation. Maritrans Inc. is not in default with respect to any order of any
court or governmental authority or arbitration board or tribunal.

Dated:________________________, 1999.

                                         MARITRANS INC.

                                         By
                                            Its_________________________________

                                      F-2

<PAGE>

================================================================================

                                  SUPPLEMENT TO
                         FIRST PREFERRED SHIP MORTGAGES

                             DATED December 8, 1999

                                      from

                        MARITRANS OPERATING PARTNERS L.P.
                                    MORTGAGOR

                                       to

                            WILMINGTON TRUST COMPANY
                                   as Trustee,
                                    Mortgagee

================================================================================

                                    EXHIBIT G

                            (to Waiver and Agreement)

<PAGE>

                                TABLE OF CONTENTS

SECTION                                      HEADING                        PAGE

SECTION 1.                 AMENDMENTS TO THE MORTGAGES........................3

SECTION 2.                 MISCELLANEOUS PROVISIONS...........................3

SIGNATURES................................................................. ..4

ATTACHMENTS TO SUPPLEMENT TO FIRST PREFERRED SHIP MORTGAGES

Appendix I     Description of Vessels and Recording information for Mortgages

Annex I        True Copy of Third Supplemental Indenture of Trust and Security
               Agreement

<PAGE>

                  SUPPLEMENT TO FIRST PREFERRED SHIP MORTGAGES

         This SUPPLEMENT TO FIRST PREFERRED SHIP MORTGAGES (as the same may be
amended and supplemented from time to time, the "Mortgage Supplement"), dated
the 8th day of December, 1999, from MARITRANS OPERATING PARTNERS L.P., a
Delaware limited partnership (the "Partnership"), to WILMINGTON TRUST COMPANY,
as Trustee (the "Trustee"), under an Indenture of Trust and Security Agreement
dated as of March 15, 1987 among the Partnership, the Trustee and Maritrans
Capital Corporation, a Delaware corporation, 100% of the capital stock of which
is owned by the Partnership (the "Company") relating to the Notes referred to
below (said Indenture of Trust and Security Agreement, as the same has
heretofore been amended and supplemented by the First Supplement (defined
below), as amended and supplemented by the Second Supplement (defined below), as
amended and supplemented by a Third Supplement (defined below) and as may
hereafter be amended or supplemented, being herein called the "Indenture", and
the Trustee, and any successor trustee, being herein called the "Mortgagee"),
for the benefit of the holders of the Notes (as defined below) from time to time
outstanding, supplements those certain First Preferred Ship Mortgages in the
form specified in the Indenture on the Vessels described on Appendix I hereto
(the original First Preferred Ship Mortgages as heretofore supplemented and as
supplemented hereby and as the same may hereafter be amended or supplemented,
being herein referred to as the "Mortgages") made by the Partnership in favor of
the Mortgagee, which Mortgages were recorded on the date, at the time and in the
place as set forth on Appendix I hereto.

                                    RECITALS:

         A. The Partnership is the sole owner of the whole of each of the
vessels described on Appendix I which is documented in the name of the
Partnership under the laws of the United States and has its Home Port (formerly
at Philadelphia, Pennsylvania) and its hailing port at Wilmington, Delaware
(said vessels being hereinafter referred to as the "Vessels").

         B. The Company has heretofore duly issued in accordance with the terms
of the Indenture (i) $35,000,000 aggregate principal amount of its Series A
Notes (together with any Notes issued in lieu of or in substitution or exchange
therefor pursuant to the Indenture being herein called the "Series A Notes"),
(ii) $80,000,000 aggregate principal amount of its Series B Notes (together with
any Notes issued in lieu of or in substitution or exchange therefor pursuant to
the Indenture being herein called the "Series B Notes"), and (iii) up to
$20,000,000 aggregate principal amount of its Series C Notes due June 30, 1995
(together with any Notes issued in lieu of or in substitution or exchange
therefore pursuant to the Indenture being herein called the "Series C Notes").
The Series C Notes were issued pursuant to the First Supplemental Indenture of
Trust and Security Agreement dated as of August 15, 1989 among the Company, the
Partnership and the Mortgagee (as amended and supplemented by Amendment No. 1 to
the First Supplemental Indenture of Trust and Security Agreement dated as of
March 31, 1992, the "First Supplement"). The Indenture was subsequently amended
by a Second Supplemental Indenture of Trust and Security Agreement dated as of
April 1, 1996 (the "Second Supplement"). The Series A Notes and the Series C

<PAGE>

Notes have heretofore been retired. The Series B Notes and any Additional Notes
issued under the Indenture are herein collectively referred to as the "Notes".

         C. The Partnership has heretofore entered into the Guaranty Agreement
dated as of March 15, 1987 (as the same has been amended by the First
Supplemental Guaranty Agreement dated as of August 15, 1989 and as may be
further amended and supplemented from time to time, the "Partnership Guaranty
Agreement") providing for the guarantee by the Partnership of the payment by the
Company of the principal of and premium and interest on the Notes.

         D. The Company, the Partnership and the Mortgagee have entered into the
Third Supplemental Indenture of Trust and Security Agreement dated as of
December 1, 1999 (a true copy of which is attached hereto as Annex I) (the
"Third Supplement") which further amends and supplements the Indenture.

         E. The Notes and all principal thereof and interest and premium thereon
and all additional amounts and other sums at any time due and owing from or
required to be paid by the Company under the terms of the Notes and the
Indenture and by the Partnership under the terms of the Partnership Guaranty
Agreement, the Indenture and the Mortgages, are hereinafter sometimes referred
to as the "indebtedness hereby secured".

         F. The full name and address of the Partnership, as mortgagor, is:

                       Maritrans Operating Partners L.P.
                       1818 Market Street, Suite 3540
                       Philadelphia, Pennsylvania  19103-3636
                       Attention:  Treasurer, Maritrans General Partner Inc.

         G. The full name and address of the Mortgagee is:

                       Wilmington Trust Company as trustee under an
                       Indenture of Trust and Security Agreement dated
                       as of March 15, 1987
                       Rodney Square North
                       Wilmington, Delaware  19890
                       Attention:  Corporate Trust Administrator

         NOW, THEREFORE, the Partnership, in consideration of the premises and
of the sum of $10.00 received by the Partnership from the Mortgagee and other
good and valuable consideration, receipt of which is hereby acknowledged by the
Partnership, and in order to secure the payment of the indebtedness hereby
secured and the performance and observance of all of the covenants and
conditions in the Notes, the Indenture, the Partnership Guaranty Agreement and
in the Mortgage contained, has granted, bargained, sold, conveyed, warranted,
mortgaged, pledged and hypothecated and by these presents does hereby grant,
bargain, sell, convey, warrant, mortgage, pledge and hypothecate, unto the
Mortgagee, its successors and assigns, all and singular of the whole of each of
the Vessels, together with all engines, boilers, machinery, masts, boats,
anchors, cables, chains, tackle, fittings and equipment and all other

                                      -2-

<PAGE>

appurtenances, improvements, additions and replacements appertaining and
belonging to the Vessels, whether now owned or hereafter acquired, whether on
board or not.

         TO HAVE AND TO HOLD the Vessels unto the Mortgagee and its successors
and assigns, forever.

         PROVIDED, HOWEVER, and these presents are on the condition that, if the
Partnership shall pay or cause to be paid the indebtedness hereby secured, as
and when the same shall become due and payable, by maturity or otherwise, and if
the Partnership shall duly perform all the covenants, agreements and conditions
contained herein, in the Indenture and in the Partnership Guaranty Agreement,
then the Mortgages shall be void and of no effect, and in such case the
Mortgagee, its successors or assigns, on the demand and at the expense of the
Partnership, shall execute and deliver to the Partnership proper instruments to
evidence the revesting in it of all the rights, title and interest granted
hereby and to satisfy and discharge the Mortgages of record; otherwise, the
Mortgages shall remain in full force and effect.

         PROVIDED, FURTHER, that until some one or more Events of Default shall
occur, the Partnership shall have the possession, use and operation of the
Vessels.

         The Partnership hereby covenants and agrees with the Mortgagee and its
successors and assigns as follows:

SECTION 1. AMENDMENTS TO THE MORTGAGES.

         Section 1.1. As used in the Mortgages, the definition of the term
"Indenture" is hereby restated to mean as follows: the Indenture of Trust and
Security Agreement dated as of March 15, 1987 among the Partnership, the Company
and the Trustee (i) as amended and supplemented by the First Supplemental
Indenture of Trust and Security Agreement dated as of August 15, 1989, as
amended and supplemented by Amendment No. 1 thereto dated as of March 31, 1992,
(collectively, the "First Supplement"), (ii) as amended and supplemented by the
Second Supplemental Indenture of Trust and Security Agreement dated as of April
1, 1996, (the "Second Supplement"), (iii) as amended and supplemented by the
Third Supplemental Indenture of Trust dated as of December 1, 1999, (the "Third
Supplement") and (iv) as may hereafter be amended or supplemented.

SECTION 2. MISCELLANEOUS PROVISIONS.

         Section 2.1. This Mortgage Supplement is executed as and shall
constitute an instrument supplemental to each of the Mortgages, and shall be
construed in connection with and as part of each of the Mortgages.

         Section 2.2. Except as modified and expressly amended by this Mortgage
Supplement, the Mortgages as heretofore amended and supplemented are in all
respects ratified and confirmed and all the terms, provisions and conditions
thereof shall be and remain in full force and effect.

                                      -3-

<PAGE>

         Section 2.3. Except as otherwise provided herein, any term used herein
which is defined in the Mortgages as hereby supplemented shall have the meaning
set forth in the Mortgages as hereby supplemented.

         IN WITNESS WHEREOF, the Partnership has caused this Mortgage Supplement
to be executed as of the day and year first above written.

                                            MARITRANS OPERATING PARTNERS L.P.

                                            By Maritrans General Partner Inc.
                                               Its Managing General Partner

                                            By  /s/ Walter T. Bromfield
                                                --------------------------------
                                            Its Vice President

                                            WILMINGTON TRUST COMPANY, as Trustee

                                            By  /s/ C. Paglia
                                                --------------------------------
                                            Its Financial Services Officer

                                      -4-

<PAGE>

COMMONWEALTH OF PENNSYLVANIA                     )
                                                 )  SS:
COUNTY OF PHILADELPHIA                           )

         I, Karen S. Newson, a Notary Public in and for said County in the
Commonwealth aforesaid, do hereby certify that Walter T. Bromfield, personally
known to me to be Vice President of Maritrans General Partner Inc., a Delaware
corporation, a general partner of Maritrans Operating Partners L.P., a Delaware
limited partnership, the corporation that executed the within instrument on
behalf of said partnership, and personally known to me to be the same person
whose name is subscribed as such officer to the foregoing instrument, appeared
before me this day in person and acknowledged that he, being thereunto duly
authorized, signed and delivered said instrument as his free and voluntary act
and the free and voluntary act of said corporation, for the uses and purposes
therein set forth.

         GIVEN under my hand and notarial seal this 8th day of December, 1999.

[NOTARIAL SEAL]
                                                          /s/ Karen S. Newson
                                                          ----------------------
                                                          Notary Public

My commission expires:

                                      -5-

<PAGE>

STATE OF DELAWARE                   )
                                    )  SS:
COUNTY OF NEWCASTLE                 )

         I, Karen S. Newson, a Notary Public in and for said County in the State
aforesaid, do hereby certify that Charlotte Paglia, personally known to me to be
Financial Services Officer of Wilmington Trust Company, a Delaware banking
corporation, the corporation that executed the within instrument and personally
known to me to be the same person whose name is subscribed as such officer to
the foregoing instrument, appeared before me this day in person and acknowledged
that he, being thereunto duly authorized, signed and delivered said instrument
as his free and voluntary act and the free and voluntary act of said
corporation, for the uses and purposes therein set forth.

         GIVEN under my hand and seal of office this 8th day of December, 1999.

[NOTARIAL SEAL]
                                                          /s/ Karen S. Newson
                                                          ----------------------
                                                          Notary Public

My commission expires:

                                      -6-

<PAGE>

         DESCRIPTION OF VESSELS AND RECORDING INFORMATION FOR MORTGAGES

         The First Preferred Ship Mortgage for each of the following Vessels was
delivered and accepted at the Marine Inspection Office, United States Coast
Guard, Port of Philadelphia, Pennsylvania, and recorded as indicated and
Supplement No. 1 to First Preferred Ship Mortgage for each such Vessel was also
delivered and accepted at such office and recorded as indicated and the
Supplement to First Preferred Ship Mortgage dated May 8, 1996 for each of such
Vessels was also delivered and accepted at the National Vessel Documentation
Center, Falling Water, West Virginia, and recorded at 2:00 p.m. on 5/15/96 in
Book 96-29 at page 147:
<TABLE>
<CAPTION>
                                                                                     SUPPLEMENT NO. 1 TO
                                        FIRST PREFERRED SHIP MORTGAGE           FIRST PREFERRED SHIP MORTGAGE:
                                              RECORDATION DATA:                       RECORDATION DATA:
                                              ----------------                        ----------------
                        OFFICIAL          DATE               BOOK                 DATE               BOOK
        NAME             NUMBER         AND TIME           AND PAGE             AND TIME           AND PAGE
<S>                   <C>               <C>               <C>                   <C>                <C>
BARGES
(1) Ocean 262         272,839          04/21/87            Book 874,            10/5/89,           Book 8910,
                                       4:16 p.m.           Page 142             4:30 p.m.          Page 110
                      529,918          4/21/87
(2) Ocean 250                          4:19 p.m.           Book 874,            10/5/89,           Book 8910,
                                                           Page 143             4:02 p.m.          Page 104

(3) Ocean Cities      537,129          4/21/87             Book 874,            10/5/89,           Book 8910,
                                       4:27 p.m.           Page 146             4:45 p.m.          Page 113

(4) Ocean 215         562,452          4/23/87             Book 874,            10/5/89,           Book 8910,
                                       3:55 p.m.           Page 214             4:17 p.m.          Page 108

(5) Ocean 192         614,210          4/21/87             Book 874,            10/5/89,           Book 8910,
                                       4:13 p.m.           Page 139             3:27 p.m.          Page 95

(6) Ocean 193         624,039          4/21/87             Book 874,            10/5/89,           Book 8910,
                                       4:21 p.m.           Page 144             3:39 p.m.          Page 99

(7) Ocean States      565,314          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       4:40 p.m.           Page 147             4:25 p.m.          Page 109

(8) Ocean 155         556,673          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       4:26 p.m.           Page 145             4:07 p.m.          Page 106

(9) Ocean 135         520,687          4/23/87,            Book 874,            10/5/89,           Book 8910,
                                       3:45 p.m.           Page 211             3:55 p.m.          Page 103

(10) Interstate 138   611,433          4/21/87             Book 874,            10/5/89,           Book 8910,
                                       5:14 p.m.           Page 159             3:01 p.m.          Page 88

(11) Ocean 115        515,042          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:58 p.m.           Page 193             3:48 p.m.          Page 100

(12) Ocean 90         507,495          4/23/87,            Book 874,            10/5/89,           Book 8910,
                                       4:37 p.m.           Page 227             3:23 p.m.          Page 94
</TABLE>
                                   APPENDIX I
                            (to Mortgage Supplement)

<PAGE>

<TABLE>
<CAPTION>
                                                                                     SUPPLEMENT NO. 1 TO
                                        FIRST PREFERRED SHIP MORTGAGE           FIRST PREFERRED SHIP MORTGAGE:
                                              RECORDATION DATA:                       RECORDATION DATA:
                                              ----------------                        ----------------
                        OFFICIAL          DATE               BOOK                 DATE               BOOK
        NAME             NUMBER         AND TIME           AND PAGE             AND TIME           AND PAGE
<S>                   <C>               <C>               <C>                   <C>                <C>
(13) Ocean 96         523,233          4/23/87,            Book 874,            10/5/89,           Book 8910,
                                       4:05 p.m.           Page 217             3:33 p.m.          Page 97

(14) Interstate 71    563,364          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       5:06 p.m.           Page 156             2:45 p.m.          Page 82
                                       4/22/87,
(15) Interstate 70    540,401          5:20 p.m.           Book 874,            10/5/89,           Book 8910,
                                                           Page 202             2:39 p.m.          Page 79

(16) Interstate 53    530,062          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       5:05 p.m.           Page 155             3:00 p.m.          Page 87

(17) Interstate 55    544,437          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       5:22 p.m.           Page 204             3:08 p.m.          Page 89

(18) Interstate 36    552,900          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       4:52 p.m.           Page 153             2:40 p.m.          Page 80

(19) Interstate 38    553,120          4/23/87,            Book 874,            10/5/89,           Book 8910,
                                       4:45 p.m.           Page 229             3:09 p.m.          Page 90

(20) Interstate 35    552,065          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:39 p.m.           Page 185             2:19 p.m           Page 74

(21) Interstate 29    536,837          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       5:02 p.m.           Page 196             3:10 p.m           Page 91

(22) Interstate 30    284,032          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:54 p.m.           Page 192             3:20 p.m.          Page 93

(23) CHEM 36          293,343          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:17 p.m.           Page 176             1:45 p.m.          Page 67

(24) Ocean 244        532,585          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       5:18 p.m.           Page 163             3:50 p.m.          Page 101

(25) Ocean 211        646,669          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:27 p.m.           Page 181             4:05 p.m.          Page 105

(26) Ocean 210        636,104          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:49 p.m.           Page 190             3:54 p.m.          Page 102
                      643,281
(27) Ocean 81                          4/23/87,            Book 874,            10/5/89,           Book 8910,
                                       4:35 p.m.           Page 226             4:33 p.m.          Page 111

(28) Chem Ten         520,776          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:22 p.m.           Page 178             1:58 p.m.          Page 70

TUGBOATS:

(1) Clipper           520,685          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:24 p.m.           Page 179             12:40 p.m.         Page 54

(2) Freedom           615,200          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       4:55 p.m.           Page 154             12:45 p.m.         Page 55

(3) Honour            565,902          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       5:06 p.m.           Page 197             1:04 p.m.          Page 57
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                     SUPPLEMENT NO. 1 TO
                                        FIRST PREFERRED SHIP MORTGAGE           FIRST PREFERRED SHIP MORTGAGE:
                                              RECORDATION DATA:                       RECORDATION DATA:
                                              ----------------                        ----------------
                        OFFICIAL          DATE               BOOK                 DATE               BOOK
        NAME             NUMBER         AND TIME           AND PAGE             AND TIME           AND PAGE
<S>                   <C>               <C>               <C>                   <C>                <C>
(4) Independence      620,723          4/22/87             Book 874,            10/5/89,           Book 8910,
                                       3:10 p.m.           Page 198             1:20 p.m.          Page 60

(5) Navigator         537,824          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       5:08 p.m.           Page 157             12:19 p.m.         Page 52

                                       4/23/87,            Book 874,            10/5/89,           Book 8910,
(6) Seafarer          532,672          4:16 p.m.           Page 221             1:40 p.m.          Page 64

                      569,341          4/23/87,            Book 874,            10/5/89,           Book 8910,
(7) Valour                             4:24 p.m.           Page 223             1:30 p.m.          Page 62

                      578,207          4/23/87,            Book 874,            10/5/89,           Book 8910,
(8) Ambassador                         3:41 p.m.           Page 210             10:48 a.m.         Page 35

                      536,836          4/22/87,            Book 874,            10/5/89,           Book 8910,
(9) Corsair                            4:37 p.m.           Page 183             10:53 a.m.         Page 36

                      590,232          4/23/87             Book 874,            10/5/89,           Book 8910,
(10) Diplomat                          4:00 p.m.           Page 216             10:59 a.m.         Page 38

                                       4/22/87,            Book 874,            10/5/89,           Book 8910,
(11) Challenger       513,794          4:15 p.m.           Page 174             11:03 a.m.         Page 40

                      511,237          4/23/87,            Book 874,            10/5/89,           Book 8910,
(12) Crusader                          3:51 p.m.           Page 213             12:05 p.m.         Page 50

                      550,670          4/23/87,            Book 874,            10/5/89,           Book 8910,
(13) Venturer                          4:40 p.m.           Page 228             1:42 p.m.          Page 65

(14) Voyager II       556,625          4/23/87,            Book 874,            10/5/89,           Book 8910,
                                       4:15 p.m.           Page 220             1:55 p.m.          Page 68

(15) Endeavor         529.705          4/22/87             Book 874,            10/5/89,           Book 8910,
                                       4:48 p.m.           Page 189             11:57 a.m.         Page 49

                      515,013          4/22/87             Book 874,            10/5/89,           Book 8910,
(16) Traveller                         5:12 p.m.           Page 200             1:18 p.m.          Page 59

                      506,289          4/22/87,            Book 874,            10/5/89,           Book 8910,
(17) Roanoke                           5:21 p.m.           Page 203             1:57 p.m.          Page 69

                      609,686                              Book 874,            10/5/89,           Book 8910,
(18) Delaware                          4/23/87,            Page 215             11:15 a.m.         Page 41
                                       3:57 p.m.
                                       4/23/87,            Book 874,            10/5/89,           Book 8910,
(19) Ranger           508,340          4:23 p.m.           Page 222             2:12 p.m.          Page 73

(20) Liberty          534,963          4/21/87,            Book 874,            10/5/89,           Book 8910,
                                       5:15 p.m.           Page 160             11:27 a.m.         Page 45

(21) Columbia         641,135          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:33 p.m.           Page 182             12:50 p.m.         Page 56

(22) Patriot          636,105          4/23/87,            Book 874,            10/5/89,           Book 8910,
                                       4:12 p.m.           Page 219             2:26 p.m.          Page 77
</TABLE>
                                      I-3

<PAGE>

<TABLE>
<CAPTION>
                                                                                     SUPPLEMENT NO. 1 TO
                                        FIRST PREFERRED SHIP MORTGAGE           FIRST PREFERRED SHIP MORTGAGE:
                                              RECORDATION DATA:                       RECORDATION DATA:
                                              ----------------                        ----------------
                        OFFICIAL          DATE               BOOK                 DATE               BOOK
        NAME             NUMBER         AND TIME           AND PAGE             AND TIME           AND PAGE
<S>                   <C>               <C>               <C>                   <C>                <C>
(23) Schuylkill       633,396          4/22/87             Book 874,            10/5/89,           Book 8910,
                                       5:26 p.m.           Page 206             1:25 p.m.          Page 61

(24) Cougar           569,665          4/22/87,            Book 874,            10/5/89,           Book 8910,
                                       4:38 p.m.           Page 184             11:25 a.m.         Page 44
</TABLE>
                                      I-4

<PAGE>

          THIRD SUPPLEMENTAL INDENTURE OF TRUST AND SECURITY AGREEMENT

                                     ANNEX I
                            (to Mortgage Supplement)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]