Document:

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                                                                    EXHIBIT 10.4

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                                OMNIBUS AGREEMENT

                                     BETWEEN

                     MARTIN RESOURCE MANAGEMENT CORPORATION,

                            MARTIN MIDSTREAM GP LLC,

                         MARTIN MIDSTREAM PARTNERS L.P.

                                       AND

                        MARTIN OPERATING PARTNERSHIP L.P.

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                                OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT is entered into as of [*], 2002 by and among Martin
Resource Management Corporation, a Texas corporation ("MRMC"), Martin Midstream
GP LLC, a Delaware limited liability company (the "General Partner"), Martin
Midstream Partners L.P., a Delaware limited partnership (the "Partnership"), and
Martin Operating Partnership L.P. (the "Operating Partnership"). The above-named
entities are sometimes referred to in this Agreement each as a "Party" and
collectively as the "Parties."

                                    RECITALS:

     WHEREAS, MRMC and its Affiliates (as defined herein) formed the
Partnership, the General Partner and the Operating Partnership for the purpose
of conducting of the Business (as defined below);

     WHEREAS, certain assets and services used by MRMC or its Affiliates in the
conduct of the Business prior to the formation of the Partnership were not
transferred to the Partnership;

     WHEREAS, the Parties desire to ensure the continued effective operation of
the Business, and the Parties recognize that the continued effective operation
of the Business requires that MRMC provide certain management and employee
services to the Business as set forth in this Agreement;

     WHEREAS, the Parties desire to evidence their understanding, as more fully
set out in this Agreement, with respect to those business opportunities that
MRMC will not engage in for so long as the Partnership is an Affiliate of MRMC
unless the Partnership has declined to engage in any such business opportunity
for its own account and the procedures whereby such business opportunities are
to be offered to the Partnership and accepted or declined;

     WHEREAS, the Operating Partnership owns a 49.5% limited partner interest in
CF Martin Sulphur, L.P., a Delaware limited partnership ("CF Martin") and the
Parties desire to evidence their understanding, as more fully set out in this
Agreement, regarding the exercise by MRMC of its rights in relation to the
management and operation of CF Martin through MRMC's ownership of 50% of C.F.
Martin Sulphur, L.L.C., a Delaware limited liability company and the general
partner of CF Martin (the "CF Martin GP"); and

     WHEREAS, the Parties desire to evidence other agreements and relationships,
as more fully set out in this Agreement, with respect to the transfer of the
Business to the Partnership and the Operating Partnership as well as the
operation of the Business by the Partnership and the Operating Partnership.

     NOW THEREFORE, in consideration of the premises and the covenants,
conditions, and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties hereto hereby agree as follows:

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                                   ARTICLE I
                                   DEFINITIONS

     DEFINITIONS. (a) As used in this Agreement, the following terms shall have
the respective meanings set forth below:

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

          "Agreement" means this Omnibus Agreement, as it may be amended,
     modified, or supplemented from time to time in accordance with Section 6.8
     hereof.

          "Allocated General and Administrative Expenses" means expenses
     associated with general and administrative services provided by MRMC and
     its Subsidiaries (other than the Partnership and its Subsidiaries),
     including, but not limited to, certain management, engineering, accounting,
     finance, information technology, insurance, human resource, administration
     of employee benefit plans and other shared corporate services, that are
     allocated to the Partnership by MRMC on the same basis as these types of
     expenses are allocated among MRMC and its Subsidiaries (other than the
     Partnership and its Subsidiaries).

          "Assets" means the "Contributed Assets" as such term is defined in the
     Contribution Agreement.

          "Business" means (i) providing marine transportation, terminalling,
     distribution and midstream logistical services for hydrocarbon products and
     by-products, and (ii) manufacturing and marketing fertilizers and related
     sulfur-based products.

          "CF Martin" is defined in the Recitals to this Agreement.

          "CF Martin Contribution Agreement" means the Contribution Agreement,
     dated as of November 20, 2000, by and between CF Martin, CF Martin GP,
     MRMC, Martin Gas Sales, Inc., Martin Gas Marine, Inc., and Martin
     Transport, Inc.

          "CF Martin GP" is defined in the Recitals to this Agreement.

          "CF Martin GP Agreement" means the Limited Liability Company Agreement
     of CF Martin GP, dated November 22, 2000, as amended to date.

          "CF Martin LP Agreement" means the Agreement of Limited Partnership of
     C.F. Martin, dated November 22, 2000, as amended to date.

          "Closing Date" means the date of the closing of the Partnership's
     initial public offering of Common Units of the Partnership.

          "Conflicts Committee" is defined in the Partnership Agreement.

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          "Consumer Price Index" means the "Consumer Price Index for Urban Wage
     Earners and Clerical Workers (1967 = 100)" specified for "All Item - United
     States" compiled by the Bureau of Labor Statistics for the United States.

          "control" means the possession, directly or indirectly, of the power
     to direct or cause the direction of the management and policies of a
     Person, whether through ownership of voting securities, by contract or
     otherwise.

          "Contribution Agreement" means the Contribution, Conveyance and
     Assumption Agreement, dated [*], 2002, by and among various MRMC Entities,
     the Partnership, the Operating Partnership, the General Partner and Martin
     Operating GP LLC, a Delaware limited liability company.

          "Covered Environmental Losses" is defined in Section 3.1(a).

          "Environmental Laws" means all federal, state, and local laws,
     statutes, rules, regulations, orders, and ordinances, now or hereafter in
     effect, relating to protection of human health and the environment
     including, without limitation, the federal Comprehensive Environmental
     Response, Compensation, and Liability Act, the Superfund Amendments
     Reauthorization Act, the Resource Conservation and Recovery Act, the Clean
     Air Act, the Federal Water Pollution Control Act, the Toxic Substances
     Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the
     Hazardous Materials Transportation Act, and other environmental
     conservation and protection laws, each as amended from time to time.

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

          "General Partner" is defined in the introduction to this Agreement.

          "Hazardous Substance" means any substance that is designated, defined,
     or classified as a hazardous waste, hazardous material, pollutant,
     contaminant, or toxic or hazardous substance, or that is otherwise
     regulated under any Environmental Law, including, without limitation, any
     hazardous substance as defined under the Comprehensive Environmental
     Response, Compensation, and Liability Act.

          "Indemnified Party" means the Partnership Entities or the MRMC
     Entities, as the case may be, in their capacity as the parties entitled to
     indemnification in accordance with Article III.

          "Indemnifying Party" means either the Partnership Entities or the MRMC
     Entities, as the case may be, in its capacity as the parties from whom
     indemnification may be sought in accordance with Article III.

          "Indirect Expenses Limit" is defined in Section 4.2(a).

          "J.V. Management Rights" is defined in Section 6.2.

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          "Losses" means any losses, damages, liabilities, claims, demands,
     causes of action, judgments, settlements, fines, penalties, costs, and
     expenses (including, without limitation, court costs and reasonable
     attorney's and expert's fees) of any and every kind or character.

          "Martin Manager" is defined in the CF Martin GP Agreement.

          "MRMC" is defined in the introduction to this Agreement.

          "MRMC Entities" means MRMC and each of its Subsidiaries (other than
     the General Partner, the Partnership and any Subsidiary of the
     Partnership).

          "Names and Marks" means the tradenames and logos attached hereto on
     Schedule 1.

          "Offer" is defined in Section 2.3(b).

          "Partnership" is defined in the introduction to this Agreement.

          "Partnership Agreement" means the First Amended and Restated Agreement
     of Limited Partnership of the Martin Midstream Partners L.P., dated as of,
     and in the form on, the Closing Date. No amendment or modification to the
     Partnership Agreement subsequent to the Closing Date shall be given effect
     for the purposes of this Agreement unless consented to by each of the
     Parties to this Agreement.

          "Partnership Entities" means the Partnership, the General Partner. and
     each Subsidiary of the Partnership.

          "Party" and "Parties" is defined in the introduction to this
     Agreement.

          "Pass-Through Environmental Losses" is defined in Section 3.1(b).

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

          "Restricted Portion" is defined in Section 2.2(c)(iv).

          "Retained Assets" means, collectively, (i) any assets and investments
     owned by any of the MRMC Group that were not conveyed, contributed or
     otherwise transferred to any of the Partnership Entities prior to or on the
     Closing Date, and (ii) the "Retained Assets" as such term is defined in the
     Contribution Agreement.

          "Services" is defined in Section 4.1.

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          "Subject Assets" is defined in Section 2.2(c).

          "Subsidiary" means, with respect to any Person, (a) a corporation of
     which more than 50% of the Voting Power is owned, directly or indirectly,
     at the date of determination, by such Person, by one or more Subsidiaries
     of such Person or a combination thereof, (b) a partnership (whether general
     or limited) in which such Person or a Subsidiary of such Person is, at the
     date of determination, a general or limited partner of such partnership,
     but only if more than 50% of the partnership interests of such partnership
     (considering all of the partnership interests of the partnership as a
     single class) is owned, directly or indirectly, at the date of
     determination, by such Person, by one or more Subsidiaries of such Person,
     or a combination thereof, or (c) any other Person (other than a corporation
     or a partnership) in which such Person, one or more Subsidiaries of such
     Person, or a combination thereof, directly or indirectly, at the date of
     determination, has (i) at least a majority ownership interest or (ii) the
     power to elect or direct the election of a majority of the directors or
     other governing body of such Person.

          "Venture Interest" is defined in the CF Martin LP Agreement.

          "Voting Stock" means securities of any class of a Person entitling the
     holders thereof to vote on a regular basis in the election of members of
     the board of directors or other governing body of such Person.

                                   ARTICLE II
                             BUSINESS OPPORTUNITIES

     2.1 RESTRICTED ACTIVITIES. For so long as MRMC controls the General
Partner, or any subsequent general partner of the Partnership and except as
permitted by Section 2.2, MRMC shall be prohibited from engaging in, directly or
indirectly through an Affiliate, whether by acquisition, construction or
otherwise, the Business.

     2.2 PERMITTED EXCEPTIONS. Notwithstanding any provision of Section 2.1 to
the contrary, MRMC and its Affiliates may engage in the following activities
under the following circumstances:

          (a) The ownership and/or operation of any of the Retained Assets
(including replacements of and modifications or additions to the Retained
Assets) and the conduct of the businesses operated by MRMC and its Affiliates on
the Closing Date that were not transferred to the Partnership Entities and that
are described on Schedule 2.2(a);

          (b) The operation on behalf of a member of any Partnership Entity of
any asset or group of assets owned by any Partnership Entity;

          (c) The ownership and/or operation of any asset or group of related
assets used in a Business that are acquired or constructed by MRMC or any of its
Affiliates (other than any of the Partnership Entities) after the date of this
Agreement (the "Subject Assets") if:

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               (i) the fair market value of the Subject Assets (as determined in
     good faith by the Board of Directors of MRMC) is less than $5.0 million at
     the time of such acquisition by any of the MRMC Entities or completion of
     construction, as the case may be;

               (ii) in the case of an acquisition of Subject Assets with a fair
     market value (as determined in good faith by the Board of Directors of
     MRMC) equal to or greater than $5.0 million at the time of such acquisition
     by MRMC, the Partnership has been offered the opportunity to purchase the
     Subject Assets within 90 days of such acquisition in accordance with
     Section 2.3(b) and the Partnership (with the concurrence of the Conflicts
     Committee) has elected not to purchase the Subject Assets;

               (iii) in the case of the construction of Subject Assets with a
     fair market value (as determined in good faith by the Board of Directors of
     MRMC) equal to or greater than $5.0 million at the time of completion of
     construction, the Partnership has been offered the opportunity to purchase
     the Subject Assets in accordance with Section 2.3(b) and the Partnership
     (with the concurrence of the Conflicts Committee) has elected not to
     purchase the Subject Assets; or

               (iv) in case of the acquisition or construction of any Subject
     Assets, a portion of which participate in a Business (the "Restricted
     Portion"), where the Restricted Portion has a fair market value (as
     determined in good faith by the Board of Directors of MRMC) that is (i)
     greater than $5.0 million and (ii) less than 20% of the aggregate value of
     the business or assets acquired or constructed (as determined in good faith
     by the Board of Directors of MRMC), the Partnership is offered the
     opportunity to purchase the Subject Assets related to the Restricted
     Portion in accordance with Section 2.3(b) and the Partnership (with the
     concurrence of the Conflicts Committee) has elected not to purchase such
     Subject Assets;

     2.3 PROCEDURES.

          (a) If any of the MRMC Entities becomes aware of an opportunity to
purchase Subject Assets described in Section 2.2(c)(ii), then as soon as
practicable, MRMC shall notify the General Partner of such opportunity and
deliver to the General Partner all information prepared by or on behalf of MRMC
relating to such potential purchase. As soon as practicable but in any event
within 30 days after receipt of such notification and information, the General
Partner, on behalf of the Partnership, shall notify MRMC that either (i) the
General Partner, on behalf of the Partnership, has elected, with the approval of
the Conflicts Committee, not to cause any of the Partnership Entities to pursue
the opportunity to acquire such Subject Assets, or (ii) the General Partner, on
behalf of the Partnership, has elected to cause any of the Partnership Entities
to pursue the opportunity to acquire such Subject Assets. If, at any time, the
General Partner abandons such opportunity with the approval of the Conflicts
Committee (as evidenced in writing by the General Partner following the request
of MRMC), MRMC may pursue such opportunity. Any Subject Assets that are
permitted to be purchased by MRMC pursuant to this Section 2.3(a) must be so
purchased (i) within 12 months of the time MRMC becomes able to pursue such
opportunity in accordance with the provisions of this Section 2.3(a) and (ii) on
terms

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not materially more favorable to MRMC than were offered to the Partnership. If
either of these conditions are not satisfied, the opportunity must be reoffered
to the Partnership in accordance with this Section 2.3(a).

          (b) If any MRMC Entity constructs or acquires Subject Assets as
described in Section 2.2(c)(iii) and (iv), then not later than 90 days after the
consummation of the completion of construction or acquisition by any MRMC Entity
of the Subject Assets, as the case may be, MRMC shall notify the General Partner
in writing of such construction or acquisition and offer the Partnership
Entities the opportunity to purchase the Subject Assets or, in the case of
Subject Assets described in Section 2.2(c)(iv), the Subject Assets related to
the Restricted Portion, in each case for their fair market value in accordance
with this Section 2.3 (the "Offer"). The Offer shall set forth MRMC's proposed
terms relating to the construction or purchase of such Subject Assets by any of
the Partnership Entities. MRMC will provide all information concerning the
business, operations and finances of such Subject Assets as may be reasonably
requested by the General Partner. As soon as practicable, but in any event
within 60 days after receipt of such written notification, the General Partner
shall notify MRMC in writing that either (i) the General Partner has elected,
with the approval of the Conflicts Committee, not to cause any of the
Partnership Entities to purchase such Subject Assets, in which event MRMC shall
be forever free to continue to own or operate such Subject Assets; provided,
however, that any future acquisitions or opportunities related to such
particular Subject Assets (except for expansions of existing facilities and
except as provided in Section 2.2(c)(i)) shall be subject to the procedures set
forth in this Section 2.3, or (ii) the General Partner has elected to cause any
of the Partnership Entities to purchase such Subject Assets, in which event the
procedures outlined in this Section 2.3 shall apply.

          (c) After the receipt of such Offer by the General Partner, MRMC and
the General Partner shall negotiate in good faith the terms on which such
Subject Assets will be sold to a Partnership Entity. If MRMC and the General
Partner (with the concurrence of the Conflicts Committee) are able to agree on
the fair market value of the Subject Assets that are subject to the Offer and
the other terms of the Offer within 60 days after receipt by the General Partner
of the Offer, one or more of the Partnership Entities shall purchase such
Subject Assets for the agreed upon fair market value as soon as commercially
practicable after such agreement has been reached.

          (d) If MRMC and the General Partner are unable to agree on the fair
market value of the Subject Assets that are subject to the Offer or the other
terms of the Offer within 60 days after receipt by the General Partner of the
Offer, MRMC and the General Partner will engage a mutually agreed upon,
nationally recognized investment banking firm to determine the fair market value
of such Subject Assets. Such investment banking firm will determine the fair
market value of such Subject Assets within 30 days of its engagement and furnish
MRMC and the General Partner its determination. The fees and expenses of the
investment banking firm will be split equally between MRMC and the Partnership
Entities. Once the investment banking firm has submitted its determination of
the fair market value of the Subject Assets, the General Partner will have the
right, but not the obligation, subject to the approval of the Conflicts
Committee, to cause one or more of the Partnership Entities to purchase such
Subject Assets pursuant to the Offer as modified by the determination of the
investment banking firm. If the General Partner elects to cause one or more of
the Partnership Entities to purchase such Subject

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Assets, then such Partnership Entities shall purchase such Subject Assets
pursuant to the Offer as modified by the determination of the investment banking
firm as soon as commercially practicable after such determination. If the
General Partner elects not to cause any of the Partnership Entities to purchase
such Subject Assets, MRMC shall be forever free to continue to own or operate
such Subject Assets; provided, however, that any future acquisitions or
opportunities related to such Subject Assets (except for expansions of existing
facilities and except as provided in Section 2.2(c)(i)) shall be subject to the
procedures set forth in this Section 2.3.

     2.4 SCOPE OF PROHIBITION. Except as provided in this Article II and the
Partnership Agreement, each of MRMC and its Affiliates shall be free to engage
in any business activity whatsoever, including those that may be in direct
competition with any Partnership Entity.

     2.5 ENFORCEMENT. MRMC agrees and acknowledges that the Partnership Entities
do not have an adequate remedy at law for the breach by MRMC of the covenants
and agreements set forth in this Article II, and that any breach by MRMC of the
covenants and agreements set forth in Article II would result in irreparable
injury to the Partnership Entities. MRMC further agree and acknowledge that any
member of the Partnership Entities may, in addition to the other remedies which
may be available to the Partnership Entities, file a suit in equity to enjoin
MRMC from such breach, and consent to the issuance of injunctive relief under
this Agreement.

                                  ARTICLE III
                                 INDEMNIFICATION

     3.1 ENVIRONMENTAL INDEMNIFICATION.

          (a) Subject to the limitations contained in this Section 3.1(a), MRMC
shall indemnify, defend and hold harmless each of the Partnership Entities from
and against environmental and toxic tort Losses suffered, incurred or paid by
any of the Partnership Entities by reason of or arising out of:

               (i) any violation or correction of violation of Environmental
     Laws associated with the Assets or the Retained Assets,

               (ii) any event or condition associated with the ownership or
     operation of the Assets or the Retained Assets (including, without
     limitation, the presence of Hazardous Substances on, under, about or
     migrating to or from the Assets or the Retained Assets or the disposal or
     release of Hazardous Substances generated by operation of the Assets or the
     Retained Assets at non-Asset locations) including, without limitation, (A)
     the cost and expense of any investigation, assessment, evaluation,
     monitoring, containment, cleanup, repair, restoration, remediation, or
     other corrective action required or necessary under Environmental Laws, (B)
     the cost or expense of the preparation and implementation of any closure,
     remedial, corrective action, or other plans required or necessary under
     Environmental Laws, and (C) the cost and expense for any environmental or
     toxic tort pre-trial, trial, or appellate legal or litigation support work,
     or

               (iii) any environmental indemnity provisions contained in the CF
     Martin Contribution Agreement.

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but only to the extent that such violation complained of under Section 3.1(a)(i)
or such events or conditions included under Section 3.1(a)(ii) occurred before
the Closing Date and only to the extent that a written notice of such violation,
event or condition is given to MRMC by the Partnership within five years
following the Closing Date (collectively, "Covered Environmental Losses"). In no
event shall the aggregate liability of MRMC pursuant to this Section 3.1(a)
exceed $7,500,000.

          (b) MRMC shall indemnify, defend and hold harmless any of the
Partnership Entities from and against any Losses suffered or incurred by any of
the Partnership Entities to the extent that MRMC is entitled to and receives
indemnification, is defended or held harmless against any such Losses from any
third-party pursuant to any agreement between any third-party and MRMC
(collectively, "Pass-Through Environmental Losses"). In furtherance of such
agreement, MRMC agrees to use its best commercially reasonable efforts to
pursue, for the benefit of the Partnership Entities, any such indemnification
with respect to which it might be entitled if requested by the Partnership;
provided that, the Partnership shall reimburse MRMC for all costs and expenses
incurred in connection with pursuing such indemnity on behalf of the
Partnership.

          (c) The Partnership shall indemnify, defend and hold harmless MRMC
from and against Losses suffered or incurred by any of the MRMC Entities by
reason of or arising out of:

               (i) any violation or correction of violation of Environmental
     Laws associated with the Assets, or

               (ii) any event or condition associated with ownership or
     operation of the Assets (including, but not limited to, the presence of
     Hazardous Substances on, under, about or migrating to or from the Assets or
     the disposal or release of Hazardous Substances generated by operation of
     the Assets at non-Asset locations) including, without limitation, (A) the
     cost and expense of any investigation, assessment, evaluation, monitoring,
     containment, cleanup, repair, restoration, remediation, or other corrective
     action required or necessary under Environmental Laws, (B) the cost or
     expense of the preparation and implementation of any closure, remedial,
     corrective action, or other plans required or necessary under Environmental
     Laws, and (C) the cost and expense for any environmental or toxic tort
     pre-trial, trial, or appellate legal or litigation support work;

and regardless of whether such violation complained of under Section 3.1(c)(i)
or such events or conditions included under Section 3.1(c)(ii) occurred before
or after the Closing Date, except to the extent that any of the foregoing are
Covered Environmental Losses or Pass-Through Environmental Losses for which the
Partnership Entities are entitled to indemnification from MRMC under this
Article III.

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     3.2 Additional Indemnification

          (a) In addition to and not in limitation of the indemnification
provided under Sections 3.1(a), 3.1(b) and 5.5, MRMC shall indemnify, defend,
and hold harmless the Partnership Entities from and against any Losses suffered
or incurred by the Partnership Entities by reason of or arising out of

               (i) any events and conditions associated with the ownership or
     operation of the Retained Assets, whether occurring before or after the
     Closing Date,

               (ii) the failure of the Partnership Entities to be the owner of
     such valid leasehold interests or fee ownership interests in and to the
     Assets as are necessary to enable the Partnership Entities to continue to
     own and operate the Assets and the Business in the same manner that the
     Assets and the Business were owned and operated by the MRMC Entities during
     the one-year period immediately prior to the Closing date to the extent
     that MRMC is notified of any of the foregoing within three years after the
     Closing Date,

               (iii) the failure of the Partnership Entities to have any consent
     or permit necessary to allow the Partnership Entities to own or operate the
     Assets and the Business in the same manner that the Assets and the Business
     were owned and operated by the MRMC Entities during the one-year period
     immediately prior to the Closing date to the extent that MRMC is notified
     of any of the foregoing within three years after the Closing Date,

               (iv) the currently pending legal actions against MRMC set forth
     on Schedule 3.2 hereto, and

               (v) all federal, state and local income tax liabilities
     attributable to the operation of the Assets prior to the Closing Date,
     including any such income tax liabilities of MRMC that may result from the
     consummation of the transactions contemplated by the Contribution
     Agreement.

          (b) In addition to and not in limitation of the indemnification
provided under Sections 3.1(c) and 5.5, or under the Partnership Agreement, the
Partnership shall indemnify, defend, and hold harmless the MRMC Entities from
and against any Losses suffered or incurred by any of the MRMC Entities by
reason of or arising out of events and conditions associated with:

               (i) the operation of the Assets and the Business, and

               (ii) the performance of the Services by MRMC and/or its employees
     pursuant to this Agreement (provided that MRMC is not in breach of this
     Agreement),

in each case occurring on or after the Closing Date (other than Covered
Environmental Losses which are provided for under Section 3.1), unless in any
such case such indemnification would not be permitted under Section 7.7 of the
Partnership Agreement.

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     3.3 INDEMNIFICATION PROCEDURES.

          (a) The Indemnified Party agrees that within a reasonable period of
time after it becomes aware of facts giving rise to a claim for indemnification
under this Article III, it will provide notice thereof in writing to the
Indemnifying Party, specifying the nature of and specific basis for such claim.

          (b) The Indemnifying Party shall have the right to control all aspects
of the defense of (and any counterclaims with respect to) any claims brought
against the Indemnified Party that are covered by the indemnification under this
Article III, including, without limitation, the selection of counsel,
determination of whether to appeal any decision of any court and the settling of
any such matter or any issues relating thereto; provided however, that no such
settlement shall be entered into without the consent of the Indemnified Party
unless it includes a full release of the Indemnified Party from such matter or
issues, as the case may be.

          (c) The Indemnified Party agrees to cooperate fully with the
Indemnifying Party, with respect to all aspects of the defense of any claims
covered by the indemnification under this Article III, including, without
limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may
receive, permitting the name of the Indemnified Party to be utilized in
connection with such defense, the making available to the Indemnifying Party of
any files, records or other information of the Indemnified Party that the
Indemnifying Party considers relevant to such defense and the making available
to the Indemnifying Party of any employees of the Indemnified Party; provided
however, that in connection therewith the Indemnifying Party agrees to use
reasonable efforts to minimize the impact thereof on the operations of the
Indemnified Party. In no event shall the obligation of the Indemnified Party to
cooperate with the Indemnifying Party as set forth in the immediately preceding
sentence be construed as imposing upon the Indemnified Party an obligation to
hire and pay for counsel in connection with the defense of any claims covered by
the indemnification set forth in this Article III; provided however, that the
Indemnified Party may, at its own option, cost and expense, hire and pay for
counsel in connection with any such defense. The Indemnifying Party agrees to
keep any such counsel hired by the Indemnified Party reasonably informed as to
the status of any such defense, but the Indemnifying Party shall have the right
to retain sole control over such defense.

          (d) In determining the amount of any Losses for which the Indemnified
Party is entitled to indemnification under this Agreement, the gross amount of
the indemnification will be reduced by (i) any insurance proceeds realized or to
be realized by the Indemnified Party, and such correlative insurance benefit
shall be net of any incremental insurance premium that becomes due and payable
by the Indemnified Party as a result of such claim and (ii) all amounts
recovered or recoverable by the Indemnified Party under contractual indemnities
from third parties.

                                   ARTICLE IV
                     SERVICES AND RELATED PARTY TRANSACTIONS

     4.1 SERVICES. During the term of this Agreement, MRMC agrees to provide
(either directly or through its Subsidiaries) on behalf of the General Partner
in accordance with Article VII of the Partnership Agreement, the employees or
independent contractors, corporate staff, support services and administrative
services necessary to operate the Business (the "Services"). MRMC shall perform
the Services in a manner that is substantially identical in nature and quality
to the services performed by MRMC for the Business during the one-year period
immediately prior to the Closing Date. The General Partner and the Partnership
agree that MRMC shall be reimbursed for all costs and expenses incurred in
connection with the performance of the

                                       11
<PAGE>

Services as if it were the General Partner in accordance with Section 7.4(b) and
7.6(c) of the Partnership Agreement, subject to the limitations set forth in
Section 4.2 of this Agreement.

     4.2 GENERAL AND ADMINISTRATIVE REIMBURSEMENT.

          (a) Except as provided in Section 4.2(b) below, the amount for which
MRMC shall be entitled to reimbursement from the Partnership pursuant to the
last sentence of Section 4.1 for Allocated General and Administrative Expenses
shall not exceed $1.0 million in the aggregate in the first year following the
date of this Agreement (the "Indirect Expenses Limit). Thereafter, the Indirect
Expenses Limit shall be increased annually by no more than the percentage
increase in the Consumer Price Index for the applicable year. Additionally, MRMC
and the General Partner may agree, with the consent of the Conflicts Committee,
to further increases to the Indirect Expenses Limit in order to account for
adjustments in the nature of the Services as the result of acquisitions by the
Partnership or other expansions of the Business.

          (b) Notwithstanding Section 4.2(a), the Indirect Expenses Limit will
not apply to (i) the cost of any third party legal, accounting or advisory
services received, or the direct expenses of MRMC incurred in connection with
acquisition or business development opportunities evaluated on behalf of the
Partnership; or (ii) expenses directly attributable to the operation of the
Partnership, its assets or the Business.

     4.3 DESIGNATION OF AGENTS. In connection with the provision of the Services
by the employees of MRMC, the General Partner, on behalf of the Partnership,
hereby appoints and empowers MRMC and each current and future employee of MRMC
who is fulfilling a job function for the Partnership in connection with the
conduct by the Partnership of its business in the ordinary course, as agent of
the Partnership with full power and authority to execute and deliver on behalf
of the Partnership, any documents, contracts, governmental filings or other
instruments commensurate with, but limited to, such job function. The power and
authority granted pursuant to this Section 4.3 to a person described in the
preceding sentence will be valid only for so long as such person is employed by
MRMC.

     4.4 RIGHT TO OPERATE. MRMC shall have the right, but not the obligation, to
act as operator of the Partnership's facilities to the same extent it acted as
operator of such facilities prior to the effective date of this Agreement for so
long as MRMC has responsibilities associated with such facilities.

     4.5 RELATED PARTY TRANSACTIONS. Each of MRMC, the General Partner, the
Partnership and the Operating Partnership agree that the execution or material
amendment of any "significant Martin agreement" (as such term is defined below)
must be approved by the Conflicts Committee. The term "significant Martin
agreement" means any agreement between the General Partner, the Partnership or
the Operating Partnership, on the one hand, and any Martin Entity, on the other
hand, that requires aggregate annual payments to or from any Martin Entity or
Martin Entities in excess of the Indirect Expense Limit.

                                       12
<PAGE>

                                   ARTICLE V
                           USE OF THE NAMES AND MARKS

     5.1 GRANT OF LICENSE. MRMC hereby grants to the Partnership and the
Partnership hereby accepts, a nontransferable, nonexclusive royalty-free right
and license to use the Names and Marks in connection with the Business during
the term of this Agreement.

     5.2 USE. All use of and reference to the Names and Marks by the Partnership
shall be generally approved by MRMC prior to such use or reference, and all such
use and reference shall conform with such instructions and quality standards as
MRMC from time to time may issue. MRMC shall have 30 days from the submission of
approval to approve or disapprove of the use or reference. Failure on the part
of MRMC to act within such 30-day period shall be deemed to constitute approval.
In no event shall use of or reference to the Names and Marks be inconsistent in
form or content with the sole ownership of the Names and Marks by MRMC. All use
of the Names and Marks by the Partnership, its agents, servants, employees and
vendees, shall inure solely to the benefit of MRMC. MRMC shall have the right to
make reasonable inspection of the Partnership's services rendered in connection
with the Names and Marks to protect the goodwill of MRMC associated with the
Names and Marks.

     5.3 VARIATIONS. The Partnership shall not adopt and commence using any
variations of the Names and Marks, or any other names and marks confusingly
similar thereto, without the prior approval of MRMC. MRMC shall have 30 days
from the submission of approval to approve or disapprove of the variation.
Failure on the part of MRMC to act within such 30-day period shall be deemed to
constitute approval.

     5.4 NONTRANSFERABLE. The license granted to the Partnership to use the
Names and Marks is not assignable or transferable, and it shall not inure to the
benefit of any other Person, including, without limitation, a trustee in
bankruptcy or any other successor to the Partnership, whether by operation of
law or otherwise; provided, however, that the Partnership shall be entitled to
sublicense the Names and Marks to any of its Subsidiaries.

     5.5 INDEMNITY. The Partnership agrees to be solely responsible for and to
defend and indemnify MRMC from and against any and all claims, demands and
causes of action, and all Losses sustained in connection therewith, arising out
of, resulting from or related to the use of the Names and Marks in the Business,
even if such claim, demand or cause of action is based on the sole, partial or
concurrent negligence of MRMC, except that MRMC shall defend and indemnify the
Partnership from and against all claims, demands or causes of action for
trademark infringement arising from the use of the Names and Marks by the
Partnership. If requested by MRMC, the Partnership shall retain counsel
reasonably satisfactory to MRMC to represent MRMC, and the Partnership shall pay
the fees and expenses of such counsel relating to such claim, demand, or cause
of action. MRMC shall be consulted with respect to all matters concerning such
claim, demand, or cause of action, and settlement of such claim, demand, or
cause of action shall not be made without the prior written approval of MRMC.

                                       13
<PAGE>

     5.6 DISCLAIMER OF WARRANTIES. MRMC DISCLAIMS ANY AND ALL WARRANTIES,
CONDITIONS OR REPRESENTATIONS (EXPRESS OR IMPLIED, ORAL OR WRITTEN) WITH RESPECT
TO THE LICENSE IN THIS ARTICLE V, OR ANY PART THEREOF, INCLUDING ANY AND ALL
IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS OR
SUITABILITY FOR ANY PURPOSE (WHETHER THE PARTY KNOWS, HAS REASON TO KNOW, HAS
BEEN ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE) WHETHER ALLEGED
TO ARISE BY LAW, BY REASON OF CUSTOM OR USAGE IN THE TRADE OR BY COURSE OF
DEALING.

                                   ARTICLE VI
                                  MISCELLANEOUS

     6.1 INSURANCE MATTERS. MRMC hereby agrees to cause each of the Partnership
Entities to be named as additional insureds in MRMC's current insurance program,
which is described on Schedule 6.1 attached hereto. Each of the Partnership
Entities shall pay for its allocated cost of that insurance coverage in an
amount equal to MRMC's cost of insuring the assets and operations of Partnership
Entity and generally in accordance with the allocations and methodology
described in Schedule 6.1.

     6.2 MANAGEMENT OF CF MARTIN.

          (a) Except as set forth below and to the extent allowed by applicable
law, MRMC agrees that it will, and (when applicable) it will use commercially
reasonable efforts to cause each of the MRMC Entities and each Martin Manager
to, exercise its J.V. Management Rights (as such term is defined below) in a
manner that it reasonably believes is in the best interests of the Partnership.
For purposes of this Agreement, the term "J.V. Management Rights" shall mean the
exercise by each of the Martin Entities or any Martin Manager of any voting
right or consent right granted by the CF Martin GP Agreement and the CF Martin
LP Agreement, including but not limited to, the exercise of rights contained in
Section 4.3 of the CF Martin LP Agreement (relating to distributions by CF
Martin) and Article X of the CF Martin LP Agreement (relating to transfers).
Notwithstanding anything to the contrary in this Agreement, no Martin Manager
shall be required to act in any manner that he or she reasonably believes would
(i) violate law, or (ii) constitute a breach of a fiduciary or similar duty that
such Martin Manager owes to CF Martin GP or CF Martin, or any of its members or
partners, respectively.

          (b) MRMC agrees to promptly provide the Partnership with a copy of any
notice it receives as a result of Article X of the CF Martin LP Agreement.

          (c) Except as provided for in this Section 6.2(c), MRMC agrees that no
member of the MRMC Group will either sell its Venture Interest, nor purchase the
Venture Interest of a third party, pursuant to Sections 10.1, 10.2, 10.5, 10.6
or 10.7 of the CF Martin LP Agreement without the written consent of the
Partnership. In addition, MRMC agrees that it will exercise its rights contained
in Section 10.2, 10.5, 10.6 or 10.7 of the CF Martin LP Agreement only as
directed by the Partnership. As between the MRMC Group and the Partnership, in
the event MRMC and the Partnership agree to purchase the Venture Interest of a
third party, the purchase price for and ownership of such Venture Interest shall
be allocated between the MRMC Group and the Partnership in accordance with their
respective ownership percentages in CF Martin and MRMC shall pay, or cause the
applicable MRMC Entity to pay, its proportionate share of the purchase price of
the Venture Interest to be purchased by MRMC or such MRMC

                                       14
<PAGE>

Entity. Notwithstanding the foregoing, in no event will MRMC or any MRMC Entity
be prohibited by this Agreement from selling its Venture Interest when required
to do so by the terms of the CF Martin LP Agreement or the CF Martin GP
Agreement.

          (d) MRMC agrees that it will not, and it will cause each of the MRMC
Entities to not, vote in favor of or otherwise consent to any amendment of the
CF Martin LP Agreement without the prior written consent of the Partnership.

     6.3 CHOICE OF LAW; SUBMISSION TO JURISDICTION. This Agreement shall be
subject to and governed by the laws of the State of Texas, excluding any
conflicts-of-law rule or principle that might refer the construction or
interpretation of this Agreement to the laws of another state. Each Party hereby
submits to the jurisdiction of the state and federal courts in Dallas County,
Texas.

     6.4 NOTICE. All notices or requests or consents provided for by, or
permitted to be given pursuant to, this Agreement must be in writing and must be
given by depositing same in the United States mail, addressed to the Person to
be notified, postpaid, and registered or certified with return receipt requested
or by delivering such notice in person or by telecopier or telegram to such
Person. Notice given by personal delivery or mail shall be effective upon actual
receipt. Notice given by telegram or telecopier shall be effective upon actual
receipt if received during the recipient's normal business hours, or at the
beginning of the recipient's next business day after receipt if not received
during the recipient's normal business hours. All notices to be sent to a Party
pursuant to this Agreement shall be sent to or made at the address set forth
below such Party's signature to this Agreement, or at such other address as such
Party may stipulate to the other parties in the manner provided in this Section
6.4.

     6.5 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of
the Parties relating to the matters contained herein, superseding all prior
contracts or agreements, whether oral or written, relating to the matters
contained herein.

     6.6 TERMINATION. This Agreement, other than the provisions of Article III,
shall terminate if the Partnership is no longer an Affiliate of MRMC.
Termination of this Agreement shall not terminate any Indemnifying Party's
continuing obligation of indemnification pursuant to Article III of this
Agreement which obligations shall survive as provided in Article III. In the
event of termination of this Agreement, the license granted by Article V hereof
shall automatically cease. As promptly as practicable (but in no event more than
180 days) following the termination of this Agreement, the Partnership shall
cease all use of the Names and Marks and any and all other names and marks
confusingly similar thereto. Termination of the license granted by Article V
hereof shall not terminate the Partnership's continuing obligation of
indemnification under Section 5.5 hereof. Upon termination of this Agreement,
MRMC shall have the right, but not the obligation, to continue as operator of
the Partnership's facilities to the same extent it acted as operator of such
facilities on behalf of the Partnership prior to the termination of this
Agreement for so long as MRMC has responsibilities associated with such
facilities, or the operation thereof.

                                       15
<PAGE>

     6.7 EFFECT OF WAIVER OR CONSENT. No waiver or consent, express or implied,
by any Party to or of any breach or default by any Person in the performance by
such Person of its obligations hereunder shall be deemed or construed to be a
consent or waiver to or of any other breach or default in the performance by
such Person of the same or any other obligations of such Person hereunder.
Failure on the part of a Party to complain of any act of any Person or to
declare any Person in default, irrespective of how long such failure continues,
shall not constitute a waiver by such Party of its rights hereunder until the
applicable statute of limitations period has run.

     6.8 AMENDMENT OR MODIFICATION. This Agreement may be amended or modified
from time to time only by the written agreement of all the Parties hereto;
provided however, that the Partnership may not, without the prior approval of
the Conflicts Committee, agree to any amendment or modification of this
Agreement. Each such instrument shall be reduced to writing and shall be
designated on its face an "Amendment" or an "Addendum" to this Agreement.

     6.9 ASSIGNMENT. No Party shall have the right to assign its rights or
obligations under this Agreement without the consent of the other Parties
hereto.

     6.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts with the same effect as if all signatory parties had signed the
same document. All counterparts shall be construed together and shall constitute
one and the same instrument.

     6.11 SEVERABILITY. If any provision of this Agreement or the application
thereof to any Person or circumstance shall be held invalid or unenforceable to
any extent, the remainder of this Agreement and the application of such
provision to other Persons or circumstances shall not be affected thereby and
shall be enforced to the greatest extent permitted by law.

     6.12 FURTHER ASSURANCES. In connection with this Agreement and all
transactions contemplated by this Agreement, each signatory party hereto agrees
to execute and deliver such additional documents and instruments and to perform
such additional acts as may be necessary or appropriate to effectuate, carry out
and perform all of the terms, provisions and conditions of this Agreement and
all such transactions.

     6.13 LAWS AND REGULATIONS. Notwithstanding any provision of this Agreement
to the contrary, no Party this Agreement shall be required to take any act, or
fail to take any act, under this Agreement if the effect thereof would be to
cause such Party to be in violation of any applicable law, statute, rule or
regulation.

     6.14 NEGOTIATION OF RIGHTS OF LIMITED PARTNERS, ASSIGNEES, AND THIRD
PARTIES. The provisions of this Agreement are enforceable solely by the Parties
to this Agreement, and no limited partner, member, assignee or other Person of
the Partnership or General Partner shall have the right, separate and apart from
the Partnership or the General Partner, to enforce any provision of this
Agreement or to compel any Party to this Agreement to comply with the terms of
this Agreement.

               [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                       16
<PAGE>

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on, and
effective as of, the date first written above.

                         MARTIN MIDSTREAM PARTNERS, L.P.

                         By: MARTIN MIDSTREAM GP. L.L.C.,
                             On behalf of itself and on behalf of Partnership
                             as its General Partner

                             By:
                                 --------------------------------------------
                                 Ruben S. Martin, III
                                 President

                         MARTIN OPERATING PARTNERSHIP L.P.

                         By: MARTIN OPERATING GP LLC

                             By:
                                 --------------------------------------------
                             Name:
                                   ------------------------------------------
                             Title:
                                    -----------------------------------------

                         MARTIN RESOURCE MANAGEMENT
                           CORPORATION

                             By:
                                 --------------------------------------------
                                 Ruben S. Martin, III
                                 President

                                       17<PAGE>
                                                                   EXHIBIT 10.12

                         MARTIN MIDSTREAM PARTNERS L.P.
                            LONG-TERM INCENTIVE PLAN

SECTION 1. Purpose of the Plan.

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

SECTION 2. Definitions.

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

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

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

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

     "Board" means the Board of Directors of the Company.

     "Change in Control" shall be deemed to have occurred upon the occurrence of
one or more of the following events: (i) any sale, lease, exchange or other
transfer (in one or a series of related transactions) of all or substantially
all of the assets of the Partnership, the Company or the Operating Partnership
to any Person or its Affiliates, other than the Partnership, the Company or any
of their Affiliates, (ii) any merger, reorganization, consolidation or other
transaction pursuant to which more than 50% of the combined voting power of the
equity interests in either the Company or Martin Resource Management Corporation
ceases to be owned by Persons who own such interests, respectively, as of the
date immediately prior to the effective date of the initial public offering of
Units, or (iii) the general partner (whether the Company or any other Person) of
the Partnership ceases to be an Affiliate of Martin Resource Management
Corporation.

<PAGE>

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

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

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

     "Employee" means any employee of the Company or an Affiliate, as determined
by the Committee.

     "Exchange Act" means the Securities Exchange Act of 1934.

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

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

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

     "Partnership Agreement" means the Amended and Restated Agreement of Limited
Partnership of Martin Midstream Partners L.P.

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

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

     "Plan" means this Martin Midstream Partners L.P. Long-Term Incentive Plan,
as amended from time to time.

     "Restricted Period" means the period established by the Committee with
respect to an Award during which the Award remains subject to forfeiture (i.e.,
it is not vested) and is not exercisable by or payable to the Participant;
provided, however, that the Restricted Period with respect to any Award may not
terminate prior to the end of the Subordination Period (as defined in the
Partnership Agreement) except (i) at the same time and in the same proportion as
subordinated units are converted into Units, or (ii) upon a Change in Control.

                                      -2-
<PAGE>

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

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

     "Unit" means a Common Unit of the Partnership.

SECTION 3. Administration.

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

SECTION 4. Units.

     (a) Units Available. Subject to adjustment as provided in Section 4(c), the
number of Units with respect to which (i) Phantom Units may be granted under the
Plan is 241,667 and (ii) the number of Units with respect to which Options may
be granted under the Plan is 483,333. If any Option or Phantom Unit is forfeited
or otherwise terminates or is canceled without the delivery of Units, then

                                      -3-
<PAGE>

the Units covered by such Award, to the extent of such forfeiture, termination
or cancellation, shall again be Units with respect to which an Option or Phantom
Unit, as the case may be, may be granted.

     (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant
to an Award shall consist, in whole or in part, of Units acquired in the open
market, from any Affiliate, or from the Partnership, or any combination of the
foregoing, as determined by the Committee in its discretion.

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

SECTION 5. Eligibility.

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

SECTION 6. Awards.

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

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

          (ii) Time and Method of Exercise. The Committee shall determine the
     Restricted Period with respect to an Option, which may include, without
     limitation, accelerated vesting upon the achievement of specified
     performance goals, and the method or methods by which payment of the
     exercise price with respect thereto may be made or deemed to have been
     made, which may include, without limitation: (a) cash, (b) check acceptable
     to the Company, (c) a "cashless-broker" exercise through procedures
     approved by the Company, (d) a full

                                      -4-
<PAGE>

     recourse note from the Participant in a form acceptable to the Company,
     provided that such note shall bear a "market" rate of interest to preclude
     variable accounting for financial accounting purposes, and shall not be
     made to any Director or executive Employee of the Company, Partnership or
     any Affiliate, or (e) any combination thereof, having a Fair Market Value
     on the exercise date equal to the relevant exercise price.

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

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

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

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

          (iii) Lapse of Restrictions. Upon or as soon as reasonably practical
     following the vesting of each Phantom Unit, the Participant shall be
     entitled to receive from the Company one Unit or cash equal to the Fair
     Market Value of a Unit, as determined by the Committee in its discretion.

     (c) General.

          (i) Awards May Be Granted Separately or Together. Awards may, in the
     discretion of the Committee, be granted either alone or in addition to, in
     tandem with, or in substitution for any other Award granted under the Plan
     or any award granted under any other plan of the Company or any Affiliate.
     Awards granted in addition to or in tandem with other Awards or awards
     granted under any other plan of the Company or any Affiliate may be granted
     either at the same time as or at a different time from the grant of such
     other Awards or awards.

                                      -5-
<PAGE>

          (ii) Limits on Transfer of Awards.

               (A) Except as provided in (C) below, each Option shall be
          exercisable only by the Participant during the Participant's lifetime,
          or by the person to whom the Participant's rights shall pass by will
          or the laws of descent and distribution.

               (B) Except as provided in (C) below, no Award and no right under
          any such Award may be assigned, alienated, pledged, attached, sold or
          otherwise transferred or encumbered by a Participant and any such
          purported assignment, alienation, pledge, attachment, sale, transfer
          or encumbrance shall be void and unenforceable against the Company or
          any Affiliate.

               (C) To the extent specifically provided by the Committee in any
          Award Agreement, an Option may be transferred by a Participant without
          consideration to immediate family members or related family trusts,
          limited partnerships or similar entities but only on such terms and
          conditions as the Committee may from time to time establish.

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

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

          (v) Consideration for Grants. Awards may be granted for such
     consideration, including services, as the Committee determines.

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

                                      -6-
<PAGE>

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

SECTION 7. Amendment and Termination.

     Except to the extent prohibited by applicable law:

     (a) Amendments to the Plan. Except as required by the rules of the
principal securities exchange on which the Units are traded and subject to
Section 7(b) below, the Board or the Committee may amend, alter, suspend,
discontinue, or terminate the Plan in any manner, including increasing the
number of Units available for Awards under the Plan, without the consent of any
partner, Participant, other holder or beneficiary of an Award, or other Person;
provided, however, that no amendment to the Plan may be made without the
approval of a Unit Majority (as defined in the Partnership Agreement) that would
accelerate vesting to prior to the end of the Subordination Period, except as
provided in the current definition of Restricted Period.

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

     (c) Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee is hereby authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition
of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) of the Plan) affecting the Partnership or the
financial statements of the Partnership, or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan.

SECTION 8. General Provisions.

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

     (b) Withholding. The Company or any Affiliate is authorized to withhold
from any Award, from any payment due or transfer made under any Award or from
any compensation or other amount owing to a Participant the minimum required
amount of any applicable federal and state income and employment taxes payable
in respect to the grant of an Award, its exercise, or any payment or transfer
under an Award or under the Plan. Such withholding shall, at the sole discretion

                                      -7-
<PAGE>

of the Committee, consist in whole or in part of: cash, Units, Units that would
otherwise be issued pursuant to such Award or other property.

     (c) No Right to Employment. The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or
any Affiliate or to remain on the Board, as applicable. Further, the Company or
an Affiliate may at any time dismiss a Participant from employment, free from
any liability or any claim under the Plan.

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

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

     (f) Other Laws. The Committee may refuse to issue or transfer any Units or
other consideration under an Award if, in its sole discretion, it determines
that the issuance or transfer of such Units or such other consideration might
violate any applicable law or regulation, the rules of the principal securities
exchange on which the Units are then traded, or entitle the Partnership or an
Affiliate to recover the same under Section 16(b) of the Exchange Act, and any
payment tendered to the Company by a Participant, other holder or beneficiary in
connection with the exercise of such Award shall be promptly refunded to the
relevant Participant, holder or beneficiary.

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

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

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

     (j) Facility of Payment. Any amounts payable hereunder to any person under
legal disability or who, in the judgment of the Committee, is unable to properly
manage his financial affairs,

                                      -8-
<PAGE>

may be paid to the legal representative of such person, or may be applied for
the benefit of such person in any manner that the Committee may select, and the
Company shall be relieved of any further liability for payment of such amounts.

     (k) Gender and Number. Words in the masculine gender shall include the
feminine gender, the plural shall include the singular and the singular shall
include the plural.

SECTION 9. Term of the Plan.

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

                                      -9-

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