Document:

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                       FIRST AMENDMENT TO CREDIT AGREEMENT

      This FIRST AMENDMENT TO CREDIT AGREEMENT (this "FIRST AMENDMENT") is
entered into effective as of December 23, 2003, among MARTIN OPERATING
PARTNERSHIP L.P., a Delaware limited partnership, as borrower (the "BORROWER"),
MARTIN MIDSTREAM PARTNERS L.P. (the "MLP"), a Delaware limited partnership, and
MARTIN OPERATING GP LLC, a Delaware limited liability company, as guarantors,
the financial institutions parties to the Credit Agreement (collectively, the
"LENDERS"), and ROYAL BANK OF CANADA, as administrative agent (the
"ADMINISTRATIVE AGENT") and collateral agent for the Lenders and as L/C Issuer,
Swing Line Lender and a Lender.

      WHEREAS, the Borrower, the MLP, the Administrative Agent and the Lenders
are parties to that certain Credit Agreement dated as of November 6, 2002 (the
"CREDIT AGREEMENT");

      WHEREAS, the Borrower has entered into that certain Asset Purchase
Agreement (as amended, supplemented, restated or otherwise modified prior to the
date hereof, the "TESORO ASSET PURCHASE AGREEMENT") dated as of October 27, 2003
by and between the Borrower, the MLP and Tesoro Marine Services, L.L.C.
("Tesoro"), pursuant to which the Borrower has agreed to purchase from Tesoro
certain petroleum distribution and terminalling assets, vessels and related
assets (collectively, the "ACQUIRED ASSETS") (the acquisition of the Acquired
Assets contemplated by the Tesoro Asset Purchase Agreement is herein called the
"TESORO ACQUISITION"); and

      WHEREAS, the Borrower has requested that the Lenders agree to amend
certain provisions of the Credit Agreement in order to facilitate the Tesoro
Acquisition, which include, among other things, an increase in the amount of the
Acquisition Subfacility Commitment by $20,000,000 in order to finance the Tesoro
Acquisition.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

      SECTION 1. Definitions. Unless otherwise defined in this First Amendment,
terms used in this First Amendment which are defined in the Credit Agreement
shall have the meanings assigned to such terms in the Credit Agreement. The
interpretive provisions set forth in SECTION 1.02 of the Credit Agreement shall
apply to this First Amendment.

      SECTION 2. Amendments to the Credit Agreement. Subject to satisfaction of
the conditions precedent set forth in SECTION 3 of this First Amendment, the
Credit Agreement is hereby amended as follows:

      (a) From and after the First Amendment Effective Date (defined below), (i)
the Acquisition Subfacility Commitment under the Credit Agreement shall be
increased from $10,000,000 to $30,000,000, and (ii) the Committed Sum of each
Lender shall be as set forth on SCHEDULE 2.01 attached hereto as APPENDIX A.

      (b) The following definitions are inserted alphabetically into SECTION
1.01 of the Credit Agreement:

            First Amendment means that certain First Amendment to Credit
      Agreement dated as of the First Amendment Effective Date among the
      Borrower, the MLP, Martin Operating GP, LLC, the Administrative Agent, the
      Collateral Agent and the Lenders.

            First Amendment Effective Date means December 23, 2003.

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            Minimum Fixed Asset Coverage Percentage means 150%; provided,
      however, from and after the date that is twelve months after the First
      Amendment Effective Date, the term Minimum Fixed Asset Coverage Percentage
      shall mean 175%.

            Non-Offset Agreement means that certain Non-Offset Agreement dated
      as of December 23, 2003, among the Borrower, the MLP, Martin Operating GP
      LLC, Martin Midstream GP LLC, Martin Resource and the Subsidiaries of
      Martin Resource therein named.

            OLV has the meaning set forth in Section 7.15(e).

            Super Majority Lenders means (a) on any date of determination prior
      to the Maturity Date, those Lenders holding more than 75% of the sum of
      (i) the Revolver Commitment plus (ii) the Term Loan Principal Debt; and
      (c) on any date of determination on or after the Maturity Date, those
      Lenders holding more than 75% of the Outstanding Amount of Loans.

            Tesoro Acquisition means the acquisition by the Borrower of the
      petroleum distribution and terminalling assets, vessels and related assets
      from Tesoro Marine Services, L.L.C. pursuant to the Asset Purchase
      Agreement dated as of October 27, 2003, by and between Tesoro Marine
      Services, L.L.C., the Borrower and the MLP, as amended, supplemented,
      restated or otherwise modified from time to time.

      (c) The definition of "Acquisition Subfacility Commitment" in SECTION 1.01
of the Credit Agreement is hereby amended by replacing the term "$10,000,000"
set forth therein with the term "$30,000,000".

      (d) The definition of "Applicable Rate" in SECTION 1.01 of the Credit
Agreement is hereby amended by adding the following sentence to the end thereof:

            "Notwithstanding the foregoing, the Applicable Rate shall be
      adjusted on the First Amendment Effective Date and shall be set at the
      higher of (i) the Applicable Rate set forth in the Pricing Grid above that
      corresponds to the Pro Forma Leverage Ratio (defined below in this
      paragraph), and (ii) Pricing Level 3. Such adjusted Applicable Rate shall
      remain in effect until the Borrower delivers a Compliance Certificate
      pursuant to Section 6.01(b) for the year ending December 31, 2003, and on
      the first day of the fiscal quarter following delivery of such Compliance
      Certificate, the Applicable Rate will be adjusted based on the Leverage
      Ratio set forth in such Compliance Certificate, as set forth in the
      preceding paragraph. As used in this paragraph, "Pro Forma Leverage Ratio"
      means the Leverage Ratio based on the pro forma financial statements
      delivered by the Borrower on the First Amendment Effective Date, which pro
      forma financial statements shall give effect to the Tesoro Acquisition and
      the making of the Loans on the First Amendment Effective Date and shall be
      prepared on a pro forma basis (in a manner satisfactory to the
      Administrative Agent) as of the end of the fiscal quarter most recently
      ended. In the event the Borrower fails to deliver a Compliance Certificate
      in accordance with Section 6.01(b) for the year ended December 31, 2003,
      then the Applicable Rate shall be adjusted in accordance with the rules
      set forth in clauses (a), (b) and (c) of the preceding paragraph."

      (e) The definition of "Capital Expenditure" in SECTION 1.01 of the Credit
Agreement is hereby amended by adding the following sentence to the end thereof:

            "For the avoidance of doubt, as used in this Credit Agreement, the
      terms Capital Expenditure, capital expenditure and expenditure shall not
      include expenditures for Acquisitions."

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      (f) The definition of "Material Agreements" in SECTION 1.01 of the Credit
Agreement is hereby amended by adding the following new clauses after clause (p)
thereof and renaming the existing clause (q) and (r) accordingly:

      "(q) Marine Lubricants Delivery Agency & Transportation Agreement by and
      between Chevron International Oil Company, Inc. and Tesoro Petroleum
      Distributing Company dated November 1, 1993,

      (r) Marine Products Handling Agreement by and between Texaco Fuel and
      Marine Marketing and Tesoro Petroleum Distributing Co. dated January 1,
      1993,

      (s) Lubricants Reseller Contract by and between Shell Oil Company and
      Tesoro Petroleum Distributing Company dated December 1, 1990,

      (t) Marine Lubricants Distributor Agreement by and between ExxonMobil Oil
      Corporation and Tesoro Marine Services, LLC dated July 1, 2001,

      (u) Lubrication Marketer Agreement by and between Chevron Products
      Company, a division of Chevron U.S.A. Inc. and Tesoro Marine Services,
      Inc. dated August 1, 2003,

      (v) Lease Agreement, Galveston, Texas (Terminal #1) by and between BJ
      Services Company, U.S.A. and Tesoro Coastwide Services Company dated
      September 1, 1997,

      (w) Lease Agreement Harbor Island, Texas by and between BJ Services
      Company, U.S.A. and Tesoro Coastwide Services Company dated September 1,
      1997,

      (x) Warehousing and Service Agreement - Freeport / Harbor / Island /
      Sabine Pass / Galveston / Port O'Connor by and between M-I Drilling Fluids
      L.L.C. and Coastwide Marine Services, Inc. dated April 10, 1995,

      (y) Continuing Contract No. C-33146 by and between Exxon Company, USA and
      Tesoro Marine Services, Inc. dated December 17, 1990,

      (z) Service Agreement by and between Newpark Drilling Fluids and Tesoro
      Coastwide Service Company dated September 19, 1997,

      (aa) Tank Farm Operating Agreement between Chevron U.S.A. Production
      Company and Tesoro Coastwide Services Company dated effective April 25,
      1997,

      (bb) Transportation Services Agreement between the Borrower and Midstream
      Fuel Service LLC dated as of December 23, 2003,

      (cc) Terminal Services Agreement between the Borrower and Midstream Fuel
      Service LLC dated as of December 23, 2003,"

      (g) Clause (a) of the definition of "Permitted Acquisition" in SECTION
1.01 of the Credit Agreement is hereby amended to read in its entirety as
follows:

            "(a) (i) in the case of each Investment, such Investment results in
      the Borrower's ownership of a Subsidiary (or such Investment is an
      Investment in an existing Subsidiary) and the

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      Borrower shall have complied with the requirements of Sections 6.15 and
      6.18 as of the date of such Investment, and (ii) in the case of each
      Acquisition, the Borrower or applicable Subsidiary consummating the
      Acquisition shall have complied with Section 6.18 as of the date of such
      Acquisition;"

      (H) SECTION 6.18(a) of the Credit Agreement is hereby amended to read in
its entirety as follows:

            "(a) The Borrower and the MLP shall cause the MLP and each
      Subsidiary of the Borrower and the MLP to take such actions and to execute
      and deliver such documents and instruments as the Administrative Agent
      shall request pursuant to this Section 6.18(a) to ensure that the
      Collateral Agent on behalf of the Lenders shall, at all times, have
      currently effective duly executed Loan Documents granting Liens and
      security interests in (i) not less than 80% (based on the OLV) of the
      Vessels and the other Fixed Assets, (ii), all accounts receivable,
      inventory, equipment, general intangibles, and deposit accounts, and (iii)
      all other material assets and properties of the MLP, the Borrower, and
      their Subsidiaries, including all capital stock, partnership, joint
      venture, membership interests, or other equity interests; provided that,
      (A) equity interests in CF Martin Sulphur will not be pledged until (1)
      the CF Martin Sulphur Organization Documents no longer prohibit the MLP,
      the Borrower, or their Subsidiaries from granting a Lien and security
      interest in equity interests of CF Martin Sulphur or (2) Martin Resource,
      its Subsidiaries, or Affiliates own all of the equity interests in CF
      Martin Sulphur and CF Martin Sulphur General Partner, (B) general
      partnership interests in the Borrower shall not be pledged by the Borrower
      General Partner until (1) such time as the Borrower General Partner
      Organization Documents no longer prohibit the Borrower General Partner
      from granting a Lien and security interest in the general partnership
      interests of the Borrower and (2) such pledge shall not result in any
      material adverse tax consequences to the MLP or its Subsidiaries, and (C)
      if the grant of a Lien on any specific lease, contract right, governmental
      license or approval or similar property (collectively, the "Non-Pledgeable
      Collateral") is expressly prohibited by, or would cause a default under or
      termination, avoidance or forfeiture of, any lease, contract, license or
      Law to which the MLP, the Borrower, or any of their Subsidiaries is a
      party or is subject, then the Loan Parties shall not be required to grant
      a Lien to the Collateral Agent on such Non-Pledgeable Collateral; and
      provided further, that upon the request of the Administrative Agent, the
      Loan Parties agree to use commercially reasonable efforts to obtain any
      consents, authorizations, waivers, or other approvals that may be required
      in order to grant a Lien on Non-Pledgeable Collateral specifically
      requested by the Administrative Agent ("Required Approvals"). Subject to
      the preceding provisions of this Section 6.18(a), the Borrower and the MLP
      agree that upon the written request of the Administrative Agent, the MLP,
      the Borrower and/or their Subsidiaries, as applicable, shall, within 30
      days from and after receipt of such written request, execute and deliver
      to the Administrative Agent supplemental Loan Documents, in form and
      substance satisfactory to the Administrative Agent and its counsel,
      securing payment of the Notes and the other Obligations and covering
      additional assets and properties not then encumbered by any Loan Documents
      (together with such other information, as may be requested by the
      Administrative Agent, each of which shall be in form and substance
      reasonably acceptable to the Administrative Agent) such that the
      Administrative Agent shall have received currently effective duly executed
      and perfected Collateral Documents encumbering substantially all of the
      assets of the MLP, the Borrower and each of their respective Subsidiaries
      as required by this Section 6.18(a) (it being acknowledged and agreed that
      if the Loan Parties cannot obtain all Required Approvals in respect of any
      specific Non-Pledgeable Collateral using commercially reasonable efforts,
      then the Loan Parties shall not be required to grant a Lien on such
      Non-Pledgeable Collateral to the Collateral Agent). Notwithstanding
      anything to the contrary set forth herein, no lease, contract or license

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      between (x) the MLP, the Borrower or any of their Subsidiaries and (y)
      Martin Resource or any of its Subsidiaries shall prohibit a Lien in favor
      of, or foreclosure by, the Collateral Agent thereon."

      (I) SECTION 6.18(c) of the Credit Agreement is hereby amended by deleting
in its entirety the second sentence thereof.

      (J) SECTION 7.01 of the Credit Agreement is hereby amended by (i) deleting
the word "and" at the end of subsection (p) thereof, (ii) deleting the period at
the end of subsection (q) thereof and adding "; and" at the end of such
subsection, and (iii) adding the following subsection (r) thereto:

            "(r) Liens encumbering the Acquired Assets (as such term is defined
      in the First Amendment) which, under the terms of the First Amendment, are
      expressly permitted to encumber such Acquired Assets.

      (k) The following is hereby added as the last sentence of SECTION 7.11 of
the Credit Agreement:

            "Notwithstanding the foregoing, the Lenders hereby authorize the
      MLP, the Borrower and their respective Subsidiaries to enter into the
      Non-Offset Agreement."

      (l) SECTION 7.15(c) of the Credit Agreement (Minimum Net Worth) is hereby
amended by replacing "$35,000,000" with "$40,000,000".

      (m) SECTION 7.15(e) of the Credit Agreement (Fixed Asset Coverage) is
hereby amended as follows: (A) the phrase "subject to the Collateral Documents"
is deleted and (B) each time the term "200%" appears, it is deleted and replaced
by the term "the Minimum Fixed Asset Coverage Percentage".

      (n) SECTION 10.01(a) of the Credit Agreement is hereby amended by revising
the clause "provided, however," to read as follows: "provided however, except as
provided in Section 10.01(b),".

      (o) SECTION 10.01(b) of the Credit Agreement is hereby amended by adding
the following sentence to the end thereof: "Any amendment to the definition of
"Minimum Fixed Asset Coverage Percentage" must be by an instrument in writing
executed by the Borrower, the Administrative Agent and the Super Majority
Lenders."

      (p) SCHEDULE 2.01 to the Credit Agreement is hereby replaced in its
entirety by a new SCHEDULE 2.01 in the form attached hereto as APPENDIX A.

      (q) SCHEDULE 5.21 to the Credit Agreement is hereby replaced in its
entirety by a new SCHEDULE 5.21 in the form attached hereto as APPENDIX B.

      SECTION 3. Conditions of Effectiveness. The amendments to the Credit
Agreement set forth in SECTION 2 of this First Amendment shall not be effective
until the date (such date, the "FIRST AMENDMENT EFFECTIVE Date") each of the
following conditions precedent has been satisfied in full:

      (a) The Administrative Agent shall have received the following:

            (i) a counterpart of this First Amendment executed by each of the
      parties hereto (which may be by telecopy transmission);

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            (ii) Notes executed by the Borrower in favor of those Lenders
      increasing their Commitments hereunder and requesting such Notes, each in
      a principal amount equal to the increase in each such Lender's Committed
      Sum;

            (iii) from each Loan Party, such certificates of secretary,
      assistant secretary, manager, or general partner, as applicable, as the
      Administrative Agent may require, certifying (A) resolutions authorizing
      the execution and performance of this First Amendment and the other Loan
      Documents which such Person is executing in connection herewith, (B) the
      incumbency and signature of the officer executing such documents, and (C)
      that there has been no change in such Person's Organizational Documents
      since November 6, 2002 (or, if there has been a change, attaching a copy
      thereof);

            (iv) a copy of the Tesoro Asset Purchase Agreement, and schedules
      and exhibits thereto (as supplemented or amended prior to the First
      Amendment Effective Date), certified by the Borrower as true and complete,
      in form and substance reasonably satisfactory to the Administrative Agent;

            (v) executed counterparts of the Mortgages and Security Agreements
      granting the Administrative Agent a first priority lien (subject only to
      Permitted Liens and, with respect to the Galveston Assets (defined below)
      and the Harbor Island Assets (defined below), the title exceptions and
      qualifications referenced in SECTION 3(a)(xiii) below) on (A) the Vessels
      (as defined in the Tesoro Asset Purchase Agreement) (the "TESORO
      VESSELS"), (b) other than the water bottom lease, coastal easements, and
      lease described on SCHEDULE 4(b) attached hereto, the Acquired Assets
      located on Pelican Island, Galveston County, Texas (the "GALVESTON
      ASSETS") and the Acquired Assets located on Harbor Island, Nueces County,
      Texas (the "HARBOR ISLAND ASSETS"), (C) two fertilizer plants located in
      Ector County, Texas, and one fertilizer plant located in Hale County,
      Texas (the "PLANTS"), (D) the assets acquired by the Borrower from Cross
      Oil Refining & Marketing, Inc. in October, 2003, and described on SCHEDULE
      3(a)(v)(D) hereto (collectively, the "CROSS ASSETS"), and (E) the vessels
      acquired by the Borrower from Cenac Towing Company, Inc. in October, 2003,
      and described on SCHEDULE 3(a)(v)(E) hereto (collectively, the "CENAC
      VESSELS") (the Tesoro Vessels, the Galveston Assets, the Harbor Island
      Assets, the Plants, the Cross Assets, and the Cenac Vessels are
      collectively referred to herein as the "MORTGAGED ASSETS"), each of which
      shall be in form and substance satisfactory to the Administrative Agent
      and shall have been duly authorized, executed and delivered by each of the
      parties thereto;

            (vi) evidence that all recordings or filings of UCC financing
      statements, the Mortgages and such other documents as may be reasonably
      deemed necessary by the Administrative Agent to perfect the rights, titles
      and interests of the Lenders and the Administrative Agent in the Mortgaged
      Assets shall have been made, or arrangements satisfactory to the
      Administrative Agent shall have been made for the making of such
      recordings and filings in the appropriate places or offices;

            (vii) opinions dated as of the First Amendment Effective Date, in
      form and substance reasonably satisfactory to the Administrative Agent,
      from Baker Botts L.L.P., counsel to each Loan Party and the General
      Partner;

            (viii) a duly completed Compliance Certificate, dated as of the
      First Amendment Effective Date, substantially in the form of EXHIBIT C to
      the Credit Agreement, signed by a Responsible Officer of the Borrower and
      a Responsible Officer of the MLP, demonstrating pro forma compliance with
      SECTIONS 7.15(a), (b), (c) and (d) of the Credit Agreement as of the end
      of

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      the most recent fiscal quarter for which the Borrower is required to
      provide financial statements pursuant to SECTION 6.01(c), after giving
      effect to the Tesoro Acquisition and the making of the Loans on the First
      Amendment Effective Date, and, in each case, including the revenue
      adjustments and cost savings expected, in the good faith judgment of the
      management of the Loan Parties, to be achieved in connection with the
      Tesoro Acquisition to the extent such revenue adjustments and cost savings
      could be reflected in pro forma financial information complying with the
      requirements of Article XI of Regulation S-X under the Securities and
      Exchange Act of 1934, as if the Tesoro Acquisition had been consummated as
      of the first day of the relevant fiscal quarter;

            (ix) a certificate of a Responsible Officer of the Borrower, dated
      as of the First Amendment Effective Date, providing unaudited pro forma
      financial statements of the Borrower as of the end of the most recent
      fiscal quarter for which the Borrower is required to provide financial
      statements pursuant to SECTION 6.01(c), including balance sheet and
      statements of income and cash flow, giving effect on a pro forma basis (in
      a manner satisfactory to the Administrative Agent) to the Tesoro
      Acquisition and the making of the Loans on the First Amendment Effective
      Date, and, in each case, including the revenue adjustments and cost
      savings expected, in the good faith judgment of the management of the Loan
      Parties, to be achieved in connection with the Tesoro Acquisition to the
      extent such revenue adjustments and cost savings could be reflected in pro
      forma financial information complying with the requirements of Article XI
      of Regulation S-X under the Securities and Exchange Act of 1934, as if the
      Tesoro Acquisition had been consummated as of the first day of the
      relevant fiscal quarter;

            (x) a certificate signed by a Responsible Officer of the Borrower,
      dated as of the First Amendment Effective Date, certifying that:

                  (A) (1) the closing of the Tesoro Acquisition is being
            consummated on such date, simultaneously with the funding of the
            Loans under the Acquisition Subfacility being made on such date, and
            (2) the acquisition contemplated by the Additional Purchase
            Agreement (as defined in the Tesoro Asset Purchase Agreement) is
            being consummated on such date, simultaneously with the closing of
            the Tesoro Acquisition;

                  (B) attached to such certificate are additions to the Annexes
            to the Pledge and Security Agreement executed by the Borrower (the
            "BORROWER SECURITY AGREEMENT"), and, as amended by such additions,
            the Annexes to the Borrower Security Agreement and the Annexes to
            the Pledge and Security Agreements executed by the MLP and by Martin
            Operating GP LLC are accurate and complete in all material respects;

                  (C) except as otherwise set forth on SCHEDULE 5(b) to this
            First Amendment, both before and after taking into account the
            Tesoro Acquisition and the funding of Loans on such date, the
            representations and warranties contained in ARTICLE V of the Credit
            Agreement and in the Collateral Documents are true and correct in
            all material respects on and as of such date except to the extent
            such representations and warranties relate solely to an earlier
            date;

                  (D) both before and after taking into account the Tesoro
            Acquisition, no Default or Event of Default has occurred and is
            continuing as of such date;

                  (E) since December 31, 2002 there has occurred no material
            adverse change in (x) the business, assets, liabilities (actual or
            contingent), operations, or condition (financial or otherwise) of
            the Borrower and its Subsidiaries, taken as a whole, or the

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            MLP and its Subsidiaries, taken as a whole, or (y) any of the
            Mortgaged Assets or the Acquired Assets;

                  (F) there is no litigation, investigation or proceeding known
            to and affecting the Borrower or any Borrower Affiliate for which
            the Borrower is required to give notice pursuant to SECTION 6.03(c)
            of the Credit Agreement; and

                  (G) there are no actions, suits, investigations or proceedings
            pending or, to the knowledge of the MLP or the Borrower, threatened
            in any court or before any arbitrator or governmental authority by
            or against the Borrower, any Guarantor, the MLP General Partner, or
            any of their respective properties, that (x) if adversely
            determined, could reasonably be expected to materially and adversely
            affect the Borrower, any Guarantor, or any of the Mortgaged Assets
            or the Acquired Assets, or (y) seek to affect or pertain to any
            transaction contemplated hereby, the Tesoro Acquisition, or the
            ability of the Borrower or any Guarantor to perform its obligations
            under the Loan Documents;

            (xi) a certificate of a Responsible Officer, dated as of the First
      Amendment Effective Date, (A) listing the Material Agreements executed in
      connection with, or assumed in connection with, the Tesoro Acquisition,
      including without limitation the Transportation Services Agreement between
      the Borrower and Midstream Fuel Service LLC dated as of December 23, 2003,
      and the Terminal Services Agreement between the Borrower and Midstream
      Fuel Service LLC dated as of December 23, 2003, each executed as of the
      First Amendment Effective Date by Martin Resource Management Corporation
      and the Borrower, (B) attaching a copy of each of such Material Agreement,
      and (C) certifying that the Borrower has no knowledge of any material
      default thereunder by any party thereto;

            (xii) an appraisal of the Mortgaged Assets and the other Acquired
      Assets from an independent appraiser reasonably acceptable to the
      Administrative Agent setting forth the orderly liquidation value of (A)
      the Galveston Assets, the Tesoro Vessels and the Plants, which shall be at
      least $20,000,000, and (B) the other Acquired Assets;

            (xiii) with respect to the Mortgaged Assets that are real estate
      Collateral, (A) a commitment to issue a mortgagee's title policy and a pro
      forma policy issued by a title company reasonably satisfactory to the
      Administrative Agent (i) for all such real estate Collateral other than
      the Galveston Assets and the Harbor Island Assets, in form and substance
      reasonably satisfactory to the Administrative Agent (including such
      endorsements as the Administrative Agent shall reasonably require), and
      (ii) for the Galveston Assets and the Harbor Island Assets, containing
      such title exceptions and qualifications as are contained in the deeds or
      other instruments of conveyance under which the Borrower takes title to
      the Galveston Assets and the Harbor Island Assets in accordance with the
      Tesoro Asset Purchase Agreement, and in each case together with the
      payment of all premiums for the issuance of such title policy, and (B) if
      required by the Administrative Agent, a survey (if such Mortgaged Assets
      are located in Texas, such survey shall be a Texas Board of Professional
      Land Surveyors Surveyor's Manual Category 1A Condition II Land Title
      Survey, and if such Mortgaged Assets are located in Louisiana, such survey
      shall be a Class B Property Boundary Survey meeting the minimum surveying
      standards established by the Louisiana Professional Engineering and Land
      Surveying Board; provided however, that if the underwriter of the
      mortgagee's policies of title insurance requires surveys of a different
      type, the Borrower shall provide surveys meeting such requirements);

            (xiv) with respect to the Borrower's existing real property
      Collateral located in Jefferson County, Texas, a commitment to issue a
      mortgagee's title policy and a pro forma policy

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      issued by a title company reasonably satisfactory to the Administrative
      Agent, which shall be in form and substance substantially similar to
      existing title insurance policy for such real property, together with the
      payment of all premiums for the issuance of such title policy;

            (xv) applications for certificates of documentation and such other
      documentation reasonably required by Administrative Agent to evidence
      transfer of title for each U.S. Flag Vessel from Tesoro to the Borrower
      and to evidence the Administrative Agent's Liens thereon;

            (xvi) an opinion of Borrower's insurance broker as to insurance
      coverage for the U.S. Flag Vessels that constitute Mortgaged Assets;

            (xvii) receipt of such landlord consents, tenant estoppels and other
      third-party approvals and consents in connection with the pledge by the
      Borrower of the Mortgaged Assets (other than with respect to the Galveston
      Assets and the Harbor Island Assets), as required by the Administrative
      Agent;

            (xviii) receipt of Phase I environmental study of the Acquired
      Assets with results satisfactory to the Administrative Agent;

            (xix) such other assurances, certificates, documents, consents or
      opinions as the Administrative Agent may require.

      (b) All fees due and payable at the First Amendment Effective Date shall
have been paid, including the fees required by SECTION 6 of this First
Amendment, and the Borrower shall have paid Attorney Costs of the Administrative
Agent to the extent invoiced prior to, or on, the First Amendment Effective
Date.

      SECTION 4. Further Assurances; Agreement of Administrative Agent and
Lenders. (a) In order to induce the Administrative Agent and the Lenders to
enter into this First Amendment, and notwithstanding anything to the contrary
contained in the Credit Agreement, as amended hereby, the Borrower hereby agrees
to deliver, and to cause the other Loan Parties to deliver, to the
Administrative Agent, the following, in each case on or before the later of (x)
the 30th day after the First Amendment Effective Date and (y) December 31, 2003:

            (i) executed counterparts of the Mortgages and Security Agreements
      granting the Administrative Agent a lien on the Acquired Assets located in
      Cameron Parish, Louisiana (other than the Subject Leasehold (defined
      below)) and Jefferson, Brazoria, and Calhoun Counties, Texas (other than
      the water bottom lease, coastal easements, and lease described on SCHEDULE
      4(b) attached hereto (such Acquired Assets are collectively referred to
      herein as the "POST-CLOSING MORTGAGED ASSETS"), in each case subject only
      to Permitted Liens and the title exceptions and qualifications referred to
      in SECTION 4(a)(iv) below, and each of which shall be in form and
      substance satisfactory to the Administrative Agent and shall have been
      duly authorized, executed and delivered by each of the parties thereto;
      provided however, that if the grant of a Lien on any specific Post-Closing
      Mortgaged Asset or any portion thereof is expressly prohibited by, or
      would cause a default under or termination, avoidance or forfeiture of,
      any lease, contract, license or Law to which the MLP, the Borrower, or any
      of their Subsidiaries is a party or is subject, then the Loan Parties
      shall not be required to grant a Lien to the Collateral Agent on such
      Post-Closing Mortgaged Asset or portion thereof (as used herein, "SUBJECT
      LEASEHOLD" shall mean all of the Loan Parties' rights, titles and
      interests in, to and under that certain lease of approximately 17.4328
      acres of land between Stream Family Limited Partnership and Tesoro
      effective March 1, 2003, and the personal property of the Loan Parties
      located thereon);

                                       9
<PAGE>

            (ii) evidence that all recordings or filings of UCC financing
      statements, the Mortgages and such other documents as may be reasonably
      deemed necessary by the Administrative Agent to perfect the rights, titles
      and interests of the Lenders and the Administrative Agent in the
      Post-Closing Mortgaged Assets shall have been made, or arrangements
      satisfactory to the Administrative Agent shall have been made for the
      making of such recordings and filings in the appropriate places or
      offices;

            (iii) opinions dated as of the date of delivery thereof, in form and
      substance reasonably satisfactory to the Administrative Agent, from (A)
      Baker Botts L.L.P., counsel to each Loan Party and the General Partner,
      and (B) local counsel to each Loan Party with respect to each deed of
      trust or mortgage executed by such Loan Party in connection with such
      Post-Closing Mortgaged Assets; and

            (iv) with respect to the Post-Closing Mortgaged Assets that are real
      estate Collateral, (A) a commitment to issue a mortgagee's title policy
      and a pro forma policy issued by a title company satisfactory to the
      Administrative Agent and containing such title exceptions and
      qualifications as are contained in the deeds or other instruments of
      conveyance under which the Loan Parties take title to such real estate
      Collateral in accordance with the Tesoro Asset Purchase Agreement,
      together with the payment of all premiums for the issuance of such title
      policy, (B) if required by the Administrative Agent, a survey (if such
      Mortgaged Assets are located in Texas, such survey shall be a Texas Board
      of Professional Land Surveyors Surveyor's Manual Category 1A Condition II
      Land Title Survey, and, if such Mortgaged Assets are located in Louisiana,
      such survey shall be a Class B Property Boundary Survey meeting the
      minimum surveying standards established by the Louisiana Professional
      Engineering and Land Surveying Board; provided however, that if the
      underwriter of the mortgagee's policies of title insurance requires
      surveys of a different type, the Borrower shall provide surveys meeting
      such requirements), and (C) such other certificates, authorizations,
      estoppels and waivers as shall be requested by the Administrative Agent
      pursuant to SECTION 6.18(b) of the Credit Agreement, in each case in form
      and substance satisfactory to the Administrative Agent; provided, however,
      that it is hereby acknowledged and agreed by the Administrative Agent, the
      Lenders, and the Loan Parties that the Administrative Agent and the
      Lenders shall not require the delivery of, and that the Loan Parties shall
      be under no obligation to deliver, any certificate, landlord consent,
      subordination and non-disturbance agreement, tenant or other estoppel, or
      other third party consent, authorization or waiver in connection with the
      Acquired Assets and the pledge by the Borrower and the other Loan Parties
      thereof, except as set forth in SECTION 4(b) below).

      (b) In order to induce the Administrative Agent and the Lenders to enter
into this First Amendment, the Borrower hereby agrees to use reasonable
commercial efforts to obtain consents from the relevant Governmental Authorities
in the States of Louisiana and Texas with respect to the assignment by Tesoro to
the Borrower under and in accordance with the Tesoro Asset Purchase Agreement of
the water bottom lease and coastal easements described on SCHEDULE 4(b) attached
hereto.

      (c) The Administrative Agent, the Collateral Agent and the Lenders hereby
acknowledge and agree that (i) during the period from the Closing Date to and
including the date hereof the Loan Parties have been in compliance with the
requirements of SECTION 6.18 of the Credit Agreement, and (ii) subject to the
satisfaction of the conditions precedent contained in SECTION 3(a)(v) of this
Amendment, on the date hereof the Loan Parties shall be in compliance with the
requirements of SECTION 6.18 of the Credit Agreement, as amended hereby.

                                       10
<PAGE>

      SECTION 5. Representations and Warranties. In order to induce the
Administrative Agent and the Lenders to enter into this First Amendment, the
Borrower represents and warrants to the Administrative Agent and to each Lender
that:

      (a) This First Amendment, the Credit Agreement as amended hereby and each
Loan Document have been duly authorized, executed and delivered by the Borrower
and the applicable Loan Parties and constitute their legal, valid and binding
obligations enforceable in accordance with their respective terms (subject, as
to the enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium and similar laws affecting creditors' rights generally
and to general principles of equity).

      (b) Except as provided on SCHEDULE 5(b) hereto, the representations and
warranties set forth in ARTICLE V of the Credit Agreement and in the Collateral
Documents are true and correct in all material respects on and as of the First
Amendment Effective Date, after giving effect to this First Amendment and the
Tesoro Acquisition, as if made on and as of the First Amendment Effective Date
except to the extent such representations and warranties relate solely to an
earlier date.

      (c) As of the date hereof, at the time of and after giving effect to this
First Amendment and the Tesoro Acquisition, no Default or Event of Default has
occurred and is continuing.

      (d) Except as provided on SCHEDULE 4(b) hereto, no approval, consent,
exemption, authorization or other action by, or notice to, or filing with, any
Governmental Authority is necessary or required in connection with the execution
and delivery of this First Amendment, the performance by the Borrower or any
Loan Party of its obligations hereunder, or the Tesoro Acquisition. Each of this
First Amendment and the Tesoro Acquisition has been duly authorized by all
necessary corporate, partnership, or limited liability company action. The
execution, delivery and performance of this First Amendment and the documents
and transactions contemplated hereby, and the consummation of the Tesoro
Acquisition does not and will not (a) contravene the terms of the Borrower's or
any other Loan Party's Organization Documents, (b) conflict with or result in
any breach or contravention of, or result in creation of any Lien (other than
Liens in favor of the Administrative Agent) under, any document evidencing any
material Contractual Obligation to which the Borrower or any other Loan Party is
a party or any order, injunction, writ or decree of any Governmental Authority
to which the Borrower or any other Loan Party is subject, or (c) violate any
material provision and Law applicable to any Loan Party.

      (e) The Borrower knows of no reason why the consents from the relevant
Governmental Authorities in the States of Louisiana and Texas with respect to
the assignment by Tesoro to the Borrower under and in accordance with the Tesoro
Asset Purchase Agreement of the water bottom lease and coastal easements
described on SCHEDULE 4(b) hereto will not be obtained in due course by the
Borrower after the First Amendment Effective Date, and the Borrower does not
believe that such consents will contain any condition or requirement the
compliance with which would reasonably be expected to result in a Material
Adverse Effect.

      SECTION 6. Costs. The Borrower agrees to pay on demand reasonable Attorney
Costs of the Administrative Agent and all other costs and expenses of the
Administrative Agent, in connection with the preparation, execution and delivery
of this First Amendment and any other documents executed in connection herewith.

      SECTION 7. Fees. The Borrower shall pay to each Lender on the First
Amendment Effective Date, a fee equal to 0.125% of the amount of each such
Lender's Committed Sum. The foregoing fees shall be paid to the Administrative
Agent, on behalf of each approving Lender.

                                       11
<PAGE>

      SECTION 8. Effect of Amendment. (a) This First Amendment (i) except as
expressly provided herein, shall not be deemed to be a consent to the
modification or waiver of any other term or condition of the Credit Agreement or
of any of the instruments or agreements referred to therein and (ii) shall not
prejudice any right or rights which the Administrative Agent, the Collateral
Agent or the Lenders may now have under or in connection with the Credit
Agreement, as amended by this First Amendment. Except as otherwise expressly
provided by this First Amendment, all of the terms, conditions and provisions of
the Credit Agreement shall remain the same. It is declared and agreed by each of
the parties hereto that the Credit Agreement, as amended hereby, shall continue
in full force and effect, and that this First Amendment and such Credit
Agreement shall be read and construed as one instrument.

      (b) Each of the undersigned Guarantors hereby consents to and accepts the
terms and conditions of this First Amendment and the transactions contemplated
thereby, agrees to be bound by the terms and conditions thereof, and ratifies
and confirms that each Guaranty and each of the other Loan Documents to which it
is a party is, and shall remain, in full force and effect after giving effect to
this First Amendment. The Borrower and each of the other Loan Parties hereby
confirm and agree that all Liens and other security now or hereafter held by the
Collateral Agent for the benefit of the Lenders as security for payment of the
Obligations are the legal, valid and binding obligations of the Borrower and the
Loan Parties, remain in full force and effect, are unimpaired by this First
Amendment, and are hereby ratified and confirmed as security for payment of the
Obligations.

      SECTION 9. Miscellaneous. This First Amendment shall for all purposes be
construed in accordance with and governed by the laws of the State of New York
and applicable federal law. The captions in this First Amendment are for
convenience of reference only and shall not define or limit the provisions
hereof. This First Amendment may be executed in separate counterparts, each of
which when so executed and delivered shall be an original, but all of which
together shall constitute one instrument. In proving this First Amendment, it
shall not be necessary to produce or account for more than one such counterpart.
This First Amendment may be delivered by facsimile transmission of the relevant
signature pages hereof.

      SECTION 10. Entire Agreement. THE CREDIT AGREEMENT (AS AMENDED BY THIS
FIRST AMENDMENT) AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

      SECTION 11. Additional Further Assurances. The parties hereto each agree
to execute from time to time such further documents as may be necessary to
implement the terms of this First Amendment.

                         [SIGNATURES BEGIN ON NEXT PAGE]

                                       12
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
be duly executed and delivered by their proper and duly authorized officers as
of the date and year first above written.

                           MARTIN OPERATING PARTNERSHIP L.P.,
                           a Delaware limited partnership, as Borrower

                           By: MARTIN OPERATING GP LLC,
                               its General Partner

                               By: MARTIN MIDSTREAM PARTNERS L.P.,
                                   its Sole Member

                                   By: MARTIN MIDSTREAM GP LLC,
                                       its General Partner

                                       By: /s/ Ruben S. Martin, III
                                           -------------------------------------
                                           Ruben S. Martin, III
                                           President and Chief Executive Officer

                           MARTIN MIDSTREAM PARTNERS L.P.,
                           a Delaware limited partnership, as a Guarantor

                           By: MARTIN MIDSTREAM GP LLC,
                               its General Partner

                               By: /s/ Ruben S. Martin, III
                                   -------------------------------
                                   Ruben S. Martin, III
                                   President and Chief Executive Officer

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                           MARTIN OPERATING GP LLC,
                           a Delaware limited liability company, as a Guarantor

                           By: MARTIN MIDSTREAM PARTNERS L.P.,
                               its Sole Member

                               By: MARTIN MIDSTREAM GP LLC,
                                   its General Partner

                                   By: /s/ Ruben S. Martin, III
                                       ---------------------------------
                                       Ruben S. Martin, III
                                       President and Chief Executive Officer

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                                   ROYAL BANK OF CANADA, as Administrative Agent
                                   and Collateral Agent

                                   By:     /s/ Ada Pagano
                                           -------------------------------------
                                   Name:   Ada Pagano
                                           -------------------------------------
                                   Title:  Managing Director RBCCM
                                           -------------------------------------

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                                   ROYAL BANK OF CANADA, as a Lender,
                                   as L/C Issuer, and as Swing Line Lender

                                   By:     /s/ Jason York
                                           -------------------------------------
                                   Name:   Jason York
                                           -------------------------------------
                                   Title:  Attorney-In-Fact
                                           -------------------------------------

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                                   COMERICA BANK (successor by merger with
                                   Comerica Bank - Texas), as a Lender

                                   By:     /s/ Paul L. Strange
                                           -------------------------------------
                                   Name:   Paul L. Strange
                                           -------------------------------------
                                   Title:  Senior Vice President
                                           -------------------------------------

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                                 SOUTHWEST BANK OF TEXAS, N.A., as a Lender

                                 By:     /s/ Kenneth R. Batson, III
                                         ---------------------------------------
                                 Name:   Kenneth R. Batson, III
                                         ---------------------------------------
                                 Title:  Assistant Vice President Energy Lending
                                         ---------------------------------------

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                                   WHITNEY NATIONAL BANK, as a Lender

                                   By:     /s/ Robert Raney
                                           -------------------------------------
                                   Name:   Robert Raney
                                           -------------------------------------
                                   Title:  Banking Officer
                                           -------------------------------------

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                                   HIBERNIA NATIONAL BANK, as a Lender

                                   By:     /s/ Gary Culbertson
                                           -------------------------------------
                                   Name:   Gary Culbertson
                                           -------------------------------------
                                   Title:  Vice President
                                           -------------------------------------

        THIS IS A SIGNATURE PAGE TO THE MARTIN OPERATING PARTNERSHIP L.P.
                       FIRST AMENDMENT TO CREDIT AGREEMENT

<PAGE>

                                                                      APPENDIX A

                                  SCHEDULE 2.01

                                   COMMITMENTS

<TABLE>
<CAPTION>
                                                              Revolver Facility

                                                        Acquisition           Working
Lender                           Term Loan Facility     Subfacility           Capital
                                                                            Subfacility

<S>                              <C>                   <C>                 <C>
Royal Bank of Canada               $ 9,722,222.22      $ 6,507,936.51      $ 3,769,841.27

Comerica Bank                      $ 6,250,000.00      $ 7,500,000.00      $ 6,250,000.00

Southwest Bank of Texas, N.A       $ 4,166,666.66      $ 4,166,666.67      $ 4,166,666.67

Whitney National Bank              $ 4,861,111.12      $ 3,968,253.97      $ 3,670,634.91

Hibernia National Bank             $            0      $ 7,857,142.85      $ 7,142,857.15

TOTAL:                             $   25,000,000      $   30,000,000      $   25,000,000

                                                               $   55,000,000
</TABLE>

                                   Appendix A
<PAGE>

                                                                      APPENDIX B

                                  SCHEDULE 5.21

                                     VESSELS

<TABLE>
<CAPTION>
   VESSEL NAME                IDENTIFICATION NUMBER                 FLAG                       OWNER
   -----------                ---------------------                 ----                       -----
<S>                           <C>                                   <C>                      <C>
   Annie Jeanne                       633613                        U.S.                     Borrower
    Anne Blake                        567170                        U.S.                     Borrower
      Brooke                          638713                        U.S.                     Borrower
    Herndon R                         586238                        U.S.                     Borrower
     Jeanie G                         561236                        U.S.                     Borrower
      MF 731                          662943                        U.S.                     Borrower
      MF 732                          662944                        U.S.                     Borrower
       PIC                            589995                        U.S.                     Borrower
     TTT 101                          602061                        U.S.                     Borrower
     TTT 102                          602062                        U.S.                     Borrower
     TTT 104                          633292                        U.S.                     Borrower
     TTT 105                          932209                        U.S.                     Borrower
     TTT 251                          974023                        U.S.                     Borrower
     TTT 252                          974024                        U.S.                     Borrower
     TTT 261                         1053079                        U.S.                     Borrower
     TTT 310                          982537                        U.S.                     Borrower
     TTT 320                         1063123                        U.S.                     Borrower
     TTT 330                         1063035                        U.S.                     Borrower
    Dani Mayes                        634102                        U.S.                     Borrower
  Jo Ann Edwards                      630572                        U.S.                     Borrower
    Joel Smith                        984928                        U.S.                     Borrower
   Mary Edwards                       296384                        U.S.                     Borrower
     MGM 1650                         552444                        U.S.                     Borrower
     MGM 2350                         552443                        U.S.                     Borrower
     MGM 3001                         999818                        U.S.                     Borrower
     MGM 3002                         999817                        U.S.                     Borrower
     MGM 601                         1038570                        U.S.                     Borrower
     MGM 602                         1038569                        U.S.                     Borrower
      Orion                           251737                        U.S.                     Borrower
     Poseidon                         552864                        U.S.                     Borrower
Martin Challenger                    1051672                        U.S.                     Borrower
 Martin Endeavor                      523487                        U.S.                     Borrower
  Martin Spirit                       653760                        U.S.                     Borrower
  Martin Voyager                      523750                        U.S.                     Borrower
     MGM 401                          563916                        U.S.                     Borrower
     MGM 402                          563917                        U.S.                     Borrower
     MGM 403                          563919                        U.S.                     Borrower
     MGM 501                         1035344                        U.S.                     Borrower
     MGM 502                         1035345                        U.S.                     Borrower
  Martin Admiral                      523032                        U.S.                     Borrower
  Martin Captain                      557601                        U.S.                     Borrower
 Martin Commander                     530608                        U.S.                     Borrower
</TABLE>

                                   Appendix B
<PAGE>

<TABLE>
<CAPTION>
   VESSEL NAME                IDENTIFICATION NUMBER                 FLAG                       OWNER
   -----------                ---------------------                 ----                       -----
<S>                           <C>                                   <C>                      <C>
 Martin Commodore                     523751                        U.S.                     Borrower
     MMLP 110                         550340                        U.S.                     Borrower
     MMLP 112                         176247                        U.S.                     Borrower
     MMLP 114                         633584                        U.S.                     Borrower
     MMLP 115                         517903                        U.S.                     Borrower
     MMLP 116                         512345                        U.S.                     Borrower
     MMLP 117                        1061638                        U.S.                     Borrower
     MMLP 118                         976562                        U.S.                     Borrower
     MMLP 119                         642815                        U.S.                     Borrower
     MMLP 219                         506316                        U.S.                     Borrower
     MMLP 220                         506317                        U.S.                     Borrower
     MMLP 221                         506139                        U.S.                     Borrower
     MMLP 222                         514372                        U.S.                     Borrower
 Martin Navigator                     632798                        U.S.                     Borrower
</TABLE>

                                   Appendix B
<PAGE>

                                                             SCHEDULE 3(A)(V)(D)

                                  CROSS ASSETS

The real property described below and the equipment, inventory, and fixtures
located upon the real property described below or upon the adjacent banks, bed,
or waters of the Ouachita River.

Real Property

A part of the Northeast Quarter of Section 27, Township 15 South, Range 15 West,
Ouachita County, Arkansas, being more particularly described as follows:

Commencing from the Northeast Corner of the Northeast Quarter of the Northeast
Quarter of said Section 27, thence along the North line of said Forty, North 89
degrees 57 minutes 50 seconds West for a distance of 660.29 feet to a Found I.P.
for a point of beginning, thence South 01 degrees 15 minutes 00 seconds West for
a distance of 429.00 feet to a Found I.P., thence North 89 degrees 57 minutes 50
seconds West for a distance of 747.00 feet, thence North 01 degrees 23 minutes
05 seconds East for a distance of 162.46 feet, thence South 89 degrees 57
minutes 50 seconds East for a distance of 85.99 feet to a point on the shore
line of the Ouachita River, thence along said shore line, North 64 degrees 59
minutes 56 seconds East for a distance of 59.29 feet, thence along said shore
line, North 28 degrees 51 minutes 06 seconds East for a distance of 113.79 feet,
thence along said shore line, North 34 degrees 19 minutes 51 seconds East for a
distance of 171.51 feet to the North line of said forty, thence along the North
line of said Forty, South 89 degrees 57 minutes 50 seconds East for a distance
of 461.07 feet to the point of beginning. Said property contains 6.13 acres more
or less.

Easements and adjacent purchase rights granted in Warranty Deeds recorded in
Book 611, Pages 437, 443 and 449.

                               Schedule 3(a)(v)(D)
<PAGE>

                                                             SCHEDULE 3(A)(V)(E)

                                  CENAC VESSELS

<TABLE>
<CAPTION>
  VESSEL NAME                IDENTIFICATION NUMBER                 FLAG                       OWNER
  -----------                ---------------------                 ----                       -----
<S>                          <C>                                   <C>                      <C>
    MMLP 220                         506317                        U.S.                     Borrower
    MMLP 219                         506316                        U.S.                     Borrower
Martin Navigator                     632798                        U.S.                     Borrower
</TABLE>

                               Schedule 3(a)(v)(E)
<PAGE>

                                                                   SCHEDULE 4(B)

                         AUTHORIZATIONS, CONSENTS, ETC.

Water Bottom Leases and Coastal Easements:

Consent of State of Louisiana, as lessor, is required under Water Bottom Lease
dated effective January 31, 2002 between State of Louisiana and Tesoro Marine
Services, Inc. (Cameron East Water Bottom Lease)

Consent of Texas General Land Office, as grantor, is required under Commercial
Coastal Easement No. LC940024 between David Dewhurst, Commissioner, Texas
General Land Office, and Tesoro Marine Services, Inc. dated effective January
31, 1999 to January 30, 2004 (Harbor Island Coastal Easement)

Consent of Texas School Land Board, as grantor, is required under Coastal
Easement No. 89-061 between Texas School Land Board, as grantor, and America
Petrofina Pipe Line Company dated effective January 9, 1989 (Harbor Island
Coastal Easement)

Consent of Texas General Land Office, as grantor, is required under Commercial
Coastal Easement No. LC970041 between Jerry E. Patterson, Commissioner, Texas
General Land Office, and Tesoro Coastwide Services Co. dated effective April 30,
2003 (Sabine Pass Coastal Easement)

Other Leases:

Consent of Nueces County, Texas, as lessor, is required under Lease Agreement
between Nueces County, Texas, as lessor, and Harbor Island Terminal, Inc. dated
effective June 20, 1985 (Harbor Island)

                                  Schedule 4(b)
<PAGE>

                                                                   SCHEDULE 5(B)

                                   DISCLOSURES

None.

                                  Schedule 5(b)<PAGE>
                                                                    Exhibit 10.1

                        LASALLE BANK NATIONAL ASSOCIATION
                            135 SOUTH LASALLE STREET
                                CHICAGO, IL 60603

                                 March 23, 2004

Whitehall Jewellers, Inc.
155 North Wacker Drive, Suite 500
Chicago, Illinois  60606
Attention:  John Desjardins

         Re:      Whitehall Jewellers, Inc. Credit Agreement

Dear John:

         Reference is hereby made to that certain Second Amended and Restated
Revolving Credit and Gold Consignment Agreement dated as of July 29, 2003 (the
"Credit Agreement") by and among Whitehall Jewellers, Inc. a Delaware
corporation (the "Borrower"), LaSalle Bank National Association, as
administrative agent for the banks ("Banks") party thereto (in such capacity,
"Administrative Agent"), the Banks, ABN AMRO Bank N.V., as syndication agent,
and JP Morgan Chase Bank, as documentation agent. Terms not otherwise defined
herein shall have the meanings assigned to them in the Credit Agreement.

         Reference is also hereby made to (i) that certain pending lawsuit
originally filed August 13, 2003 in which the Borrower has been named as one of
the 14 defendants in the United States District Court for the Southern District
of New York, styled Capital Factors, Inc. v. Cosmopolitan Gem Corp., et. al.,
No. 03 Civ. 6097 now pending in New York State Supreme Court, Commercial
Division and consolidated with a lawsuit filed December 2, 2003 and the
interpleader action filed by the Company in connection therewith (the "Capital
Factors Lawsuit"), (ii) that certain inquiry initiated by the Securities and
Exchange Commission into the matters involving the Company that are the subject
of the Capital Factors Lawsuit (the "SEC Inquiry") and (iii) that certain
criminal investigation initiated by the office of the United States Attorney for
the Eastern District of New York into the matters alleged in the Capital Factors
Lawsuit of which the Borrower is one of the subjects of such investigation (the
"US Attorney Investigation").

         This letter serves as notice to Borrower that as of the date hereof,
based on the facts and circumstances set forth in the initial complaint filed by
Capital Factors, Inc. on August 13, 2003 and a discussion of the facts,
circumstances and merits of the Capital Factors Lawsuit with the Borrower and
its counsel, the Agent and the Banks hereby acknowledge and agree that as of the
date hereof, the Capital Factors Lawsuit has not resulted in a breach of Section
7.7 of the Credit Agreement. Further, as of the date hereof, based on a
discussion of the facts and circumstances of the SEC Inquiry and the US Attorney
Investigation with the Borrower and its counsel and the information received to
date from the Borrower and its counsel, the Agent and the Banks, neither the SEC
Inquiry nor the US Attorney Investigation (i) have resulted in a breach of
Section 7.7 of

<PAGE>

the Credit Agreement or (ii) have resulted in the violation of any statute, rule
or regulation in a breach of Section 7.9 of the Credit Agreement.

         In addition, the Agent and the Banks hereby acknowledge and agree that
neither the Capital Factors Lawsuit, the SEC Inquiry, nor the US Attorney
Investigation will give rise to a Default or Event of Default so long as (a) the
resolution of such matters does not involve the payment by the Borrower of
Restitution (as defined below) in an amount which is more than Fifteen Million
Dollars ($15,000,000) (the "Settlement Basket") and (b) the Borrower's
involvement in such matters does not result in the indictment of the Borrower or
any of its current officers, directors or employees with principal financial or
accounting responsibilities (excluding Jon Browne). It is understood and agreed
that (i) any settlement involving the payment of Restitution above the
Settlement Basket will constitute an Event of Default or (ii) any indictment of
the Borrower or any of its current officers, directors or employees with
principal financial or accounting responsibilities (excluding Jon Browne) may,
at the discretion of the Required Banks, constitute an Event of Default
regardless of the dollar amount of any fine, penalty or forfeiture.

         For purposes herein, "Restitution" is defined as any restitution paid
by the Borrower (whether cash or non-cash or current or deferred consideration)
arising from a civil settlement or award and/or criminal penalties paid or
payable in connection with the Capital Factors Lawsuit, the SEC Investigation
and/or the US Attorney Investigation and any other actions or proceedings
directly related thereto; excluding, however, (i) amounts paid by the Company
for consignment inventory held on behalf of the parties involved in the Capital
Factors Lawsuit and (ii) amounts already accrued on the books of the Borrower
for the purchase of merchandise from the parties involved in the Capital Factors
Lawsuit and (iii) the value of any consigned inventory returned to parties
involved in the Capital Factors Lawsuit.

         The Borrower hereby agrees to continue to (i) provide the Agent with
periodic written and oral updates as to the status of the Capital Factors
Lawsuit, the SEC Inquiry and the US Attorney Investigation as may be requested
from time to time by Agent and (ii) provide the Agent with copies of all written
inquires and material pleadings, rulings and determinations made in such actions
involving the Borrower, including, but not limited to, requests for information,
motions, complaints, responses to discovery, responses to requests, answers,
orders and rulings, as promptly as practicable upon the submission, the receipt
or the filing thereof, as applicable, by the Borrower or its counsel.

         The Borrower hereby acknowledges and agrees that (i) the agreement
contained in this letter agreement is granted by the Agent and the Banks only
for the limited purpose set forth herein and should not be deemed a waiver or
limitation of any claims, demands, rights or remedies of the Agent and the Banks
under the Credit Agreement and all of the Loan Documents, (ii) each term and
provision of the Credit Agreement continues in full force and effect and (iii)
the disclosure by the Borrower to the Agent of the existence of the Capital
Factors Lawsuit, the SEC Inquiry and the US Attorney Investigation does not
fulfill any of the ongoing disclosure obligations of the Borrower pursuant to
this letter agreement and the Credit Agreement. This agreement (i) supercedes
that certain Letter Agreement dated as of October 29, 2003 among the Agent, the
Banks and the Borrower which is hereby rescinded and (ii) is granted only for
the specific instance specified herein and in no manner creates a course of
dealing or

                                       2
<PAGE>
otherwise impairs the future ability of the Banks or the Agent to declare an
Event of Default under or otherwise enforce the terms of the Credit Agreement.

         None of the terms and conditions of this letter agreement may be
changed, modified, waived, or canceled, except by writing signed by all the
parties hereto, specifying such change, modification, waiver, or cancellation.
Except as otherwise specifically set forth herein, the Credit Agreement and all
the Loan Documents are hereby confirmed and ratified in all respects and shall
remain in full force and effect according to their respective terms.

         This letter agreement shall not suspend, waive or affect any
representation, warranty, covenant or condition contained in the Credit
Agreement. All provisions, terms and conditions of the Credit Agreement remain
in full force and effect.

                            [SIGNATURE PAGE FOLLOWS]

                                       3
<PAGE>

                                            Very truly yours,

Acknowledged and Agreed to as of
this 23rd day of March, 2004             LASALLE BANK NATIONAL ASSOCIATION,
                                         for itself and as Agent for the Banks
WHITEHALL JEWELLERS, INC.

By: /s/ John R. Desjardins               By: /s/ Bernardo Lacayo
    -------------------------------          -----------------------------------
Name: John R. Desjardins                 Name: Bernardo Lacayo
      -----------------------------            ---------------------------------
Title: Executive Vice President and      Title: First Vice President
       ----------------------------             --------------------------------
       Chief Financial Officer
       ----------------------------
                                         JPMORGAN CHASE BANK, individually and
                                         as Documentation Agent

                                         By: /s/ Michael Stevenson
                                             -----------------------------------
                                         Name: Michael Stevenson
                                               ---------------------------------
                                         Title: Vice President
                                                --------------------------------

                                         ABN AMRO BANK N.V., individually and as
                                         Syndication Agent

                                         By: /s/ Jeff Sarfaty
                                             -----------------------------------
                                         Name: Jeff Sarfaty
                                               ---------------------------------
                                         Title: Vice President
                                                --------------------------------

                                         By: /s/ Frederick G. Jennings
                                             -----------------------------------
                                         Name: Frederick G. Jennings
                                               ---------------------------------
                                         Title: Vice President
                                                --------------------------------

                                         FLEET CAPITAL CORPORATION, as a Bank

                                         By: /s/ Brian Conole
                                             -----------------------------------
                                         Name: Brian Conole
                                               ---------------------------------
                                         Title: Senior Vice President
                                                --------------------------------

                                         SOVEREIGN BANK, as a Bank

                                         By: /s/ Irene Ogarek
                                             -----------------------------------
                                         Name: Irene Ogarek
                                               ---------------------------------
                                         Title: Vice President
                                                --------------------------------

                                       4

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