Document:

<PAGE>
                                                                   Exhibit 10.53

                                     BELIZE

                       THE REGISTERED LAND ORDINANCE, 1977
                              CERTIFICATE OF LEASE
                           Chapter 157, Laws of Belize

REGISTERED SECTION                          BLOCK                      PARCEL
SAN PEDRO                                     7                        1870/1
------------------                          -----                      ------
Area: 1.186 Acres

LESSOR            Government of Belize
RENT              $1.00 p.a.
TERM              18 years          27/4/93

THIS IS TO CERTIFY THAT BELIZE WATER LTD.

of                     #37 Regent Street, Belize City, Belize District

Is now registered as the proprietor of the leasehold interest above referred to,
subject to the agreements and other matters contained in the registered lease,
to the entries in the register relating to the lease and to such of the
overriding interests set forth in section 31 of the Registered Land Ord. 1977 as
may for the time being subsist and affect the land comprised in the lease.

At the date thereof the following entries appear in the register relating to the
lease:

PART A- PROPERTY SECTION (EASEMENTS, ETC.)

PART B- PROPRIETORSHIP SECTION (INHIBITIONS, CAUTIONS AND RESTRICTIONS)
Not to transfer the land, lease or charge without written consent of Lessor.
Hereinafter subject to the lease conditions attached.

PART C- INCUMBRANCES SECTION (LEASES, CHARGES,ETC.)

GIVEN UNDER MY HAND AND THE SEAL OF THE LAND REGISTRY
THIS 18th DAY OF July, 2001

                                                   /s/ M. Petzold
                                         ---------------------------------------
                                                 REGISTRAR OF LANDS<PAGE>
                       FIRST AMENDMENT TO CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered
into as of August 1, 2001 (the "Amendment Date"), among INDUSTRIAL DISTRIBUTION
GROUP, INC., a Delaware corporation (the "Borrower"), those Subsidiaries of the
Borrower identified on the signature pages hereto as "Affiliate Guarantors";
Borrower and the Affiliate Guarantors are sometimes collectively referred to as
the "Obligors" or individually referred to as an "Obligor"); FIRST UNION
NATIONAL BANK, a national bank ("FUNB," "First Union" or the "Bank"), as a
"Lender," together with each of the other financial institutions identified as
"Lenders" on the signature pages hereto (together with each of their successors
and assigns, referred to individually as a "Lender" and, collectively, as the
"Lenders"); First Union, acting as agent for the Lenders (including the
Swingline Lender) in the manner and to the extent described in Article XIII of
the Credit Agreement defined below (First Union, when acting in such capacity,
herein called the "Administrative Agent"); FLEET CAPITAL CORPORATION ("Fleet"),
a Rhode Island corporation, as a Lender and as Documentation Agent pursuant to
the Credit Agreement; and BANK OF AMERICA, N.A. ("Bank of America"), a national
bank, as a Lender and as Syndication Agent pursuant to the Credit Agreement; for
the purpose of amending that certain Credit Agreement, dated as of December 22,
2000, among the aforesaid parties (as amended hereby, the "Credit Agreement") in
the following particulars. Capitalized terms used in this Amendment, but not
otherwise expressly defined herein, shall have the meanings given to such terms
in the Credit Agreement.

                                R E C I T A L S:

         WHEREAS, a certain Event of Default has occurred and is continuing on
the Amendment Date, namely, the Fixed Charge Coverage Ratio, set forth in
Section 8.1 of the Credit Agreement, was less than 1.10:1 as of the fiscal
quarter ended June 30, 2001 which, under Section 11.1(c) of the Credit
Agreement, is an Event of Default (the "Existing Default"); and

         WHEREAS, Borrower has requested that Lenders waive the Existing Default
and forbear from exercising any of the rights and remedies accorded to Lenders
under the Credit Agreement after the occurrence and during the continuance of
the Existing Default; and

         WHEREAS, Lenders have considered, and are willing to accommodate,
Borrower's request, subject, however, to certain amendments and modifications
being incorporated into the Credit Agreement, as more particularly set forth
below; and

         WHEREAS, all Affiliate Guarantors will obtain direct and material
economic benefits from such waiver being given and such amendments being made,
and have agreed to join with Borrower in executing this Amendment in order to
confirm their continuing credit support to Borrower in respect thereof;

         NOW, THEREFORE, in consideration of the foregoing recitals and the
agreements, provisions and covenants herein contained, the receipt and
sufficiency of which are hereby acknowledged, the Obligors, together with
Lenders and the Administrative Agent, the

<PAGE>
Documentation Agent and the Syndication Agent, each intending to be legally
bound, hereby acknowledge, covenant and agree as follows:

         1.       Pricing Matrix Change. The existing pricing matrix, set forth
in the definition of "Applicable Percentage" in Section 1.1 of the Credit
Agreement, is deleted in its entirety, and the following revised pricing matrix
is substituted in its place:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
 Tier Levels      Leverage Ratio       Applicable Percentage for     Applicable Percentage for      Applicable Percentage
                                            Eurodollar Loans              Base Rate Loans            for Unused Line Fee
----------------------------------------------------------------------------------------------------------------------------
<S>            <C>                    <C>                           <C>                             <C>
1              > 4.5 to 1.0                      3.00%                         1.75%                        .375%
               -
----------------------------------------------------------------------------------------------------------------------------
2              > 4.0 to 1.0 but <                2.75%                         1.50%                        .375%
               -
               4.5 to 1.0
----------------------------------------------------------------------------------------------------------------------------
3              > 3.5 to 1.0 but <                2.50%                         1.25%                        .375%
               -
               4.0 to 1.0
----------------------------------------------------------------------------------------------------------------------------
4              > 3.0 to 1.0 but <                2.25%                         1.00%                        .25%
               -
               3.5 to 1.0
----------------------------------------------------------------------------------------------------------------------------
5              < 3.0 to 1.0                      2.00%                          .75%                        .25%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

         2.       Eligible Inventory Change. There shall be excluded from
Eligible Inventory any Boring-Smith mobile inventory, which is maintained on and
sold from trucks.

         3.       Cash Control. Existing Section 2.3(b)(ii)(C) of the Credit
Agreement shall be deleted in its entirety, and the following revised Section
2.3(b)(ii)(C) shall be substituted in its place:

                  (C)      Notwithstanding any terms of subsection (B) above to
                  the contrary, so long as (i) no Event of Default or Default
                  exists, and (ii) Average Excess Availability exceeds
                  Twenty-Two Million Five Hundred Thousand Dollars
                  ($22,500,000), all or portions of any funds deposited into the
                  Lockbox Accounts on any Business Day may, at the Borrower's
                  option, be transferred to an account of the Borrower other
                  than the First Union Account, thereafter to be used by the
                  Borrower in a manner consistent with the terms of this Credit
                  Agreement. Should the Administrative Agent at any time
                  determine that either of the foregoing conditions is not being
                  met, then, the Administrative Agent may, or at the direction
                  of the Required Lenders, the Administrative Agent shall,
                  notify the Borrower and the Lockbox Banks accordingly and the
                  special permission granted herein to the Borrower shall cease
                  to be effective until such time as the Administrative Agent,
                  by subsequent notice to the Borrower and the Lockbox Banks,
                  determine that each of the foregoing conditions is being met
                  and that the special permission granted herein to the Borrower
                  may be restored.

                                       2
<PAGE>
         4.       Borrowing Base Certificate Change. Existing Section 7.1(e) of
the Credit Agreement is deleted in its entirety, and the following revised
Section 6.3(e) is substituted in its place:

                  (e)      biweekly, by not later than 12:00 Noon on the second
         Business Day of every other calendar week, a certificate, to be
         substantially in the form of Exhibit T (the "Borrowing Base
         Certificate"), duly completed and certified by an Authorized Officer of
         the Borrower, detailing the Obligors' Eligible Accounts Receivable as
         of the most recent date of determination (which shall be determined not
         less frequently than monthly) and Eligible Inventory as of each Friday
         of the immediately preceding week; provided, however, that if the Fixed
         Charge Coverage Ratio as of the end of any Fiscal Quarter equals or
         exceeds 1.10:1, then, the Borrower may defer the delivery of the
         Borrowing Base Certificates until the end of each calendar month, with
         delivery thereof to be completed within thirty (30) days after the end
         of such month, for so long as the Fixed Charge Coverage Ratio is
         maintained in at least the amount specified above; and, provided,
         further, that if (i) any Event of Default or Default exists, or (ii)
         Average Excess Availability is at any time less than Twenty-Two Million
         Five Hundred Thousand Dollars ($22,500,000), the Administrative Agent
         may, or at the direction of the Required Lenders, the Administrative
         Agent shall require the reporting of the Borrowing Base be changed from
         biweekly to weekly, in which event such report shall be due not later
         than the 12:00 Noon on the second Business Day of each week, for the
         preceding calendar week. In addition, on the thirtieth (30th) day of
         each month (or if such day is not a Business Day, then on the next
         succeeding Business Day), the Borrower shall furnish a written report
         to the Lenders setting forth (i) the accounts receivable aged trial
         balance at the immediately preceding month end for each account debtor,
         aged by due date, which aging reports shall indicate which Accounts are
         current, up to 30, 30-to-60 and over 60 days past due and shall list
         the names and addresses of all applicable account debtors, (ii) a
         monthly accounts payable aging with such aging to be in form
         satisfactory to the Administrative Agent, (iii) a schedule of Inventory
         owned by each Obligor by location and category, in summary form,
         together with, on at least a quarterly basis, a detailed report in
         respect thereof, and (iv) a monthly report on the addition of any new
         locations of Inventory (including ISA Sites) and the entry into any new
         ISA. The Administrative Agent may, but shall not be required to, rely
         on each Borrowing Base Certificate delivered hereunder as accurately
         setting forth the available Borrowing Base for all purposes of this
         Credit Agreement until such time as a new Borrowing Base Certificate is
         delivered to the Administrative Agent in accordance herewith; Borrowing
         Base Certificates may be prepared and submitted to the Lenders on a
         more frequent basis than weekly (or, in the Administrative Agent's
         discretion, less frequently, but in no case less than monthly),
         provided, however, that such certificate complies with the requirements
         set forth elsewhere herein;

                                       3
<PAGE>

         5.       Fixed Charge Coverage Ratio Change. Existing Section 8.1 of
the Credit Agreement (Fixed Charge Coverage Ratio) is deleted in its entirety,
and the following revised Section 8.1 is substituted in its place:

                  8.1      Fixed Charge Coverage Ratio. The Borrower shall
         maintain a Fixed Charge Coverage Ratio of not less than: (i) 1.10:1, as
         of March 31, 2001; (ii) .90:1, as of June 30, 2001; (iii) .85:1, as of
         September 30, 2001; (iv) .90:1, as of December 31, 2001; (v) 1.00:1, as
         of March 31, 2002; and (vi) 1.10:1, as of the last day of each fiscal
         quarter of the Borrower ending subsequent to March 31, 2002.

         6.       Certain Representations And Warranties. Each Obligor
represents and warrants to the Lenders as inducements to their entry into this
Amendment that: (a) it has the power and authority to enter into, deliver and to
perform this Amendment and any Credit Documents to be executed and delivered in
connection herewith (herein, "Amendment Documents"), and to incur any
obligations provided for in this Amendment and any Amendment Documents, all of
which have been duly authorized and approved in accordance with its corporate
documents; (b) it has obtained all consents or approvals from any Person
necessary to permit it to enter into and perform under the Amendment Documents
without its being in violation of any material agreements with such Person; (c)
this Amendment, together with all other Amendment Documents, shall constitute,
when executed, its valid and legally binding obligations in accordance with
their respective terms; (d) except with respect to events or circumstances
occurring subsequent to the date thereof and known to the Lenders, all
representations and warranties made by it in the Credit Agreement remain true
and correct in all material respects as of the date hereof, with the same force
and effect as if all such representations and warranties were fully set forth
herein (except to the extent that any such representations or warranties refer
to a specific date or period); (e) its obligations under the Credit Agreement
and the other Credit Documents remain valid and enforceable obligations, and the
execution and delivery of the Amendment and the other Amendment Documents shall
not be construed as a novation of the Credit Agreement or any of the other
Credit Documents; (f) as of the Amendment Date, it has no knowledge of any
offsets or defenses existing in its favor in respect of the payment of any of
the Obligations; and (g) as of the Amendment Date, after giving effect to this
Amendment, it has no knowledge that any Default or Event of Default exists.

         7.       Existing Default. Lenders hereby waive the Existing Default
and agree to exercise no right or remedy in respect thereof hereafter; provided,
however, that this waiver (i) shall be limited to the Existing Default only and
to no other Event of Default (known or unknown); and (ii) shall not be construed
to suggest or imply that Lenders have waived, or will waive, any other similar
or dissimilar Event of Default hereafter.

         8.       Amendment Fee. Upon execution and delivery by Lenders of this
Amendment on the Amendment Date, the Lenders shall have fully earned a
non-refundable amendment fee equal in amount to Two Hundred Fifty Thousand
Dollars ($250,000), to be shared pro rata among them, which shall be due and
payable, in installments, as follows (if payment thereof is not sooner
accelerated in conjunction with any acceleration of the Obligations pursuant to
the terms of Credit Agreement): (i) One Hundred Thousand Dollars ($100,000),
which shall be due and payable on October 1, 2001, (ii) One Hundred Thousand
Dollars ($100,000), which shall be due

                                       4
<PAGE>
and payable on January 1, 2002, and (iii) Fifty Thousand Dollars ($50,000),
which shall be due and payable on April 1, 2002; provided, however, that,
notwithstanding the foregoing, if the Fixed Charge Coverage Ratio, computed as
of the fiscal quarter of the Borrower ending December 31, 2001, is at least
1.00:1, and no Event of Default then exists, the final installment of the
amendment fee otherwise due and payable on April 1, 2002, shall be waived.

         9.       Miscellaneous.

         (a)      Reference to Agreement and Note. This Amendment shall become
effective upon its execution by all parties hereto and, at such time, its
effective date shall be the date of this Amendment. Upon the effectiveness of
this Amendment, each reference in the Credit Agreement to "this Agreement" and
each reference in the other Credit Documents to the Loan Agreement, shall mean
and be a reference to the Credit Agreement as amended hereby.

         (b)      Effect on Credit Documents. Except as specifically amended
above, the Credit Agreement and all other Credit Documents shall remain in full
force and effect and are hereby ratified and confirmed.

         (c)      No Waiver. The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power, or remedy of the
Agent or Lenders under any of the Credit Documents, nor constitute a waiver of
any provision of any of the Credit Documents.

         (d)      Costs and Expenses. The Borrower agrees to pay on demand all
reasonable costs and expenses of the Administrative Agent in connection with the
preparation, reproduction, execution, and delivery of this Amendment and the
other instruments and documents to be delivered hereunder, including the
reasonable fees and out-of-pocket expenses of counsel for the Agent with respect
hereto. All such fees and charges, if not paid promptly when due, may be charged
directly as Revolving Loans.

         (e)      No Novation. Nothing contained herein is intended, or shall be
construed, to constitute a novation of the Credit Agreement or any Credit
Document.

         (f)      Governing Law. This Amendment shall be governed by and
construed in accordance with the laws of the State of Georgia, without giving
effect to conflict of law provisions.

         (g)      Credit Document. This Amendment constitutes a Credit Document.

                                       5
<PAGE>

         IN WITNESS WHEREOF the parties hereto have caused this Amendment to be
executed under seal and delivered by their proper and duly authorized officers
as of the date set forth above.

                             BORROWER:

                             INDUSTRIAL DISTRIBUTION GROUP, INC. (SEAL)

                             By:
                                ----------------------------------------------
                                  Jack P. Healey, Senior Vice President

                                       6
<PAGE>

                                   AFFILIATED GUARANTORS:
                                   ---------------------

                                   IDG USA, LLC                        (SEAL)

                                   By:
                                      -----------------------------------------
                                        Jack P. Healey,
                                        Secretary

                                       7
<PAGE>

                                     BUFORD BROS., INC.                (SEAL)

                                     By:
                                        ---------------------------------------
                                          Jack P. Healey, Secretary

                                       8
<PAGE>
                                         CARDINAL MACHINERY, INC.        (SEAL)

                                         By:
                                            -----------------------------------
                                              Jack P. Healey, Secretary

                                       9
<PAGE>

                                         E.C. BLACKSTONE COMPANY         (SEAL)

                                         By:
                                            -----------------------------------
                                              Jack P. Healey, Secretary

                                       10

<PAGE>
                                         IDG-MEXICO, INC.               (SEAL)

                                         By:
                                            -----------------------------------
                                              Jack P. Healey, Secretary

                                       11

<PAGE>

                                         THE NEW ENGLAND GROUP INDUSTRIAL
                                         DISTRIBUTORS, INC.  (SEAL)

                                         By:
                                            -----------------------------------
                                              Jack P. Healey, Secretary

                                       12

<PAGE>
                                         ADMINISTRATIVE AGENT AND LENDER:

                                         FIRST UNION NATIONAL BANK,      (SEAL)
                                         as Administrative Agent and as a Lender

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

                                       13
<PAGE>

                                         OTHER LENDERS:

                                         FLEET CAPITAL CORPORATION, (SEAL)
                                         as Documentation Agent and as a Lender

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

                                       14
<PAGE>
                                         BANK OF AMERICA, N.A.,         (SEAL)
                                         as Syndication Agent and as a Lender

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

                                       15
<PAGE>

                                         PNC BANK, NATIONAL ASSOCIATION,  (SEAL)
                                         as a Lender

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

                                       16

<PAGE>
                                         IBJ WHITEHALL BUSINESS CREDIT   (SEAL)
                                         CORPORATION, as a Lender

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

                                       17

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