Document:

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                                                                    EXHIBIT 10.1

                                  May 2, 2000

Sepco Industries, Inc.
Bayou Pumps, Inc.
American MRO, Inc.
7272 Pinemont
Houston, Texas 77040
Attention: Chief Financial Officer

     Re:  Second Amended and Restated Loan and Security Agreement with Fleet
          Capital Corporation -- Application of Proceeds from Sale of Brittmoore
          Property and LaBranch Property -- Adjustment of Reserves and Term Loan
          Amortization

Gentlemen:

     Reference is hereby made to that certain Second Amended and Restated Loan
and Security Agreement, dated as of April 1, 1994, executed by Sepco Industries,
Inc. ("Sepco") and Barclays Business Credit, Inc. (as amended from time to time,
the "Loan Agreement"). Unless otherwise indicated, all terms used herein shall
have the same meanings as in the Loan Agreement. Sepco, Bayou Pumps, Inc.
("Bayou"), and American MRO, Inc. ("American") (Sepco, Bayou and American are
hereinafter collectively referred to as the "Borrower") and Fleet Capital
Corporation (successor-in-interest to Barclays Business Credit, Inc. and being
hereinafter referred to as the "Lender") are the present parties to the Loan
Agreement.

     Lender and Borrower agree as follows:

     1)  Sepco sold on March 15, 2000 the Brittmoore, Houston, Texas real
property (the "Brittmoore Property"), $1,000,594.80 of the proceeds from the
sale of the Brittmoore Property was paid by Sepco to Lender and applied to the
Acquisition Term Loan (the "Brittmoore Property Proceeds").

     2)  Sepco sold in April of 2000 the LaBranch, Houston, Texas real property
(the "LaBranch Property"). The net proceeds from the sale of the LaBranch
Property (the "LaBranch Property Proceeds") were applied to the
Obligations in the following order:

          a)  The amount of the LaBranch Property Proceeds necessary so that
when combined with the Brittmoore Property Proceeds the aggregate amount equaled
$1,500,000 was applied to the Acquisition Term Loan; and

          b)  the remaining amount of the LaBranch Property Proceeds was applied
to the Revolving Credit Loans.
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May 2, 2000
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     3)  Effective upon the closing of the sale of the LaBranch Property, a
$600,000 reserve was established by Lender against otherwise available
Revolving Credit Loans to account for the anticipated taxes to be paid by Sepco
in connection with the sale of the Brittmoore Property and the LaBranch
Property (the "Tax Reserve"). The Tax Reserve shall be eliminated at such time
that Borrower produces evidence satisfactory to Lender that Sepco has paid all
taxes to be paid by Sepco in connection with the sale of the Brittmoore
Property and the LaBranch Property.

     4)  Provided that (i) the David Little Loan has been restructured in a
manner and pursuant to executed documentation in form and substance
satisfactory to Lender, in its sole discretion, and (ii) no Default or Event of
Default has occurred and is continuing, Borrower and Lender agree, beginning
with the monthly principal amortization payment due on the Term Loan and the
Acquisition Term Loan on June 1, 2000, to decrease the aggregate monthly
principal amortization payments on the Term Loan and the Acquisition Term Loan
to the aggregate amount of $131,000 and to execute such documentation as shall
be required by Lender and to effectuate such a reduction in the monthly
principal amortization on the Acquisition Term Loan and the Term Loan, such
documentation to be in form and substance satisfactory to Borrower and Lender.

     The Borrower and Lender hereby further agree that the provisions of this
letter (i) shall not constitute a waiver of any past, present or future
violation or violations of any provision of the Loan Agreement or any of the
Other Agreements, and (ii) shall not directly or indirectly in any way
whatsoever either: (a) impair, prejudice or otherwise adversely affect Lender's
right at any time to exercise any right, privilege, or remedy in connection
with the Loan Agreement, any Other Agreement, or any other contract or
instrument, or (b) amend or alter any provision of the Loan Agreement, any
Other Agreement, or any other contract or instrument, or (c) constitute any
course of dealing or other basis for altering any obligation of Borrower or
any right, privilege, or remedy of Lender under the Loan Agreement, any Other
Agreement, or any other contract or instrument.

     Except as expressly set forth herein, all of the other terms, provisions
and conditions of the Loan Agreement and the Other Agreements shall remain and
continue in full force and effect.

     Lender reserves all of its rights, privileges and remedies under the Loan
Agreement, each Other Agreement and any other contracts or instruments executed
by Borrower and/or for the benefit of Lender. In order to induce Lender to
execute this letter, Borrower accepts and agrees to each provision of this
letter.

     Notwithstanding any provision of this letter to the contrary, this letter
shall not be directly or indirectly effective against Lender for any purpose
unless and until Lender receives a copy of this letter which has been duly
signed by the Borrower.
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May 2, 2000
Page 3

                                                  Yours very truly,

                                                  FLEET CAPITAL CORPORATION

                                                  By:    /s/ H. MICHAEL WILLIS
                                                         ----------------------
                                                  Its:   Sr. Vice President

AGREED AND ACCEPTED:

SEPCO INDUSTRIES, INC.

By:    /s/ GARY A. ALLCORN
      ---------------------
Its:  VP Finance

BAYOU PUMPS, INC.

By:    /s/ GARY A. ALLCORN
      ---------------------
Its:  VP Finance

AMERICAN MRO, INC.

By:    /s/ GARY A. ALLCORN
      ---------------------
Its:  VP Finance<PAGE>   1
                                                                    EXHIBIT 10.2

                                  May 2, 2000

DXP Acquisition, Inc. d/b/a
Strategic Acquisition, Inc.
7272 Pinemont
Houston, Texas 77040
Attention: Chief Financial Officer

     Re:  Loan and Security Agreement with Fleet Capital Corporation --
          Reserve Relating to Landlord Consents

Gentlemen:

     Reference is hereby made to that certain Loan and Security Agreement,
dated June 16, 1997, executed by Fleet Capital Corporation, A Rhode Island
corporation ("Lender") and DXP Acquisition, Inc. d/b/a Strategic Acquisition,
Inc., a Nevada corporation ("Borrower") (as amended from time to time, the
"Loan Agreement"). Unless otherwise indicated, all terms used herein shall have
the same meanings as in the Loan Agreement.

     As Borrower knows, at the time of the establishment of the credit facility
described in the Loan Agreement, lender implemented against the otherwise
available Revolving Credit Loans a reserve of $425,000 because of the lack of
satisfactory landlord consents at several of Borrower's locations (the "Landlord
Consent Reserve").

     Provided that no Default or Event of Default at such time has occurred and
is continuing, Lender agrees to eliminate the Landlord Consent Reserve at such
time as the term loan by Lender to David R. Little has been restructured in a
manner and pursuant to executed documentation in form and substance
satisfactory to Lender, in its sole discretion.

     Borrower agrees that if the Landlord Consent Reserve is eliminated,
Borrower shall use its best faith efforts to obtain executed landlord consents
in form and substance satisfactory to Lender, in Lender's sole discretion, for
each of Borrower's locations, and Borrower further agrees that if it does not
supply such landlord consents to Lender within 90 days after the elimination of
the Landlord Consent Reserve, Lender shall thereafter have the right to
establish reserves against the otherwise available Revolving Credit Loans in
such amounts as Lender shall deem appropriate, in Lender's sole discretion.

     Lender and Borrower hereby further agree that (i) the provisions of this
letter shall not constitute a waiver of any past, present or future violation
or violations of any provision of the Loan Agreement or any Other Agreement,
and (ii) the provisions of this letter shall not directly or indirectly in any
way whatsoever either: (a) impair, prejudice or otherwise adversely affect
Lender's right at any time to exercise any right, privilege, or remedy in
connection with the Loan Agreement, any Other Agreement, or any other contract
or instrument, or (b) amend or alter any provision of the Loan Agreement, any
Other
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DXP Acquisition, Inc., d/b/a
Strategic Acquisition, Inc.
May 2, 2000
Page 2

Agreement, or any other contract or instrument, or (c) constitute any course of
dealing or other basis for altering any obligation of Borrower or any right,
privilege, or remedy of Lender under the Loan Agreement, any Other Agreement, or
any other contract or instrument.

     Except as expressly set forth herein, all of the other terms, provisions
and conditions of the Loan Agreement and the Other Agreements shall remain and
continue in full force and effect.

     Lender reserves all of its rights, privileges and remedies under the Loan
Agreement, each Other Agreement and any other contracts or instruments executed
by Borrower and/or for the benefit of Lender. In order to induce Lender to
execute this letter, Borrower accepts and agrees to each provision of this
letter.

     Notwithstanding any provision of this letter to the contrary, this letter
shall not be directly or indirectly effective against Lender for any purpose
unless and until Lender receives a copy of this letter which has been duly
signed by the Borrower.

                              Yours very truly,

                              FLEET CAPITAL CORPORATION

                              By:   /s/ H. MICHAEL WILLIS
                                   -----------------------
                              Its:  Sr. Vice President

AGREED AND ACCEPTED:

DXP ACQUISITION, INC., d/b/a
STRATEGIC ACQUISITION, INC.

By:   /s/ Gary A. Allcorn
     --------------------
Its: VP Finance

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