Document:

Exhibit
10.1

I N T E R L A K E N   C A P I T A L ,   I N C .

December 4, 2006

Strategic
Distribution, Inc.

1414 Radcliffe Street, Suite 300

Bristol, Pennsylvania 19007

Ladies
and Gentlemen:

Re:                             Fee Reimbursement

This letter agreement, upon your
execution and delivery of a copy hereof to William R. Berkley (“Mr. Berkley”),
shall constitute a binding commitment as to the items set forth below in
connection with a possible business transaction (the “Transaction”)
between Mr. Berkley or an affiliate of Mr. Berkley (collectively, the
“Acquiror”) and Strategic Distribution, Inc., a Delaware corporation
(the “Company”). The preliminary terms of the Transaction were set forth
in a letter dated November 16, 2006 from Mr. Berkley to the Special Committee
of the Board of Directors of the Company (the “Proposal”). This letter is
intended to be the agreement referred to in the ninth paragraph of the
Proposal.

1.             Reimbursement of Expenses.
The Company recognizes that the Acquiror may expend considerable money,
resources and time in connection with performing its due diligence
investigation, and preparing and negotiating definitive documentation relating
to the Transaction.  In consideration therefor,
and in consideration for deleting the first sentence in the ninth paragraph of
the Proposal, in the event that the parties do not (for whatever reason)
execute a definitive agreement providing for the Transaction, the Company
hereby agrees to reimburse Mr. Berkley and his Representatives (as defined
below) for all reasonable out-of-pocket third party expenses, up to a maximum
(the “Reimbursement Maximum”) of $250,000, incurred in connection with the
Transaction, including but not limited to (i) travel costs, (ii) document
production and other expenses of this type, and (iii) the fees of outside
counsel and other outside professional advisors retained by Mr. Berkley and/or
the Acquiror.  All payments to be made by
the Company pursuant to this letter agreement shall be made promptly after
demand by Mr. Berkley and receipt by the Company of an invoice in
reasonable detail, specifying such payments for which reimbursement is sought
by Mr. Berkley hereunder.   As used in
this letter agreement, “Representatives” means, as to any person, its
directors, officers, employees, agents and advisors (including, without
limitation, financial advisors, banks, attorneys, accountants and their
respective Representatives).

2.             Miscellaneous.

2.1          Unless and until a definitive
agreement relating to a Transaction has been executed and delivered by the
parties hereto, neither party hereto shall be under any legal or equitable
obligation, or have any other liability to the other party of any nature
whatsoever, with respect to the Transaction, including, without limitation, any
obligation to negotiate or enter into any such definitive agreement, by virtue
of this letter agreement or otherwise, other than with respect to the matters
specifically set forth in this letter agreement.

2.2          This letter agreement constitutes the
entire agreement between the parties concerning the subject matter hereof and
supersedes all prior or contemporaneous representations, discussions,
proposals, negotiations, conditions, communications and agreements, whether
oral or written, between the parties relating to the same and all past courses
of dealing or industry custom.

 

 

 

475 STEAMBOAT ROAD,
GREENWICH, CT  06830    TEL: 
203.629.8750    FAX: 203.629.8554

 

 

2.3          No amendment, modification or waiver
of any provision of this letter agreement shall be effective unless in writing
and signed by duly authorized signatories of both parties.  The waiver by either party of a breach of or
a default under any provision of this letter agreement shall not be construed
as a waiver of any subsequent breach of or default under the same or any other
provision of this letter agreement, nor shall any delay or omission on the part
of either party to exercise or avail itself of any right, power, privilege or
remedy that it has or may have hereunder operate as a waiver thereof, nor shall
any single or partial exercise thereof preclude any further exercise of any
such right, power, privilege or remedy hereunder.

2.4          This letter agreement shall be
governed by and construed in accordance with the laws of the State of Delaware
without regard to conflicts of laws principles. 
Any and all actions or proceedings seeking to enforce any provision of,
or based on any right arising out of, this letter agreement shall be brought in
the courts of the State of Delaware, including Federal Courts located therein,
should Federal jurisdiction requirements exist. 
Each party consents to the jurisdiction of such courts (and of the
appropriate appellate courts) in any such action or proceeding and waives any
objection to venue laid therein.  Process
in any action or proceeding referred to in the preceding sentence may be served
on any party anywhere in the world.  Each
party specifically waives any right to a jury trial with respect to any matter
arising under this letter agreement.

2.5          In the event that any of the
provisions of this letter agreement shall be held by a court or other tribunal
of competent jurisdiction to be invalid or unenforceable, the remaining
portions hereof shall remain in full force and effect and such provision shall
be enforced to the maximum extent possible so as to effect the intent of the
parties, and shall in no way be affected, impaired or invalidated.

2.6          This letter agreement may be executed
in one or more counterparts, each of which will be deemed to be an original
copy of this letter agreement and all of which, when taken together, will be
deemed to constitute one and the same instrument.

2.7          All notices, requests, demands,
claims, and other communications hereunder shall be in writing and shall be
deemed duly delivered one business day after it is sent for next business day
delivery via a reputable nationwide overnight courier service addressed to the
intended recipient as set forth below:

	
  If to the Company: 
Strategic Distribution, Inc. 
1414 Radcliffe Street, Suite 300 
Bristol, PA 19007Attn: President

  	
   

  	
  Copy to: 
Andrews Kurth LLP 
600 Travis
Suite 4200 
Houston, TX 77002 
Attn: Robert Jewell, Esq.

  
	
   

  	
   

  	
   

  
	
  If to Mr. Berkley: 
William R. Berkley 
c/o Interlaken Capital, Inc. 
475 Steamboat Road, 2nd Floor 
Greenwich, CT 06830

  	
   

  	
  Copy to: 
William Mahone, Esq. 
c/o Interlaken Capital, Inc. 
475 Steamboat Road, 2nd Floor 
Greenwich, CT 06830 

  

 

 2
 

 

 

	
  

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilmer Cutler Pickering Hale and
  Dorr LLP 
60 State Street 
Boston, MA 02109 
Attn: Jay Bothwick, Esq.

  

 

Either party may give any
notice, request, demand, claim, or other communication hereunder using any
other means (including registered or certified mail, personal delivery,
expedited courier, messenger service, telecopy, telex, ordinary mail, or
electronic mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it
actually is received by the party for whom it is intended.  Either party may change the address to which
notices, requests, demands, claims, and other communications hereunder are to
be delivered by giving the other party notice in the manner herein set forth.

Please confirm your
agreement with the foregoing by signing a duplicate copy of this letter where
indicated below and returning the same to the undersigned by fax, with the
signed original following by mail.

	
  Sincerely yours,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ William R. Berkley

  	
   

  	
   

  
	
  William R. Berkley

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
  Strategic Distribution, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Donald C.Woodring

  	
   

  	
   

  
	
   

  	
  Name: Donald
  C.Woodring

  	
   

  	
   

  
	
   

  	
  Title: President and Chief Executive Officer

  	
   

  	
   

  

 

 3Exhibit
10.1

THIRD AMENDMENT TO
STOCK PURCHASE AGREEMENT

THIS
THIRD AMENDMENT TO STOCK PURCHASE AGREEMENT (“Third Amendment”) is made
effective as of November 30, 2006, by and among (i) Federal Services
Acquisition Corporation, a Delaware corporation (“FSAC”); (ii) Advanced
Technology Systems, Inc., a Virginia corporation (“ATS”); (iii) Delmar
Lewis, Claude Rumsey and Harry Katrivanos as all of the shareholders of ATS
(collectively, the “Shareholders”); and (iv) Claude Rumsey in his
capacity as the Shareholders’ Representative (the “Shareholders’
Representative”).

RECITALS:

R-1.  By the terms of a Stock Purchase Agreement
dated April 19, 2006 by and among FSAC, ATS, the Shareholders and the
Shareholders’ Representative (the “Initial Agreement”), as amended by a
First Amendment to Stock Purchase Agreement dated September 30, 2006 (the “First
Amendment”) and a Second Amendment 
to Stock Purchase Agreement dated November 8, 2006 (the “Second
Amendment” and together with the Initial Agreement and the First Amendment
the “Stock Purchase Agreement”), FSAC agreed to purchase from the
Shareholders and the Shareholders agreed to sell to FSAC all of the
Shareholders respective shares of ATS “Capital Stock” (as defined in the Stock
Purchase Agreement) pursuant to the terms and conditions contained therein.

R-2.  Section 10.1(b) of the Initial Agreement
provides that either party may terminate the Stock Purchase Agreement if the “Closing”
(as defined in the Stock Purchase Agreement) has not occurred by November 30,
2006 for any reason other than a breach of the Stock Purchase Agreement by the
terminating party.

R-3.         Pursuant to the terms of the First
Amendment, the reference to September 30, 2006 in Section 10.1(b) of the
Initial Agreement was deleted and replaced with November 30, 2006.

R-4.  The undersigned wish to amend the Stock
Purchase Agreement by this Third Amendment to extend from November 30, 2006 to
January 15, 2007, the date specified in Section 10.1(b) of the Stock Purchase
Agreement.

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

1.  The reference to “November 30, 2006” in
Section 10.1(b) of the Stock Purchase Agreement is hereby deleted and replaced
with “January 15, 2007.”

2.  This Third Amendment shall in all respects be
governed by, and construed in accordance with, the laws (excluding conflict of
laws, rules and principles) of the Commonwealth of Virginia applicable to
agreements made and to be performed entirely within the Commonwealth of
Virginia, including all matters of construction, validity and performance.

 1
 

 

 

3.  Except as specifically amended by this Third
Amendment, the Stock Purchase Agreement is unmodified and in full force and
effect and is hereby ratified and affirmed by the undersigned.

This
Third Amendment may be executed in several counterparts, all of which taken
together shall be deemed one and constitute a single instrument.  Any manual signature upon this Third
Amendment that is faxed, scanned or photocopied shall for all purposes have the
same validity, effect and admissibility in evidence as an original signature
and the parties hereby waive any objection to the contrary.

IN
WITNESS WHEREOF, each of the parties hereto has caused this Third Amendment to
be duly executed and delivered in its name and on its behalf, all as of the day
and year first above written.

	
  

  	
  FEDERAL SERVICES

  
	
   

  	
  ACQUISITION CORPORATION,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Edward H. Bersoff

  	
   

  
	
   

  	
  Name: Edward H.
  Bersoff

  	
   

  
	
   

  	
  Title: Vice
  Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADVANCED
  TECHNOLOGY

  	
   

  
	
   

  	
  SYSTEMS,
  INC.,

  	
   

  
	
   

  	
  a Virginia
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Claude Rumsey

  	
   

  
	
   

  	
  Name:

  	
  Claude Rumsey

  	
   

  
	
   

  	
  Title:

  	
  Vice-Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SHAREHOLDERS:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   /s/ Delmar Lewis

  	
   

  
	
   

  	
  Delmar Lewis

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   /s/ Claude Rumsey

  	
   

  
	
   

  	
  Claude Rumsey

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   /s/ Harry Katrivanos

  	
   

  
	
   

  	
  Harry Katrivanos

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SHAREHOLDERS’ REPRESENTATIVE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   /s/ Claude Rumsey

  	
   

  
	
   

  	
  Claude Rumsey

  	
   

  
						

 

 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]