
<PAGE>   1
                                                                    EXHIBIT 10.2

                    AMENDMENT TO LOAN AND SECURITY AGREEMENT
                      [Pelican State Supply Company, Inc.]


         THIS AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment") is
made and entered into this 29th day of April, 1998, to be effective as of the
respective date herein indicated, by and between PELICAN STATE SUPPLY COMPANY,
INC., a Nevada corporation ("Borrower") and FLEET CAPITAL CORPORATION, a Rhode
Island corporation ("Lender").

                                    RECITALS

         A.      Borrower and Lender have entered into that certain Loan and
Security Agreement, dated as of May 29, 1997 (the "Loan Agreement").

         B.      Borrower and Lender desire to amend the Loan Agreement and the
other Loan Documents as hereinafter set forth.

         NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties, intending to be legally bound, agree as
follows:

                                  AGREEMENT

                                  ARTICLE I
                                 DEFINITIONS

         1.01    Capitalized terms used in this Amendment are defined in the
Loan Agreement, as amended hereby, unless otherwise stated.

                                 ARTICLE II
                        AMENDMENTS TO LOAN AGREEMENT

         Effective as of the respective date herein indicated, the Loan
Agreement is hereby amended as follows:

         2.01    AMENDMENT TO SECTION 1.1; ADDITION OF CERTAIN DEFINITIONS.
Effective as of the date of execution of this Amendment, Section 1.1 of the
Loan Agreement is hereby amended by adding the following new definitions
thereto, to be inserted in their proper alphabetical order:

                 "ACQUISITION TERM LOAN - shall have the same meaning as in the
         Sepco Loan Agreement.

                 CAPITALIZED LEASE OBLIGATION - any Indebtedness represented by
         obligations under a lease that is required to be capitalized for
         financial reporting purposes in accordance with GAAP."

                 DOMESTIC MARGIN - at all times up to and including June 30,
         1998-0.50% per annum.  Thereafter, 0.00% per annum.




AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 1
<PAGE>   2
                 EBITDA - for any fiscal period of Borrower, means the sum of
         (i) the Adjusted Net Earnings From Operations of Parent and its
         Subsidiaries for such period, plus (ii) non-cash charges of Parent and
         its Subsidiaries in respect to depreciation and amortization for such
         period, plus (iii) Tax Expense of Parent and its Subsidiaries for such
         period, plus (iv) Interest Expense of Parent and its Subsidiaries for
         such period, all of the above being determined on a consolidated basis
         in accordance with GAAP.

                 EURODOLLAR ADJUSTMENT DATE - initially, July 1, 1998, and
         thereafter, the first Business Day of the calendar month during which
         Lender receives the Compliance Certificate required by Section 9.1(J)
         hereof having a calculation date as of the last day of September,
         December, March or June, as the case may be (referred to in this
         Agreement as a 'Quarterly Compliance Certificate'), beginning with the
         Compliance Certificate having the calculation date as of September 30,
         1998.

                 EURODOLLAR MARGIN - (i) for all Eurodollar Loans outstanding
         during the period ending on June 30, 1998, 2.00% per annum, and
         thereafter (ii) for all Eurodollar Loans outstanding during the period
         beginning on a Eurodollar Adjustment Date and ending on the day
         preceding the subsequent Eurodollar Adjustment Date, the applicable
         percent per annum set forth in the pricing table below opposite the
         ratio of (i) the aggregate principal amount of all Senior Debt
         outstanding on the calculation date of the applicable Compliance
         Certificate to (ii) the EBITDA calculated for the trailing twelve
         calendar month period ending on the calculation date of the applicable
         Compliance Certificate (which EBITDA may contain adjustments for the
         Target Company EBITDA of any Target Company purchased by Sepco with an
         Acquisition Term Loan during the relevant twelve calendar month
         period, provided that any such adjustment must be consented to by
         Lender, which consent shall be given or withheld by Lender in its sole
         discretion, and such adjustment must also be calculated in a manner
         satisfactory to Lender, in Lender's sole discretion).

                                 PRICING TABLE
<TABLE>
<CAPTION>
              RATIO OF SENIOR DEBT                    EURODOLLAR 
                   TO EBITDA                            MARGIN
-------------------------------------------          ------------ 
 <S>         <C>                                     <C>    <C>
 (i)         Greater than 4.50 to 1.00               (i)    2.50%

 (ii)        Equal to or less than 4.50 to           (ii)   2.25%
             1.00, but greater than 4.00
             to 1.00                                 

 (iii)       Equal to or less than 4.00 to           (iii)  2.00%
             1.00, but greater than 3.50
             to 1.00                                 

 (iv)        Equal to or less than 3.50 to           (iv)   1.75%
             1.00, but greater than 3.00
             to 1.00                                 

 (v)         Equal to or less than 3.00 to           (v)    1.50%
             1.00                                    
</TABLE>

                 If Borrower shall fail to deliver a Quarterly Compliance
         Certificate by the date required pursuant to Section 9.1(J) of this
         Agreement, then effective as of the date such



AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 2
<PAGE>   3


         Quarterly Compliance Certificate becomes delinquent, the applicable
         Eurodollar Margin shall be conclusively presumed to equal the highest
         applicable Eurodollar Margin specified in the pricing table set forth
         above, such automatic adjustment to remain in effect until the first
         Business Day of the calendar month during which such delinquent
         Quarterly Compliance Certificate is delivered.  From and after the
         first Business Day of the calendar month during which such delinquent
         Quarterly Compliance Certificate is delivered and until the next
         Eurodollar Adjustment Date, the Eurodollar Margin shall be determined
         by reference to such delinquent Quarterly Compliance Certificate and
         the pricing table set forth above.

                 FIXED CHARGE RATIO - for any fiscal period of Borrower means,
         the ratio of (i) an amount equal to (a) the sum of (1) the Adjusted
         Net Earnings From Operations of Parent and its Subsidiaries for such
         period, plus (2) non-cash charges of Parent and its Subsidiaries in
         respect to depreciation and amortization for such period, plus (3)
         Interest Expense of Parent and its Subsidiaries for such period, minus
         (4) Capital Expenditures made by Parent and its Subsidiaries during
         such period, to (ii) Fixed Charges of Parent and its Subsidiaries for
         such period, all of the above being determined on a consolidated basis
         in accordance with GAAP.

                 FIXED CHARGES - for any fiscal period of Borrower means the
         sum of scheduled principal payments required to be made by Parent and
         its Subsidiaries during such period in respect to Indebtedness, plus
         (ii) Interest Expense of Parent and its Subsidiaries for such period,
         determined on a consolidated basis in accordance with GAAP.

                 INTEREST EXPENSE - with respect to any fiscal period, the
         interest expense incurred for such period as determined in accordance
         with GAAP plus Letter of Credit and LC Guaranty fees owing for such
         period.

                 MONEY BORROWED - means (i) Indebtedness arising from the
         lending of money by any Person to Parent or any Subsidiary of Parent,
         (ii) Indebtedness, whether or not in any such case arising from the
         lending by any Person of money to Parent or any Subsidiary of Parent
         (A) which is represented by notes payable or drafts accepted that
         evidence extensions of credit, (B) which constitutes obligations
         evidenced by bonds, debentures, notes or similar instruments or (C)
         upon which interest charges are customarily paid (other than accounts
         payable) or that was issued or assumed as full or partial payment for
         Property; (iii) Indebtedness that constitutes a Capitalized Lease
         Obligation; (iv) reimbursement obligations with respect to letters of
         credit or guaranties of letters of credit; and (v) Indebtedness of
         Parent or any Subsidiary of Parent under any guaranty of obligations
         that would constitute Indebtedness for Money Borrowed under clauses
         (i) through (iv) hereof, if owed directly by Parent or such Subsidiary
         of Parent.

                 SENIOR DEBT means all Money Borrowed, excluding Subordinated
         Debt.

                 SENIOR INTEREST COVERAGE RATIO - for any fiscal period of
         Borrower means, the ratio of (i) an amount equal to the sum of (a) the
         Adjusted Net Earnings From Operations of Parent and its Subsidiaries
         for such period, plus (b) Tax Expense of Parent and its Subsidiaries
         for such period, plus (c) Interest Expense of Parent and its
         Subsidiaries for such period in respect of Senior Debt, to (ii)
         Interest Expense of Parent and its Subsidiaries for such period in
         respect of Senior Debt, all as determined on a consolidated basis in
         accordance with GAAP.




AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 3
<PAGE>   4


                 STOCK OFFERING - the secondary stock offering of capital stock
         in Parent which is expected to raise approximately $25,000,000 in net
         proceeds for Parent.

                 TARGET COMPANY - shall have the same meaning as in the Sepco
         Loan Agreement.

                 TARGET COMPANY EBITDA - shall have the same meaning as in the
         Sepco Loan Agreement.

                 TAX EXPENSE - with respect to any fiscal period, the tax
         expense incurred for such period as determined in accordance with
         GAAP."

         2.02    AMENDMENT TO DEFINITION OF "BORROWING BASE" IN SECTION 1.1.
Effective as of the date of execution of this Amendment, the definition of
"Borrowing Base" contained in Section 1.1 of the Loan Agreement is hereby
amended by (i) deleting therefrom the phrase "Three Million Dollars
($3,000,000)" and substituting therefor the phrase "Two Million Five Hundred
Thousand Dollars ($2,500,000)", and (ii) deleting therefrom the phrase "One
Million Two Hundred Fifty Thousand Dollars ($1,250,000)" and substituting
therefor the phrase "One Million Five Hundred Thousand Dollars ($1,500,000)."

         2.03    AMENDMENT TO DEFINITIONS OF "COMMITMENT" IN SECTION 1.1.
Effective as of the date of execution of this Amendment, the definition of
"Commitment" contained in Section 1.1 of the Loan Agreement is hereby amended
and restated to read in its entirety as follows:

                 "Commitment - Two Million Five Hundred Thousand Dollars
         ($2,500,000.00)."

         2.04    AMENDMENT TO SECTION 3.1(A).  Effective as of the date of
execution of this Amendment, the first two sentences of Section 3.1(A) of the
Loan Agreement are amended and restated to read in their entirety as follows:

                 "(A)     Interest shall accrue on the principal amount of the
         Revolving Credit Loans outstanding at the end of each day, at the
         following rates per annum (individually called, as applicable, an
         'Applicable Annual Rate'):  (i) Eurodollar Loans shall bear interest
        at a rate per annum equal to the applicable Eurodollar Margin plus the
         Eurodollar Base Rate for the Eurodollar Interest Period applicable
         thereto and (ii) all other Revolving Credit Loans shall bear interest
         at a rate per annum equal to the applicable Domestic Margin plus the
         Base Rate.  Revolving Credit Loans shall bear interest at a rate per
         annum equal to the applicable Domestic Margin plus the Base Rate
         unless the Borrower provides a Eurodollar Borrowing Notice to the
         Lender in accordance with Section 3.7(A) irrevocably electing that all
         or a portion of the Revolving Credit Loans are to bear interest at a
         Eurodollar Base Rate."

         2.05    AMENDMENT TO SECTION 3.1(B).  Effective as of the date of
execution of this Amendment, Section 3.1(B) of the Loan Agreement is hereby
amended by amending and restating clause (ii) of such Section 3.1(B) in its
entirety as follows:

                 "(ii)    unless preempted by federal law, the Applicable
         Annual Rate or Default Rate, as applicable, from time to time in
         effect hereunder may not exceed the applicable 'weekly ceiling' (as
         such term is defined in Chapter 303 of the Texas Finance Code




AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 4
<PAGE>   5
         [Vernon's Texas Codes Annotated], as amended from time to time) from
         time to time in effect."

         2.06    AMENDMENT TO SECTION 3.3.  Effective as of the date of
execution of this Amendment, Section 3.3 of the Loan Agreement is amended as
follows:

                 "(i)     Section 3.3(A) is amended by deleting therefrom the
         reference to the date "January 2, 1999" and substituting therefor the
         date "January 2, 2000."

                 (ii)     Section 3.3(D) is amended and restated to read in its
         entirety as follows:

                          "(D)    At the effective date of any termination of
                 this Agreement, Borrower shall pay to Lender (in addition to
                 the then outstanding principal, accrued interest and other
                 charges owing under this Agreement and any of the Other
                 Agreements), as liquidated damages for the loss of the bargain
                 and not as a penalty, an amount equal to $50,000, if
                 termination occurs at any time prior to January 2, 2000 or
                 during any Renewal Term thereafter.  If termination occurs on
                 the last day of the Original Term or the last day of any
                 Renewal Term, no termination charge shall be payable.  In
                 addition, no termination charge shall be payable hereunder if
                 the Sepco Loan Agreement is terminated on the same effective
                 date as the termination of this Agreement and the $50,000
                 termination charge payable by Sepco under the Sepco Loan
                 Agreement has been paid by Sepco."

         2.07    AMENDMENT TO SECTION 9.3.  Effective as of the date of
execution of this Amendment, Section 9.3 of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

                 "9.3.    Specific Financial Covenants.  During the term of
         this Agreement, and thereafter for so long as there are any
         Obligations to Lender, Borrower covenants that, unless otherwise
         consented to by Lender in writing, Parent and its Subsidiaries shall:

                          (A)     Maintain, on a consolidated basis in
                 accordance with GAAP, as of the end of each fiscal quarter,
                 beginning with the fiscal quarter ending on June 30, 1998, for
                 the twelve calendar month period ending on such date, a Fixed
                 Charge Ratio of not less than 1.50 to 1.00.

                          (B)     Achieve, on a consolidated basis in
                 accordance with GAAP, on the last day of each fiscal quarter
                 set forth below, for the twelve calendar month period ending
                 on such date, a Senior Interest Coverage Ratio equal to or
                 greater than the ratio set forth below for the twelve calendar
                 month period ending on the date corresponding thereto:

<TABLE>
<CAPTION>
                      DATE                         RATIO
                      ----                         -----
                 <S>                                <C>
                 (i)    June 30, 1998               (i)    2.75 to 1.00
                 (ii)   September 30, 1998          (ii)   2.75 to 1.00
                 (iii)  December 31, 1998           (iii)  2.75 to 1.00
                 (iv)   Each March 31, June 30,     (iv)   3.00 to 1.00
                 September 30 and December 31
                 thereafter occurring
</TABLE>




AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 5
<PAGE>   6
                          (C)     Maintain, on a consolidated basis in
                 accordance with GAAP, as of the last day of each fiscal
                 quarter set forth below (the 'Calculation Date'), a ratio of
                 (i) the Senior Debt of Parent and its Subsidiaries on such
                 Calculation Date, to (ii) an amount equal to (a) the EBITDA of
                 Parent and its Subsidiaries for the twelve calendar month
                 period ending on such Calculation Date, minus (b) Capital
                 Expenditures made by Parent and its Subsidiaries during such
                 period, of not greater than the ratio set forth below on the
                 Calculation Date corresponding thereto:

<TABLE>
<CAPTION>
                          CALCULATION DATE                   RATIO
                          ----------------                   -----
                 <S>                                <C>
                 (i)    June 30, 1998               (i)    4.50 to 1.00
                 (ii)   September 30, 1998          (ii)   4.50 to 1.00
                 (iii)  December 31, 1998           (iii)  4.50 to 1.00
                 (iv)   Each March 31, June 30,     (iv)   4.00 to 1.00
                 September 30 and December 31
                 thereafter occurring
</TABLE>

                 Notwithstanding the foregoing, beginning with the first
                 Calculation Date to occur after the consummation of the Stock
                 Offering, and continuing on each subsequent Calculation Date,
                 the relevant maximum ratio shall be 3.00 to 1.00."

         2.08    AMENDMENT TO SECTION 11.1(P).  Effective as of the date of
execution of this Amendment, Section 11.1(P) of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

                 "(P)     Borrower and/or Sepco ceases to be a Subsidiary of
         Parent, unless due to the merger of Borrower and/or Sepco into Parent,
         with Parent being the surviving entity;"

         2.09    AMENDMENT TO SECTION 11.1; ADDITION OF A NEW SECTION 11.1(R).
Effective as of the date of execution of this Amendment, Section 11.1 of the
Loan Agreement is amended by adding thereto a new Section 11.1(R), to read in
its entirety as follows:

                 "(R)     Each of Borrower, American MRO, Bayou, Sepco, and DXP
         Acquisition, Inc., d/b/a Strategic Acquisition, Inc. have not by
         October 1, 1998, been merged into Parent, with Parent being the
         surviving entity, upon terms and conditions and pursuant to
         documentation satisfactory to Lender."

         2.10    AMENDMENT TO SECTION 11.1; ADDITION OF A NEW SECTION 11.1(S).
Effective as of the date of execution of this Amendment, Section 11.1 of the
Loan Agreement is amended by adding thereto a new Section 11.1(S) to read in
its entirety as follows:

                 "(S)     The occurrence of an 'Event of Default,' as such term
         is defined in that certain Loan and Security Agreement, dated June 16,
         1997, executed by Lender and DXP Acquisition, Inc., d/b/a Strategic
         Acquisition, Inc., as renewed, extended, modified and restated from
         time to time."




AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 6
<PAGE>   7

         2.11    AMENDMENT TO SECTION 12.10.  Effective as of the date of
execution of this Amendment, Section 12.10 of the Loan Agreement is amended by
deleting therefrom the reference to:

         "Hughes & Luce, L.L.P.
         1717 Main Street, Suite 2800
         Dallas, Texas 75201
         Attention:  Kenneth M. Vesledahl, Esq."

and substituting therefor the following:

         "Patton Boggs, L.L.P.
         2200 Ross Avenue, Suite 900
         Dallas, Texas 75201-2774
         Attention:  Kenneth M. Vesledahl, Esq.
         Facsimile No. (214) 871-2688"

         2.12    AMENDMENT TO SECTION 12.16.  Effective as of the date of
execution of this Amendment, Section 12.16 of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

                 "12.16.  Nonapplicability of Chapter 303 of Texas Finance
         Code.  Borrower and Lender hereby agree that the provisions of Chapter
         346 of the Texas Finance Code + [Vernon's Texas Codes Annotated] 
         (which regulates certain revolving loan accounts and revolving 
         triparty accounts) shall not apply to this Agreement or any of the
         other Loan Documents."

                                  ARTICLE III
                                   NO WAIVERS

         3.01    Nothing contained herein shall be construed as a waiver by
Lender of any covenant or provision of the Loan Agreement, the other Loan
Documents, this Amendment or of any other contract or instrument between
Borrower and Lender, and the failure of Lender at any time or times hereafter
to require strict performance by Borrower of any provision thereof shall not
waive, affect or diminish any right of Lender to thereafter demand strict
compliance therewith.  Lender hereby reserves all rights granted under the Loan
Agreement, the other Loan Documents, this Amendment and any other contract or
instrument between Borrower and Lender.

                                   ARTICLE IV
                              CONDITIONS PRECEDENT

         4.01    CONDITIONS TO EFFECTIVENESS.  The effectiveness of this
Amendment is subject to the satisfaction of the following conditions precedent
in a manner satisfactory to Lender, unless specifically waived in writing by
Lender:

                 (a)      Lender shall have received each of the following,
         each in form and substance satisfactory to Lender, in its sole
         discretion, and, where applicable, each duly executed by each party
         thereto, other than Lender:

                          (i)     This Amendment, duly executed by Lender,
                 together with the relevant Consent, Ratification, and
                 Amendment, respectively duly executed by Sepco Industries,



AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 7

<PAGE>   8
                 Inc., Bayou Pumps, Inc., American MRO, Inc., DXP Acquisition,
                 Inc. d/b/a Strategic Acquisition, Inc. and DXP Enterprises,
                 Inc.;

                          (ii)    All other documents Lender may request with
                 respect to any matter relevant to this Amendment or the
                 transactions contemplated hereby;

                 (b)      The representations and warranties contained herein
         and in the Loan Agreement and the other Loan Documents, as each is
         amended hereby, shall be true and correct as of the date hereof, as if
         made on the date hereof;

                 (c)      No Default or Event of Default shall have occurred
         and be continuing, unless such Default or Event of Default has been
         otherwise specifically waived in writing by Lender; and

                (d)     All corporate proceedings taken in connection with the
         transactions contemplated by this Amendment and all documents,
         instruments and other legal matters incident thereto shall be
         satisfactory to Lender and its legal counsel.

                                       ARTICLE V
                     RATIFICATIONS, REPRESENTATIONS AND WARRANTIES

         5.01    RATIFICATIONS.  The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Loan Agreement and the other Loan Documents, and, except as
expressly modified and superseded by this Amendment, the terms and provisions
of the Loan Agreement and the other Loan Documents are ratified and confirmed
and shall continue in full force and effect.  Each Borrower and Lender agree
that the Loan Agreement and the other Loan Documents, as amended hereby, shall
continue to be legal, valid, binding and enforceable in accordance with their
respective terms.

         5.02    REPRESENTATIONS AND WARRANTIES.  Borrower hereby represents
and warrants to Lender that (a) the execution, delivery and performance of this
Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on
the part of Borrower and will not violate the Articles of Incorporation or
Bylaws of Borrower; (b) attached hereto as Annex A is a true, correct and
complete copy of presently effective resolutions of Borrower's Board of
Directors authorizing the execution, delivery and performance of this Amendment
and any and all other Loan Documents executed and/or delivered in connection
herewith, certified by the Assistant Secretary of Borrower; (c) the
representations and warranties contained in the Loan Agreement, as amended
hereby, and any other Loan Documents are true and correct on and as of the date
hereof and on and as of the date of execution hereof as though made on and as
of each such date; (d) no Default or Event of Default under the Loan Agreement,
as amended hereby, has occurred and is continuing, unless such Default or Event
of Default has been specifically waived in writing by Lender; (e) Borrower is
in full compliance with all covenants and agreements contained in the Loan
Agreement and the other Loan Documents, as amended hereby; and (f) Borrower has
not amended its Articles of Incorporation or its Bylaws since the date of the
Loan Agreement.

                                   ARTICLE VI
                            MISCELLANEOUS PROVISIONS

         6.01    SURVIVAL OF REPRESENTATIONS AND WARRANTIES.  All
representations and warranties made in the Loan Agreement or any other Loan
Documents, including, without limitation, any  document



AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 8
<PAGE>   9

furnished in connection with this Amendment, shall survive the execution and
delivery of this Amendment and the other Loan Documents, and no investigation
by Lender or any closing shall affect the representations and warranties or the
right of Lender to rely upon them.

         6.02    REFERENCE TO LOAN AGREEMENT.  Each of the Loan Agreement and
the other Loan Documents, and any and all other Loan Documents, documents or
instruments now or hereafter executed and delivered pursuant to the terms
hereof or pursuant to the terms of the Loan Agreement, as amended hereby, are
hereby amended so that any reference in the Loan Agreement and such other Loan
Documents to the Loan Agreement shall mean a reference to the Loan Agreement as
amended hereby.

         6.03    EXPENSES OF LENDER.  As provided in the Loan Agreement,
Borrower agrees to pay on demand all costs and expenses incurred by Lender in
connection with the preparation, negotiation, and execution of this Amendment
and the other Loan Documents executed pursuant hereto and any and all
amendments, modifications, and supplements thereto, including, without
limitation, the costs and fees of Lender's legal counsel, and all costs and
expenses incurred by Lender in connection with the enforcement or preservation
of any rights under the Loan Agreement, as amended hereby, or any other Loan
Documents, including, without, limitation, the costs and fees of Lender's legal
counsel.

         6.04    SEVERABILITY.  Any provision of this Amendment held by a court
of competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

         6.05    SUCCESSORS AND ASSIGNS.  This Amendment is binding upon and
shall inure to the benefit of Lender and Borrower and their respective
successors and assigns, except that Borrower may not assign or transfer any of
its rights or obligations hereunder without the prior written consent of
Lender.

         6.06    COUNTERPARTS.  This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
instrument.

         6.07    EFFECT OF WAIVER.  No consent or waiver, express or implied,
by Lender to or for any breach of or deviation from any covenant or condition
by Borrower shall be deemed a consent to or waiver of any other breach of the
same or any other covenant, condition or duty.

         6.08    HEADINGS.  The headings, captions, and arrangements used in
this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

         6.09    APPLICABLE LAW.  THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS
EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE
PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS.

         6.10    FINAL AGREEMENT.  THE LOAN AGREEMENT AND THE OTHER LOAN
DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE
PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS
EXECUTED.  THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS AMENDED HEREBY,
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.  NO



AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 9
<PAGE>   10


MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS
AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY BORROWER AND
LENDER.

         6.11    RELEASE.  BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE,
COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE
WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS
LIABILITY TO REPAY THE "OBLIGATIONS" OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES
OF ANY KIND OR NATURE FROM LENDER.  BORROWER HEREBY VOLUNTARILY AND KNOWINGLY
RELEASES AND FOREVER DISCHARGES LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES,
SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF
ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR
CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE
THE DATE THIS AMENDMENT IS EXECUTED, WHICH BORROWER MAY NOW OR HEREAFTER HAVE
AGAINST LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF
ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT,
VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY "LOANS",
INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING,
RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL
RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN
AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

         IN WITNESS WHEREOF, this Amendment has been executed and is effective
as of the date first above-written.

                                             "BORROWER"

                                             PELICAN STATE SUPPLY COMPANY, INC.
                                            
                                             By:    /s/ Gary A. Allcorn
                                                    -------------------
                                             Name:  Gary A. Allcorn
                                                    -------------------
                                             Title: Senior V.P./Finance
                                                    -------------------


                                             "LENDER"

                                             FLEET CAPITAL CORPORATION

                                             By:    /s/ H. Michael Wills
                                                    --------------------
                                             Name:  H. Michael Wills
                                                    --------------------
                                             Title: VP
                                                    -------------------


ANNEXES:

A-1 - Certified Resolutions of Pelican State Supply Company, Inc.



AMENDMENT TO LOAN AND SECURITY AGREEMENT - Page 10
<PAGE>   11


                                  ANNEX A-1

                           CERTIFIED RESOLUTIONS OF
           PELICAN STATE SUPPLY COMPANY, INC.'S BOARD OF DIRECTORS

         RESOLVED:  That any officer of Pelican State Supply Company, Inc., a
Nevada corporation (the "Corporation"), acting alone, by his signature be, and
the same hereby is, authorized and directed, in the name of and on behalf of
the Corporation (a) to amend the Corporation's existing Loan and Security
Agreement by and between the Corporation and Fleet Capital Corporation, a Rhode
Island corporation ("Lender"), (b) to execute and deliver to Lender with such
changes in the terms and provisions thereof as the officer executing same
shall, in his sole discretion, deem advisable, (i) a certain proposed Amendment
to Loan and Security Agreement to be executed by Corporation and Lender, a
draft of which has been reviewed and discussed by the Board of Directors of the
Corporation, and (ii) such other Loan Documents, instruments, statements and
writings as the officer or officers executing the same may deem desirable or
necessary in connection therewith, and (c) to perform such other acts as the
officer or officers performing such acts on behalf of the Corporation may deem
desirable or necessary in connection therewith; and be it

         FURTHER RESOLVED:  That said agreements will benefit the Corporation,
both directly and indirectly, and are in the best interests of the Corporation;
and be it

         FURTHER RESOLVED:  That said agreements and other statements in
writing executed in the name and on behalf of the Corporation by any officer of
the Corporation shall be presumed conclusively to be the instruments, the
execution of which is authorized by these resolutions; and be it

         FURTHER RESOLVED:  That the officers of the Corporation be, and the
same hereby are, authorized and directed to execute, in the name of and on
behalf of the Corporation, security agreements, financing statements,
assignments, collateral reports, loan statements, confirmations of delivery,
lien statements, pledge certificates, release certificates, removal reports,
guaranties, cross- collateralization agreements and such other writings and to
take such other actions as are necessary in their dealings with Lender, and any
such papers executed and any such actions taken by any of them prior to this
time are approved, ratified and confirmed; and be it

         FURTHER RESOLVED:  That the Secretary or any Assistant Secretary of
the Corporation, by the signature of any one or more of them, be, and the same
hereby are, authorized and directed to attest the execution by the Corporation
of the papers signed pursuant to these resolutions, to affix the seal of the
Corporation thereto, if required by Lender, and to certify to Lender the
adoption of these resolutions.

                                CERTIFICATION

         The undersigned hereby certifies that the within and foregoing
resolutions are in effect as of the date hereof, without modification, and that
the person signing the within and foregoing Amendment on behalf of the
Corporation is the duly elected officer stated below his name, that he is
authorized to sign such Amendment, and that his signature thereon is genuine.

         DATED:  April 29, 1998.
                                        /s/ GARY A. ALLCORN
                                        ----------------------------------------
                                        [Assistant] Secretary of the Corporation






CONSENT AND RATIFICATION TO 
AMENDMENT TO LOAN AND SECURITY - Page 1
<PAGE>   12


                      CONSENT, RATIFICATION, AND AMENDMENT

         The undersigned, SEPCO INDUSTRIES, INC., has executed that certain
Continuing Guaranty Agreement, dated May 29, 1997 (the "Guaranty"), in favor of
FLEET CAPITAL CORPORATION, a Rhode Island corporation ("Lender").  The
undersigned hereby (i) consents and agrees to the terms of the Amendment to
Loan and Security Agreement, dated as of April 29, 1998 (the "Loan Amendment"),
by and between Pelican State Supply Company, Inc., a Nevada corporation, and
Lender, a copy of which has been reviewed by the undersigned, and (ii) agrees
that the Guaranty shall remain in full force and effect and shall continue to
be the legal, valid and binding obligation of the undersigned enforceable
against it in accordance with its terms.  Furthermore, the undersigned hereby
agrees and acknowledges that (a) the obligations, indebtedness and liabilities
arising in connection with the Loan Amendment comprise some, but not all, of
the "Obligations" as such term is used in the Guaranty, (b) the Guaranty is an
"Other Agreement", as such term is defined in the Loan Agreement, (c) the
Guaranty is not as of this date subject to any claims, defenses or offsets, (d)
nothing contained in the Loan Agreement or any Other Agreement entered into
prior to or as of the date hereof shall adversely affect any right or remedy of
Lender under the Guaranty, and (e) the execution and delivery of the Loan
Amendment shall in no way reduce, impair or discharge any obligations of the
undersigned as guarantor pursuant to the Guaranty and shall not constitute a
waiver by Lender of any of Lender's rights against the undersigned.

         Dated:  April 29, 1998.
 
                                                 SEPCO INDUSTRIES, INC.


                                                 By:    /s/ GARY A. ALLCORN
                                                        ------------------------
                                                 Name:  Gary A. Allcorn
                                                        ------------------------
                                                 Title: Senior V.P./Finance
                                                        ------------------------






CONSENT AND RATIFICATION TO 
AMENDMENT TO LOAN AND SECURITY - Page 1
<PAGE>   13


                      CONSENT, RATIFICATION, AND AMENDMENT

         The undersigned, AMERICAN MRO, INC., has executed that certain
Continuing Guaranty Agreement, dated May 29, 1997 (the "Guaranty"), in favor of
FLEET CAPITAL CORPORATION, a Rhode Island corporation ("Lender").  The
undersigned hereby (i) consents and agrees to the terms of the Amendment to
Loan and Security Agreement, dated as of April 29, 1998 (the "Loan Amendment"),
by and between Pelican State Supply Company, Inc., a Nevada corporation, and
Lender, a copy of which has been reviewed by the undersigned, and (ii) agrees
that the Guaranty shall remain in full force and effect and shall continue to
be the legal, valid and binding obligation of the undersigned enforceable
against it in accordance with its terms.  Furthermore, the undersigned hereby
agrees and acknowledges that (a) the obligations, indebtedness and liabilities
arising in connection with the Loan Amendment comprise some, but not all, of
the "Obligations" as such term is used in the Guaranty, (b) the Guaranty is an
"Other Agreement", as such term is defined in the Loan Agreement, (c) the
Guaranty is not as of this date subject to any claims, defenses or offsets, (d)
nothing contained in the Loan Agreement or any Other Agreement entered into
prior to or as of the date hereof shall adversely affect any right or remedy of
Lender under the Guaranty, and (e) the execution and delivery of the Loan
Amendment shall in no way reduce, impair or discharge any obligations of the
undersigned as guarantor pursuant to the Guaranty and shall not constitute a
waiver by Lender of any of Lender's rights against the undersigned.

         Dated:  April 29, 1998.

                                                 AMERICAN MRO, INC.
           

                                                 By:    /s/ GARY A. ALLCORN
                                                        ------------------------
                                                 Name:  Gary A. Allcorn
                                                        ------------------------
                                                 Title: Senior V.P./Finance
                                                        ------------------------






CONSENT AND RATIFICATION TO 
AMENDMENT TO LOAN AND SECURITY - Page 1
<PAGE>   14


                      CONSENT, RATIFICATION, AND AMENDMENT

         The undersigned, BAYOU PUMPS, INC., has executed that certain
Continuing Guaranty Agreement, dated May 29, 1997 (the "Guaranty"), in favor of
FLEET CAPITAL CORPORATION, a Rhode Island corporation ("Lender").  The
undersigned hereby (i) consents and agrees to the terms of the Amendment to
Loan and Security Agreement, dated as of April 29, 1998 (the "Loan Amendment"),
by and between Pelican State Supply Company, Inc., a Nevada corporation, and
Lender, a copy of which has been reviewed by the undersigned, and (ii) agrees
that the Guaranty shall remain in full force and effect and shall continue to
be the legal, valid and binding obligation of the undersigned enforceable
against it in accordance with its terms.  Furthermore, the undersigned hereby
agrees and acknowledges that (a) the obligations, indebtedness and liabilities
arising in connection with the Loan Amendment comprise some, but not all, of
the "Obligations" as such term is used in the Guaranty, (b) the Guaranty is an
"Other Agreement", as such term is defined in the Loan Agreement, (c) the
Guaranty is not as of this date subject to any claims, defenses or offsets, (d)
nothing contained in the Loan Agreement or any Other Agreement entered into
prior to or as of the date hereof shall adversely affect any right or remedy of
Lender under the Guaranty, and (e) the execution and delivery of the Loan
Amendment shall in no way reduce, impair or discharge any obligations of the
undersigned as guarantor pursuant to the Guaranty and shall not constitute a
waiver by Lender of any of Lender's rights against the undersigned.

         Dated:  April 29, 1998.

                                                BAYOU PUMPS, INC.
 

                                                 By:    /s/ GARY A. ALLCORN
                                                        ------------------------
                                                 Name:  Gary A. Allcorn
                                                        ------------------------
                                                 Title: Senior V.P./Finance
                                                        ------------------------






CONSENT AND RATIFICATION TO 
AMENDMENT TO LOAN AND SECURITY - Page 1
<PAGE>   15

                      CONSENT, RATIFICATION, AND AMENDMENT

         The undersigned, DXP ACQUISITION, INC. D/B/A STRATEGIC ACQUISITION,
INC., has executed that certain Continuing Guaranty Agreement, dated June 16,
1997 (the "Guaranty"), in favor of FLEET CAPITAL CORPORATION, a Rhode Island
corporation ("Lender").  The undersigned hereby (i) consents and agrees to the
terms of the Amendment to Loan and Security Agreement, dated as of April 29,
1998 (the "Loan Amendment"), by and between Pelican State Supply Company, Inc.,
a Nevada corporation, and Lender, a copy of which has been reviewed by the
undersigned, and (ii) agrees that the Guaranty shall remain in full force and
effect and shall continue to be the legal, valid and binding obligation of the
undersigned enforceable against it in accordance with its terms.  Furthermore,
the undersigned hereby agrees and acknowledges that (a) the obligations,
indebtedness and liabilities arising in connection with the Loan Amendment
comprise some, but not all, of the "Obligations" as such term is used in the
Guaranty, (b) the Guaranty is an "Other Agreement", as such term is defined in
the Loan Agreement, (c) the Guaranty is not as of this date subject to any
claims, defenses or offsets, (d) nothing contained in the Loan Agreement or any
Other Agreement entered into prior to or as of the date hereof shall adversely
affect any right or remedy of Lender under the Guaranty, and (e) the execution
and delivery of the Loan Amendment shall in no way reduce, impair or discharge
any obligations of the undersigned as guarantor pursuant to the Guaranty and
shall not constitute a waiver by Lender of any of Lender's rights against the
undersigned.

         Dated:  April 29, 1998.

                                               DXP ACQUISITION, INC.
                                               D/B/A STRATEGIC ACQUISITION, INC.


                                               By:    /s/ GARY A. ALLCORN
                                                      ------------------------
                                               Name:  Gary A. Allcorn
                                                      ------------------------
                                               Title: Senior V.P./Finance
                                                      ------------------------






CONSENT AND RATIFICATION TO 
AMENDMENT TO LOAN AND SECURITY - Page 1
<PAGE>   16


                     CONSENT, RATIFICATION AND AMENDMENT


         The undersigned, DXP ENTERPRISES, INC., has executed (x) that certain
Continuing Guaranty Agreement, dated May 29, 1997 (the "Guaranty"), in favor of
FLEET CAPITAL CORPORATION, a Rhode Island corporation ("Lender"), and (y) that
certain Stock Pledge Agreement, dated as of May 29, 1997, executed by the
undersigned and Fleet (the "Security Agreement").  The undersigned hereby (i)
consents and agrees to the terms of the Amendment to Loan and Security
Agreement, dated as of April 29, 1998 (the "Loan Amendment"), by and between
Pelican State Supply Company, Inc., a Nevada corporation, and Lender, a copy of
which has been reviewed by the undersigned, and (ii) agrees that each of the
Guaranty and the Security Agreement shall remain in full force and effect and
shall continue to be the legal, valid and binding obligation of the
undersigned, enforceable against it in accordance with its terms.  Furthermore,
the undersigned hereby agrees and acknowledges that (a) the obligations,
indebtedness and liabilities arising in connection with the Loan Amendment
comprise some, but not all, of the "Obligations", as such term is used in the
Guaranty, and some, but not all, of the "Secured Obligations", as such term is
used in the Security Agreement, (b) each of the Guaranty and the Security
Agreement is an "Other Agreement", as such term is defined in the Loan
Agreement, (c) neither the Guaranty nor the Security Agreement is, as of the
date hereof, subject to any claims, defenses or offsets, (d) nothing contained
in the Loan Agreement or any Other Agreement entered into prior to or as of the
date hereof shall adversely affect any right or remedy of Lender under the
Guaranty or under the Security Agreement, and (e) the execution and delivery of
the Loan Amendment shall in no way reduce, impair or discharge any obligations
of the undersigned as guarantor pursuant to the Guaranty or as debtor pursuant
to the Security Agreement and shall not constitute a waiver by Lender of any of
Lender's rights against the undersigned.

         Dated:  April 29, 1998.

                                                 DXP ENTERPRISES, INC.
 
                                                 By:    /s/ GARY A. ALLCORN
                                                        ------------------------
                                                 Name:  Gary A. Allcorn
                                                        ------------------------
                                                 Title: Senior V.P./Finance
                                                        ------------------------






CONSENT AND RATIFICATION TO 
AMENDMENT TO LOAN AND SECURITY - Page 1
