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                                                                     EXHIBIT 4.2

                             P & F INDUSTRIES, INC.

                          AMENDMENT TO RIGHTS AGREEMENT

          AMENDMENT, dated as of April 11, 1997, by and between P&F Industries,
Inc., a Delaware corporation (the "Company"), and American Stock Transfer &
Trust Company, a New York corporation (the "Rights Agent").

W I T N E S S E T H

          WHEREAS, the Company and the Rights Agent are parties to a Rights
Agreement dated as of August 23, 1994 (the "Rights Agreement");

          WHEREAS, pursuant to Section 26 of the Rights Agreement, the Board of
Directors of the Company has determined that an amendment to the Rights
Agreement as set forth herein is necessary and desirable and the Company and the
Rights Agent desire to evidence such amendment in writing.

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

          1. Amendment of Section 1(a). Section 1(a) of the Rights Agreement is
amended and restated to read as follows:

               (a) "Acquiring Person" shall mean any Person who or which,
together with all Affiliates and Associates of such Person, shall be the
Beneficial Owner of 15% or more of the shares of Common Stock then outstanding,
but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii)
any employee benefit plan of the Company or of any Subsidiary of the Company,
(iv) any Person or entity organized, appointed or established by the Company for
or pursuant to the terms of any such plan, (v) Sidney Horowitz and his
Associates and Affiliates and (vi) Richard A. Horowitz and his Associates and
Affiliates (each of (i) through (vi), an "Exempted Person"); provided, however,
that (i) if Sidney Horowitz or his Associates (other than Richard A. Horowitz)
or Affiliates shall become the Beneficial Owner of 10% or more of the shares of
Common Stock then outstanding, each of them shall be then deemed to be an
"Acquiring Person" and (ii) if Richard A. Horowitz or his Associates (including
Sidney Horowitz) or Affiliates shall become the Beneficial Owner of 46% or more
of the shares of Common Stock then outstanding (the "RAH Trigger Amount"), then
each of them shall be deemed to be an "Acquiring Person", except that Richard A.
Horowitz and his Associates (other than Sidney Horowitz) and Affiliates shall
not be deemed to be an "Acquiring Person" as a result of being the Beneficial
Owner of shares of Common Stock in excess of the RAH Trigger Amount solely
because Sidney Horowitz or his Associates (other than Richard A. Horowitz) or
Affiliates are deemed to be an Acquiring Person. Notwithstanding the foregoing,
(i) no Person shall become an "Acquiring Person" as a result of an acquisition
of Common Stock by the Company which, by reducing the number of such shares then
outstanding, increases the proportionate number of shares beneficially owned by
such Person to 15% (or in the case of Sidney Horowitz 10%, or in the case of
Richard A. Horowitz the RAH Trigger Amount) or more of the outstanding Common
Stock, except that if such Person, after such share purchases by the Company,
becomes the Beneficial Owner of any additional shares of Common Stock, such
Person shall

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be deemed to be an "Acquiring Person;" and (ii) if the Board of Directors of the
Company determines in good faith that a Person who would otherwise be an
"Acquiring Person" has become such inadvertently, and such Person divests as
promptly as practicable a sufficient number of Common Stock so that such Person
would no longer be an Acquiring Person then such Person shall not be deemed to
be an "Acquiring Person." The term "outstanding," when used with reference to a
Person's Beneficial Ownership of securities of the Company, shall mean the
number of such securities then issued and outstanding together with the number
of such securities not then issued and outstanding which such Person would be
deemed to beneficially own hereunder.

          2. Effectiveness. This Amendment shall be deemed effective as of April
11, 1997 as if executed on such date. Except as amended hereby, the Rights
Agreement shall remain in full force and effect in accordance with its terms and
shall be otherwise unaffected hereby.

          3. Miscellaneous. This Amendment shall be deemed to be a contract made
under the laws of the State of Delaware and for all purposes shall be governed
by and construed in accordance with the laws of such state applicable to
contracts to be made and performed entirely within such state. This Amendment
may be executed in any number of counterparts, each of such counterparts shall
for all purposes be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument. If any provision, covenant
or restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, illegal or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Amendment shall remain in
full force and effect and shall in no way be effected, impaired or invalidated.


          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                                                 P&F INDUSTRIES, INC.


                                                 By: /s/ Richard Horowitz
                                                 Name:  Richard Horowitz
                                                 Title: President



                                                 AMERICAN STOCK TRANSFER
                                                     & TRUST COMPANY
                                                 as Rights Agent


                                                 By: /s/ Herbert J. Lemmer
                                                 Name:  Herbert J. Lemmer
                                                 Title: Vice President

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