Document:

Exhibit 10.3

 

GUARANTY

 

	
   

  	
  June
  29, 2009

  

 

In
order to induce JPMorgan Chase Bank (the “Bank”) to engage in foreign exchange
transactions (“FX Transactions”) with VIRTUSA UK LIMITED (“Counterparty”) and
in consideration thereof, VIRTUSA CORPORATION (the “Guarantor”) hereby agrees
as follows:

 

1.                                  Guaranty. The Guarantor
as primary obligor and not merely as surety unconditionally and irrevocably
guarantees to the Bank, its successors and assigns, the full payment when due (at
the stated maturity, by acceleration or otherwise) and in accordance with their
terms, of all obligations and liabilities of any nature whatsoever arising in
connection with the FX Transactions payable by each Counterparty, its
successors and assigns, to the Bank (the “Obligations”), regardless of how
evidenced or documented, whether now existing or hereafter created, originally
contracted with the Bank or another, secured or unsecured, direct or indirect, absolute
or contingent, matured or unmatured.

 

2.                                  Waivers. The Guarantor
waives: (a) acceptance of this Guaranty and proof of reliance by the Bank
hereon in creating the Obligations; (b) presentment, protest, demand for
payment and notice of dishonor; (c) notice of any other nature whatsoever;
(d) any requirement that the Bank take any action whatsoever (including demand
for payment and legal action) with respect to any other person or entity, including
the Counterparty or any other guarantor; and (e) all legal and equitable
defenses which may be available to a guarantor or surety.

 

3.                                       Consent. The Guarantor
agrees that the Bank may, without notice to, or further consent of, the
Guarantor and without in any way affecting the liability of the Guarantor
hereunder: (a) renew, extend, modify, release or transfer the Obligations,
any related documentation, any collateral security for the Obligations, any
other guaranty of the Obligations and any rights under any of them or provided
by law; and (b) exercise or refrain from exercising any right of the Bank
under or arising out of the Obligations, any related documentation, any
collateral security document, any other guaranty, or provided by law.

 

4.                                       Effectiveness. This Guaranty
shall be effective regardless of the validity or enforceability of the
Obligations (except to the extent that such invalidity or unenforceability
shall be solely due to the gross negligence or willful misconduct of the Bank),
any related documentation, any collateral security for the Obligations, and any
other guaranty of the Obligations. If, as a result of any bankruptcy, dissolution,
reorganization, intervention, arrangement or liquidation proceedings (or
proceedings similar in purpose or effect), or if for any other reason, any
payment received by the Bank in respect of the Obligations is rescinded or must
be returned by the Bank, this Guaranty shall continue to be effective as if
such payment had not been made. Notwithstanding that there may, from time

 

 

to
time, be no Obligations, this Guaranty shall continue to be effective until the
Bank gives written consent to termination.

 

5.                                       Subrogation. Notwithstanding
any payments which may be made hereunder by the Guarantor, the Guarantor shall
not be subrogated to the rights of the Bank with respect to the Obligations, and
shall not seek reimbursement of such payments from the Counterparty, until the
Obligations have been fully paid. Until the Obligations have been fully paid, all
amounts received by the Guarantor from a Counterparty shall be received in
trust for, and immediately paid to, the Bank on behalf of such Counterparty and
on account of the Obligations.

 

6.                                       Currency and
Place of Payments. All payments to be made hereunder by the Guarantor
shall be made without set-off or counterclaim, in immediately available funds
and in the currency in which the Obligations are denominated (the “Obligation
Currency”), at such banking institution in the country of domicile of such
currency as the Bank may designate to the Guarantor, for the account of the
office of the Bank maintaining the Obligations. The Guarantor hereby
irrevocably authorizes the Bank to charge any account of the Guarantor at any
office of the Bank for any amount up to the full amount payable hereunder.

 

7.                                       Representations
and Warranties. The Guarantor hereby represents and warrants that:
(a) the Guarantor is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction in which it is incorporated
and has full power, authority and legal right to execute, deliver and perform
this Guaranty, and has taken all necessary corporate and legal action to
authorize the execution, delivery and performance of this Guaranty; (b) this
Guaranty constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms; and (c) the execution, delivery
and performance by the Guarantor of this Guaranty will not violate the charter,
bylaws or other corporate rules of the Guarantor or any provision of law
or regulation or of any judgment, order or decree of any court, arbitrator or
governmental authority or of any agreement of any nature whatsoever, binding
upon the Guarantor or its assets.

 

8.                                       Judgment
Currency. The obligation of the Guarantor hereunder to make
payments in the Obligation Currency shall not be discharged or satisfied by any
tender or recovery pursuant to any judgment expressed in or converted into any
other currency except to the extent that such tender or recovery results in the
effective receipt by the Bank of the full amount of the Obligation Currency
payable hereunder and the Guarantor shall indemnify the Bank (and the Bank
shall have an additional legal claim) for any difference between such full
amount and the amount effectively received by the Bank pursuant to any such
tender or recovery. The Bank’s determination of amounts effectively received by
it shall be conclusive.

 

9.                                       Expenses. The Guarantor
shall pay all the Bank’s costs and out-of-pocket expenses (including reasonable
fees and disbursements of counsel) arising in connection with the enforcement
of, and preservation of rights under, this Guaranty.

 

2

 

10.                                 No Waivers; Cumulative
Remedies; Modification. No action or omission by the
Bank shall constitute a waiver of any of the rights or remedies of the Bank
hereunder. Such rights and remedies are cumulative and not exclusive of any
rights and remedies provided by law. This Guaranty shall not be modified except
by a written instrument signed by the Guarantor and the Bank.

 

11.                                 Submission to
Jurisdiction. The Guarantor hereby irrevocably: (a) submits
in any legal proceeding relating to this Guaranty to the non-exclusive in
personam  jurisdiction of any state or United States
court of competent jurisdiction sitting in the State of New York and agrees to
suit being brought in such courts, as the Bank may elect; (b) agrees to
service of process in any legal proceeding by mailing of copies thereof (by
registered or certified mail, if practicable) postage prepaid, or by telex to
the Guarantor at its address set forth below or such other address of which the
Bank shall have been notified in writing; and (c) agrees that nothing
herein shall affect the Bank’s right to effect service of process in any other
manner permitted by law.

 

12.                                 Waiver of July Trial. The Guarantor
waives, to the fullest extent permitted by applicable law, any right it may
have to a trial by jury in respect of any suit, action or proceeding relating
to this Guaranty.

 

13.                                 Governing Law. This Guaranty
shall be a contract under, and be governed by, and construed and interpreted in
accordance with, the laws of the State of New York, without reference to choice
of law principles.

 

 

	
   

  	
  VIRTUSA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Charles A. Spetcher 

  
	
   

  	
  Name:
  Charles A. Spetcher

  
	
   

  	
  Title:
  Corporate Controller, VP

  
	
   

  	
  6-29-09

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2000
  West Park Dr.

  
	
   

  	
  Westborough
  MA

  
	
   

  	
  Attention:

  	
  CFO

  
	
   

  	
  Telephone
  No.:

  	
  508-389-7300

  
	
   

  	
  Facsimile
  No.:

  	
  508-389-7224

  
						

 

3Exhibit 10.1

 

AMENDMENT
NO. 1

 

TO

 

ASSET
PURCHASE AGREEMENT

 

AMENDMENT
NO. 1 TO ASSET PURCHASE AGREEMENT (this “Amendment”) is
entered into as of June 26, 2009, by and among HY-TECH HOLDINGS,
INC., a Delaware corporation (successor in interest by merger to
Hy-Tech Machine, Inc., a Pennsylvania corporation) (“Hy-Tech Holdings”), QUALITY GEAR HOLDINGS, INC., a Delaware corporation (successor
in interest by merger to Quality Gear & Machine, Inc.,
a Pennsylvania corporation) (together with Hy-Tech Holdings, “Sellers”), HTM ASSOCIATES, a Pennsylvania general partnership (“HTM”),
Robert H. Ober, Elizabeth Smail, James J. Browne, Daniel Berg and James Hohman (collectively,
the “Shareholders”) and Hy-Tech Machine, Inc., a Delaware corporation (“Purchaser”).

 

RECITALS

 

Sellers, HTM, the
Shareholders and Purchaser are parties to that certain Asset Purchase Agreement
dated as of February 12, 2007 (the “Agreement”); and

 

Pursuant to a Guaranty dated
as of February 12, 2007, P&F Industries, Inc., a Delaware corporation (the “Guarantor”),
guaranteed the prompt and faithful performance of all of the Purchaser’s
obligations under the Agreement; and

 

The parties hereto desire to
amend the Agreement as set forth below.

 

NOW,
THEREFORE, in consideration of the recitals and the agreements
herein contained, and intending to be legally bound hereby, the parties hereto
hereby agree as follows:

 

1.             All capitalized terms used
herein shall have the meanings assigned to them in the Agreement unless
expressly defined otherwise in this Amendment.

 

2.             Notwithstanding the terms
and conditions of the Agreement, including but not limited to those contained
in Section 2.2.5, Purchaser shall pay to Hy-Tech Holdings an aggregate of
$2,292,942 as set forth below, in complete satisfaction of all Contingent
Consideration obligations set forth in the Agreement, including but not limited
to such amounts classified in the Agreement as “Contingent Consideration”, “Amendment
Contingent Consideration” and/or “Additional Supplemental Additional Contingent
Consideration”:

 

(i)            Five Hundred Seventy Three
Thousand Two Hundred Thirty-Five and Fifty One-Hundredths ($573,235.50) Dollars
which is hereby acknowledged and confirmed to have been received in full by Hy-Tech
Holdings on or about May 18, 2009; and

 

 

(ii)           One Million Seven Hundred
Nineteen Thousand Seven Hundred Six and Fifty One-Hundredths ($1,719,706.50)
Dollars shall be paid by Purchaser’s execution and delivery of a subordinated promissory
note of Purchaser to Sellers (the “Promissory Note”) dated as of May 16, 2009, the
payment of which shall be guaranteed by the Guarantor, in the form set forth as
Exhibit A hereto, contemporaneously with the execution and delivery of
this Amendment.

 

3.             Contemporaneously with the
execution and delivery of this Amendment, Purchaser shall further deliver to
Hy-Tech Holdings the following:

 

(i)            That certain security agreement
of even date, between Hy-Tech and Purchaser, duly executed by Purchaser, in the
form of Exhibit B attached hereto (the “Security Agreement”);

 

(ii)           That certain second mortgage
of even date granted by Purchaser to Hy-Tech Holdings relating to the Cranberry
Property, duly executed by Purchaser, in the form of Exhibit C attached hereto
(the “Second Mortgage”); and

 

(iii)          That certain subordination
agreement of even date among Sellers, Purchaser and Citibank, N.A., as
administrative agent, duly executed by Purchaser, in the form of Exhibit D
attached hereto (the “Subordination Agreement”, and together with the
Promissory Note, the Security Agreement, and the Mortgage, the “Other Amendment
Documents”).

 

4.             Contemporaneously with the
execution and delivery of this Amendment, Hy-Tech Holdings shall deliver to the
Purchaser the following:

 

(i)            The Security Agreement, duly
executed by Hy-Tech Holdings;

 

(ii)           The Subordination Agreement,
duly executed by Hy-Tech Holdings; and

 

(iii)          The Promissory Note, duly
acknowledged and agreed to by Hy-Tech Holdings.

 

5.             Within forty-five (45) days
after the date hereof, the Purchaser shall reimburse the Sellers for all reasonably
incurred legal fees incurred in connection with the negotiation, review and
drafting of this Amendment and the Other Amendment Documents, subject to a
maximum of Ten Thousand ($10,000) Dollars.

 

6.             Except as it has been
specifically amended hereby, the Agreement shall from and after the date hereof
continue in full force and effect.

 

 

7.             The Agreement, as amended by
this Amendment, together with the Other Amendment Documents, sets forth the
entire understanding of the parties relating to the subject matter hereof and
supersedes all prior agreements and understandings among or between any of the
parties relating to the subject matter hereof. The Agreement, as amended by
this Amendment, may not be further amended except by a written agreement
executed in accordance with the Agreement.

 

8.             If any provision of this
Amendment is determined to be illegal or unenforceable, such provision will be
deemed amended to the extent necessary to conform to applicable law or, if it
cannot be so amended without materially altering the intention of the parties,
it will be deemed stricken and the remainder of the Amendment will remain in
full force and effect.

 

9.             This Amendment may be
executed in several counterparts, each of which shall constitute an original
and all of which, when taken together, shall constitute one agreement.

 

WITNESS the execution
of this Amendment as of the 26th day of June, 2009.

 

 

PURCHASER

 

HY-TECH MACHINE, INC.

 

	
  By:

  	
  /s/ Joseph A.
  Molino, Jr.

  	
   

  
	
   

  	
  Joseph A. Molino, Jr.

  	
   

  
	
   

  	
  Vice President

  	
   

  

 

 

SELLERS

 

HY-TECH HOLDINGS, INC.

 

	
  By:

  	
  /s/ Robert H.
  Ober

  	
   

  
	
   

  	
  Robert H. Ober

  	
   

  
	
   

  	
  President

  	
   

  

 

 

QUALITY GEAR HOLDINGS, INC.

 

	
  By:

  	
  /s/ Robert H.
  Ober

  	
   

  
	
   

  	
  Robert H. Ober

  	
   

  
	
   

  	
  President

  	
   

  

 

 

HTM ASSOCIATES

 

	
  By:

  	
  /s/ Robert H.
  Ober

  	
   

  
	
   

  	
  Robert H. Ober

  	
   

  
	
   

  	
  Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SHAREHOLDERS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ ROBERT H. OBER

  	
   

  
	
  ROBERT H. OBER

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ ELIZABETH SMAIL

  	
   

  
	
  ELIZABETH SMAIL

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ JAMES J. BROWNE

  	
   

  
	
  JAMES J. BROWNE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ DANIEL BERG

  	
   

  
	
  DANIEL BERG

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ JAMES HOHMAN

  	
   

  
	
  JAMES HOHMAN

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