Document:

Exhibit 10.1

 

AMENDMENT NO. 1

TO SECOND AMENDED AND RESTATED LOAN AND
SECURITY AGREEMENT

 

This
AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT is dated as of August 9, 2017 (this
“Amendment”), among P&F INDUSTRIES, INC., a Delaware corporation (“P&F”),
FLORIDA PNEUMATIC MANUFACTURING CORPORATION, a Florida corporation (“Florida Pneumatic”), HY-TECH
MACHINE, INC., a Delaware corporation (“Hy-Tech” and together with P&F and Florida Pneumatic, collectively,
the “Borrowers” and each, a “Borrower”), JIFFY AIR TOOL, INC., a Delaware corporation
(“Jiffy”), ATSCO HOLDINGS CORP., a Delaware corporation (“ATSCO”), BONANZA PROPERTIES
CORP, a Delaware corporation (“Properties”), CONTINENTAL TOOL GROUP, INC., a Delaware corporation
(“Continental”), COUNTRYWIDE HARDWARE, INC., a Delaware corporation (“Countrywide”),
EMBASSY INDUSTRIES, INC., a New York corporation (“Embassy”), GREEN MANUFACTURING, INC., a Delaware
corporation (“Green”), PACIFIC STAIR PRODUCTS, INC., a Delaware corporation (“Pacific”),
WILP HOLDINGS, INC., a Delaware corporation (“WILP”), EXHAUST TECHNOLOGIES, INC., a Delaware corporation,
and WOODMARK INTERNATIONAL, L.P., a Delaware limited partnership (“Woodmark”, and together with Jiffy,
ATSCO, Properties, Continental, Countrywide, Embassy, Green, Pacific and WILP, collectively, “Guarantors” and
each, a “Guarantor”) the financial institutions party to this Amendment as lenders (collectively, “Lenders”),
and CAPITAL ONE, NATIONAL ASSOCIATION, a national banking association, as agent for the Lenders (“Agent”)

 

RECITALS:

 

A.                
Borrowers, Guarantors, the lenders from time to time party thereto (collectively, the “Lenders”) and
Agent have entered into the Second Amended and Restated Loan and Security Agreement dated as of April 5, 2017 (as amended, restated,
supplemented, or otherwise modified from time to time immediately prior to the effectiveness of this Amendment, the “Loan
Agreement”). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the
Loan Agreement.

 

B.                 
Borrowers have requested that Agent and the Lenders amend certain provisions of the Loan Agreement and to permit certain
Distributions.

 

C.                 
Subject to the terms and conditions set forth below, Agent and the Lenders party hereto are willing to amend the Loan Agreement
as set forth herein.

 

In furtherance of the
foregoing, the parties agree as follows:

 

Section 1.                
 AMENDMENTS.
Subject to the covenants, terms and conditions set forth herein and in reliance upon the representations and warranties set
forth herein, the Loan Agreement is amended as follows:

 

(a)       The
existing Section 10.2.4 of the Loan Agreement is hereby amended by deleting Section 10.2.4 in its entirety and replacing
it with the following:

 

     

     

    

 

“10.2.4 Distributions;
Upstream Payments; Executive Compensation. Declare or make any Distributions or pay executive compensation, except (a) Upstream
Payments, (b) Distributions of Equity Interests that do not result in a Change of Control, (c) executive compensation, including
incentive compensation, and management and directors’ fees and expenses consistent with past practice and, in the case of
incentive compensation, with any incentive plans approved by the Board of Directors of P&F as set forth on Schedule 10.2.4
or as subsequently approved by such Board (or a committee thereof) and such Board’s independent compensation consultant reasonably
satisfactory to Agent, (d) Investments pursuant to the provisions of clause (e) of the definition of Permitted Investments to the
extent such Investments are in the Equity Interests of P&F, provided further that (x) Availability is not less than $2,500,000
after giving effect to any such Investment and (y) for any month in which any such Investment is made, the Fixed Charge Coverage
Ratio shall be determined as if a Reporting Trigger Period were in effect (i) as of such month end (i.e. determined for the then
ending twelve month period) and (ii) for each of the eleven (11) month ends thereafter, and Borrower Agent shall deliver to Agent
within 30 days (or such longer period as Agent may allow) of each such month end, a certificate of a Senior Officer of the Borrower
Agent, in form and substance reasonably satisfactory to the Agent, certifying that all of the requirements set forth above (and
in clause (e) of the definition of Permitted Investments) were satisfied with respect to the Investment(s) made (if any) during
such month, together with a reasonably detailed calculation of the Fixed Charge Coverage Ratio as of such month end, (e) commencing
with the Fiscal Quarter ending March 31, 2016, quarterly Distributions to the holders of the Equity Interests of P&F in an
amount not to exceed the lesser of $0.05 per share or $200,000; or create or suffer to exist any encumbrance or restriction on
the ability of a Subsidiary to make any Upstream Payment, except for restrictions under the Loan Documents, under Applicable Law
or in effect on the Closing Date as shown on Schedule 9.1.15.”; and

 

(b)       The
existing Section 10.3.2 of the Loan Agreement is hereby amended by deleting Section 10.3.2 in its entirety and replacing
it with the following:

 

“10.3.2
Fixed Charge Coverage Ratio. Maintain a Fixed Charge Coverage Ratio as of the end of each Measurement Period of not less
than 1.00 to 1.00.”

 

The amendments to the Loan Agreement are
limited to the extent specifically set forth above and no other terms, covenants or provisions of the Loan Agreement are intended
to be affected hereby.

 

Section 2.                CONDITIONS
PRECEDENT. The parties hereto agree that the amendments set forth in Section 1 above shall not be effective until the
satisfaction of each of the following conditions precedent:

 

(a)       Documentation.
Agent shall have received (i) a counterpart of this Amendment, duly executed and delivered by Borrowers, Guarantors and all of
the Lenders then party to the Loan Agreement, and (ii) such other documents and certificates as Agent or its counsel may reasonably
request relating to the organization, existence and good standing of Obligors, the authorization of this Amendment and any other
legal matters relating to any Obligor or the transactions contemplated hereby.

 

(b)       Fees
and Expenses.  All fees and expenses of counsel to Agent estimated to date shall have been paid in full (without prejudice
to final settling of accounts for such fees and expenses).

 

Section 3.                REPRESENTATIONS
AND WARRANTIES.

 

(a)       In
order to induce Agent and the Lenders to enter into this Amendment, each Borrower represents and warrants to Agent and the Lenders
as follows:

 

     

     

    

 

(i)       The
representations and warranties made by such Borrower in Section 9 of the Loan Agreement are true and correct on and as of
the date hereof, except to the extent that such representations and warranties expressly relate to an earlier date in which case
such representations and warranties are true and correct on and as of such earlier date.

 

(ii)       No
Default or Event of Default has occurred and is continuing or will exist after giving effect to this Amendment.

 

(b)       In
order to induce Agent and the Lenders to enter into this Amendment, each Borrower and each Guarantor represents and warrants to
Agent and the Lenders that (i) this Amendment has been duly authorized, executed and delivered by it and constitutes its legal,
valid and binding obligation and (ii) the execution, delivery and performance by each Borrower and each Guarantor of this Amendment
(w) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority
or third party, except for (A) such as have been obtained or made and are in full force and effect or (B) the failure of which
to obtain would not reasonably be expected to result in a Material Adverse Effect, (x) do not and will not violate any Applicable
Law or the Organic Documents of such Borrower or such Guarantor, except to the extent that such violation would not reasonably
be expected to result in a Material Adverse Effect, (y) do not and will not violate or result in a default under any indenture
or any other agreement, instrument or other evidence of Material Indebtedness, except to the extent that such default would not
reasonably be expected to result in a Material Adverse Effect, and (z) do not and will not result in the creation or imposition
of any Lien on any asset of any Obligor, except Liens created under the Loan Documents.

 

Section 4.                MISCELLANEOUS.

 

(a)       Ratification
and Confirmation of Loan Documents. Each Borrower and each Guarantor hereby consents, acknowledges and agrees to the amendments
set forth herein and hereby confirms and ratifies in all respects the Loan Documents to which such Person is a party (including
without limitation, with respect to each Guarantor, the continuation of its payment and performance obligations under the guaranties
set forth in Section 15 of the Loan Agreement upon and after the effectiveness of the amendments contemplated hereby and,
with respect to each Borrower and each Guarantor, the continuation and extension of the liens granted under the Loan Agreement
and Security Documents to secure the Obligations). Except as expressly set forth herein, this Amendment (i) shall not by implication
or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, or Agent under
the Loan Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions,
obligations, covenants or agreements contained in the Loan Agreement or any other Loan Document, all of which are ratified and
affirmed in all respects and shall continue in full force and effect. Without limiting the generality of the foregoing, the Security
Documents and all of the Collateral described therein do and shall continue to secure the payment of all Obligations of the Obligors
under the Loan Documents, in each case, as amended by this Amendment. This Amendment shall for all purposes constitute a Loan Document.

 

(b)       Fees
and Expenses. Borrowers shall pay on demand all reasonable costs and expenses of Agent in connection with the preparation,
reproduction, execution, and delivery of this Amendment and any other documents prepared in connection herewith, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for Agent.

 

(c)       Headings.
Section and subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute
a part of this Amendment for any other purpose or be given any substantive effect.

 

     

     

    

 

(d)       Governing
Law; Waiver of Jury Trial. This Amendment shall be governed by and construed in accordance with the laws of the State of New
York, and shall be further subject to the provisions of Sections 14.13, 14.14 and 14.15 of the Loan Agreement.

 

(e)       Counterparts.
This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an
original, and all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart
of a signature page of this Amendment by facsimile or electronic transmission (including .pdf file) shall be effective as delivery
of a manually executed counterpart hereof.

 

(f)       Notices.
All communications and notices hereunder shall be given as provided in the Loan Agreement as amended hereby.

 

(g)       Entire
Agreement. This Amendment, together with all the Loan Documents (collectively, the “Relevant Documents”),
sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes
any prior negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation
or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied
on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly
stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party
to the other. None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise
except in a writing signed by Agent for such purpose.

 

(h)       Enforceability;
Severability. Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to
one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.
Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction

 

(i)       Successors
and Assigns. This Amendment shall be binding upon and inure to the benefit of each Borrower, each Guarantor, Agent, each Lender
and their respective successors and assigns (subject to Section 13 of the Loan Agreement).

 

(j)       Guarantor
Acknowledgement. Each Guarantor hereby: (i) consents to this Amendment and to the changes to the Loan Agreement to be
effected by this Amendment; (ii) acknowledges that this Amendment does not in any way modify, limit, or release any of its
obligations under the Loan Agreement; and (iii)  acknowledges that its consent to any other modification to any Loan Document
will not be required as a result of the consent set forth in this Section 4 having been obtained, except to the extent,
if any, required by the specific terms of that Loan Document.

 

 

.

[Remainder of Page Intentionally Left
Blank; Signature Pages Follow]

 

 

 

     

     

    

 

The following parties
have caused this Amendment No. 1 to Second Amended and Restated Loan and Security Agreement to be executed as of the date first
written above.

 

	 	BORROWERS:	 
	 	 	 
	 	P&F INDUSTRIES, INC.

                                                                         FLORIDA PNEUMATIC MANUFACTURING

                                                                         CORPORATION

                                                                         HY-TECH MACHINE, INC.
	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Joseph A. Molino, Jr.	 
	 	Name:	Joseph A. Molino, Jr. 	 
	 	Title:	Vice President	 
	 	 	 	 
	 	 	 	 
	 	GUARANTORS:	 
	 	 	 
	 	ATSCO HOLDINGS CORP.
	 	JIFFY AIR TOOL, INC.,	 
	 	BONANZA PROPERTIES CORP.,	 
	 	CONTINENTAL TOOL GROUP, INC.	 
	 	COUNTRYWIDE HARDWARE, INC.	 
	 	EMBASSY INDUSTRIES, INC.	 
	 	GREEN MANUFACTURING, INC.	 
	 	PACIFIC STAIR PRODUCTS, INC.	 
	 	EXHAUST TECHNOLOGIES, INC.	 
	 	WILP HOLDINGS, INC.	 
	 	 	 
	 	 	 
	 	By: 	/s/ Joseph A. Molino, Jr.	 
	 	Name:	Joseph A. Molino, Jr. 	 
	 	Title:	Vice President	 
	 	 	 	 
	 	WOODMARK INTERNATIONAL, L.P.	 
	 	 	 
	 	By:	Countrywide Hardware, Inc.	 
	 	 	 	 
	 	By: 	/s/ Joseph A. Molino, Jr.	 
	 	Name:	Joseph A. Molino, Jr. 	 
	 	Title:	Vice President	 

 

AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT

Signature Page

 

     

     

    

 

	 	AGENT AND LENDERS:
	 	 	 
	 	CAPITAL ONE, NATIONAL ASSOCIATION,
                                                                         as

                                                                         Agent and Lender

	 	 	 
	 	 	 
	 	By: 	/s/ Julianne Low
	 	Name:	Julianne Low
	 	Title:	Senior Director

 

 

 

 

 

AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT

Signature Pagealog-ex1043_1580.htm

 

EXHIBIT 10.43

EXHIBIT A

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the "Assignment and Assumption") is dated as of the Effective Date set forth below and is entered into by and between HSBC Bank USA, N.A. (the "Assignor") and Citibank, N.A. (the ''Assignee"). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”'). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

	
l.
	
Assignor:
	
HSBC Bank USA, N.A._______

	
 
	
 
	
 

	
2.
	
Assignee:
	
Citibank, N.A.______________

	
 
	
 
	
 

	
3.
	
Borrowers:
	
Analogic Corporation and certain Foreign Subsidiary Borrowers

	
 
	
 
	
 

	
4.
	
Administrative Agent:
	
JPMorgan Chase Bank, N.A., as the administrative agent under the

Credit Agreement

	
 
	
 
	
 

	
5.
	
Credit Agreement:
	
The Credit Agreement dated as of November 23, 20 I 5 among Analogic Corporation, the Foreign Subsidiary Borrowers from time to time parties thereto, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents parties thereto

PUBLIC

 

 

	
6.
	
Assigned Interest:
	
 

 

	
Aggregate Amount of

Commitment/Loans for all

Lenders
	
 
	
Amount of Commitment/Loans

Assigned
	
 
	
Percentage Assigned of

Commitment/Loans

	
$
	
100,000,000.00
	
 
	
$
	
15,000,000.00
	
 
	
%
	
15.00

	
$
	
 
	
 
	
$
	
 
	
 
	
%
	
 

	
$
	
 
	
 
	
$
	
 
	
 
	
%
	
 

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

 

 

Effective Date: Aug, 25, 2017 Assignor HSBC Bank USA, N.A. By: Elise Russo, Senior Vice President Assignee Citibank, N.A. By: W. Scott McKechnie, Senior Vice President Consented to and Accepted: JPMORGAN CHASE BANK, N.A.. as Administrative Agent and Issuing Bank By: Title: Mellissa Francis Associate Consented to: ANALOGIC CORPORATION By: Title:

PUBLIC

 

 

	
6.
	
Assigned Interest:
	
 

 

	
Aggregate Amount of

Commitment/Loans for all

Lenders
	
 
	
Amount of Commitment/Loans

Assigned
	
 
	
Percentage Assigned of

Commitment/Loans

	
$
	
100,000,000.00
	
 
	
$
	
15,000,000.00
	
 
	
%
	
15.00

	
$
	
 
	
 
	
$
	
 
	
 
	
%
	
 

	
$
	
 
	
 
	
$
	
 
	
 
	
%
	
 

 

Effective Date: ________,20

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

Effective Date: ,20 Assignor HSBC Bank USA, N.A. By: Elise Russo, Senior Vice President Assignee Citibank, N.A. By: W. Scott McKechnie, Senior Vice President Consented to and Accepted: JPMORGAN CHASE BANK, N.A.. as Administrative Agent and Issuing Bank By: Title: Consented to: ANALOGIC CORPORATION By: David Flanagan Title: Vice President

 

 

PUBLIC

 

ANNEX I

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION

1.Representations and Warranties.

 

1.1Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Company, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Company, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

1.2.Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

2.Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

3.General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee and the Assignor by Electronic Signature or delivery of an executed counterpart of a signature page of this Assignment and Assumption by any Electronic System shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

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