Document:

EXHIBIT 10.3

SECOND AMENDED AND RESTATED TERM LOAN NOTE

$4,760,000                                                                                                                                              February
12, 2007

FOR VALUE RECEIVED,  P&F
INDUSTRIES, INC., a Delaware corporation (“P&F”), FLORIDA PNEUMATIC MANUFACTURING CORPORATION,
a Florida corporation (“Florida Pneumatic”), EMBASSY
INDUSTRIES, INC., a New York corporation (“Embassy”), GREEN MANUFACTURING, INC., a Delaware
corporation (“Green”), COUNTRYWIDE HARDWARE,
INC., a Delaware corporation (“Countrywide”), NATIONWIDE INDUSTRIES, INC., a Florida
corporation (“Nationwide”), WOODMARK INTERNATIONAL,
L.P., a Delaware limited partnership (“Woodmark”), PACIFIC STAIR PRODUCTS, INC., a Delaware corporation (“Pacific”)
, WILP HOLDINGS, INC., a Delaware
corporation (“WILP”), CONTINENTAL TOOL GROUP,
INC., a Delaware corporation (“Continental”) and HY-TECH MACHINE, INC., a Delaware corporation (“Hy-Tech”;
and collectively with P&F, Florida Pneumatic, Embassy, Green, Countrywide,
Nationwide, Woodmark, Pacific, WILP and Continental the “Co-Borrowers”),
jointly and severally promise to pay to the order of HSBC BANK
USA, NATIONAL ASSOCIATION (the “Lender”), on or before the Term Loan
Maturity Date, the principal amount of FOUR MILLION SEVEN HUNDRED
SIXTY THOUSAND  ($4,760,000)
DOLLARS.  The outstanding
principal amount hereof is payable in installments in the amounts and on the
dates set forth in the Credit Agreement referred to below, provided that the
final installment, on the Term Loan Maturity Date, shall be in an amount equal
to the remaining principal amount outstanding on the Term Loan Maturity Date.

The Co-Borrowers jointly and severally promise to
pay interest on the unpaid principal amount hereof from the date hereof until
paid in full at the rates and at the times which shall be determined in
accordance with the provisions of the Credit Agreement referred to below.

This Note is one of the “Term Loan Notes” referred
to in the Credit Agreement, dated as of June 30, 2004, by and among the
Co-Borrowers, Citibank, N.A., as Administrative Agent, and the Lenders
(including the Lender) as are, or may from time to time become, parties thereto
(as same has been and may be further amended, restated, supplemented or
modified, the “Credit Agreement”) and is issued pursuant to and entitled to the
benefits of the Credit Agreement to which reference is hereby made for a more
complete statement of the terms and conditions under which the Term Loan
evidenced hereby was made and is to be repaid. 
Capitalized terms used herein without definition shall have the meanings
set forth in the Credit Agreement.

Each of the Lender and any subsequent holder of this
Note shall record the date, Type and amount of each payment or prepayment of
principal of the Loans on the grid schedule annexed to this Note; provided,
however, that the failure of the Lender or any holder to set forth the
Term Loan, payments and other information on the attached grid schedule shall
not in any manner affect the obligation of the Co-Borrowers to repay the Term
Loan made by the Lender in accordance with the terms of this Note.

This Note is subject to prepayment as provided in
Section 3.03 of the Credit Agreement.

Upon the occurrence of an Event of Default the
unpaid balance of the principal amount of this Note, together with all accrued
but unpaid interest thereon, may become, or may be declared to be, due and
payable in the manner, upon the conditions and with the effect provided in the
Credit Agreement.

 1
 

 

All payments of principal and interest in respect of
this Note shall be made in lawful money of the United States of America in
immediately available funds at the office of Citibank, N.A., as Administrative
Agent for the Lenders under the Credit Agreement, located at 730 Veterans
Memorial Highway, Hauppauge, New York 11788 or at such other place as shall be
designated in writing for such purpose in accordance with the terms of the
Credit Agreement.

No reference herein to the Credit Agreement and no
provision of this Note or the Credit Agreement shall alter or impair the
obligation of the Co-Borrowers, which is absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective times,
and in the currency herein prescribed.

Each Co-Borrower and each endorser of this Note
waive diligence, presentment, protest, demand, and notice of any kind in
connection with this Note.

This Note is an amendment and restatement of, and is
being issued in replacement of and substitution for, the Amended and Restated
Term Loan Note dated February 13, 2006 in the original principal amount of
$6,090,000 issued by the Co-Borrowers (other than Continental and Hy-Tech) in
favor of the Lender (the “Original Note”). 
The execution and delivery of this Note shall not be construed to have
constituted a repayment of any principal of, or interest on, the Original Note.

THIS NOTE SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OR CHOICE OF LAW.

[next page is signature page]

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IN WITNESS WHEREOF, each Co-Borrower has caused this Note to be
executed and delivered by its duly authorized officer, as of the day and year
and at the place first above written.

	
  

  	
   

  	
  P&F INDUSTRIES, INC.

  
	
   

  	
   

  	
  FLORIDA PNEUMATIC MANUFACTURING

  
	
   

  	
   

  	
  CORPORATION

  
	
   

  	
   

  	
  EMBASSY INDUSTRIES, INC.

  
	
   

  	
   

  	
  GREEN MANUFACTURING, INC.

  
	
   

  	
   

  	
  COUNTRYWIDE HARDWARE, INC.

  
	
   

  	
   

  	
  NATIONWIDE INDUSTRIES, INC.

  
	
   

  	
   

  	
  WOODMARK INTERNATIONAL, L.P.

  
	
   

  	
   

  	
  By:

  	
  Countrywide Hardware, Inc., its General

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
  PACIFIC STAIR PRODUCTS, INC.

  
	
   

  	
   

  	
  WILP HOLDINGS, INC.

  
	
   

  	
   

  	
  CONTINENTAL TOOL GROUP, INC.

  
	
   

  	
   

  	
  HY-TECH MACHINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ JOSEPH A. MOLINO, JR.

  
	
   

  	
   

  	
  Joseph A. Molino, Jr., the President of Green

  
	
   

  	
   

  	
   Manufacturing, Inc. and the Vice President
  of each of 

  
	
   

  	
   

  	
  the other corporations named above

  
					

 

 

 3EXHIBIT 10.4

NEW TERM LOAN NOTE

$12,350,000                                                                                                                                         February
12, 2007

FOR VALUE RECEIVED,  P&F
INDUSTRIES, INC., a Delaware corporation (“P&F”), FLORIDA PNEUMATIC MANUFACTURING CORPORATION,
a Florida corporation (“Florida Pneumatic”), EMBASSY
INDUSTRIES, INC., a New York corporation (“Embassy”), GREEN MANUFACTURING, INC., a Delaware
corporation (“Green”), COUNTRYWIDE HARDWARE,
INC., a Delaware corporation (“Countrywide”), NATIONWIDE INDUSTRIES, INC., a Florida
corporation (“Nationwide”), WOODMARK INTERNATIONAL,
L.P., a Delaware limited partnership (“Woodmark”), PACIFIC STAIR PRODUCTS, INC., a Delaware corporation (“Pacific”)
, WILP HOLDINGS, INC., a Delaware
corporation (“WILP”), CONTINENTAL TOOL GROUP,
INC., a Delaware corporation (“Continental”) and HY-TECH MACHINE, INC., a Delaware corporation (“Hy-Tech”;
and collectively with P&F, Florida Pneumatic, Embassy, Green, Countrywide,
Nationwide, Woodmark, Pacific, WILP and Continental the “Co-Borrowers”),
jointly and severally promise to pay to the order of CITIBANK,
N.A. (the “Lender”), on or before the New Term Loan Maturity Date,
the principal amount of TWELVE MILLION THREE
HUNDRED FIFTY THOUSAND ($12,350,000)
DOLLARS.  The outstanding
principal amount hereof is payable in installments in the amounts and on the
dates set forth in the Credit Agreement referred to below, provided that the
final installment, on the New Term Loan Maturity Date, shall be in an amount
equal to the remaining principal amount outstanding on the New Term Loan
Maturity Date.

The Co-Borrowers jointly and severally promise to
pay interest on the unpaid principal amount hereof from the date hereof until
paid in full at the rates and at the times which shall be determined in
accordance with the provisions of the Credit Agreement referred to below.

This Note is one of the “New Term Loan Notes”
referred to in the Credit Agreement, dated as of June 30, 2004, by and among
the Co-Borrowers, Citibank, N.A., as Administrative Agent, and the Lenders
(including the Lender) as are, or may from time to time become, parties thereto
(as same has been and may be further amended, restated, supplemented or
modified, the “Credit Agreement”) and is issued pursuant to and entitled to the
benefits of the Credit Agreement to which reference is hereby made for a more
complete statement of the terms and conditions under which the New Term Loan
evidenced hereby was made and is to be repaid. 
Capitalized terms used herein without definition shall have the meanings
set forth in the Credit Agreement.

Each of the Lender and any subsequent holder of this
Note shall record the date, Type and amount of each payment or prepayment of
principal of the Loans on the grid schedule annexed to this Note; provided,
however, that the failure of the Lender or any holder to set forth the
New Term Loan, payments and other information on the attached grid schedule
shall not in any manner affect the obligation of the Co-Borrowers to repay the
New Term Loan made by the Lender in accordance with the terms of this Note.

This Note is subject to prepayment as provided in
Section 3.03 of the Credit Agreement.

Upon the occurrence of an Event of Default the
unpaid balance of the principal amount of this Note, together with all accrued
but unpaid interest thereon, may become, or may be declared to be, due and
payable in the manner, upon the conditions and with the effect provided in the
Credit Agreement.

 1
 

 

All payments of principal and interest in respect of
this Note shall be made in lawful money of the United States of America in
immediately available funds at the office of Citibank, N.A., as Administrative
Agent for the Lenders under the Credit Agreement, located at 730 Veterans
Memorial Highway, Hauppauge, New York 11788 or at such other place as shall be
designated in writing for such purpose in accordance with the terms of the
Credit Agreement.

No reference herein to the Credit Agreement and no
provision of this Note or the Credit Agreement shall alter or impair the
obligation of the Co-Borrowers, which is absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective times,
and in the currency herein prescribed.

Each Co-Borrower and each endorser of this Note
waive diligence, presentment, protest, demand, and notice of any kind in
connection with this Note.

THIS NOTE SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OR CHOICE OF LAW.

[next page is signature page]

 2
 

 

IN WITNESS WHEREOF, each Co-Borrower has caused this Note to be
executed and delivered by its duly authorized officer, as of the day and year
and at the place first above written.

	
  

  	
   

  	
  P&F INDUSTRIES, INC.

  
	
   

  	
   

  	
  FLORIDA PNEUMATIC MANUFACTURING

  
	
   

  	
   

  	
  CORPORATION

  
	
   

  	
   

  	
  EMBASSY INDUSTRIES, INC.

  
	
   

  	
   

  	
  GREEN MANUFACTURING, INC.

  
	
   

  	
   

  	
  COUNTRYWIDE HARDWARE, INC.

  
	
   

  	
   

  	
  NATIONWIDE INDUSTRIES, INC.

  
	
   

  	
   

  	
  WOODMARK INTERNATIONAL, L.P.

  
	
   

  	
   

  	
  By:

  	
  Countrywide Hardware, Inc., its General

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
  PACIFIC STAIR PRODUCTS, INC.

  
	
   

  	
   

  	
  WILP HOLDINGS, INC.

  
	
   

  	
   

  	
  CONTINENTAL TOOL GROUP, INC.

  
	
   

  	
   

  	
  HY-TECH MACHINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Joseph A.
  Molino, Jr.

  
	
   

  	
   

  	
  Joseph A. Molino, Jr., the President of Green
  Manufacturing, Inc. and the Vice President of each of the other corporations
  named above

  
					

 

 

 3

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