Document:

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                             P & F INDUSTRIES, INC.

                                  EXHIBIT 10.1
                                  ------------

                  SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the
"Agreement"), dated as of May 30, 2001, among P&F INDUSTRIES, INC., a Delaware
corporation (the "Company"), having its principal place of business at 300 Smith
Street, Farmingdale, New York 11735, and RICHARD A. HOROWITZ, residing at 5 Fir
Drive, Kings Point, New York 11024 (the "Executive").

                              W I T N E S S E T H:

                  WHEREAS, the Company and the Executive wish to amend and
restate the Employment Agreement between the parties, dated as of May 28, 1997
(the "Prior Agreement"), as set forth in this Agreement;

                  NOW, THEREFORE, it is hereby agreed by and between the parties
as follows:

1.                EMPLOYMENT, DUTIES AND ACCEPTANCE

                  Subject to the provisions of Article 4, the Executive hereby
agrees to continue his employment with the Company, and the Company hereby
agrees to continue its employment of the Executive, for the term of this
Agreement, as defined in Article 2 hereof. The Executive shall render services
as Chairman, President and Chief Executive Officer of the Company and shall
perform such executive duties which are consistent with his position as he may
be reasonably directed to perform by the Board of Directors of the Company.

2.                TERM OF EMPLOYMENT

                  The term of the Executive's employment pursuant to this
Agreement (the "Term") will commence on the date hereof (the "Effective Date")
and will continue until the seventh anniversary of the Effective Date, unless
sooner terminated pursuant to the provisions of Article 4. Such employment will,
unless

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sooner terminated pursuant to the provisions of Article 4, continue from year to
year thereafter (each such year, an "Additional Term") until one party gives the
other notice of its intention to terminate the Executive's employment at the end
of the Term or an Additional Term, as the case may be, which notice may not be
given more than ninety or less than thirty days prior to the last day of such
Additional Term.

3.                COMPENSATION
                  ------------

                  3.1. The minimum base compensation of the Executive will be
$675,000 per annum. All compensation will be paid in installments as determined
by the Company, but not less frequently than monthly.

                  3.2. The Company will pay or reimburse the Executive for all
reasonable expenses actually incurred or paid by him during the Term and each
Additional Term in connection with the performance of his services under this
Agreement, upon presentation of expense statements or vouchers or such other
supporting information as it may reasonably require, it being understood that
the character of and amount available for such expenses will be in accordance
with applicable policies of the Company and may be fixed in advance by the Board
of Directors of the Company. In addition, the Company shall provide the
Executive, at the Company's expense, with a current model automobile similar to
the automobile furnished to the Executive at the date hereof.

                  3.3. The Executive will also be eligible to receive such
increases in base compensation as the Board of Directors of the Company may from
time to time grant to him (which shall not thereafter be reduced) and to receive
such bonuses as the Board of Directors of the Company, in its discretion, may
allocate to him. In addition, so long as the Company continues to provide
pension, group insurance, medical insurance and vacation benefits for its
senior management generally, the Executive will be entitled to participate
therein as well as in any other employee benefit plan hereafter established for
senior management.

                  3.4. Throughout the Term, the Company shall maintain in effect
at current levels the split-

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dollar life insurance policy currently maintained for the Executive, and shall
continue to pay premiums on the supplemental disability insurance policies
currently maintained by the Executive (or reimburse the Executive for premiums
paid by him).

4.                EVENTS OF TERMINATION
                  ---------------------

                  4.1. In the event of the Executive's death, this Agreement
will terminate. In that event, the Executive's estate will be entitled to his
(i) full salary through the date of death together with any bonus under the then
current executive bonus plan accrued through the date of death; and (ii) an
additional payment equal to his then current salary for an additional twelve
months.
                  4.2. If during the Term or an Additional Term, the Executive
becomes physically or mentally disabled, whether totally or partially, so that
he is prevented from performing his usual duties for a period of 270 consecutive
business days or for 360 business days during any period of 450 business days,
the Company may terminate his employment under this Agreement by 60 days'
advance written notice to the Executive. In that event, the Executive will be
entitled to (i) his full salary through the date of termination, less any amount
received by the Executive under any group policy of disability insurance carried
by the Company in which Executive participates; (ii) an additional payment equal
to his then current salary for an additional twelve months, without regard to
any amount received by the Executive under any policy of disability insurance;
and (iii) during such additional twelve month period, continued use of his
Company car and other perquisites being provided to the Executive prior to such
termination, including continuation of the split-dollar life insurance policy
referenced in Section 3.4 hereof. In addition, during the period of disability
and until (x) the death of the Executive or (y) the re-employment of the
Executive, the Company shall provide the Executive with medical benefits similar
to those provided for other executive officers of the Company, taking into
account medical benefits provided to the Executive by other sources.

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5.                PROTECTION OF INFORMATION: NONCOMPETITION
                  -----------------------------------------

                  5.1. In view of the fact that the Executive's work with the
Company will bring him into close contact with many confidential affairs of the
Company, including matters of a business nature such as information about costs,
profits, markets, sales, plans for future development and other information not
readily available to the public, the Executive will:

                           5.1.1.   keep secret all confidential information
relating to the Company and not disclose the same to anyone outside of the
Company either during or after his employment with the Company, except with the
Company's written consent;

                           5.1.2.   deliver promptly to the Company on
termination of his services hereunder, or at any time the Company may so
request, all memoranda, notes, records, lists, reports and other documents (and
all copies thereof) relating to the business of the Company which he may then
possess or have under his control; and

                           5.1.3.   during his employment and, provided that a
"change in control" (as hereinafter defined) has not occurred, for a period of
three years following the termination of his employment, not, directly or
indirectly, (i) enter the employ of, or render any services to, any person, firm
or corporation engaged in any business competitive with the business of the
Company, (ii) engage in such a business for his own account, or (iii) become
interested in such a business as an individual, partner, shareholder, director,
officer, principal, agent, employee, trustee, consultant or in any other
relationship or capacity. The provisions of this Section 5.1.3 shall not apply
to the Executive following any termination of employment which occurs in
connection with or following a "change in control" (as hereinafter defined).

                  5.2. "Business competitive with the business of the Company"
means, as of any date, any business then being conducted by the Company in which
Executive has been actively engaged.

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6.                CHANGE IN CONTROL
                  -----------------

                  6.1.     The term "change in control" of the Company shall
mean:

                           6.1.1.   an occurrence of a nature that would be
required to be reported in response to (i) Item 6(e) of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934 (the
"Exchange Act") as in effect on the date of this Agreement, or (ii) Item I(a) of
Form 8-K under the Exchange Act, or (iii) if Item 6(e) of Schedule 14A or Item
I(a) of form 8-K is not longer in effect, any regulations issued by the
Securities and Exchange Commission pursuant to the Exchange Act which serve
similar purposes; or

                           6.1.2.   an event in which (i) any "person," as such
term is used in Sections 13(d) and 14(d)(2) of the Exchange Act (a "Person"),
other than the Executive, is or becomes a beneficial owner, directly or
indirectly, of securities of the Company representing 20% or more of the
combined voting power of the Company's then outstanding securities then entitled
to vote for the election of directors or (ii) individuals who, as of the date
hereof, constitute the Board of Directors of the Company (the "Incumbent Board")
cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a director subsequent
to the date hereof whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board of Directors; or

                           6.1.3.   an event in which there shall be consummated
(i) any consolidation, merger or recapitalization of the Company or any similar
transaction involving the Company, whether or not the Company

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is the continuing or surviving corporation, pursuant to which shares of the
Company's common stock, par value $1.00 per share ("Common Stock"), would be
converted into cash, securities or other property, other than a merger of the
Company in which the holders of Common Stock immediately prior to the merger
have the same proportionate ownership of common stock of the surviving
corporation immediately after the merger, (ii) any sale, lease, exchange or
other transfer (in one transaction or a series of related transactions) of all,
or substantially all, of the assets of the Company or (iii) the adoption of a
plan of complete liquidation of the Company (whether or not in connection with
the sale of all or substantially all of the Company's assets) or a series of
partial liquidations of the Company that is dejure or defacto part of a plan of
complete liquidation of the Company; provided, that the divestiture of less than
substantially all of the assets of the Company in one transaction or a series of
related transactions, whether effected by sale, lease, exchange, spin-off, sale
of the stock or merger of a subsidiary or otherwise, or a transaction solely for
the purpose of reincorporating the Company in another jurisdiction, shall not
constitute a change in control.

                  6.2. The "change date" shall be the date on which a change in
control of the Company (as described in paragraph 6.1) occurs.

                  6.3. The term "discharge" shall mean (i) any termination by
the Company of the employment of the Executive which occurs in connection with
or following a change in control of the Company, or (ii) resignation by the
Executive which occurs in connection with or following a change in control,
which is based on a determination by the Executive that, (A) as a result of a
change in circumstances affecting his position, he is unable to exercise the
authorities, powers, functions or duties attached to his position as
contemplated by Article 1 of this Agreement, (B) the compensation, benefits or
perquisites being provided to the Executive have been reduced or adversely
affected, or (C) the Company (or its successor) has breached this Agreement in
any material respect.

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                  6.4. In the event of a discharge, the Company shall pay to the
Executive and provide him with the following:

                           6.4.1.   during the remainder of the Term, the
Company shall continue to pay the Executive his salary as frequently as the
Company then pays other executives and at the same rate as payable immediately
prior to the date of discharge plus the estimated amount of any bonuses to which
he would have been entitled had he remained in the employ of the Company;

                           6.4.2.   during the remainder of the Term, the
Executive shall continue to be entitled to all benefits and service credit for
benefits under medical, insurance, life insurance and other employee benefit
plans, programs and arrangements of the Company as if he were still employed
during such period under this Agreement;

                           6.4.3.   if, despite the provisions of paragraph
6.4.2 above, benefits or service credits under any employee benefit plan shall
not be payable or provided under any such plan to the Executive, or his
dependents, beneficiaries or the Company, the Company itself shall, to the
extent necessary, pay or provide for payment of such benefits and service credit
so as to place the Executive, his dependents, beneficiaries and estate in such
financial position as if the Executive were employed by the Company during the
Term; and

                           6.4.4.   any outstanding Incentive Stock Options held
by the Executive shall be converted to nonqualified stock options on the day
after the last day of the three month period following the date of discharge.

                  6.5. Severance Allowance. In the event of discharge of the
Executive during the Term, the Executive may elect, within 60 days after such
discharge, to be paid a lump sum severance allowance, in lieu of payments to be
made pursuant to 6.4.1 hereof, in an amount equal to 2.99 times the Executive's
"annualized includable compensation for the base period," as those terms are
defined in section 280G of the Internal

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Revenue Code of 1986, as amended (the "Code"). Any payment due hereunder will be
made within five days after the election by the Executive to receive the lump
sum payment.

                  In the event of discharge by reason of an event described in
paragraph 6.3, if the Executive makes an election pursuant to the first sentence
of this paragraph 6.5 to receive a lump sum severance allowance, then, in
addition to such amount, he shall receive (i) in addition to the benefits
provided under any pension plan maintained by the Company, the pension benefits
he would have accrued under such pension plan if he had remained in the employ
of the Company for 36 calendar months after his discharge, which benefits will
be paid concurrently with, and in addition to, the benefits provided under such
pension plan, (ii) incentive compensation (including, but not limited to, the
right to receive and exercise stock options and stock appreciation rights and to
receive restricted stock and grants thereof and similar incentive compensation
benefits) to which he would have been entitled under all incentive compensation
plans maintained by the Company if he had remained in the employ of the Company
for 36 calendar months after his discharge, and (iii) the employee benefits
(including, but not limited to, coverage under any medical, disability and life
insurance arrangements or programs) to which he would have been entitled under
all employee benefit plans, programs or arrangements maintained by the Company
if he had remained in the employ of the Company for 36 calendar months after his
discharge, or the value of the amounts described in clauses (i), (ii) and (iii)
of this sentence. The amount of payments described in the preceding sentence
shall be determined and such payments shall be distributed as soon as it is
reasonably possible.

                  6.6. Parachute Payment. If any payment to be made by the
Company to the Executive pursuant to Article 6 of this Agreement, after taking
into account any other payments to be made by the Company to the Executive, is
not deductible by the Company pursuant to section 280G(a) of the Code, then any
payment to be made pursuant to Article 6 of this agreement shall be reduced by
the smallest amount

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necessary so that no such payment shall fail to be deductible pursuant to
section 280G(a) of the Code. If the Company determines that any payment to the
Executive is subject to limitation pursuant to this paragraph 6.6, it shall
provide the Executive with a written determination within 30 days of the
Executive's discharge during the terms of this Agreement. If the Executive
disagrees with the Company's determination, he shall provide the Company with
written notice of his objection within 15 days of receipt of the Company's
determination. The matter shall then be promptly submitted by either the
Executive or the Company to a "Big 6" accounting firm, not otherwise associated
with the Company or the Executive, for a determination within 30 days
after the date of such submission. The determination of such accounting firm
shall be binding on both the Executive and the Company. The expenses incurred in
connection with any determination will be shared equally by the parties. Any
payment due hereunder shall be paid within five days of the determination by the
Company or the "Big 6" accounting firm, as the case may be.

7.                MISCELLANEOUS.
                  -------------

                  7.1. If any of the provisions contained in this Agreement is
hereafter construed to be invalid or unenforceable, such event will not affect
the remainder of this Agreement, which will be given full effect, without regard
to the invalid portions.

                  7.2. If any of the covenants contained in Article 5, or any
part thereof, is held to be unenforceable because of the duration or scope of
such provision or the area covered thereby, the parties agree that the court
making such determination will have the power to reduce the duration, scope
and/or area of such provision and in its reduced form, such provision will then
be enforceable.

                  7.3. This Agreement has been negotiated and executed in the
State of New York, and will be construed and enforced in accordance with the
laws of the State of New York applicable to agreements made and to be performed
entirely in New York.

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                  7.4. All notices, requests, consents and other communications,
required or permitted to be given hereunder, shall be in writing and shall be
deemed to have been duly given if delivered personally or sent by prepaid
telegram, or mailed first class, postage prepaid, by registered or certified
mail (if possible), addressed to either party at the address set forth in the
preamble to this Agreement (or to such other address as either party shall
designate by notice in writing to the other in accordance herewith).

                  7.5. The article headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

                  7.6. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter hereof, and
supersedes and will supersede all prior agreements, arrangements and
understandings, written or oral, relating to the subject matter including,
without limitation, the Prior Agreement.

                  7.7. This Agreement may be amended, modified, superseded,
canceled, renewed or extended and the terms or covenants hereof may be waived,
only by a written instrument executed by each of the parties hereto, or in the
case of a waiver, by the party waiving compliance. The failure of either party
at any time or times to require performance of any provision hereof will in no
manner affect the right at a later time to enforce the same. No waiver by either
party of the breach of any term or covenant contained in this Agreement, whether
by conduct or otherwise, in any one or more instances, will be deemed to be, or
construed as a further or continuing waiver of, any such breach, or a waiver of
the breach of any other term or covenant contained in this Agreement.

                  IN WITNESS WHEREOF, the parties have duly executed this
Agreement as of the date first above written.

                                          P & F INDUSTRIES, INC.

                                          By:
                                             -----------------------------------

                                          --------------------------------------
                                          Richard Horowitz

                                       34<Page>

              SECOND WAIVER AND MODIFICATION OF CREDIT AGREEMENT

      THIS AGREEMENT is made as of the 30th day of March, 2001, by and between
SOUTHTRUST BANK, an Alabama corporation formerly known as SouthTrust Bank,
National Association acting as a Lender and as Administrative Agent and Funding
Agent (collectively "Agent") pursuant to the Credit Agreement FIRST UNION
NATIONAL BANK, a national banking association acting as a Lender, NATIONAL CITY
BANK, NATIONAL ASSOCIATION, a national banking association acting as a Lender,
SUNTRUST BANK, a Georgia corporation, formerly known as SUNTRUST BANK, SOUTH
FLORIDA, N.A., a national banking association, acting as a Lender, and BARCLAYS
BANK, P.L.C., acting as a Lender (collectively the "Lenders"), and TODHUNTER
INTERNATIONAL, INC., a Delaware corporation (the "Borrower").

                                   WITNESSETH:

      WHEREAS, Lenders, Agent and Borrower entered into a Credit Agreement dated
as of November 17, 1999 (the "Credit Agreement") in connection with which
Lenders made available to Borrower a revolving line of credit in the maximum
principal amount of FIFTEEN MILLION and no/100s Dollars ($15,000,000.00) (the
"Revolving Line of Credit") evidenced by certain Revolving Credit Notes (the
"Revolving Notes") and Term Loans in the maximum principal amount of FIFTY SIX
MILLION and no/100 Dollars ($56,000,000.00) evidenced by certain Term Notes
(collectively with the Revolving Notes the "Notes"), secured and evidenced by
the Loan Documents, as defined in the Credit Agreement; and

      WHEREAS, on or about September 29, 2000, Agent, Lenders and Borrower
entered into a Waiver and Modification of Credit Agreement; and

      WHEREAS, Lenders, Agent and Borrower have agreed to revise certain
additional provisions of the Credit Agreement and for Lenders to waive certain
defaults by Borrower under the Credit Agreement.

      NOW, THEREFORE, in consideration of the mutual promises and covenants of
this agreement and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Lenders, Agent and Borrower agree
as follows:

      1.    RECITALS/TERMS. All of the recitals set forth above are true and
correct and by this reference are made a material part of this Agreement. All
capitalized terms used herein which are defined in the Credit Agreement shall
have the meaning provided therein when used herein unless the context shall
require otherwise.

      2.    REAFFIRMATION OF NOTE.  Borrower hereby acknowledges that the
Notes continue to evidence the Revolving Loans and the Term Loans.

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      3.    INTEREST COVERAGE RATIO.

            Section 10.02 is hereby amended and restated in its entirety as
follows:

            SECTION 10.02 INTEREST COVERAGE RATIO. Maintain the ratio of EBITDA
            to Consolidated Interest Expense determined at the end of each
            fiscal quarter of Borrower for the four consecutive fiscal quarters
            then ended at least as follows:

                                          For any fiscal quarter
                    Ratio               ending during the period:
                    -----               -------------------------
                  3.0 to 1.0        From and including the fiscal
                                    quarter ended March 31, 2000 to and
                                    including the fiscal quarter ending
                                    December 31, 2001
                  4.0 to 1.0        From and including the fiscal
                                    quarter ending March 31, 2002 to
                                    and including the fiscal quarter
                                    ending September 30, 2003
                  5.0 to 1.0        At any time after the fiscal
                                    quarter ending September 30, 2003

      4.    FIXED CHARGE COVERAGE. SECTION 10.03 FIXED CHARGE COVERAGE.
Maintain at all times after December 31, 2000, a Fixed Charge Coverage Ratio
of not less than 1.3 to 1.0 which shall be tested at each fiscal quarter end
of Borrower for the four consecutive quarters then ended.

      5.    FUNDED DEBT. Section 10.04 is hereby amended and restated in its
entirety as follows:

            SECTION 10.04. FUNDED DEBT RATIO. Maintain at all times Funded Debt
            as a percentage of the Funded Debt plus Tangible Net Worth as of the
            end of each of the four fiscal quarters of Borrower as follows:

                                          For any fiscal quarter
                    Ratio               ending during the period:
                    -----               -------------------------
                  0.65 to 1.0       From and including the fiscal
                                    quarter ended March 31, 2000 to and
                                    including the fiscal quarter ending
                                    June 30, 2001
                  0.60 to 1.0       From and including the fiscal
                                    quarter ending September 30, 2001
                                    to and including the fiscal quarter
                                    ending December 31, 2001
                  0.55 to 1.0       From and including the fiscal
                                    quarter ending March 31, 2002 to
                                    and including the fiscal quarter
                                    ending December 31, 2002

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                  0.50 to 1.0       At any time after the fiscal
                                    quarter ending December 31, 2002

      6.    FUNDED DEBT TO EBITDA.  Section 10.05 is amended and restated in
its entirety as follows:

            SECTION 10.05. FUNDED DEBT TO EBITDA. Maintain a ratio of Funded
            Debt to EBITDA as of the end of any fiscal quarter of Borrower of
            not more than the following. Such ratio shall be measured on the
            basis of the financial results of Borrower for the most recent four
            (4) fiscal quarters of Borrower ending on the dates of measurement.

                                          For any fiscal quarter
                    Ratio               ending during the period:
                    -----               -------------------------
                  3.75 to 1.0       From and including the fiscal
                                    quarter ended March 31, 2000 to and
                                    including the fiscal quarter ending
                                    September 30, 2000.
                  3.50 to 1.0       From and including the fiscal
                                    quarter ending December 31, 2000 to
                                    and including the fiscal quarter
                                    ending September 30, 2001
                  3.0 to 1.0        From and including the fiscal
                                    quarter ending December 31, 2001 to
                                    and including the fiscal quarter
                                    ending March 31, 2002
                  2.50 to 1.0       At any time after the fiscal
                                    quarter ending thereafter.

      7.    LIQUIDITY.  Section 10.06 is hereby added to the Agreement to
read as follows:

      Maintain a minimum Liquidity of Four Million and no/100s Dollars
($4,000,000.00) at all times during the term of this Agreement. "Liquidity" is
defined as unencumbered cash or marketable securities owned by Borrower and held
in an account with the Agent or with a depository acceptable to the Agent.
Written proof of such balance shall be submitted to the Agent within ten (10)
days after the end of each fiscal quarter of Borrower.

      8.    WAIVERS. Subject to the terms of this Modification, the Lenders
hereby agree to waive any Default or Event of Default which may have occurred
(i) as of December 31, 2000, as a result of the non-compliance by the
Borrower as of December 31, 2000 with the provisions of Section 10.04 (Funded
Debt Ratio) of the Credit Agreement; and (ii) as of December 31, 2000 as a
result of the non-compliance by the Borrower with the provisions of Section
10.03 (Fixed Charge Coverage) of the Credit Agreement.

      9.    LIMITATION OF WAIVERS. The foregoing waivers are expressly
limited to the matters stated herein and shall apply solely to the specific
provisions of the Credit Agreement set forth above and, in the case of
Sections 10.03 and 10.04 of the Credit Agreement, solely for the date set
forth above. The foregoing waivers shall not be deemed or construed as a
waiver of

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or consent to (i) the non-compliance by the Borrower with any other covenant,
term or condition of the Credit Agreement or any of the Loan Documents, or
(ii) any further non-compliance by the Borrower subsequent to December 31,
2000 with the provisions of Sections 10.03 and 10.04 of the Credit Agreement,
as amended herein.

      10.   WARRANTS. Borrower hereby warrants and represents to Lenders
that, since the date of the Credit Agreement other than violations of the
financial covenant contained in Sections 10.03 and 10.04 of the Credit
Agreement, Borrower has been and is in compliance with all provisions of the
Credit Agreement and all other Loan Documents and that no Default or Event of
Default has occurred thereunder nor has any event occurred or failed to occur
which with the passage of time or the giving of notice or both would comprise
such a Default or Event of Default.

      11.   RATIFICATION. Borrower hereby ratifies and confirms each of its
obligations and indebtedness under the Credit Agreement and each of the other
Loan Documents, as amended hereby, and hereby represents and warrants to the
Lenders and the Agent that Borrower neither has nor claims any defenses,
counterclaims or offsets to any such obligations or indebtedness.

      12.   FEES. The effectiveness of this Modification and the amendments
contemplated herein are expressly conditioned upon the payment by the Borrower
to the Agent for the prorata benefit of the Lenders an amendment fee equal to
$152,500.00 and reimbursement by the Borrower of the Agent and each of the
Lenders for all reasonable attorneys' fees and expenses incurred by each of them
in connection with this Modification.

      13.   MISCELLANEOUS.

            a. This agreement shall be governed by and construed in accordance
      with the law of the State of Florida. Paragraph headings used herein are
      for convenience only and shall not be used to interpret any term hereof.
      The Credit Agreement shall continue in full force and effect as modified
      by this Modification. In the event the terms of this Modification conflict
      with the terms of the Credit Agreement, the terms of this Modification
      shall control.

            b. This Modification constitutes the entire agreement among the
      parties hereto and supersedes all prior agreements, understandings,
      negotiations and discussions, both written and oral among the parties
      hereto with respect to the subject matter hereof, all of which prior
      agreements, understanding, negotiations and discussions, both written and
      oral, are merged into this Modification. All provisions of the Credit
      Agreement and each of the other Loan Documents shall remain in full force
      and effect as modified by this Agreement. Without limiting the generality
      of any of the provisions of this Modification, nothing herein or in any
      instrument or agreement shall be deemed or construed to constitute a
      novation, satisfaction or refinancing of all or any portion of the Loan or
      in any manner affect or impair the lien or priority of the Credit
      Agreement or any of the Loan Documents as amended hereby.

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            c. This Modification may be executed in any number of counterparts
      with each executed counterpart constituting an original, but altogether
      constituting but one and the same instrument.

            d. This Modification shall be binding upon and inure to the benefit
      of the Borrower, the Agent and the Lenders and their respective heirs,
      legal representatives, executors, successors and assigns from March 30,
      2001 forward.

      14.   RELEASE. IN CONSIDERATION OF THE ACCOMMODATIONS PROVIDED HEREIN,
THE BORROWER HEREBY UNCONDITIONALLY, IRREVOCABLY AND FOREVER RELEASES,
ACQUITS AND DISCHARGES THE LENDERS AND EACH OF THE LENDERS' RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND COUNSEL FROM ANY AND ALL CLAIMS,
DEMANDS AND CAUSES OF ACTION THAT ANY OF THEM HAD, NOW HAS OR MAY IN THE
FUTURE HAVE AGAINST ANY ONE OR MORE OF THE LENDERS OR ANY ONE OR MORE OF THE
LENDERS' OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR COUNSEL FOR THE ACTS OR
OMISSIONS OF ANY OF THE FOREGOING PARTIES FROM THE BEGINNING OF TIME THROUGH,
TO AND INCLUDING THE DATE OF THE EFFECTIVENESS OF THIS MODIFICATION,
INCLUDING, WITHOUT LIMITATION, ANY CLAIMS ARISING OUT OF OR CONNECTED IN ANY
MANNER WITH THE TRANSACTIONS CONTEMPLATED HEREIN OR IN THE CREDIT AGREEMENT,
AS AMENDED HEREBY OR ANY OTHER LOAN DOCUMENTS, AS THE SAME MAY BE AMENDED
HEREBY, AS THE CASE MAY BE.

      15.   WAIVER OF JURY TRIAL. THE BORROWER, THE AGENT AND THE LENDERS HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS MODIFICATION OR ANY AGREEMENT EXECUTED IN
CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS,
(WHETHER VERBAL OR WRITTEN) OR ACTIONS BY ANY PARTY. THIS PROVISION IS A
MATERIAL INDUCEMENT TO THE LENDERS ENTERING INTO THIS MODIFICATION AND MAKING
ANY LOAN, ADVANCE OR OTHER EXTENSION OF CREDIT TO THE BORROWER. FURTHER, THE
BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE LENDERS, NOR
THE AGENT OR ANY OF THE AGENT'S COUNSEL OR THE LENDERS' COUNSEL, HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE AGENT OR ANY OF THE AGENT'S
COUNSEL OR THE LENDERS WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO
ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. NO REPRESENTATIVE OR AGENT
OF THE LENDERS, NOR THE AGENT OR ANY OF THE AGENT'S COUNSEL OR THE LENDERS'
COUNSEL HAS THE AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION.

      IN WITNESS WHEREOF, the Borrower, the Agent and Lenders have caused this
agreement to be effective as of the day and year set forth above.

<Page>

                                    BORROWER:
Witnesses:                          TODHUNTER INTERNATIONAL, INC., a
                                    Delaware corporation

/s/ D. Guy Guenthner                By: /s/ A. Kenneth Pincourt, Jr.
------------------------------         ----------------------------------------
Print Name: D. Guy Guenthner            A. Kenneth Pincourt, Jr.
           -------------------
                                    Its: Chairman of the Board of Directors/CEO

/s/ Edward A. Kay
------------------------------
Print Name: Edward A. Kay
           -------------------

STATE OF
COUNTY OF

      The foregoing instrument was acknowledged before me this 29th day of
May, 2001 by A. Kenneth Pincourt, Jr., as Chairman of the Board of
Directors/CEO of Todhunter International, Inc. a Delaware corporation, on
behalf of the corporation.  He/she is personally known to me or has produced
____________________ (type of identification) as identification.

                                    /s/ Edward A. Kay
                                    -------------------------------------------
                                    NOTARY PUBLIC, STATE OF

                                    Edward A. Kay, Commission # CC 934433
                                    -------------------------------------------
                                    (Print, Type or Stamp Commissioned Name
                                    of Notary Public)

<Page>

                                          THE AGENT:

                                          SOUTHTRUST BANK, FORMERLY KNOWN AS
                                          SOUTHTRUST BANK, NATIONAL ASSOCIATION

Witnesses:

/s/ Antonio Duboy                         By: /s/ D. Guy Guenthner
------------------------------               ----------------------------------
Print Name: Antonio Duboy                 Print Name: D. Guy Guenthner
           -------------------                       --------------------------
                                          Title: Senior Vice President
                                                -------------------------------

/s/ Michael Simm
Print Name: Michael Simm
           -------------------

STATE OF Florida
COUNTY OF Broward

      The foregoing instrument was acknowledged before me this 29th day of
May, 2001 by D. Guy Guenthner, as Sr. Vice Pres. of SouthTrust Bank, on
behalf of the bank. He/she is personally known to me or has produced
____________________ (type of identification) as identification.

                                    /s/ Linda C. Verdi
                                    -------------------------------------------
                                    NOTARY PUBLIC, STATE OF

                                    Linda C. Verdi, Commission # CC706113
                                    -------------------------------------------
                                    (Print, Type or Stamp Commissioned Name of
                                    Notary Public)

<Page>

                                          THE LENDERS:

                                          SOUTHTRUST BANK, FORMERLY KNOWN AS
                                          SOUTHTRUST BANK, NATIONAL ASSOCIATION

Witnesses:

/s/ Antonio Duboy                         By: /s/ D. Guy Guenthner
------------------------------               ----------------------------------
Print Name: Antonio Duboy                 Print Name: D. Guy Guenthner
           -------------------                       --------------------------
                                          Title: Senior Vice President
                                                -------------------------------

/s/ Michael Simm
Print Name: Michael Simm
           -------------------

STATE OF Florida
COUNTY OF Broward

      The foregoing instrument was acknowledged before me this 29th day of
May, 2001 by D. Guy Guenthner, as Senior Vice Pres. of SouthTrust Bank, on
behalf of the bank.  He/she is personally known to me or has produced
____________________ (type of identification) as identification.

                                    /s/ Linda C. Verdi
                                    -------------------------------------------
                                    NOTARY PUBLIC, STATE OF

                                    Linda C. Verdi, Commission # CC706113
                                    -------------------------------------------
                                    (Print, Type or Stamp Commissioned Name of
                                    Notary Public)

<Page>

                                          FIRST UNION NATIONAL BANK

Witnesses:

/s/ Denise H. Murphy                      By: /s/ David F. Abee
------------------------------            -------------------------------------
Print Name: Denise H. Murphy              Print Name: David F. Abee
           -------------------                       --------------------------
                                          Title: Vice President
                                                -------------------------------

/s/ Cassandra Griffith
------------------------------
Print Name: Cassandra Griffith

STATE OF
COUNTY OF

      The foregoing instrument was acknowledged before me this 22nd day of
May, 2001 by David F. Abee, as ________________ of First Union National Bank,
on behalf of the bank. He/she is personally known to me or has produced
____________________ (type of identification) as identification.

                                    /s/ Laura S. Forbes
                                    -------------------------------------------
                                    NOTARY PUBLIC, STATE OF

                                    Laura S. Forbes, Commission # CC724926
                                    -------------------------------------------
                                    (Print, Type or Stamp Commissioned Name of
                                    Notary Public)

<Page>

                                      SUNTRUST BANK, FORMERLY KNOWN AS SUNTRUST
                                      BANK, SOUTH FLORIDA, N.A.

Witnesses:

/s/ Michael Miller                    By: /s/ Jeffrey S. Wolfe
------------------------------           --------------------------------------
Print Name: Michael Miller            Print Name: Jeffrey S. Wolfe
           -------------------                   ------------------------------
                                      Title: Vice President
                                            -----------------------------------

/s/ Doreen Fischer
------------------------------
Print Name: Doreen Fischer
           -------------------

STATE OF Florida
COUNTY OF Palm Beach

      The foregoing instrument was acknowledged before me this 30th day of
May, 2001 by Jeffrey S. Wolfe, as Vice President of SunTrust Bank, on behalf
of the bank. He/she is personally known to me or has produced
____________________ (type of identification) as identification.

                                    /s/ Leticia R. Morgan
                                    -------------------------------------------
                                    NOTARY PUBLIC, STATE OF

                                    Leticia R. Morgan, Commission # CC987894
                                    -------------------------------------------
                                    (Print, Type or Stamp Commissioned Name of
                                    Notary Public)

<Page>

                                       NATIONAL CITY BANK , NATIONAL ASSOCIATION

Witnesses:

/s/ Ellen M. Brown                     By: /s/ Kelly L. Moyer
------------------------------            -------------------------------------
Print Name: Ellen M. Brown             Print Name: Kelly L. Moyer
           -------------------                    -----------------------------
                                       Title: Vice President
                                             ----------------------------------

/s/ Marilyn Martinez
------------------------------
Print Name: Marilyn Martinez

STATE OF OHIO
COUNTY OF

      The foregoing instrument was acknowledged before me this 24th day of
May, 2001 by Kelly L. Moyer, as Vice Pres. of National City Bank, National
Association, on behalf of the bank.  He/she is personally known to me or has
produced N/A (type of identification) as identification.

                                /s/ Janet R. Jack
                                -----------------------------------------------
                                NOTARY PUBLIC, STATE OF OHIO

                                Janet R. Jack, Commission Expires June 16, 2004
                                -----------------------------------------------
                                (Print, Type or Stamp Commissioned Name of
                                Notary Public)

<Page>

                                          BARCLAYS BANK, P.L.C.

Witnesses:

                                          By: /s/ Sergio Cuervo
------------------------------               ----------------------------------
Print Name:                               Print Name: Sergio Cuervo
           -------------------                       --------------------------
                                          Title: Director
                                                -------------------------------

/s/ Gisela Castellanos
------------------------------
Print Name: Gisela Castellanos

STATE OF
COUNTY OF

      The foregoing instrument was acknowledged before me this 25th day of
May, 2001 by Sergio Cuervo, as Director of Barclays Bank, P.L.C., on behalf
of the bank. He/she is personally known to me or has produced personally
known (type of identification) as identification.

                                    /s/ Gisela Castellanos
                                    -------------------------------------------
                                    NOTARY PUBLIC, STATE OF

                                    Gisela Castellanos, Commission # CC 888343
                                    -------------------------------------------
                                    (Print, Type or Stamp Commissioned Name of
                                    Notary Public)

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