Document:

Exhibit 10.2

 

April 17, 2020

 

P&F
INDUSTRIES, INC., as Borrower Agent

445 Broadhollow Road

Suite 100

Melville, New York 11747

Attn: Joseph A. Molino, Jr.

 

Payroll Protection Program Consent

 

Ladies and Gentlemen:

 

Reference is made to
that certain 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, the “Loan Agreement”), 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”), EXHAUST TECHNOLOGIES, INC., a Delaware
corporation, (“Exhaust”), and HY-TECH ILLINOIS, INC., a Delaware corporation formerly known as DaVinci
Purchase Corp. (“HTI”; and together with Jiffy, ATSCO, Properties, Continental, Countrywide, Embassy and Exhaust,
collectively, “Guarantors” and each, a “Guarantor”), the financial institutions party from
time to time to the Loan Agreement as “Lenders” (collectively, “Lenders”), and CAPITAL ONE,
NATIONAL ASSOCIATION, a national banking association, as agent for Lenders (“Agent”). Capitalized terms
used herein but not otherwise defined herein shall have the meanings attributed thereto in the Loan Agreement.

 

Borrowers have advised
Agent and Lenders that P&F intends to or has applied for a loan pursuant to Section 1102 of the Coronavirus Aid, Relief, and
Economic Security Act (together with all regulations and guidance issued by any Governmental Authority with respect thereto, and
as in effect on the date hereof, the “Payroll Protection Program”, and such loan the “PPP Loan”).

 

Subject to the terms
and conditions set forth in this letter, Agent and Lenders party hereto consent to P&F incurring the PPP Loan on an unsecured
basis and agrees that such PPP Loan shall be deemed not to constitute Debt under the Loan Agreement for any purpose except to the
extent such PPP Loan is outstanding from and after the first anniversary of the date such PPP Loan is incurred (or such later date
as Agent shall otherwise agree in writing); provided, that Borrowers and Guarantors (i) shall provide Agent with true, correct
and complete copies of the PPP Loan application and related loan documentation, (ii) use the proceeds of the PPP Loan solely for
allowable purposes (whether or not forgivable) under the Payroll Protection Program, and (iii) promptly take all applicable actions,
not later than 45 days after the eight-week period immediately following receipt of the PPP Loan proceeds, to apply for forgiveness
of the PPP Loan in accordance with the Payroll Protection Program (and provide documentation, and status, of such forgiveness to
Agent). The incurrence of the PPP Loan shall constitute a representation on behalf of the Borrowers and Guarantors that (i) the
PPP Loan shall remain unsecured and shall not adversely affect any right, remedy or Lien of Agent with respect to the Obligations
under the Loan Agreement, and (ii) except as has been obtained, no consent of any other person or entity (including, without limitation,
shareholders or creditors of any Borrower or Guarantor) is required in connection with such incurrence of the PPP Loan.

 

     

     

    

 

Borrowers have further
advised Agent that BNB Bank (“BNB”), the lender servicing the PPP Loan, requires that P&F establish and
maintain a deposit account at BNB in connection with the PPP Loan (the “PPP Loan Account”). Notwithstanding
anything contained in the Loan Agreement, Agent and Lenders hereby consent to the establishment and maintenance of the PPP Loan
Account, provided that Borrowers and Guarantors shall (a)  use the PPP Loan Account exclusively for receiving and disbursing
the proceeds of the PPP Loan, (b) not deposit (or have deposited) into the PPP Loan Account monies from any other source, including,
without limitation, the proceeds of any Collateral, and (c) shall deliver to Agent, promptly upon Agent’s request, a copy
of the most recent account statement received from BNB (or other documentation acceptable to Agent evidencing the account balance
and account activity) with respect to the PPP Loan Account.

 

This letter agreement
is limited solely to the specific matters listed above and shall not be deemed to be a waiver of any Default or Event of Default
or a consent to or an amendment of any other provision of the Loan Agreement. Borrower hereby represents and warrants that no Default
or Event of Default has occurred and is continuing as of the date hereof. All terms of the Loan Agreement and the other Loan Documents,
as modified hereby, remain in full force and effect. Execution and delivery of an executed counterpart of this letter agreement
by facsimile transmission, electronic mail in pdf form or other electronic signature shall be as effective as execution and delivery
of a manually executed counterpart hereof; provided, however, that upon request by Agent the parties agree to promptly provide
hand-signed original signatures hereto.

 

[Signature page to follow]

 

     

     

    

 

This letter agreement
shall not become effective unless and until it has been accepted and agreed to in writing by Borrowers and Guarantors, which acceptance
and agreement shall be evidenced by Borrowers’ and Guarantors’ signing a copy of this letter agreement in the space
indicated below and returning the same to Agent.

 

	 	Very truly yours,
	 	 
	 	CAPITAL
                    ONE, NATIONAL ASSOCIATION,

                    as Agent and Lender

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

 

 

ACKNOWLEDGED
AND AGREED:

 

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.

EXHAUST TECHNOLOGIES, INC.

HY-TECH ILLINOIS, INC.

 

 

By:         /s/ Joseph
A. Molino, Jr.                        

Name: Joseph A. Molino, Jr.

Title: Vice President

 

 

[Payroll
Protection Program Consent]Exhibit 10.1

 

April 20, 2020

 

This letter is to confirm the undersigned’s
commitment that, through December 7, 2020 (the Company’s scheduled liquidation date), if funds are needed by Tuscan Holdings
Corp. (the “Company”) and upon request by the Company, the undersigned will provide loans of up to an aggregate of
$500,000 to the Company. This commitment supersedes any prior commitment. These loans will be non-interest bearing, unsecured and
will be repaid upon the consummation of a business combination. The undersigned understands that if the Company does not consummate
a business combination (as described in the Company’s prospectus, dated March 5, 2019), all amounts loaned to the Company
hereunder will be forgiven except to the extent that the Company has funds available to it outside of its trust account established
in connection with the Company’s initial public offering.

 

TUSCAN HOLDINGS ACQUISITION LLC

 

By: /s/ Stephen A. Vogel

Stephen A. Vogel, Managing Member

 

    4Exhibit 10.2

 

PROMISSORY NOTE

 

		$300,000	As of April 21, 2020

 

Tuscan Holdings
Corp. (“Maker”) promises to pay to the order of Tuscan Holdings Acquisition LLC or its successors or assigns (“Payee”)
the principal sum of Three Hundred Thousand Dollars and No Cents ($300,000) in lawful money of the United States of America, on
the terms and conditions described below.

1.                 
 Principal. The principal balance of this Note shall be repayable on the consummation of the Maker’s initial
merger, stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with
one or more businesses or entities (a “Business Combination”). Payee understands that if a Business Combination is
not consummated, this Note will not be repaid and all amounts owed hereunder will be forgiven except to the extent that the Maker
has funds available to it outside of its trust account established in connection with its initial public offering.

2.                 
 Interest. No interest shall accrue on the unpaid principal balance of this Note.

3.                 
 Application of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection
of any sum due under this Note, including (without limitation) reasonable attorneys’ fees, then to the payment in full of
any late charges and finally to the reduction of the unpaid principal balance of this Note.

4.                 
 Events of Default. The following shall constitute Events of Default:

(a)               
 Failure to Make Required Payments. Failure by Maker to pay the principal of this Note within five (5) business days
following the date when due.

(b)               
 Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now
constituted or hereafter amended, or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation
or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee,
custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it
of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or
the taking of corporate action by Maker in furtherance of any of the foregoing.

(c)               
 Involuntary Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises
in respect of maker in an involuntary case under the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation
of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

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5.                 
 Remedies.

(a)               
 Upon the occurrence of an Event of Default specified in Section 4(a), Payee may, by written notice to Maker, declare
this Note to be due and payable, whereupon the principal amount of this Note, and all other amounts payable thereunder, shall
become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

(b)               
 Upon the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all
other sums payable with regard to, this Note shall automatically and immediately become due and payable, in all cases without
any action on the part of Payee.

6.                 
 Conversion. Upon consummation of a Business Combination, the Payee shall have the option, but not the obligation,
to convert the principal balance of this Note, in whole or in part at the option of the Payee, into units (“Units”)
of the Maker at a price of $10.00 per Unit, each Unit being identical to the “private units” (as defined in Maker’s
final prospectus dated March 5, 2019). As promptly after notice by Payee to Maker to convert the principal balance of this Note,
which must be made at least 24 hours prior to the consummation of the Business Combination, as reasonably practicable and after
Payee’s surrender of this Note, Maker shall have issued and delivered to Payee, without any charge to Payee, a certificate
or certificates (issued in the name(s) requested by Payee) for the number of Units of Maker issuable upon the conversion of this
Note.

7.                 
 Waivers. Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand,
notice of dishonor, protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings
instituted by Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future
laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment,
levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment;
and Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of
execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

8.                 
 Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance,
default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the
liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or
modification granted or consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications
that may be granted by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers,
guarantors, or sureties may become parties hereto without notice to them or affecting their liability hereunder.

 

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9.                 
 Notices. Any notice called for hereunder shall be deemed properly given if (i) sent by certified mail, return receipt
requested, (ii) personally delivered, (iii) dispatched by any form of private or governmental express mail or delivery service
providing receipted delivery, (iv) sent by telefacsimile or (v) sent by e-mail, to the following addresses or to such other address
as either party may designate by notice in accordance with this Section:

 

If to Maker:

 

Tuscan Holdings Corp.

135 E. 57th St., 18th Floor

New York, NY 10022

 

If to Payee:

 

Stephen Vogel

135 E. 57th St. , 18th Floor

New York, NY

 

Notice shall be deemed given on the
earlier of (i) actual receipt by the receiving party, (ii) the date shown on a telefacsimile transmission confirmation, (iii) the
date on which an e-mail transmission was received by the receiving party’s on-line access provider (iv) the date reflected
on a signed delivery receipt, or (vi) two (2) Business Days following tender of delivery or dispatch by express mail or delivery
service.

10.             
 Construction. This Note shall be construed and enforced in accordance with the domestic, internal law, but not the
law of conflict of laws, of the State of New York.

11.             
 Severability. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

IN WITNESS WHEREOF,
Maker, intending to be legally bound hereby, has caused this Note to be duly executed by its Chief Financial Officer the day and
year first above written.

TUSCAN HOLDINGS CORP.

 

By: /s/ Ruth Epstein

Name: Ruth Epstein

Title: Chief Financial Officer

 

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