Document:

<PAGE>

                                                                     EXHIBIT 4.3

                            IVIVI TECHNOLOGIES, INC.
                   2004 AMENDED AND RESTATED STOCK OPTION PLAN

               (As Amended and Restated Effective August 28, 2006)

                                    ARTICLE I

                                    THE PLAN

         1.1 TITLE. This plan is entitled the "Ivivi Technologies, Inc. 2004
Amended and Restated Stock Option Plan" (the "Plan").

         1.2 PURPOSE. The purpose of the Plan is to enhance the long-term
stockholder value of Ivivi Technologies, Inc., a New Jersey corporation (the
"Company") by offering opportunities to directors, officers, employees and
eligible consultants of the Company and any Related Company, as defined below,
to acquire and maintain stock ownership in the Company in order to give these
persons the opportunity to participate in the Company's growth and success, and
to encourage them to remain in the service of the Company or a Related Company.

                                   ARTICLE II

                                   DEFINITIONS

         The following terms will have the following meanings in the Plan:

         "Board" means the Board of Directors of the Company.

         "Cause," unless otherwise defined in the instrument evidencing the
award or in an employment or services agreement between the Company or a Related
Company and a Participant, means a material breach of the employment or services
agreement, dishonesty, fraud, misconduct, unauthorized use or disclosure of
confidential information or trade secrets, or conviction or confession of a
crime punishable by law (except minor violations), in each case as determined by
the Plan Administrator, and its determination shall be conclusive and binding.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

         "Common Stock" means the common stock, no par value, of the Company.

         "Consultant Participant" means a Participant who is defined as a
Consultant Participant in Article 5.

         "Corporate Transaction," unless otherwise defined in the instrument
evidencing the Option or in a written employment or services agreement between
the Company or a Related Company and a Participant, means consummation of
either:

<PAGE>

                  (a) a merger or consolidation of the Company with or into any
         other corporation, entity or person; or

                  (b) a sale, lease, exchange or other transfer in one
         transaction or a series of related transactions of all or substantially
         all the Company's outstanding securities or all or substantially all
         the Company's assets.

         Notwithstanding the foregoing, a Corporate Transaction shall not
include a Related Party Transaction.

         "Disability," unless otherwise defined by the Plan Administrator, means
a mental or physical impairment of the Participant that is expected to result in
death or that has lasted or is expected to last for a continuous period of 12
months or more and that causes the Participant to be unable, in the opinion of
the Company, to perform his or her duties for the Company or a Related Company
and to be engaged in any substantial gainful activity.

         "Employment Termination Date" means, with respect to a Participant, the
first day upon which the Participant no longer has an employment or service
relationship with the Company or any Related Company.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Fair Market Value" means the per share value of the Common Stock
determined as follows: (a) if the Common Stock is listed on an established stock
exchange or exchanges or the NASDAQ National Market, the closing price per share
on the last trading day immediately preceding such date on the principal
exchange on which it is traded or as reported by NASDAQ; (b) if the Common Stock
is not then listed on an exchange or the NASDAQ National Market, but is quoted
on the NASDAQ Small Cap Market, the NASDAQ electronic bulletin board or the
National Quotation Bureau pink sheets, the average of the closing bid and asked
prices per share for the Common Stock as quoted by NASDAQ or the National
Quotation Bureau, as the case may be, on the last trading day immediately
preceding such date; or (c) if there is no such reported market for the Common
Stock for the date in question, then an amount determined in good faith by the
Plan Administrator.

         "Grant Date" means the date on which the Plan Administrator completes
the corporate action relating to the grant of an Option or such later date
specified by the Plan Administrator, and on which all conditions precedent to
the grant have been satisfied, provided that conditions to the exercisability or
vesting of Options shall not defer the Grant Date.

         "Incentive Stock Option" means an Option granted with the intention, as
reflected in the instrument evidencing the Option, that it qualify as an
"incentive stock option" as that term is defined in Section 422 of the Code.

         "IPO Effective Date" means the date on which the Securities and
Exchange Commission declares effective a registration statement that describes
the initial public offering of the Common Stock. No assurances are given that
the Company will ever seek to effect or consummate an initial public offering.

                                      -2-
<PAGE>

         "Non-qualified Stock Option" means an Option other than an Incentive
Stock Option.

         "Option" means the right to purchase Common Stock granted under Article
7.

         "Option Expiration Date" has the meaning set forth in Article 7.6.

         "Option Term" has the meaning set forth in Article 7.3.

         "Outside Director" means a member of the Board who is not an employee
of the Company or a Related Company.

         "Participant" means the person to whom an Option is granted and who
meets the eligibility requirements imposed by Article 5, including Consultant
Participants, as defined in Article 5.

         "Plan Administrator" has the meaning set forth in Article 3.1.

         "Related Company" means any entity that, directly or indirectly, is in
control of or is controlled by the Company.

         "Related Party Transaction" means (a) a merger or consolidation of the
Company in which the holders of shares of Common Stock immediately prior to the
merger hold at least a majority of the shares of Common Stock in the Successor
Corporation immediately after the merger; (b) a sale, lease, exchange or other
transaction in one transaction or a series of related transactions of all or
substantially all the Company's assets to a wholly-owned subsidiary corporation;
(c) a mere reincorporation of the Company; or (d) a transaction undertaken for
the sole purpose of creating a holding company that will be owned in
substantially the same proportion by the persons who held the Company's
securities immediately before such transaction.

         "Retirement," unless otherwise defined by the Plan Administrator from
time to time for purposes of the Plan, means retirement on or after the
individual's normal retirement date under the Company's 401(k) plan or other
similar successor plan applicable to salaried employees.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Successor Corporation" has the meaning set forth in Article 12.3.1.

         "Stock Split" means a stock split of 1.625 shares for each outstanding
share of Common Stock on or before the IPO Effective Date.

         "Vesting Commencement Date" means the Grant Date or such other date
selected by the Plan Administrator as the date from which the Option begins to
vest for purposes of Article 7.4.

                                      -3-
<PAGE>

                                   ARTICLE III

                                 ADMINISTRATION

         3.1 PLAN ADMINISTRATOR. The Plan shall be administered by the Board or
a committee appointed by, and consisting of two or more members of, the Board
(the "Plan Administrator"). If and so long as the Common Stock is registered
under Section 12(b) or 12(g) of the Exchange Act, the Board shall consider in
selecting the members of any committee acting as Plan Administrator, with
respect to any persons subject or likely to become subject to Section 16 of the
Exchange Act, the provisions regarding (a) "outside directors" as contemplated
by Section 162(m) of the Code and (b) "non-employee directors" as contemplated
by Rule 16b-3 under the Exchange Act. Committee members shall serve for such
term as the Board may determine, subject to removal by the Board at any time. At
any time when no committee has been appointed to administer the Plan, then the
Board will be the Plan Administrator.

         3.2 ADMINISTRATION AND INTERPRETATION BY PLAN ADMINISTRATOR. Except for
the terms and conditions explicitly set forth in the Plan, the Plan
Administrator shall have exclusive authority, in its discretion, to determine
all matters relating to Options under the Plan, including the selection of
individuals to be granted Options, the type of Options, the number of shares of
Common Stock subject to an Option, all terms, conditions, restrictions and
limitations, if any, of an Option and the terms of any instrument that evidences
the Option. The Plan Administrator shall also have exclusive authority to
interpret the Plan and the terms of any instrument evidencing the Option and may
from time to time adopt and change rules and regulations of general application
for the Plan's administration. The Plan Administrator's interpretation of the
Plan and its rules and regulations, and all actions taken and determinations
made by the Plan Administrator pursuant to the Plan, shall be conclusive and
binding on all parties involved or affected. The Plan Administrator may delegate
administrative duties to such of the Company's officers as it so determines.

                                   ARTICLE IV

                            STOCK SUBJECT TO THE PLAN

         4.1 AUTHORIZED NUMBER OF SHARES. Subject to adjustment from time to
time as provided in Article 11.1, the number of shares of Common Stock available
for issuance under the Plan shall be 1,500,000 shares.

         4.2 REUSE OF SHARES. Any shares of Common Stock that have been made
subject to an Option that cease to be subject to the Option (other than by
reason of exercise or settlement of the Option to the extent it is exercised for
or settled in shares) shall again be available for issuance in connection with
future grants of Options under the Plan. In the event shares issued under the
Plan are reacquired by the Company pursuant to any forfeiture provision or right
of repurchase, such shares shall again be available for the purposes of the
Plan; provided, however, that the maximum number of shares that may be issued
upon the exercise of Incentive Stock Options shall equal the share number stated
in Article 4.1, subject to adjustment from time to time as provided in Article
12.1; and provided, further, that for purposes of Article 4.3, any such shares
shall be counted in accordance with the requirements of Section 162(m) of the
Code.

                                      -4-
<PAGE>

         4.3 LIMITATIONS. Subject to adjustment from time to time as provided in
Article 12.1, not more than an aggregate of 1,500,000 shares of Common Stock
shall be available for issuance pursuant to grants of Options under the Plan. No
participant shall be granted, in any fiscal year of the Company, Options to
purchase more than the number of shares of Common Stock authorized for issuance
under the Plan.

                                    ARTICLE V

                                   ELIGIBILITY

         An Option may be granted to any officer, director or employee of the
Company or a Related Company that the Plan Administrator from time to time
selects. An Option may also be granted to any consultant, agent, advisor or
independent contractor who provides services to the Company or any Related
Company (a "Consultant Participant"), so long as such Consultant Participant (a)
is a natural person or an alter ego entity of the natural person providing the
services; (b) renders bona fide services that are not in connection with the
offer and sale of the Company's securities in a capital-raising transaction; and
(c) does not directly or indirectly promote or maintain a market for the
Company's securities.

                                   ARTICLE VI

                                     OPTIONS

         6.1 FORM AND GRANT OF OPTIONS. The Plan Administrator shall have the
authority, in its sole discretion, to determine the type or types of Options to
be granted under the Plan.

         6.2 SETTLEMENT OF OPTIONS. The Company may settle Options through the
delivery of shares of Common Stock, the granting of replacement Options or any
combination thereof as the Plan Administrator shall determine. Any Option
settlement, including payment deferrals, may be subject to such conditions,
restrictions and contingencies as the Plan Administrator shall determine.

                                   ARTICLE VII

                                GRANTS OF OPTIONS

         7.1 GRANT OF OPTIONS. The Plan Administrator shall have the authority,
in its sole discretion, to grant Options as Incentive Stock Options or as
Non-qualified Stock Options, which shall be appropriately designated.

         7.2 OPTION EXERCISE PRICE. The exercise price for shares purchased
under an Option shall be as determined by the Plan Administrator, provided that:

                  (a) the exercise price for Options granted to Participants
         other than Consultant Participants shall not be less than the minimum
         exercise price required by Article 8.3 with respect to Incentive Stock
         Options and shall not be less than 85% of Fair Market Value of the
         Common Stock on the Grant Date with respect to Non-qualified Stock
         Options;

                                      -5-
<PAGE>

                  (b) the exercise price for Options granted to Consultant
         Participants shall not be less than 85% of Fair Market Value of the
         Common Stock on the Grant Date.

         7.3 TERM OF OPTIONS. Subject to earlier termination in accordance with
the terms of the Plan and the instrument evidencing the Option, the maximum term
of an Option (the "Option Term") shall be as established for that Option by the
Plan Administrator or, if not so established, shall be ten years from the Grant
Date.

         7.4 EXERCISE OF OPTIONS. The Plan Administrator shall establish and set
forth in each instrument that evidences an Option the time at which, or the
installments in which, the Option shall vest and become exercisable, any of
which provisions may be waived or modified by the Plan Administrator at any
time. The Plan Administrator, in its sole discretion, may adjust the vesting
schedule of an Option held by a Participant who works less than "full-time" as
that term is defined by the Plan Administrator or who takes a Company-approved
leave of absence. To the extent an Option has vested and become exercisable, the
Option may be exercised in whole or from time to time in part by delivery to the
Company of a written stock option exercise agreement or notice, in a form and in
accordance with procedures established by the Plan Administrator, setting forth
the number of shares with respect to which the Option is being exercised, the
restrictions imposed on the shares purchased under such exercise agreement, if
any, and such representations and agreements as may be required by the Plan
Administrator, accompanied by payment in full as described in Article 7.5. An
Option may be exercised only for whole shares and may not be exercised for less
than a reasonable number of shares at any one time, as determined by the Plan
Administrator.

         7.5 PAYMENT OF EXERCISE PRICE. The exercise price for shares purchased
under an Option shall be paid in full to the Company by delivery of
consideration equal to the product of the Option exercise price and the number
of shares purchased. Such consideration must be paid before the Company will
issue the shares being purchased and must be in a form or a combination of forms
acceptable to the Plan Administrator for that purchase, which forms may include:

                  (a) cash;

                  (b) check;

                  (c) tendering (either actually or, if the Common Stock is
         registered under Section 12(b) or 12(g) of the Exchange Act, by
         attestation) shares of Common Stock already owned by the Participant
         for at least six months (or any shorter period necessary to avoid a
         charge to the Company's earnings for financial reporting purposes) that
         on the day prior to the exercise date have a Fair Market Value equal to
         the aggregate exercise price of the shares being purchased under the
         Option;

                  (d) if the Common Stock is registered under Section 12(b) or
         12(g) of the Exchange Act, delivery of a properly executed exercise
         notice, together with irrevocable instructions to a brokerage firm
         designated by the Company to deliver promptly to the Company the
         aggregate amount of sale or loan proceeds to pay the Option exercise
         price and any withholding tax obligations that may arise in connection
         with the exercise, all in accordance with the regulations of the
         Federal Reserve Board; or

                                      -6-
<PAGE>

                  (e) surrendering unexercised options with an intrinsic value
         (Market Value on date of exercise of underlying shares minus exercise
         price of options surrendered) equal to the exercise price of the
         options being exercised.

         7.6 POST-TERMINATION EXERCISES. The Plan Administrator shall establish
and set forth in each instrument that evidences an Option whether the Option
shall continue to be exercisable, and the terms and conditions of such exercise,
if the Participant ceases to be employed by, or to provide services to, the
Company or a Related Company, which provisions may be waived or modified by the
Plan Administrator at any time. If not so established in the instrument
evidencing the Option, the Option shall be exercisable according to the
following terms and conditions, which may be waived or modified by the Plan
Administrator at any time:

                  (a) Except as otherwise set forth in this Article 7.6, any
         portion of an Option that is not vested and exercisable on the
         Employment Termination Date shall expire on such date.

                  (b) Any portion of an Option that is vested and exercisable on
         the Employment Termination Date shall expire on the earliest to occur
         of:

                           (i) if the Participant's Employment Termination Date
                  occurs for reasons other than Cause, Retirement, Disability or
                  death, the day which is three months after such Employment
                  Termination Date;

                           (ii) if the Participant's Employment Termination Date
                  occurs by reason of Retirement, Disability or death, the
                  one-year anniversary of such Employment Termination Date; and

                           (iii) the last day of the Option Term (the "Option
                  Expiration Date").

         Notwithstanding the foregoing, if the Participant dies after his or her
Employment Termination Date but while an Option is otherwise exercisable, the
portion of the Option that is vested and exercisable on such Employment
Termination Date shall expire upon the earlier to occur of (y) the Option
Expiration Date and (z) the one-year anniversary of the date of death, unless
the Plan Administrator determines otherwise.

         Also notwithstanding the foregoing, in case of termination of the
Participant's employment or service relationship for Cause, all Options granted
to that Participant shall automatically expire upon first notification to the
Participant of such termination, unless the Plan Administrator determines
otherwise. If a Participant's employment or service relationship with the
Company is suspended pending an investigation of whether the Participant shall
be terminated for Cause, all the Participant's rights under any Option shall
likewise be suspended during the period of investigation. If any facts that
would constitute termination for Cause are discovered after the Participant's
relationship with the Company or a Related Company has ended, any Option then
held by the Participant may be immediately terminated by the Plan Administrator,
in its sole discretion.

                                      -7-
<PAGE>

                  (c) A Participant's transfer of employment or service
         relationship between or among the Company and any Related Company, or a
         change in status from an employee to a consultant, agent, advisor or
         independent contractor or a change in status from a consultant, agent,
         advisor or independent contractor to an employee, shall not be
         considered a termination of employment or service relationship for
         purposes of this Article 7. Unless the Plan Administrator determines
         otherwise, a termination of employment or service relationship shall be
         deemed to occur if a Participant's employment or service relationship
         is with an entity that has ceased to be a Related Company.

                  (d) The effect of a Company-approved leave of absence on the
         application of this Article 7 shall be determined by the Plan
         Administrator, in its sole discretion.

                  (e) If a Participant's employment or service relationship with
         the Company or a Related Company terminates by reason of Disability or
         death, the Option shall become fully vested and exercisable for all the
         shares subject to the Option. Such Option shall remain exercisable for
         the time period set forth in this Article 7.6.

                                  ARTICLE VIII

                       INCENTIVE STOCK OPTION LIMITATIONS

         Notwithstanding any other provisions of the Plan, and to the extent
required by Section 422 of the Code, Incentive Stock Options shall be subject to
the following additional terms and conditions:

         8.1 DOLLAR LIMITATION. To the extent the aggregate Fair Market Value
(determined as of the Grant Date) of Common Stock with respect to which
Incentive Stock Options are exercisable for the first time during any calendar
year (under the Plan and all other stock option plans of the Company) exceeds
$100,000, such portion in excess of $100,000 shall be treated as a Non-qualified
Stock Option. In the event the Participant holds two or more such Options that
become exercisable for the first time in the same calendar year, such limitation
shall be applied on the basis of the order in which such Options are granted.

         8.2 ELIGIBLE EMPLOYEES. Individuals who are not employees of the
Company or one of its parent corporations or subsidiary corporations may not be
granted Incentive Stock Options.

         8.3 EXERCISE PRICE. The exercise price of an Incentive Stock Option
shall be at least 100% of the Fair Market Value of the Common Stock on the Grant
Date, and in the case of an Incentive Stock Option granted to a Participant who
owns more than 10% of the total combined voting power of all classes of the
stock of the Company or of its parent or subsidiary corporations (a "Ten Percent
Stockholder"), shall not be less than 110% of the Fair Market Value of the
Common Stock on the Grant Date. The determination of more than 10% ownership
shall be made in accordance with Section 422 of the Code.

                                      -8-
<PAGE>

         8.4 EXERCISABILITY. An Option designated as an Incentive Stock Option
shall cease to qualify for favorable tax treatment as an Incentive Stock Option
to the extent it is exercised (if permitted by the terms of the Option) (a) more
than three months after the Employment Termination Date if termination was for
reasons other than death or disability, (b) more than one year after the
Employment Termination Date if termination was by reason of disability, or (c)
after the Participant has been on leave of absence for more than 90 days, unless
the Participant's re-employment rights are guaranteed by statute or contract.

         8.5 TAXATION OF INCENTIVE STOCK OPTIONS. In order to obtain certain tax
benefits afforded to Incentive Stock Options under Section 422 of the Code, the
Participant must hold the shares acquired upon the exercise of an Incentive
Stock Option for two years after the Grant Date and one year after the date of
exercise. A Participant may be subject to the alternative minimum tax at the
time of exercise of an Incentive Stock Option. The Participant shall give the
Company prompt notice of any disposition of shares acquired on the exercise of
an Incentive Stock Option prior to the expiration of such holding periods.

         8.6 CODE DEFINITIONS. For the purposes of this Article 8, "parent
corporation," "subsidiary corporation" and "disability" shall have the meanings
attributed to those terms for purposes of Section 422 of the Code.

                                   ARTICLE IX
                           GRANTS TO OUTSIDE DIRECTORS

         9.1 AUTOMATIC GRANTS. From and after the IPO Effective Date, all grants
of Options to Outside Directors pursuant to this Article shall be automatic and
nondiscretionary and shall be made strictly in accordance with the following
provisions:

                  (a) All Options granted pursuant to this Section shall be
         Non-qualified Stock Options and, except as otherwise provided herein,
         shall be subject to the other terms and conditions of the Plan.

                  (b) No person shall have any discretion to select which
         Outside Directors shall be granted Options under this Section or to
         determine the number of shares of Common Stock to be covered by such
         Options.

                  (c) Each person who becomes an Outside Director effective on
         the IPO Effective Date, or who first becomes an Outside Director
         following the IPO Effective Date, shall be automatically granted an
         Option to purchase 20,000 shares of Common Stock (after giving effect
         to the Stock Split) (the "First Option"), such grant to be effective as
         of the later of the IPO Effective Date or the date on which such person
         first becomes an Outside Director, whether through election by the
         shareholders of the Company or appointment by the Board to fill a
         vacancy; provided, however, that an Inside Director who ceases to be an
         Inside Director but who remains a Director shall not receive a First
         Option.

                                      -9-
<PAGE>

                  (d) Each person who is an Outside Director as of each date
         after the IPO Effective Date on which an annual meeting of shareholders
         of the Company is held shall be automatically granted an Option to
         purchase 20,000 shares of Common Stock (after giving effect to the
         Stock Split) (a "Subsequent Option") on the date of such annual meeting
         if, as of such date, he or she shall have served on the Board for at
         least the preceding six months.

                  (e) The terms of each Option granted pursuant to this Section
         shall be as follows:

                           (i) the term of the Option shall be ten (10) years;

                           (ii) the exercise price per shares of Common Stock
                  shall be 100% of the Fair Market Value per Share on the date
                  of grant of the Option; and

                           (iii) subject to Article XII hereof, the First Option
                  and the Subsequent Option shall vest and become exercisable as
                  to one-third (1/3) of the shares of Common Stock subject to
                  the Option on the date of grant and one-third (1/3) of such
                  option vesting on the first anniversary of its date of grant,
                  and the remaining one-third (1/3) of such Shares on the second
                  anniversary of its date of grant, provided that the Optionee
                  continues to serve as a Director on such dates.

                  (f) The number of shares of Common Stock covered by the First
         Option and the Subsequent Option gives effect to the Stock Split, and
         if the Stock Split is not effected prior to the date of grant thereof,
         such number of shares of Common Stock shall be adjusted in accordance
         with Section 12.1 to reflect that the Stock Split was not effected,
         such that the Outside Director shall be entitled to purchase the number
         of shares which the Outside Director would have been entitled to
         receive without giving effect to the Stock Split.

         9.2 DISCRETIONARY GRANTS. Notwithstanding anything in the Plan to the
contrary, the Board, in its sole and absolute discretion, may grant Options from
time to time to any chairman of one or more of its various committees,
including, but not limited to, its audit, compensation, nominating, and
corporate governance committees. The terms of each Option granted pursuant to
this Section 9.2 shall be in accordance with the terms set forth in paragraph
(e) of Section 9.1.

                                    ARTICLE X
                                   WITHHOLDING

         10.1 GENERAL. The Company may require the Participant to pay to the
Company the amount of any taxes that the Company is required by applicable
federal, state, local or foreign law to withhold with respect to the grant,
vesting or exercise of an Option. The Company shall not be required to issue any
shares Common Stock under the Plan until such obligations are satisfied.

         10.2 PAYMENT OF WITHHOLDING OBLIGATIONS IN CASH OR SHARES. The Plan
Administrator may permit or require a Participant to satisfy all or part of his
or her tax withholding obligations by (a) paying cash to the Company, (b) having
the Company withhold from any cash amounts otherwise due or to become due from
the Company to the Participant, (c) having the Company withhold a portion of any
shares of Common Stock that would otherwise be issued to the Participant having

                                      -10-
<PAGE>

a value equal to the tax withholding obligations (up to the employer's minimum
required tax withholding rate), or (d) surrendering any shares of Common Stock
that the Participant previously acquired having a value equal to the tax
withholding obligations (up to the employer's minimum required tax withholding
rate to the extent the Participant has held the surrendered shares for less than
six months).

                                   ARTICLE XI

                                  ASSIGNABILITY

         Neither an Option nor any interest therein may be assigned, pledged or
transferred by the Participant or made subject to attachment or similar
proceedings other than by will or by the applicable laws of descent and
distribution, and, during the Participant's lifetime, such Options may be
exercised only by the Participant. Notwithstanding the foregoing, and to the
extent permitted by Section 422 of the Code, the Plan Administrator, in its sole
discretion, may permit a Participant to assign or transfer an Option or may
permit a Participant to designate a beneficiary who may exercise the Option or
receive payment under the Option after the Participant's death; provided,
however, that any Option so assigned or transferred shall be subject to all the
terms and conditions of the Plan and those contained in the instrument
evidencing the Option.

                                   ARTICLE XII

                                   ADJUSTMENTS

         12.1 ADJUSTMENT OF SHARES. In the event, at any time or from time to
time, a stock dividend, stock split, spin-off, combination or exchange of
shares, recapitalization, merger, consolidation, distribution to stockholders
other than a normal cash dividend, or other change in the Company's corporate or
capital structure, including, without limitation, a Related Party Transaction
and the Stock Split, results in (a) the outstanding shares of Common Stock, or
any securities exchanged therefor or received in their place, being exchanged
for a different number or kind of securities of the Company or of any other
corporation or (b) new, different or additional securities of the Company or of
any other corporation being received by the holders of shares of Common Stock of
the Company, then the Plan Administrator shall make proportional adjustments in
(i) the maximum number and kind of securities subject to the Plan and issuable
as Incentive Stock Options as set forth in Article 4 and the maximum number and
kind of securities that may be made subject to Options and to Options to any
individual as set forth in Article 4.3, and (ii) the number and kind of
securities that are subject to any outstanding Award and the per share price of
such securities, without any change in the aggregate price to be paid therefor.
The determination by the Plan Administrator as to the terms of any of the
foregoing adjustments shall be conclusive and binding. Notwithstanding the
foregoing, a dissolution or liquidation of the Company or a Corporate
Transaction shall not be governed by this Article 12.1 but shall be governed by
Articles 12.2 and 12.3, respectively.

         12.2 DISSOLUTION OR LIQUIDATION. To the extent not previously exercised
or settled, and unless otherwise determined by the Plan Administrator in its
sole discretion, Options shall terminate immediately prior to the dissolution or
liquidation of the Company. To the extent a forfeiture provision or repurchase
right applicable to an Option has not been waived by the Plan Administrator, the
Option shall be forfeited immediately prior to the consummation of the
dissolution or liquidation.

                                      -11-
<PAGE>

         12.3 CORPORATE TRANSACTIONS AND THEIR EFFECT ON OPTIONS.

                  (a) In the event of a Corporate Transaction, except as
         otherwise provided in the instrument evidencing an Option (or in a
         written employment or services agreement between a Participant and the
         Company or Related Company) and except as provided in subsection (b)
         below, each outstanding Option shall be assumed or an equivalent option
         or right substituted by the surviving corporation, the successor
         corporation or its parent corporation, as applicable (the "Successor
         Corporation").

                  (b) If, in connection with a Corporate Transaction, the
         Successor Corporation refuses to assume or substitute for an Option,
         then each such outstanding Option shall become fully vested and
         exercisable with respect to 100% of the un-vested portion of the
         Option. In such case, the Plan Administrator shall notify the
         Participant in writing or electronically that the un-vested portion of
         the Option specified above shall be fully vested and exercisable for a
         specified time period. At the expiration of the time period, the Option
         shall terminate, provided that the Corporate Transaction has occurred.

                  (c) For the purposes of this Article 12.3, the Option shall be
         considered assumed or substituted for if following the Corporate
         Transaction the option or right confers the right to purchase or
         receive, for each share of Common Stock subject to the Option
         immediately prior to the Corporate Transaction, the consideration
         (whether stock, cash, or other securities or property) received in the
         Corporate Transaction by holders of Common Stock for each share held on
         the effective date of the transaction (and if holders were offered a
         choice of consideration, the type of consideration chosen by the
         holders of a majority of the outstanding shares); provided, however,
         that if such consideration received in the Corporate Transaction is not
         solely common stock of the Successor Corporation, the Plan
         Administrator may, with the consent of the Successor Corporation,
         provide for the consideration to be received upon the exercise of the
         Option, for each share of Common Stock subject thereto, to be solely
         common stock of the Successor Corporation substantially equal in fair
         market value to the per share consideration received by holders of
         Common Stock in the Corporate Transaction. The determination of such
         substantial equality of value of consideration shall be made by the
         Plan Administrator and its determination shall be conclusive and
         binding.

                  (d) All Options shall terminate and cease to remain
         outstanding immediately following the Corporate Transaction, except to
         the extent assumed by the Successor Corporation.

         12.4 FURTHER ADJUSTMENT OF OPTIONS. Subject to Articles 12.2 and 12.3,
the Plan Administrator shall have the discretion, exercisable at any time before
a sale, merger, consolidation, reorganization, liquidation or change of control
of the Company, as defined by the Plan Administrator, to take such further
action as it determines to be necessary or advisable, and fair and equitable to
the Participants, with respect to Options. Such authorized action may include
(but shall not be limited to) establishing, amending or waiving the type, terms,

                                      -12-
<PAGE>

conditions or duration of, or restrictions on, Options so as to provide for
earlier, later, extended or additional time for exercise, lifting restrictions
and other modifications, and the Plan Administrator may take such actions with
respect to all Participants, to certain categories of Participants or only to
individual Participants. The Plan Administrator may take such action before or
after granting Options to which the action relates and before or after any
public announcement with respect to such sale, merger, consolidation,
reorganization, liquidation or change of control that is the reason for such
action.

         12.5 LIMITATIONS. The grant of Options shall in no way affect the
Company's right to adjust, reclassify, reorganize or otherwise change its
capital or business structure or to merge, consolidate, dissolve, liquidate or
sell or transfer all or any part of its business or assets.

         12.6 FRACTIONAL SHARES. In the event of any adjustment in the number of
shares covered by any Option, each such Option shall cover only the number of
full shares resulting from such adjustment.

                                  ARTICLE XIII

                            AMENDMENT AND TERMINATION

         13.1 AMENDMENT OR TERMINATION OF PLAN. The Board may suspend, amend or
terminate the Plan or any portion of the Plan at any time and in such respects
as it shall deem advisable; provided, however, that to the extent required for
compliance with Section 422 of the Code or any applicable law or regulation,
stockholder approval shall be required for any amendment that would (a) increase
the total number of shares available for issuance under the Plan, (b) modify the
class of employees eligible to receive Options, or (c) otherwise require
stockholder approval under any applicable law or regulation. Any amendment made
to the Plan that would constitute a "modification" to Incentive Stock Options
outstanding on the date of such amendment shall not, without the consent of the
Participant, be applicable to such outstanding Incentive Stock Options but shall
have prospective effect only.

         13.2 TERM OF PLAN. Unless sooner terminated as provided herein, the
Plan shall terminate ten years after the earlier of the Plan's adoption by the
Board and approval by the stockholders.

         13.3 CONSENT OF PARTICIPANT. The suspension, amendment or termination
of the Plan or a portion thereof or the amendment of an outstanding Option shall
not, without the Participant's consent, materially adversely affect any rights
under any Option theretofore granted to the Participant under the Plan. Any
change or adjustment to an outstanding Incentive Stock Option shall not, without
the consent of the Participant, be made in a manner so as to constitute a
"modification" that would cause such Incentive Stock Option to fail to continue
to qualify as an Incentive Stock Option. Notwithstanding the foregoing, any
adjustments made pursuant to Article 13 shall not be subject to these
restrictions.

                                      -13-
<PAGE>

                                   ARTICLE XIV

                                     GENERAL

         14.1 EVIDENCE OF OPTIONS. Options granted under the Plan shall be
evidenced by a written instrument that shall contain such terms, conditions,
limitations and restrictions as the Plan Administrator shall deem advisable and
that are not inconsistent with the Plan.

         14.2 NO INDIVIDUAL RIGHTS. Nothing in the Plan or any Option granted
under the Plan shall be deemed to constitute an employment contract or confer or
be deemed to confer on any Participant any right to continue in the employ of,
or to continue any other relationship with, the Company or any Related Company
or limit in any way the right of the Company or any Related Company to terminate
a Participant's employment or other relationship at any time, with or without
Cause.

         14.3 ISSUANCE OF SHARES. Notwithstanding any other provision of the
Plan, the Company shall have no obligation to issue or deliver any shares of
Common Stock under the Plan or make any other distribution of benefits under the
Plan unless, in the opinion of the Company's counsel, such issuance, delivery or
distribution would comply with all applicable laws (including, without
limitation, the requirements of the Securities Act), and the applicable
requirements of any securities exchange or similar entity.

         14.4 NO OBLIGATION TO REGISTER SHARES. The Company shall be under no
obligation to any Participant to register for offering or resale or to qualify
for exemption under the Securities Act, or to register or qualify under state
securities laws, any shares of Common Stock, security or interest in a security
paid or issued under, or created by, the Plan, or to continue in effect any such
registrations or qualifications if made. The Company may issue certificates for
shares with such legends and subject to such restrictions on transfer and
stop-transfer instructions as counsel for the Company deems necessary or
desirable for compliance by the Company with federal and state securities laws.
To the extent the Plan or any instrument evidencing an Option provides for
issuance of stock certificates to reflect the issuance of shares of Common
Stock, the issuance may be effected on a non-certificated basis, to the extent
not prohibited by applicable law or the applicable rules of any stock exchange.

         14.5 NO RIGHTS AS A STOCKHOLDER. No Option or Stock Option denominated
in units shall entitle the Participant to any cash dividend, voting or other
right of a stockholder unless and until the date of issuance under the Plan of
the shares that are the subject of such Option.

         14.6 COMPLIANCE WITH LAWS AND REGULATIONS. Notwithstanding anything in
the Plan to the contrary, the Plan Administrator, in its sole discretion, may
bifurcate the Plan so as to restrict, limit or condition the use of any
provision of the Plan to Participants who are officers or directors subject to
Section 16 of the Exchange Act without so restricting, limiting or conditioning
the Plan with respect to other Participants. Additionally, in interpreting and
applying the provisions of the Plan, any Option granted as an Incentive Stock
Option pursuant to the Plan shall, to the extent permitted by law, be construed
as an "incentive stock option" within the meaning of Section 422 of the Code.

                                      -14-
<PAGE>

         14.7 PARTICIPANTS IN OTHER COUNTRIES. The Plan Administrator shall have
the authority to adopt such modifications, procedures and subplans as may be
necessary or desirable to comply with provisions of the laws of other countries
in which the Company or any Related Company may operate to assure the viability
of the benefits from Options granted to Participants employed in such countries
and to meet the objectives of the Plan.

         14.8 NO TRUST OR FUND. The Plan is intended to constitute an "unfunded"
plan. Nothing contained herein shall require the Company to segregate any monies
or other property, or shares of Common Stock, or to create any trusts, or to
make any special deposits for any immediate or deferred amounts payable to any
Participant, and no Participant shall have any rights that are greater than
those of a general unsecured creditor of the Company.

         14.9 SEVERABILITY. If any provision of the Plan or any Option is
determined to be invalid, illegal or unenforceable in any jurisdiction, or as to
any person, or would disqualify the Plan or any Option under any law deemed
applicable by the Plan Administrator, such provision shall be construed or
deemed amended to conform to applicable laws, or, if it cannot be so construed
or deemed amended without, in the Plan Administrator's determination, materially
altering the intent of the Plan or the Option, such provision shall be stricken
as to such jurisdiction, person or Option, and the remainder of the Plan and any
such Option shall remain in full force and effect.

         14.10 CHOICE OF LAW. The Plan and all determinations made and actions
taken pursuant hereto, to the extent not otherwise governed by the laws of the
United States, shall be governed by the laws of the State of New Jersey without
giving effect to principles of conflicts of law.

                                   ARTICLE XV

                                 EFFECTIVE DATE

         The original effective date of the Plan is January 5, 2004. The
effective date of the Plan as amended and restated herein is August 28, 2006.

                                      -15-
<PAGE>

                                 FIRST AMENDMENT
                                     TO THE
                            IVIVI TECHNOLOGIES, INC.
                   2004 AMENDED AND RESTATED STOCK OPTION PLAN

         WHEREAS, the Board of Directors of Ivivi Technologies, Inc. (the
"Company") have established the Ivivi Technologies, Inc. 2004 Amended and
Restated Stock Option Plan (the "Plan"); and

         WHEREAS, the Board of Directors desires to amend the Plan to conform
the date for determining fair market value under the Plan with new Executive
Compensation and Related Person Disclosure rules promulgated by the Securities
and Exchange Commission; and

         WHEREAS, Section 13.1 of the Plan authorizes the Board of Directors to
amend the Plan;

         NOW, THEREFORE, the Plan is hereby amended, effective as of February 5,
2007, as follows:

         1. The definition of "Fair Market Value" in Article II of the Plan is
hereby amended in its entirety, to read as follows:

                         "FAIR MARKET VALUE" means, as of any date, the per
                  share value of the Common Stock determined as follows: (a) if
                  the Common Stock is listed on an established stock exchange or
                  exchanges or the NASDAQ National Market, the closing price per
                  share on such date (or the most recent trading day preceding
                  such date if there were no trades on such date) on the
                  principal exchange on which it is traded or as reported by
                  NASDAQ; (b) if the Common Stock is not then listed on an
                  exchange or the NASDAQ National Market, but is quoted on the
                  NASDAQ Small Cap Market, the NASDAQ electronic bulletin board
                  or the National Quotation Bureau pink sheets, the average of
                  the closing bid and asked prices per share for the Common
                  Stock as quoted by NASDAQ or the National Quotation Bureau, as
                  the case may be, on such date (or the most recent trading day
                  preceding such date if there were no trades on such date); or
                  (c) if there is no such reported market for the Common Stock
                  for the date in question, then an amount determined in good
                  faith by the Plan Administrator.

         2. Except as amended hereby, the Plan shall remain in full force and
effect.

                                      -16-
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this First Amendment
to the Ivivi Technologies, Inc. 2004 Amended and Restated Stock Option Plan, as
of the 5th day of February, 2007, as evidence of its adoption by the Board of
Directors of the Company on such date.

                                              IVIVI TECHNOLOGIES, INC.

                                              By:  /S/ Andre' DiMino
                                                   -----------------
                                                   Andre' DiMino
                                                   Co-Chief Executive Officer

WITNESS:

/s/ Alan V. Gallantar
-----------------------------

                                      -17-Executive Employment Agreement, effective as of January 1, 2007, by and between
      P&F Industries, Inc. and Richard A. Horowitz

    EXECUTIVE
      EMPLOYMENT AGREEMENT
      (the
“Agreement”),
      effective as of  February
      12, 2007, between P&F
      INDUSTRIES, INC.,
      a
      Delaware corporation (the “Company”),
      and
RICHARD
      A. HOROWITZ
      (the
“Executive”).

    

    W
      I T N E S S E T H

    

    WHEREAS,
      the
      Executive is employed by the Company as its Chairman, President and Chief
      Executive Officer;

    

    WHEREAS,
      the
      Company and the Executive desire to enter into the Agreement as to the terms
      of
      his employment with the Company;

    

    NOW
      THEREFORE,
      in
      consideration of the foregoing, the mutual promises contained herein and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agree as follows:

    

    1.  POSITION/DUTIES.

     

    (a)  During
      the Employment Term (as hereinafter defined), the Executive shall serve as
      the
      President and Chief Executive Officer of the Company and, if elected by the
      Board of Directors of the Company (the “Board”),
      Chairman. In this capacity, the Executive shall have such duties, authorities
      and responsibilities commensurate with the duties, authorities and
      responsibilities of persons in similar capacities in similarly sized companies,
      and such other duties, authorities and responsibilities as the Board shall
      designate that are consistent with the Executive’s positions. The Executive
      shall report to the Board.

     

    (b)  During
      the Employment Term, the Executive shall devote all of his business time, energy
      and skill and his best efforts to the performance of his duties with the
      Company; provided, however, that the foregoing shall not prevent the Executive
      from (i) serving on the board of directors of non-profit organizations and,
      with
      the prior written approval of the Board, other companies, (ii) participating
      in
      charitable, civic, educational, professional, community or industry affairs
      or
      (iii) managing his and his family’s passive personal investments so long as such
      activities in the aggregate do not materially interfere or conflict with the
      performance of his duties hereunder or create a potential business
      conflict.

     

    2.  EMPLOYMENT
      TERM.
      The
      Executive’s term of employment under this Agreement shall be for a term
      commencing on January 1, 2007 (the “Effective
      Date”)
      and,
      unless terminated earlier as provided in Section 6, ending on December 31,
      2011
      (the “Employment
      Term”).

     

    3.  BASE
      SALARY.
      The
      Company agrees to pay the Executive a base salary at an annual rate of not
      less
      than $975,000, payable in accordance with the regular payroll practices of
      the
      Company. The Executive’s base salary shall be subject to annual review by the
      Board (or a committee thereof) and may be increased, but not decreased, from
      time to time by the Board. The base salary as determined herein from time to
      time shall constitute “Base Salary” for purposes of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.  BONUS.
      During
      the Employment Term, the Executive shall be eligible for an annual discretionary
      incentive payment under the Company’s Executive 162(m) Bonus Plan, as amended or
      as may be amended from time to time (the “Plan”),
      or
      any successor annual bonus plan with a target of 90% of the Executive’s
      then-current Base Salary (the “Target
      Bonus”)
      (as
      prorated for partial years).

     

    5.  EMPLOYEE
      BENEFITS.

     

    (a)  Benefit
      Plans.
      The
      Executive shall be entitled to participate in any employee benefit plan that
      the
      Company has adopted or may adopt, maintain or contribute to for the benefit
      generally of its senior executives at a level commensurate with his position,
      subject to satisfying the applicable eligibility requirements. Notwithstanding
      the foregoing, the Company may modify or terminate any employee benefit plan
      at
      any time.

     

    (b)  Make-Up
      Payments. Through
      the earlier of (i) December 31, 2016, (ii) the Executive’s death, or (iii) the
      Executive’s termination for Cause (as hereinafter defined) or resignation
      without Good Reason (as hereinafter defined), the Company will pay the Executive
      $45,064.37 (each a “Make
      Up Payment”)
      on or
      before March 15 of each year to cover premiums on a life insurance policy
      (reflecting the prior change in the split dollar arrangement). This provision
      shall survive any expiration of the Employment Term and any termination of
      the
      Executive’s employment (other than due to the Executive’s death or a termination
      of the Executive’s employment prior to the expiration of the Employment Term by
      the Company for Cause or by the Executive without Good Reason).

     

    (c)  Vacations.
      The
      Executive shall be entitled to an annual paid vacation of six weeks per calendar
      year (as prorated for partial years) in accordance with the Company’s policy on
      accrual and use applicable to senior executives.

     

    (d)  Business
      and Entertainment Expenses.
      Upon
      presentation of appropriate documentation, the Executive shall be reimbursed
      in
      accordance with the Company’s expense reimbursement policy for all reasonable
      and necessary business and entertainment expenses incurred in connection with
      the performance of his duties hereunder.

     

    (e)  Automobile.
      During
      the Employment Term, the Company will provide the Executive, at the Company’s
      expense, with a current model automobile similar to the automobile currently
      furnished to the Executive.
      In
      addition, upon submission of appropriate documentation, the Company shall pay
      or
      reimburse the Executive for the cost of insurance, maintenance and gas incurred
      for business purposes and other business related operating expenses incurred
      for
      such automobile during the Employment Term. The Executive shall be entitled
      to
      request a new automobile at the end of each three (3) year period commencing
      on
      the Effective Date.

     

    6.  TERMINATION.
      The
      Executive’s employment and the Employment Term shall terminate on the first of
      the following to occur:

     

    (a)  Disability.
      Upon 30
      days’ prior written notice by the Company to the Executive of termination due to
      Disability if the Executive does not return to full-time continuous employment
      with the Company within such 30 days. For purposes of this Agreement,
“Disability”
shall
      be defined as the Executive’s becoming physically or mentally disabled, whether
      totally or partially, so that he has been unable to perform his material duties
      hereunder for a period of 180 days (including weekends and holidays) during
      any
      365-day period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  Death.
      Automatically on the date of death of the Executive.

     

    (c)  Cause.
      The
      Company may terminate the Executive’s employment hereunder for Cause immediately
      upon written notice by the Company to the Executive of a termination for Cause.
      “Cause”
shall
      mean the Executive’s:

     

    (i) refusal
      or willful failure to attempt in good faith to perform his duties (other than
      as
      a result of physical of mental incapacity);

     

    (ii) gross
      negligence or willful misconduct with regard to the Company, its assets or
      employees of a material nature or any fraud, theft or material dishonesty with
      regard to the Company or in the performance of his duties;

    

    (iii) willful
      misconduct which in the good faith judgment of the Board has or may materially
      damage the Company economically or reputation wise;

    

    (iv) commission
      of any felony or any other crime involving fraud, dishonesty, securities law
      violations or moral turpitude, provided that any conviction for, or pleading
      guilty or nolo contendere to, any such felony or other crime shall conclusively
      be deemed acknowledgement by the Executive of commission thereof;

    

    (v) failure
      to attempt in good faith to follow the written direction of the Board;
      or

    

    (vi) material
      breach of a material term of this Agreement or any other material agreement
      with
      the Company that is not cured within 15 days of the giving of written notice
      thereof.

    

    The
      Executive may only be terminated for Cause by a vote of a majority of the full
      Board (excluding the Executive for purposes of determining the number necessary
      to constitute a majority) and, prior to any termination for Cause, the Executive
      will be given 5 business days written notice specifying the alleged Cause event
      and will be entitled to appear (with counsel) before the full Board to present
      information regarding his views on the Cause event. After providing the notice
      in foregoing sentence, the Board may suspend the Executive with pay until a
      final determination pursuant to this paragraph has been made. In the event
      of a
      Cause termination after a Change in Control, the Company shall bear the burden
      of proof by a preponderance of the evidence.

     

    (d)  Without
      Cause.
      Upon
      written notice by the Company to the Executive of an involuntary termination
      without Cause, other than for death or Disability.

     

    (e)  Good
      Reason.
      Upon
      written notice by the Executive to the Company of a termination for Good Reason
      provided that such notice is given within 60 days of the Good Reason event.
      “Good
      Reason”
shall
      mean the occurrence of any of the following events, without the express written
      consent of the Executive, unless such events are cured by the Company within
      30
      days following written notification by the Executive to the Company that he
      intends to terminate his employment hereunder for one of the reasons set forth
      below:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i) any
      reduction or diminution in the Executive’s title, including non-election or
      removal from the position of Chairman unless the separation of the positions
      of
      Chairman and Chief Executive Officer is required by applicable law;

     

    (ii) any
      material reduction or diminution in the Executive’s then authorities, duties, or
      responsibilities;

     

    (iii) a
      material reduction in the Executive’s Base Salary or benefits (but not including
      any reduction related to a broader compensation reduction by the Company that
      is
      not limited to any particular employee or executive);

     

    (iv) a
      relocation of the Executive’s principal business location to an area outside of
      a 35 mile radius of both the Executive’s principal business location and the
      Executive’s principal residence at the time of such relocation; or 

     

    (v) a
      material breach of the Agreement by the Company.

     

    Notwithstanding
      the foregoing, the Executive agrees that, during any period of incapacity,
      the
      Company may appoint or temporarily assign his duties to another or others
      without such action resulting in Good Reason.

     

    (f)  Without
      Good Reason.
      Upon 60
      days’ prior written notice by the Executive to the Company of the Executive’s
      voluntary termination of employment without Good Reason (which the Company
      may,
      in its sole discretion, make effective earlier than any notice
      date).

     

    7.  CONSEQUENCES
      OF TERMINATION.

     

    (a)  Disability.
      Subject
      to Section 25, in the event the Executive’s employment is terminated due to
      Disability the Company shall pay or provide the Executive (i) any unpaid Base
      Salary through the date of termination paid in accordance with the Company’s
      normal payroll policies as if the Executive were an employee; (ii) any bonus
      earned but unpaid with respect to the fiscal year ending on or preceding the
      date of termination, paid when bonuses are paid to the Company’s senior
      executive officers for, but in any event not later than the March 15 following,
      the year that such bonus was earned; (iii) reimbursement for any unreimbursed
      expenses incurred through the date of termination in accordance with the
      Company’s normal reimbursement procedures; (iv) any other amounts and benefits
      the Executive is entitled to receive under any employee benefit plan in
      accordance with the terms of the applicable plan (collectively items (i) through
      (iv) shall be hereafter referred to as the “Accrued
      Amounts”);
      (v) a
      pro-rata portion of the Executive’s bonus for the fiscal year in which the
      Executive’s termination occurs based on actual results for the plan year
      (determined by multiplying the amount of such bonus which would be due for
      the
      full fiscal year by a fraction, the numerator of which is the number of days
      during the fiscal year of termination that the Executive is employed by the
      Company and the denominator of which is 365) payable at the time that bonuses
      are paid to other senior executives of the Company (the “Pro
      Rata Bonus”);
      (vi)
      full vesting of all equity awards granted to the Executive on or after the
      Effective Date; (vii) continued medical benefits (for the Executive and his
      eligible dependents) while the Executive is disabled (subject to offset for
      amounts the Executive receives from any other medical benefits available to
      the
      Executive) until the Executive’s 65th
      birthday; and (viii) continued payment of the Make-Up Payments. Following a
      termination due to Disability all equity awards granted to the Executive prior
      to the Effective Date shall be governed in accordance with the terms of the
      applicable grant agreements.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  Death.
      In the
      event the Executive’s employment is terminated due to the Executive’s death, the
      Company shall pay or provide to the Executive’s estate (i) the Accrued Amounts
      within 30 days following the Executive’s death; (ii) the Pro Rata Bonus; (iii)
      full vesting of all equity awards granted to the Executive on or after the
      Effective Date; and (iv) payment of monthly COBRA premiums until the earlier
      of
      3 years from the date of the Executive’s death or when the Executive’s
      dependents are no longer eligible for COBRA coverage. Following a termination
      due to the Executive’s death all equity awards granted to the Executive prior to
      the Effective Date shall be governed in accordance with the terms of the
      applicable grant agreements.

     

    (c)  Termination
      For Cause Or Without Good Reason.
      Subject
      to Section 25, in the event the Executive’s employment is terminated (i) by the
      Company for Cause, or (ii) by the Executive without Good Reason, the Company
      shall pay to the Executive the Accrued Amounts within 30 days following such
      termination. Following any such termination all equity awards granted to the
      Executive shall be governed in accordance with the terms of the applicable
      grant
      agreements.

     

    (d)  Termination
      Without Cause Or For Good Reason.
      Subject
      to Sections 8 and 25, in the event the Executive’s employment is terminated (x)
      by the Company other than for Cause or (y) by the Executive for Good Reason,
      the
      Company shall pay or provide the Executive with (i) the Accrued Amounts; (ii)
      continued payment of the Make-Up Payments; and (iii) subject to Section
      9:

     

    (A) continued
      payments of Base Salary for 18 months paid in accordance with the Company’s
      normal payroll policies as if the Executive were an employee;

     

    (B) the
      Pro
      Rata Bonus; and

     

    (C) payment
      of monthly COBRA premiums until the earlier of (I) 18 months from the date
      of
      termination, (II) the Executive becoming eligible for medical benefits from
      a
      subsequent employer, or (III) the Executive otherwise becoming ineligible for
      COBRA.

     

    Following
      any such termination all equity awards granted to the Executive shall be
      governed in accordance with the terms of the applicable grant agreements.
      Payments and benefits provided in this Section 7(d) shall be in lieu of any
      termination or severance payments or benefits for which the Executive may be
      eligible under any of the plans, policies or programs of the
      Company.

     

    8.  CHANGE
      IN CONTROL.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)  Notwithstanding
      anything herein to the contrary, subject to Sections 8(c) and 25, in the event
      the Executive’s employment is terminated by the Company without Cause or the
      Executive resigns for Good Reason within two years following a Change in Control
      or within six months prior to a Change in Control but which the Executive
      reasonably demonstrates (x) was at the request of a third party who is the
      acquirer in the Change in Control or (y) otherwise arose in connection with,
      or
      in anticipation of, a Change in Control which actually occurs, then the Company
      shall pay or provide to the Executive to the extent not theretofore provided
      pursuant to Section 7(d) above, (i) the Accrued Amounts; (ii) continued payment
      of the Make-Up Payments; and (iii) subject to Section 9:

     

    (A) Within
      60
      days following such termination, a lump sum payment in an amount equal to the
      greater of (I) and (II) where (I) equals 18 months Base Salary and (II) equals
      the lesser of: 

     

    (1)  two
      times
      the sum of (X) the Executive’s Base Salary plus (Y) the amount of any annual
      bonus the Executive received for the year prior to the Change in Control;
      or

     

    (2)  3%
      of the
      value on the date of the Change in Control of the Company’s outstanding shares
      on a fully diluted basis on the date of such Change in Control (without regard
      for any outstanding options with an exercise price less than the consideration
      paid for the Company’s shares in the Change in Control);

     

    (B) the
      Pro
      Rata Bonus; and

     

    (C) payment
      of monthly COBRA premiums until the earliest to occur of (I) 18 months from
      the
      date of termination, (II) the Executive becoming eligible for medical benefits
      from a subsequent employer, or (III) the Executive otherwise becoming ineligible
      for COBRA.

     

    Following
      any such termination all equity awards granted to the Executive shall be
      governed in accordance with the terms of the applicable grant
      agreements.

     

    (b)  For
      purposes of this Agreement, “Change
      in Control”
will
      mean the occurrence of one of the following events:

     

    (i) any
      “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange
      Act of 1934, as amended
      (the
“Exchange
      Act”)
      and as
      used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes,
      after
      the Effective Date, a “beneficial owner” (as defined in Rule 13d-3 under the
      Exchange Act), directly or indirectly, of securities of the Company representing
      50% or more of the combined voting power of the Company’s then outstanding
      securities eligible to vote for the election of the Board (the “Company
      Voting Securities”);
      provided, however, that an event described in this subsection (i) shall not
      be
      deemed to be a Change in Control if any of following becomes such a beneficial
      owner:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (A) the
      Company or any majority-owned subsidiary (provided, that this exclusion applies
      solely to the ownership levels of the Company or the majority-owned
      subsidiary),

     

    (B) any
      tax-qualified, broad-based employee benefit plan sponsored or maintained by
      the
      Company or any majority-owned subsidiary,

     

    (C) any
      underwriter temporarily holding securities pursuant to an offering of such
      securities, or

     

    (D) any
      person pursuant to a Non-Qualifying Transaction (as defined below);

     

    (ii) individuals
      who, on the Effective Date, constitute the Board (the “Incumbent
      Directors”)
      cease
      for
      any reason to constitute at least a majority of the Board, provided that any
      person becoming a director subsequent to the Effective Date whose election
      or
      nomination for election was approved by a vote of at least two-thirds of the
      Incumbent Directors then on the Board (either by a specific vote or by approval
      of the proxy statement of the Company in which such person is named as a nominee
      for director, without objection to such nomination) shall be an Incumbent
      Director.

     

    (iii) the
      consummation of a merger, consolidation, statutory share exchange or similar
      form of corporate transaction involving the Company or any of its Subsidiaries
      that requires the approval of the Company’s stockholders, whether for such
      transaction or the issuance of securities in the transaction (a “Business
      Combination”),
      unless immediately following such Business Combination:

     

    (A) 50%
      or
      more of the total voting power of:

     

    (x)      
      the
      corporation resulting from such Business Combination (the “Surviving
      Corporation”),
      or

     

    (y)     
      if
      applicable, the ultimate parent corporation that directly or indirectly has
      beneficial ownership of 100% of the voting securities eligible to elect
      directors of the Surviving Corporation (the “Parent
      Corporation”),
      

     

    is
      represented by Company Voting Securities that were outstanding immediately
      prior
      to such Business Combination (or, if applicable, is represented by shares into
      which such Company Voting Securities were converted pursuant to such Business
      Combination), and such voting power among the holders thereof is in
      substantially the same proportion as the voting power of such Company Voting
      Securities among the holders thereof immediately prior to the Business
      Combination;

     

    (B) no
      person
      (other than any employee benefit plan (or related trust) sponsored or maintained
      by the Surviving Corporation or the Parent Corporation), is or becomes the
      beneficial owner, directly or indirectly, of 50% or more of the total voting
      power of the outstanding voting securities eligible to elect directors of the
      Parent Corporation (or, if there is no Parent Corporation, the Surviving
      Corporation); and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      (C)  
        at
        least
        a majority of the members of the board of directors of the Parent Corporation
        (or if there is no Parent Corporation, the Surviving Corporation) following
        the
        consummation of the Business Combination were Incumbent Directors at the
        time of
        the Board’s approval of the execution of the initial agreement providing for
        such Business Combination

    

     

    (any
      Business Combination which satisfies all of the criteria specified in (A),
      (B)
      and (C) above shall be deemed to be a “Non-Qualifying
      Transaction”);
      or

     

    (iv) consummation
      of the sale of all or substantially all of the Company’s assets or stockholder
      approval of a liquidation or dissolution of the Company, unless the voting
      common equity interests of the acquirer of such assets or an ongoing entity
      (other than a liquidating trust), as the case may be, based on total voting
      power, are at least more than 50% beneficially owned, directly or indirectly,
      by
      the Company’s shareholders in substantially the same proportions as such
      shareholders owned the Company’s outstanding voting common equity interests
      immediately prior to such sale or liquidation and, if a plan of liquidation
      or
      dissolution, such ongoing entity assumes all existing obligations of the Company
      under this Plan.

     

    Notwithstanding
      the foregoing, a Change in Control of the Company shall not be deemed to occur
      solely because any person acquires beneficial ownership of more than 50% of
      the
      Company Voting Securities, based on total voting power, as a result of the
      acquisition of Company Voting Securities by the Company which reduces the number
      of Company Voting Securities outstanding; provided, that, if after such
      acquisition by the Company such person becomes the beneficial owner of Company
      Voting Securities that increases the percentage of outstanding Company Voting
      Securities beneficially owned by such person, a Change in Control of the Company
      shall then occur.

     

    (c)  Notwithstanding
      anything else herein, if
      any
      payment or benefit, within the meaning of Section 280G(b)(2) of the Internal
      Revenue Code of 1986, as amended (the “Code”),
      to
      the Executive or for Executive’s benefit paid or payable or distributed or
      distributable pursuant to the terms of this Agreement or otherwise in connection
      with, or arising out of, Executive’s employment with the Company or a change in
      ownership or effective control of the Company or of a substantial portion of
      its
      assets, would be subject to the excise tax imposed by Section 4999 of the Code
      or any interest or penalties are incurred by the Executive with respect to
      such
      excise tax (such excise tax, together with any such interest and penalties,
      are
      hereinafter collectively referred to as the “Excise
      Tax”),
      the
      amounts and benefits provided under this Agreement or otherwise that are subject
      to Section 280G of the Code as a result of the transaction will be automatically
      reduced to an amount that equals the product of 2.99 multiplied by the
      Executive’s “base amount” (as determined in accordance with Sections 280G and
      4999 of the Code by the Company’s certified public accountants unless the
      Company and the Executive mutually agree to the appointment of an independent
      certified public accounting firm), such that the Executive will not be subject
      to the Excise Tax. Unless otherwise elected by the Executive, such reduction
      shall first be applied to any severance payments payable to the Executive under
      this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.  RELEASE.
      Any and
      all amounts payable and benefits or additional rights provided pursuant to
      Sections 7(d)(iii) and 8(a)(iii) shall only be payable if the Executive
      executes, delivers to the Company and does not revoke a general release of
      all
      claims against the Company in the form attached to the Agreement as Appendix
      A
      (with
      such changes as the Company may request to support the legality and
      effectiveness of the release).

     

    10.  RESTRICTIVE
      COVENANTS.

     

    (a)  Confidentiality.
      The
      Executive agrees that he shall not, directly or indirectly, use, make available,
      sell, disclose or otherwise communicate to any person, other than in the
      reasonable good faith performance of his duties and for the benefit of the
      Company, either during the period of the Executive’s employment or at any time
      thereafter, any nonpublic, proprietary or confidential information, knowledge
      or
      data relating to the Company, any of its subsidiaries, affiliated companies
      or
      businesses, which shall have been obtained by the Executive during the
      Executive’s employment by the Company. The foregoing shall not apply to
      information that (i) was known to the public prior to its disclosure to the
      Executive; (ii) becomes generally known to the public subsequent to disclosure
      to the Executive through no wrongful act of the Executive or any representative
      of the Executive; or (iii) the Executive is required to disclose by applicable
      law, regulation or legal process (provided that the Executive provides the
      Company with prior notice of the contemplated disclosure and reasonably
      cooperates with the Company at its expense in seeking a protective order or
      other appropriate protection of such information).

     

    (b)  Nonsolicitation.
      During
      the Executive’s employment with the Company and for the 18 month period
      thereafter, the Executive agrees that he will not, except in the furtherance
      of
      his duties hereunder, directly or indirectly, individually or on behalf of
      any
      other person, firm, corporation or other entity, (i) solicit or hire any
      employees, representatives or agents of the Company (or any of its affiliates)
      or (ii) solicit any of the Company’s customers. 

     

    (c)  Noncompetition.
      The
      Executive acknowledges that he performs services of a unique nature for the
      Company that are irreplaceable, and that his performance of such services to
      a
      competing business will result in irreparable harm to the Company. Accordingly,
      during the Executive’s employment hereunder and for the 18 month period
      thereafter, the Executive agrees that the Executive will not, (i) enter the
      employ of (whether as an employee, consultant, independent contractor or
      otherwise, and whether or not for compensation), or render any services to,
      any
      person, firm, corporation or other entity, in whatever form, engaged or actively
      planning to be engaged in any Competitive Business, (ii) directly or indirectly,
      own, manage, operate, control or otherwise engage in such a Competitive Business
      for his own account, or (iii) directly or indirectly, become interested in
      a
      Competitive Business as an individual, partner, shareholder, director, officer,
      principal, agent, trustee or in any other relationship or capacity.
“Competitive
      Business”
will
      mean, as of any date, any business competitive with any business then being
      conducted by the Company and operating in some or all of the same geographic
      areas; provided that, upon the termination of the Executive’s employment such
      determinations shall thereafter be determined as of the date of the termination.
      The foregoing shall not be violated by the Executive’s providing services to a
      noncompetitive portion of a group of related businesses which noncompetitive
      portion consists of less than 20% of the overall revenues of such group of
      related businesses measured based on the fiscal year prior to the fiscal year
      in
      which the Executive had his initial relationship with such noncompetitive
      portion, nor by ownership of less than 2% of public company stock or debt or
      a
      passive interest of less than 2% in a pooled account, such as a hedge fund,
      private equity fund or mutual fund.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  Nondisparagment.
      During
      the Employment Term and thereafter, the Executive agrees not to disparage
or
      encourage or induce others to disparage the
      Company or any of its affiliates or any of its and their past and present
      officers, directors, employees, products or services. For
      purposes of this Agreement, the term “disparage”
      includes, without limitation, comments or statements to the press, to the
      Company or any of its affiliates or any of its or thier officers,
      directors, or employees
      or to any individual or entity with whom the Company or any of its affiliates
      has a business relationship (including, without limitation, any vendor,
      supplier, customer or distributor of the Company or any of its affiliates)
      that
      would adversely affect in any manner: (i) the conduct of any business of the
      Company or any of its affiliates (including, without limitation, any business
      plans or prospects) or (ii) the business reputation of the Company or any of
      its
      affiliates or
      any of
      its and their officers, directors, employees, products or services.
      Notwithstanding the foregoing, this Section 10(d) shall not apply to truthful
      statements
      made in the course of sworn testimony in administrative, judicial or arbitral
      proceedings or normal competitive statements.

     

    (e)  Reformation.
      If it
      is determined by a court of competent jurisdiction in any state that any
      restriction in this Section 10 is excessive in duration or scope or is
      unreasonable or unenforceable under the laws of that state, it is the intention
      of the parties that such restriction may be modified or amended by the court
      to
      render it enforceable to the maximum extent permitted by the law of that
      state.

     

    (f)  Survival
      of Provisions.
      The
      obligations contained in this Section 10 shall survive the termination or
      expiration of the Executive’s employment with the Company and shall be fully
      enforceable thereafter.

     

    11.  COOPERATION.
      Upon
      the receipt of reasonable notice from the Company (including outside counsel),
      the Executive agrees that while employed by the Company and thereafter, the
      Executive will respond and provide information with regard to matters in which
      he has knowledge as a result of his employment with the Company, and will
      provide reasonable assistance to the Company, its affiliates and their
      respective representatives in defense of any claims that may be made against
      the
      Company or its affiliates, and will assist the Company and its affiliates in
      the
      prosecution of any claims that may be made by the Company or its affiliates,
      to
      the extent that such claims may relate to the period of the Executive’s
      employment with the Company. The Executive agrees to promptly inform the Company
      if he becomes aware of any lawsuits involving such claims that may be filed
      or
      threatened against the Company or its affiliates. The Executive also agrees
      to
      promptly inform the Company (to the extent he is legally permitted to do so)
      if
      he is asked to assist in any investigation of the Company or its affiliates
      (or
      their actions), regardless of whether a lawsuit or other proceeding has then
      been filed against the Company or its affiliates with respect to such
      investigation, and shall not do so unless legally required. Upon presentation
      of
      appropriate documentation, the Company shall pay or reimburse the Executive
      for
      all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred
      by the Executive in complying with this Section 11.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    12.  EQUITABLE
      RELIEF AND OTHER REMEDIES.
      

     

    (a)  The
      Executive acknowledges and agrees that the Company’s remedies at law for a
      breach or threatened breach of any of the provisions of Section 10 or Section
      11
      would be inadequate and, in recognition of this fact, the Executive agrees
      that,
      in the event of such a breach or threatened breach, in addition to any remedies
      at law, the Company, without posting any bond, shall be entitled to obtain
      equitable relief in the form of specific performance, temporary restraining
      order, a temporary or permanent injunction or any other equitable remedy which
      may then be available.

     

    (b)  In
      the
      event of a violation of Section 10 or 11 of this Agreement, any severance being
      paid to the Executive by the Company pursuant to this Agreement (or any
      successor agreement) or otherwise shall immediately cease.

     

    13.  NO
      ASSIGNMENTS.

     

    (a)  This
      Agreement is personal to each of the parties hereto. Except as provided in
      Section 13(b) below, no party may assign or delegate any rights or obligations
      hereunder without first obtaining the written consent of the other party
      hereto.

     

    (b)  The
      Company may assign this Agreement to any successor to all or substantially
      all
      of the business and/or assets of the Company provided the Company shall require
      such successor to expressly assume and agree to perform this Agreement and,
      if
      applicable, any Change in Control Agreement (but without creating any rights
      on
      a second change in control), in the same manner and to the same extent that
      the
      Company would be required to perform it if no such succession had taken
      place.

     

    14.  NOTICE.
      For the
      purpose of this Agreement, notices and all other communications provided for
      in
      this Agreement shall be in writing and shall be deemed to have been duly given
      (i) on the date of delivery if delivered by hand, (ii) on the date of
      transmission, if delivered by confirmed facsimile, (iii) on the first business
      day following the date of deposit with the overnight delivery service if
      delivered by guaranteed overnight delivery service, or (iv) on the fourth
      business day following the date mailed by United States registered or certified
      mail, return receipt requested, postage prepaid, addressed as
      follows:

     

    If
      to the
      Executive:

    

    At
      the
      last address (or to the facsimile number) shown on the records of the
      Company;

    

    With
      a
      copy to:

    

    Sonnenschein
      Nath & Rosenthal LLP

    1301
      K
      Street, N.W.

    Suite
      600, East Tower

    Washington,
      DC 20005

    Facsimile:
      (202) 408-6399

    Attn:
      Michael R. Maryn, Esq.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Company:

    

    P&F
      Industries, Inc.

    445
      Broadhollow Road

    Suite
      100

    Melville,
      New York 11747

    Facsimile:
      (631) 773-4230

    Attn:
      Chief Operating Officer

    

    With
      a
      copy to:

    

    Certilman
      Balin Adler & Hyman, LLP

    90
      Merrick Avenue

    East
      Meadow, New York 11554

    Facsimile:
      (516) 296-7111

    Attn:
      Steven J. Kuperschmid, Esq.

    

    and

    

    Proskauer
      Rose LLP

    1585
      Broadway

    New
      York,
      New York 10036-8299

    Facsimile:
      (212) 969-2900

    Attn:
      Michael Sirkin, Esq.

     

    or
      to
      such other address as either party may have furnished to the other in writing
      in
      accordance herewith, except that notices of change of address shall be effective
      only upon receipt.

     

    15.  SECTION
      HEADINGS;
      INCONSISTENCY.
      The
      section headings used in this Agreement are included solely for convenience
      and
      shall not affect, or be used in connection with, the interpretation of this
      Agreement. In the event of any inconsistency between the terms of this Agreement
      and any form, award, plan or policy of the Company, the terms of this Agreement
      shall control.

     

    16.  SEVERABILITY.
      The
      provisions of this Agreement shall be deemed severable and the invalidity of
      unenforceability of any provision shall not affect the validity or
      enforceability of the other provisions hereof.

     

    17.  COUNTERPARTS.
      This
      Agreement may be executed in several counterparts, each of which shall be deemed
      to be an original but all of which together will constitute one and the same
      instruments.

     

    18.  ARBITRATION.
      Any
      dispute or controversy arising under or in connection with this Agreement or
      the
      Executive’s employment with the Company, other than injunctive relief under
      Section 12 hereof, shall be settled exclusively by arbitration, conducted before
      a single arbitrator in New York, New York (applying New York law) in accordance
      with the National Rules for the Resolution of Employment Disputes of the
      American Arbitration Association then in effect. The decision of the arbitrator
      will be final and binding upon the parties hereto. Judgment may be entered
      on
      the arbitrator’s award in any court having jurisdiction. The parties acknowledge
      and agree that in connection with any such arbitration and regardless of outcome
      (a) each party shall pay all its own costs and expenses, including without
      limitation its own legal fees and expenses, and (b) joint expenses shall be
      borne equally among the parties; provided, however, in the event that the
      arbitrator determines that the Executive is the prevailing party, then the
      Company shall pay or reimburse all reasonable legal fees and expenses incurred
      by the Executive.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    19.  INDEMNIFICATION.
      The
      Company hereby agrees to indemnify the Executive and hold him harmless to the
      extent provided under the by-laws of the Company against and in respect to
      any
      and all actions, suits, proceedings, claims, demands, judgments, costs, expenses
      (including reasonable attorney’s fees), losses, and damages resulting from the
      Executive’s good faith performance of his duties and obligations with the
      Company. This obligation shall survive the termination of the Executive’s
      employment with the Company.

     

    20.  LIABILITY
      INSURANCE.
      The
      Company shall cover the Executive under directors and officers liability
      insurance both during and, while potential liability exists, after the term
      of
      this Agreement in the same amount and to the same extent as the Company covers
      its other officers and directors.

     

    21.  MISCELLANEOUS.
      No
      provision of this Agreement may be modified, waived or discharged unless such
      waiver, modification or discharge is agreed to in writing and signed by the
      Executive and such officer or director as may be designated by the Board. No
      waiver by either party hereto at any time of any breach by the other party
      hereto of, or compliance with, any condition or provision of this Agreement
      to
      be performed by such other party shall be deemed a waiver of similar or
      dissimilar provisions or conditions at the same or at any prior or subsequent
      time. This Agreement together with all exhibits hereto sets forth the entire
      agreement of the parties hereto in respect of the subject matter contained
      herein. No agreements or representations, oral or otherwise, express or implied,
      with respect to the subject matter hereof have been made by either party which
      are not expressly set forth in this Agreement. The validity, interpretation,
      construction and performance of this Agreement shall be governed by the laws
      of
      the State of New York without regard to its conflicts of law
      principles.

     

    22.  NO
      MITIGATION; TERMINATION CLAIM LIMIT.
      In no
      event shall the Executive be obliged to seek other employment or take any other
      action by way of mitigation of the amounts payable to the Executive under any
      of
      the provisions of this Agreement, nor shall the amount of any payment hereunder
      be reduced by any compensation earned by the Executive as a result of employment
      by another employer, except as provided in Section 13(b) hereof. Any claim
      by
      the Executive for damages as a result of a termination based on Section 6(c)(iv)
      shall not be brought prior to resolution of the criminal case and the Executives
      damages shall be limited to (a) the monetary amounts the Executive would have
      received in the event of a termination without Cause and (b) the intrinsic
      value
      on the termination date of any equity vested at, or upon, such termination
      that
      the Executive forfeited or did not receive because of the classification of
      the
      termination for Cause (and the Executive shall have no right to the equity,
      which shall be cancelled upon the termination for Cause).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    23.  REPRESENTATIONS.
      The
      Executive represents and warrants to the Company that he has the legal right
      to
      enter into this Agreement and to perform all of the obligations on his part
      to
      be performed hereunder in accordance with its terms and that he is not a party
      to any agreement or understanding, written or oral, which could prevent him
      form
      entering into this Agreement or performing all of his obligations
      hereunder.

     

    24.  WITHHOLDING.
      The
      Company may withhold from any and all amounts payable under this Agreement
      such
      federal, state and local taxes as may be required to be withheld pursuant to
      any
      applicable law or regulation.

     

    25.  SECTION
      409A COMPLIANCE.

     

    (a)  The
      intent of the parties is that payments and benefits under this Agreement comply
      with Section 409A of the Code and the regulations and guidance promulgated
      thereunder (collectively “Code
      Section 409A”)
      and,
      accordingly, to the maximum extent permitted, this Agreement shall be
      interpreted to be in compliance therewith. If the Executive notifies the Company
      (with specificity as to the reason therefore) that the Executive believes that
      any provision of this Agreement (or of any award of compensation, including
      equity compensation or benefits) would cause the Executive to incur any
      additional tax or interest under Code Section 409A and the Company concurs
      with
      such belief or the Company (without any obligation whatsoever to do so)
      independently makes such determination, the Company shall, after consulting
      with
      the Executive, reform such provision to try to comply with Code Section 409A
      through good faith modifications to the minimum extent reasonably appropriate
      to
      conform with Code Section 409A. To the extent that any provision hereof is
      modified in order to comply with Code Section 409A, such modification shall
      be
      made in good faith and shall, to the maximum extent reasonably possible,
      maintain the original intent and economic benefit to the Executive and the
      Company of the applicable provision without violating the provisions of Code
      Section 409A.

     

    (b)  Notwithstanding
      any provision to the contrary in this Agreement, if the Executive is deemed
      on
      the date of termination to be a “specified employee” within the meaning of that
      term under Code Section 409A(a)(2)(B), then with regard to any payment or the
      provision of any benefit that is required to be delayed in compliance with
      Code
      Section 409A(a)(2)(B), such payment or benefit shall not be made or provided
      (subject to the last sentence of this Section 25(b)) prior to the earlier of
      (i)
      the expiration of the six (6)-month period measured from the date of the
      Executive’s “separation from service” (as such term is defined under Code
      Section 409A), and (ii) the date of the Executive’s death (the “Delay
      Period”).
      Upon
      the expiration of the Delay Period, all payments and benefits delayed pursuant
      to this Section 25(b) (whether they would have otherwise been payable in a
      single sum or in installments in the absence of such delay) shall be paid or
      reimbursed to the Executive in a lump sum, and any remaining payments and
      benefits due under this Agreement shall be paid or provided in accordance with
      the normal payment dates specified for them herein. Notwithstanding the
      foregoing, to the extent that the foregoing applies to the provision of any
      ongoing welfare benefits to the Executive that would not be required to be
      delayed if the premiums therefore were paid by the Executive, the Executive
      shall pay the full cost of the premiums for such welfare benefits during the
      Delay Period and the Company shall pay the Executive an amount equal to the
      amount of such premiums paid by the Executive during the Delay Period promptly
      after its conclusion.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  In
      no
      event whatsoever shall the Company be liable for any additional tax, interest
      or
      penalties that may be imposed on the Executive by Code Section 409A or any
      damages for failing to comply with Code Section 409A.

     

    26.  SARBANES-OXLEY.
      The
      Executive hereby acknowledges and agrees that he is subject to Section 304
      of
      the Sarbanes-Oxley Act of 2002, and that pursuant thereto he may under certain
      circumstances be obligated to pay back to the Company certain amounts previously
      received by him.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	 	P&F
              INDUSTRIES, INC.
	 
 	 
 	 
	 	By:  	/s/ Joseph
              A.
              Molino, Jr.
	 	
              
                
Name:
                Joseph A. Molino, Jr.

              Its:
                Vice President

            
	 	
               

              /s/
                Richard A. Horowitz 

                

              

              Richard
                A. Horowitz

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

    

    FORM
      OF RELEASE

    

    AGREEMENT AND
      GENERAL RELEASE AND WAIVER,
      dated
      as of ______________ (the “Agreement”), by and between RICHARD
      A. HOROWITZ
      (the
“Employee”) and P&F
      INDUSTRIES, INC.,
      a
      Delaware corporation (the “Company”).

    

    The
      Employee and the Company mutually want to enter into this Agreement concerning
      the Employee’s separation from the Company. Where appropriate in the context of
      this Agreement, the term “Company” includes, the Company’s past, present and
      future subsidiaries, affiliates, divisions, parents, and any of its or their
      respective predecessors, successors, assigns, assets, employee benefit plans
      or
      funds and its or their past, present and future directors, officers,
      fiduciaries, trustees, administrators, representatives, shareholders, agents,
      employees, and independent contractors, whether acting on behalf of the Company
      or in their individual capacities.

    

    1.  The
      Employee acknowledges and agrees that (a) his last date of employment with
      the
      Company was __________ (the “Termination Date”), (b) the Termination Date was
      the termination date of his employment with the Company for purposes of
      participation in and coverage under all benefit plans and programs sponsored
      by
      or through the Company, (c) the Company shall have no obligation to rehire
      the
      Employee, or to consider him for employment, after the Termination Date, and
      (d)
      he will not seek employment with the Company at any time in the
      future.

    

    2.  The
      Employee acknowledges that he has carefully read this Agreement in its entirety,
      the terms and implications of this Agreement have been fully explained to the
      Employee, the Employee has had answered to his satisfaction any questions he
      has
      asked with regard to the meaning and significance of any provision of this
      Agreement, and that he fully understands the significance of all of the terms
      and conditions of this Agreement.

    

    3.  The
      Employee acknowledges that he has been given the opportunity to consider this
      Agreement for twenty-one (21) days and decide for himself whether or not he
      wants to sign it.

    

    4.  The
      Employee acknowledges that he has been advised to consult with an attorney
      of
      his choice concerning this Agreement and the implications to the Employee of
      signing or not signing it.

    

    5.  The
      Employee acknowledges that he has carefully considered other alternatives to
      executing this Agreement, and has decided that he wants to sign it.

    

    6.  The
      Employee may accept this Agreement by signing it and returning it to
      _____________, P&F Industries, Inc., 445 Broadhollow Road, Suite 100,
      Melvile, New York, 11747, within twenty-one (21) days of his receipt of this
      Agreement. The Employee is entitled to change his mind and revoke this Agreement
      by indicating his desire to do so in writing delivered to __________ at the
      address above (or by fax at (     )
   -     ) by no later than 5:00 p.m.
      EST on the seventh (7th) day after the date he signs this Agreement (the
“Revocation Period”). This Agreement will not become effective and the Employee
      will not receive any of the benefits set out below until the eighth (8th) day
      after the Employee signs it (the “Effective Date”). If the last day of the
      Revocation Period falls on a Saturday, Sunday or holiday, the last day of the
      Revocation Period will be deemed to be the next business day.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.  In
      consideration for the Employee’s signing and not revoking this Agreement, the
      Company has agreed to pay the Employee the consideration set forth in Section
      [IF TERMINATION IS NOT IN CONNECTION WITH A CHANGE IN CONTROL - 7(d)(iii)]
      [IF
      TERMINATION IS IN CONNECTION WITH A CHANGE IN CONTROL - 8(a)(iii)] of that
      certain Executive Employment Agreement, dated as of _____________, 2007, by
      and
      between the Company and the Employee (the “Employment Agreement”). The Company
      and the Employee expressly agree that the Company is not otherwise obligated
      to
      pay such consideration; that the Employee is not otherwise entitled to receive
      any of such consideration; and that, if the Employee does not sign this
      Agreement or revokes this Agreement during the Revocation Period, the Company
      will have no further obligations to the Employee under this Agreement,
      including, without limitation, the obligation to make the payments set forth
      in
      Section 7 of this Agreement.

    

    8.  By
      entering into this Agreement, the parties do not admit, and specifically deny,
      any liability or wrongdoing, or violation of any law, statute, order, regulation
      or policy. It is expressly understood and agreed that this Agreement is being
      entered into solely for the purpose of avoiding the costs of litigation and
      amicably resolving all matters in controversy, disputes, causes of action,
      claims, contentions and differences of any kind whatsoever which have been
      or
      could have been alleged by the respective parties against each
      other.

    

    9.  The
      Employee acknowledges that he knows that there are various state and federal
      laws which prohibit employment discrimination on the basis of age, sex, race,
      color, creed, national origin, marital status, religion, disability or veteran
      status and that these laws are enforced through the Federal Equal Employment
      Opportunity Commission, the New York State Division of Human Rights and various
      city, county and local human rights agencies.  In addition, the Employee
      acknowledges that he knows that there are other federal, state, and local laws
      of other types or description regarding employment, including, but not limited
      to, claims arising from or derivative of the Employee’s employment with the
      Company.

    

    10.  The
      consideration set forth in Section 7 of this Agreement is in full and complete
      satisfaction of all claims whatsoever the Employee may have against the Company
      arising from the Employee’s employment and/or separation from employment with
      the Company, or from any other matter whatsoever up to and including the date
      of
      this Agreement, whether known or unknown. Without limiting the generality of
      the
      foregoing, the Employee hereby releases, waives, and forever discharges any
      and
      all claims of any kind against the Company arising from the Employee’s
      employment and/or separation from employment with the Company, or from any
      other
      matter whatsoever up to and including the date of this Agreement, whether known
      or unknown, that he may have or had, including, but not limited to, fraud,
      claims arising under Age Discrimination in Employment Act of 1967, as amended,
      29 U.S.C. §621 et.
      seq.,
      Title
      VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000 et.
      seq.,
      the
      Civil Rights Act of 1866, 42 U.S.C. §1981, 42 U.S.C. §1983, The Equal Pay Act,
      as amended, 29 U.S.C. §206(d)(1), the Fair Labor Standards Act of 1938, as
      amended, 29 U.S.C. §201 et.
      seq.,
      the
      Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et.
      seq.,
      the
      Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §1001
et.
      seq.,
      the
      Americans with Disabilities Act, 42 U.S.C. §12101 et.
      seq.,
      the
      Civil Rights Act of 1991, 105 Stat. 1071, Executive Order 11246, the
      Sarbanes-Oxley Act of 2002 (a federal whistleblower law), the New York State
      Human Rights Law, New York City Human Rights Law, New York Equal Pay Law and
      N.Y. Lab. Law, Section’s 201-c (adoptive parent leave) and 740 (whistle blower
      statute (private employees)), all as amended, and any other federal, state
      and
      local fair employment practice law, workers’ compensation law, unemployment
      insurance law, and any other employee relations duties and obligations, whether
      imposed by express or implied contract, tort (including, but not limited to,
      all
      intentional torts, negligence, negligent hiring, training, supervision or
      retention), common law, equity, public policy statute, executive order or law,
      any claims for physical or emotional distress or injuries, or any other duty
      obligation of any kind or description, as well as any rights or claims the
      Employee or his attorney or other representative have or may have for costs,
      expenses, attorneys’ fees or otherwise. The foregoing shall not apply to the
      Employee’s right to receive the payments and benefits provided under Sections
      [IF TERMINATION IS NOT IN CONNECTION WITH A CHANGE IN CONTROL - 7(d)(i) and
      (ii)] [IF TERMINATION IS IN CONNECTION WITH A CHANGE IN CONTROL - 8(a)(i) and
      (ii)] of the Employment Agreement, nor to the Employee’s rights, if any, to
      indemnification as an officer of the Company or a fiduciary of any Company
      benefit plan. In addition, nothing in this Agreement shall be construed to
      prevent the Employee from filing a charge with, or participating in an
      investigation conducted by, any governmental agency, including, without
      limitation, the Equal Employment Opportunity Commission or applicable state/city
      fair employment practices agency, to the extent required or permitted by law,
      or
      to prevent any challenge by the Employee to the waiver and release of any claims
      as set forth herein.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.  The
      Employee agrees to keep this Agreement confidential and not to reveal its
      contents to anyone except his attorney, his immediate family or his financial
      consultant, or as required by law. The Employee will be responsible for any
      disclosure by them. The Company agrees to keep this Agreement confidential
      and
      not to reveal the contents to anyone except its attorneys, accountants,
      officers, directors and human resources director. The foregoing will not
      prohibit disclosure of this Agreement as required by law or regulation,
      including, but not limited to, those of the U.S. Securities And Exchange
      Commission and the rules of any exchange, quotation system and/or self
      regulatory organization on which or with which the Company’s securities are
      quoted, listed and/or traded, as the case may be; provided that if the Employee
      is required to make a disclosure pursuant to the foregoing he agrees to give
      the
      Company prompt written notice thereof and cooperate with the Company’s efforts
      to seek a protective order.

    

    12.  The
      Employee represents and warrants that he has returned all property belonging
      to
      the Company and has deleted from his home or personal computer, personal e-mail
      accounts and electronic filings all Company information.

    

    13.  The
      parties hereto agree and acknowledge that Sections [IF TERMINATION IS NOT IN
      CONNECTION WITH A CHANGE IN CONTROL - 7(d)] [IF TERMINATION IS IN CONNECTION
      WITH A CHANGE IN CONTROL - 8(a)], 10, 11, 12, 16, 18, 19, 20, 21, 22, 25 and
      26
      of the Employment Agreement shall remain in full force and effect and shall
      remain fully enforceable following the Effective Date.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14.  The
      payments set forth in Section 7 of this Agreement are subject to taxes and
      all
      applicable withholding requirements.

    

    15.  Except
      as
      specifically set forth in this Agreement, this Agreement constitute the entire
      agreement between the Employee and the Company with respect to the subject
      matter hereof and may only be modified, altered or changed in writing, signed
      by
      both the Company and the Employee.

    

    16.  This
      Agreement has been executed freely, knowingly and voluntarily by the Employee
      without duress, coercion, or undue influence, with a full understanding of
      its
      terms. The Employee acknowledges and agrees that, prior to executing this
      Agreement, he has been provided with sufficient time in which to consider this
      Agreement and that, in deciding to execute this Agreement, he has relied on
      his
      own judgment and further acknowledges that he is fully aware of its contents
      and
      of its legal effects. The parties to this Agreement agree that no fact, evidence
      or transaction currently unknown to them but which may hereafter become known
      to
      them shall affect in any way or manner the final or unconditional nature of
      this
      Agreement.

    

    17.  This
      Agreement shall be interpreted and construed and enforced in accordance with
      the
      laws of the State of New York, excluding choice of law principles
      thereof.

    

    18.  This
      Agreement shall be binding upon, and shall inure to the benefit of, the parties
      hereto and their respective successors, assigns and legal representatives.
      

    

    19.  The
      waiver by either party of a breach of any provision of this Agreement shall
      not
      operate or be construed as a waiver of any subsequent breach. If any provision
      of this Agreement, or part thereof, shall be held to be invalid or
      unen-forceable, such invalidity or unenforceability shall attach only to such
      provision and not in any way affect or render invalid or unenforceable any
      other
      provisions of this Agreement, and this Agreement shall be carried out as if
      such
      invalid or unenforceable provision, or part thereof, had been reformed, and
      any
      court of competent jurisdiction is authorized to so reform such invalid or
      unenforceable provision, so that it would be valid, legal and enforceable to
      the
      fullest extent permitted by applicable law. 

    

    20.  BY
      SIGNING THIS AGREEMENT, THE EMPLOYEE STATES THAT: HE HAS READ IT; HE UNDERSTANDS
      IT AND KNOWS THAT HE IS GIVING UP IMPORTANT RIGHTS; HE AGREES WITH EVERYTHING
      IN
      IT; HE WAS TOLD, IN WRITING, TO CONSULT AN ATTORNEY BEFORE SIGNING IT; HE HAS
      HAD 21 DAYS TO REVIEW THE AGREEMENT AND THINK ABOUT WHETHER OR NOT HE WANTED
      TO
      SIGN IT; AND HE HAS SIGNED IT KNOWINGLY AND VOLUNTARILY.

    

    [Remainder
      of page intentionally left blank.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    WHEREFORE,
      the
      Employee and the Company now voluntarily and knowingly execute this Agreement
      as
      of the day and year first written above.

     

    
      	 	 	 
	 	P&F
              INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	
               

            
	 	
              
                

              

               

              __________________________

                                
                (Please print)

              Title: __________________________

            
	 	
               

              __________________________
Richard
              A. Horowitz

Sworn
      to
      by Richard A. Horowitz before me this ____ day of ______________,
      200___.

    

     

    ___________________________

    Notary
      Public

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]